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LOUISVILLE’S GREEN

ENTREPRENEUR

REAL ESTATE &GREEN CONSTRUCTION

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LANE ONE-ON-ONE: JAMES ALLENPresident, Chairman and CEO of Hilliard Lyons

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2 JUNE 2011 KYBIZ.COM • THE LANE REPORT

Kentucky’s Business News Source For 26 Years Volume 26 Number 6

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24 COVER STORY: LOUISVILLE’S GREEN ENTREPRENEURNuLu creator and environmental empresarioGill Holland works the business side of arts

28 CONSTRUCTION GOES TO COLLEGEHigher ed finds new finance channels; its $1.8B incapital projects since recession hit has sustained builders

32 MIXING FAMILY AND BUSINESSSuccessful multi-generational operations require knowingwhere personal and professional conflict is likely to arise

34 STILL BUILDING IN KENTUCKYDespite recession and aftermath, Commonwealth has billions in active building projects

FEATURES

2011®

KENTUCKY BUSINESS NEWSAVAILABLE ONLINE

ON THE COVERGill Holland stands amid $100,000 in solar panels that generate more thantwo-thirds of the power used by The Green Building, the state’s first LEEDplatinum-certified building, which he and his wife, Augusta Brown Holland,developed on East Market Street near downtown Louisville. Behind Hollandon a lower level is a planted section of green roof.Mark Green photo

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DEPARTMENTS4 Perspective

6 Fast Lane

14 Interstate Lane

16 Kentucky Intelligencer

18 Corporate Moves

19 On the Boards

27 Going Green

37 Opinion

38 The Lane List

39 Spotlight on the Arts

40 Exploring Kentucky

42 Passing Lane

44 Kentucky People

20 Lane One-on-One:James AllenPresident, Chairman andCEO of Hilliard Lyons




THE control of a nation’s energydetermines that nation’s prosper-ity and security or lack thereof.

Just ask T. Boone Pickens, Texas oilmagnate, who strongly supports devel-opment of wind power and use of Amer-ica’s natural gas reser ves. Pickensreadily admits that wind power develop-ment would require heavy federal gov-ernment subsidies.

Gasoline prices in the U.S. havenearly doubled in the last three years, sodebate is overdue on domestic energy.First, no amount of ethanol as fuel cantake the place of gasoline to power vehi-cles. The expense of converting corn toethanol as fuel makes it unrealistic andthe use of ethanol as fuel is driving foodcosts upward. Next, ethanol (or batterypower) will not work in semis and otherheavy-duty vehicles.

The most realistic alternative fuel toreplace diesel in these heavy-duty vehi-cles is natural gas. Recently, natural gashas been found in abundance inAppalachia, Texas, Oklahoma, Arkansasand Louisiana. Enough has been iden-tified to supply the United States formore than 100 years. This reserve ismore than twice the amount of Saudioil reserves.

T. Boone Pickens calls our naturalgas reserves, which could cut by 50percent our reliance on OPEC oil, “agame changer.” He supports congres-sional action to access this fuel. Oilsands and oil shale, plentiful in theUnited States, offer other domesticsources of energy to reduce relianceon foreign oil, but only if the federalgovernment permits the explorationand development of these sources.

U.S. energy policy seems to prefercontinued reliance on Mideast oil, sim-ply governing by fiat and executiveorder. The administration has done anend run around a federal judge’s rulingthat required opening up the permit -ting process for drilling for our owndomestic oil. The Heritage Foundationreports that as of February 2011, at least103 permits were awaiting review by theBureau of Ocean Energy Management,Regulation and Enforcement. SinceFebruary, the administration has issuedon average only 1.3 permits a month, a78 percent reduction in the monthly

average according to the latest Gulf Per-mit Index.

Meanwhile, oil companies migrate toother nations to explore and drill.Other companies are simply forced intobankruptcy at a cost of thousands ofjobs when our economy can ill affordsuch job loss. Failure to use God-givennatural resources to benefit Americancitizens is not responsible governing.

On a March trip to South America,the president promised Brazil that theUnited States would help finance thatcountry’s effort to develop its off-shoreresources. His administration won’tpermit any significant U.S. drilling inAlaska or off-shore, yet America willhelp Brazil drill off-shore and thenimport its oil for our domestic use.

Politicians continue to pander tocorn growers about government subsidyfor converting corn to ethanol. This isnot only grossly expensive and ques-tionably efficient, but it negativelyimpacts food costs. Even Al Gore nowdisavows its virtues, admitting he wantedto help farmers in Iowa.

Coal, a plentiful resource, continuesto be Kentucky’s energy ace in the hole.Approximately half of America’s andthe world’s electricity is generated bycoal. Burning coal is vastly cleaner withcurrent technology and methods, and itresults in cheaper power costs for Ken-tucky and elsewhere.

A climate scientist quoted in theAtlantic Monthly states that stabilizingcarbon dioxide concentration in theatmosphere would require the world toreduce its emissions to Kenya’s level; forAmerica that’s a 96 percent reduction.Nations with hundreds of millions ofpeople in poverty would have to “forgothe energy-intensive path toward wealththat the U.S. has traveled for so manyyears.” Are Americans prepared to giveup current standards of living that sup-port our modern society to live like athird-world country? �

POWER PLAYSU.S. natural gas discoveries agame changer – if developed

BY PAT FREIBERT

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Pat Freibert is a former Kentucky staterepresentative from Lexington. She canbe reached at [email protected].

Failure to use God-givennatural resources to benefitAmerican citizens is notresponsible governing.




A compilation of economic news from across KentuckyFAST LANE

ASHLAND Inc. has acquiredspecialty chemical manufac-turer International Specialty

Products Inc. for $3.2 billion. New Jersey-based ISP is a leading global supplier of specialty chemicals and per -

formance-enhancing products for a wide variety of consumer and industrial marketsincluding personal care, pharmaceuticals, beverage, home care, coatings and adhe-sives, energy, agriculture, plastics, tires and others. Through its network of manufac-turing sites, ISP produces more than 500 specialty chemicals and has more than 275scientists worldwide at research centers located in New Jersey , France, the UnitedKingdom, India and China. Last year, the company generated sales of approximately$1.6 billion.

Ashland Chairman and CEO James J. O’Brien said the transaction will enable thecompany to significantly expand its market position in “higher margin, highergrowth and less cyclical global markets like personal care and pharmaceuticals.”O’Brien said the acquisition also broadens Ashland’s presence within attractivegrowth areas like skin, hair and oral care, which are large and fast-growing segmentsof the $5 billion-plus personal care specialty ingredients market.

COVINGTON: ASHLAND INC. TO ACQUIRE INTERNATIONALSPECIALTY CHEMICAL COMPANY FOR $3.2 BILLION CASH

KENTUCKY’S public and independent collegesand universities conferred an all-time high of62,700 degrees and credentials during the

2010-11 academic year, according to a preliminar yannual degree report issued by the Council onPostsecondary Education.

The historic high number of degrees representsan 11 percent increase over last year and includesgains across all levels, especially workforce-orientedcertificates, diplomas, associates and professional-practice doctorate degrees.

The Kentucky Community and Technical Col-lege System’s associate degrees climbed 13 percentover last year and diplomas – a workforce-oriented cre-dential that requires a year or more of study – grew 32percent. The report also noted that the largest growth

in Kentucky postsecondary education over the last 10 years as been at the associate degreelevel, which has doubled over the past decade, primarily due to the expansion of appliedassociate programs at KCTCS.

Statewide, bachelor’s degrees increased 6 percent in the 2010-2011 school year ,led by strong growth in the independent sector.

Graduate education posted a one-year gain of 9.5 percent overall. While growth wasseen at all graduate degree levels, new and expanded professional-practice doctoral pro-grams at Kentucky’s public comprehensive and independent universities led to an 18 per-cent increase in the number of these advanced practice degrees in just one year.

STATE: COLLEGE DEGREES, DIPLOMAS CONFERRED JUMP11 PERCENT TO RECORD 62,700 IN ’11-’12 SCHOOL YEAR

SPECIALTY food supplier R.L.Schreiber Inc. has opened a140,000-s.f. manufacturing facility

in Lebanon, creating 83 new jobs.The Florida-based company produces

food bases, spices and other specialtyfoods under its own name as well as privatelabels and has more than 12,000 cus-tomers ranging from individual and chainrestaurants to cruise lines, cafeterias,schools, caterers and national retailers.The products are sold through a nation-wide network of independent distributors.

Lebanon Mayor Gary Crenshaw saidthe new plant not only represents new jobs,but also represents “a dramatic diversifica-tion by introducing a whole new businesssector to our economic base.”

The family-owned company hasinvested more than $7.3 million in theLebanon facility and has also beenapproved by the Kentucky EconomicDevelopment Finance Authority for taxincentives up to $2 million through theKentucky Business Investment program.The performance-based incentive allowsthe company to retain a portion of itsinvestment over a 15-year periodthrough corporate income tax creditsand wage assessments by meeting joband investment targets.

LEBANON: NEW SPECIALTYFOOD SUPPLIER BRINGS 83 JOBS TO MARION COUNTY

Submissions WelcomeTo submit news and photographs forpublication in Fast Lane, please mailinformation to: The Lane Report, 201East Main Street, 14th Floor, Lexington,KY 40507-2003 or send via e-mail to [email protected].

Color photographs are preferred, eitherin standard form or digital. For digital pho-tographs, a resolution of 300 dpi isrequired, formatted in either jpeg or tif.

The number of Kentucky college graduates in 2010-2011 represents an 11 percent increase over the 2009-2010 figures.

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R.L. Schreiber supplies spices and specialty foods to more than 12,000 customers.

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DAWSON SPRINGS� Pennyrile Forest State Resort Park has added eight new equinecampsites as part of the state’ s effort to expand adventure tourismopportunities throughout the state. The wooded sites allow camperswith horses to spend the night and explore more than 30 miles ofhorse trails in the adjacent Pennyrile State Forest. Other state parksthat feature equine campsites include Carter Caves, Dale Hollow Lakeand Taylorsville Lake.

ERLANGER� Erlanger-based Toyota Motor Engi-neering and Manufacturing NorthAmerica (TEMA) has announced that itwill boost production earlier thanexpected following the March 11 earth-quake and tsunami in Japan. Beginningthis month, overall North American pro-duction will reach approximately 70 per -cent of normal levels, up fromapproximately 30 percent in May. Theimprovement in parts availability fromJapan is the result of countermeasureactivities implemented by affected suppli-ers. Toyota will continue to evaluate pro-duction model-by-model on a monthlybasis, with a goal to return to fully normalized production by late thisyear. Models returning to 100 percent production in June are A valon,Camry, Corolla, Highlander, Matrix, Sequoia, Sienna and Venza.

FLORENCE� Turfway Park and Capstone Auction Services LLC of Campbells-burg, Ky., have joined forces to produce organic compost that will beavailable to both wholesale and retail buyers. T urfway and Capstoneofficials say the composting venture is profitable from several angles.Since muck does not decompose in the anaerobic environment of alandfill, the composting will keep thousands of cubic yards of muckout of landfills while producing a marketable finished product. Inaddition, the process both cuts expenses and provides a revenuestream for Turfway. “We were spending nearly a quarter -million dol-lars a year to have the muck removed,” said T urfway’s Director ofOperations Chip Bach. “Most of it went to mushroom farms in Penn-sylvania, but we had to pay to have it hauled out of here. Now we notonly save the cost of that transport but also have the potential to gen-erate revenue.”

GLASGOW� State officials gathered in Glasgow last month for the official ground-breaking ceremony of a new $20 million structure to house the Glas-gow State Nursing Facility, a state-owned and operated long-termcare center for individuals who need both mental health treatment andskilled nursing services. The new 100-bed, 72,000-s.f. facility will be builton the same campus as the existing structure. The facility employsapproximately 100 people.

BUSINESS BRIEFS

LESS than a month afterbringing home the topprize at the respected

Rice Business Plan Competi-tion, a team of entrepreneur-ship students from theUniversity of Louisville Col-lege of Business earned thegrand prize in an internationalcontest that is widely regardedas the “Super Bowl” of businesscompetitions.

UofL’s TNG Pharmaceuti-cals team was the top winner inthe Venture Labs Investment

Competition, beating 39 teams from schools that includedJohns Hopkins University, Norwegian University of Sci-ence and Sasin Graduate Institute in Thailand to capture thehonor and a cash prize of $135,000.

TNG’s entry featured a business plan for FlyVax, a vaccine tocontrol cattle horn flies, an agricultural pest that costs farmersmore than $1 billion a year. TNG is licensing the patented vac-cine, which was developed by scientists at Auburn University.

TNG reached the Venture Labs contest finals by winningover teams from Ohio State University, Carnegie Mellon andUniversity of Arkansas in the semifinal round. The team’swinnings now total $800,000, which includes prize money fromfirst-place finishes in contests at the University of Cincinnati,University of Nebraska and Rice University.

LOUISVILLE: UofL BIZ STUDENTS ARE TOPWINNERS IN INTERNATIONAL CONTEST

INVENSYS Rail Corp. is investing more than $3.2 millionto expand its North American headquarters facility inLouisville.

Invensys, which engineers control systems for railways andtransit authorities, plans to lease an additional 4,000 s.f. inaddition to its existing 120,000-s.f. facility in JeffersonCounty’s Eastpoint Business Center and will add 75 new engi-neering jobs as a result of the expansion.

The Kentucky Economic Development Finance Author -ity has granted preliminary approval to Invensys for taxincentives up to $1.8 million through the Kentucky BusinessInvestment program.

LOUISVILLE: INVENSYS RAIL TO EXPANDHQ, WILL ADD 75 ENGINEERING JOBS

TNG Pharmaceuticals team members(left to right) Larry Horn, Cory Long,Jenny Corbin, Terry Tate and MaxBrudner are all students in UofL’s en-trepreneurship program.

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FAST LANE

LONDON-based Kentucky Highlands InvestmentCorp. has been selected as one of only 21 participantsin the 10,000 Small Businesses CDFI Growth Collabora-

tive, a national program to help expand small business lend-ing in underserved areas.

The CDFI Growth Collaborative is a three-year programthat is part of the 10,000 Small Businesses Initiative spon-sored by The Goldman Sachs Group Inc. and the OpportunityFinance Network, a network of community developmentfinancial institutions. The Growth Collaborative program willprovide participating community development financialinstitutions (CDFI) with a unique “tuition paid” learningprogram to help CDFI loan funds address the needs of smallbusinesses in underserved communities across the countr y.

CDFI loan funds participating in the program will have accessto a number of learning opportunities, including informationexchanges, meetings, online learning, and networking opportu-nities and one-on-one or small-group consulting services.

“The CDFI Growth Collaborative will help CDFIs developboth the capacity and knowledge to grow their small businesslending portfolio and stimulate the growth of more small busi-nesses in their communities,” said Alicia Glen, managing direc-tor and head of the Urban Investment Group at Goldman Sachs.

LONDON: KHIC EXPANDS LENDING TO U.S.BUSINESSES IN UNDERSERVED MARKETS

HIGHLAND HEIGHTS� Omnicare Inc., a Highland Heights pharma-ceutical company, has sold its Tidewater GroupPurchasing subsidiary to New Jersey-based Man-aged Health Care for an undisclosed amount.“The divestiture of our group purchasing organ-ization is consistent with our strategy to focusattention and reallocate resources to those areasof our business that align most closely with our core strengths and growthobjectives,” said Omnicare CEO John Figueroa.

HYDEN� The Frontier School of Midwifery and Family Nursing, which hasone of the largest nurse-midwifery education programs in the country,plans to change its name to Frontier Nursing University to betterreflect its education offerings. Since being established in 1939, the insti-tution now has close to 1,100 students from across the United States aswell as several foreign countries enrolled in either the Doctor of Nurs-ing Practice or Master of Science in Nursing degree programs. Thename change will take effect July 1.

LEXINGTON� Global Environmental Services and Digital Controls Corp. – Man-aged Print Group have merged to form a new division under the GESflagship that is operating as GES Print Solutions. The combined opera -tion will continue to focus on IT services and electronics recycling.

� LBX Co., maker ofLink-Belt excavators,has established a sub-

sidiary company, LBX do Brasil, based in Sao Paulo, Brazil. The expan-sion into the Brazilian marketplace is part of the company’ s long-termstrategy of broad domestic and international growth in the construction,demolition, scrap/material handling and forestry equipment sectors. LBX’sfuture plans for Brazil include establishing a parts distribution center anddemonstration grounds. The headquarters’ offices will be staffed with salesand product support personnel, who will work with dealers to provide pre-and post-sale support, including financing solutions.

� American Founders Bank hasjoined with the former LexingtonInvestment Mortgage Co. to createAFB Mortgage. AFB President andCEO John T. Taylor said that as a full-service bank, AFB has always offered mortgage ser vices, but said part-nering with LIMC allows the company to better serve its customers. In2010, LIMC originated approximately $20 million in mortgagesthrough Kentucky and Florida. AFB Mortgage will work out of AFBsseven locations throughout Lexington and greater Louisville.

LOUISVILLE� Kentucky Derby 137 was one for therecord books as 164,858 race fans packedChurchill Downs Racetrack, breakingthe former attendance record of 163,628set in 1974 during the 100th anniversary

of the “Run for the Roses.” W agering on the full Kentucky Derby Dayrace card was $23.4 million, an increase of 9 percent over 2010’ s on-track wagering total of $21.5 million. On-track wagering on the Derbyrace was $11.5 million, an increase of 4.2 percent over the $11.1 millionwagered one year earlier. All-sources wagering on the Kentucky Derbycard was $165.2 million, the third-highest in Derby histor y and anincrease of 1.5 percent over the prior year’s $162.7 million.

� Louisville Mayor Greg Fischer has unveiled a plan that would reopenKentucky Kingdom by issuing $17.5 million in city bonds backed byparking fees, a third-party investor and taxes collected from the jobs cre-ated at the amusement park. The plan would allow the park to open in2012. “It’s always been my goal to reopen Kentucky Kingdom becauseit’s a valuable tourist attraction and it will create jobs,” Fischer said, “butit needs to be a deal that is good for the city.” Fisher said the latest pro-posal involves much less risk to taxpayers than previous deals proposedby Kentucky Kingdom investors, while at the same time providing anopportunity to re-open the park.

BUSINESS BRIEFS

THE Schmidt Museum ofCoca-Cola Memorabiliahas announced that it is

divesting its extensive collectionof Coca-Cola material that datesback to the 1800s and will closethe doors of the museum.

The collection, which Billand Jan Schmidt started in1972, is considered to be oneof the largest private collec-tions of such material in theworld. The Schmidt’s son,Larry, who now serves as presi-dent of the museum, estimatesthe value of the collection tobe approximately $10 million.

“This collection is the best of the best,” said Allan Petretti,author of “Petretti’s Coca-Cola Collectibles Price Guide.”“The depth and breadth of their collection is beyond incred-ible. They have the rarest of rare pieces. They have thingsfrom every era and from every category – clocks, posters,toys, trucks, bottles. You name it, and they have it.”

Jan Schmidt said that while the family is proud of the col-lection, it “has become inert and the way to keep it alive is topass it on – to give others the opportunity to own and show-case the items they want.”

The Schmidt family plans to sell the items of most interestat a series of live auctions; the remainder will be sold online.The family is establishing a foundation so that the vast major-ity of funds from sales will be used for benevolent purposes.

Area officials say the loss of the museum will be a blow tothe area’s tourism trade. Sherry Murphy, executive directorof the Elizabethtown Tourism and Convention Bureau, toldThe (Elizabethtown) News-Enterprise that the museum drewmore than 15,000 visitors in 2010.

ELIZABETHTOWN: C0CA-COLA MUSEUM TOCLOSE, MEMORABILIA TO BE AUCTIONED

This Coca-Cola serving tray, whichdates back to 1897, is one of onlytwo known to be in existence and isvalued at approximately $30,000.

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FAST LANE

BOWLING Green tobacco manufacturer Common-wealth Brands Inc. has canceled plans to relocate itsheadquarters to the Nashville area and will instead inte-

grate operations with Florida-based sister company AltadisUSA and move to Fort Lauderdale.

In announcing the merged operations, the companies –which are owned by London-based Imperial TobaccoGroup – said the integration would provide greater sales cov-erage and more comprehensive services. The combinedportfolio will incorporate cigarettes, fine-cut tobacco, mass-market cigars, pipe, papers and tubes. The premium cigardivision of Altadis USA will remain as a separate entity.

Commonwealth officials said the integration of the two com-panies’ sales and marketing functions is expected to be com-plete by the end of the year; the transition of all otherdepartments to Fort Lauderdale will take approximately a year.

Commonwealth Brands announced late last year that ithad outgrown its Bowling Green facility and would be mov-ing the company’s headquarters and some 100 jobs toGoodlettsville, Tenn., by mid-2011. The decision to cancelthe move caught Goodlettsville officials by surprise.

“It’s a blow when we lose several dozens of high-payingjobs in a community that ever yone was looking forward togetting going,” Goodlettsville Economic and CommunityDevelopment Director Tom Tucker told The Nashville Busi-ness Journal. “Corporate offices feed the retail machine.”

BOWLING GREEN: MERGER MODIFIES KYTOBACCO MAKER’S RELOCATION PLANS

LOUISVILLE� Advanced Cancer Therapeutics LLC, a privately held Louisvillecompany that focuses on bringing new anti-cancer therapies to market,has signed an agreement to acquire rights from Antisoma plc for ananti-cancer drug that has shown promising results against a range ofsolid and blood cancer lines. ACT President and CEO Randall Riggssaid the company intends to work closely with Dr . Don Miller at theBrown Cancer Center in Louisville to evaluate new potential indicationsor uses for ACT-GRO-777, including neuroblastoma in children.

� Ventas Inc., a Chicago healthcare real estate investment trust com-pany, has acquired 118 senior housing communities from Louisville-based Atria Senior Living Group for $3.1 billion. Atria, thefourth-largest operator of assisted living properties in the United Stateswith more than 120 communities in 27 states, will continue to managethe acquired properties. Ventas Chairman and CEO Debra Cafaro saidthe acquisition establishes Ventas, which has more than 700 assets in 44states and two Canadian provinces, as the largest owner of senior livingcommunities in the country.

� Ford Motor Co.’s reinvestment in itsLouisville Assembly Plant was named oneof the Top Ten Deals of 2010 by Site Selec-tion magazine, a leading economic devel-opment publication. The magazinenoted that the Louisville project, whichrepresents an investment of more than$600 million and creates 1,800 new jobs,stands out for its scale of capital invest-ment and job creation, creativity in nego-

tiations and incentives, and regional economic impact. In addition,Greater Louisville Inc. – the Metro Chamber of Commerce received anhonorable mention in the magazine as one of the top-performing eco-nomic development agencies in the country.

� Louisville-based insurance broker NeaceLukens has launched a new energy consultingservice as part of its risk management division,CORE Solutions Property Services. The energyservice program was established as part of newbusiness relationships forged with EcotechRenewable Engineering, a Cincinnati-based renewable energy developerand consultant and Eagle Energy LLC, a Cincinnati-based alternative elec-tricity supplier and energy consultant. Through the new ser vice, CORESolutions will work directly with clients to review their energy expenses andusage to optimize consumption and reduce overall energy spending.

� Louisville-based tour and event company Mint Julep Tours haslaunched a new product to meet consumer demand in the growing expe-riential tourism segment. The Roll Out the Barrel tour lets participantstravel to one of Kentucky’s premier distilleries to sample and resampleunfiltered, barrel-strength bourbon. With a professional taster to help iden-tify acute notes and distinct flavors, guests determine their favorite andthen customize a bottle to create their own one-of-a-kind bourbon.

� Kindred Healthcare has beenapproved for up to $2 million for up to 10years through the Kentucky BusinessIncentives program. The incentives aretied to the company’s plans to invest

approximately $520,000 to expand its Louisville headquarters and add100 new positions. Kindred’s expansion plans are a result of its recentacquisition of St. Louis-based RehabCare Group Inc.

� The cost of the proposed $4 billion-plus Ohio River Bridges Projectcould be reduced by at least $1.2 billion with changes recommended earlierthis year by Kentucky Gov. Steve Beshear, Indiana Gov. Mitch Daniels andLouisville Mayor Greg Fischer, an in-depth analysis by the Bi-State Manage-ment Team has concluded. The largest savings would result from rebuildingthe downtown Kennedy Interchange in place rather than moving it to thesouth ($800 million less); eliminating flyover ramps and making otherdesign changes on the Indiana interstate approach to the newly expanded I-65 bridges ($215 million less); and reducing the East Endbridge, roadwayand tunnel from six to four lanes ($174 million less).

BUSINESS BRIEFS

ALexington technologycompany has signed amulti-year agreement with

Central Baptist Hospital tosupply 59 bedside terminals thatprovide patients with Internetaccess and the ability to stay con-nected to family and friendswhile in the hospital.

ConnectedPatients LLC’sConnectMe terminals areinstalled either bedside ormounted on an articulating arm,offering accessibility to patientsand families as well as clinicians.The terminal system has an LCDtouch-screen that features large virtual buttons, making iteasy for patients to access the Internet to check email, con-nect with social media sites like Facebook and Twitter,watch movies and listen to music.

Karen S. Hill, vice president/nurse executive at CentralBaptist Hospital, said the hospital has already seen the posi-tive impact the devices have made for patients.

“Our maternity patients love the ConnectMe system anduse the monitor to communicate with families and friendsand to relax. This capability has differentiated Central Bap-tist in supporting the connectivity of our patients,” Hill said.

The ConnectMe device also offers a portal for electronicmedical records and provides physicians with a tool forpatient education.

The terminals are currently located in Central Baptist’ soncology and maternity units, with more units planned overthe course of the contract.

LEXINGTON: BEDSIDE COMPUTERS HELPHOSPITAL PATIENTS STAY CONNECTED

Bedside touch-screen terminals in-stalled at Central Baptist Hospitalin Lexington let patients stay intouch with family and friends dur-ing their hospital stay.

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FAST LANE

EASTERN KentuckyUniversity and Madi-son County Schools

have joined forces tobecome the first localschool district and four-year university in the com-monwealth to offer a“Middle College” programdesigned to help highschool juniors and seniorswho are academicallycapable but at risk of drop-ping out of school.

The Middle College, aconcept that has gained increasing national attention inrecent years, allows high school juniors and seniors to com-plete their high school education while concurrently receiv-ing direct access to college courses. The Middle College willbe located on EKU’s Richmond campus.

Education experts say that many high school students failto reach their full potential because of various barriers intheir lives and frequently end up dropping out.

Sixty high school juniors in the Madison County School Dis-trict will participate in the Middle College in 2011-12. In eachsubsequent year, 60 juniors and 60 seniors will participate. Onceaccepted into the Middle College, participants will be enrolledin both high school and EKU classes. Upon high school gradua-tion, the participants will have earned not only a high schooldiploma but also a minimum of 18 college credit hours.

Madison County Schools will bear the costs for staffingand equipping the Middle College and will also pay tuitionand fees for the students enrolled in EKU college classes.The university will provide classrooms, limited office space,services and other forms of support.

RICHMOND: EKU, MADISON LAUNCH KY’SPROTOTYPE ‘MIDDLE COLLEGE’ PROGRAM

MEGGITT Aircraft Braking Systems has announcedplans to open a second plant in Danville, a projectthat represents an investment of nearly $7.3 million.

The 156,000-s.f. facility, which previously housed 3B Inc.,will bring 63 new jobs to the Boyle County community.

Headquartered in the United Kingdom, Meggitt pro-vides aircraft braking systems to a diverse group of cus-tomers, ranging from airline operators and constructors toprivate aircraft owners, charter operators, government andmilitary operators, and distributors and repair stations.

The company already operates a carbon processes facil-ity in Danville that employs 70 workers. The new operation,which is a result of consolidation from an out-of-state facil-ity, will conduct final assembly and worldwide distributionof aircraft wheels, brakes and components.

“When a company like Meggitt chooses you a secondtime, it is a good indication that you are doing somethingright,” said Gov. Steve Beshear.

“Twice is nice,” Jody Lassiter, president and chief execu-tive officer of the Danville-Boyle County Economic Develop-ment Partnership, told The (Danville) Advocate-Messenger. “Itis a compelling argument to share with our existing busi-nesses, site-selection professionals and outside companiesthat a global firm decided to locate here again.”

DANVILLE: MEGGITT TO OPEN SECONDAIRCRAFT PARTS PLANT IN DANVILLE

LOUISVILLE� A block of buildings in the Louisville’s historic Whiskey Row district thatwas once slated for demolition will be saved and renovated thanks to anagreement between the city and local developers and preservation leaders.Alan DeLisle, head of the Downtown Development Corp., said theagreement “not only will enhance the vitality of downtown, but it will alsomake a significant contribution to economic growth and job creation.”

� Louisville-based Republic Bank & TrustCo. has announced plans to sell its bankingcenter in Bowling Green to Citizens FirstBank Inc. Bowling Green-based Citizens willassume all deposits, fixed assets and approxi-

mately half of the outstanding loans of Republic’s Bowling Green bank-ing center. The transaction covers approximately $35 million in depositsand $14.5 million in loans.

MURRAY� Pella Corp. has announced plans toexpand its operations in Murray, whereit produces vinyl window and doors.Plant Manager Doug Dieleman saidthe expansion in Murray was tied toincreasing demand for the company’senergy-efficient Pella 350 Series ofvinyl window and doors. The expan-sion will add 75 new jobs to the plant’scurrent staff of approximately 630.

NEWPORT� Two information technology companies announced plans to locateheadquarters in Newport. Korea-based Arcron Systems specializes inmedical information technology such as hospital information systems,electronic medical records, order communication systems, and enter -prise resource planning systems for hospitals of all sizes. MeaningfulUse Technologies also serves the healthcare sector, specializing inenterprise IT experience and providing software specification, deploy-ment and hosting services to hospitals. The companies are investing atotal of more than $1 million in Northern Kentucky and expect to cre-ate 20 jobs.

SOMERSET� Modern Distributors, a full-line convenience store distributor, isexpanding its operations in Somerset with the addition of a 12,500-s.f.cooler-freezer facility. Modern Distributors began its Somerset opera -tion in 1965 as a small, family-owned vending company and has growninto an organization designed to ser ve the wholesale grocery, coffee/beverage and foodservice needs of convenience stores. The companycurrently has approximately 1,300 vending, coffee and wholesale cus-tomers and employs 179 people between its Somerset headquarters andsatellite office in Louisville. The expansion, which is expected to becomplete by mid-July, will add 20 new jobs.

� UGN Inc., an Illinois-based company that produces acoustic solutionsfor the automotive industry, is investing nearly $5 million to expand itsmanufacturing plant in Somerset. The Somerset plant is one of six UGNfacilities and employs more than 170 workers. The expansion will add50 new jobs.

SOUTHEAST KENTUCKY� Six southeastern Kentucky counties have teamed to form the South-east Kentucky Regional Chamber of Commerce. Participating coun-ties include Lawrence, Magoffin, Martin, Pike, Letcher and Knott.

STATE� The state has announced plans to invest more than $3.1 million in2011 for improvements to short line railroads in 12 Kentucky counties.Improvements include replacement or rehabilitation of rails, rail bedsand railroad crossings. Recipients of the grants include R.J. CormanRailroad-Central Kentucky Line; Paducah & Louisville Railroad;TennKen Railroad; Louisville & Indiana Railroad; TransKentuckyTransportation Railroad; and the Kentucky Railway Museum. (Themuseum also stores railroad rolling stock and is therefore a part of theshort line system.)

BUSINESS BRIEFS

EKU and Madison County are collaborat-ing on a new “Middle College” programthat targets students who are at risk ofdropping out of school.

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THE LANE REPORT • KYBIZ.COM JUNE 2011 13

THE KentuckyTourism Devel-opment Finance

Authority has grantedfinal approval toplans by ArkEncounter LCC for a$172.5 million Noah’sArk theme park inGrant County.

The maximumincentive availablewould be $43.125 mil-lion over 10 years. Theincentives come fromthe sales tax generatedby the project.

The authority heard a report from Hunden Strategic Part-ners that showed the Ark Encounter project met the criteria ofthe Kentucky Tourism Development Act, which includesrequirements that the project attract at least 25 percent of visi-tors from outside the state by the fourth year of operation andthat it has a positive impact on the Kentucky economy.

The report noted that the net fiscal impact on the state isexpected to be between $64.6 million and $119 million over 10years in sales and income tax above and beyond the incentive,depending upon several variables on the projected attendance.

GRANT COUNTY: STATE OK’S $43M IN TAXINCENTIVES FOR NOAH’S ARK PROJECT

STATE� Tourism-related busi-ness in Kentucky broughtin $11.3 billion in 2010, witheight of nine tourismregions showing gains,according to figures recentlyreleased by the state. Thefigure represents a 4.8 per-cent increase over 2009. Thefigures, part of an annualsurvey, also showed that tourism was responsible for 169,258 jobs inKentucky in 2010 – an increase of 2,657 from the previous year . Thejobs generated more than $2.5 billion in wages for Kentucky workers, anincrease of $118 million from the previous year . Tourism generated$1.188 billion in tax revenues for local and state governments in 2010,an increase from $1.133 billion in 2009.

� Nine Lexington-area colleges and universities have united to formthe Consortium of Higher Education in Central Kentucky (CHECK)with the goal of elevating awareness of educational opportunities foradults in Central Kentucky by promoting and organizing educationevents. “We want to provide a valuable resource for businesses to con-nect with the educational community as the current economic climatehas shown corporations the benefits of having a well-educated work-force,” said CHECK President Mustafa Mahdi. “When companies makethe investment in educating and training their employees, loyalty,higher morale, and quality performance are the results.” CHECK mem-bers include Asbury University, Bluegrass Community & Technical Col-lege, Eastern Kentucky University, Indiana Wesleyan University, ITTTechnical Institute, Midway College, Morehead University, Strayer Uni-versity, and University of Phoenix.

BUSINESS BRIEFS

The Ark Encounter theme park will be built on800 acres of land in Grant County, just off I-75.

Ark Encounter photo

Kentucky Dept. of Tourism

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INDIANA� BioCritica, a newly formed biotechnology company, plans to establishits headquarters in central Indiana, creating up to 70 new jobs by 2015.Recently founded by Eli Lilly and Co. and a private investor group, Bio-Critica will develop, market and commercialize products for the critical-care hospital market. The company will license Lilly’s FDA-approved drugfor the treatment of severe sepsis, a poisoning of the blood that affectshundreds of thousands of patients each year, many resulting in death.

� Internet marketing company Slingshot SEO is expanding its opera-tions in Indianapolis and plans to add 114 new jobs by 2013. “Operatingin Indiana is a significant competitive advantage for technology com-panies, especially those within the measured marketing space,” saidKevin Bailey, president and co-founder of Slingshot SEO. “Indiana’ stech business environment is world-class, with a skilled workforce, sup-portive business leaders, and growth-friendly policies. There’ s no bet-ter place to grow a business like Slingshot SEO.”

OHIO� AES Corp., a Fortune 500 global power company, has announced plansto acquire DPL Inc., a regional energy company headquartered in Day-ton, for $4.7 billion. AES President and CEO Paul Hanrahan said the com-pany is concentrating its growth in a few key markets, including the U.S.utility sector, and will utilize the DPL acquisition to build on its nearby util-ity business at Indianapolis Power & Light Co. DPL, which serves morethan 500,000 customers in west-central Ohio, will maintain its name andremain headquartered in Dayton for at least two years after the merger.

TENNESSEE� Valeo is investing up to $5.4million to renovate a facility inSmyrna, Tenn., where it plans tolocate a new automotive partsmanufacturing facility. The plantwill produce front-end modulesfor Nissan, whose North Ameri -can headquarters is based innearby Franklin, Tenn. The company expects to employ 63 workerswithin the first year of occupancy.

� Daiei America Inc., a Nissan supplier, has selected a Mur freesboro,Tenn., site for its first U.S. manufacturing plant. The company plans to hireapproximately 55 employees and expects to begin operations this summer.

� CSS Industries plans to close its Cleo gift wrap plant in Memphis bythe end of year, eliminating approximately 650 jobs. The closing is part ofthe company’s plan to move all gift wrap products to foreign suppliers.

� Windham Professionals is building a new regional headquartersfacility in Hendersonville, Tenn., where it plans to add 100 new jobs toits existing 200-member staff. Windham specializes in account collec-tions for a variety of industry sectors.

WEST VIRGINIA� Quad/Graphics Inc. isinvesting more than $15 mil-lion to upgrade press equip-

ment and binder models in its Martinsburg book-manufacturingplant. The upgrade is part of the Wisconsin-based company’s plans tomove its mass-market paperback operations from its plant in Buffalo,N.Y., which is being closed, and consolidate it with Martinsburg’s exist-ing trade-book services. Quad/Graphics produces magazines, cata-logs, direct mail products, books, directories and specialty products at60 print-production locations in the United States, Canada, LatinAmerica and Europe.

� Intraocular lens manufacturer Alcon Research, Ltd. has completedthe expansion of its $40 million manufacturing facility in the Hunting-ton Area Development Center Business Park. The new 70,000-s.f. facilityis used to make “deliver y systems,” or small devices used to place thelens into the eye during surgery. When fully operational, the facility isexpected to employ 300 people.

BUSINESS BRIEFS


GE Aviation hasbegun construc-tion on its new

$51 million ElectricalPower IntegratedSystems Researchand DevelopmentCenter, which is beingbuilt on eight acres onthe University of Day-ton campus.

“Without a doubt,it’s extraordinary for a Fortune 100 corporation to build amultimillion-dollar research facility on a college campus intoday’s economic climate,” said Daniel J. Curran, presidentof the University of Dayton. “Our researchers will work sideby side with GE scientists and engineers to develop electri-cal power systems and technologies. The applications arenumerous — from next-generation power systems for air -craft to longer-range electric cars. Even smarter utilitypower grids for more efficient delivery of electricity.”

The center’s close proximity to Wright-Patterson AirForce Base and the University of Dayton Research Insti-tute is important in order to provide significant new sup-port to the Air Force Research Labs and the Universityof Dayton. The university’s researchers will work with GE todevelop and deploy computer modeling, simulation andanalysis of advanced, dynamic electric power systems designand controls.

The center will be directed at several markets, includingend-to-end electrical power starter/generation, conversion,distribution, and load technologies for civil and militar yaerospace applications.

The 120,000-s.f. facility is expected to be complete by thethird quarter of 2012 and operational by the end of 2012.

OHIO: GE AVIATION IS INVESTING $51M INR&D CENTER AT UNIVERSITY OF DAYTON

GERMANY-based WackerChemie AG has officiallybegun construction on a

polysilicon-production plant inCleveland, Tenn., that will createapproximately 650 new jobs.

The $1.5 billion plant – whichrepresents the largest investmentin the history of the companyand its first facility outside of Ger-many – will produce hyperpurepolysilicon, a component used tomake high-efficiency solar cells.

The facility, which will sit on 550 acres, is expected to becomplete by 2013. Once operational, it will have an annualcapacity of 15,000 metric tons.

Wacker has manufactured polysilicon for more than 50years and is one of the world’ s largest producers of hyper-pure polycrystalline silicon.

The Wacker facility will be the second polysilicon plant inTennessee: Hemlock Semi-Conductor is currently in theprocess of building a $1.2 billion plant near Clarksville thatwill provide polysilicon for solar panels.

TENNESSEE: CONSTRUCTION BEGINS ON$1.5B WACKER CHEMIE AG SOLAR PLANT

Business news from Indiana, Ohio, Tennessee and West VirginiaINTERSTATE LANE

Polysilicon is used to produce solar panels and semiconductors.

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GE Aviation’s new R&D center on the Universityof Dayton campus is expected to operational by theend of 2012.

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A sampling of economic development dataKENTUCKY INTELLIGENCER®





ACCOUNTING� Doug Wise has joined Blue & Co. as direc-tor of the company’s Louisville office.

� Jason O. Strange has joined Smith & Co.CPAs of Bardstown as a partner in the firm.

ADVERTISING/MARKETING� Lexington-based CornettIntegrated Marketing Solu-tions has hired Trina Reisertas an account planner for itsoperations in Louisville.

� Jessica Biddulph hasbeen promoted to vice presi-dent - research division forthe Lexington agency of Preston-Osborne.

BANKING/FINANCE� First Federal Savings Bank hasnamed Norma Elliott as districtmanager in charge of the Eliza-bethtown-based company’sretail operations in MeadeCounty and Radcliff/Fort Knox,and in Harrison and Floydcounties in Indiana.

� David Turner and Kathy Wilson have beenappointed to the position of senior vice presi-dent, wealth management group of CentralBank & Trust in Lexington.

� Pamela D. Goetting hasjoined Burlington-basedHeritage Bank as senior vicepresident.

� Linda Rumpke has beennamed president and CEO ofBardstown-based Town &Country Bank and Trust Co.

� Alex Harper has joined Shelbyville-basedCitizens Union Bank as senior vice president-commercial and industrial lending.

� Fifth Third Bank Kentuckyhas named Assistant VicePresident Peter Nesmith asan area sales manager for thecompany's mortgage team inthe Louisville market.

� Jaleigh White has joinedLouisville-based investmentfirm Hilliard Lyons as directorof high-net-worth strategies anda member of the executivemanagement team.

� Jeffrey T. Blair has beenpromoted to vice president inthe Elizabethtown office of Wil-son & Muir Bank & Trust Co.

BUSINESS DEVELOPMENT� Chris Wooldridge has been promoted todistrict director of the Kentucky Small Busi-ness Development Center, part of the MurrayState University College of Business.

EDUCATION� Avo Kiviranna has joined Midway Collegeas the equine studies division chair.

� Centre College has named Michael P.Strysick as director of communications.

� Loup Langton has beennamed director of WesternKentucky University’s Schoolof Journalism and Broadcast-ing and the Center for 21stCentury Media.

� Dr. Sara Zeigler has beennamed dean of universityprograms at Eastern Ken-tucky University.

� Brian Evans has beennamed vice president fordiversity and inclusion atGeorgetown College.

ENGINEERING� Edmundo J. Laporte hasbeen named vice president and director ofmining services for ECSI LLC, a Lexington-based engineering firm.

GOVERNMENT� Stephanie Appel hasbeen promoted to directorof personnel for the Ken-tucky Justice and PublicSafety Cabinet.

� Terry Sebastian has beennamed deputy communica-tions director for Gov. SteveBeshear.

� Jill Morse Midkiff has joined the KentuckyCabinet for Health and Family Services asexecutive director of communications andadministrative review.

� Patrick Hughes has joined Kentucky’sOffice of the Attorney General as chief deputyattorney general.

HEALTHCARE� Randy Green has beennamed executive director ofthe Ephraim McDowellHealth Care Foundation.

� Dr. Sharmila Makhija hasbeen named as the new chair-man of the Department ofObstetrics, Gynecology andWomen’s Health at the Uni-versity of Louisville School ofMedicine.

� Mary Kate P oling hasbeen named president andchief executive officer ofBrooklawn Child & FamilyServices in Louisville.

INSURANCE� Danny Patterson has joined Eugene Wilson& Company Insurance in Bardstown as a part-ner in the company.

LEGAL� Barry A. Hines and John W. Gragg havejoined the Louisville office of Frost BrownTodd LLC as a members of the firm.

� Landra Blackwell hasjoined Weber & Rose as amember of the Louisville lawfirm.

MANUFACTURING� Stephen Creech hasjoined Hercules Manufactur-ing Co. in Henderson asoperations manager.

PHARMACEUTICAL� Fabrice Ergros has been named chief oper-ating officer for Xanodyne PharmaceuticalsInc., a Newport-based specialty pharmaceuti -cal company.

UTILITIES� KentuckyA m e r i c a nWater Co. hasnamed DougBrock as man-ager of fieldo p e r a t i o n s .Mike Molerhas beennamed manager of production.

TOURISM� The Lexington Convention and VisitorsBureau has named Jim Browder as its newpresident. Browder comes to the position fromGreenville, S.C. and succeeds David Lord,who retired in March.

OTHER� Keith L. Myers has been named senior vicepresident of financial services for PaymentAlliance International, a Louisville provider ofpayment processing solutions.

� Bret A. Brown has joinedCharah Inc., a Louisville-basedash management provider forthe coal-fired electric utility, asvice president of utility rela-tions for the company’s westernregion. Brown will be based inSt. Louis.

� Holly Dukes Prather has been named vicepresident of marketing for LeadershipLouisville Center.

� Thomas Wobbe has joinedThe Underwriters Group inLouisville as director of majoraccounts.

� LBX Co., a Lexington-based company that pro-duces Link-Belt excavators,scrap/material handlers, and demolition andforestry equipment, has announced the fol-lowing promotions: Eric Sauvage – execu-tive vice president; Mike Davis – vicepresident of marketing and sales; and RodBoyer – vice president of customer support.

Trina Reisert

Randy Green

Dr. SharmilaMakhija

Landra Blackwell

Bret A. Brown

Thomas Wobbe

Norma Elliott

Brian Evans

StephanieAppel

New leadership for Kentucky businessesCORPORATE MOVES

DEPARTURES� Edward de Rosset, president of UnionCollege, has announced plans to retireeffective June 30, 2013.

Mike MolerDoug Brock

Jaleigh White

Loup Langton

Pamela D.Goetting

Peter Nesmith


FIRST FEDERAL BANK� Lexington-based First Fed-eral Bank has appointed Ken-ton Ball to the board ofdirectors. Ball is an attorneywith the Rigsby Law Group ofLexington.

GREATER LOUISVILLEHISPANIC LATINO BUSINESS COUNCIL� The Greater Louisville Hispanic LatinoBusiness Council has announced its 2011board of directors. The executive committeeincludes: Chair - Jorge Lanz, Jacobi Toombs& Lanz Inc.; Chair Elect - Francisco Abril,The Hartford; Immediate Past Chair - Mari-lyn Cordova-Winchell, Cordova FlooringContractors; Secretary - Lee Webb, StollKeenon Ogden PLLC; Treasurer - AlejandraRico, National City Bank; Marketing Chair -Ricardo “Rico” Nieto, Creative Alliance; Pro-gramming Chair - Ingrid Bolton, IngridDesign LLC; Membership Chair - JaimeGonzalez, UPS; Economic DevelopmentChair - Daniel Lira, Contracting Solutions,LLC -Who’s Who in Latino Louisville; Educa-tion and Training Chair - Tom Masterson,T.E.M. Electric Co.; At-Large GLI Member -Eileen Pickett, Greater Louisville Inc.; At-Large AABA Member - Verna Goatley ,African-American Business Alliance/Louisville Metro Government EconomicDevelopment Department; At-Large TSMSDCMember - Sonya E. Brown, Tri-State Minor-ity Supplier Development Council. Boardmembers include: Jose Neil Donis, Al Diaen America Spanish Newspaper; LaineLopez, University of Louisville; CarmenMontañez, Kindred Healthcare; EdgardoMansilla, Americana Community Center;Ellie Kerstetter, Ellie Kerstetter PSC; ChrisDitz, Citizens Union Bank; Tim Finley, Nor-ton Healthcare; Rick Ary, RFX Technologies;Catalina Perez, Linak; Hank Enright, PapaJohn’s International Inc.; Alberto Valois,Humana Inc.; Mario Lomazzi , MarioLomazzi, CPA; Xavier Santiago, BrandonWarren State Farm; Nick Maxim, PNC BankBusiness Banking; Anani LeFevre, SYSCOLouisville Inc.; Monica Becht , SYSCOLouisville Inc.; Tino Soto-Cuevas, Wal-MartStores Inc.; Martin Laffoon, Wal-Mart StoresInc.; Fernando Messier, Messier & Associ-ates Inc.; and Elisa Bruce, Fifth Third Bank.

KENTUCKY HOSPITAL ASSOCIATION� Mark J. Neff has been named as the 2011-2012 chair of the Kentucky Hospital Associa-tion board of trustees. Neff is president andchief executive officer of St. Claire RegionalMedical Center in Morehead.

KENTUCKY RETIREMENT SYSTEMS� Jennifer L. Elliott hasbeen elected chair of the Ken-tucky Retirement Systemsboard of trustees. Elliott is apartner in the legal firm ofStites & Harbison.

PRICHARD COMMITTEE FOR ACADEMIC EXCELLENCE� Hilma Prather has been named as the newchair of the Prichard Committee for Aca-

demic Excellence. Prather is a retired princi-pal from the Somerset Independent SchoolSystem, is a member of the Kentucky Author-ity for Educational Television and has servedas a member of the Kentucky Board of Edu-cation, the advisory board of Somerset Com-munity and Technical College and theCouncil of Postsecondary Education.

PAPA JOHN’S INTERNATIONAL INC.� W. Kent Taylor has been appointed to theboard of directors of Louisville-based Papa

Johns International Inc. Taylor is the founderof Texas Roadhouse, a full-service casual din-ing restaurant chain.

MERITAS� John Treitz has been electedto the board of directors ofMeritas, an internationalalliance of business law firms.Treitz is an attorney in theLouisville office of StollKeenon Ogden.

New leadership for Kentucky organizationsON THE BOARDS

Kenton Ball

Jennifer Elliott

John Treitz



Kentucky’s leaders express their opinionsLANE ONE-ON-ONE

Ed Lane: The predecessor companies toHilliard Lyons were Quigley and Lyons,founded in 1854, and J.J.B. Hilliar d &Sons (formerly A.D. Hunt & Co.),founded in 1872. The two Louisvillefirms merged in 1965 and became J.J.B.Hilliard, W.L. Lyons.

Hilliard Lyons was acquired by PNCAdvisors in 1998 for a reported $285million. Hilliard Lyons was then operat-ing 84 offices in 12 Midwestern andSoutheastern states.

In 2008, PNC Financial Ser vicesGroup Inc. sold J.J.B. Hilliard, W.L. LyonsInc. to Houchens Industries Inc. of Bowl-ing Green, Ky. Houchens is the largestemployee-owned company in the UnitedStates. It’s been about three years sincethe acquisition by Houchens. Many of thetop managers and employees of Hilliar dLyons are now the firm’s owner-investors.What is the new Hilliard Lyons’ game planfor the future?James Allen: I’ll first state that HilliardLyons’ relationship with Houchens hasreally been a terrific one for both organi-zations. The fact that Hilliard Lyons isindependent again has just made a signif-icant difference and boosted our firm’sbehavior, enthusiasm and energy levels.Houchens’ ownership structure is one

that has no involvement in day-to-daymanagement in the companies in whichthey have any level of investment.Houchens’ goal is to create an ownershipstructure where the best interests of thecompany and management are aligned.

Currently, Houchens owns abouttwo-thirds of the equity and Hilliardemployees own roughly one-third. Ahandful of “friends of the company” areoutside investors who own a ver y smallshare of the firm, but the lion’s share ofHilliard’s ownership is our employees.Hilliard Lyons can offer ownership toprospective employees, as we do to cur-rent employees.

The goal of our company is to takeadvantage of being an independent firmin control of its destiny. Independencemakes a difference in how we are per -ceived in the private-client wealth-man-agement business.

Being a very strong provider of pri-vate-client wealth-management andplanning services, Hilliard Lyons is lessabout products and more about advice.That’s really the business model onwhich we are building as an organiza-tion. Hilliard Lyons acquired B Catalyst,a small mergers and acquisition bou-tique, based here in Louisville. We think

that is a complementary fit with ouroverall business model. Many of ourclients are small-business owners, andsuccession planning and advisory adviceis a needed service. Hilliard Lyons canprovide service and advice whether it’srepresenting owners in the sale of theirbusiness, or helping them in the valua-tion of their business.

Another area is insurance. As a com-prehensive wealth-planning organiza-tion, we strongly feel insurance is part ofthe equation. Does that mean everybodyneeds insurance? Not necessarily, butinsurance is an important piece of thewealth management puzzle.

EL: The number of Hilliar d Lyonsoffices and licensed employees declinedslightly during the period between itssale to PNC in 1998 and its sale toHouchens in 2008. What is the outlookfor Hilliard Lyons’ future growth?JA: Those numbers do not reflect thefact that Hilliard Lyons operated someoffices within the PNC footprint. For aperiod of time, the Hilliard brand wasactually in Pennsylvania, Delaware andNew Jersey. For branding reasons in thatpart of the country, the PNC brand wasbetter known, and we ended up givingthose offices back to PNC.

Hilliard Lyons is looking to add loca-tions within its primary service area tofill in a market void and take advantageof economies of scale. A wonderfulexample of that would be Lexington.Our firm had a ver y successful recruit-ing effort in Lexington, so much soHilliard Lyons opened a second loca-tion in the Beaumont area. Steve Gross-man and Tommy Kessinger have done agreat job in Lexington. Grossman is theoverall manager, and Kessinger runs thenew Beaumont office and works withSteve in a close relationship.

EL: Is Hilliard Lyons offering or plan-ning new services since its acquisition byHouchens?JA: Our first priority is to build out exist-ing markets, and so that’s really been afocus of the organization the last coupleof years.

We would be interested in acquiringnew offices in new markets, but that’ sactually less of a priority. Hilliard Lyonsis always interested in taking a look if asituation in a new market is available.

The one thing Hilliard Lyons is notgoing to do is just try to grow for the sakeof growing. We want acquisitions thatreally do make sense from cultural andstrategic business standpoints. We havereally worked on developing a sound dis-cipline around recruiting people whomake sense for the organization. That

‘EVENTS THAT HAPPEN IN EUROPE ANDASIA HAVE AN IMPACT ON OUR CLIENTS’Hilliard Lyons CEO James Allen says focus on service to private investor clients is paying off

BY ED LANE

James AllenJames Allen is president, chairman andchief executive officer of Hilliard L yons, aLouisville-based company that is one of thenation’s oldest investment firms. Allen hasspent virtually his entire career at HilliardLyons, having joined the firm in 1981. Priorto being named president of the companyin 2003, Allen managed taxable fixedincome, the private client group andHilliard Lyons Asset Management. He hasalso been active in the financial ser vicesindustry and with the Securities Industr yand Financial Markets Association, wherehe has served on the board of directors.Allen continues to be involved in myriadcivic activities, serving on the board ofdirectors for the YMCA of GreaterLouisville, the Jefferson County Public Edu-cation Foundation, the Louisville Down-town Development Corp., and the Fund forthe Arts. He also sits on the advisory boardfor the University of Louisville School ofBusiness and the dean’s advisory council forthe Fisher College of Business at the OhioState University.


doesn’t mean our managers will alwaysbe right, but that’s really the goal.

EL: How would you demographicallydescribe a typical Hilliard Lyons client?JA: On an average, it’s going to be aman or woman who is about 50 yearsold. We currently invest roughly $33 bil-lion in client assets that represent prob-ably 100,000 households and 200,000accounts. It’s hard to define a typicalclient because each of our clients is aunique individual.

What we have experienced is thatHilliard Lyons is appealing to highernet-worth clients. That’s really been afocus of our organization. Our firm justmade a strategic hire of Jaleigh White,who will be joining the organization inJuly as the manager of high-net-worthstrategies. She’s with Mirador FamilyWealth Advisors, which is the family divi-sion of Fifth Third Bank. So, again, weare trying to take the resources thatHilliard Lyons has in place and, withher involvement, refine it into a productthat is appealing at the higher end.

Hilliard Lyons is constantly lookingfor younger individuals to bring into theorganization to be on teams with oursenior professionals. One of the thingsour industry is addressing is the agedemographics of clients and the profes-sionals serving those clients. HilliardLyons is intent on recruiting youngerpeople to the organization.

One of the other things with whichthe industry continues to wrestle is theregulatory climate related to social mediaand being able to communicate in aneffective way with the younger genera-tion. There are very restrictive regulations

and guidelines that made the use of socialmedia difficult to monitor and manage.

EL: The U.S. Congress recently passedthe Dodd-Frank Wall Street Reform andConsumer Protection Act. How will thisnew law affect Hilliard Lyons’ opera-tions and its customers?JA: From the industry standpoint and,in particular, Hilliard Lyons’ perspective(as a private client organization), Dodd-Frank establishes rules that will have animpact on firms like ours, one of whichis the fiduciary standard that’s yet to bedefined in terms of how it’s going toultimately be implemented. HilliardLyons favors the consistent standard ofcare that currently exists for our clients.We’re also concerned that our clients’choices will be preserved so they aren’tforced into a place that is not going toserve them well.

Raising the bar on standards couldpotentially raise the cost of servingclients. A regulated level of accountabil-ity and responsibility for every service afirm provides may require a firm tocharge in such a way that it will becomefinancially impracticable for that clientto have access to a ser vice they need.This issue is being reviewed as the SEC(Securities and Exchange Commission),FINRA (Financial Industry RegulatoryAuthority) and Congress hash out whatreally does makes sense.

An unintended consequence of thislegislation could be the U.S. Depart-ment of Labor’s fiduciary standards thatrelate to ARISA will apply to retirementaccounts. That would have a potentiallimiting affect in terms of the level ofservice that the industry could provide

to IRA account holders. What’s ironic isthat all of the rules and regulationsbeing called into question were not nec-essarily what caused the meltdown. Inreality, Congress might be tr ying to fixsomething that’s not necessarily broken.

EL: Two of Hilliard Lyons analysts,Carol Kemple and Joel Havard, wererecently selected as top stock pickers,respectively, in the areas of real estateand oil-and-gas producers by The WallStreet Journal. How exceptional werethese awards?JA: Looking back historically, a high per-centage of our analysts have been recog-nized at one time or another. This isactually Kemple’s second year in a row tobe recognized as the No. 1 analyst. Obvi-ously, Hilliard Lyons is very proud of thequality of work that’s being generated byour equity research department.

One of the differentiators forHilliard Lyons, as it relates to research,is our commitment to objectivity. Regu-lations require separation betweenresearch and investment banking. We’vealways had that separation and encour -age objective research. This policy hasbeen part of our histor y even before itwas mandated that it be that way.

The other thing of which HilliardLyons is proud is the accessibility of itsanalysts. Our primar y thrust as anorganization goes back to my earliercomments: Hilliard Lyons is a private-client organization, and our research isdesigned for the clients of our firm. Youmay ask, what’s unique about that – isn’tresearch supposed to be consumed byclients? The answer is, yes, but largerorganizations have much more of an


institutional thrust. Hilliard Lyons’research tends to cater more to theneeds of private-client investors.

When clients’ anxiety levels werehigh, the DOW was 6,500, and nobodyknew whether it was 6,500-going-to-3,500; people were afraid. Nobody ranga bell saying (the decline is) over . Oneof the great things about Hilliard Lyonsanalysts is they were available to talk toour clients. I got so much positive feed-back on their accessibility, the quality ofwork and the fact they provided a ver ycalming level of support and advice.

EL: Is criticism of hedge funds’ lack oftransparency valid? Are hedge funds essen-tial products in today’s investment market? JA: Some advocates of hedge funds arguethat they play a valuable role in the mar -ket. Hilliard Lyons has taken a fairly cau-tious view. We want to offer access to alltypes of asset classes through our variousprograms, some of which may includemore aggressive hedge fund and tradingopportunities. Again it’s easy to argue thatinvestments having less transparency andregulatory adherence may not necessarilybe productive for the marketplace. Butagain, I think hedge funds can play a valu-able role for some investors.

EL: Should equity and bond investors beconcerned about a “euro crisis” relatedto high deficits and possible debtdefaults by the Greek, Spanish, Irishand Italian governments? JA: It’s a global marketplace now, soevents that happen in Europe and Asiahave an impact on our investors. Forexample, this morning, the Europeanmarkets sold off as debt concerns for anumber of countries started to resurfaceagain. Potential downgrades, concernsabout defaults, the rising U.S. dollar andhigher costs for U.S. export goods allimpact our markets and investor confi-dence. When the news becomes decid-edly negative, investors tend to pull back.

Right now, we are seeing nice corpo-rate earnings growth. Corporate Americahas demonstrated its resilience and inge-nuity in being able to turn profitabilityaround in a pretty profound way. Higherprofitability fueled the recovery of thestock market, but now there is concernabout what’s going on in Europe coupledwith concern the U.S. recover y is startingto lose a little momentum. You’re seeingcorporate earnings reports reflect strongbottom lines but perhaps missing in termsof the top line. The combination of theseconcerns is now causing the market toreach a point where it’s potentially at anear-term high.

EL: In April, Standar d and Poor’sexpressed concern over borrowing by

the U.S. government and indicatedthere is a one in thr ee chance that U.S.debt could lose its top rating within twoyears. How concerned are you aboutU.S. debt levels?JA: The budget deficits and escalatingU.S. debt picture are concerning issues.The market is trading in such a way thatit’s not necessarily suggesting a U.S. debtdowngrade is looming. Clearly, spendingneeds to be brought under control, andthe deficit picture needs to improve.

EL: The Financial Industry RegulatoryAuthority (FINRA) announced that it isinvestigating 200 to 400 fir ms and hasreferred six “serial insider tradingrings” to the SEC or other law enfor ce-ment agencies over the last two years.Are investors adequately protectedagainst unscrupulous companies andinvestors in the stock markets?JA: Hopefully the enhanced enforce-ment effort is going to be effective. Ourthrust as an organization is to representour investors. When we talked about ourresearch efforts and the line of distinc-tion between research and investmentbanking, that’s an area where, again,Hilliard Lyons decided we are going torepresent the investor.

When you look at what fueled someof the problems on Wall Street, therewas probably an inability of investmentfirms to manage their conflicts of inter-est. Hilliard Lyons has done very wellregarding this issue by being on the sideof our investors. Our firm does not runbig inventory positions or trade on aproprietary basis. We’re not operatingin conflict with our clients. In regard toinsider trading on Wall Street, technol-ogy, ingenuity and creativity on thatfront have probably outpaced the regu-latory structure to deal with it, and theregulators are catching up. Hopefully,that’s the case.

Investors must have confidence inthe marketplace and the securities mar-ket. Investment fraud serves to under-mine confidence, and it gets back to a“few bad apples can spoil the wholething.” Hopefully, the regulatory struc-ture and the intense use of technologyin the regulatory process can rein ininsider trading and ensure that it is nota pervasive problem.

EL: Hilliard Lyons played a key role insecuring the necessary bond funding forthe new KFC Yum! Arena. How did yourfirm assist in this effort?JA: In the summer of 2008, I got the callfrom Ed Glasscock (attorney with FrostBrown Todd representing the LouisvilleArena Authority), who wanted to talkabout a potential gap in the Louisvillearena financing and the need for assis-

tance. Hilliard Lyons got our grouptogether and heard what was needed asit related to unsecured taxable bonds.We felt like our firm could help. Theinvestment was sound, we knew the proj-ect and had a lot of confidence in it.Hilliard Lyons did a good job on theproject for our investors and our com-munity. Everybody was a winner.

EL: Hilliard Lyons is very involved inthe communities in which it does busi-ness and has been recognized for itssupport of arts and education – mostrecently receiving the Kentucky Gover-nor’s award in the ar ts. How does yourfirm decide in which local communitygroups to invest its support?JA: It’s on a market-by-market basis,and Hilliard Lyons has been very sup-portive of the arts, education and othercommunity needs. An important rolethat we play is contributing to the qual-ity of life and economic developmentin the communities we ser ve. HilliardLyons has a foundation that providessupport for capital projects. If some-body submits a request from one of ourmarkets, we first determine if the localHilliard Lyons branch office is support-ing the request.

EL: Is Kentucky’s economy on themend, and what is the shor t-term out-look on the state’s unemployment rate?JA: I think you’re going to see a slow,steady improvement in the state’s econ-omy, a decline in the unemploymentrate and growth in job creations.

EL: Do you have a closing statement?JA: When I reflect on Hilliard Lyonsand its future, I feel this is a wonder fultime for our organization. W e areexcited about our growth in client assetsand our productivity. All of our efforts atHilliard Lyons add up to a brand thatstands for all the right things in the busi-ness in terms of objectivity and qualityadvice that’s tailored to meet the spe-cific needs of our clients. Hilliard Lyonswants to be positioned as a good citizendoing things in the community.

Our firm has an opportunity to usesize to its advantage to access resources.Our investment banking team can get toany of our markets quickly. The connec-tivity of our research department isavailable on the phone to talk to aclient. Those are things that are part ofHilliard Lyons’ service model. �


LANE ONE-ON-ONE

Ed Lane ([email protected]) is chief executive of Lane Consultants,Inc. and publisher of The Lane Report.



IF Kentucky needed a renewableenergy czar, Louisville entrepre-neur Gill Holland would be theideal candidate.

Since purchasing a 115-year-old former dry goods store on East Mar-ket Street in downtown Louisville andrenovating it to become one of thestate’s first Leadership in Energy andEnvironmental Design (LEED) plat-

inum-certified buildings, Holland hasbecome Kentucky’s poster child for thegreen movement.

The Green Building, as his first realestate endeavor is known, is the three-story home to several of Holland’s busi-nesses: The Group Entertainment LLC,a movie production and music publish-ing company; sonaBLAST Records, anindependent record label; and Holland

Brown Books. Additionally, there is anart gallery, public meeting space and afew other tenants.

The building’s LEED designation isgiven to buildings that earn 80 points orbetter in the scoring system developedby the U.S. Green Building Council(USGBC).

Since opening in October 2008, TheGreen Building has become the flagshipof a 15-building empire of other East Mar-ket Street structures Holland and otherinvestors (including his wife, AugustaBrown Holland, daughter of retiredBrown-Forman exec Owsley Brown Fra-zier) have purchased and either reno-vated or plan to renovate. The ultimategoal is to transform the area (dubbed“NuLu” by Holland) into a local arts dis-trict that will showcase local restaurants,locally grown food and buildings that usesustainable energy and materials.

From a top-floor meeting room in aglass-and-metal extension at the back ofThe Green Building, Holland proudlypointed to the bank of $100,000 solarpanels that help the building achieve 72percent energy efficiency.

“I tell people it’s an investment,” Hol-land said of the solar panels. “It (pro-vides) about a 20-year rate of return,even with energy rates increasing 5 per-cent a year. If I had put $100,000 in thestock market (in 2008) rather than insolar panels, it would be worth only$56,000 right now.”

Film producer, record label execu-tive, book publisher, green real-estatemagnate – all are titles Holland proudlybears. There is one title, however, thathe bristles at: tree-hugger.

“I do resist that because I’m a capi-talist entrepreneur,” Holland explained.“Yes, it’s great to save the world, but it’sgot to make great financial sense.”

Intellectual nomadHolland seems to thrive at the intersec-tion of art and business, where the cre-ative instinct merges with themarketplace. His academic career is dis-tinguished by his acumen in both quali-tative and quantitative disciplines. Inhigh school, for example, Holland wonprizes in both math and English.

His college major is a little harder topin down. Being the intellectual nomadthat he is, after nearly four years ofclasses in a wide variety of disciplines,his adviser remarked that he had neverseen anyone accumulate that manycredits for a bachelor’s degree. Hollandhad spent his junior year abroad inFrance, so his adviser told him to takefour additional classes so he could grad-uate on time. His degree was in French.

“I like the arts, but I also just like tobe in school,” he said, “but at the same

Louisville’s Green Entrepreneur

NuLu creator and environmental empresario Gill Holland works the business side of arts

BY ROBERT HADLEY


COVER STORY

Gill Holland is the developer of The Green Building on East Market Street in Louisville. The 115-year-old formerdry good store became the state’s first LEED Platinum certified building. It is the anchor of a 15-building clusterhe and wife Augusta Brown Holland and a group of investors now own in an area they have dubbed NuLu.

Mark G

reen photos


time, not letting school get in the wayof education.”

After college, he took the proverbialyear off to find himself, and for awhilebecame a literal nomad. His travels tookhim to 47 countries in Europe, Africa andthe Middle East as well as Australia andNew Zealand. “It gives you an openness toconsider new ideas,” he said of his travels.“You realize we’re all in this together. Interms of humanity, at the end of the day,everybody’s basically the same.”

So how did Holland, a North Car-olina native, the only son of an Englishprofessor father and native Nor wegianmother (also a teacher), find himself amovie producer and champion of greenconstruction in Louisville, Ky.? The pathcame courtesy of another academicstop: law school.

Returning to the United States in1988, Holland promptly enrolled in theUniversity of North Carolina – ChapelHill’s law school. Midway through hisdegree, he spent another year of studyabroad, this time at University Collegein London, England. After earning hislaw degree in 1991, Holland’s first jobwas (predictably) overseas, this time inParis, France, practicing law for enter -tainment and construction firms. Hisexposure to one of the law firm’s clients,a film production company, piqued hisinterest in that line of work.

Stateside in the early ’90s, Hollandentered the movie business, eventuallyproducing more than 50 indie films,including “Hurricane Streets,” a triple win-ner at the 1997 Sundance Film Festival.Echoing his parents’ influence, he alsotaught for two years at New York Univer-sity’s graduate school of film.

Despite his love of the arts, Hollandadmits he is no director.

“Directors have to (be able) to talk toactors,” Holland said. “You have to be anartist to be a director. I’m more of abusinessman who likes the arts.”

Holland considers himself more of abusinessman who produces art ratherthan an artist who dabbles in business.Either way, it’s clear he keeps an eye onthe bottom line.

“Rule No. 1 of moviemaking is to trynot to lose any money. Too many peoplego in trying to make a lot of money, and

if you go in with that attitude, you’regoing to lose a lot.

“There’s a saying that goes, ‘How doyou make a small fortune in the moviebusiness? You start with a large fortune.’ ”

Vision for NuLuA visitor walking down East MarketStreet can start to see Holland’ s visionfor the area take shape. His next-doorneighbor, a restaurant called Toast onMarket, exemplifies the small, localeateries the area is beginning to attract.Others include 732 Social, Muth’ s

Gill Holland stands in an open event space insideThe Green Building.



COVER STORY

Candy, The Mayan Café, and Please &Thank You.

But you won’t find national restaurantsin this district, said Henrietta Pepper, whoowns The Pepper Group, a branding firmthat has a five-year lease in The GreenBuilding. The Pepper Group is a memberof the East Market District Association, ofwhich Holland is president.

“We’re not trying to duplicate whatwe’ve seen in other cities,” Pepper said.“We don’t want chains in here. We wanta grassroots, local-centric flair that willmake and keep us authentic.”

A cornerstone of the NuLu communityis a project near to Holland’s heart: thecreation of Jefferson Market, a farmersmarket featuring locally grown produce.The market, located across from TheGreen Building at 720 East Market St., wasan idea several years in the making.

Tim C. Peters, the contractor whohelped renovate The Green Building, anda fellow investor in NuLu properties,recalls Holland mentioning the farmersmarket on their first meeting six years ago.The occasion was a dinner at Peters’ Cen-tral Kentucky farm, with Holland andfuture wife Augusta Brown, and her par -ents, Owsley and Christy Brown Frazier.

“He’s had a terrific result because allthe rundown buildings on East MarketStreet are being bought up and reno-vated, some by him and some by peoplehe’s motivated to come here,” Peterssaid. “Gill brings a lot of character to thetable. A lot of people I do business withare strictly business. He’s doing it for thelove of old buildings.”

Green movement as economic saviorTo understand Holland’s vision for thegreen movement and where it isheaded, both for the country and forKentucky, you must first grasp thatAmerica is slipping into second place bymissing an important opportunity at aunique time in history. In other words,we need an economic savior to rescue

us. Enter the green energy movement.As evidence, Holland points out that

China is home to the world’ s first solarbillionaire, Shi Zhengrong, founder andchairman of Suntech Power, the world’slargest producer of solar panels. Inorder for the United States to keep pacewith energy-sector development, Hol-land believes a nudge would be helpful.

“There’s a saying that the Stone Agedidn’t end because we ran out of stone,”he said. “The coal age is not going toend because we run out of coal. I’m allabout incentivizing people to change,(but) not mandating it or telling them(they have) to do it.”

Some of the incentives Holland has inmind include expanding existing federaltax rebates for solar panels to the statelevel, as well as offering municipal rebatesfor recycling rain water or installing “greenroofs.” (According to Wikipedia.org, agreen roof uses vegetation planted atopcity buildings to absorb rainwater, provideinsulation and reduce the heat-islandeffect within cities.)

Tax incentives can be a powerfulmethod of encouraging the use of sus-tainable materials and technology in abuilding project. Peters estimated goinggreen with a building project canincrease costs by one-third.

Some offsetting incentives do cur-rently exist. Nick Lombardi, manager ofrisk services with Brown Smith Wallace,a St. Louis-based accounting firm, citesthe federal Business Energy InvestmentTax Credit (ITC), which provides a 30percent deduction off the installationcost for solar, wind, geothermal andother green technologies.

Although the tax credits haveexpanded or been extended since 2008,it’s hard to predict whether incentiveswill be expanded.

“It depends on legislative caveat,”Lombardi said. “Right now, we’ve got

essentially a split opinion government inD.C. All I can speculate is don’ t bet onanything – there’s very much (an atmos-phere of) uncertainty.”

Despite the muddy issues surroundinglong-term energy policy, Holland believesthe economic benefits of green energy areclear. For starters, it would spawn morebusinesses that manufacture the technol-ogy, such as solar panels and green build-ing products. More manufacturing wouldlead to more jobs, a bigger tax base andless dependence on fossil fuels, which candamage the environment. PositioningKentucky as a green manufacturing hub,while perhaps a counterintutive move in astate whose three greatest industries arebourbon, horse racing and coal, couldthrust America to the forefront of energyinnovation.

“We’re not in Arizona with eightsolar hours a day, and we’re not in theWindy City,” Holland said. “But (Ken-tucky) has this huge manufacturingbase, and we should be making the windturbines and solar panels instead of buy-ing them from China.”

Holland is well aware that adoptinggreen energy will not necessarily comequickly or easily without the nudge ofsome type of an incentive, but heremains optimistic.

“I feel like we’re a bit behind thecurve,” Holland said, “but the greatthing about it is that once we reallydecide to do it, we will kick butt andeventually catch up. It will happen.” �

Robert Hadley is a correspondent for The Lane Report. He can be reached at [email protected].

The Green Building, located at 730 E. Market St.in Louisville, anchors a local arts and restaurantdistrict starting to emerge around it in buildingsthat are using sustainable energy practices and materials.

Gill Holland stands in front of a “living wall”incorporated into The Green Building.



HISTORICALLY, initial cost was thedominant factor in selecting amechanical, electrical and plumb-

ing (MEP) system in Kentucky since thestate enjoyed very low utility costs. How-ever, utility costs are escalating ever y-where, and system efficiency can nolonger be ignored.

Typically, about 40 percent of busi-ness electrical budgets go to HVAC and30 percent to lighting, totaling morethan $80 billion annually. Designs havebeen changing the past 10 years.

Selecting a building MEP systemtoday is a complex decision that shouldbe based on an owner’s energy andmaintenance goals – and level of expert-ise. Generally, as system efficiencyincreases, so does its complexity. A high-efficiency MEP system can be comparedto a European sports car, with peak per-formance realized only with propermaintenance and owner attention.

Good MEP selection decisionsrequire weighing all the variables, andmany owners lack the expertise to fullyunderstand the pros and cons of spe-cific HVAC and lighting choices. Param-eters such as initial cost, annual energysavings, annual maintenance and systemcomplexity should be considered. It’susually advisable to consult an unbiasedprofessional engineer to determine theoptimum system to meet per formanceand maintenance goals of a project.

Many owners have fixed budgets andminimal staff to devote to the mainte-

nance of complex MEP systems; theserequirements are often overlooked dur-ing project planning because of theallure of the newest technology. High-efficient systems do not just “run them-selves” and often have computer -basedcontrols that are too complicated forsome owners. An owner tends to aban-don project energy goals when it turnsout they cannot devote adequateresources to the task. Any mechanical orelectrical system that isn’t properlymaintained or operated is likely toresult in unanticipated costs and unre-alized energy savings.

Three high-efficiency “green” HVACsystems today are chilled-beam, geot-hermal heat pump, and variable refrig-erant volume (VRV). All can be similarin cost, exceed modern energy codesand allow for individual occupant con-trol. All also vary in complexity, servicerequirements, operational characteris-tics and mechanisms.

Air-cooled VRV systems transfer heatfrom a refrigerant circulated by inverter -driven compressors. Many owners andstaff prefer VRV systems because they arefamiliar with refrigerant requirements andlow maintenance needs. These air-cooledsystems, however, are less energy efficientthan geothermal heat pumps.

Geothermal pumps exchange heatbetween refrigerant and water that is circu-lated through an underground well fieldranging from 200 to 450 feet deep. Thesesystems are well established in Kentucky,

familiar to many owners and maintenancestaffs, have a proven efficiency record, andare many engineers’ standard choice for ahigh-performance “green” building.

Chilled-beam systems are new to thisregion but are gaining momentum.While the visible “beams” portion of thesystem is relatively simple, the mechani-cal room backbone can be complex. Itis important owners and staff fullyunderstand a chilled-beam HVAC sys-tem prior to selecting one for their facil-ity. While efficiency projections arepromising, it will be several years beforedata is available to fully evaluate costs.

Energy-efficient lighting offers a con-siderable opportunity for energy savings.Fluorescents are three to five times moreefficient than incandescent lamps and last10 to 20 times longer, but there are manyfluorescent technology options.

Fluorescent systems present complexdecisions related to lamp type (T8, T5and compact fluorescent), ballast type(rapid start, instant start, and pro-grammed rapid start); efficacy (lumensper watt), color temperature, color ren-dering index, life and lumen mainte-nance, availability, switching, dimmingcapability and cost.

Additionally, emerging lighting solu-tions include LED lighting and induc-tion-lamp systems whose lamp life is fivetimes that of fluorescents. Currently,their efficacies are the primar y limita-tion to significant adoption by users.

Meanwhile, lighting-control compo-nents are now required in Kentuckyunder the International Energy Conser-vation Code. Two primary controloptions are timed low-voltage systemsand those using infrared and ultrasonicoccupancy sensors to turn lights on andoff. These options present inherent dif-ferences in complexity.

Today’s energy systems can includeemerging renewable technologies suchas photovoltaic arrays. While the currentinvestment required for a photovoltaicarray may not provide a “payback” suffi-cient for most owners – unless govern-ment funding is obtained – the price forthis technology is dropping and shouldbe considered for future projects.

In this era of escalating utility costs,energy efficiency is arguably the mostimportant factor when assessing MEPsystem options. However, it is criticalalso to consider system complexity andmaintenance staff capabilities beforemaking a decision whose impact will last20 to 30 years. �

HVAC, LIGHTING CHOICES CAN BE TRICKYEfficiency savings won’t be realized if the system is too complex

BY TYLER WILSON AND RALPH WHITLEY

GOING GREEN

Tyler Wilson and RalphWhitley are principalswith Shrout Tate WilsonConsulting Engineers in Lexington.


SINCE 2008 Kentucky collegesand universities have beenresponsible for at least $1.85billion in construction projects.It’s been oxygen for common-

wealth contractors during a recessionthat choked off much of their formersources of work.

“I don’t know if the majority of thosein the construction industry have everseen a climate this grave and dire,” saidRichard Vincent, executive vice presi-dent of American General Contractorsof Kentucky. “Kentucky’s universities arenot just economically significant but arevital to the construction industry.”

While residential and commercialreal estate sectors staggered under sur -plus inventories and financing for largemulti-use developments disappeared,higher education has generated morethan 100 projects in the past few years.

The new college and university facili-ties are needed for an array of reasonsand will serve an equally large array ofneeds, from student housing toadvanced new academic programs.

The largest project has been the$532 million Phase I of the UK Albert B.Chandler Hospital, a high-tech 12-storyfacility. Finished on time and under

budget, its first patients arrived in lateMay on floors six and seven, which arespecially designed for acute, progressiveand intensive care. In fact, at this time itis probably the most technologicallyadvanced hospital in the world.

During the past three years, con-struction workers have put in 2.5 mil-lion-plus paid hours, with private sectorpayroll topping $72 million. And con-struction continues on eight operatingrooms expected to open in January2012. More than $200 million more willbe spent in phases through the rest ofthe decade finishing out remainingfloors. Eventually there will be 512 pri-vate rooms and up to 27 surgical suites.

“At the height of the project therewere 400 or more employees working,”Vincent said. “That’s the kind of eco-nomic impact these projects have. Andit’s not just for Lexington – the projecthad subcontractors from Louisville,Morehead, across the commonwealth.The impact is felt across Kentucky, notjust locally.”

Meanwhile, University of Louisvilleofficials broke ground in November ona $20 million 160,000-s.f. first phase ofits ambitious Nucleus project. It is envi-sioned to grow into a $2.3 billion life sci-

ences research park over the next 30years that will integrate UofL’s academ-ics and research into the metro area’ svibrant healthcare sector.

Nucleus’ first structure, expected tobe finished in 2012, will be closely tiedto the International Center for Long-Term Care Innovation – Innovate LTC –a joint project of leading members ofLouisville’s $27 billion aging-care clusterto foster innovation within and developtalent for that key business sector. Inno-vate LTC is to be an anchor tenant ofthe research park.

In higher education across the state,some of the recent and current projectscould be considered basic essentials.New housing facilities, electrical gener-ators and facility renovations are neededto attract students in today’s ultra-com-petitive college market and to accom-modate escalating numbers of students.

Others are monuments to the time-honored understanding that good

Construction Goes to CollegeKentucky higher ed finds new finance channels; $1.8 billion in capital projects since recession hit has sustained builders

BY DEBRA GIBSON

CONSTRUCTION


The $30 million Center for Health, Education & Research building at Morehead State University wascompleted in 2010. The architect was Hastings+Chivetta. Messer Construction was the contractor.

The $35 million Gary A. RansdellHall at Western Kentucky Universitywas designed by RossTarrant Archi-tects of Lexington to achieve LEEDcertification. A&K Construction ofPaducah was general contractor.



investments will ultimately lead to bettertimes. Northern Kentucky University’s$5.8 million Griffin Hall and phase twoof the University of Kentucky’s $18.6million Digital Village showcase newways universities are preparing studentsfor the electronically led world.

Still others make the universitiesmore energy efficient, some even payingfor themselves through energy savings.

At the University of Louisville, a$21.7 million energy reduction projectwas funded solely through anticipatedsavings in energy costs. A similar projectis underway at UK.

Impact beyond campusMany of the facilities address communityneeds as well as those of the university.

In Pikeville, a two-phase, $20 millionmedical school project will help alleviatethe shortage of primary-care physiciansand significantly impact healthcare in East-ern Kentucky and central Appalachia,according to University of Pikeville Presi-dent Paul E. Patton. The project includes a$2 million Clinical Skills Training and Eval-uation Center at the university’s School ofOsteopathic Medicine.

In this ever-more-connected world, theprojects also directly impact other sectorsof the economy. For the constructionindustry, for example, campus construc-tion has been an economic lifeline.

“There were not a whole lot of $100million projects (referencing the UKhospital) even before the recession,”Vincent said. But there was work.“Three years ago, there would typicallybe four general contractors bidding ona project. Now you see 14 bidding onthat same project. The profit marginsare nonexistent.”

The amount of construction on cam-puses is especially remarkable since the

KentuckyGeneral Assembly has not appropriatedany funds for capital construction onpublic university campuses since 2008,with the exception of four emergencysituations.

Part of why building is still possiblewithout new appropriations lies in thenature of capital construction, said Sher-ron Jackson, associate vice president offinance for the Council on Postsec-ondary Education. It takes at least threeto five years to get a capital constructionproject – defined by the state as costingat least $600,000 – from General Assem-bly appropriation to university approvalto architectural plans to construction tousage. Many projects now being com-pleted were approved prior to 2008 andare just now ready for use.

This, however, doesn’t explain allthe construction taking place. As tradi-

tional funding has been slashed, uni-versity presidents have responded bybecoming increasingly creative andentrepreneurial.

Building a new fiscal attitudeWhen Western Kentucky University’sGary A. Ransdell became WKU’s presi-dent in 1997, the burning question onhis mind at that time was what studentswanted most. Their answer was clear:better residence halls.

However, residence hall fees were justenough to cover the basics: debt ser vice,staff, day-to-day operation and modestrepairs. A bigger problem was that WKUstill owed $22 million on the residencehalls, with no debt relief for 12 years andfull debt relief 27 years away.

Ransdell had meager options. TheGeneral Assembly expects dormitories tobe self sufficient and Ransdell and his

Kentucky Higher Education Capital ProjectsSCHOOL # PROJECTS COMPLETION DATE COSTAsbury University 1 2011 $12.6 millionCampbellsville College 5 2010-11 $4.5 millionCentre College 1 2012 $15.0 millionEastern Kentucky University 2 2011-12 $97.2 millionGeorgetown College 1 2011 $2.0 millionKentucky State University 2 2011 $5.6 millionLindsey Wilson College 3 2010-11 $4.0 millionMidway College 3 2010-12 $7.9 millionMorehead State University 2 2010-11 $54.0 millionMurray State University 4 2008-2011 $39.0 millionNorthern Kentucky University 2 2008-2011 $121.7 millionSpalding University 2 2010-11 $10.2 millionSullivan University 4 2008-11 $34.2 millionTransylvania University 1 2010 $9.2 millionUniv. of the Cumberlands 6 2010-12 $11.0 millionUniversity of Kentucky 20 2009-2013 $816.0 millionUniversity of Louisville 20 2010-13 $250.8 million University of Pikeville* 1 2012 $30.0 millionWestern Kentucky University 4 2010-2012 $59.8 million

* Pikeville College officially becomes the University of Pikeville on July 1

The $13 million James Richmond College dormitory at Murray State University was completed in 2009.

The $540 million Albert B. Chandler Hospital (including a parkingstructure across the street) has been the largest single project in Kentucky since its 2007 groundbreaking. Two patient care floors with128 beds opened in late May with eight operating suites to follow laterthis year. It will eventually have 512 beds and up to 27 operating suitesin 1.2 million s.f. at a total estimated cost of $760 million, all paid forwith funds generated by UK HealthCare.



CONSTRUCTION

board had already agreed to pursue leg-islative funding only for academic build-ings anyway.

“We knew we needed to raise newcapital, pay off existing debt to the stateso we could afford to finance new debt,and physically transform the buildingsthemselves without disrupting the rev-enue stream that would finance our cur-rent and future debt,” Ransdell wrote inTrusteeship, a publication of the Govern-ing Boards of Universities and Colleges.“We also needed to create an independ-ent structure through which new debtcould be issued and serviced.”

Ransdell and his board decided to dosomething no university had done. WKUwould relinquish ownership of its resi-dence halls through an intricate plan.

The new president created a StudentLife Foundation (SLF) in 1999 andincorporated it as a nonprofit, nonaffili-ated, tax-exempt Kentucky corporation.To allow the university to recapitalizeand renovate its residence halls, the SLFwas structured exclusively as a support-ing organization for WKU’s Foundation.Excess funds generated by the SLFcould be paid to the Foundation, andthe Foundation would use the funds tobenefit the university.

This was a novel move, but the legisla-ture’s Capital Projects and Board Over-sight Committee approved it. Within twoweeks, the SLF purchased 17 of WKU’s 18residence halls. (One was reserved for adifferent purpose.) It then issued $65 mil-lion in tax-exempt bonds pledged againstdorm bed rentals. Bond proceeds paidtransaction and renovation costs, andestablished operating and repair reser vesfor the SLF. The university redeemed alloutstanding housing and dining bonds,taking all of its debt off state books. At theend of the SLF debt life, the university hasan option to buy the buildings back orcontinue the management agreement.

“The whole transaction is invisible tostudents because the Office of Resident

Life manages the resident properties,”Ransdell said. “We were able to take apoor-quality living environment on cam-pus and turn it into state-of-the-art livingenvironment. It was entrepreneurialand a little risky, but it worked.”

To Ransdell’s knowledge, this plan hasnever been tried on another universitycampus. However, presidents at other Ken-tucky schools are also using creative waysto fund much-needed projects.

Out-of-the-bell-tower thinkingThe University of Louisville has beenparticularly creative when it comes tostudent housing, CPE’s Jackson said.

“UofL identified locations adjacent toits campus and encouraged private devel-opers to come in and build,” she said.“Then they entered into an agreementwith the university to send them students.This has saved UofL millions of dollarsbecause they didn’t have to spend moneyto build new housing for students.”

Collaboration is also a key, accordingto Jackson.

“Murray State University and Padu-cah are collaborating on a $10 millionacademic facility adjacent to the West-ern Kentucky Community and Techni-cal College (formerly PaducahCommunity College),” Jackson said.This is possible because Murray’s countyand city government agreed to issue $10million in local debt to get it done. Thisis a request that would have come to the

Commonwealth of Kentucky in 2010-12,but state government was unable toaddress the request because of the eco-nomic downturn and lack of fundingavailable for capital construction.”

Sometimes students even get intothe act.

Morehead State University (MSU)instituted a special student fee to helpfund a $24 million Recreation & Well-ness Center that will open this fall. Thefacility will include basketball courts, aswimming pool with sundeck, a walkingtrack, racquetball courts, multi-purposerooms and a fitness center. Out frontwill be a playing field.

The concept, design and funding ofthe building, MSU President Wayne D.

Above: The $64.6 million first phase of the ScienceBuilding at Eastern Kentucky University was designed by Omni Architects of Lexington. DenarkConstruction is general contractor. The 174,000-s.f.building will open this fall. A second phase of theproject will cost $64 million also.

Right: The 2,012-seat $32.8 million EKU Centerfor the Arts will open this fall. The architect is Sherman Carter Barnhart, and the general contractor is D.W. Wilburn Inc.

The $18.6 million Davis Marksbury Building at the University of Kentucky is part of the school’sDigital Campus project.

The $6.8 million renovation of College High Hallat WKU was completed in 2010.



Andrews said, came from the studentbody. Bonds to finance the design, con-struction, and equipping of the buildingwill be retired with new fees students votedon themselves to fund construction.

A similar project is going on at theUniversity of the Cumberlands, wherethey are in phase two of an $8 millionHealth and Wellness Center and spend-ing $2 million on athletic fields.

Creative thinking is nothing new toKentucky’s private and proprietary col-leges, of course. With no legislative finan-cial support or ability to sell bonds, all theirfunding must come from private sources.

“We either have to save it or go to thebank and borrow it,” said Sullivan Univer-sity Chancellor Al Sullivan. He founded histhriving institution in 1962 as a one-yearbusiness college but today has 6,000 stu-dents pursuing certificates, associate andbachelor degrees, at least seven master’stracks and four doctoral programs.

Despite having to finance privately, theuniversity has three major projects eitherrecently completed or in progress.

And while private colleges and univer-sities receive no direct state funding, occa-sionally they receive federal funds forfacilities that serve a genuine public pur-pose (health and science facilities, etc.).For example, Centre College just receivedmore than $1 million from the NationalScience Foundation to renovate the labs inits science facility, after it had invested $20million in private funds to expand thebuilding by 40,000 s.f.

Ultimately, whether it is being first orbeing best, being innovative or beingprepared, construction on campus – likethe coursework being done there – isabout preparing for the future, and thefuture is about change.

“Universities have to have facilities toremain competitive,” UGC’s Vincentsaid.

And thank goodness they’ve comeup with ways to keep up. �

Debra Gibson is a correspondent for The Lane Report. She can be reached at [email protected].

Griffin Hall, the $52.8 million College of Informaticsbuilding at Northern Kentucky University is scheduledto open this year. It will feature state-of-the-art electron-ics to assist students in electronic media broadcasting,computer sciences and business informatics.


ONE of the greatest valuesof our commonwealth ismaintaining a happyhealthy family, but whathappens if you mix family

with business? It makes for some inter -esting dynamics.

“You have toaddress uniqueissues that otherbusinesses don’thave,” says BobTiell, director ofcareer servicesand workforcedevelopment withthe Jewish Familyand Career Serv-ices in Louisville.“Re la t ionsh ipsmay gum thingsup and causemore serious

problems. They may undo the businessby keeping it from shifting from onegeneration to the next.”

It happens often since some 70 per -cent of all companies are family-oper-ated, according to Tiell.

Family loyalties can muddy up careerplanning. Tiell tells about a gentlemanwho was getting ready to leave his fam-ily’s business. The man had an emo-tional commitment to the company andsuffered a great deal of anxiety abouthow to talk with his father about it.

Other major family-business issues own-ers deal with, Tiell said, include minimiz-ing sibling rivalry, carving out functionalwork roles and identifying each member’sprincipal talents and skills.

“Each family business has its ownchallenges,” he said. “Communicationissues in the family, communicationissues with non-family employees, lackof a succession plan, no formal qualifi-

cations to be in the business and noplanned leadership development are afew of the possible issues.”

William E.“Skip” Miller,president andowner of MillerLumber Co. inAugusta, admitshe doesn’t do thebest job with com-munication.

“I probablyshould learn tolisten to thesenew guys, bemore open tot e c h n o l o g i c a l

change,” he said. Himself a second-gen-eration participant in the business,Miller’s two sons Craig and Scott workfor him. A potential fourth-generationemployee, Grayson Miller, age 4, likes towalk the lumber yard most morningsbefore heading to daycare, Miller said.

“It’s rewarding to be a part of a mul-tiple-generational business where we arebucking the trend,” he said.

“The trend” Miller references is this:The first generation typically works hardat the business, the second generationslacks off, and the third gives up thebusiness. There is no evidence of thatoccurring at Miller Lumber, however.

Carol Lowery,Ph.D., a clinicalpsychologist withFamily PsychologyServices in Lex-ington, says howpeople are doingin their personallives spills intotheir work even iffamily membersare not involved.“But it’s muchmore emotionallyinvolved and

often counterproductive in a family-operated business,” Lowery said.

“We see patterns of stressed-out com-munication,” she said. “When that hap-pens, a blaming pattern ensues: Dadbecomes more critical of the kids, whichin turn affects the work environment.

“Family members need to becomeaware of how they communicate whenthey are under stress.”

Another example Lowery offers isthat of the family father who has run thebusiness for 20 years. The next genera -tion wants to have more input into the


MANAGEMENT

Mixing Familyand Business

Successful multi-generational operations require knowingwhere personal and professional conflict is likely to arise

BY JUDI BAILEY

Second- and third-generation family members andmanagers of Miller Lumber Co. in Augusta, Ky.,are, left to right, Scott Miller, Caroline Miller,William E. “Skip” Miller and Craig Miller.

Bob Tiell, Director, Career Services andWorkforce Development,Jewish Family and Career Services

William ‘Skip’ Miller,President and Owner,Miller Lumber Co.

Carol Lowery, ClinicalPsychologist, FamilyPsychology Services


business practices, but parents havetrouble letting go of the traditionalpractices that seemed to have workedfor them.

On the flip side, family-run opera-tions can offer a great deal of pleasureas well.

“I’m a very blessed person,” said RichEngle, owner of J&R Outboard inLouisville. One of the benefits of a fam-ily business for him is complete andutter trust.

“I don’t have to worry about a dimemissing,” Engle said.

He and his wife, Betty, own the busi-ness, which they started in 1969. Theirson, Doug, runs one aspect, theirdaughter, Sheri Inclan, another .Although Engle doesn’t have a written-in-stone succession plan, the generalthought is that the siblings will ser ve asco-CEO of the company.

“I try to let them make their owndecisions,” Engle says, “and they’re usu-ally right.”

Kathleen Hoye, director of the Fam-ily Business Center of the University ofLouisville, warns of the importance ofrecognizing the dual systems involved.One system, or governance, is the strat-egy for the family. The other is the strat-egy for the business.

“In general,”Hoye says, “youneed to preventfamily dynamicsfrom dictating busi-ness strategies.”

Hoye suggestshaving some kindof a family councilwhere memberscommunicate howthey can partici-pate in the busi-ness, where their

talents can take them and how they will beevaluated.

In the business governance thereshould be an independent board ofdirectors including non-family membersfor greater objectivity. This keeps thebusiness from being influenced by fluc-tuations in the family relationships.

Hoye mentions that generational suc-cession used to assume the first son inher-ited the business. “It’s not true anymore.But there can be problems when a founderdivides the company equally, then they allscramble for power. Eventually the businessgets sold because the parent doesn’ t wantto make the choice of successor.”

The best regional example for this,Hoye points out, was the Courier-Journal

newspaper in Louisville. Robert WorthBingham took over full ownership in1920, then when he began to considera successor, old sibling rivalriesemerged as a power struggle betweenthe children. Instead of appointing oneof them to follow in his footsteps, Bing-ham sold the publication to Gannett in1986.

Picking a successor isn’t easy due tothe potential of hurt feelings. An exam-ple Hoye gives is if a female is identifiedas having the best potential to run thecompany, older siblings or male siblingsare likely to react negatively.

“One of the things that mattersmost,” says Tiell, “is adopting a policyfor hiring in a new family member . It’srecommended that a family memberfirst work for someone else. They needto have a place for skill-building, maybeearn a college degree. This needs to bespelled out to every family member notyet part of the business.”

Clearing away messy entanglementsand providing safe avenues for commu-nication allow families to work togetherin the creation and succession of a har-monious family business. �

Judi Bailey is a correspondent for The Lane Report. She can be reached at [email protected].

Kathleen Hoye, Director, UofL FamilyBusiness Center



THOUGH the recession and financial crisis of 2008were brutal and the recovery has been weak, manycommonwealth capital projects continue to moveforward. Though far from optimal, conditions inKentucky’s construction sector are better than

most probably assume. More than $1 billion in privately funded healthcare proj-

ects have kept thousands of construction workers employedduring and since the recession hit. Financed by hospital rev-enue, the $540 million Phase I of the Albert B. Chandler Hos-pital at the University of Kentucky began accepting patients inlate May; its build-out continues through the rest of thedecade. Owensboro Medical Health System is midway througha $385 million hospital construction project, and Central Bap-tist Hospital in Lexington has begun a $200 million expansion.

Featured separately on pages 28-31, higher education inKentucky has had more than $1.8 billion in capital construc-tion the past few years.

In addition to building construction, the Kentucky T rans-portation Cabinet since late 2007 has initiated 126 highwayand bridge construction, renovation or maintenance projectsof more than $1 million. Those contracts totaling $1.369 bil-lion were won by 54 companies.

The 10 largest recent state transportation contracts are:• $66.4 million – Paducah-Smithland Road (US 60) in

McCracken and Livingston counties – Kay & Kay joint venturewith Haydon Bridge

• $49.4 million – Watterson Expressway I-265 WestportRoad in Jefferson County – Hall Construction of Kentucky

• $45.6 million – Mountain Parkway in Wolfe County – Hin-kle Contracting

• $44.8 million – Wolfpit-Laurel Branch (US 460) in PikeCounty – Elmo Greer & Sons

• $39.2 million – Lexington Road (US 27) in GarrardCounty – The Allen Company

• $39.1 million – Tennessee State Line-Elizabethtown Road inEdmonson and Barren counties – Scotty’s Contracting and Stone

• $38.2 million – Louisville-Lexington Road (I-64) in Shelbyand Jefferson counties – Gohmann Asphalt and Construction

• $37.5 million – Owensboro-Maceo Road (US 60) inDaviess County – Yager Materials

• $36.0 million – Pikeville-Virginia State Line Road (US 4)in Pike County – Hi-View

• $35.9 million – Louisville-Covington Road (I-71) in Gal-latin County – Eaton Asphalt Paving Co.

Still Building in KentuckyDespite recession and aftermath,

Commonwealth has billionsin active building projects

BY MARK GREEN

KENTUCKY CONSTRUCTION

A Ford Explorer rolls off the former assembly line at Ford’s Louisville Assembly Plant.A $600 million total rebuild of the facility will make it into what Ford officials saywill be the most advanced flexible vehicle assembly plant in the world, able to retoolswiftly and produce up to six separate vehicles simultaneously.

Owensboro Medical Health System’s replacement 477-bed, $385 million hospitalproject is slated for completion in spring 2013. The 760,000-s.f. hospital will besited on a 150-acre health campus. KLMK Group is the owner’s representative, providing project management services. Hammel, Green and Abrahamson(HGA) is architect. Smith Seckman Reid Inc. is providing mechanical, electricaland technology engineering, and Bryant Engineering Inc. (BEI) of Owensboro is civil engineers. Turner Universal is construction manager.

Southland Christian Church is undertaking a $30 million transformation of the former Lexington Mall property into a new church campus. Demolition is underwayfor what will be 84,000 s.f. of adaptive reuse and addition of a 49,000-s.f. worshipcenter. The site plan, shown in an artists rendering, includes a plaza, water featureand parking for 1,800 vehicles. EOP Architects is the designer.

A $130 million expansion and update will prepare the long-time home of the ChevroletCorvette to produce the next generation of the iconic sports car for the 2012 modelyear. Here, a plant worker inspects a new 2011 Corvette on the assembly line.

GM

Corp. photo



Groundbreaking took place in November 2010 on the $20 million Phase 1 ofthe University of Louisville Nucleus life sciences research park. The eight-story160,000-s.f. building is scheduled for completion in 2012. Arrasmith, Judd,Rapp, Chovan is architect and Sullivan & Cozart is construction manager.

Central Baptist Hospital in Lexington broke ground in fall 2010 on a $200million 337,000-s.f. expansion, at left a seven-story facility to include 40 ICUbeds, 44 private beds, a cancer center, a women’s center with delivery room andimaging services. It is scheduled for completion in late 2012 or early 2013.

Denham-Blythe Co. Inc. designed and constructed a 64,000-s.f. addition for CountryOven Bakery in Bowling Green. The project began in the spring of 2010 and was completed in January of 2011. The project construction costs were $9 million, but thetotal investment from Kroger was around $25 million. The bakery produces cakes,cookies and other treats that are shipped out to Kroger stores across the nation.

Construction is under way in Winchester on a new Clark Regional Medical Center, which was purchased in mid-2010 by Brentwood, Tenn.-based LifePoint Hospitals. LifePoint is replacing the existing 100-bed facility with a $60 million, 132,000-s.f. hospital. Construction began last year and is expected to take 18 to 24 months.

Groundbreaking took place in July 2010 for a $20 million building at University ofLouisville – ShelbyHurst Research and Office Park. The four-story 125,000-s.f.structure adjoining the UofL Shelby Campus is slated for late 2011 completion. It isthe first structure at the 200-acre office park, which is a partnership between theUofL Foundation and developer NTS. KlingStubbins is architect.

A $38.1 million project on I-64 in Jefferson and Shelby counties was completed by Gohmann Asphalt and Construction Inc.

Groundbreaking took place May 11 for a new $20 million Glasgow State Nursing Facility. Designed by Lexington-based CMW Inc., the one-story, 72,000-s.f. building will have 100 beds. The contractor, D.W. Wilburn in Lexington, expects to complete work by early fall 2012.

Groundbreaking was held April 14 for Asahi Bluegrass Forge Corp. at a new Madison County site. Denham-Blythe Co. Inc. began construction of the $20.3 million, 70,000 s.f. facility in March and expects completion in November.Ashai Bluegrass Forge manufactures wheel-hub parts for the automobile industry.From left to right: John Cromika, Asahi Forge America; Mack Ishigaki, AsahiBluegrass Forge; Denis Steiner, Denham-Blythe Company, Inc.; Rita Smart, Ken-tucky State Representative; Mark Asahi, Asahi Forge Company; Seiichi Asahi,Asahi Forge Company.



KENTUCKY CONSTRUCTION

Construction is underway on a new 230-bed 300,000-s.f. hospital on the University of Kentucky’s Coldstream Research Campus in northwest Lexington.The $129 million facility will be the new home of 185-year-old Eastern StateHospital, which serves 80 Kentucky counties. It will provide inpatient psychi-atric treatment, forensic mental health services, and care for persons with braininjuries and psychiatric disabilities.

The $60 million St. Joseph – Mount Sterling hospital opened in mid-June. The 40 private bed, 114,000-s.f. hospital was built on a 30-acre campus.

A $44.8 million project on U.S. 460 at Wolfpit-Laurel Branch in Pike County is being constructed by Elmo Greer and Sons.

Work continues at Cardinal Hill Rehabilitation Hospital in Lexington on a $43million expansion. When completed, the three-story, 158,173-s.f. addition willbring the hospital’s bed capacity to 208.



WITH a flamboyant downgrade ofthe outlook for economicgrowth, jobs and profits, the

month-opening 280-point Dow plungeto launch the so-called June stock swoonis a warning shot across the bow.

The Dow tanked alongside a batch ofdismal economic data. The ISM manu-facturing index, ADP employment,Case-Shiller home prices and consumerconfidence are all pointing to 2 percentgrowth or less, rather than the kind of 5percent growth we ought to be gettingcoming out of a deep recession.

The economy now looks like a Gov-ernment Motors engine that’s stallingout. Or perhaps, with energy and foodinflation, and housing deflation at thesame time, the economy is acting like apinball machine on permanent tilt.

There’s a key message here: Big-gov-ernment stimulus never works.

First there was the massive BarackObama stimulus spending. Then QE1.And now QE2 is winding down. And whatdid we get for all this? Slower growth over-all, paltry job creation, more energy andcommodities inflation, continued housingdeflation, and virtually no new businessstart-up entrepreneurship.

We know the Obama spending pack-age failed to create a 7 percent to 8 per -cent unemployment rate, as advertised.And now we’re learning that the Fed’sQE2 has actually done more harm thangood.

All that money-printing stimulusworked to depreciate the dollar andjack-up commodity prices, especially oiland gasoline, but also food. So bothcompanies and consumers have beenpunished.

Some demand-side boneheads onWall Street want the Fed to move toQE3, allegedly to fight a stalling econ-omy. But if the central bank printsanother $600 billion or so, all that willdo is sink the greenback another 10percent and drive oil and gasolineprices higher and higher. And that, inturn, will slow business and consumerseven more.

The Japanese disaster is undoubtedlyplaying a role in the manufacturingslump — probably a bigger role thanmost economists predicted. Productionsupplies are scarce or nonexistent, espe-cially for autos and electronics, but alsofor many other sectors of the economy.

Then, of course, there’s all the badweather: hurricanes, tornadoes andfloods have depressed all kinds of eco-nomic activity here at home.

There also are jitters about the ongo-ing saga in Greece. The potential for aGreek bond default and various credit-agency downgrades are taking a toll onstock markets around the world.

But this whole boom-and-bust mone-tary policy, with its blatant disregard forKing Dollar, is a snare and a delusion.Stabilize the greenback by linking it togold. Then move to the supply-side:Slash individual and business tax bur-dens, roll back enormous regulatorycosts, and stop the merciless threat ofhigher future taxes.

If there was a serious pro-growthmovement in Washington to acceleratetax-reform overhaul and pin back regu-latory barriers like the National Labor

Relations Board war with Boeing, theEPA war against energy and the Oba-macare threats that are too numerous tocount, that just might revive the animalspirits. But what we know for sure is thatsmall businesses are barely hiring today,and that brand new startups are few andfar between.

What’s lacking here is confidence. No, we’re not going into a double-dip

recession. The most important indicatoris the Treasury yield curve, which is stillvery steeply sloped. And businesses areprofitable. Those profits have been thebackbone of what little growth we’ve hadin the last two years. And they’re themother’s milk of the stock market.

But the point is, without real growthpolicies, there’s not much to cheerabout in the market or the economy.We’re muddling along. It could even becalled a growth recession.

The June 1 280-point Dow drop is cryfor help. Is anybody listening? �

BONEHEAD STIMULUS NEVER WORKSThe current approach has burned companies and consumers alike

BY LAWRENCE KUDLOW

OPINION

Lawrence Kudlow is CEO of Kudlow& Co., an economic and investmentresearch firm in New York City.



David NovakYum! Brands

Paul DiazKindred Healthcare

Paul VargaBrown-Forman

Michael McCallisterHumana

Jean HaleCommunity Trust Bancorp

HIGHEST PAID CEOs IN KENTUCKYBy annual compensation; publicly held companies

COMPANY CEO ANNUAL COMPENSATION TOTAL COMPENSATION

Yum! Brands (YUM) David Novak $6,470,000 $14,610,000Brown-Forman (BF-B) Paul Varga 4,690,000 7,690,000Omnicare (OCR) John Figueroa* na naAshland (ASH) James O’Brien 3,120,000 8,870,000Humana Inc. (HUM) Michael McCallister 3,080,000 6,150,000Lexmark International (LXK) Paul Rooke 2,580,000 5,990,000Tempur-Pedic International (TPX) Mark Sarvary 2,200,000 3,220,000Kindred Healthcare (KND) Paul Diaz 1,340,000 4,750,000General Cable (BGC) Gregory Kenny 825,000 3,780,000PharMerica (PMC) Greg Weishar 736,174 2,580,000Papa John’s International (PZZA) John Schnatter 703,231 2,610,000Almost Family (AFAM) William Yarmuth 529,000 1,230,000S.Y. Bancorp (SYBT) David Heintzman 664,300 1,060,000Texas Roadhouse (TXRH) G.J. Hart 600,000 1,740,000Churchill Downs (CHDN) Robert Evans 512,500 7,370,000Boardwalk Pipeline Partners (BWP) Stanley Horton** na naCommunity Trust Bancorp (CTBI) Jean Hale 512,208 643,312Sypris Solutions (SYPR) Jeffrey Gill 510,436 668,742Delta Natural Gas (DGAS) Glenn Jennings 450,000 725,659Republic Bancorp (RBCAA) Steven Trager 429,100 471,389Bank of Kentucky (BKYF) Robert Zapp 375,166 476,976Farmers Capital Bank (FFKT) Lloyd Hilliard Jr. 320,288 343,155Investors Heritage Capital (IHRC.OB) Harry Waterfield II 253,355 626,735Industrial Services of America (IDSA) Harry Kletter 0 1.02MU.S. Computer Services (CSVI) Stephen Powless na na

Sources: Thomson Reuters, Salary.com*Appointed Jan. 1, 2011, compensation info not yet public. Predecessor’s annual comp $4.02M** Appointed May 11, 2011, compensation info not yet public. Predecessor’s annual comp $787,000

STOCK PERFORMANCE OF KENTUCKY’SLARGEST PUBLICLY HELD COMPANIESRanked by change in price from May 31, 2010 to May 31, 2011

COMPANY (TICKER) MAY 2009 MAY 2010 52-WEEK RANGE RETURNTempur-Pedic International (TPX) $33.20 $65.04 $25.56-65.14 95.9%Humana Inc. (HUM) 46.05 80.53 43.59-80.83 74.9%Kindred Healthcare (KND) 15.51 24.54 11.50-28.99 58.2%Bank of Kentucky (BKYF) 16.00 24.88 14.15-25.00 55.5%Yum! Brands (YUM) 40.95 55.32 38.25-56.98 35.1%General Cable (BGC) 31.16 41.75 21.68-49.32 34.0%Papa John’s International (PZZA) 24.83 33.13 22.51-34.75 33.4%Computer Services Inc (CSVI.PK) 20.75 27.65 19.15-29.75 33.3%Churchill Downs (CHDN) 33.53 43.68 30.33-46.45 30.3%Ashland (ASH) 53.61 68.34 42.77-69.46 27.5%Brown-Forman (BF-B) 56.83 72.48 54.25-73.73 27.5%Omnicare (OCR) 25.11 31.44 19.14-33.01 25.2%Ventas (VTR) 46.95 56.40 44.29-57.45 20.1%Texas Roadhouse (TXRH) 14.60 17.23 11.94-18.52 18.0%Delta Natural Gas (DGAS) 29.20 31.74 26.34-33.99 8.6%S.Y. Bancorp (SYBT) 23.44 24.56 22.49-25.80 4.8%Boardwalk Pipeline Partners (BWP) 27.85 29.10 27.04-34.23 4.5%Community Trust Bancorp (CTBI) 26.82 27.48 24.50-30.35 2.5%Farmers Capital Bank (FFKT) 6.82 6.72 4.50- 7.89 -1.5%Republic Bancorp (RBCAA) 23.15 20.46 16.81-26.44 -11.6%Sypris Solutions (SYPR) 4.43 3.91 2.89- 6.20 -11.7%Almost Family (AFAM) 36.37 30.21 23.50-40.76 -16.9%Lexmark International (LXK) 37.55 29.78 28.39-48.07 -20.7%PharMerica (PMC) 16.01 12.34 6.88-16.45 -23.0% Industrial Services of America (IDSA) 16.87 10.47 9.23-21.18 -37.9%

Source: bloomberg.com; reuters.com

THE LANE LIST



THE Kentucky Artisan Center atBerea and five other Berea attrac-tions are featured in Midwest Liv-

ing magazine’s 2011 Best of theMidwest® travel edition. This publica-tion highlights editors’ top pick traveldestinations throughout the Midwest. Inrecommending Berea, the editors pointto Berea’s “centuries-old crafts culture,”which has earned it the title of Folk Artsand Crafts Capital of Kentucky.

The editors recommended visitingthe Kentucky Artisan Center at Berea to“get an overview of the extensive localcrafts.” Other recommended Berea

locations include the Berea WelcomeCenter, Berea College, The Boone Tav-ern Hotel and Restaurant, Main StreetCafé, and Snug Hollow Farm.

“We are proud to be among themany attractions that make Berea, Ky., avery appealing and unique destinationfor Kentuckians as well as travelers fromaround the country,” said VictoriaFaoro, executive director of the Ken-tucky Artisan Center at Berea.

The Kentucky Artisan Center atBerea is an agency in the Tourism, Arts& Heritage Cabinet of the Common-wealth of Kentucky.

SPOTLIGHT ON THE ARTS

Lori Meadows is executive directorof the Kentucky Arts Council.

Arts Events Around the StateCelebration! Studio Art Quilt Asso-ciates (SAQA)National Quilt Museum, PaducahThrough July 12quiltmuseum.org(270) 442-8856

Kentucky Guild of Artists & Craftsmen: Works by JuriedMembersKentucky Artisan Center at Berea8 a.m.-5 p.m. through Aug. 20 kentuckyartisancenter.ky.gov (859) 985-5448

“Annie”Jenny Wiley Theatre, Prestonsburg8:15 p.m. June 24-26jwtheatre.com(606) 886-9274

Love and Things Like Love and Interior ResurfacingLexington Art League Loudon House, LexingtonThrough July 10lexingtonartleague.org(859) 254-7024

“Ain’t Misbehavin’” Music Theatre LouisvilleThe Kentucky Center for the Performing ArtsBomhard Theater, Louisville7 p.m. June 24-July 2 kentuckycenter.org(502) 562-0100

Want to know more?For details about arts and cultural eventsand activities taking place in Kentucky, visit artscouncil.ky.gov.

Kentucky Artisan Center at Berea NamedBest of the Midwest Travel Destination

KAC Offers Cultural District Certification Public Work of ArtUnveiled at

KFC Yum! CenterCOMMONWEALTH communities of all sizes and demographics are encour -aged to apply to the new Kentucky Cultural District Certification Program,developed to stimulate and promote local cultural, economic, community and

social assets.Certification can mean increased tourism marketing and economic activity via a

branded state program. Cultural district committee members will receive trainingand professional development; technical assistance from partner state agencies andnational experts in arts and cultural economy; access to grant and incentive oppor -tunities; and assistance with planning signature events (such as galler y hops, down-town open houses and festivals).

More than 100 U.S. cities have implemented or are planning cultural districts –positioning the arts and culture as a center of revitalization efforts. A cultural districtis a well-recognized, labeled, mixed-use area of a community featuring a high con-centration of cultural amenities that attract local residents and visitors alike.

The Kentucky Arts Council will offer an information session for interested com-munities along with technical assistance in developing an application. Letters ofintent are due July 1.

Guidelines, instructions and application are available at 1.usa.gov/kacCulturalD-istricts. Contact Chris Cathers, program branch manager , at [email protected] or (502) 564-3757, ext. 474.

THE Louisville Arena Authorityhas unveiled “Further,” a publicwork of art by Al Price of Al Price

Studio in Phoenix, Ariz., at the KFCYum! Center. The three-dimensionalstainless steel sculpture was commis-sioned by the Arena Authority forapproximately $213,000. It is suspendedfrom aircraft cable that spans 200 feetalong the west side of the facility on theMain Concourse.

“ ‘Further’ is an outstanding work ofart that beautifully blends with thespace and overall design of the KFCYum! Center,” said Dan Ulmer, chair ofthe construction committee for theLouisville Arena Authority. “We applaudMr. Price’s insightful and creativedesign that captures the spirit of the cityand modern feel of Louisville’s neweststate-of-the-art arena.”

“I am very pleased to see ‘Further’ inits official home,” said Lori Meadows,executive director of the Kentucky ArtsCouncil and chair of the Artist SelectionCommittee. “It has been a pleasure tobe part of the process, from its begin-ning to selecting the final design thatwill be viewed and enjoyed by patrons ofthe KFC Yum! Center.”

The sculpture can be seen during allevents at the KFC Yum! Center.


IF he were still alive, Bill Monroewould be 100 years old on Sept. 13,2011. Unfortunately for the world of

music, he passed away in 1996, just a fewdays short of his 85th birthday. Folksfrom around the world have such rever-ence for this Rosine, Ky., native remem-bered as the “Father of Bluegrass Music”that they’ll be flocking to Western Ken-tucky to celebrate the date anyway.

Come September, both the Interna-tional Bluegrass Music Museum(IBMM) at RiverPark Complex inOwensboro and the Bill Monroe Home-place in Rosine are partnering to rollout one amazing musical welcome mat.The event will feature a series of masterconcerts presenting as impressive a ros-ter of bluegrass performers as you’relikely to see gathered in one place, com-memoratory activities in the housewhere Monroe learned his licks, andjamming in every available corner fromdawn till dusk and way beyond.

On Saturday, Sept. 10, Rosine willremember its favorite son with a glanceback to young Bill’s era during Home-place Life Day at the family farm, wherecostumed guides will ply old-fashionedtrades and crafts. That Sunday, a rever-ent tour of the Rosine MethodistChurch, the site of Monroe’s funeral,will be followed by a gospel ser vice andmusic at Rosine City Park.

And on Tuesday, his actual birthdate,fans can toast the master of pickin’ witha slice of birthday cake and a side ofbluegrass jamming.

But it will be from Sept. 12-14, whenfestivities roll about 45 minutes downthe road to Owensboro, that history willbe made. During the museum’s BillMonroe Centennial Celebration, everyactive member of the Bluegrass Hall ofFame and their bands will perform in aseries of concerts. Honored guestsinclude many of the earliest bluegrassmusicians and the Blue Grass Boys, whoplayed with Monroe in his band. A num-ber of those, such as Lester Flatt, EarlScruggs, Stringbean (David Akeman)and Del McCoury, became bluegrasslegends in their own right.

“This will be the biggest lineup ofbluegrass bands in histor y,” saidGabrielle Gray, the museum’s executivedirector. “It will take three days to getthat many bands onstage.”

Along with these all-star perform-ances, there will be two stagings of anoriginal musical, “The Life and Times ofBill Monroe;” a display of BluegrassBoys’ memorabilia; an exhibit of theworks of artists who were influenced byMonroe; and two other Centennialexhibits already on display. In addition,a documentary eight years in the mak-ing will premiere in which, throughtheir own memories and tales, the musi-cians who knew him best create a large-as-life Monroe in a remarkable film.

Monroe was the youngest of eightchildren born to a music-loving farmfamily in Rosine. Early on, he becameproficient on mandolin, guitar andvocals and in 1934 joined two other sib-lings to form the Monroe Brothers, butsoon replaced them with a larger stringensemble named the Blue Grass Boys.By 1939, he had been inducted into theGrand Ole Opry in 1939 and for thenext 50 years, Monroe combined hisinspirations with the talents that passedthrough his band to create and moldthe bluegrass sound celebrated today.

Actually, the Bill Monroe 100thBirthday Celebration is a yearlong trib-ute to bluegrass music and a lively obser-vance of the influence this homegrowngenre has had across the globe. SinceJanuary, bluegrass festivals and centen-nial events have kept fingers pickin’ andtoes tappin’ across the commonwealthand will continue through the fall.

One of those, the Rosine Barn Jam-boree, has been going on for years in abig ol’ barn on the National Register of

Historic Places, where music and danc-ing hold sway every Friday at 7 p.m.

Progressive bluegrass bands take theRiverPark stage June 23 through 25 atthe IBMM’s annual ROMP (River ofMusic Party) rather than traditionalgroups, as the latter will have scads ofstage time in September.

“We wanted to illustrate the broadinfluence that bluegrass has had onacoustic music as we know it today,”Gray explained.

One of only a scant handful of musicalgenres original to America, bluegrass hasa sound that originated from a meltingpot of world music – Scotch-Irish, African,jazz, black and white Southern gospel,and blues – that Monroe blended into anexciting new form, named for his ownband. That, in turn, has given birth toother musical styles as progressive, old-time and jazz bands, which explains thebroad appeal of bluegrass and the rever -ence given the talented Monroe.

“You know, I never wrote a tune in mylife,” he once said. “All that music’s in theair around you all the time. I was just thefirst one to reach up and pull it out.”

To learn more about this remarkableman, his music and the festivities hon-oring him, peruse the sidebar websites.

Even if you can’t make it to WesternKentucky in September, you can still bea part of the action. Across the state onSept. 13th, bluegrass music lovers inevery city, hill town and hollow areasked to go outdoors and sing Monroe’s“Blue Moon of Kentucky” exactly at“high lonesome” noon CST (Monroe’shome time zone) to pay homage to thisgreat musician and beloved Kentuckian.Start practicing now! �

Katherine Tandy Brown is a correspondent for The LaneReport. She can be reached at [email protected].


EXPLORING KENTUCKY

High Lonesome Turns 100Kentucky kicks into celebration mode to honor Bluegrass great Bill Monroe

BY KATHERINE TANDY BROWN

The late Bill Monroe is considered the “Father of Bluegrass Music.”

Share a Slice of Bluegrass CakeBill Monroe 100th Birthday Websitebillmonroe100birthday.com

Bill Monroe Homeplace (Rosine)(270) 274-9181jerusalemridgefestival.org

International Bluegrass Music Museum(Owensboro)(888) MY-BANJO (692-2656)bluegrass-museum.org

Ohio County Tourism Commission(270) 274-1090visitohiocountyky.org

Owensboro-Daviess County Conventionand Visitors Bureau(800) 489-1131visitowensboro.com



Francisco’s Farm Invitational Fine Art and Craft FestivalEquus Run Vineyards1280 Moores Mill RoadMidwayJune 25-26, 10 a.m.-5 p.m.franciscosfarm.org

Held on the beautiful Midway College cam-pus, this annual fine arts and crafts fair fea-tures 150 artists from 15 states, live music,children’s art activities, a public art project,and Francisco’s Gallery - an exhibition of theArtistic Wealth of Woodford County. Admis-sion is $5 per car; Saturday visitors can returnon Sunday for free.

The Search for Shaker TreasuresShaker Village of Pleasant Hill3501 Lexington Road, HarrodsburgJune 25, 10 a.m.-4 p.m.(800) 734-5611shakervillageky.org

Ever wonder about the history, craftsmanship,and background of the candle stand in yourliving room? Did your grandma hand downan old rocking chair with stories that it wasmade by the Shakers? Bring in your Shakerfurniture, seed boxes, chair tape, photos andother artifacts for authentication and infor -mal appraisal by a leading Shaker authority .There is no charge for the event.

15th Annual Duncan Hines FestivalVarious locations in Bowling GreenJuly 8 & Aug. 12(270) 703-9145duncanhinesfestival.com

Selected in 2010 as a top event by the South-east Tourism Society, this event includes aconcert in the park, an art exhibit, Adven-tures in Good Baking Contest and the ver ypopular Uncle Duncan’s Duck Derby! Pro-ceeds from the event benefit a number ofnonprofit agencies.

10th Annual Forecastle FestivalBelvedere Festival PlazaLouisvilleJuly 8-9forecastlefest.com

The Forecastle Festival combines the hardestworking Midwest bands, legions of emergingartists and multitudes of progressive environ-mental organizations into one festival that’ sall about music, art and activism. Check outthe website for goings on at this event that wasnamed “one of the top 101 things to do inAmerica” by Spin magazine, and recentlyhailed by The Discovery Channel as the “thecream of the crop” of Midwest festivals.

75th Lexington Junior League Charity Horse Show338 Blueberry RoadThe Red MileLexingtonJuly 11-16(859) 252-8014lexjrleague.com

Held at the historic Red Mile Racetrack, theLexington Junior League Charity Horse Showis the first leg of the American SaddlebredTriple Crown. Nearly 1,000 exhibitors travelfrom all over the world to compete for$70,000 in prize money at the world’ s largestoutdoor Saddlebred horse show.

Upcoming Events across Kentucky



Back to Work: Job Growth in the Forecast

MANY in business and economicsbelieve that as Louisville goes,so goes Kentucky , and it’ s

largely true. Roughly a fourth of all Ken-tuckians live in Jefferson County, andthousands of others commute theredaily to work.Louisville is ourprimary eco-nomic engine.

As such, it wasgood news earlythis month whenUniversity ofLouisville econo-mist Paul Coomesadvised that heexpects the 13-county Louisvillearea to create10,000 jobs thisyear, according toa Courier-Journal report on his eco-nomic forecast testimony to LouisvilleMetro council members preparing theirfiscal 2012 budget.

Coomes, one of Kentucky’s foremosteconomic analysts, said manufacturing,professional services and the hospitalityindustry will generate the most jobs in the13-county Louisville metro area – nineKentucky and four Indiana counties.

Calling his forecast “the best eco-nomic news Louisville has had” in sev-eral years, Coomes told council

members the area had lost nearly30,000 jobs since 2000 even thoughthere had been gains in education, gov-ernment and healthcare during thedecade. Those gains were offset by theloss of 32,000 manufacturing and10,000 retails jobs, especially after thedeep recession and financial crisisstruck in 2008.

Kentucky and Louisville in particularare seeing significant job growth inmanufacturing, which is turning into abright spot for the still-weak U.S. econ-omy. Ford Motors plans to hire 1,800more workers for it Louisville AssemblyPlant, which is undergoing a $600 mil-lion renovation that will make it themost advanced and flexible productionsite anywhere.

Ford’s commitment last December tonot only maintain but expand its majoroperations here is attracting more mem-bers to the commonwealth’s 400-strongvehicle supplier sector. GM’s recentlyannounced $130 million upgrade andexpansion in Bowling Green is having asimilar effect. Toyota is hiring severalhundred more workers in Georgetown.

Meanwhile, General Electric has addedhundreds of assembly workers in Louisvilleof late to manufacture new, more efficientgenerations of appliances.

But Ford, GE and GM are only themost prominent members of many man-ufacturers being attracted to Louisville

and elsewhere in Kentucky by skilledand dedicated work force and a com-petitive economic development incen-tive program in Frankfort.

And the better news on recent andanticipated job growth is the positiveripple effect it creates. Payroll growthputs more money into circulation for allbusinesses, and it will begin relievingthe massive fiscal headache state andlocal public officials have had the pastfew years.

The Courier-Journal’s report states thatoccupational and business net profits taxesaccount for 53 percent of general funddollars in Mayor Greg Fischer’s proposed$503 million budget. The Lane Report’scover story in March 2010 was about thefiscal difficulties local governments all overKentucky were facing as a result of joblosses. Public officials across the state havecut and rebalanced their budgets multipletimes since.

The tide is coming back in, however.State government reports tax receiptsrunning 5 percent ahead of expecta-tions for fiscal 2011. Coomes toldLouisville officials to expect 3.1 percentgrowth in occupational license revenuefor 2012.

And that’s very encouraging news forall Kentuckians: An estimated 40 centsof each tax dollar collected in JeffersonCounty flows out to the rest of the state.Let’s get to work.

Paul Coomes, Economist, University of Louisville

The RealDaniel Needham

AN incorrectphoto waspublished

earlier in the yearof Daniel Need-ham, managingdirector of Assur-ance InvestmentPartners, which isparent companyof Arison Insur-ance Services. Thephoto used was

indeed Daniel Needham, but it wasthe wrong Daniel Needham. Sorr yabout that, everyone.

Daniel Needham

Kozarovich Joins The Lane Report

VETERAN journalist and mediapublisher Steve Kozarovich hasjoined Lane Communications

Group as associate publisher in thecompany’s Louisville office.

Kozarovich most recently served aspublisher and executive editor of The NewAlbany (Ind.) Tribune and Southern IndianaBusiness Source magazine. As a member ofthe media for more than 15 years,Kozarovich managed newsrooms inLouisiana, Connecticut, Indiana and NewYork. Staff in each state were each hon-ored with a press association’s or com-pany’s “Newspaper of the Y ear”recognition – a reflection of overall qual-ity and public service.

“We’re excited to add an experi-enced and accomplished publishing vet-eran like Steve to our team. He willimprove our presence in Louisville andhelp us better serve our clients in Ken-tucky’s largest and most vibrant mar-ket,” Publisher Ed Lane said.

“As an avid reader of The Lane Reportduring my publishing role in Southern

Indiana, I’m excitedto offer my skills tothe team of such ahighly respectedand quality organi-zation,” Kozarovichsaid. “A bonus ishaving the opportu-nity to continueworking and livingin this region thatI’ve come to loveduring the last six years.”

Steve and his wife Lisa, a long-timejournalist and Louisville native, haveone daughter.

Lane Communications publishs TheLane Report, a monthly statewide busi-ness magazine; BG – A Way of Life maga-zines in Louisville and Lexington,featuring content for emerging leadersand young professionals; and a varietyof business-to-business and specialtypublications. The Lane Report began pub-lishing in 1985.

Steve Kozarovich

Commentary on KentuckyPASSING LANE



Arecent New York Times feature article “36 Hours in Louisville” [see it athttp://tiny.cc/ix9hr ] shines the national spotlight on some of the many pos-sibilities found in our fair state’ s largest city. As the article says, “Louisville

retains its easy charm – a glass of fine bourbon and good conversation aren’t hard tofind.” Among the business entities mentioned are:

Hillbilly Tea; The Muhammad Ali Center; Churchill Downs; Actors Theatre ofLouisville; Kentucky Center; Louisville Orchestra; Louisville Ballet; Hard Rock CafeLouisville; Seelbach Hilton Louisville; Heine Brothers’ Coffee; 21C Museum Hotel;and Brown Hotel.

We’re sure readers of The Lane Report have known how fascinating our state’slargest city is for a long time. Glad to hear the folks in the Big Apple are figuring itout also, and spreading the word via what many people consider our national news-paper of record. And the rest of the state’s not bad, either!

Louisville Featured in NYT Travel Section

OUR annual Kentucky Blue Chip 25 list, which appearedin the May issue, has been remiss in not including amajor corporation in the commonwealth business

community, PharMerica Corp. Spun off from Kindred Healthcare

in 2007 as a result of a merger withAmerisourceBergen Corp., the

Louisville-based entity is a leading institutional pharmacy companythat services facilities mostly in the long-term healthcare sector. Italso provides pharmacy management services to hospitals.

PharMerica (NYSE: PMC) is a Fortune 1000 operation with rev-enue of $1.847 billion for 2010, ranking it the ninth largest pub-licly held company based in Kentucky. That’s pretty darn big.

Net income for 2010 at PharMerica was $19.2 million. Itsmarket capitalization is $344.65 million. Greg W eishar is CEOof PharMerica, which operates 97 pharmacies in 43 states. Leav-ing PharMerica off the Top 25 list was a hard pill to swallow.

Another Blue Chipper

INCORRECT revenue and net income figures forBrown-Forman were included in our Kentucky BlueChip 25 list in the May issue of The Lane Report. The

Louisville-based wine and spirits giant had revenue of$3.226 billion in fiscal year 2010 and net income of$449 million.

Brown-Forman’s rank as the eighth-largest publiclyheld Kentucky-based company was correct, as was all theother information for the company in our list.

Brown-Forman’s fiscal year ends on April 30, a detailthat apparently was not appropriately taken intoaccounty by our usually reliable source of financialinformation for publicly held companies.

Brown-Forman Income:The Rest of the Story

CONGRATULATIONS to two Ken-tucky schools for being namedamong the Top 100 Social Media

Colleges in the United States. UKjumped five slots in the newest rankingsto No. 6, while Transylvania University isalso in the top 100 at No. 92.

Berea College had been No. 94 inthe previous rankings.

The StudentAdvisor.com site rank-ings compare more than 6,000 federallyrecognized U.S. colleges and universi-ties and post-secondary schools in termsof their mastery of public social mediamethods, tools and websites. It looks athow active and effective each school isat engaging their audiences on Twitter,Facebook, YouTube and other socialmedia tools, such as iTunes and pod-casts, taking into account the size ofeach school and other metrics to gaugeoverall reach and effectiveness.

The evaluators especially liked UK’sSeeBlue interactive virtual tour. It ispretty cool; check it out atseeblue.com/?partner=uky#/home.

UK Ranks 6th inTop 100 Social Media

Colleges in Nation

The Top 10 Social Media Colleges1. Johns Hopkins University2. Harvard University3. University of Notre Dame4. Columbia University (New York)5. Ohio State University6. University of Kentucky7. Stanford University8. Emerson College (Boston)9. Louisiana State University

10. U.S. Military Academy (West Point)



KENTUCKY PEOPLE

Eleven Senior PGA champions and PGA champions continued a longstandingtradition during the Champions’ Dinner the evening of May 24 at The Muham-mad Ali Center in Louisville. Defending Senior PGA Champion Tom Lehman(seated, immediate left of the Alfred S. Bourne Trophy) hosted the dinner, whichwas attended by: (front row, from left) Mark Brooks (1996 PGA Champion),Jay Haas (2006 and 2008 Senior PGA Champion), Hale Irwin (1996, 1997,1998 and 2004 Senior PGA Champion), Mike Reid (2005 Senior PGA Cham-pion), and Michael Allen (2009 Senior PGA Champion). (Back row, from left)Fuzzy Zoeller (2002 Senior PGA Champion), John Jacobs (2003 Senior PGAChampion), Denis Watson (2007 Senior PGA Champion), Larry Nelson (1981and 1987 PGA Champion) and Hal Sutton (1983 PGA Champion).

STATE: STUDENT COMPETITION HELPSIDENTIFY KENTUCKY ENTREPRENEURS

The Kentucky Cabinet for Economic Development awarded $100,000 in prizemoney this spring to state university students who developed plans for 20 newKentucky companies as part of the fourth annual “Idea State U.” The goal of thecompetition, which drew approximately 75 students from all eight Kentucky pub-lic universities, is to identify and support the next generation of Kentucky inno-vators and entrepreneurs. Cuddle Clones, a UofL College of Business team tookfirst place in the graduate division this year’s event. Pictured here (left to right)are Cuddle Clones team members Jennifer Graham, Adam Greene, Erich Squireand Jillian Himler.

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SOMERSET: PAUL DUNNINGTON HONOREDWITH SKED ‘DIFFERENCE MAKER’ AWARD

Hundreds of people from across Southeast Kentucky gathered last month to honor Wayne County native and community leader Paul Dunnington for his 25 years of consecutive service to the Southeast Kentucky Economic Development Corp. Dunnington is one of the original members of the SKEDboard of directors and has held every office on the SKED executive committee,including being elected president twice. U.S. Representative Hal Rogers (left),who created SKED in 1986, presented the Hal Rogers Difference Maker Award to Dunnington at the celebration, which was held at The Center forRural Development in Somerset.

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LEXINGTON: ACS PRESENTS COLLEGESCHOLARSHIPS TO KENTUCKY STUDENTS

LOUISVILLE: PGA SENIOR ELITE GATHER AT THE ALI CENTER CHAMPIONS DINNER

Five Kentucky students have been awarded college scholarships from ACS aspart of the business process outsourcer’s partnership with The Winners For LifeFoundation. Each of the five students will receive $1,000 per semester, with amaximum total award of $4,000, to attend Bluegrass Community and TechnicalCollege. During the past three years, ACS, which is one of Kentucky’s largest private employers, has raised more than $50,000 to assist students attendingBCTC. Pictured here at the award presentation are (l-r) Veronica Hall; Connie Harvey, ACS group president; Kendra Slusher; Ann Vezina, ACS grouppresident; Brookelyn Ponder; Dylan Lake; and Dr. Augusta Julian, president of Bluegrass Community and Technical College. Also receiving a scholarship but not pictured is Seth Pittman.

ACS photo




Documents

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