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TOURISM & AUTO MANUFACTURING
The
LaneReport
APRIL 2010
KENTUCKY BRIDGES,
NATIONAL IMPACT
Enhanced Ohio River crossings will alleviate
U.S. transportation and commerce chokepoints
Page 24
LANE ONE-ON-ONE: MARCHETA SPARROW
Secretary of Tourism, Arts, and Heritage Cabinet
$4.50
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K E N T U C K Y’S B U S I N E S S N E W S S O U RC E F O R 2 5 Y E A R S
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The
Lane Report
APRIL
2010
®
Kentucky’s Business News Source For 25 Years
Volume 25 Number 4
FEATURES
24 COVER STORY:
KENTUCKY BRIDGES, NATIONAL IMPACT
28 PUTTING RECALLS IN
THE REARVIEW MIRROR
28
Toyota gives its top Kentucky executive St. Angelo
key quality control oversight role for company
32 LUXURY & SOPHISTICATION
Six Kentucky hotels rate one of AAA’s
highest stamps of approval for ser vice with style
34 VISITORS STILL MAKING WAVES
34
Out-of-state rivals’ claims of Lake Cumberland’s
demise are greatly exaggerated
DEPARTMENTS
4
6
16
17
18
19
Perspective
Fast Lane
Interstate Lane
Kentucky Intelligencer
Corporate Moves
On the Boards
20 Lane One-on-One:
Marcheta Sparrow
Secretary of the Tourism,
Arts and Heritage Cabinet
24
36
37
38
39
40
42
44
Marketing
Economic Commentary
Spotlight on the Arts
The Lane List
Exploring Kentucky
Passing Lane
Kentucky People
ON THE COVER
The sun rises March 30 on the Clark Memorial Bridge between Louisville
and New Albany, Ind. The Ohio River Bridges Project now moving forward
will add 12 new traffic lanes across the river in and near downtown Louisville.
The project will relieve congestion for Louisville and Southern Indiana, and
improve commerce from Gary, Ind., to Mobile, Ala.
Ralph Homan photo
2
FEBRUARY 2010
KENTUCKY BUSINESS NEWS
AVAILABLE ONLINE
KYBIZ.COM • THE LANE REPORT
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PERSPECTIVE
Kentucky’s Business News Source for 25 Years
EDITORIAL DIRECTOR
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Karen Baird
CREATIVE DIRECTOR
Jessica Merriman
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Kara Keeton; Meredith Lane; Nancy Miller;
Dennis O’Connor; Robin Roenker;
Robyn Sekula; Eddie Sheridan;
Don Ray Smith; Gary Wollenhaupt
SYNDICATED COLUMNS
Creators Syndicate
DESIGN
SUPPORTING THE
LAWS OF THE LAND
Nation needs leaders who are
willing to risk power for principles
BY PAT FREIBERT
W
HILE the word “integrity” is a
bit difficult to define, we all
know what it means when we
see it. And we saw it recently when Kentucky U.S. Sen. Jim Bunning stood
alone on the Senate floor to object to
what he knew was an illegitimate
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4
APRIL 2010
Pat Freibert
(patfreibert@
lanereport.com)
is a former Kentucky
state representative
from Lexington
attempt to pass a new spending bill without providing the money to pay for it.
He and the entire Senate knew that the
measure containing extended unemployment benefits and transportation
projects would pass, but that was not the
question at hand.
The question at hand was whether
the Senate would obey the law and provide the money to fund the legislation,
as is required by a ver y recent mandate
signed into law by the president. The
requirement, known as “Pay Go,” provides that any future spending legislation must be accompanied by necessary
funds to pay for implementation. In
other words, new spending shall no
longer be placed on the nation’s credit
card to burden future generations.
Apparently Sen. Bunning takes his
oath of office seriously when it comes
to supporting the Constitution and the
laws of the land. Too many in public
office today demonstrate a more cavalier attitude about the Constitution
and the laws of the land, especially
when presented with opportunities to
pass out favors to special constituencies
without regard to where the money will
come from. Bunning, former Major
League baseball pitcher, member of
the U.S. House of Representatives and
state legislator, has a histor y of being
unafraid to stand for what is right –
irrespective of political consequences.
Years ago in the Kentucky State Senate, he stood on the floor to chastise
colleagues for their support of the infamous “Greed Bill,” which granted
extraordinary retirement income benefits to special groups of state legislators. While it did not set well with his
colleagues, he knew it was the proper
position and his integrity commanded
him to stand up for principle and
against the elitist self-interests.
Congress and the administration must
grow some backbone in facing up to their
folly and fantasy of explosive spending
without any ability to pay for it. It demonstrates a complete lack of integrity and
plain good sense to continue this agenda
of dependency and profligate expansion
of government. Croesus himself could not
afford the outrageous spending and government expansion presently occurring in
Washington.
There is no need for all things to
come from government or for all things
to come under the control and power of
government. In fact, government has a
way of strangling good community initiatives with layers of rules and regulations. America is a great countr y, not
only because of the genius of its
founders in developing our Constitution but also because of the helping
spirit of our countr y’s civic volunteers.
History is replete with legions of private citizens who have built and
strengthened communities for generations. Some are unknown outside their
own communities, yet their footprints
loom large as they have guided, lifted
and uplifted the civic lives of others
around them.
Businesses, corporations and individuals performing acts of civic kindness and
charity impact how all of us live and work
every day. They leave a legacy of volunteerism and fulfillment of social responsibility to their communities in Kentucky
and America. No government commands
these things and no government can replicate them. In a culture that emphasizes
living for the moment, they affirm an
older and more lasting set of priorities. As
citizens, we need to stand with these people and these values. They are the foundation of our free society.
Integrity commands that budgets be
balanced, whether for families or governments. And it commands that promises be kept and that oaths be taken
seriously. It commands forthrightness,
fairness and personal responsibility. A
country cannot endure unsustainable
debt and uncontrolled spending forever, and Americans must choose their
political leaders from among those who
understand this axiom. ■
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FAST LANE
A compilation of economic news from across Kentucky
LOUISVILLE: SIGNATURE HEALTHCARE ANNOUNCES PLANS
TO ESTABLISH NATIONAL HEADQUARTERS IN LOUISVILLE
S
Signature HealthCare photos
IGNATURE HealthCARE, a long-term healthcare facility operator based in Palm Beach Gardens, Fla., has announced that the company is
moving its national headquarters to Louisville.
The move will initially create 96 new jobs in the
commonwealth and is expected to grow to more
than 120 jobs with an average annual wage of more
than $75,000, excluding benefits.
Four Courts at Cherokee Park in
Signature
currently
Louisville is one of the 66 long-ter m
employs
nearly
11,
000 and
healthcare facilities operated by
operates 66 long-term healthSignature HealthCARE.
care facilities in seven Southeastern states, 17 of which are located in Kentucky.
In announcing the company’s decision to relocate, Signature
President and CEO E. Joseph Steier III noted that Louisville provides a central location, rich university partnerships and a strong
talent pool to fuel aggressive company growth.
Signature has partnered with Nucleus, the University of
Louisville’s driving force behind a life sciences hub in down- Joe Steier, president
town Louisville, to create the International Center for Long and CEO of Signature
Term Care Innovation. The center, which will be the first of its HealthCARE
kind in the nation, will house and assist in the development of
early-stage health technology and services companies that are working to bring new
ideas to the aging care industry.
Signature is also planning to start a think tank at its corporate headquarters,
which will use faculty from UofL to produce white papers and best practices on dealing with geriatric and aging adults.
HEBRON: DELTA’S CONSOLIDATION OF OPERATIONS AT
CVG RESULTS IN LOSS OF 840 JOBS FOR SUBSIDIARY
D
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APRIL 2010
Northern Kentucky CVB photo
ELTA Air Lines’ recent announcement that it
will consolidate its flight operations at the
Cincinnati/Northern Kentucky International
Airport (CVG) into a single concourse will result in the
carrier no longer requiring the ser vices of Regional
Elite Airline Services, a Delta subsidiary that has been
providing ground handling and customer service functions for Delta at CVG.
With the consolidation, Delta employees will
assume full handling responsibilities of all Delta and
Delta Connection flight activity at CVG as of May 1 and
840 Regional Elite jobs at CVG will be eliminated.
However, Gil West, senior vice president of airport As part of the company’s effort to
customer service for Delta, noted that with Delta return its operations at the
assuming all handling operations at CVG, the Atlanta- Cincinnati/Northern Kentucky
International Airport to profitabilbased carrier will be increasing its staffing and said
ity, Delta Air Lines will be leaving
Regional Elite employees would be given preferential its gates on Concourse A in May
consideration the new positions.
and consolidating all of its operations at Concourse B.
West said the consolidation does not change the
total number of departures Delta offers out of CVG
but does “eliminate the large peaks and valleys associated with today’s structure” and
will improve Delta flights schedules to the major East Coast business markets.
“This change is not a negative reflection on the Regional Elite Ser vices team in
CVG, but yet another step in a series of changes we have made to optimize the network and work to return the CVG hub to profitability,” West said. “In addition, Delta
has made a commitment to do everything possible to avoid involuntary furloughs of
mainline frontline employees and we continue to honor that commitment.”
LOUISVILLE: 500 JOBS TO BE
ELIMINATED AT JEWISH &
ST. MARY’S HEALTHCARE
C
ITING the strain of lower patient
volumes combined with an increase
in uninsured patients, Jewish Hospital & St. Mar y’s HealthCare is eliminating 500 positions, according to a report by
The (Louisville) Courier-Journal.
The job cuts represent approximately 6 percent of the company’s total
8,100-member workforce.
Company officials said that of the 500
positions being eliminated, some 250 jobs
will be eliminated through attrition and
productivity improvements.
Janice James, transitional CEO of the
hospital system, told The Courier-Journal
that the cuts are part of a companywide
plan to save more than $55 million.
Although the recently announced
cuts will affect all areas of the company,
those employees who work most closely
with patients will be affected to a lesser
extent, James said.
The Jewish Hospital & St. Mary’s
HealthCare system encompasses 71
healthcare facilities, including hospitals,
behavioral health, assisted living, home
health care, outpatient care, nursing
home care, occupational health and
rehab medicine.
“Our volumes are down, and as far as
we can tell that is a trend across the
country,” James said. “We are not in this
alone. But it’s still a difficult management decision to have to go through.”
Last year, the company implemented
a cost-cutting plan that included controlling employee overtime hours and
closing a unit at Frazier Rehab Institute.
Results of a recent sur vey conducted
for the Foundation for a Healthy Kentucky
reveal that one third of adult citizens in
Kentucky do not have health insurance.
SUBMISSIONS WELCOME
To submit news and photographs for
publication in Fast Lane, please mail
information to: The Lane Report, 201
East Main Street, 14th Floor, Lexington, KY 40507-2003 or send via email to [email protected].
Color photographs are preferred,
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STATE: UNIVERSITIES RECEIVE FUNDING
TO COMMERCIALIZE NEW TECHNOLOGIES
BUSINESS BRIEFS
HE University of Kentucky, University of Louisville and
Kentucky State University have been awarded $556,137
from the Kentucky Science and Technology Corp.’s Kentucky Commercialization Fund to help them commercialize
promising emerging technologies in the commonwealth.
The funding will allow UK to develop and test a new product made from high-strength carbon fiber strips to
strengthen and upgrade existing reinforced concrete and
steel bridges and buildings.
UofL will use the funds for a number of different projects, including the design completion and optimization of a
reactor for producing metal oxide nanowires at commercial
scale; development of computer and marketing programming to prevent relapse among addicted persons in early
recovery; development of a wireless device that monitors a
sudden increase in body temperatures beyond a predetermined threshold in children due to medical conditions; and
development of a urine-based test to diagnose obstructive
sleep apnea in snoring individuals either as a clinical diagnostic test or a home test kit for rapid screening.
The award to KSU will help the researchers to develop
and commercialize a specialized sensor-based wireless technology to remotely monitor and detect loss of fluid and
changes in other physical parameters in difficult-to-monitor
individual containers.
BENTON
■ The Benton Tribune-Courier reports that construction work on
a 1,200-foot lock on the Tennessee River will bring some 462 jobs
to the area, with wages of up to $23 per hour. The work is being
handled by Thalle Construction Co., of North Carolina, which
has said it will attempt to hire locally and work with local suppliers
and subcontractors. The project is estimated to take approximately 27 months to complete.
SEBREE: STATE APPROVES $15 MILLION
FOR RIO TINTO ALCAN IMPROVEMENTS
T
Ford photo
HE state has approved up
to $15 million in state tax
incentives for Rio Tinto
Alcan to encourage the global
supplier of aluminum to make
long-term investments at its
smelting facility in Sebree.
Rio Tinto Alcan is evaluating the installation of equipment to increase potline
Aluminum usage in automobiles
amperage, which would enable
has increased dramatically in
the plant to be more efficient
recent years, and is now only
behind iron and steel in average
in aluminum production. The
vehicle content. Kentucky is curplant is also considering the
rently ranked third among the
construction of a new bake furstates in light vehicle production
nace that would be more enviand is home to nearly 450 motor
ronmentally friendly and
vehicle-related suppliers.
efficient in baking anodes that
are utilized in potlines. Rio Tinto Alcan currently employs
500 Kentuckians and is one of the largest employers in the
Henderson County community.
Kentucky is home to more than 120 aluminum-related
facilities and is one of the top aluminum producing states in
the nation, employing more than 13,500 and generating
$100 million in state and local tax revenue each year . The
average annual wage for a primary metals job in Kentucky is
more than $52,000. In 2005, more than $4.3 billion of primary aluminum products were shipped outside the state.
THE LANE REPORT • KYBIZ.COM
BOWLING GREEN
■ Owl’s Head Alloys, a secondary aluminum recycling facility that receives and ships metal across the United States, is
adding 12,000 s.f. to its existing 48,000-s.f. operation in Bowling Green. The $3 million expansion will accommodate an
additional smelting furnace and result in 30 new jobs.
■ Metalworks Recycle-Reload, a new company established for
the processing, packaging, shipping, receiving and purchasing of all types of non-ferrous metals, is leasing a 30,000-s.f.
facility in Bowling Green’s South Central Industrial Park. The
startup project will create 20 new jobs and represents a capital
investment of more than $2.1 million.
■ The American Howa Kentucky
plant in Bowling Green will be
adding employees as a result of its
sister company, Howa USA Inc.,
moving its operations from Richmond, Ind., to Bowling Green.
The Kentucky plant currently has
30 employees and 15 temporary
workers and is expected to add
another 20 employees by the end
of July, according to The (Bowling Green) Daily News. The company produces dash insulators, headliners and interior trim products for the automotive industry.
Toyota photo
T
CECILIA
■ The Cecilian Bank has purchased two banking offices of Integra Bank, located in Hardinsburg and Leitchfield, Ky. As part of
the acquisition, Cecilian has assumed approximately $45 million
in deposit liabilities related to the two branches and $15 million in
branch loans. Cecilian has also agreed to acquire a pool of commercial real estate loans from Integra, valued at $27 million. With
the acquisition, The Cecilian Bank will have 11 banking centers
with eight locations in Hardin County, two locations in Grayson
County and one location in Breckinridge County . The transaction will place The Cecilian Bank with total assets of approximately $450 million and deposits of approximately $370 million.
COVINGTON
■ Regent Communications Inc. has filed for Chapter 11 bankruptcy and reached an agreement in principal with its lenders
for a consensual financial restructuring that will eliminate
approximately $87 million of the company’ s debt. The Covington-based company, which owns and operates 62 radio stations in 13 markets, will continue its day-to-day operations as
usual and will not have any changes in its senior leadership.
APRIL 2010
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BUSINESS BRIEFS
FRANKLIN
■ G3 Shieldings Technology, a ballistic research company that
produces recyclable shooting targets, has relocated its operations from northern Virginia to the former Petroferm building in Franklin, Ky. G3 will initially utilitze 18,000 s.f. of the
plant’s available 33,000 s.f. The company expects to hire
around 40 employees by the end of the year.
■ The Franklin Favorite reports that Perdue Grain and Oil Seeds
LLC, a division of Mar yland-based poultry giant Perdue Farms,
has acquired Kentucky-Tennessee Grain Co., one of the largest
grain elevators in the area. Kentucky-Tennessee Grain owner
Wayne Larson told the newspaper that while the name has
changed – the company will now operate as Perdue Grain-Franklin
Elevator – the business and staff will essentially remain unchanged.
HEBRON
■ Coating Excellence International plans to open a manufacturing facility in Hebron, where it will produce bag liners for
the pet food and animal feed industr y. The Wisconsin-based
company plans to lease a 120,000-s.f. facility for the plant and
warehouse and expects to have approximately 70 employees
there within three years.
HIGHLAND HEIGHTS
■ Highland Heights-based General Cable Corp. has acquired
Beru SAS, a wholly-owned subsidiary of BorgWarner France SAS, located in La Ferte Mace,
France. The business will operate as General Cable Automotive
Europe (GCAE). GCAE produces ignition wire harnesses sold
into the European automotive original equipment manufacturing (OEM) market as well as the aftermarket. The company
expects GCAE to report more than $20 million in revenues in the
first year of operations.
N
INE Kentucky high-tech companies will share nearly
$2.2 million in state funds as part of a Kentucky initiative to attract and support technology-based small
businesses. Through the state’s SBIR-STTR Matching Funds
program, Kentucky matches federal SBIR-STTR awards
received by Kentucky companies or those willing to relocate
The nine Kentucky companies receiving SBIR-STTR
state funding include:
• Four Tigers (Paris): blackberry-based cosmetics, food
and medical products
• NaugaNeedles (Louisville): nano-scale probes and
electrodes for use in mechanical, electrical, and electrochemical sensing and manipulation at cellular and
molecular levels
• SCR (Louisville): medical devices to treat heart failure patients.
• Topasol (Lexington): development of nanoparticles
for use in new coatings and composites
• Transposagen (Lexington): development of genetically modified laboratory rats for medical research.
• ApoImmune (Louisville): vaccines to treat cancer and
prevent infectious diseases
• NuForm Materials (Georgetown): ceramic materials
for use in automotive and aerospace composites
• PGxl Laboratories (Louisville): research on how
genetics affect patients reactions to medicines
• 3H Company (Lexington): clean coal and carbon
sequestration technology
to Kentucky. Kentucky is the first and only state to match
both phases of the federal program: up to $100,000 for
Phase 1 federal awards and up to $500,000 per year (for up
to two years) for Phase 2 federal awards. To date, the state’s
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) matching program has
helped bring eight new high-tech businesses to the commonwealth to benefit from the matching funds.
LOUISVILLE: UofL CLAIMS FIRST PRIZE
IN McGINNIS VENTURE COMPETITION
UofL photo
LAUREL COUNTY
■ Somerset Community College has opened a new $13.8 million Allied Health and Technical Education building in Laurel County. The state-of-the-art facility currently houses
administrative offices as well as classrooms for medical programs. SCC is planning to launch a pharmacy tech program
this fall and a registered nursing program in Spring 2011,
both of which will be housed in the new facility.
STATE: NINE SMALL HIGH-TECH FIRMS TO
SHARE $2.2 MILLION IN STATE FUNDING
LEBANON
■ Spring View Hospital has broken ground on an $8 million
expansion that will include 8,000 s.f. of new space and the
renovation of 5,000 s.f. in the existing facility . The project is
expected to be complete by the end of the year.
LEXINGTON
■ The Urban League of Lexington-Fayette County will receive
$1.1 million in federal stimulus funds to support broadband
Internet training in Lexington neighborhoods. Lexington is one
of seven communities nationwide to receive funding through the
federal Broadband Technology Opportunity Program. Mayor Jim
Newberry said Connect Your Community will work hand-in-hand
with the expanded wireless network the city is establishing in large
parts of downtown to enhance public safety, spur economic development and increase residents’ Internet access.
8
APRIL 2010
A team of five UofL MBA students claimed first prize in the life science categor y of
the 2010 McGinnis Venture Competition at Carnegie Mellon University March 1113, a contest involving 25 teams. Their plan to cr eate NanoMark Therapeutics, a
company producing a new cancer drug targeting cancer cells but not healthy tissue,
won a $20,000 cash prize. The team now advances to Global Moot Corp., the
$100,000 “Super Bowl” of business competitions, in May. The Nanomark team is
comprised of (left to right) Sham Kakar, Cohin Kakar, Viji Sundar, David Noack
and Gary Degen.
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FAST LANE
STATE: KENTUCKY AWARDS FUNDING FOR
ALTERNATIVE ENERGY TECHNOLOGY
BUSINESS BRIEFS
LOUISVILLE
■ Mitsui & Co., the parent company of Louisville-based Steel
Technologies, has announced plans to make Steel Technologies
part of a new joint venture it is forming in conjunction with
Nucor Corp. The
new company, NuMit,
will combine Mitsui’s global steel market experience and Nucor’s
focus on manufacturing and technology. Mitsui, which has
owned Steel Technologies since 2007, operates 23 service center
facilities throughout the U.S., Canada and Mexico.
■ The Louisville-Jefferson County Metro Government has
created four new small-business incentive programs to help
spur economic development and create green jobs. The programs include the POWER (Providing Opportunities with
Emissions Reduction) Loan, a $2 million revolving loan fund
for the retrofit of off-road diesel equipment; the Green Jobs
Revolving Loan Fund, a $1.4 million revolving loan fund for
companies with new green products or jobs; the nonprofit
energy audit grant, a $200,000 grant pool for nonprofit
organizations wanting to make their facilities more efficient;
and the Go Green Loan, a revolving loan fund that provides
incentives for manufacturing companies wanting to improve
their energy efficiencies through monitoring their power
equipment. The programs are being funded by a combination of federal Department of Energy Efficiency Conservation
Block Grant, federal stimulus funds and city dollars.
■ Construction has begun on two new parking garages in
downtown Louisville that are being built to complement and
help spur new investments, including a new hotel and condo
development and the new corporate headquarters for
ZirMed, a fast-growing healthcare company. Louisville Mayor
Jerry Abramson said the two garages, which represent an
investment of $15 million, will create hundreds of construction jobs. The two structures will add 757 parking spaces in
the center of the city. The projects are expected to be complete by November.
■ Kentuckiana Curb has announced plans to expand its manufacturing operations in Louisville, where it produces a variety of products through metal fabrication processes and
specializes in metal roof components. The $2.5 million expansion will add 20,000 s.f. to the existing 90,000-s.f. facility for
the production of high-efficiency commercial HVAC systems.
The expansion is expected to add 50 new full-time jobs to the
company’s 70-member workforce.
10
APRIL 2010
T
Ralph King photo/NGAS
LEXINGTON
■ Lexington-based ParaTechs Corp. has received $120,000
from Kentucky’s High-Tech Investment Pool, which is used to
build technology-based and research-intensive companies and
projects. The biotechnology company, which is a client of the
Lexington Innovation and Commercialization Center, creates
products used for protein production for use in vaccines and
therapeutics. The company also markets a non-surgical
embryo transfer device for researchers who use laborator y
rodents in a wide range of medical research, including cancer, Alzheimer’s and diabetes studies. ParaTechs anticipates
creating seven new high-tech jobs paying an average annual
salary of at least $55,000.
WO Kentucky companies have been awarded a combined $530,000 in funding from the Kentucky New
Energy Ventures Fund, a program that provides public
funds to promising early-stage Kentucky companies that are
developing and commercializing alternative fuels and renewable energy technologies.
Wellhead Energy Systems ,
located in Somerset, has been
approved for an investment up to
$500,000 to develop generator systems that can be placed near natural gas wells to produce electricity
for rural communities. Wellhead
Energy Systems’ technology can
take natural gas from isolated wells
that are not close to transport
pipelines and feed it into a self-contained, on-site generator system.
NGAS President/CEO
The natural gas-powered generaWilliam Daugherty with
one of his company's
tors convert the gas into electricity
hundreds of gas wellheads
for use by local utilities, rural resiin Eastern Kentucky.
dents and industrial locations.
David Weddle, president and
CEO of Wellhead, said the company plans to use an existing
local manufacturer to produce the generator units, which
will help keep and create jobs in the Somerset area.
Southeast Biofuels, in Mt. Sterling, has been approved for
a grant of up to $30,000 to develop a portable system that
can produce ethanol using sorghum as a feedstock. The
modular fermentation system will produce the liquid fuel at
sites where the sorghum feed stock is grown and har vested.
Sweet sorghum is similar to corn and grows well in Kentucky,
even on marginal lands. The stalks and leaves can be
processed in ways similar to sugar cane, with the juice
pressed out so it can be fermented into ethanol.
SHELBYVILLE: BEKAERT CORP. INVESTS
$2M TO EXPAND STEEL WIRE FACILITY
B
EKAERT Corp. is
investing more than $2
million to expand its
operations in Shelbyville,
where it manufactures drawn
steel wire products.
Bekaert plans to add a hotdip galvanizing line, a process
that provides corrosion protection for wire used in exposed
environments. Bekaert’s wire According Bekaert statistics, one in
products are used in a variety every four tires in the world runs
of applications such as staples, on Bekaert steel cord.
paper clips, nails, spiral notebook wire, concrete and automotive uses.
The expansion at the 26,000-s.f. plant is expected to add
10 jobs to the existing 101-member workforce in Shelbyville,
where it has been in operation since 1990. The Belgiumbased company has some 23,000 employees worldwide and
serves customers in 120 countries.
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FAST LANE
LOUISVILLE
■ Caldwell Tanks is investing $3.9 million to expand its operations in Louisville, where the company manufactures customized
water tanks, industrial field-erected tanks and vertical concrete
storage structures. The company plans to add 33,000 s.f. to its
existing 180,000-s.f. facility. Caldwell currently employs 206 and
is planning to add 15 new jobs as a result of the expansion project.
MIDWAY
■ Midway College has received $100,000 in funding from the
U.S. Department of Education to expand its nursing program. Midway President Dr. William B. Drake Jr. said the
funds will help the college double the size of its associate
degree in nursing program to graduate more nurses by 2012.
NORTHERN KENTUCKY
■ St. Elizabeth Healthcare has entered into a definitive agreement to sell its ambulance company, TransCare of Kentucky
Inc., to Rural/Metro Corp. TransCare provides 24-hour life
support ambulance transportation to move patients to and
from hospitals, medical testing or treatment facilities throughout Northern Kentucky. Rural/Metro has been in business for
more than 50 years and is one of the nation’s leading
providers of emergency and non-emergency medical transportation services and fire protection ser vices, serving more
than 400 communities throughout the United States.
■ The Northern Kentucky Convention & Visitors Bureau reports
that it saw a 12 percent increase in group business bookings in
2009 vs. 2008 bookings, representing a boost of nearly 12,000
hotel guest nights. “We focused on group markets like sports and
religious organizations that offered the highest sales opportunities, especially with the new Bank of Kentucky Center fully operational for the entire year in 2009,” said Bureau President & CEO
Tom Caradonio. For 2009, corporate travelers remained the
largest market segment in Northern Kentucky, comprising 41
percent, followed by leisure (36 percent), meetings/conventions
(20 percent), and government (2.5 percent). Total economic
impact of visitor spending during 2009 in Boone, Campbell and
Kenton Counties was $262 million, down 14.5 percent from $306
million in 2008.
OLDHAM COUNTY
■ The Oldham Count Chamber of Commer ce and the Oldham County Economic Development Authority have merged
their organizations to form the Oldham Chamber and Economic Development Agency. Bill Howard, CEO of Fastline
Publications in Buckner, has been elected to ser ve as chairman of the new organization.
OWENSBORO
■ Kentucky Bioprocessing
has been awarded $17.9
million from the U.S.
Department of Defense to
develop a proof-of-concept
platform capable of yielding a purified vaccine
using a whole plant-based process. Kentucky Bioprocessing
was one of more than 25 companies to bid on the project.
The work is expected to be completed by March 2011.
12
APRIL 2010
NICHOLASVILLE: JACKSON PLASTICS TO
CLOSE THIS MONTH, 96 JOBS AFFECTED
J
ACKSON Plastics
is closing its manufacturing plant
in Nicholasville, where
it produces plastic
trim parts for the automotive industry.
Founded in 1994
by Henry Jackson, the
company manufactures parts for Toyota
and also lists the Lear
Corp. and McKechnie
Vehicle Components
Jackson Plastics has been producing plasamong its clients.
tic trim parts for the automotive industr y
The company is
since 1994.
slated to close by the
end of April, leaving some 96 people without a job.
According to the company’s Web site, Jackson Plastics has
two plants in Nicholasville: a 36,000-s.f. facility on one acre
that houses 18 molding presses that range up to 600 tons and
another 60,000-s.f. plant on 6.5 acres that has five molding
presses that range from 500 to 1,500 tons.
In an interview with The Jessamine Journal, Nicholasville
Mayor Russ Meyer said, “Henr y Jackson and his family and
all of their employees have been a great community partner
for many years, and they’ll be missed by the city government
and the county government. I know our economic development authority is ver y optimistic about potential economic
development clients coming into this building because of
the set-up with the crane in the building. It’s a unique set-up
out there, and I feel good about somebody else coming in.”
Toyota photo
BUSINESS BRIEFS
LOUISVILLE: LIGHTYEAR GOES PUBLIC
VIA DEAL WITH LIBRA ALLIANCE CORP.
L
OUISVILLE-based Lightyear Network Solutions is now a
publicly held company as the result of a securities
exchange transaction with Libra Alliance Corp., a
Nevada company that previously operated as an Internet
service provider. With the securities exchange transaction,
Lightyear is now Libra’s principal operating company.
Lightyear CEO J. Sherman Henderson has been named as
chairman and CEO of the public company, which trades on
the OTC Bulletin Board under the symbol “LBAL.”
“The main focus for Lightyear will be continuing to service the telecommunications needs of our approximately
60,000 business and residential customers utilizing our independent national sales force of Lightyear Agent Partners,”
Henderson said. “With Lightyear’s debt and interest obligations to its parent being extinguished via the exchange transaction, we believe that we are well positioned to initiate our
organic and acquisition growth strategies.”
Henderson added that the company is “actively seeking
to acquire multiple small to mid-sized competitors in strategic locations throughout the U.S., where we anticipate significant demand for Lightyear’s service offerings.”
Lightyear currently has about 84 full-time employees and
generated approximately $44 million in revenue for the nine
months ending Sept. 30, 2009.
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Page 13
LOUISVILLE: UofL IS LEADING NATIONAL
EFFORT TO DEVELOP CRISIS RESPONSE
T
HE University of Louisville is leading a federally
funded effort to develop computer software that would
allow health and emergency professionals to allocate
and reallocate their resources - people and equipment - in
response to the shifting conditions that would follow a pandemic attack or natural disaster.
The project will
focus on developing a “real-time” decision-support system that could provide
medical care where needed even when responders and
health providers themselves are affected by a pandemic or
flu outbreak. University of Louisville industrial engineering
professor Sunderesh Heragu, who is leading the research
group, said some studies show that up to 40 percent of the
population could be stricken, and that could affect staffing
by doctors, emergency responders, nurses and support service providers during the “medical surge” that could result.
The researchers also will factor in the medical logistics of getting supplies, hospital beds and caregivers where they are most
needed. Other priorities will be meeting the mental health needs
of health care and emergency workers strained by a disaster; securing medical information in a public health situation; and protecting healthcare workers with necessary personal equipment.
The three-year project will be funded by the U.S. Department of Homeland Security through the Somerset, Ky.-based
National Institute for Hometown Security.
BUSINESS BRIEFS
OWENSBORO
■ First Security Bank of Owensboro Inc., a wholly owned subsidiary of First Security Inc., has agreed to purchase eight banking
offices of Integra Bank. The banking offices include five located
in Bowling Green and Franklin, Ky., and single offices located in
Paoli, Mitchell and Bedford, Ind. As part of the transaction, First
Security will assume approximately $188.2 million of deposit liabilities and acquire $74.8 million of branch-related loans, as well
as $38.4 million of additional commercial real estate, $2 million of
other commercial and $56.9 million of indirect consumer loans.
Total assets for First Security will approximate $430 million upon
completion of the merger. The acquisition gives First Security a
total of four offices in Indiana and seven in Kentucky.
PADUCAH
■ The board of directors of Computer
Services Inc. has approved a two-forone stock split, payable April 30, 2010
to shareholders of record as of March
29, 2010. The Paducah-based company is traded on the OTCQX under the symbol CSVI.
■ Paducah & Louisville Railway is investing more than $4.2
million to construct a new 20,000-s.f. headquarters facility in
Paducah to accommodate the company’s growing staff. Paducah & Louisville serves more than 90 industries and manages
approximately 200,000 car loads annually.
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Page 14
FAST LANE
BUSINESS BRIEFS
PADUCAH
■ EntrePaducah has received the Southern Growth Policy
Board’s Innovator Award for its work with small businesses
facing challenges from the economic downturn. The organization’s purpose is to connect entrepreneurs with the people,
agencies and networks needed to launch their endeavors.
PIKEVILLE
■ Pikeville Medical Center has
launched an $8.9 million renovation of its emergency
department that will add
23,000 s.f. and create more
than 50 jobs. The project, which expands the emergency department to 27 beds (including two trauma bays), will position the
hospital to apply for designation as a Level II trauma center. The
project is expected to be complete by early summer.
SHELBYVILLE
■ Ledco Inc., a Shelbyville
door manufacturer, has been
acquired by Florida-based
Masonite Inc., a global manufacturer of residential and
commercial doors. Financial
details of the transaction were
not disclosed. An announcement issued by Masonite said
Ledco’s senior management
will remain with the company.
Ledco was founded in 1964
and currently has approximately 140 employees at its 130,000s.f. plant in Shelbyville.
SOMERSET
■ Somerset-based Southern Petroleum has signed a distribution agreement with Gulf Oil and will convert nine Chevron
gasoline stations to the Gulf brand. The rebranding represents the first time in 20 years that a Gulf Oil branded gas station has operated in Kentucky. Earlier this year, Gulf Oil
acquired all title and interests to the Gulf brand from
Chevron U.S.A. Inc. Southern Petroleum supplies more than
150 gas stations in Kentucky, Indiana and Tennessee.
WILMORE
■ Asbury College has officially changed its name to Asbury
University to more accurately reflect its program offerings
and mission. Information about the name change released by
Asbury noted that master’s level programs have been offered
there since 2000.
STATE
■ AT&T has unveiled its Kentucky wireless network investment plans for 2010, which include
the addition of more than 40 new cell sites and
the upgrade of nearly 300 additional cell sites
to 3G throughout the state. The announcement builds on AT&T’s 2009 wireless investment, during which it added 50 new cell sites
in Kentucky and upgraded more than 80 existing sites to 3G.
14
APRIL 2010
PRINCETON: BREMNER FOOD’S EXPANSION
WILL CREATE 111 NEW FULL-TIME JOBS
B
REMNER Food Group is investing more than $62 million to expand its food production plant in Princeton,
where it produces private-label cookies and crackers.
The expansion will add 111 new full-time jobs to the
plant’s current 600-member workforce.
Bremner has acquired 32 acres of land to accommodate the
expansion, which will involve adding approximately 200,000
s.f. to the company’s existing 700,000-s.f. facility. The company
plans to install new production lines, relocate production lines
from other facilities and increase its warehouse space.
The Kentucky Economic Development Finance Authority has preliminarily approved Bremner Food Group for tax
benefits up to $5 million under the Kentucky Business
Investment program. The incentive can be earned over a 10year period through corporate income tax credits and wage
assessments. The maximum annual approved amount to be
earned by Bremner is $500,000.
Bremner is a subsidiary of Ralcorp Holdings.
LOUISVILLE: HILLIARD LYONS EXPANDS
WITH ASSET PURCHASE OF BCATALYST
H
ILLIARD Lyons, a Louisvillebased financial services firm, has
acquired middle-market investment banking team bCatalyst through
an asset purchase agreement.
Terms of the transaction were not
announced.
bCatalyst, also based in Louisville,
will continue its regional focus on middle-market mergers and acquisitions,
business valuation and other financial James R. Allen, CEO
advisory services addressing the needs of Hilliard Lyons
of business owners and enterprises valued in the $2 million to $200 million range. Andy McKay ,
the current CEO of bCatalyst, will become a senior vice president and director of investment banking at Hilliard Lyons.
“We believe that combining Andy McKay and his bCatalyst team with the brand and resources of Hilliard Lyons will
be very powerful,” said Hilliard Lyons CEO James R. Allen.
“The bCatalyst team has built a strong reputation and has
established outstanding relationships in the region that can
be further developed.”
Founded in 2000 by a group of Louisville entrepreneurs,
private equity investors and dealmakers, bCatalyst has played
an active role over the last decade in business incubation, angel
investing, venture capital, private equity, valuation and M&A
in the Louisville market and beyond. Recent bCatalyst engagements include advising Koch Filter Corp. in its sale to Tomkins
plc; Stonestreet One Bluetooth Software in its management
buyout; and Whip Mix in its purchase of Best-Bite.
David A. Jones, Jr., chairman of Chrysalis Ventures, said,
“The partnership with Hilliard L yons represents the next
step in the company’s success. bCatalyst started as an incubator of tech companies. For Chrysalis and other founders,
this represents the culmination of a vision of helping
regional businesses grow and succeed.”
Hilliard Lyons is a member of the New York, American and
Chicago stock exchanges and operates 70 branches in 13 states.
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Page 15
STATE: STATE AND ARRA PROVIDE $200K
FOR SWITCHGRASS ENERGY RESEARCH
T
HE Kentucky Agricultural Development Board has
approved the Kentucky Forage & Grassland Council for
$100,000 in Agricultural Development Funds and
$100,000 in American Recovery & Reinvestment Act (ARRA)
funds for the expansion of research related to switchgrass as
a renewable energy source.
According to information released by the state, the project will demonstrate that Kentucky farmers can produce
biomass crops on a large scale that can provide an added
income stream, as well as generate “green” energy for Kentucky consumers. The project will also show the value of
using a public-private partnership to produce and utilize
biomass crops and demonstrate the wide range of benefits
sustainable energy production has across the local economy and environment.
“Farming and energy are two keystones of Kentucky
industry and its future, which can have a mutually beneficial
relationship,” said Gov. Steve Beshear. “With the help of the
Kentucky Agricultural Development Fund, we are positioning agriculture to be a leader in the development of alternative energy sources, such as switchgrass.”
This project is the first award through the Multi-County
Energy Initiative Program, which encourages regional collaboration by providing a 1:1 match with ARRA funds and
state Agricultural Development Funds for agriculturally
related renewable energy projects.
BUSINESS BRIEFS
STATE
■ The Kentucky Council on Postsecondar y Education has
approved three new degree programs for the state. Western
Kentucky University will offer a bachelor of science in military leadership and a master of science in instructional
design. Murray State University will offer a master of science
degree in chemical manufacturing management.
■ The Kentucky Office of Rate Intervention has reached a preliminary settlement agreement with Atmos Energy
Corp. that limits the company’s general
rate increase to $5.9 million. The company had originally
requested an increase of approximately $9.5 million. The Public
Service Commission, which must approve the settlement, has
scheduled a hearing on the matter for May 11. Atmos ser ves
more than 180,000 customers in 38 counties.
■ Kentucky’s annual unemployment rate surged to 10.5 percent in 2009 from 6.6 percent in 2008, making it the highest
annual rate in Kentucky since 1983 when it was 11.3 percent.
The U.S. annual unemployment rate climbed to 9.3 percent
in 2009 from 5.8 percent in 2008, making it the highest
annual U.S. unemployment rate since 1983 when it was 9.6
percent. Kentucky’s unemployment rate for January 2010, the
most recent figures available, was up to 10.7 percent, up from
10.6 percent in December 2009.
APRIL 2010
15
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Page 16
INTERSTATE LANE
Business news from Indiana, Ohio, Tennessee and West Virginia
INDIANA
■ Lear Corp. is expanding its operations in Hammond, Ind.,
creating more than 285 new jobs by the end of the year. The
Michigan-based company, which designs and manufactures
complete seating systems and components for automotive
manufacturers, will invest more than $2.2 million to upgrade
and adjust equipment at its 110,000-s.f. facility to manufacture seating for the Ford Explorer. Lear currently employs
more than 160 workers in Hammond.
■ s2f worldwide LLC, a startup provider of supply chain and
logistics services, has announced that it will establish its headquarters and distribution operations in Plainfield, Ind., creating 250 new jobs by 2013. The company will invest $10.8
million to lease and equip a 200,000-s.f. distribution center
and office building near the Indianapolis International Airport that will serve customers in the automotive, life sciences,
telecommunications and retail markets, among others.
OHIO
■ Explorys Inc., a technology company that specializes in the
healthcare industry, has been awarded a 75 percent job creation tax credit for a 10-year term in connection with an $11
million project in Cleveland, Ohio, that is expected to create
330 positions. Explorys was formed in 2009 in partnership
with the Cleveland Clinic to develop an independent nationwide network aggregating research statistics and patient data
through real-time comparative analytics. The system bridges
the gap between researchers, life sciences, and those delivering care. The value of the tax credit is estimated at $17.6 million over the term, and the company would be required to
maintain operations at the project site for 13 years.
TENNESSEE
■ Bongards’ Creameries, a Minnesota-based cheese producer,
has purchased a 114,000-s.f. facility in Humboldt, Tenn.,
where it plans to establish a new production facility. The
Humboldt property was previously owned by ACH food companies and was used to produce loaf and shred imitation
cheeses. Bongards expects to have the capacity to produce
natural and processed shredded cheeses by the middle of the
summer and is scheduled to begin production of loafprocessed cheese by the end of the third quarter .The company expects to have approximately 89 employees at the
Humboldt plant within three years.
VIRGINIA
■ Massey Energy Company has signed a
definitive agreement to purchase Cumberland Resources Corp. and its affiliated
companies for $960 million in a combined
cash and stock transaction. Based in
Abingdon, Va., Cumberland is one of the
nation’s largest privately held coal producers and operates primarily underground coal mines in southwestern Virginia and
eastern Kentucky. Its assets include an estimated 416 million
tons of contiguous coal reser ves, a preparation plant in Kentucky served by the CSX railroad and a preparation plant in Virginia served by the Norfolk Southern railroad.
16
APRIL 2010
INDIANA: DOW AGROSCIENCES EXPANSION
TO CREATE UP TO 577 NEW JOBS IN INDY
D
OW AgroSciences
has announced a
significant expansion of its global headquarters in Indianapolis
that will create up to 577
new jobs by 2015.
The agriculture-based
firm is investing more than
$340 million to construct
additions of its headquarDow AgroSciences is in the process
ters over the next five
of implementing an aggressive
years, with the first phase expansion plan at its headquarters
being a 14,000-s.f. green- in Indianapolis.
house and a 175,000-s.f.
research and development facility at its corporate campus on the
city’s northwest side. The company expects the greenhouse construction to be complete by the end of this year while the R&D
facility is expected to open in early 2012, with other building projects coming according to a multi-year timeline.
Dow AgroSciences’ decision to expand its headquarters
follows two additional company expansions in 2009. In July,
the company announced it would lease an 80,000-s.f.
research facility adjacent to its global headquarters, allowing
for expansion and adding 100 new biotechnology scientists
to its ranks. In September, the company announced that it
would expand its Indiana research operations to Purdue
Research Park in West Lafayette, creating up to 30 new jobs
by 2014.
Dow AgroSciences photo
BUSINESS BRIEFS
TENNESSEE: CLEARFUELS PARTNERS WITH
HUGHES TO DEVELOP NEW BIOREFINERY
C
LEARFUELS Technology Inc. and Hughes Hardwood
have partnered to develop a biorefinery that will convert 1,000 dry tons of wood product per day to renewable diesel or jet fuel. Hawaii-based ClearFuels will site the
facility at the Hughes Hardwood wood component products
manufacturing facility in Collinwood, Tenn.
The Collinwood facility will represent an investment of
roughly $200 million by ClearFuels and the creation of 50
direct new jobs, with additional jobs to be created in relation
to the collection and transportation of feedstock.
At standard capacity, the biorefinery will be capable of
producing 16 million gallons of diesel and 4 million gallons
of the gasoline feedstock naphtha each year, along with six to
eight megawatts of excess electricity.
ClearFuels is slated to break ground on the biorefinery in
late 2011, and the facility will reach commercial operation
by late 2013 to early 2014.
“The concept of biomass harvesting will revolutionize the
logging industry in the South,” said Mike Yeager, land manager, Hughes Hardwood. “Landowners who prefer biomass
contractors over a conventional har vest will see both economic advantages and a more attractive post-har vest site.
Every landowner Hughes Hardwood has assisted has had an
issue with disposing of the remaining residual fiber . Now I
can offer a profitable solution to that problem.”
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Page 17
KENTUCKY INTELLIGENCER®
A sampling of economic development data
APRIL 2010
17
4/2/10
2:24 PM
Page 18
CORPORATE MOVES
New leadership for Kentucky businesses
BANKING
■ Stephanie Renner has joined American
Founders Bank as vice president and head
of compliance and
CRA. Sarah Leverage has been promoted to assistant
vice president,
internal auditor.
Keith Brewer has
been promoted to
assistant vice president, loan review
officer.
Stephanie Renner
Sarah Leverage
Keith Brewer
■ Bob Cline has
joined Republic
Bank as vice president/special assets
manager for its
commercial lending department.
CONSTRUCTION
■ Thomas M. Keckeis has been named
board chair, president and chief executive officer of Messer Construction.
Paul Hitter has been elected senior
vice president and chief financial officer for the company. Rick Hensley has
been named corporate vice president
and chief information officer. Dave
Miller has been named corporate vice
president and will partner with Mark
Gillming in leading the company’s
Louisville region.
EDUCATION
■ Robert C. Mock Jr. has been named
vice president of student affairs for the
University of Kentucky.
GOVERNMENT
■ The Kentucky Department of Parks
has named Monica Conrad, Kerry Lamb
and Stefanie Gaither as regional managers for the Kentucky state park system.
Diane Bonfert has been named as the
department’s director of recreation.
Chris Kellogg is the department’s new
communications director.
INSURANCE
■ Roy Goldman has been named vice
president and chief actuar y for
Louisville-based Humana Inc.
■ Melissa Lamont
has been promoted to assistant Bob Cline
vice president of
operation for First Citizens Bank in Elizabethtown. Brian Lippert has joined the
bank as vice president and credit administration officer.
LEGAL
■ Jeremiah A.
Byr ne has been
elected a partner
in the law firm of
Frost Brown Todd.
Gregor y S. Shumate has joined
the firm as a partner in the Florence office.
Brian Lippert
■ Joey Mills has been named senior vice
president and senior credit officer for the
Woodford County market of United Bank.
18
APRIL 2010
TECHNOLOGY
■ Michael Davis
has been promoted to chief Jason Clark
executive officer
of Louisville-based Appriss.
TRANSPORTATION
■ Joe Crabtree has been named director
of the Kentucky Transportation Center.
■ Andrew Aiello has been named general manager of the Transit Authority of
Northern Kentucky (TANK).
OTHER
■ Jason Nuetzman has joined Community Ventures Corp. as executive vice
president-Bowling Green.
■ John H. Clark IV has joined The
Clark Group as a board member and
principal stockholder.
■ Stephanie Nelson has joined the Kentucky Association of Manufacturers as
director of membership services.
Jeremiah A. Byrne
■ Chauncey S.R.
Curtz has been
named managing
partner for Dinsmore & Shohl
LLP’s Lexington
offices.
MARKETING
■ Stephanie Apple
has been promoted to vice pres-
■ Jason Clark has
been promoted to
president/ creative director of
VIA Studio in
Louisville.
■ Dana B. Cox has been named executive director of the Kentucky Historical
Society Foundation.
■ James L. Fisher has joined
Greenebaum Doll & McDonald as chief
operating officer.
Melissa Lamont
ident of marketing communications for
Preston-Osborne. Apple will work out of
the company’s Louisville office.
■ Meredith Apple Gault has been
appointed executive director of the
Kentuckiana Chapter of Juvenile Diabetes Research Foundation International.
■ Kevin McKim has been promoted to
president of RecoverCare, a Louisvillebased distributor of wound care and
bariatric equipment. Ryan Schmidt has
been appointed chief operating officer
of the company.
■ Ted Nicholson has been named general manager of the Louisville Arena,
the new multipurpose arena that is
slated to open later this year.
Chauncey S.R. Curtz
4/2/10
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Page 19
ON THE BOARDS
New leadership for Kentucky organizations
KENTUCKY ARTS COUNCIL
■ Henrietta Kemp, Josephine Richardson
and Andrea Rudloff have been appointed
to the board of directors for the Kentucky
Arts Council. Kemp is a retired educator
from Hopkinsville. Richardson owns the
Courthouse Café and Cozy Corner in
Whitesburg. Rudloff is an arts administrator from Bowling Green.
KENTUCKY DISTILLERS
ASSOCIATION
■ The following individuals have been
named to the board of directors for The
Kentucky Distillers Association: Chairman – Chris Morris, Brown-Forman
Corp.; Vice Chairman – John Rhea,
Four Roses Distillery; Secretary-Treasurer – Jeff Conder, Beam Global Spirits
and Wine; Andrea Wilson, Diageo
North America; David Hobbs, Heaven
Hill Distilleries Inc.; and Tom Krekeler,
Wild Turkey Distillery.
KENTUCKY LOTTERY CORP.
■ William Lee Scheben has been
appointed to the board of directors for
the Kentucky Lottery Corp. Scheben, of
Union, is senior vice president of Heritage Bank.
LEADERSHIP KENTUCKY
■ Regina Jackson has been named to
the executive committee of the board of
directors of Leadership Kentucky. Jackson is a partner in the Bowling Green
law firm of English Lucas Priest &
Owsley LLP.
LEXINGTON-FAYETTE URBAN
COUNTY AIRPORT BOARD
■ Kelley Sloane
has
been
appointed to a
four-year term on
the LexingtonFayette Urban
County Airport
Board. Sloane is
director of enterprise software
marketing for Kelley Sloane
Hewlett-Packard
in Lexington.
SOCIETY FOR MARKETING
PROFESSIONAL SERVICES
■ The Kentucky Chapter of the Society
for Marketing Professional Services has
announced its officers for 2010: President – Brooke Shepherd, EA Partners
PLC, Lexington; President-Elect – Carol
Blevins-Or may, CMTA Engineers,
Louisville; Past President – Ashley
Bruggeman, Bentley Prince Street, Lexington; Co-Treasurers – Sarah Young,
EOP Architects, Lexington, and Mary
Beth Wright, Messer Construction, Lexington; Secretary – Cory Sharrard, KTA
Consulting Engineers, Lexington; Public Relations – John Oliva, Builders
Exchange, Louisville; Program Coordinators – Jamie Draper, Engineering
Consulting Services, Lexington, and
Allison T. Pullen, Qk4 Architecture
Engineering Planning, Louisville; Sponsorship Coordinators – Brent Collins,
Luckett & Farley, Louisville, and Janet
Heberle, TEG, Louisville; and Membership Coordinator – Stacey McChord,
Ross Tarrant Architects, Lexington.
APRIL 2010
19
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Page 20
LANE ONE-ON-ONE
Kentucky’s leaders express their opinions
‘OUR RESOURCES ARE LEAN, AND WE
ARE TRYING TO DO MORE WITH LESS’
Ky Secretary of Tourism, Arts and Heritage Marcheta Sparrow
discusses overseeing 15 state agencies, preparing for WEG
BY ED LANE
Ed Lane: The U.S. economy has been in
decline for over a year. Economists say the
recession is over. What is your perspective
on the economy as it r elates to state government in general, and specifically to
tourism and the arts in Kentucky?
Marcheta Sparrow: Kentucky’s economy,
on the whole, is a bit behind the national
curve, and it may at this point be experiencing what other states were feeling this
crafts and arts were fairly strong. It was a
very good show this year; well attended;
large items sold well and the vendors
were pleased.
EL: Is this a good time for people to buy
art? Are prices competitive?
MS: Handmade items, this year, are a
very good buy. People are buying wellmade, hand-crafted items. Maybe peo-
Marcheta Sparrow
Marcheta Sparrow was appointed as Secretary of
the Tourism, Arts and Heritage Cabinet by Gov .
Steve Beshear in December 2007. She oversees 15
agencies of state government. She previously was
president and CEO of the Kentucky Tourism
Council, a 600-member statewide association representing every sector of the travel industr y. Her
work included acting as an industr y advocate in
the area of legislative and governmental relations,
as well as coordinating statewide conferences to
provide continuing education programs and marketing opportunities across the state. Prior to joining the Tourism Council, Sparrow was marketing
and public relations director for Shaker Village of
Pleasant Hill for nine years. Her career also
includes positions as director of tourism for the
Louisville Convention and Visitors Bureau, executive director of the Frankfort Tourist Commission,
and communications director for the Kentucky
Derby Festival. She began her work in tourism
with the Kentucky Department of Public Information as a tour guide at the State Capitol.
time last year. We see some improvements
in hotel occupancy levels. The tourism
industry is beginning to gradually pull out
of this bad economy. Actually, hotel occupancy rates – while they have declined in
Kentucky – did not decline as much as the
national average.
The state parks’ occupancy rates
declined less than the state’s overall
hotel occupancy average.
Obviously, the economy and tourism
levels also affect the arts – our craftsmen, artists and small businesses. Kentucky Crafts – the Market was recently
held in Louisville and sales of Kentucky
20
APRIL 2010
ple aren’t buying as much, but they are
buying the better quality items. It’s a
very good time to shop for Kentucky
crafts; the state-operated artist center in
Berea is doing very well.
EL: How much has the budget for the
Tourism, Arts and Heritage Cabinet
been reduced?
MS: Since the FY2008 budget went into
effect, the cabinet has taken five budget
cuts. As a whole, the budget cut is 28
percent. The cabinet still continues to
provide the highest level of ser vice we
can under the circumstances.
There may be three budgets out there
today for consideration by the Kentucky
General Assembly; we don’t know for sure.
There’s the governor’s recommended
budget that calls for a 2 percent cut.
There’s also the House budget. The Senate’s budget is not expected until next
week. At this time, we have no way of
knowing what to anticipate. (Editor’s note:
This interview was conducted and sent to
the printer prior to approval of the state’s
final budget by the General Assembly)
EL: How many agencies of state government are managed by the Tourism, Arts
and Heritage Cabinet?
MS: Fifteen. This cabinet manages a
very eclectic group of agencies. They all
work together very well and have much
of the same mission.
EL: How many employees now work for
the cabinet compared to the number
employed in FY09?
MS: Our work force is pretty much even
with FY09. Initially, the cabinet’s workforce was 2,444; it’s now 2,007 persons.
We now have around 395 fewer employees in our agencies.
We haven’t filled positions as people
leave. We’ve redistributed the workload
and, in most cases, have been able to
manage doing what we have done all
along with fewer employees.
EL: Hotels collect transient rent taxes.
How does that work?
MS: Actually there are different tax levels.
Most communities – some counties and
many cities – have a local transient rent tax.
That’s a local option that allows local governments to charge a 3 percent and up tax
on hotel room rentals. Jefferson County
has the highest rent tax in the state, somewhere in the range of 5 to 6 percent. The
state Revenue Cabinet collects a 1 percent
statewide lodging tax, and that’s a bit different; it is a tax on all hotel rooms, but it is
statewide and benefits ever y county
whether they have hotels or not.
The cabinet allocates hotel rent tax dollars to each of the state’s nine tourist
regions. Last year, collections were $8.6
million. This year, we project revenues will
decline to $8.2 million. Of that, $5.5 million is placed in the cabinet’s tourism and
marketing incentive program. It was
known as the tourism matching funds program and matches local marketing funds
to encourage tourism marketing. This
fund is allocated on a county and regional
basis. A convention and visitors bureau
4/2/10
2:24 PM
participating in a cooperating advertising
program with the Department of Travel
and Tourism could receive a match from
the state in an amount up to 90 percent of
the ad costs being invested.
Page 21
EL: How is that money allocated?
MS: There’s a formula. It’s based on
population, collections and the economic impact of tourism within the
region. The remainder of those funds
are used by the Department of Travel
and Tourism for its marketing budget.
Any person who holds a ticket to the
World Equestrian Games can go to the
Kentucky Experience at no extra charge.
The pavilion is probably the most impressive that Kentucky has ever undertaken. I
know that years ago Kentucky had a presence at the (1982) Knoxville World’s Fair
and the (1996) Olympics in Atlanta, but
this is the largest undertaking of its kind
that Kentucky Tourism has undertaken.
It’s going to be really grand, and Kentucky
entertainers will present live performances
there as well.
EL: Has the cabinet diverted marketing
dollars from the nine Kentucky tourism
regions to support the Alltech FEI 2010
World Games (WEG)?
MS: The cabinet will have a pavilion at the
WEG called The Kentucky Experience,
and all nine regions of the state will be
participating. The Kentucky Department
of Agriculture will be featuring Kentucky
Proud products. Our artisans and craftsmen will be there, and they will have Kentucky-made artwork. The Bourbon
industry and distillers will conduct Bourbon tastings in that pavilion.
EL: How would you evaluate travel to
Kentucky during fiscal year 2009, and
what are trends for this fiscal year?
MS: Kentucky’s statewide occupancy is
down 2.8 percent from last year, and
revenue per available room is down 6.7
percent. Kentucky is faring much better in comparison to national occupancy levels.
The revenue per available room
nationally is down 16.7 percent. It’s a
buyer’s market out there. Everybody is
looking for a deal, and everybody is planning their travel at the ver y last minute.
Kentucky is a great deal in terms of
value for your tourism dollars. Out in the
state, our attractions continue to hold their
own and in some cases generate some
slight increases. Kentuckians are not traveling as much and are staying closer to home
and visiting our state’s museums and attractions. Where we’ve really seen the decline is
with the business traveler. Businesses continue to book conventions, but the conventions don’t seem to have as many delegates.
EL: Mike Cooper,
commissioner of
the Department of
Travel, is a veteran
in this cabinet. Has
he had to focus a
lot of his time on
the Alltech 2010
FEI World Equestrian Games?
MS: Mike worked Mike Cooper
as the assistant
director of marketing for the Department of Travel from the mid-’80s until
2004 and came back with the Beshear
administration as commissioner.
APRIL 2010
21
4/2/10
2:24 PM
Page 22
LANE ONE-ON-ONE
Staff photo
The indoor arena at the Kentucky Horse Park
was built for the World Equestrian Games but
has already hosted and is booked for other events.
The World Games Foundation is really
taking the lead on the FEI World Games.
The cabinet has a team coordinating the
Kentucky Experience, and Mike has done
a lot of work on that. Mike’s really out
there – all over the state.
Hank Phillips is
the new deputy commissioner in travel.
Hank was the CEO
for the National
Tourism Association
(NTA) for 20 years
in Lexington. We are
really pleased to
have Hank on board
because this is a
Hank Phillips
huge task.
We hope the Travel Department will be
re-named. The bill to do so is on the (legislature’s) consent calendar. If approved,
this agency will be known as the Department of Travel and Tourism. Cheryl
Hatcher also is in the department and
director of sales. Actually, her primary
focus right now is
WEG, but she also
works on group
sales with our
tourism partners
all over the state.
Elizabeth
Chewning is the
cabinet’s new marketing director.
She was a tourism
professional in
Liz Chewning
West Virginia.
EL: Has the Department of Travel initiated any new marketing efforts to boost
tourism in Kentucky?
22
APRIL 2010
MS: Right now the
department is focusing
on our homegrown market. With regional advertising, we’re marketing
closer to home. Our
resources are lean, and
we are trying to do more
with less.
EL: Do you mainly support regional marketing
with TV and social media?
MS: Media is doing a mix
– some television, radio
and an all-new Web site
that will go active within
the next four to six weeks.
Tourism marketing is changing rapidly.
Social media are going to be the most
important new media in tourism marketing we’ve seen since electronic media.
EL: Gerry van der Meer, a respected
veteran in the hospitality industr y, was
recruited to the Depar tment of Parks
from the Campbell House in Lexington. How has his experience been helpful to Kentucky’s Parks?
MS: Superb. Gerry
is one of the best
respected hoteliers
in Kentucky. He
has added a level of
professionalism
and respect to the
parks department.
I can’t say enough
about Gerry; he’s
the hardest-workGerry van der Meer
ing guy I know.
EL: Is your biggest issue that some of
the state parks’ hotels have a small number of units, which makes it vir tually
impossible to cover operating overhead
and make a profit?
MS: Absolutely. People ask me all the
time, “When will these parks turn a
profit?” I want people to understand. Kentucky has 52 state parks. Seventeen are
resorts: They have hotels, golf courses or
are on lakes. Thirty-five are historic sites
and recreation parks; some have campground accommodations, many don’t.
All of these parks are free to the public. Of the 7 million people who visit state
parks every year, the majority only use that
which is free. It is not reasonable to expect
that 17 resort parks can support a system
of parks that is widespread.
The cabinet has 45,000 acres of land to
watch over, 1,600 buildings to maintain
and around 2,000 employees. This is a
huge park system. I still believe that good
government has a responsibility to provide
a park system for its citizens. The $30 million general fund appropriations for parks
each year equates to around $7 for ever y
man, woman and child to have one of the
finest state park systems in the countr y.
The state parks also have significant economic impact on the communities in
which they are located.
EL: What would you think about having
a small fee to visit a park; per haps $2
for out-of-state visitors and $1 for Kentucky residents?
MS: We’ve discussed that, and people’s
opinions differ. That’s one of the options
we’ve evaluated. First of all, traditionally
Kentucky state parks have been free to its
citizens, so it would
be difficult to make
a change. Secondly,
many of our parks
have four or five
ways you can enter.
Knowing Kentuckians the way I do,
we’ll always find a
way to get in free.
If we changed Lindy Casebier,
to paid admission, deputy secretary
we’d have to build of the Tourism, Arts
entrance gates and and Heritage Council
hire people to staff them. By the time we
did that we would have eliminated much
of any financial benefits from an admission fee. Also, the goodwill Kentucky parks
has created for 85 years could be lost.
So these are the issues we have to consider. Our staff is looking at changing the
model on how we do business. I really have
every faith that we’ll make our parks sound,
and my goal when I leave is for the parks
system to be ready for the 21st century.
Agencies of the Kentucky
Tourism, Arts & Heritage Cabinet
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Department of Parks
Department of Travel
Fish & Wildlife Resources
Frankfort Convention Complex
Governor’s School for the Arts
Kentucky Artisans Center at Berea
Kentucky Arts Council
Kentucky Center for the
Performing Arts
Kentucky Heritage Council
Kentucky Historical Society
Kentucky Horse Park
Kentucky State Fair Board
Creative Services
Kentucky Humanities Council
The Kentucky Sports Authority
4/2/10
2:24 PM
EL: Do our parks have preventative
maintenance issues?
MS: Yes. If there’s an area where park
funding is inadequate, it’s in preventive
maintenance. Often park facilities have
extensive deferred maintenance, and
when funding is made available we
make a lot of improvements and just
“love the building to death.” Commissioner Van Der Meer and I both agree
that parks has to develop an ongoing
annual system of preventive maintenance because it’s not always affordable
or feasible to go in and renovate ever ything at one time.
EL: The big event in 2010 will be the World
Equestrian Games at the Kentucky Horse
Park. How is this event progressing?
MS: I’m on the executive committee of
the World Games Foundation, and it’s
coming along quite nicely. We’ve sold a
little shy of 170,000 tickets at this point,
and general admission tickets haven’t
gone on sale yet. This is an exciting
challenge for Kentucky, being that this
is the first time the W orld Games have
been in the United States. We think we
know what to expect, but we don’t really
know for sure. We are confident that the
capital investments for the World Equestrian Games will benefit Kentucky for
years to come.
EL: Will room sales in cities like
Louisville and Cincinnati be significant?
MS: These cities will get their share of
business from the World Games. Obviously, Fayette and surrounding counties
are going to do very well.
EL: Delta Air Lines recently announced
restructuring of its domestic and international service because of its merger
with Northwest Airlines. Delta is also
eliminating the Gr eater Cincinnati/Northern Kentucky Airport as a
hub and reducing flight accordingly.
MS: The cabinet is disappointed to hear
about what is going on at the Cincinnati
International Airport. On a positive
note, the cabinet, the World Games and
Blue Grass Airport have been advised
that Delta will be putting on additional
flights into Lexington. Delta has already
seen an increase in bookings and will
add additional flights, most of which will
likely be coming from Atlanta.
EL: What is your gr eatest concer n
regarding the 2010 World Games?
MS: Making sure that everyone has an
opportunity to come to the World Games
and understands that a general admission
Page 23
ticket is good for a whole day of activities. I
suppose my biggest concern is marketing
the event. There are special event tickets,
but otherwise you can go anywhere in the
park. There’s an equine exhibition there
that will feature all the breeds of horses
and a trade show, “The Kentucky Experience.” There will be a lot of things going
on. It will be a day well worth the money .
I’m very impressed with the team at the
2010 World Games Foundation, and I am
confident we will be ready for the event.
I’m not concerned at all about the coordi-
nation of that event. I am ver y interested
in making sure we do the communication
that we need to get the word out to people
so that they will come. ■
Ed Lane (edlane
@lanereport.com)
is chief executive of
Lane Consultants,
Inc. and publisher of
The Lane Report.
4/2/10
2:57 PM
Page 24
COVER STORY
This rendering envisions a planned new six-lane I-65 bridge,
center foreground, that will twin with the existing Kennedy Bridge.
This bridge, another several miles upriver at I-265 and a r ebuild
of the I-65-75-71 Spaghetti Junction that is par t of the Ohio River
Bridges Project will relieve a national transportation bottleneck
between Gary, Ind., and Mobile, Ala.
The Bridges Coalition images
Kentucky Bridges,
National Impact
BY SEAN SLONE
N
EW Ohio River bridges with 12 additional lanes
are expected to cost $4.1 billion and reshape the
future not only of Louisville and Southern Indiana but a huge swath of the rest of the countr y,
relieving a major chokepoint in one of the
nation’s key north-south corridors.
The Ohio River Bridges Project now being carried forward
by a task force of Kentucky and Indiana officials will include a
new bridge adjacent to the John F. Kennedy Bridge in downtown Louisville that carries I-65 over the river , an East End I265 bridge that will connect Prospect, Ky., to Utica, Ind., and a
24
APRIL 2010
reconfigured Spaghetti Junction interchange where Interstates 64, 65 and 71
collide near downtown.
“That’s a project that is of national
significance,” said Stan Lampe, president of Kentuckians for Better T ransportation, a 32-year-old transportation
advocacy organization based in
Louisville. “I-65 runs from Gar y, Ind.,
all the way down to Mobile, Ala., and
that chokepoint, that congestion over Stan Lampe, president
the Ohio River, doesn’t just affect peo- of Kentuckians for
Better Transportation
ple in Southern Indiana and
Louisville-Jefferson County, Ky. It affects people who live in
Gary. It affects people who live in Mobile. And that’s something that a lot of people really don’t quite appreciate.”
And, of course, it affects Kentuckians.
“You don’t restrict the flow of commerce without affecting
the health of the state,” said Kentucky Chamber of Commerce
4/2/10
2:57 PM
Page 25
President/CEO Dave Adkisson. “An analogy might
be the restricted flow of blood through the heart.
That restricted flow has consequences and no
doubt Kentucky has been held back while that
issue has been growing.”
A chief chokepoint cause is that the Kennedy
Bridge, built in the early ’60s, was designed for a
daily traffic count of 85,000 vehicles but now sees
closer to 140,000 vehicles, some 65 percent more
than designed. Already well over capacity seven
years ago when the bridges project was launched,
the forecast is for Kennedy traffic to increase
another 42 percent by 2025.
To accommodate its growing traffic load, the
Kennedy’s shoulder areas were converted to traffic
lanes during the last decade, which made emergency access more difficult. The bridge as currently configured
does not meet safety standards, and the Federal Highway
Administration considers it structurally deficient – meaning it
required maintenance and repair to stay in ser vice, which is
fairly common.
“The right people and structure are now in place to move
quickly on the Ohio River Bridges Project,” said David W. Nicklies, president of Nicklies Development of Louisville and chairman of the Bridges Coalition, a non-profit organization
drawing from Kentucky’s and Indiana’s public and private sectors that advocates for the project. “Then we are on our way to
creating 56,000 new jobs through the construction phase
alone. When the project is completed, our bridge and highway network can move goods and people safely and efficiently,
which is vital for future job growth in the Louisville region and
throughout Kentucky.”
Ohio River Bridges Project plans are to convert the
Kennedy to six lanes for southbound traffic once a new sixlane downtown bridge is built to carr y northbound I-65 traffic. The new East End bridge, also six lanes, will provide
another cross-river link, connecting I-265’s Kentucky and Indiana segments for the first time, and diverting traffic and congestion away from downtown.
Better logistics, more jobs
“We have not done anything to improve the cross river mobility in 45 years,” said Joe Reagan, president and CEO of Greater
This rendering depicts the planned six-lane I-265 bridge acr oss the Ohio River
at Prospect, Ky., and Utica, Ind.
Louisville Inc.-The Metro Chamber of Commerce. “We do not
want to have the infrastructure we have carry the burden going
forward of a growing area… W e are a regional economy that
needs to be connected across this river very effectively. It’s the
only way that we can continue to be a logistics hub for the
world… Second, there are over 56,000 jobs that will be created
over the life of the project when we’re
able to move forward.”
Reagan believes the chokepoint has had
an impact on the ability of the Louisville
area to attract new businesses and jobs.
“But more importantly the companies
we (already) have are telling us it’s time to
fix this,” he said. “Companies that are here
have said ‘for us to stay here and to grow ,
we’ve got to have a great intermodal mobility within the region and to other parts of Joe Reagan, president
the country and the world.’”
and CEO of Greater
Reagan is a member of the Louisville- Louisville Inc.
Southern Indiana Bridges Authority, a 14member panel appointed by Gov. Steve Beshear, Indiana Gov.
Mitch Daniels and Louisville Mayor Jerry Abramson that began
meeting in February to create the plan for financing, building
and operating the new bridge system.
Superstructure replacement and widening of the
81-year-old Milton (Ky.)-Madison (Ind.) Bridge
across the Ohio River will begin this year and cost
$131 million. The new bridge will open in 2012.
APRIL 2010
25
4/2/10
2:57 PM
Page 26
COVER STORY
Kentucky’s share of the project’s cost is estimated at $2.9
billion and Indiana’s share at $1.1 billion. Originally state and
federal tax revenue were set to be used to fund the bridges.
But an escalating price tag and multiple delays prompted the
two states to consider other funding alternatives. In early
March, Indiana’s General Assembly authorized the possible
use of a public-private partnership and tolling to fund the project. Kentucky’s General Assembly last year deferred a decision
on the use of a private partner to the bi-state authority . Indi-
Kentucky’s Ohio River Bridges
From west to east
BRIDGE NAME
ROAD
BUILT
Cairo
U.S. 51
1937
Irvin Cobb
U.S. 45
1929
Earl Clements
KY 56
1956
Bi-State Vietnam Gold Star
U.S. 41 S
1966
Bi-State Vietnam Gold Star
U.S. 41 N
1932
Glover Cary
U.S. 60
1940
William Natcher
U.S. 231
2002
George Rogers Clark Memorial
I-65
1929
John F. Kennedy
I-65
1964
Milton Madison
U.S. 421
1929
Carroll Cropper
I-275
1977
Brent Spence
I-75
1963
Clay Wade Bailey
U.S. 25
1974
John Roebling
KY 17
1867
Taylor Southgate
U.S. 27
1995
Dan Beard
I-471 S
1976
Dan Beard
I-471 N
1976
Combs Hehl
I-275 W
1979
Combs Hehl
I-275 E
1979
William Harsha
U.S. 62
2000
Simon Kenton
U.S. 62
1930
Carl Perkins
KY 8
1987
Ben Williamson
U.S. 235
1930
Ashland 13th St.
U.S. 23
1985
CITY/COUNTY
MOST RECENT REPAIR
Wickliffe/Ballard
2008
Paducah/McCracken
2007
Morganfield/Union
2005
Henderson/Henderson
2007
Henderson/Henderson
2007
Owensboro/Daviess
1988
Owensboro/Daviess
N/A
Louisville/Jefferson
1993
Louisville/Jefferson
2008
Milton/Trimble
2009
Burlington/Boone
2001
Covington/Kenton
1991
Covington/Kenton
2000
Covington/Kenton
2009
Newport/Campbell
1995
Newport/Campbell
2004
Newport/Campbell
2004
Brent/Campbell
2010
Brent/Campbell
2010
Maysville/Mason
N/A
Maysville/Mason
2002
Portsmouth/Greenup
N/A
Ashland/Boyd
2008
Ashland/Boyd
2005
Source: Kentucky Transportation Cabinet
26
APRIL 2010
ana is of course no stranger to transportation public-private
partnerships, having leased its Indiana Toll Road to the Australian/Spanish infrastructure firm Macquarie-Cintra for $3.8
billion in 2006.
The Bridges Authority hopes to complete its financing plan
for the project by the end of the year . Current plans call for
the East End bridge to be open by 2013, the new downtown
bridge by 2019, and the reconfigured Spaghetti Junction by
2024. But there remains hope that if new sources of revenue or
private partners can be found, those timetables could be sped
up and considerable construction costs could be saved.
Other major Kentucky bridge crossings
Outside the important I-65 corridor, there are other megaproject bridges around the state that transportation officials
say need to be built and re-built in the coming years to further
facilitate mobility and commerce. Those projects are moving
forward, too.
“This is the most bridge building we’ve done since the
1930s. We’re going to spend a lot of money on bridgebuilding,” said Keith Todd, Kentucky Transportation Cabinet District One & Two public information officer.
Lampe offered up a list of some of these crucial bridge
crossings that are currently being redesigned to meet Kentucky’s – and indeed the nation’s – future needs. Among them:
• The Milton-Madison Bridge – Built in 1929, the bridge,
which connects Milton, Ky., to Madison, Ohio along U.S. 421 is
set to be replaced. In Februar y, Gov. Beshear announced the
project was awarded a $20 million federal Transportation
Investment Generating Economic Recovery (TIGER) grant as
part of the American Recover y and Reinvestment Act. In its
current condition, the bridge is too narrow for present-day
traffic needs and frequently needs repairs. Superstructure
replacement cost is estimated at $131 million, to be split evenly
between Kentucky and Indiana. Beshear’s 2010-2016 Highway
Plan provides $89.4 million for the project, more than enough
for Kentucky’s share of the funding. The project is expected
to create or preser ve more than 1,400 jobs. Construction is
expected to begin this summer with the new bridge open to
traffic in 2012.
• U.S. 68 Bridges across Kentucky Lake and Lake Barkley –
Both built in 1932 before Lake Barkley and Kentucky Lake
even had been dammed, these bridges also are set for replacement. Construction is slated to begin in 2011 at a cost of $350
million. “Those (current) bridges have 10-foot-wide lanes so
commercial trucks can’t pass in opposite directions because
their mirrors will hit,” Lampe said. “When you get that done,
you’ll have four lanes from Mayfield and beyond on to Bowling
Green. [There will be] some major improvements to moving
goods and services as a result of that.” Both bridges will take
about two years to complete.
• George Rogers Clark Memorial (Ledbetter) Bridge –
Originally built in Paducah in 1931 (and not to be confused
with a similarly named bridge in Louisville), it’ s now too narrow for the 8,500 vehicles that cross the Tennessee River each
day between Livingston and McCracken counties on U.S. 60. A
new bridge being constructed upstream will be finished this
year at an estimated cost of $80 million.
• Brent Spence Bridge – Due to capacity , sight distance and
safety concerns associated with its current configuration, this
Northern Kentucky bridge built in 1963 is considered functionally
obsolete. At an estimated cost of $3 billion, its replacement –
sought but not funded – is on the order of cost of the Ohio River
Bridges Project, although it is only a single bridge. That one
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2:57 PM
Page 27
This rendering shows the design of the r eplacement
bridge across Lake Barkley at U.S. 68. An identical
bridge will cross Kentucky Lake. The pair of bridges
will cost $350 million and replace the narrow
current structures built in 1932. Construction for
both is to begin in 2011 and take two years.
bridge, however, carries both Interstates 71 and 75 across the
Ohio River between Northern Kentucky and Cincinnati. Originally designed for 80,000 to 85,000 vehicles a day, the bridge today
regularly sees twice that number. “It was designed to be three
lanes wide and have shoulders on both sides,” Lampe said. “They
took out the shoulders and made it a four-lane bridge, so there’s
traffic that goes through with no shoulders.”
New bridges bring economic development
To see what a new bridge can do for a region, consider the
experiences of two communities in Kentucky – Maysville and
Owensboro – that have each seen recent construction of one
of these bridge megaprojects and that are now beginning to
reap the rewards.
The William Harsha Bridge, which opened in 2001, connects Maysville with Aberdeen, Ohio, across the Ohio River
along U.S. 62. It’s just a few miles downstream from the historic Simon Kenton Bridge, which was constructed in 1931.
The construction of the new bridge allowed for the temporary
closure of the Kenton Bridge in 2003-2004 as a $5.7 million
rehabilitation was completed. Now with both bridges open,
trucks can avoid a circuitous route through downtown
Maysville and take the wider, more truck-friendly Harsha
Bridge across the river.
“Right now most of the heavy traffic goes to the new bridge,
and we’re hoping that our old bridge will last another 75 to
100 years,” said Maysville Mayor David Cartmell.
With the new bridge has come economic development as
well, according to the mayor.
“Where the bridge is located within probably two miles
from there, we have an industrial park and we’ve had two
major plant expansions there since the bridge has been built,”
he said.
The William H. Natcher Bridge, opened in 2002, connects
Owensboro with Rockport, Ind., along U.S. 231. It’ s part of a
much larger project that will include a new 22-mile, four-lane
stretch of 231 from the bridge north to I-64. That 22-mile section, built by the state of Indiana, is opening this fall, 10 years
later than originally planned.
“That will be a major economic driver for western Kentucky
in the future,” said Jody Wassmer, president of the Owensboro
Chamber of Commerce. “At the same time, work has begun
on a new 2.2-mile extension of the U.S. 60 bypass around
Owensboro’s east side. When completed, this will work with
the new U.S. 231 north of the Natcher Bridge to create a new,
100-mile four-lane highway between I-64 in southern Indiana
and I-65 near Bowling Green. W e believe this new interstate
corridor connector will bring new growth to the region with
increased traffic and related opportunity.”
Kentucky Chamber of Commerce President Adkisson
agreed. As Owensboro mayor from 1987 to 1995, he was instrumental in pushing for the bridge.
“The project is still unfolding,” he said. “There are industries that have located because they knew the bridge was going
to open in 2002. AK Steel located in southern Indiana across
from Owensboro with a promise by Indiana to build a four lane road to the new bridge.”
The Owensboro-Henderson area is also expected to benefit
from the construction of I-69, a seven-state, 2,600-mile corridor sometimes called the NAFTA Superhighway due to its
potential to assist in trade with Canada and Mexico. Named
one of six “Corridors of the Future” by the U.S. Department
of Transportation in 2007, it will require a new Ohio River
bridge two miles east of Henderson that is expected to cost
$1.4 billion. Although preliminary environmental work ceased
in 2004 due to a lack of funding, Kentucky last year started
updating portions of the Pennyrile, Western Kentucky and
Purchase parkways to become part of the new interstate. Indiana is expected to complete 65 new miles of I-69 between
Evansville and Indianapolis in the next two years.
“We believe the progress being made in both Kentucky and
Indiana will build momentum for the I-69 bridge to be built
sooner than later,” Wassmer said via e-mail from Washington,
D.C., where he was lobbying on behalf of the project and other
infrastructure spending in March.
Despite all the success that bridge mega-projects promise, analysts point out that ever y bridge is important to someone, especially if they use it to get to work or to get home on a daily basis.
Every bridge is also important to the overall transportation system.
“In the United States, we tend to focus on megaprojects in
major urban areas,” Lampe said. “But there are bridge needs
in every county and they’re all going to improve commerce
and improve public health and safety.” ■
Sean Slone is a transportation policy analyst at
the Council of State Governments in Lexington.
APRIL 2010
27
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Page 28
AUTO MANUFACTURING
Toyota team members assemble a vehicle Mar ch
18 in Georgetown at Toyota Motor Manufacturing
Kentucky. The worker inside the vehicle is sitting
on a device Kentucky team members suggested for
easier access to their task.
Mark Green photos
Putting Recalls in
the Rearview Mirror
Toyota gives its top Kentucky executive St. Angelo
key quality control oversight role for company
BY MARK GREEN
T
OYOTA’S top Kentucky executive has been assigned a central
role in putting the world’s leading auto manufacturer’ s
image-denting recall woes in
the rearview mirror. Steve St. Angelo, president of Toyota Motor Manufacturing Kentucky and executive vice president of Toyota
Motor Engineering & Manufacturing North
America, is now also chief quality control
officer for North America.
Kentucky’s business and government
sectors alike wish St. Angelo well – Toyota
has a $3.9 billion annual impact on state
GDP, according to Gov. Steve Beshear.
“Toyota’s presence in Kentucky has a
tremendous impact on the state’s economy,” said Beshear. “Since opening its
Georgetown manufacturing facility in
1988, Toyota has also located its North
American manufacturing headquarters
in Erlanger and North American Parts
28
APRIL 2010
Center in Hebron, investing a total of
$5.5 billion in the commonwealth. Toyota’s decision to locate in Kentucky led
to a significant addition of jobs for suppliers and support businesses – some
65,000 Kentuckians now work in support of the auto industry.
“In 2008, Toyota’s employment impact
on Kentucky’s economy, either directly or
indirectly, was an estimated 37,100 jobs,
generating approximately 2 percent of
Kentucky’s total employment.”
Beyond the private sector billions,
Toyota’s presence generates large
amounts of occupational and property
tax revenue for state and local governments. Suffice it say, the last thing the
state needs in a “jobless” economic recovery is big trouble for the largest member
of its automaker sector.
“The new organization will open the
lines of communication globally and
enable us to respond faster here in
North America to any concerns about
our vehicles,” St. Angelo said via a news
release March 25 announcing the North
American Quality Task Force. “In keeping with (Toyota CEO) Akio Toyoda’s
mandate, North America will have
greater autonomy and play a critical
role in decision making on recalls and
other safety issues.
“We are making fundamental
changes in the way our company operates in order to ensure that T oyota sets
an even higher standard for vehicle
safety and reliability, responsiveness to
customers, and transparency with regulators,” St. Angelo said.
Meanwhile, aggressive 0 percent
financing and subsidized lease incentives
Toyota launched in March were well
received in the marketplace. Sales jumped
41 percent. Automotive News reported that
Edmunds.com forecasts U.S. light vehicle
sales for all makes
for March will be
up 31 percent from
a year ago. Toyota’s
incentives lead the
way and its vehicles
are selling strong,
according to Carl
Swope in Elizabethtown and T racy
Farmer
in Steve St. Angelo,
Louisville, each of president
whom sell a variety Toyota Motor
of lines of vehicles Manufacturing Kentucky
at multiple Kentucky dealerships. (See related story, Page 30)
Barring another major safety-related
recall in the near future, Toyota appears
to be putting the organization-testing
difficulties behind it.
Distress in the Bluegrass
The 6,000-plus Toyota team members in
Georgetown were upset about cars they
produced being among those recalled in
January because of reported uncontrolled
accelerations. Television news crews suddenly became regular visitors, and they
were not focusing their cameras on the 10
J.D. Power and Associates Initial Quality
Study award banners hanging at TMMK,
the most of any car production site in the
United States.
Among vehicles recalled in connection with customer-frightening accelerKYBIZ.COM • THE LANE REPORT
4/2/10
ation complaints were 2007-2010 Camrys and 2005-2010 Avalons built on
TMMK’s Line 1. There are two production lines in Georgetown; Camry, Camry
Hybrid and Venza vehicles made on
Line 2 were not recalled.
With media reports growing more and
more sensational and questions expanding to virtually all Toyota products, the
company halted all production and sales
of its vehicles for a week as engineers,
administrators and executives looked for
the root cause and extent of the fix.
TMMK employees approached St.
Angelo on the factory floor, expressing
concern and asking what they could do,
said Rick Hesterberg, the Georgetownbased assistant manager for external affairs
for TEMA.
“Our team members took this recall
very personally,” Hesterberg said.
Worry among workers and management who build the Camr y, Camry
Hybrid, Avalon and Venza in Scott County
rippled from the massive production facility to much of Kentucky, the nation’s No.
3 auto manufacturing state. More than 90
of the state’s nearly 450 vehicle parts makers count Toyota as a key customer.
Toyota’s overall President Akio Toyoda came to Kentucky Feb. 25, visiting
with St. Angelo and the company’s team
members in Georgetown a day after testifying before Congress in Washington.
He created the Special Committee for
Global Quality the next week.
Toyota officials took further steps in
late March to improve information flow to
key decision makers within their worldwide operation. Hesterberg said Toyoda
himself said the organization was slow to
see the problem it was having, and that
made it slow to react
Bad news can be a reluctant traveler
up the chain of command of an organi-
2:57 PM
Page 29
Toyota Production in Kentucky
YEAR
2006
2007
2008
2009
LINE 1
254,483
261,737
228,141
163,104
LINE 2
249,405
252,853
228,151
185,133
AVALON
100,014
76,186
51,318
27,513
CAMRY1
358,545
358,078
334,067
225,524
SOLARA
41,077
28,479
17,578
0
VENZA
6,521
75,896
CAMRY2
4,252
51,847
46,808
19,304
1
TOTAL
503,888
514,590
456,292
348,237
Gas
2
zation, whether due to sheer size, cultural differences or that age-old fear
about the fate of the messenger. Infor-
mation flow will play a significant role
for the new Toyota entities of which St.
Angelo is now a member.
Toyota Motor Manufacturing
Kentucky in Georgetown.
Hybrid
Source: Toyota Motor Manufacturing Kentucky
APRIL 2010
29
4/2/10
2:57 PM
Page 30
AUTO MANUFACTURING
He will guide the implementation of
regional improvements in concert with
the Special Committee for Global Quality
led by Toyoda. As chief quality officer for
North America, St. Angelo will serve with
counterparts from the other regions on
Toyoda’s committee, which met for the
first time on March 30 in Japan.
Each regional task force is specifically
charged with executing a six-point action
plan outlined back on Feb. 5 by T oyoda.
Its elements include improved quality
assurance; enhanced customer research;
strengthened quality management training; incorporation of best practices
through outside professionals; closer
cooperation with regulatory authorities;
and improved regional autonomy.
Communication was key during the
early days of the Toyota crisis. TMMK
and other company production facilities stay in close contact with suppliers,
Hesterberg explained. Toyota executive, engineers and workers trade visits
with suppliers and share best practices
to help keep costs down and improve
productivity. Open channels of communication had long been in existence, headed by TMMK’s purchasing
department.
“We kept open lines of communication.
They were concerned,” Hesterberg said.
As with the company’s workers, Toyota seeks a long-term relationship with
suppliers in which the benefits, financial
and otherwise, flow both ways, he said.
“They have to make a profit. We have
to make a profit,” Hesterberg
explained. “Obviously suppliers have to
have success, too, or we can’t succeed.”
Ultimately, the acceleration problem
with the Georgetown-produced Toyotas
was pinned down to a pedal being supplied to TMMK Line 1 by CTS Corp. in
Elkhart, Ind. Line 2 uses a pedal from
another supplier.
“It was a mechanical issue with that
part,” Hesterberg said. “It had nothing
to do with how a team member was
assembling that part.” ■
Mark Green is editorial director
of The Lane Report.
([email protected])
March Car Sales Approach Pre-Recession Levels
C
AR sales are regaining momentum according to the
trio of major Kentucky dealers The Lane Report
checked with in late last month. In fact, March numbers could rival those of “clunker” month last August.
“This month will speak volumes when the numbers come
out,” said Carl Swope, who along with his brother Bob leads
the Swope Family of Dealerships, based in Elizabethtown.
“The preliminary reports are very encouraging.”
Together, the Swopes’ father Bill and uncle Sam began
selling cars in 1952. Today the Swope Family of Dealerships
and affiliated Sam Swope Group have 25 dealerships with 28
franchises in Hardin, Jefferson, Fayette and Madison counties in Kentucky and Southern Indiana.
“I join the majority who who expect steady improvement
through the year,” Swope said. “March has been a pretty
exciting month for us.”
January and February are traditionally slower months,
especially so this year with extra harsh winter weather. Additionally, Swope said he believes the media storm regarding
Toyota recalls affected other brands, too – and he would
know since the various Swopes sell Chr ysler, Dodge, Jeep,
Nissan, Toyota, Ford, Mitsubishi, Hyundai, Cadillac, Buick,
GMC, Infinity, Lexus, Honda, Acura, Toyota, BMW and
Volvo.
“I think the whole industry was in a funk last month (February) because of the Toyota situation,” he said.
Tracy Farmer owns the Oxmoor
Automotive Group of seven dealerships centered on Shelbyville Road in
Louisville. They sell Toyota, Scion,
Ford, Lincoln, Mercur y, Isuzu,
Hyundai and Mazda.
“We’re nearly back to where we were
before,” said Farmer. That means prior
to the financial crisis that hit in fall 2008,
crippling credit operations and slamming the brakes on the economy and
Tracy Farmer, Owner
credit-sensitive car sales all over the
Oxmoor Automotive
United States.
Group
30
APRIL 2010
The improvement has been less dramatic for Paducah Ford Lincoln Mercury
Mazda, according to Owner/President
Larry Stovesand. But that’s because his
27-year-old operation did not experience
a significant falloff in sales during the
depth of the recession.
“It was never that bad for me,” said
Stovesand, who took over ownership of
his Paducah dealership in 1983 and
opened another in Nashville four years Larry Stovesand
ago. Overall annual sales were up year President/Owner
Paducah Ford Lincoln
over year in 2007, 2008 and 2009.
Mercury Mazda
Why? “Who knows,” he said, “but I
don’t look a gift horse in the mouth.”
Farmer agreed with Swope’s assessment that March sales
will rival those of last August when the federal Cash for
Clunkers program revved up a moribund market. The
clunker program, which provided
vouchers of up to $4,500 when customers traded in a wide range of older,
low-gas-mileage vehicles on new cars,
was akin to the Christmas sales season
for retailers, Swope said. “Most dealers
made their money in clunker month.”
A major reason for the current sales
boost is the “serious set of incentives”
Toyota introduced in March to reinvigorate its sales, prompting other makers
Carl Swope
to follow suit or be left behind. Buyers
President
obviously feel “Toyota still makes safe
Swope Family
cars despite all the media hysteria,”
of Dealerships
Swope said.
Toyota’s sales have been strong the past month, and it has
plenty of product available, Farmer said, suggesting other
vehicle producers “cut back perhaps too much.”
Stovesand also said he is experiencing inventory difficulties with some vehicles. “I am short of big SUVs,” he said,
“and probably will be for the rest of the year.”— Mark Green
4/2/10
2:57 PM
Page 31
4/2/10
2:57 PM
Page 32
HOTELS
Open since 2006, 21c Museum Hotel in Louisville
is a 90-room hotel that features contemporary art
from living artists exhibited throughout its guest
rooms, galleries and public space.
Built in 1923, The Brown Hotel in Louisville combines
old-world charm and contemporary luxury. One of the
hotel’s restaurants, J. Graham’s Café, is said to be the
originator of the legendary “Hot Brown.”
The Seelbach Hilton in Louisville was built in 1905.
The historic hotel inspired author F. Scott Fitzgerald
to use The Seelbach as a backdrop for Tom and
Daisy Buchanan's wedding in The Great Gatsby.
Luxury & Sophistication
Six Kentucky hotels rate one of AAA’s
highest stamps of approval for service with style
BY FEOSHIA HENDERSON
S
IX of Kentucky’s hotels have
garnered the prestigious AAA
Four Diamond Award 2010 for
outstanding service, amenities
and attention to detail.
The award winners are: The Cincinnati
Marriott at RiverCenter (Covington),
Griffin Gate Marriott Resort (Lexington), 21c Museum Hotel (Louisville), The
Brown Hotel (Louisville), The Seelbach
Hilton (Louisville) and the Marriott
Louisville Downtown.
These hotels are among the finest in
the country as measured by the AAA Diamond Rating Process, the premier hotel
rating program in North America. It’s a
well-respected rating system of the member-driven AAA (formerly the American
Automobile Association) travel, dining
and insurance company. The Diamond
Ratings help members decide the type of
lodging experience that best fits their
travel needs, and 32,000 hotels throughout the United States, Canada, Mexico
and the Caribbean have been rated in the
five-tiered AAA system.
“It gives the customer a level of confidence that you have a high ser vice
level, and that you are going to get a
32
APRIL 2010
great experience,” said Jon McFarland,
general manager of The Seelbach.
The ratings are based on member
feedback and the work of professional
evaluators who assess hotels on a 27-point
system. And every rated hotel must meet
basic quality standards related to comfort,
hospitality and cleanliness.
Though the hotel industry has faced
a slump like most other sectors of the
economy, these hotels have weathered
the economic storm. And general managers of the Four Diamond hotels said
things are looking up this year.
“We believe 2010 shows a lot of promise with upcoming events like the
Breeder’s Cup. We look forward to see
many new faces as well as the return of
many loyal guests,” said Guy Genoud,
assistant general manager of The Brown.
21c General Manager Clare Evans
agreed: “We’ve already witnessed a much
bigger pickup as of last quarter. We ended
last year ahead of ‘08, and we are predicting growth this year over last.”
Now, take a closer look at the award
winners:
21c Museum Hotel (21chotel.com)
is an innovative mix of lodging and art.
The 90-room boutique hotel in downtown Louisville features an art museum
and award-winning restaurant Proof on
Main. The art doesn’ t stop in the
museum – works are scattered throughout the hotel and in the rooms. 21c is
the only American museum dedicated
exclusively to 21st-century art.
Besides the unique accommodations, the 21c approach to ser vice also
sets it apart.
The hotel didn’t take too much of a
hit during the economic downtown,
Evans said, and has found a balance
among varied travelers that keeps business brisk.
“With our strong focus on art and
the museum, we’re very fortunate to
have a mix of corporate and leisure travelers,” Evans said. “What is so wonderful with art is that it’s drawing people as
a destination in itself.”
The Brown Hotel (brownhotel.com)
is one of Louisville’s historic hotels,
styled in classic English Renaissance
architecture marked by a two-story lobby
with a hand-painted ceiling, marble
floors and carved mahogany furnishings.
The Brown is often the landing place for
people after a night at the adjacent
Brown Theatre or Palace Theatre.
The Brown continually looks to
improve service, a key to Four Diamond
success, said assistant General Manager
Genoud.
“Although we pride ourselves on
having the very best accommodations
4/2/10
2:57 PM
Page 33
The Louisville Marriott features 616 hotel rooms
and suites and 50,000-s.f. of meeting space near
Fourth Street Live, Slugger Field and Waterfront
Park in the heart of downtown Louisville.
The Cincinnati Marriott at RiverCenter is located
next to the Northern Kentucky Convention Center
along the Ohio River in Covington, Ky., and
boasts great skyline views of downtown Cincinnati.
and amenities, we continue to work
tirelessly to improve them. We try to
anticipate the needs of our guests and
strive to exceed their expectations,”
he said.
The Seelbach Hilton is a study in
contrasts (seelbachhilton.com),
describing itself as a place “where
European Charm Meets Southern Hospitality” and which houses “Historical
Elegance with Today’s Modern Necessities.” The hotel, built in 1905, is
home to a Five Diamond restaurant,
The Oakroom. Recently, this historic
hotel (on the National Register of Historic Places) underwent a $12 million
renovation, adding new furnishings,
lighting and carpeting along with 37inch high definition televisions and
high-speed Internet access.
“There was not a single upgrade
made to The Seelbach Hilton without
painstaking attention to detail and the
highest respect for the hotel’s historic
integrity,” Jon McFarland, general manager, said of the renovation. “W e knew
we were going to polish the building’ s
façade but were not sure what to do
about the weather-worn original windows. We consulted with local historical
boards and were easily convinced that
restoring the windows, rather than
replacing them was best.”
The hotel’s improvements coincide
with an improvement in the hotel’s business, and McFarland sees a bright 2010.
“We have seen an uptick in the individual travel bookings, but we’re also
seeing the group business coming back.
It appears at this point we are going to
have a better year in 2010,” he said.
Though Louisville Marriott Downtown, Cincinnati Marriott at RiverCenter and Griffin Gate Marriott Resort
& Spa all are Marriots, each hotel has its
distinct service and style that sets it apart
from other hotels.
The 591-room Louisville Marriott
Downtown (marriott.com/hotels/travel/
sdflm-louisville-marriott-downtown), has
25 suites and 20 meeting rooms. The hotel
has two restaurants, Italian and American,
and a Starbucks coffeehouse. It’s near
Churchill Downs, picturesque Waterfront
Park and Fourth Street Live. The hotel has
two floors of concierge rooms, with a
lounge and VIP services.
The Louisville Marriott was the 2005
winner of Marriott’s Full-Service Hotel
Opening of the Year, and that set the
bar for excellent ser vice, said General
Manager Michael Howerton.
“The motto of hotel was identified
as ‘Keep ’em Smiling,’ and it is really
the focus for everyone to walk out with
a memorable experience and remember why they were in the hotel,” Howerton said.
The Cincinnati Marriott at RiverCenter (marriott.com/hotels/travel/
cvgdr-cincinnati-marriott-at-rivercenter)
is actually along the riverfront in Covington. The newly renovated hotel boasts
great skyline views of downtown Cincinnati, and is just minutes from the Reds
and Bengals professional sports stadiums.
It also connects to the Northern Kentucky Convention Center by skywalk and
is known as a premier destination spot for
business and corporate events in the
Greater Cincinnati area. The 10 West
restaurant, café and lounge offer foods,
drinks and coffee. The 14-floor hotel has
321 rooms, two concierge levels and 29
meeting rooms.
The Griffin Gate Marriott Resort & Spa
hotel (marriott.com/hotels/travel/lexkygriffin-gate-marriott-resort-and-spa) in Lex-
Located near the Kentucky Horse Park, the Mar riott
Griffin Gate in Lexington has 409 guest r ooms, which
overlook the rolling hills of the Bluegrass Region and
the golf course that surrounds the hotel.
AAA Hotel Gemology
Here’s how the five-tiered rating system works, according to AAA:
One Diamond: Typically appeal to
the budget-minded traveler. They
provide essential, no-frills accommodations.
Two Diamond: Appeal to travelers
seeking more than the basic accommodations. There are modest
enhancements to overall physical
attributes, design elements and
amenities.
Three Diamond: Properties are multifaceted with a distinguished style,
including marked upgrades in the
amenities and comfort level provided.
Four Diamond: Upscale in all areas.
Accommodations are progressively
more refined and stylish. The physical attributes reflect an obvious
enhanced quality throughout.
Five Diamond: The ultimate in luxury and sophistication. Accommodations are first class.
ington brings a bit of luxury and leisure to
horse country. The Griffin Gate, which has
also been newly renovated, has a full-ser vice spa including facial and massage ser vices and a steam room. The seven-floor
hotel has 388 rooms, 21 suites and five
concierge levels. There’s a Rees Jonesdesigned 18-hole golf course, and babysitting services as well. ■
Feoshia Henderson is a correspondent
for The Lane Report. She can be reached
at [email protected].
APRIL 2010
33
4/2/10
2:57 PM
Page 34
RECREATION
At the state dock in
Jamestown, houseboat
rentals are down but
all other business is up
during the past year.
Visitors Still
Making Waves
Out-of-state rivals’ claims of Lake Cumberland’s
demise are greatly exaggerated
tucky Tourism, Arts and Heritage Cabinet officials estimated annual revenue
at $153 million for the four-county
Lake Cumberland Region prior to the
drawdown.
Three years into the project
(expected to be complete in late 2012),
damage to the local economy has been
much less than feared but quite difficult
for a few. Everyone seems to agree the
biggest damage came from negative
press, with rival out-of-state venues fanning the flames.
Tourism economic figures for
some individual
counties
were
down from 2007 to
2008 but on the
whole were up for
the
10-county
Southern Lakes
and Rivers Region,
said Gil Lawson, Gil Lawson, spokesman
spokesman for the for the Tourism, Arts &
Tourism, Arts & Heritage Cabinet
Heritage Cabinet.
“It’s a complicated formula that
includes payroll, food, fuel, lodging, a
number of factors,” Lawson said. “The
total economic impact of tourism in
those counties in 2008 was $253.8 million, up from $247.4 million in 2007.”
Bill Jasper, president of Lake Cumberland State Dock in Jamestown, said
his houseboat rental business has
declined, but every other aspect had
been growing.
“Our biggest problem wasn’t the
drawdown. It was the negative press,” he
said. “It was so widespread.”
BY ANNE CHARLES DOOLIN
C
AROLYN Mounce, executive director of the Somerset-Pulaski Convention and
Visitors Bureau, said she is
asked sometimes if Lake
Cumberland, largest water impoundment in the eastern United States since
the early 1950s, is still dry.
Misinformation has run rampant
since the water level was lowered in January 2007 for repair work on the W olf
Creek Dam, she said. “We spent a lot of
money trying to negate the adverse
advertising and information out there.”
Lake Cumberland, often called the
Houseboat Capital of the World, is the
largest U.S. lake by volume east of the
Mississippi. At maximum fill 760 feet
above sea level, its meandering shore-
34
APRIL 2010
line is 1,255 miles, nearly the 1,293-mile
length of the U.S. Pacific shore and far
longer than Florida’s 770 miles (excluding islands).
The lake and
its recreation
assets are a major
economic driver
for the entire
region, so lowering the lake for
several years to
680 feet – typical
s u m m e r- w i n t e r
pool range is 723- Carolyn Mounce,
690 feet – was a executive director
serious concern of the Somerset-Pulaski
for ever yone in Convention and
the area. Ken- Visitors Bureau
Some surprising results
“The reality is different from the
perception, ” said
J.D. Hamilton,
president of Lee’s
Ford
Marina
Resort in Nancy,
“but it’s hard to
recover
from
news that was carried on the BBC, J.D. Hamilton,
CBS News, and in president of Lee’s Ford
The New Y ork Marina in Nancy
Times. We almost
need a rebranding since our image was
severely damaged.
“Lake Cumberland is a huge economic engine,” Hamilton said. “The
Grand Canyon has four million visitors a
year; Yellowstone Park 3.5 million.
Before the drawdown, Lake CumberKYBIZ.COM • THE LANE REPORT
4/2/10
land had five million a year. Now it’s
more like four million.”
Some of the impacts on visitor numbers are not what one would expect,
said Mike Wilson, deputy for project
management with the U.S. Army Corps
of Engineers, Nashville Division.
“The first year,
the number (of
visitors) actually
grew because folks
were curious. It
declined the year
after that, but
since then we’ve
seen
some
increases,” he
said. “There are a
Mike Wilson, deputy
number of varifor project management
ables at play as
with the U.S. Army
well.
Corps of Engineers,
Nashville Division
“Gas prices
shot up to $4 a
gallon in 2007 and 2008, and then the
economy nosedived,” he said. “We’ve
found that those factors tend to
increase visitors at projects near a major
populace, but show a bit of decrease at
areas that are more remote.”
The drawdown did not affect fishing.
It did create a shoreline beach in some
places.
“The shoreline has turned out to be
a tremendous asset,” said Mounce of the
Somerset-Pulaski CVB.
“A lot of our customers will tell you
they actually prefer it this way,” said
Jasper in Jamestown.
“The shoreline is more open to
exploration now,” said Wilson. “And it’s
given (corps personnel) the opportunity to pick up additional debris. In
some ways, the lake is even more pristine than before.”
Marina moved operation
On the other hand, the lower water
level created a serious problem for
2:57 PM
Page 35
some marina operators. Many took a
financial hit when their boats slips
became high and dry, and a few had to
relocate entire operations.
“We had to move every single slip
[870 at Lee’s Ford],” said Hamilton.
“They all have sewer, water, electric, like
a small city.”
Ed Slusser, who purchased Alligator
Dock One in Russell Springs just six
months before the announcement, had
to move miles away from his original
location.
“We were 100 percent full at the
time, but we’re at the head of the creek,
and the drawdown left half our deck on
the bottom. It’s been an uphill battle,
and the Corps has offered no monetary
help at all,” Slusser said.
“We had a slip there when I was
growing up, and when I sold my business I bought the marina,” he said. “I
couldn’t walk away. I had my whole life
savings invested.” Renamed Cave
Springs, Slusser said his marina still has
parts under construction.
The Lake Cumberland Tourism/ Economic Development Advisory Committee, formed a few months ago, is working
with local, state and federal agencies to
improve tourism and economic development. The committee includes the U.S.
Army Corps of Engineers officials, Gov.
Steve Beshear, and U.S. Reps. Harold
“Hal” Rogers and Ed Whitfield. Their
plan makes recommendations for marketing, maintaining visitation levels,
parking and other issues.
New initiatives, new cooperation
Marina operators and tourism organizations are trying new marketing ideas
and events as well. Many now have
“dock cams” on their Web sites, are hosting parties and promoting their dining,
or are offering discounts on slip rental.
The first Lake Cumberland Grand Prix
last May, an Offshore Super Series
Although its level is lower for dam r epair, Lake
Cumberland continues to attract fleets of visitors.
New shoreline beach areas are proving to be
popular, and fishing has not been af fected.
speedboat race, received a great
response and coverage. “ESPN2 filmed
it, and it’s been shown over and over. It
certainly showed the world we have
plenty of water,” said Mounce. The
event returns June 4-6 this year.
Another upside is that businesses
and individuals have joined forces as
groups to promote the region.
“We have people on the local, state
and federal levels all working
together,” said Hamilton. “We still have
a lot of work to do, but ever ybody has
come together.”
“The Tourism Cabinet for the state
has been a tremendous asset in promoting our area,” said Mounce. “And
the corps has worked tirelessly to make
the best of a situation that could have
been horrible.”
“It’s all about the lake,” said Jasper .
“There’s nothing within 1,000 miles that
can compete with this lake, in its current condition. It’s a gift, and people no
longer take it for granted.” ■
Anne Charles Doolin is a correspondent
for The Lane Report. She can be reached
4/2/10
2:57 PM
Page 36
MARKETING
‘A FAILURE TO COMMUNICATE?’
Six steps to taking your company to the next level
BY JOE LILLY
O
NE of my favorite movie lines
comes from the classic “Cool
Hand Luke”: “What we’ve got
here is a failure to communicate.”
Business owners and managers often
make the mistake of failing to communicate, or they communicate the wrong
messages. This is a mistake that will
almost always costs you money.
Why? Good communication is good
marketing. Poor communication – or
none at all – leaves customers, employees, vendors and others in the dark
about you. That can hurt not only your
reputation but also your bottom line.
The constant pressure of “staying in
the black” can cause tunnel vision. You
make excuses: “It’s my company; I
know more about this than anyone
else. With the economy suffering, I
need to make money to keep people
employed. I don’t have time to stop
what I’m doing to let others know
what’s going on. I don’t have money to
market the company.”
It’s time to break through that tunnel vision and position yourself for the
expected economic recovery. Here are
six steps you can take to improve communications within your company:
• Identify all of your audiences – It’s
a mistake to focus only on your customers. Other important audiences
include employees, investors, board
members, family and friends, vendors
and suppliers, and local business and
trade media. Make a list that spells out
each audience, plus how you commu-
nicate with them. If your audiences are
consistently updated about your company, they help you spread your business message – and become your
advocates.
• Showcase your successes – In a
down economy, a successful business
becomes a news stor y. Take opportunities to tell the news media – and your
other audiences – about new business,
contracts, a successful program, etc.
• Create simple business messages – If
you had only 20 seconds to sell your company’s products or services to the country’s
top CEO, what would you say? What makes
you different or unique from your competitors? You have to create those messages. Then, you have to ensure they are
prominent on your marketing materials,
your Web site and in the minds of your
audiences. You have to be able to say you
are better than your competitor – and
back it up with your performance.
• Beef up your marketing plan –
Admit it. When business slows down,
you normally cut the marketing budget
first. Then you’re surprised when business slows even further. Duh. To grow
your business, invest in a comprehensive
marketing program. It doesn’t have to
break the bank, but it has to be targeted
to your potential customers.
• Pick low hanging fruit – Your existing
customers should be a priority. Consider
loyalty programs, special deals, perks and
e-newsletters with coupons for customers
who already know you. They’ll tell others
about how great you are.
• Recognize your limitations – You are
an expert at running your company. However, you are probably not a trained communications specialist. If you have a
trained professional on staff, listen to
him/her. If you don’t have someone on
staff, contract with a professional to provide recommendations.
The present can be a time of business
revival and recovery. You may have the best
product or service, but if people don’t
know about it, you won’t sell it. Don’t let
others accuse your company of having “a
failure to communicate.” ■
Joe Lilly is executive
vice president of New
West, a full-service
marketing, public
relations and
advertising firm
in Louisville.
36
APRIL 2010
4/2/10
2:57 PM
Page 37
ECONOMIC COMMENTARY
WASHINGTON JUST DOESN’T GET IT
Politicians are delivering a fiscal product that no one wants
BY LAWRENCE KUDLOW
T
HE disconnect between Washington
and the rest of the country has never
been greater. Why can’t the political
class in the District of Columbia produce
a fiscal product that voters, taxpayers and
investors are willing to consume?
According to The Washington Post, voters want smaller government and fewer
government services by a large 58 percent
to 38 percent margin. Pollster Scott Rasmussen reveals that 61 percent of voters
believe tax cuts help the economy, that 59
percent think tax cuts are a better job-creation tool than increased government
spending and that another 59 percent
believe higher deficits hurt the economy.
Rasmussen also reports that a full 83
percent of Americans blame the deficit
on the unwillingness of politicians to
cut government spending. And get this:
In a whopper of a poll result, The New
York Times reports that 75 percent of
Americans dislike Congress.
This is why there’s a political revolt out
there. Washington just doesn’t get it.
Inside the Beltway, Democrats are
sending a profoundly pessimistic message that only government knows best.
But out there in the heartland there is
an optimistic message that We the People know best. And that heartland optimism will not be stopped.
The future of the U.S. economy –
including jobs, growth and the stock
market – hangs in the balance. Government-controlled healthcare, with Senate
vote-purchasing and union special-interest loopholes, is not the answer. Nor is a
$2 trillion tax hike on banks, multinational corporations, capital gains, inheritance and successful upper-income
earners. Nor is a doubling of the publicly held federal debt to $19 trillion, or
nearly 80 percent of gross domestic
product. Nor is a federal spending ratio
of 25 percent of the economy . Nor is a
budget deficit at a 10 percent share of
GDP for as far as the eye can see.
Politicians are delivering a fiscal
product that no one in America wants.
It’s no wonder small businesses aren’ t
hiring. Yes, there is a cyclical recover y
going on, but it is incomplete without
the jobs.
The so-called $85 billion jobs program is not a jobs program at all. It is a
spending bill. Temporary tax credits to
hire new workers have virtually no permanent job-creating effect. In budget
terms, these kinds of temporary tax
credits are scored as tax expenditures —
i.e., spending. Only a permanent reduction in the marginal business tax rate
has the incentive effect for long-run job
creation. Reducing the business tax rate
makes firms more profitable after-tax.
And it gives them more cash flow. Those
incentives will work to expand investment and jobs.
And taxing capital is the worst idea of
all. That’s why the capital-gains tax must
not be increased. Plus, raising the top two
income tax brackets from 33 percent to 35
percent, and then from 35 percent to 40
percent, thereby penalizing those who
own about half of the small-business
income, is a job-destroyer.
Why Republicans are flirting with this
terrible temporary small-business tax
credit is beyond me. This is a moment for
the GOP to send a message that it is the
party of growth through across-the-board
reductions in marginal tax rates –for everyone. That includes large and small businesses, along with all individuals and
families. All producers and investors
should get lower tax rates. At a bare minimum, Republicans should be fighting
hard to extend the George W. Bush tax
cuts on the way to a longer -term goal of
low-rate, flat-tax reform.
The time has come for our government to get out of the way, allow the
American people to prosper, create
wealth, build businesses and advance
technology, and let the United States be
the No. 1 country in the world from
now until forever. ■
Lawrence Kudlow is
CEO of Kudlow &
Co., an economic and
investment research
firm in New York City.
4/2/10
2:57 PM
Page 38
SPOTLIGHT ON THE ARTS
News briefs on cultural events around Kentucky compiled by Lori Meadows
Former Berea Movie Theater is New Venue
for Fine Art and Handcrafted Goods
T
HE Folk Arts and Crafts Capital of Kentucky
this month has a new galler y offering fine arts
and crafts handcrafted by a number of talented
and juried artists. A former Berea movie theater that
closed its doors in the 1980s is now reborn as The
Berea Center for the Arts (Berea-center-arts.com).
Gallery owner Sune Frederiksen bought the building two years ago and put it through a long renovation.
It opened April 9. Frederiksen is also owner of the popular Main Street Café restaurant on College Square in
Berea, which also features arts and crafts.
The newly renovated building still contains the old
A sample of the ceramic art from the
movie balcony, which has new Berea Center for the Arts.
become an intimate and functional space for per forming
arts, classes, workshops and seminars. Future plans including a
pottery shop in the former coal cellar.
Berea Center of the Arts is located on Berea’s busiest street
next door to the public library, a short walk to either Old Town
or College Square. Skilled local labor worded on the renovation. It is open Wednesday to Saturday; private showings are
Sune Frederiksen
available other days.
Kentucky Arts Council Awards Professional
Development Grants to 10 State Artists
T
HE Kentucky Arts Council has awarded a total of $4,385 in Individual Artist
Professional Development grants to 10 Kentucky artists for the fourth quarter
of fiscal year 2010.
The competitive matching grants of up to $500 have been awarded to: Nancy Allen,
writer, Knott County; Stacey Chinn, sculptor, Fayette County; Judy Kushner, fiber artist,
Scott County; John Haywood, painter and musician, Knott County; Debra Lott, painter ,
Jefferson County; Hunter Stamps, ceramicist, Fayette County; Jason Howard, writer, Madison County; Lorinda Jones, musician, Hardin County; Gerald Tolson, musician, Jefferson
County; and James Southard, photographer, Jefferson County.
The grants awarded include funding support for W eb site design, promotional
materials, production of audio and video work samples, travel to national conferences, exhibit preparation, and field work and research expenses.
Southern Arts Federation
Changes Its Name to South Arts
T
HE Southern Arts Federation (southarts.org) has changed its name to South
Arts. The new name and logo reflect the exciting changes and new directions detailed in the 2010-2016 strategic plan, Crafting the Future of the Arts in
the South. With this plan, the organization will expand its service to regions beyond
its current reach. South Arts’ contact information, including e-mail and web site
domains, will remain unchanged.
South Arts is supported in part by the National Endowment for the Arts and the
state arts agencies of its partner states: Alabama, Florida, Georgia, Kentucky,
Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.
38
APRIL 2010
Arts Events
Around the State
Kentucky Writers’ Day Celebration
10 a.m.-12 p.m., April 23
The Capitol Rotunda, Frankfort
artscouncil.ky.gov
(502) 564-3757
Governor’s Derby Exhibition
Visual arts on display in the Capitol
8 a.m.-12 p.m., April 26-May 10
Kentucky State Capitol, Frankfort
artscouncil.ky.gov
(502) 564-3757
New Quilts from an Old Favorite:
Sunflower
National Quilt Museum, Paducah
10 a.m.-5 p.m. Sunday-Tuesday
8 a.m.-6 p.m. Wednesday-Saturday
April 15-May 25
quiltmuseum.org
(270) 442-8856
Earth Day Celebrated
Natural Materials Jewelry by Marlon
Obando Solano
Kentucky Artisan Center at Berea
10:30 a.m.-3:30 p.m., April 22
kentuckyartisancenter.ky.gov
(859) 985-5448
Red River: The Narrative Works
of Edgar Tolson, Carl McKenzie,
Earnest Patton, and Donny Tolson
Kentucky Folk Art Center, Morehead
9 a.m.-5 p.m. Monday-Saturday
through June 1
kentuckycenter.org
(502) 562-0100
Anne Frank: The Diary
of a Young Girl
The Historic State Theater, Elizabethtown
8 p.m., April 16-17
3 p.m., April 18
hardincountyplayhouse.com
(270) 351-0577
Want to know more?
For details about art and cultural
events and activities taking place in
Kentucky, visit the Kentucky Arts
Council Web site at artscouncil.ky.gov.
Lori Meadows is
executive director
of the Kentucky
Arts Council.
4/2/10
2:58 PM
Page 39
THE LANE LIST
TOP TOURIST DESTINATIONS IN KENTUCKY
Ranked by number of visitors in 2009
ATTRACTION
ADDRESS
WEB SITE
VISITORS IN 2008
PHONE NUMBER
Land Between The Lakes
lbl.org
1,544,090
100 Van Morgan Drive, Golden Pond, KY 42211
(270) 924-2000
Cumberland Gap National Historical Park
nps.gov/cuga
883,663
P.O. Box 1848, Middlesboro, KY 40965
(606) 248-2817
Kentucky Horse Park
kyhorsepark.com
870,000
4089 Iron Works Parkway, Lexington, KY 40511
(859) 233-4303
Louisville Zoo
louisvillezoo.com
835,807
1100 Trevilian Way, Louisville, KY 40213
(502) 459-2181
Cumberland Falls State Resort Park
parks.ky.gov
650,000+
7351 Ky. Hwy. 90, Corbin, KY 40701
(800) 325-0063
Louisville Bats Baseball
batsbaseball.com
612,525
401 E. Main St., Louisville, KY 40202
(502) 212-2287
Natural Bridge State Resort Park
parks.ky.gov
600,000+
2135 Natural Bridge Road, Slade, KY 40376
(800) 325-1710
Fort Boonesborough State Park
parks.ky.gov
500,000+
4375 Boonesborough Road, Richmond, KY 40475
(859) 527-3131
Kentucky Center for the Performing Arts
kentuckycenter.org
473,709
501 W. Main St., Louisville, KY 40202
(502) 562-0100
Lake Barkley State Resort Park
parks.ky.gov
450,000+
3500 State Park Road, Cadiz, KY 42211
(800) 325-1708
Keeneland Race Track
keeneland.com
439,966
4201 Versailles Road, Lexington, KY 40510
(800) 456-3412
Barren River Lake State Resort Park
parks.ky.gov
411,000+
1149 State Park Road, Lucas, KY 42156
(270) 646-2151
Lexington Legends Baseball
lexingtonlegends.com
409,580
207 Legends Lane, Lexington, KY 40505
(859) 252-4487
Mammoth Cave National Park
nps.gov/maca
403,095
1 Mammoth Cave Parkway (P.O. Box 7), Mammoth Cave, KY 42259 (270) 758-2180
The Creation Museum
creationmuseum.org
307,000
2800 Bullittsburg Church Road, Petersburg, KY 41080
(888) 582-4253
Kentucky Derby Museum*
derbymuseum.org
210,128
704 Central Ave., Louisville, KY 40208
(502) 637-1111
Louisville Slugger Museum & Factory
sluggermuseum.com
207,703
(877) 775-8443
My Old Kentucky Home State Park
parks.ky.gov
100,000+
501 E. Stephen Foster Ave., Bardstown, KY 40004
(502)348-3502
Churchill Downs
churchilldowns.com
700 Central Ave., Louisville, KY 40208
(502) 636-4400
Louisville Science Center
louisvillescience.org
(800) 591-2203
Newport Aquarium
newportaquarium.com
One Aquarium Way, Newport, KY 41071
(859) 261-7444
Keeneland Race Track
Louisville Zoo
Cumberland Falls State Resort Park
* Number is for 2008; facility was closed the majority of 2009 due to flooding.
+ Estimate because visitors participating in hiking, boating, etc., are unable to be tracked.
Source: Individual attraction contacts, Web sites, Kentucky Department of Parks
My Old Kentucky Home State Park
APRIL 2010
39
4/2/10
2:58 PM
Page 40
EXPLORING KENTUCKY
the action up close and not from the nosebleed section of a stadium.
Two presenters sure to be crowd
favorites are animal behaviorist Mark
Peterson – featured on the Histor y Channel’s Monster Quest – and his famous Dusty,
who delights kids at numerous Ronald
McDonald Houses across the country. For
an hour daily, Dusty will do such tricks as
flipping the lid on a toy box, choosing a
toy and handing it to a child.
In keeping with things all-equine, a
portion of IEF’s proceeds will go to local,
national and international charitable
horse organizations. An international
recipient is the Spanish Riding School in
Vienna, where sturdy Lipizzaners have performed airs above the ground for 430
years. Recently, the Austrian government
stopped funding the honored institution,
which is now in need of financial support.
For only the third time in histor y, these
beloved horses will perform in the United
The Lexington Convention Center in downtown Lexington will ser ve as the host of the upcoming
States as a festival treat.
International Equestrian Festival.
The event’s producer, Horse Capital
Productions, came about thanks to the
collaboration of Kimberly Eilers Brown,
a former management consultant for
Lexington prepares to host the International Equestrian Festival
Price Waterhouse Coopers and competitive rider, and Anne Buchanan, an educator and former field director of the
BY KATHERINE TANDY BROWN
Kentucky Equine Education Program
(KEEP). A shared a passion for the horse
industry has made a perfect skills combiPresentations range from entry-level
S the Kentucky Horse Park gears
nation, Brown says, and the festival holds
information to clinician experts speaking
up for the FEI Alltech W orld
true to Horse Capital Productions’
about the highest levels of equine competiEquestrian Games (WEG) come
model, which is to promote the horse
tion. A focus on the local Thoroughbred
September, Lexington is busy rolling out
industry through large-scale education,
industry includes talks on such topics as
the red carpet for all comers, whether
entertainment and tourism.
“Behind the Scenes at the Kentucky
horse aficionados, curious tourists or fun“People are coming here for
Derby,” “The Life and Training of a
seeking locals. While plans are afoot for a
Young Thoroughbred” and “What EI NQT UE RE NSATT IROINAA NL WEG,” said Brown, the comraft of downtown happenings, the largest
F E S T I V A L
pany’s managing partner, “but
It’s Like to Win the Derby.”
activity takes place at the Lexington Conthey also want to see, feel and
As part of the Kentucky Horse
vention Center from Sept. 25 through
experience everything Kentucky
Council’s first-time owner seminar
Oct. 10 to parallel the 16-day WEG comis famous for, from the Thorseries, horse trainer Julie Goodpetition schedule.
oughbred industry to bourbon.
night, best-known for her awardProduced by Lexington-based Horse
The festival provides access to a
winning reality show, Horse Master,
Capital Productions LLC, the multi-millot of those things and a terrific
appears daily for talks and demonlion dollar International Equestrian Festishopping opportunity as well, all in a clistrations. Named Equine Affaire’s Excepval (IEF) will fill a goodly portion of the
mate-controlled venue.”
tional Equestrian Educator for 2008,
structure’s 88,000 s.f. with a trade show fea“Our vision is the vision of a legacy,”
Goodnight has gleaned multidisciplinary
turing 400 high-end equine-related venBrown said, “not just what happens for
expertise in dressage, racing, jumping,
dors, world-class educational seminars,
two weeks in 2010.”
reining, driving and colt-starting during a
hands-on equine-related demonstrations,
Look for updates as September
25-year career in the horse industry.
live exhibits, and of course, food and shopdraws nigh at horsecapitalproducA centerpiece for live interactive
ping. Private VIP parties and receptions
tions.com, horsecapitaltours.com or call
equine demonstrations, performances
for events that fit IEF’s mission can take
(859) 223-2010. ■
and exhibits is Polytrack Park, an arena
advantage of 10,000 s.f. of dedicated hosmade from Polytrack, a high-performance,
pitality space.
Katherine Tandy Brown is a
all-weather racetrack surface. In keeping
In order to accommodate WEG
correspondent for The Lane Report.
with the festival motto of “Pet a horse,
exhibitors, attendees and fans, the festiShe can be reached
touch a horse, watch a horse as it’s perval runs from 1 until 9 p.m. daily , with
forming a movement,” attendees get to see
wall-to-wall activities.
All Thing Equine
A
40
APRIL 2010
4/2/10
2:58 PM
Page 41
Upcoming Events across Kentucky
goodies. Hours are 5 p.m.-midnight on
Friday, 8 a.m.-midnight on Saturday.
Big South Fork Scenic Railway
Mother’s Day Ride
100 Henderson St.
Stearns
May 9
(800) 462-5664
bsfsry.com
International Bar-B-Q Festival
Downtown Owensboro
May 7-8
(800) 489-1131
bbqfest.com
Start salivating now in anticipation of the
annual International Bar-B-Q Festival in
Owensboro, a town with a heritage of
world-famous barbecue. In addition to
cook-offs, there’ll be entertainment, special events and vendors with irresistible
Moms ride half-price on the Big South
Fork Scenic Railway on this special day .
Ride the open-air rails into Big South
Fork National Park, with a layover in the
old mining town of Blue Heron, where
visitors can learn about its past through
oral histories and “ghost structures’ that
show where original buildings stood.
Reservations are required for groups.
Kentucky Scottish Weekend
General Butler State Resort Park
1608 Hwy. 227
Carrollton
May 7-8
(513) 300-1904
kyscottishweekend.org
General Butler State Resort Park’s
annual Scottish weekend includes bagpipes and pipe bands, highland and
country dancing, games, Celtic music,
a British car show, Scottish vendors,
clans, border collies and more.
Mid-America Hound Show
Shaker Village of Pleasant Hill
3501 Lexington Rd.
Harrodsburg
May 8
(800) 734-5611
shakervillageky.org
More than 20 hunt clubs will show
some 200 dogs, primarily foxhounds,
but also Bassett hounds, beagles and
terriers. Judges will inspect the dogs,
and spectators can learn about the
dogs being shown.
APRIL 2010
41
4/2/10
2:58 PM
Page 42
PASSING LANE
Commentary on life in Kentucky
‘Peanuts’ Gaines is NSA Sheriff of Year
L
IFELONG Warren County resident Jerry “Peanuts” Gaines has been sheriff for
31 years. Prior to that, he was a Warren County magistrate, interim jailer and a
military policeman. Some public officials lose perspective over time and
develop an attitude of ownership of the office they occupy , but to his great credit
Gaines considers his position a sacred trust of the people.
On June 28 in Anaheim, Calif., the 3,000-sheriff-strong National Sheriffs’ Association, dedicated to raising the level of professionalism among sheriffs, is recognizing Gaines as the 2010 national Sheriff of the Year.
“This honor goes to my department,” Gaines said. “W e have
the best tax collection and 99.6 percent and we are a model
county. This really is an honor not just for me, but for W arren
County and Kentucky. It means we’re No. 1 in the United States!”
Gaines is current president of the Kentucky Sheriffs’ Association, which he also led in 1981-83, 1988 and 1994. He was
NSA president in 2000-01, and has served in various executive
and board roles with the state and national associations.
In Warren County, he’s implemented youth education and
anti-drug programs that emphasize success over adversity.
“Peanuts” Gaines
Among other accomplishments, he set an example of sound
financial management that prompted legislation so it could be
followed around the state.
Peanuts Gaines has achieved success by above all being ser vant of the people.
Thank you for your service, sheriff.
Kentucky’s First Foray into Outer Space
I
F you were watching NASA TV on March 27,
you saw a Terrier-Improved Malemute NASA
rocket blast off from Wallops Flight Facility in
Virginia carrying Frontier 1, a 4-pound spacecraft
designed and built by Kentucky Space.
It ejected from the launch vehicle successfully
and went into space 167 miles above the Earth, its
planned trajectory soon bringing it back down to
burn up on re-entry into the atmosphere. However,
it completed its mission of testing hardware and
software systems to be flown on an orbital satellite
called KentuckySat 1, scheduled to launch with the
NASA Glory Mission in November 2010.
The March event was the first time Kentucky has
ever developed, built and successfully inserted a
free-flying craft into space.
Kentucky Space is a nonprofit consortium involving students and the resources of UK, Morehead State,
UofL, Western, Murray State, KCTCS, the Kentucky
Space Grant Consortium and Belcan, with support
from the Kentucky Council on Postsecondary Education. Kentucky Science and Technology Corp. is managing partner.
Students are involved in designing and developing educational, R&D and entrepreneurial space
platforms. Kentucky Space also recently formed a joint venture with NanoRacks LLC,
a Houston-based aerospace company, to facilitate and undertake scientific research
on the International Space Station.
“This unique partnership among Kentucky’s higher education institutions, state government and private industry shows that the commonwealth is a bastion of high-tech, 21stcentury learning, as well as limitless economic opportunity,” said Gov. Steve Beshear.
Spread the word. Meanwhile, good luck in November!
42
APRIL 2010
‘Artistic Funk,
Gentlemanly Class’
N
O surprise to us, but Louisville
has been named to another
national magazine’s list of the
Best Places to Live in 2010.
Men’s Journal cited Louisville’s arts
scene, its coffee shops and stores – and
specifically touted Bardstown Road –
in its April issue, which hit newsstands
last month. Other cities named to the
list include Minneapolis, Denver and
Nashville.
“To
some,
Louisville is just
Bourbon, baseball bats, and a
famous horse
race,” the article
states. “To those
who know better,
it’s artistic funk
and gentlemanly
class. Packed with Louisville Mayor
eclectic coffee Jerry Abramson
shops,
thrift
stores, skate punks and bluegrass street
musicians, Bardstown Road is a slice of
weirdness in the midst of an upscale
neighborhood. Bourbon’s reemergence as a sophisticated beverage
rather than redneck swill parallels the
city’s cultural renaissance.”
Mayor Jerry Abramson said
Louisville’s secret is out.
“Even Men’s Journal has discovered all
the possibilities in Louisville,” he said.
W
4/2/10
4:14 PM
Page 43
To the Editor
E read with great interest your February 2010 article, “Into the Big Leagues.” Louisville businesses
are, indeed, fortunate to have a fine firm such as
Mountjoy Chilton Medley LLP resident in our city. My firm,
PricewaterhouseCoopers, recognizes the vital role accounting firms play in helping businesses large and small solve their
problems. In today’s economy, more than ever, it is critical
that businesses have a solid, steady advisor to turn to, and we
salute The Lane Report for showcasing the profession and
for helping readers understand the critical nature of the
services the accounting profession provides.
We do, however, take exception to one comment in the
article implying that PwC has “retreated from many second-tier cities like Louisville.” With over 260 people serving Kentucky-based clients from our Louisville, Lexington
and Cincinnati offices, we have the breadth of resources
needed to serve companies on the move. PwC has been
serving Kentucky businesses with distinction for over 80
years. We audit over 70 percent of Kentucky’ s Fortune
1000 public company revenues. We
have a legacy in Kentucky of committed service and we intend to be there
for years to come.
Sincerely,
Philip Gregory, Managing Partner
PricewaterhouseCoopers LLC
Kentucky Practice
T
Traffic Fatalities Fall
to 10-Year Low
HE Kentucky
Office
of
Highway Fatalities
Highway
Year
Fatalities 2004 ............964
Safety
recently
1999 ..............729 2005 ............985
released final statis2000 ..............823 2006 ............913
tics for 2009 show2001 ............843 2007 ............864
ing 791 traffic
2002 ............915 2008 ............826
fatalities last year, 35
2003 ............931 2009 ............791
fewer than in 2008
and the lowest total
since 1999, when
the death toll was 729. Fatalities declined for the fourth consecutive year.
“The good news is that 35 fewer lives were lost,” Gov. Steve
Beshear said. “The bad news is that people are still needlessly
dying on Kentucky highways. We will not rest until the number
is zero, because one fatality is one too many.”
Gov. Beshear’s Executive Committee on Highway Safety is
working to update and implement the state’s strategic highway
safety plan
Of the 791 fatalities last year, 649 were in motor vehicles. Of
those, 61 percent were not buckled up and 20 percent involved
alcohol. Motorcyclists accounted for 80 fatalities. More than
60 percent of those were not wearing helmets; 19 percent of
fatal motorcycle crashes involved alcohol.
KOHS safety initiatives include an annual “Click It or
Ticket” seat-belt campaign and “Over the Limit. Under Arrest”
impaired driving campaign.
LexTran Reinstitutes CBD Trolley Service
L
Downtown passenger service known as the COLT returned to Lexington April 2 after a long absence.
LexTran is operating two hybrid electric and thr ee diesel trolley vehicles on two routes – one along Main
and Vine streets from Thoroughbred to Triangle parks, and another along Upper and Limestone str eets
connecting the University of Kentucky and Transylvania University.
To Clarify
AST month’s Lane List
included a couple of typos
we’d like to fix. The president/CEO of Bank of Kentucky is
Robert Zapp. The Kentucky
Regional Manager/Lexington for
Fifth Third Bank is Sam Barnes.
Also, while our Largest Kentucky
Banks list reports the market share
and Kentucky deposits numbers that
the FDIC compiles on a statewide
basis, Fifth Third Bank operates separate affiliates in Louisville and Lexington. Eastern, western and
northern portions of the state are
part of separate affiliates as well.
Lastly, a photo illustration with
last month’s Exploring Kentucky column of a horse whose eye contained
an image of the world actually
belongs to this month’s Exploring
topic: the International Equestrian
Festival at Lexington Center during
the World Equestrian Games.
APRIL 2010
43
4/2/10
2:58 PM
Page 44
KENTUCKY PEOPLE
FRANKFORT: KY MORTGAGE REGULATOR
ACHIEVES NATIONAL ACCREDITATION
CAMPBELLSVILLE: TAYLOR COUNTY BANK
HOLDS GRAND OPENING CELEBRATION
Kentucky State Government photo
Taylor County Bank photo
State officials joined Gov. Steve Beshear to represent the Kentucky Department
of Financial Institutions, which recently achieved national accreditation by the
Conference of State Bank Supervisors (CSBS) and the American Association of
Residential Mortgage Regulators (AARMR). Kentucky DFI is the thir d state
mortgage regulator to achieve national accreditation. Attending the presentation were (left to right) Public Protection Cabinet Secretary Robert D. Vance,
President and CEO of CSBS Neil Milner, Gov. Steve Beshear and DFI
Commissioner Charles Vice.
The Taylor County Bank recently held grand opening festivities for a new
branch located in Campbellsville. Bank Chair man James C. Miller III and
President Henry E. Lee welcomed more than 100 guests, including business,
civic and state leaders as well as bank customers.
LOUISVILLE: SEVEN NEW SHOPS NOW OPEN
AT LOUISVILLE INTERNATIONAL AIRPORT
LEXINGTON: ATTORNEY BILL LEAR IS
HONORED FOR COMMUNITY SERVICE
Louisville Airport photo
Paul Atkinson, Rockledge Photography & Design photo
Bill Lear (right), chairman of the board of directors for the law firm of Stoll
Keenon Ogden PLLC, was recently honored by Commerce Lexington for his
impact in advancing the Lexington community. “Mr. Lear has known no
boundaries in what he has given to this organization in ter ms of time, energy,
resources and expertise over the last 25 years,” said Commer ce Lexington
President Bob Quick (left). Over the years, Lear ser ved as chairman of all
three organizations that merged to for m Commerce Lexington: The Greater
Lexington Chamber of Commerce, Lexington United and Lexington
Partnership for Workforce Development.
44
APRIL 2010
Ribbon-cutting ceremonies were held last month for seven new shops at
Louisville International Airport. The new shops are operated by The Paradies
Shops, the airport’s news and gift concessionaire, and include The New York
Times Books and News, Louisville Slugger Shops, Chur chill Downs, CNBC
News Express, Heine Brothers To Go, Experience Kentucky, and Finish Line
News. Attending the ribbon cutting were (left to right) Gregg Paradies, president/CEO of The Paradies Shops; Phil L ynch, chairman of the Louisville
Regional Airport Authority Board; Louisville Mayor Jerry Abramson; and
Kevin Flanery, president of Churchill Downs Racetrack.
4/2/10
3:04 PM
Page 993
Page 994
3:04 PM
4/2/10
THIS IS AN ADVERTISEMENT
Business Law
Government Access
Litigation
Real Estate
Healthcare Regulation
in the healthcare business, you can’t afford slip-ups.
201 East Main Street, Suite 1000
Lexington, Kentucky 40507
(859) 231-8780 | www.mmlk.com

April Lane 1-23JM.qk:Layout 1

Transcription

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