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KENTUCKY BRIDGES, NATIONAL IMPACT Enhanced Ohio River crossings will alleviate U.S. transportation and commerce chokepoints Page 24 TOURISM & AUTO MANUFACTURING LaneReport APRIL 2010 $4.50 KENTUCKY’S BUSINESS NEWS SOURCE FOR 25 YEARS The ® LANE ONE-ON-ONE: MARCHETA SPARROW Secretary of Tourism, Arts, and Heritage Cabinet lanereport.com

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KENTUCKY BRIDGES, NATIONAL IMPACT

Enhanced Ohio River crossings will alleviate U.S. transportation and commerce chokepoints

Page 24

TOURISM & AUTO MANUFACTURING

LaneReportA P R I L 2 0 1 0 $ 4 . 5 0K E N T U C K Y’S BU S I N E S S N E W S S O U RC E F O R 2 5 Y E A R S

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LANE ONE-ON-ONE: MARCHETA SPARROWSecretary of Tourism, Arts, and Heritage Cabinet

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2 FEBRUARY 2010 KYBIZ.COM • THE LANE REPORT

Kentucky’s Business News Source For 25 Years Volume 25 Number 4

APRILLaneReportThe

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24 COVER STORY: KENTUCKY BRIDGES, NATIONAL IMPACTEnhanced Ohio River crossings will alleviate U.S. transportation and commerce chokepoints

28 PUTTING RECALLS IN THE REARVIEW MIRRORToyota gives its top Kentucky executive St. Angelokey quality control oversight role for company

32 LUXURY & SOPHISTICATIONSix Kentucky hotels rate one of AAA’s highest stamps of approval for service with style

34 VISITORS STILL MAKING WAVESOut-of-state rivals’ claims of Lake Cumberland’sdemise are greatly exaggerated

FEATURES

ON THE COVERThe sun rises March 30 on the Clark Memorial Bridge between Louisvilleand New Albany, Ind. The Ohio River Bridges Project now moving forwardwill add 12 new traffic lanes across the river in and near downtown Louisville.The project will relieve congestion for Louisville and Southern Indiana, andimprove commerce from Gary, Ind., to Mobile, Ala.Ralph Homan photo

2010®

KENTUCKY BUSINESS NEWSAVAILABLE ONLINE

DEPARTMENTS4 Perspective

6 Fast Lane

16 Interstate Lane

17 Kentucky Intelligencer

18 Corporate Moves

19 On the Boards

20 Lane One-on-One:Marcheta SparrowSecretary of the Tourism, Arts and Heritage Cabinet

36 Marketing

37 Economic Commentary

38 Spotlight on the Arts

39 The Lane List

40 Exploring Kentucky

42 Passing Lane

44 Kentucky People

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4 APRIL 2010 KYBIZ.COM • THE LANE REPORT

WHILE the word “integrity” is abit difficult to define, we allknow what it means when we

see it. And we saw it recently when Ken-tucky U.S. Sen. Jim Bunning stoodalone on the Senate floor to object towhat he knew was an illegitimate

attempt to pass a new spending bill with-out providing the money to pay for it.He and the entire Senate knew that themeasure containing extended unem-ployment benefits and transportationprojects would pass, but that was not thequestion at hand.

The question at hand was whetherthe Senate would obey the law and pro-vide the money to fund the legislation,as is required by a very recent mandatesigned into law by the president. Therequirement, known as “Pay Go,” pro-vides that any future spending legisla-tion must be accompanied by necessaryfunds to pay for implementation. Inother words, new spending shall nolonger be placed on the nation’s creditcard to burden future generations.

Apparently Sen. Bunning takes hisoath of office seriously when it comesto supporting the Constitution and thelaws of the land. Too many in publicoffice today demonstrate a more cava-lier attitude about the Constitutionand the laws of the land, especiallywhen presented with opportunities topass out favors to special constituencieswithout regard to where the money willcome from. Bunning, former MajorLeague baseball pitcher, member ofthe U.S. House of Representatives andstate legislator, has a history of beingunafraid to stand for what is right –irrespective of political consequences.

Years ago in the Kentucky State Sen-ate, he stood on the floor to chastise

colleagues for their support of the infa-mous “Greed Bill ,” which grantedextraordinary retirement income ben-efits to special groups of state legisla-tors. While it did not set well with hiscolleagues, he knew it was the properposition and his integrity commandedhim to stand up for principle andagainst the elitist self-interests.

Congress and the administration mustgrow some backbone in facing up to theirfolly and fantasy of explosive spendingwithout any ability to pay for it. It demon-strates a complete lack of integrity andplain good sense to continue this agendaof dependency and profligate expansionof government. Croesus himself could notafford the outrageous spending and gov-ernment expansion presently occurring inWashington.

There is no need for all things tocome from government or for all thingsto come under the control and power ofgovernment. In fact, government has away of strangling good community ini-tiatives with layers of rules and regula-tions. America is a great countr y, notonly because of the genius of itsfounders in developing our Constitu-tion but also because of the helpingspirit of our country’s civic volunteers.

History is replete with legions of pri-vate citizens who have built andstrengthened communities for genera-tions. Some are unknown outside theirown communities, yet their footprintsloom large as they have guided, liftedand uplifted the civic lives of othersaround them.

Businesses, corporations and individu-als performing acts of civic kindness andcharity impact how all of us live and workevery day. They leave a legacy of volun-teerism and fulfillment of social responsi-bility to their communities in Kentuckyand America. No government commandsthese things and no government can repli-cate them. In a culture that emphasizesliving for the moment, they affirm anolder and more lasting set of priorities. Ascitizens, we need to stand with these peo-ple and these values. They are the founda-tion of our free society.

Integrity commands that budgets bebalanced, whether for families or gov-ernments. And it commands that prom-ises be kept and that oaths be takenseriously. It commands forthrightness,fairness and personal responsibility. Acountry cannot endure unsustainabledebt and uncontrolled spending for-ever, and Americans must choose theirpolitical leaders from among those whounderstand this axiom. ■

SUPPORTING THELAWS OF THE LANDNation needs leaders who arewilling to risk power for principles

BY PAT FREIBERT

PERSPECTIVE®

Kentucky’s Business News Source for 25 Years

EDITORIAL DIRECTOR

Mark Green

ASSOCIATE EDITOR

Karen Baird

CREATIVE DIRECTOR

Jessica Merriman

CORRESPONDENTS

Amanda Arnold; Rena Baer; Shannon Leonard Boone;

Katherine Tandy Brown; Patrice Bucciarelli;Anne Charles Doolin; Debra Gibson;

Susan Gosselin; Carl Heltzel; Feoshia Henderson;Kara Keeton; Meredith Lane; Nancy Miller;

Dennis O’Connor; Robin Roenker; Robyn Sekula; Eddie Sheridan;

Don Ray Smith; Gary Wollenhaupt

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Stone Advisory

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■PUBLISHER

Ed G. Lane

ASSOCIATE PUBLISHERS

Dick KellyRobin LachapelleDonna Hodsdon

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CIRCULATION

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Lane Communications Group is a member of

The Lane Report is published monthly by:Lane Communications Group

201 East Main Street 14th FloorLexington, KY 40507-2003 [email protected]

For more information and advertising rates contact:

PHONE: 859-244-3500 FAX: 859-244-3555

The annual subscription rate is $29. (Kentucky residents add $1.74 sales tax.)

Newsstand price is $4.50.

Send check or money order to: Circulation Manager

THE LANE REPORT

201 East Main Street 14th FloorLexington, Kentucky 40507-2003

THE LANE REPORT corrects all significant errors thatare brought to the editors’ attention.

© 2010 Lane Communications Group

All editorial material is fully protected and must not bereproduced in any manner without prior permission.

LaneReportThe

Pat Freibert ([email protected]) is a former Kentuckystate representative from Lexington

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6 APRIL 2010 KYBIZ.COM • THE LANE REPORT

A compilation of economic news from across Kentucky

FAST LANE

SIGNATURE HealthCARE, a long-term health-care facility operator based in Palm Beach Gar-dens, Fla., has announced that the company is

moving its national headquarters to Louisville.The move will initially create 96 new jobs in the

commonwealth and is expected to grow to morethan 120 jobs with an average annual wage of morethan $75,000, excluding benefits.

Signature currentlyemploys nearly 11, 000 andoperates 66 long-term health-care facilities in seven South-

eastern states, 17 of which are located in Kentucky.In announcing the company’s decision to relocate, Signature

President and CEO E. Joseph Steier III noted that Louisville pro-vides a central location, rich university partnerships and a strongtalent pool to fuel aggressive company growth.

Signature has partnered with Nucleus, the University ofLouisville’s driving force behind a life sciences hub in down-town Louisville, to create the International Center for LongTerm Care Innovation. The center, which will be the first of itskind in the nation, will house and assist in the development ofearly-stage health technology and services companies that are working to bring newideas to the aging care industry.

Signature is also planning to start a think tank at its corporate headquarters,which will use faculty from UofL to produce white papers and best practices on deal-ing with geriatric and aging adults.

LOUISVILLE: SIGNATURE HEALTHCARE ANNOUNCES PLANSTO ESTABLISH NATIONAL HEADQUARTERS IN LOUISVILLE

DELTA Air Lines’ recent announcement that itwill consolidate its flight operations at theCincinnati/Northern Kentucky International

Airport (CVG) into a single concourse will result in thecarrier no longer requiring the ser vices of RegionalElite Airline Services, a Delta subsidiary that has beenproviding ground handling and customer service func-tions for Delta at CVG.

With the consolidation, Delta employees willassume full handling responsibilities of all Delta andDelta Connection flight activity at CVG as of May 1 and840 Regional Elite jobs at CVG will be eliminated.

However, Gil West, senior vice president of airportcustomer service for Delta, noted that with Deltaassuming all handling operations at CVG, the Atlanta-based carrier will be increasing its staffing and saidRegional Elite employees would be given preferentialconsideration the new positions.

West said the consolidation does not change thetotal number of departures Delta offers out of CVGbut does “eliminate the large peaks and valleys associated with today’s structure” andwill improve Delta flights schedules to the major East Coast business markets.

“This change is not a negative reflection on the Regional Elite Ser vices team inCVG, but yet another step in a series of changes we have made to optimize the net-work and work to return the CVG hub to profitability,” West said. “In addition, Deltahas made a commitment to do everything possible to avoid involuntary furloughs ofmainline frontline employees and we continue to honor that commitment.”

HEBRON: DELTA’S CONSOLIDATION OF OPERATIONS ATCVG RESULTS IN LOSS OF 840 JOBS FOR SUBSIDIARY

CITING the strain of lower patientvolumes combined with an increasein uninsured patients, Jewish Hos-

pital & St. Mary’s HealthCare is eliminat-ing 500 positions, according to a report byThe (Louisville) Courier-Journal.

The job cuts represent approxi-mately 6 percent of the company’s total8,100-member workforce.

Company officials said that of the 500positions being eliminated, some 250 jobswill be eliminated through attrition andproductivity improvements.

Janice James, transitional CEO of thehospital system, told The Courier-Journalthat the cuts are part of a companywideplan to save more than $55 million.

Although the recently announcedcuts will affect all areas of the company,those employees who work most closelywith patients will be affected to a lesserextent, James said.

The Jewish Hospital & St. Mary’sHealthCare system encompasses 71healthcare facilities, including hospitals,behavioral health, assisted living, homehealth care, outpatient care, nursinghome care, occupational health andrehab medicine.

“Our volumes are down, and as far aswe can tell that is a trend across thecountry,” James said. “We are not in thisalone. But it’s still a difficult manage-ment decision to have to go through.”

Last year, the company implementeda cost-cutting plan that included con-trolling employee overtime hours andclosing a unit at Frazier Rehab Institute.

Results of a recent survey conductedfor the Foundation for a Healthy Kentuckyreveal that one third of adult citizens inKentucky do not have health insurance.

LOUISVILLE: 500 JOBS TO BEELIMINATED AT JEWISH &ST. MARY’S HEALTHCARE

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

Color photographs are preferred,either in standard form or digital. Fordigital photographs, a resolution of300 dpi is required, formatted ineither jpeg or tif.

Signature H

ealthCare photos

Four Courts at Cherokee Park inLouisville is one of the 66 long-ter mhealthcare facilities operated bySignature HealthCARE.

Joe Steier, presidentand CEO of SignatureHealthCARE

As part of the company’s effort toreturn its operations at theCincinnati/Northern KentuckyInternational Airport to profitabil-ity, Delta Air Lines will be leavingits gates on Concourse A in Mayand consolidating all of its opera-tions at Concourse B.

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THE LANE REPORT • KYBIZ.COM APRIL 2010 7

BENTON■ The Benton Tribune-Courier reports that construction work ona 1,200-foot lock on the Tennessee River will bring some 462 jobsto the area, with wages of up to $23 per hour. The work is beinghandled by Thalle Construction Co., of North Carolina, whichhas said it will attempt to hire locally and work with local suppliersand subcontractors. The project is estimated to take approxi-mately 27 months to complete.

BOWLING GREEN■ Owl’s Head Alloys, a secondary aluminum recycling facil-ity that receives and ships metal across the United States, isadding 12,000 s.f. to its existing 48,000-s.f. operation in Bowl-ing Green. The $3 million expansion will accommodate anadditional smelting furnace and result in 30 new jobs.

■ Metalworks Recycle-Reload, a new company established forthe processing, packaging, shipping, receiving and purchas-ing of all types of non-ferrous metals, is leasing a 30,000-s.f.facility in Bowling Green’s South Central Industrial Park. Thestartup project will create 20 new jobs and represents a capitalinvestment of more than $2.1 million.

■ The American Howa Kentuckyplant in Bowling Green will beadding employees as a result of itssister company, Howa USA Inc.,moving its operations from Rich-mond, Ind., to Bowling Green.The Kentucky plant currently has30 employees and 15 temporaryworkers and is expected to addanother 20 employees by the endof July, according to The (Bowling Green) Daily News. The com-pany produces dash insulators, headliners and interior trim prod-ucts for the automotive industry.

CECILIA■ The Cecilian Bank has purchased two banking offices of Inte-gra Bank, located in Hardinsburg and Leitchfield, Ky. As part ofthe acquisition, Cecilian has assumed approximately $45 millionin deposit liabilities related to the two branches and $15 million inbranch loans. Cecilian has also agreed to acquire a pool of com-mercial real estate loans from Integra, valued at $27 million. Withthe acquisition, The Cecilian Bank will have 11 banking centerswith eight locations in Hardin County, two locations in GraysonCounty and one location in Breckinridge County . The transac-tion will place The Cecilian Bank with total assets of approxi-mately $450 million and deposits of approximately $370 million.

COVINGTON■ Regent Communications Inc. has filed for Chapter 11 bank-ruptcy and reached an agreement in principal with its lendersfor a consensual financial restructuring that will eliminateapproximately $87 million of the company’ s debt. The Cov-ington-based company, which owns and operates 62 radio sta-tions in 13 markets, will continue its day-to-day operations asusual and will not have any changes in its senior leadership.

BUSINESS BRIEFS

THE University of Kentucky, University of Louisville andKentucky State University have been awarded $556,137from the Kentucky Science and Technology Corp.’s Ken-

tucky Commercialization Fund to help them commercializepromising emerging technologies in the commonwealth.

The funding will allow UK to develop and test a new prod-uct made from high-strength carbon fiber strips tostrengthen and upgrade existing reinforced concrete andsteel bridges and buildings.

UofL will use the funds for a number of different proj-ects, including the design completion and optimization of areactor for producing metal oxide nanowires at commercialscale; development of computer and marketing program-ming to prevent relapse among addicted persons in earlyrecovery; development of a wireless device that monitors asudden increase in body temperatures beyond a predeter-mined threshold in children due to medical conditions; anddevelopment of a urine-based test to diagnose obstructivesleep apnea in snoring individuals either as a clinical diag-nostic test or a home test kit for rapid screening.

The award to KSU will help the researchers to developand commercialize a specialized sensor-based wireless tech-nology to remotely monitor and detect loss of fluid andchanges in other physical parameters in difficult-to-monitorindividual containers.

STATE: UNIVERSITIES RECEIVE FUNDINGTO COMMERCIALIZE NEW TECHNOLOGIES

THE state has approved upto $15 million in state taxincentives for Rio Tinto

Alcan to encourage the globalsupplier of aluminum to makelong-term investments at itssmelting facility in Sebree.

Rio Tinto Alcan is evaluat-ing the installation of equip-ment to increase potlineamperage, which would enablethe plant to be more efficientin aluminum production. Theplant is also considering theconstruction of a new bake fur-nace that would be more envi-ronmentally friendly andefficient in baking anodes that

are utilized in potlines. Rio Tinto Alcan currently employs500 Kentuckians and is one of the largest employers in theHenderson County community.

Kentucky is home to more than 120 aluminum-relatedfacilities and is one of the top aluminum producing states inthe nation, employing more than 13,500 and generating$100 million in state and local tax revenue each year . Theaverage annual wage for a primary metals job in Kentucky ismore than $52,000. In 2005, more than $4.3 billion of pri-mary aluminum products were shipped outside the state.

SEBREE: STATE APPROVES $15 MILLIONFOR RIO TINTO ALCAN IMPROVEMENTS

Aluminum usage in automobileshas increased dramatically inrecent years, and is now onlybehind iron and steel in averagevehicle content. Kentucky is cur-rently ranked third among thestates in light vehicle productionand is home to nearly 450 motorvehicle-related suppliers.

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8 APRIL 2010 KYBIZ.COM • THE LANE REPORT

FAST LANE

FRANKLIN■ G3 Shieldings Technology, a ballistic research company thatproduces recyclable shooting targets, has relocated its opera-tions from northern Virginia to the former Petroferm build-ing in Franklin, Ky. G3 will initially utilitze 18,000 s.f. of theplant’s available 33,000 s.f. The company expects to hirearound 40 employees by the end of the year.

■ The Franklin Favorite reports that Perdue Grain and Oil SeedsLLC, a division of Maryland-based poultry giant Perdue Farms,has acquired Kentucky-Tennessee Grain Co., one of the largestgrain elevators in the area. Kentucky-Tennessee Grain ownerWayne Larson told the newspaper that while the name haschanged – the company will now operate as Perdue Grain-FranklinElevator – the business and staff will essentially remain unchanged.

HEBRON■ Coating Excellence International plans to open a manufac-turing facility in Hebron, where it will produce bag liners forthe pet food and animal feed industr y. The Wisconsin-basedcompany plans to lease a 120,000-s.f. facility for the plant andwarehouse and expects to have approximately 70 employeesthere within three years.

HIGHLAND HEIGHTS■ Highland Heights-based Gen-eral Cable Corp. has acquiredBeru SAS, a wholly-owned sub-sidiary of BorgWarner France SAS, located in La Ferte Mace,France. The business will operate as General Cable AutomotiveEurope (GCAE). GCAE produces ignition wire harnesses soldinto the European automotive original equipment manufactur-ing (OEM) market as well as the aftermarket. The companyexpects GCAE to report more than $20 million in revenues in thefirst year of operations.

LAUREL COUNTY■ Somerset Community College has opened a new $13.8 mil-lion Allied Health and Technical Education building in Lau-rel County. The state-of-the-art facility currently housesadministrative offices as well as classrooms for medical pro-grams. SCC is planning to launch a pharmacy tech programthis fall and a registered nursing program in Spring 2011,both of which will be housed in the new facility.

LEBANON■ Spring View Hospital has broken ground on an $8 millionexpansion that will include 8,000 s.f. of new space and therenovation of 5,000 s.f. in the existing facility . The project isexpected to be complete by the end of the year.

LEXINGTON■ The Urban League of Lexington-Fayette County will receive$1.1 million in federal stimulus funds to support broadbandInternet training in Lexington neighborhoods. Lexington is oneof seven communities nationwide to receive funding through thefederal Broadband Technology Opportunity Program. Mayor JimNewberry said Connect Your Community will work hand-in-handwith the expanded wireless network the city is establishing in largeparts of downtown to enhance public safety, spur economic devel-opment and increase residents’ Internet access.

BUSINESS BRIEFS

NINE Kentucky high-tech companies will share nearly$2.2 million in state funds as part of a Kentucky initia-tive to attract and support technology-based small

businesses. Through the state’s SBIR-STTR Matching Fundsprogram, Kentucky matches federal SBIR-STTR awardsreceived by Kentucky companies or those willing to relocate

to Kentucky. Kentucky is the first and only state to matchboth phases of the federal program: up to $100,000 forPhase 1 federal awards and up to $500,000 per year (for upto two years) for Phase 2 federal awards. To date, the state’sSmall Business Innovation Research (SBIR) and Small Busi-ness Technology Transfer (SBTT) matching program hashelped bring eight new high-tech businesses to the common-wealth to benefit from the matching funds.

STATE: NINE SMALL HIGH-TECH FIRMS TOSHARE $2.2 MILLION IN STATE FUNDING

A team of five UofL MBA students claimed first prize in the life science categor y ofthe 2010 McGinnis Venture Competition at Carnegie Mellon University March 11-13, a contest involving 25 teams. Their plan to cr eate NanoMark Therapeutics, acompany producing a new cancer drug targeting cancer cells but not healthy tissue,won a $20,000 cash prize. The team now advances to Global Moot Corp., the$100,000 “Super Bowl” of business competitions, in May. The Nanomark team iscomprised of (left to right) Sham Kakar, Cohin Kakar, Viji Sundar, David Noackand Gary Degen.

LOUISVILLE: UofL CLAIMS FIRST PRIZE IN McGINNIS VENTURE COMPETITION

The nine Kentucky companies receiving SBIR-STTRstate funding include: • Four Tigers (Paris): blackberry-based cosmetics, food

and medical products• NaugaNeedles (Louisville): nano-scale probes and

electrodes for use in mechanical, electrical, and elec-trochemical sensing and manipulation at cellular andmolecular levels

• SCR (Louisville): medical devices to treat heart fail-ure patients.

• Topasol (Lexington): development of nanoparticlesfor use in new coatings and composites

• Transposagen (Lexington): development of geneti-cally modified laboratory rats for medical research.

• ApoImmune (Louisville): vaccines to treat cancer andprevent infectious diseases

• NuForm Materials (Georgetown): ceramic materialsfor use in automotive and aerospace composites

• PGxl Laboratories (Louisville): research on howgenetics affect patients reactions to medicines

• 3H Company (Lexington): clean coal and carbonsequestration technology

UofL photo

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10 APRIL 2010 KYBIZ.COM • THE LANE REPORT

LEXINGTON■ Lexington-based ParaTechs Corp. has received $120,000from Kentucky’s High-Tech Investment Pool, which is used tobuild technology-based and research-intensive companies andprojects. The biotechnology company, which is a client of theLexington Innovation and Commercialization Center, createsproducts used for protein production for use in vaccines andtherapeutics. The company also markets a non-surgicalembryo transfer device for researchers who use laborator yrodents in a wide range of medical research, including can-cer, Alzheimer’s and diabetes studies. ParaTechs anticipatescreating seven new high-tech jobs paying an average annualsalary of at least $55,000.

LOUISVILLE■ Mitsui & Co., the parent company of Louisville-based SteelTechnologies, has announced plans to make Steel Technologiespart of a new joint venture it is forming in conjunction withNucor Corp. Thenew company, NuMit,will combine Mitsui’s global steel market experience and Nucor’sfocus on manufacturing and technology. Mitsui, which hasowned Steel Technologies since 2007, operates 23 service centerfacilities throughout the U.S., Canada and Mexico.

■ The Louisville-Jefferson County Metro Government hascreated four new small-business incentive programs to helpspur economic development and create green jobs. The pro-grams include the POWER (Providing Opportunities withEmissions Reduction) Loan, a $2 million revolving loan fundfor the retrofit of off-road diesel equipment; the Green JobsRevolving Loan Fund, a $1.4 million revolving loan fund forcompanies with new green products or jobs; the nonprofitenergy audit grant, a $200,000 grant pool for nonprofitorganizations wanting to make their facilities more efficient;and the Go Green Loan, a revolving loan fund that providesincentives for manufacturing companies wanting to improvetheir energy efficiencies through monitoring their powerequipment. The programs are being funded by a combina-tion of federal Department of Energy Efficiency ConservationBlock Grant, federal stimulus funds and city dollars.

■ Construction has begun on two new parking garages indowntown Louisville that are being built to complement andhelp spur new investments, including a new hotel and condodevelopment and the new corporate headquarters forZirMed, a fast-growing healthcare company. Louisville MayorJerry Abramson said the two garages, which represent aninvestment of $15 million, will create hundreds of construc-tion jobs. The two structures will add 757 parking spaces inthe center of the city. The projects are expected to be com-plete by November.

■ Kentuckiana Curb has announced plans to expand its man-ufacturing operations in Louisville, where it produces a vari-ety of products through metal fabrication processes andspecializes in metal roof components. The $2.5 million expan-sion will add 20,000 s.f. to the existing 90,000-s.f. facility forthe production of high-efficiency commercial HVAC systems.The expansion is expected to add 50 new full-time jobs to thecompany’s 70-member workforce.

BUSINESS BRIEFS

FAST LANE

BEKAERT Corp. isinvesting more than $2million to expand its

operations in Shelbyville,where it manufactures drawnsteel wire products.

Bekaert plans to add a hot-dip galvanizing line, a processthat provides corrosion protec-tion for wire used in exposedenvironments. Bekaert’s wireproducts are used in a varietyof applications such as staples,paper clips, nails, spiral note-book wire, concrete and automotive uses.

The expansion at the 26,000-s.f. plant is expected to add10 jobs to the existing 101-member workforce in Shelbyville,where it has been in operation since 1990. The Belgium-based company has some 23,000 employees worldwide andserves customers in 120 countries.

SHELBYVILLE: BEKAERT CORP. INVESTS$2M TO EXPAND STEEL WIRE FACILITY

TWO Kentucky companies have been awarded a com-bined $530,000 in funding from the Kentucky NewEnergy Ventures Fund, a program that provides public

funds to promising early-stage Kentucky companies that aredeveloping and commercializing alternative fuels and renew-able energy technologies.

Wellhead Energy Systems ,located in Somerset, has beenapproved for an investment up to$500,000 to develop generator sys-tems that can be placed near natu-ral gas wells to produce electricityfor rural communities. WellheadEnergy Systems’ technology cantake natural gas from isolated wellsthat are not close to transportpipelines and feed it into a self-con-tained, on-site generator system.The natural gas-powered genera-tors convert the gas into electricityfor use by local utilities, rural resi-dents and industrial locations.

David Weddle, president andCEO of Wellhead, said the company plans to use an existinglocal manufacturer to produce the generator units, whichwill help keep and create jobs in the Somerset area.

Southeast Biofuels, in Mt. Sterling, has been approved fora grant of up to $30,000 to develop a portable system thatcan produce ethanol using sorghum as a feedstock. Themodular fermentation system will produce the liquid fuel atsites where the sorghum feed stock is grown and har vested.Sweet sorghum is similar to corn and grows well in Kentucky,even on marginal lands. The stalks and leaves can beprocessed in ways similar to sugar cane, with the juicepressed out so it can be fermented into ethanol.

STATE: KENTUCKY AWARDS FUNDING FORALTERNATIVE ENERGY TECHNOLOGY

According Bekaert statistics, one inevery four tires in the world runson Bekaert steel cord.

NGAS President/CEOWilliam Daugherty withone of his company's hundreds of gas wellheadsin Eastern Kentucky.

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12 APRIL 2010 KYBIZ.COM • THE LANE REPORT

LOUISVILLE■ Caldwell Tanks is investing $3.9 million to expand its opera-tions in Louisville, where the company manufactures customizedwater tanks, industrial field-erected tanks and vertical concretestorage structures. The company plans to add 33,000 s.f. to itsexisting 180,000-s.f. facility. Caldwell currently employs 206 andis planning to add 15 new jobs as a result of the expansion project.

MIDWAY■ Midway College has received $100,000 in funding from theU.S. Department of Education to expand its nursing pro-gram. Midway President Dr. William B. Drake Jr. said thefunds will help the college double the size of its associatedegree in nursing program to graduate more nurses by 2012.

NORTHERN KENTUCKY■ St. Elizabeth Healthcare has entered into a definitive agree-ment to sell its ambulance company, TransCare of KentuckyInc., to Rural/Metro Corp. TransCare provides 24-hour lifesupport ambulance transportation to move patients to andfrom hospitals, medical testing or treatment facilities through-out Northern Kentucky. Rural/Metro has been in business formore than 50 years and is one of the nation’s leadingproviders of emergency and non-emergency medical trans-portation services and fire protection ser vices, serving morethan 400 communities throughout the United States.

■ The Northern Kentucky Convention & Visitors Bureau reportsthat it saw a 12 percent increase in group business bookings in2009 vs. 2008 bookings, representing a boost of nearly 12,000hotel guest nights. “We focused on group markets like sports andreligious organizations that offered the highest sales opportuni-ties, especially with the new Bank of Kentucky Center fully oper-ational for the entire year in 2009,” said Bureau President & CEOTom Caradonio. For 2009, corporate travelers remained thelargest market segment in Northern Kentucky, comprising 41percent, followed by leisure (36 percent), meetings/conventions(20 percent), and government (2.5 percent). Total economicimpact of visitor spending during 2009 in Boone, Campbell andKenton Counties was $262 million, down 14.5 percent from $306million in 2008.

OLDHAM COUNTY■ The Oldham Count Chamber of Commer ce and the Old-ham County Economic Development Authority have mergedtheir organizations to form the Oldham Chamber and Eco-nomic Development Agency. Bill Howard, CEO of FastlinePublications in Buckner, has been elected to ser ve as chair-man of the new organization.

OWENSBORO■ Kentucky Bioprocessinghas been awarded $17.9million from the U.S.Department of Defense todevelop a proof-of-conceptplatform capable of yield-ing a purified vaccine

using a whole plant-based process. Kentucky Bioprocessingwas one of more than 25 companies to bid on the project.The work is expected to be completed by March 2011.

BUSINESS BRIEFS

FAST LANE

LOUISVILLE-based Lightyear Network Solutions is now apublicly held company as the result of a securitiesexchange transaction with Libra Alliance Corp., a

Nevada company that previously operated as an Internetservice provider. With the securities exchange transaction,Lightyear is now Libra’s principal operating company.Lightyear CEO J. Sherman Henderson has been named aschairman and CEO of the public company, which trades onthe OTC Bulletin Board under the symbol “LBAL.”

“The main focus for Lightyear will be continuing to serv-ice the telecommunications needs of our approximately60,000 business and residential customers utilizing our inde-pendent national sales force of Lightyear Agent Partners,”Henderson said. “With Lightyear’s debt and interest obliga-tions to its parent being extinguished via the exchange trans-action, we believe that we are well positioned to initiate ourorganic and acquisition growth strategies.”

Henderson added that the company is “actively seekingto acquire multiple small to mid-sized competitors in strate-gic locations throughout the U.S., where we anticipate sig-nificant demand for Lightyear’s service offerings.”

Lightyear currently has about 84 full-time employees andgenerated approximately $44 million in revenue for the ninemonths ending Sept. 30, 2009.

LOUISVILLE: LIGHTYEAR GOES PUBLIC VIA DEAL WITH LIBRA ALLIANCE CORP.

JACKSON Plasticsis closing its man-ufacturing plant

in Nicholasville, whereit produces plastictrim parts for the auto-motive industry.

Founded in 1994by Henry Jackson, thecompany manufac-tures parts for Toyotaand also lists the LearCorp. and McKechnieVehicle Componentsamong its clients.

The company isslated to close by theend of April, leaving some 96 people without a job.

According to the company’s Web site, Jackson Plastics hastwo plants in Nicholasville: a 36,000-s.f. facility on one acrethat houses 18 molding presses that range up to 600 tons andanother 60,000-s.f. plant on 6.5 acres that has five moldingpresses that range from 500 to 1,500 tons.

In an interview with The Jessamine Journal, NicholasvilleMayor Russ Meyer said, “Henr y Jackson and his family andall of their employees have been a great community partnerfor many years, and they’ll be missed by the city governmentand the county government. I know our economic develop-ment authority is very optimistic about potential economicdevelopment clients coming into this building because ofthe set-up with the crane in the building. It’s a unique set-upout there, and I feel good about somebody else coming in.”

NICHOLASVILLE: JACKSON PLASTICS TOCLOSE THIS MONTH, 96 JOBS AFFECTED

Jackson Plastics has been producing plas-tic trim parts for the automotive industr ysince 1994.

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OWENSBORO■ First Security Bank of Owensboro Inc., a wholly owned sub-sidiary of First Security Inc., has agreed to purchase eight bankingoffices of Integra Bank. The banking offices include five locatedin Bowling Green and Franklin, Ky., and single offices located inPaoli, Mitchell and Bedford, Ind. As part of the transaction, FirstSecurity will assume approximately $188.2 million of deposit lia-bilities and acquire $74.8 million of branch-related loans, as wellas $38.4 million of additional commercial real estate, $2 million ofother commercial and $56.9 million of indirect consumer loans.Total assets for First Security will approximate $430 million uponcompletion of the merger. The acquisition gives First Security atotal of four offices in Indiana and seven in Kentucky.

PADUCAH■ The board of directors of ComputerServices Inc. has approved a two-for-one stock split, payable April 30, 2010to shareholders of record as of March29, 2010. The Paducah-based com-pany is traded on the OTCQX under the symbol CSVI.

■ Paducah & Louisville Railway is investing more than $4.2million to construct a new 20,000-s.f. headquarters facility inPaducah to accommodate the company’s growing staff. Padu-cah & Louisville serves more than 90 industries and managesapproximately 200,000 car loads annually.

BUSINESS BRIEFS

THE University of Louisville is leading a federallyfunded effort to develop computer software that wouldallow health and emergency professionals to allocate

and reallocate their resources - people and equipment - inresponse to the shifting conditions that would follow a pan-demic attack or natural disaster.

The project willfocus on develop-

ing a “real-time” decision-support system that could providemedical care where needed even when responders andhealth providers themselves are affected by a pandemic orflu outbreak. University of Louisville industrial engineeringprofessor Sunderesh Heragu, who is leading the researchgroup, said some studies show that up to 40 percent of thepopulation could be stricken, and that could affect staffingby doctors, emergency responders, nurses and support serv-ice providers during the “medical surge” that could result.

The researchers also will factor in the medical logistics of get-ting supplies, hospital beds and caregivers where they are mostneeded. Other priorities will be meeting the mental health needsof health care and emergency workers strained by a disaster; secur-ing medical information in a public health situation; and protect-ing healthcare workers with necessary personal equipment.

The three-year project will be funded by the U.S. Depart-ment of Homeland Security through the Somerset, Ky.-basedNational Institute for Hometown Security.

LOUISVILLE: UofL IS LEADING NATIONALEFFORT TO DEVELOP CRISIS RESPONSE

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14 APRIL 2010 KYBIZ.COM • THE LANE REPORT

PADUCAH■ EntrePaducah has received the Southern Growth PolicyBoard’s Innovator Award for its work with small businessesfacing challenges from the economic downturn. The organi-zation’s purpose is to connect entrepreneurs with the people,agencies and networks needed to launch their endeavors.

PIKEVILLE■ Pikeville Medical Center haslaunched an $8.9 million ren-ovation of its emergencydepartment that will add23,000 s.f. and create morethan 50 jobs. The project, which expands the emergency depart-ment to 27 beds (including two trauma bays), will position thehospital to apply for designation as a Level II trauma center. Theproject is expected to be complete by early summer.

SHELBYVILLE■ Ledco Inc., a Shelbyvilledoor manufacturer, has beenacquired by Florida-basedMasonite Inc., a global manu-facturer of residential andcommercial doors. Financialdetails of the transaction werenot disclosed. An announce-ment issued by Masonite saidLedco’s senior managementwill remain with the company.Ledco was founded in 1964

and currently has approximately 140 employees at its 130,000-s.f. plant in Shelbyville.

SOMERSET■ Somerset-based Southern Petroleum has signed a distribu-tion agreement with Gulf Oil and will convert nine Chevrongasoline stations to the Gulf brand. The rebranding repre-sents the first time in 20 years that a Gulf Oil branded gas sta-tion has operated in Kentucky. Earlier this year, Gulf Oilacquired all title and interests to the Gulf brand fromChevron U.S.A. Inc. Southern Petroleum supplies more than150 gas stations in Kentucky, Indiana and Tennessee.

WILMORE■ Asbury College has officially changed its name to AsburyUniversity to more accurately reflect its program offeringsand mission. Information about the name change released byAsbury noted that master’s level programs have been offeredthere since 2000.

STATE■ AT&T has unveiled its Kentucky wireless net-work investment plans for 2010, which includethe addition of more than 40 new cell sites andthe upgrade of nearly 300 additional cell sitesto 3G throughout the state. The announce-ment builds on AT&T’s 2009 wireless invest-ment, during which it added 50 new cell sitesin Kentucky and upgraded more than 80 exist-ing sites to 3G.

BUSINESS BRIEFS

FAST LANE

BREMNER Food Group is investing more than $62 mil-lion to expand its food production plant in Princeton,where it produces private-label cookies and crackers.

The expansion will add 111 new full-time jobs to theplant’s current 600-member workforce.

Bremner has acquired 32 acres of land to accommodate theexpansion, which will involve adding approximately 200,000s.f. to the company’s existing 700,000-s.f. facility. The companyplans to install new production lines, relocate production linesfrom other facilities and increase its warehouse space.

The Kentucky Economic Development Finance Author-ity has preliminarily approved Bremner Food Group for taxbenefits up to $5 million under the Kentucky BusinessInvestment program. The incentive can be earned over a 10-year period through corporate income tax credits and wageassessments. The maximum annual approved amount to beearned by Bremner is $500,000.

Bremner is a subsidiary of Ralcorp Holdings.

PRINCETON: BREMNER FOOD’S EXPANSIONWILL CREATE 111 NEW FULL-TIME JOBS

HILLIARD Lyons, a Louisville-based financial services firm, hasacquired middle-market invest-

ment banking team bCatalyst throughan asset purchase agreement.

Terms of the transaction were notannounced.

bCatalyst, also based in Louisville,will continue its regional focus on mid-dle-market mergers and acquisitions,business valuation and other financialadvisory services addressing the needsof business owners and enterprises val-ued in the $2 million to $200 million range. Andy McKay ,the current CEO of bCatalyst, will become a senior vice pres-ident and director of investment banking at Hilliard Lyons.

“We believe that combining Andy McKay and his bCata-lyst team with the brand and resources of Hilliard Lyons willbe very powerful,” said Hilliard Lyons CEO James R. Allen.“The bCatalyst team has built a strong reputation and hasestablished outstanding relationships in the region that canbe further developed.”

Founded in 2000 by a group of Louisville entrepreneurs,private equity investors and dealmakers, bCatalyst has playedan active role over the last decade in business incubation, angelinvesting, venture capital, private equity, valuation and M&Ain the Louisville market and beyond. Recent bCatalyst engage-ments include advising Koch Filter Corp. in its sale to Tomkinsplc; Stonestreet One Bluetooth Software in its managementbuyout; and Whip Mix in its purchase of Best-Bite.

David A. Jones, Jr., chairman of Chrysalis Ventures, said,“The partnership with Hilliard Lyons represents the nextstep in the company’s success. bCatalyst started as an incu-bator of tech companies. For Chrysalis and other founders,this represents the culmination of a vision of helpingregional businesses grow and succeed.”

Hilliard Lyons is a member of the New York, American andChicago stock exchanges and operates 70 branches in 13 states.

LOUISVILLE: HILLIARD LYONS EXPANDSWITH ASSET PURCHASE OF BCATALYST

James R. Allen, CEOof Hilliard Lyons

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THE LANE REPORT • KYBIZ.COM APRIL 2010 15

STATE■ The Kentucky Council on Postsecondar y Education hasapproved three new degree programs for the state. WesternKentucky University will offer a bachelor of science in mili-tary leadership and a master of science in instructionaldesign. Murray State University will offer a master of sciencedegree in chemical manufacturing management.

■ The Kentucky Office of Rate Interven-tion has reached a preliminary settle-ment agreement with Atmos EnergyCorp. that limits the company’s generalrate increase to $5.9 million. The company had originallyrequested an increase of approximately $9.5 million. The PublicService Commission, which must approve the settlement, hasscheduled a hearing on the matter for May 11. Atmos ser vesmore than 180,000 customers in 38 counties.

■ Kentucky’s annual unemployment rate surged to 10.5 per-cent in 2009 from 6.6 percent in 2008, making it the highestannual rate in Kentucky since 1983 when it was 11.3 percent.The U.S. annual unemployment rate climbed to 9.3 percentin 2009 from 5.8 percent in 2008, making it the highestannual U.S. unemployment rate since 1983 when it was 9.6percent. Kentucky’s unemployment rate for January 2010, themost recent figures available, was up to 10.7 percent, up from10.6 percent in December 2009.

BUSINESS BRIEFS

THE Kentucky Agricultural Development Board hasapproved the Kentucky Forage & Grassland Council for$100,000 in Agricultural Development Funds and

$100,000 in American Recovery & Reinvestment Act (ARRA)funds for the expansion of research related to switchgrass asa renewable energy source.

According to information released by the state, the proj-ect will demonstrate that Kentucky farmers can producebiomass crops on a large scale that can provide an addedincome stream, as well as generate “green” energy for Ken-tucky consumers. The project will also show the value ofusing a public-private partnership to produce and utilizebiomass crops and demonstrate the wide range of benefitssustainable energy production has across the local econ-omy and environment.

“Farming and energy are two keystones of Kentuckyindustry and its future, which can have a mutually beneficialrelationship,” said Gov. Steve Beshear. “With the help of theKentucky Agricultural Development Fund, we are position-ing agriculture to be a leader in the development of alterna-tive energy sources, such as switchgrass.”

This project is the first award through the Multi-CountyEnergy Initiative Program, which encourages regional col-laboration by providing a 1:1 match with ARRA funds andstate Agricultural Development Funds for agriculturallyrelated renewable energy projects.

STATE: STATE AND ARRA PROVIDE $200K FOR SWITCHGRASS ENERGY RESEARCH

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16 APRIL 2010 KYBIZ.COM • THE LANE REPORT

Business news from Indiana, Ohio, Tennessee and West Virginia

INDIANA■ Lear Corp. is expanding its operations in Hammond, Ind.,creating more than 285 new jobs by the end of the year. TheMichigan-based company, which designs and manufacturescomplete seating systems and components for automotivemanufacturers, will invest more than $2.2 million to upgradeand adjust equipment at its 110,000-s.f. facility to manufac-ture seating for the Ford Explorer. Lear currently employsmore than 160 workers in Hammond.

■ s2f worldwide LLC, a startup provider of supply chain andlogistics services, has announced that it will establish its head-quarters and distribution operations in Plainfield, Ind., cre-ating 250 new jobs by 2013. The company will invest $10.8million to lease and equip a 200,000-s.f. distribution centerand office building near the Indianapolis International Air-port that will serve customers in the automotive, life sciences,telecommunications and retail markets, among others.

OHIO■ Explorys Inc., a technology company that specializes in thehealthcare industry, has been awarded a 75 percent job cre-ation tax credit for a 10-year term in connection with an $11million project in Cleveland, Ohio, that is expected to create330 positions. Explorys was formed in 2009 in partnershipwith the Cleveland Clinic to develop an independent nation-wide network aggregating research statistics and patient datathrough real-time comparative analytics. The system bridgesthe gap between researchers, life sciences, and those deliver-ing care. The value of the tax credit is estimated at $17.6 mil-lion over the term, and the company would be required tomaintain operations at the project site for 13 years.

TENNESSEE■ Bongards’ Creameries, a Minnesota-based cheese producer,has purchased a 114,000-s.f. facility in Humboldt, Tenn.,where it plans to establish a new production facility. TheHumboldt property was previously owned by ACH food com-panies and was used to produce loaf and shred imitationcheeses. Bongards expects to have the capacity to producenatural and processed shredded cheeses by the middle of thesummer and is scheduled to begin production of loaf-processed cheese by the end of the third quarter .The com-pany expects to have approximately 89 employees at theHumboldt plant within three years.

VIRGINIA■ Massey Energy Company has signed adefinitive agreement to purchase Cumber-land Resources Corp. and its affiliatedcompanies for $960 million in a combinedcash and stock transaction. Based inAbingdon, Va., Cumberland is one of thenation’s largest privately held coal producers and operates pri-marily underground coal mines in southwestern Virginia andeastern Kentucky. Its assets include an estimated 416 milliontons of contiguous coal reser ves, a preparation plant in Ken-tucky served by the CSX railroad and a preparation plant in Vir-ginia served by the Norfolk Southern railroad.

BUSINESS BRIEFS

INTERSTATE LANE

CLEARFUELS Technology Inc. and Hughes Hardwoodhave partnered to develop a biorefinery that will con-vert 1,000 dry tons of wood product per day to renew-

able diesel or jet fuel. Hawaii-based ClearFuels will site thefacility at the Hughes Hardwood wood component productsmanufacturing facility in Collinwood, Tenn.

The Collinwood facility will represent an investment ofroughly $200 million by ClearFuels and the creation of 50direct new jobs, with additional jobs to be created in relationto the collection and transportation of feedstock.

At standard capacity, the biorefinery will be capable ofproducing 16 million gallons of diesel and 4 million gallonsof the gasoline feedstock naphtha each year, along with six toeight megawatts of excess electricity.

ClearFuels is slated to break ground on the biorefinery inlate 2011, and the facility will reach commercial operationby late 2013 to early 2014.

“The concept of biomass harvesting will revolutionize thelogging industry in the South,” said Mike Yeager, land man-ager, Hughes Hardwood. “Landowners who prefer biomasscontractors over a conventional har vest will see both eco-nomic advantages and a more attractive post-har vest site.Every landowner Hughes Hardwood has assisted has had anissue with disposing of the remaining residual fiber . Now Ican offer a profitable solution to that problem.”

TENNESSEE: CLEARFUELS PARTNERS WITHHUGHES TO DEVELOP NEW BIOREFINERY

DOW AgroScienceshas announced asignificant expan-

sion of its global head-quarters in Indianapolisthat will create up to 577new jobs by 2015.

The agriculture-basedfirm is investing more than$340 million to constructadditions of its headquar-ters over the next fiveyears, with the first phasebeing a 14,000-s.f. green-house and a 175,000-s.f.research and development facility at its corporate campus on thecity’s northwest side. The company expects the greenhouse con-struction to be complete by the end of this year while the R&Dfacility is expected to open in early 2012, with other building proj-ects coming according to a multi-year timeline.

Dow AgroSciences’ decision to expand its headquartersfollows two additional company expansions in 2009. In July,the company announced it would lease an 80,000-s.f.research facility adjacent to its global headquarters, allowingfor expansion and adding 100 new biotechnology scientiststo its ranks. In September, the company announced that itwould expand its Indiana research operations to PurdueResearch Park in West Lafayette, creating up to 30 new jobsby 2014.

INDIANA: DOW AGROSCIENCES EXPANSIONTO CREATE UP TO 577 NEW JOBS IN INDY

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THE LANE REPORT • KYBIZ.COM APRIL 2010 17

A sampling of economic development data

KENTUCKY INTELLIGENCER®

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18 APRIL 2010 KYBIZ.COM • THE LANE REPORT

New leadership for Kentucky businesses

CORPORATE MOVES

BANKING■ Stephanie Renner has joined AmericanFounders Bank as vice president and headof compliance andCRA. Sarah Lever-age has been pro-moted to assistantvice president,internal auditor.Keith Brewer hasbeen promoted toassistant vice presi-dent, loan reviewofficer.

■ Bob Cline hasjoined RepublicBank as vice presi-dent/special assetsmanager for itscommercial lend-ing department.

■ Melissa Lamonthas been pro-moted to assistantvice president ofoperation for First Citizens Bank in Eliz-abethtown. Brian Lippert has joined thebank as vice president and credit admin-istration officer.

■ Joey Mills has been named senior vicepresident and senior credit officer for theWoodford County market of United Bank.

CONSTRUCTION■ Thomas M. Keckeis has been namedboard chair, president and chief exec-utive officer of Messer Construction.Paul Hitter has been elected seniorvice president and chief financial offi-cer for the company. Rick Hensley hasbeen named corporate vice presidentand chief information officer. DaveMiller has been named corporate vicepresident and will partner with MarkGillming in leading the company’sLouisville region.

EDUCATION■ Robert C. Mock Jr. has been namedvice president of student affairs for theUniversity of Kentucky.

GOVERNMENT■ The Kentucky Department of Parkshas named Monica Conrad, Kerry Lamband Stefanie Gaither as regional man-agers for the Kentucky state park system.Diane Bonfert has been named as thedepartment’s director of recreation.Chris Kellogg is the department’s newcommunications director.

INSURANCE■ Roy Goldman has been named vicepresident and chief actuar y forLouisville-based Humana Inc.

LEGAL■ Jeremiah A.Byrne has beenelected a partnerin the law firm ofFrost Brown Todd.Gregor y S. Shu-mate has joinedthe firm as a part-ner in the Flo-rence office.

■ James L. Fisher has joinedGreenebaum Doll & McDonald as chiefoperating officer.

■ Chauncey S.R.Curtz has beennamed managingpartner for Dins-more & ShohlLLP’s Lexingtonoffices.

MARKETING■ Stephanie Applehas been pro-moted to vice pres-

ident of marketing communications forPreston-Osborne. Apple will work out ofthe company’s Louisville office.

■ Jason Clark hasbeen promoted topresident/ cre-ative director ofVIA Studio inLouisville.

TECHNOLOGY■ Michael Davishas been pro-moted to chiefexecutive officerof Louisville-based Appriss.

TRANSPORTATION■ Joe Crabtree has been named directorof the Kentucky Transportation Center.

■ Andrew Aiello has been named gen-eral manager of the Transit Authority ofNorthern Kentucky (TANK).

OTHER■ Jason Nuetzman has joined Commu-nity Ventures Corp. as executive vicepresident-Bowling Green.

■ John H. Clark IV has joined TheClark Group as a board member andprincipal stockholder.

■ Dana B. Cox has been named execu-tive director of the Kentucky HistoricalSociety Foundation.

■ Stephanie Nelson has joined the Ken-tucky Association of Manufacturers asdirector of membership services.

■ Meredith Apple Gault has beenappointed executive director of theKentuckiana Chapter of Juvenile Dia-betes Research Foundation Interna-tional.

■ Kevin McKim has been promoted topresident of RecoverCare, a Louisville-based distributor of wound care andbariatric equipment. Ryan Schmidt hasbeen appointed chief operating officerof the company.

■ Ted Nicholson has been named gen-eral manager of the Louisville Arena,the new multipurpose arena that isslated to open later this year.

Stephanie Renner

Keith Brewer

Bob Cline

Jeremiah A. Byrne

Jason Clark

Chauncey S.R. Curtz

Sarah Leverage

Brian LippertMelissa Lamont

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THE LANE REPORT • KYBIZ.COM APRIL 2010 19

KENTUCKY ARTS COUNCIL■ Henrietta Kemp, Josephine Richardsonand Andrea Rudloff have been appointedto the board of directors for the KentuckyArts Council. Kemp is a retired educatorfrom Hopkinsville. Richardson owns theCourthouse Café and Cozy Corner inWhitesburg. Rudloff is an arts administra-tor from Bowling Green.

KENTUCKY DISTILLERS ASSOCIATION■ The following individuals have beennamed to the board of directors for TheKentucky Distillers Association: Chair-man – Chris Morris, Brown-FormanCorp.; Vice Chairman – John Rhea,Four Roses Distillery; Secretary-Treas-urer – Jeff Conder, Beam Global Spiritsand Wine; Andrea Wilson, DiageoNorth America; David Hobbs, HeavenHill Distilleries Inc.; and Tom Krekeler,Wild Turkey Distillery.

KENTUCKY LOTTERY CORP.■ William Lee Scheben has beenappointed to the board of directors for

the Kentucky Lottery Corp. Scheben, ofUnion, is senior vice president of Her-itage Bank.

LEADERSHIP KENTUCKY■ Regina Jackson has been named tothe executive committee of the board ofdirectors of Leadership Kentucky. Jack-son is a partner in the Bowling Greenlaw firm of English Lucas Priest &Owsley LLP.

LEXINGTON-FAYETTE URBANCOUNTY AIRPORT BOARD■ Kelley Sloanehas beenappointed to afour-year term onthe Lexington-Fayette UrbanCounty AirportBoard. Sloane isdirector of enter-prise softwaremarketing forHewlett-Packardin Lexington.

SOCIETY FOR MARKETING PROFESSIONAL SERVICES■ The Kentucky Chapter of the Societyfor Marketing Professional Services hasannounced its officers for 2010: Presi-dent – Brooke Shepherd, EA PartnersPLC, Lexington; President-Elect – CarolBlevins-Ormay, CMTA Engineers,Louisville; Past President – AshleyBruggeman, Bentley Prince Street, Lex-ington; Co-Treasurers – Sarah Young,EOP Architects, Lexington, and MaryBeth Wright, Messer Construction, Lex-ington; Secretary – Cory Sharrard, KTAConsulting Engineers, Lexington; Pub-lic Relations – John Oliva, BuildersExchange, Louisville; Program Coordi-nators – Jamie Draper, EngineeringConsulting Services, Lexington, andAllison T. Pullen, Qk4 ArchitectureEngineering Planning, Louisville; Spon-sorship Coordinators – Brent Collins,Luckett & Farley, Louisville, and JanetHeberle, TEG, Louisville; and Member-ship Coordinator – Stacey McChord,Ross Tarrant Architects, Lexington.

New leadership for Kentucky organizations

ON THE BOARDS

Kelley Sloane

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20 APRIL 2010 KYBIZ.COM • THE LANE REPORT

Kentucky’s leaders express their opinions

LANE ONE-ON-ONE

Ed Lane: The U.S. economy has been indecline for over a year. Economists say therecession is over. What is your perspectiveon the economy as it r elates to state gov-ernment in general, and specifically totourism and the arts in Kentucky?Marcheta Sparrow: Kentucky’s economy,on the whole, is a bit behind the nationalcurve, and it may at this point be experi-encing what other states were feeling this

time last year. We see some improvementsin hotel occupancy levels. The tourismindustry is beginning to gradually pull outof this bad economy. Actually, hotel occu-pancy rates – while they have declined inKentucky – did not decline as much as thenational average.

The state parks’ occupancy ratesdeclined less than the state’s overallhotel occupancy average.

Obviously, the economy and tourismlevels also affect the arts – our crafts-men, artists and small businesses. Ken-tucky Crafts – the Market was recentlyheld in Louisville and sales of Kentucky

crafts and arts were fairly strong. It was avery good show this year; well attended;large items sold well and the vendorswere pleased.

EL: Is this a good time for people to buyart? Are prices competitive?MS: Handmade items, this year, are avery good buy. People are buying well-made, hand-crafted items. Maybe peo-

ple aren’t buying as much, but they arebuying the better quality items. It’s avery good time to shop for Kentuckycrafts; the state-operated artist center inBerea is doing very well.

EL: How much has the budget for theTourism, Arts and Heritage Cabinetbeen reduced?MS: Since the FY2008 budget went intoeffect, the cabinet has taken five budgetcuts. As a whole, the budget cut is 28percent. The cabinet still continues toprovide the highest level of ser vice wecan under the circumstances.

There may be three budgets out theretoday for consideration by the KentuckyGeneral Assembly; we don’t know for sure.There’s the governor’s recommendedbudget that calls for a 2 percent cut.There’s also the House budget. The Sen-ate’s budget is not expected until nextweek. At this time, we have no way ofknowing what to anticipate. (Editor’s note:This interview was conducted and sent tothe printer prior to approval of the state’sfinal budget by the General Assembly)

EL: How many agencies of state govern-ment are managed by the Tourism, Artsand Heritage Cabinet?MS: Fifteen. This cabinet manages avery eclectic group of agencies. They allwork together very well and have muchof the same mission.

EL: How many employees now work forthe cabinet compared to the numberemployed in FY09?MS: Our work force is pretty much evenwith FY09. Initially, the cabinet’s work-force was 2,444; it’s now 2,007 persons.We now have around 395 fewer employ-ees in our agencies.

We haven’t filled positions as peopleleave. We’ve redistributed the workloadand, in most cases, have been able tomanage doing what we have done allalong with fewer employees.

EL: Hotels collect transient rent taxes.How does that work? MS: Actually there are different tax levels.Most communities – some counties andmany cities – have a local transient rent tax.That’s a local option that allows local gov-ernments to charge a 3 percent and up taxon hotel room rentals. Jefferson Countyhas the highest rent tax in the state, some-where in the range of 5 to 6 percent. Thestate Revenue Cabinet collects a 1 percentstatewide lodging tax, and that’s a bit differ-ent; it is a tax on all hotel rooms, but it isstatewide and benefits ever y countywhether they have hotels or not.

The cabinet allocates hotel rent tax dol-lars to each of the state’s nine touristregions. Last year, collections were $8.6million. This year, we project revenues willdecline to $8.2 million. Of that, $5.5 mil-lion is placed in the cabinet’s tourism andmarketing incentive program. It wasknown as the tourism matching funds pro-gram and matches local marketing fundsto encourage tourism marketing. Thisfund is allocated on a county and regionalbasis. A convention and visitors bureau

‘OUR RESOURCES ARE LEAN, AND WEARE TRYING TO DO MORE WITH LESS’Ky Secretary of Tourism, Arts and Heritage Marcheta Sparrow discusses overseeing 15 state agencies, preparing for WEG

BY ED LANE

Marcheta SparrowMarcheta Sparrow was appointed as Secretary ofthe Tourism, Arts and Heritage Cabinet by Gov .Steve Beshear in December 2007. She oversees 15agencies of state government. She previously waspresident and CEO of the Kentucky TourismCouncil, a 600-member statewide association rep-resenting every sector of the travel industry. Herwork included acting as an industr y advocate inthe area of legislative and governmental relations,as well as coordinating statewide conferences toprovide continuing education programs and mar-keting opportunities across the state. Prior to join-ing the Tourism Council, Sparrow was marketingand public relations director for Shaker Village ofPleasant Hill for nine years. Her career alsoincludes positions as director of tourism for theLouisville Convention and Visitors Bureau, execu-tive director of the Frankfort Tourist Commission,and communications director for the KentuckyDerby Festival. She began her work in tourismwith the Kentucky Department of Public Informa-tion as a tour guide at the State Capitol.

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THE LANE REPORT • KYBIZ.COM APRIL 2010 21

participating in a cooperating advertisingprogram with the Department of Traveland Tourism could receive a match fromthe state in an amount up to 90 percent ofthe ad costs being invested.

EL: How is that money allocated?MS: There’s a formula. It’s based onpopulation, collections and the eco-nomic impact of tourism within theregion. The remainder of those fundsare used by the Department of Traveland Tourism for its marketing budget.

EL: Has the cabinet diverted marketingdollars from the nine Kentucky tourismregions to support the Alltech FEI 2010World Games (WEG)? MS: The cabinet will have a pavilion at theWEG called The Kentucky Experience,and all nine regions of the state will beparticipating. The Kentucky Departmentof Agriculture will be featuring KentuckyProud products. Our artisans and crafts-men will be there, and they will have Ken-tucky-made artwork. The Bourbonindustry and distillers will conduct Bour-bon tastings in that pavilion.

Any person who holds a ticket to theWorld Equestrian Games can go to theKentucky Experience at no extra charge.The pavilion is probably the most impres-sive that Kentucky has ever undertaken. Iknow that years ago Kentucky had a pres-ence at the (1982) Knoxville World’s Fairand the (1996) Olympics in Atlanta, butthis is the largest undertaking of its kindthat Kentucky Tourism has undertaken.It’s going to be really grand, and Kentuckyentertainers will present live performancesthere as well.

EL: How would you evaluate travel toKentucky during fiscal year 2009, andwhat are trends for this fiscal year? MS: Kentucky’s statewide occupancy isdown 2.8 percent from last year, andrevenue per available room is down 6.7percent. Kentucky is faring much bet-ter in comparison to national occu-pancy levels.

The revenue per available roomnationally is down 16.7 percent. It’s abuyer’s market out there. Everybody islooking for a deal, and everybody is plan-ning their travel at the ver y last minute.

Kentucky is a great deal in terms ofvalue for your tourism dollars. Out in thestate, our attractions continue to hold theirown and in some cases generate someslight increases. Kentuckians are not travel-ing as much and are staying closer to homeand visiting our state’s museums and attrac-tions. Where we’ve really seen the decline iswith the business traveler. Businesses con-tinue to book conventions, but the conven-tions don’t seem to have as many delegates.

EL: Mike Cooper,commissioner ofthe Department ofTravel, is a veteranin this cabinet. Hashe had to focus alot of his time onthe Alltech 2010FEI World Eques-trian Games?MS: Mike workedas the assistantdirector of marketing for the Depart-ment of Travel from the mid-’80s until2004 and came back with the Beshearadministration as commissioner.

Mike Cooper

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22 APRIL 2010 KYBIZ.COM • THE LANE REPORT

The World Games Foundation is reallytaking the lead on the FEI World Games.The cabinet has a team coordinating theKentucky Experience, and Mike has donea lot of work on that. Mike’s really outthere – all over the state.

Hank Phillips isthe new deputy com-missioner in travel.Hank was the CEOfor the NationalTourism Association(NTA) for 20 yearsin Lexington. We arereally pleased tohave Hank on boardbecause this is ahuge task.

We hope the Travel Department will bere-named. The bill to do so is on the (legis-lature’s) consent calendar. If approved,this agency will be known as the Depart-ment of Travel and Tourism. CherylHatcher also is in the department anddirector of sales. Actually, her primary

focus right now isWEG, but she alsoworks on groupsales with ourtourism partnersall over the state.

E l i z a b e t hChewning is thecabinet’s new mar-keting director.She was a tourismprofessional inWest Virginia.

EL: Has the Department of Travel initi-ated any new marketing efforts to boosttourism in Kentucky?

MS: Right now thedepartment is focusingon our homegrown mar-ket. With regional adver-tising, we’re marketingcloser to home. Ourresources are lean, andwe are trying to do morewith less.

EL: Do you mainly sup-port regional marketingwith TV and social media? MS: Media is doing a mix– some television, radioand an all-new Web sitethat will go active withinthe next four to six weeks.

Tourism marketing is changing rapidly.Social media are going to be the mostimportant new media in tourism market-ing we’ve seen since electronic media.

EL: Gerry van der Meer, a respectedveteran in the hospitality industr y, wasrecruited to the Depar tment of Parksfrom the Campbell House in Lexing-ton. How has his experience been help-ful to Kentucky’s Parks?

MS: Superb. Gerryis one of the bestrespected hoteliersin Kentucky. Hehas added a level ofprofessionalismand respect to theparks department.I can’t say enoughabout Gerry; he’sthe hardest-work-ing guy I know.

EL: Is your biggest issue that some ofthe state parks’ hotels have a small num-ber of units, which makes it vir tuallyimpossible to cover operating overheadand make a profit? MS: Absolutely. People ask me all thetime, “When will these parks turn aprofit?” I want people to understand. Ken-tucky has 52 state parks. Seventeen areresorts: They have hotels, golf courses orare on lakes. Thirty-five are historic sitesand recreation parks; some have camp-ground accommodations, many don’t.

All of these parks are free to the pub-lic. Of the 7 million people who visit stateparks every year, the majority only use thatwhich is free. It is not reasonable to expectthat 17 resort parks can support a systemof parks that is widespread.

The cabinet has 45,000 acres of land towatch over, 1,600 buildings to maintainand around 2,000 employees. This is a

huge park system. I still believe that goodgovernment has a responsibility to providea park system for its citizens. The $30 mil-lion general fund appropriations for parkseach year equates to around $7 for ever yman, woman and child to have one of thefinest state park systems in the country.The state parks also have significant eco-nomic impact on the communities inwhich they are located.

EL: What would you think about havinga small fee to visit a park; per haps $2for out-of-state visitors and $1 for Ken-tucky residents?MS: We’ve discussed that, and people’sopinions differ. That’s one of the optionswe’ve evaluated. First of all, traditionallyKentucky state parks have been free to itscitizens, so it wouldbe difficult to makea change. Secondly,many of our parkshave four or fiveways you can enter.Knowing Kentuck-ians the way I do,we’ll always find away to get in free.

If we changedto paid admission,we’d have to buildentrance gates andhire people to staff them. By the time wedid that we would have eliminated muchof any financial benefits from an admis-sion fee. Also, the goodwill Kentucky parkshas created for 85 years could be lost.

So these are the issues we have to con-sider. Our staff is looking at changing themodel on how we do business. I really haveevery faith that we’ll make our parks sound,and my goal when I leave is for the parkssystem to be ready for the 21st century.

LANE ONE-ON-ONE

Gerry van der MeerHank Phillips

Liz Chewning

The indoor arena at the Kentucky Horse Park was built for the World Equestrian Games but has already hosted and is booked for other events.

Agencies of the KentuckyTourism, Arts & Heritage Cabinet• Department of Parks• Department of Travel • Fish & Wildlife Resources • Frankfort Convention Complex • Governor’s School for the Arts • Kentucky Artisans Center at Berea • Kentucky Arts Council • Kentucky Center for the

Performing Arts • Kentucky Heritage Council • Kentucky Historical Society • Kentucky Horse Park • Kentucky State Fair Board • Creative Services• Kentucky Humanities Council• The Kentucky Sports Authority

Lindy Casebier,deputy secretary of the Tourism, Arts and Heritage Council

Staff photo

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EL: Do our parks have preventativemaintenance issues?MS: Yes. If there’s an area where parkfunding is inadequate, it’s in preventivemaintenance. Often park facilities haveextensive deferred maintenance, andwhen funding is made available wemake a lot of improvements and just“love the building to death.” Commis-sioner Van Der Meer and I both agreethat parks has to develop an ongoingannual system of preventive mainte-nance because it’s not always affordableor feasible to go in and renovate ever y-thing at one time.

EL: The big event in 2010 will be the WorldEquestrian Games at the Kentucky HorsePark. How is this event progressing?MS: I’m on the executive committee ofthe World Games Foundation, and it’scoming along quite nicely. We’ve sold alittle shy of 170,000 tickets at this point,and general admission tickets haven’tgone on sale yet. This is an excitingchallenge for Kentucky, being that thisis the first time the World Games havebeen in the United States. We think weknow what to expect, but we don’t reallyknow for sure. We are confident that thecapital investments for the World Eques-trian Games will benefit Kentucky foryears to come.

EL: Will room sales in cities likeLouisville and Cincinnati be significant?MS: These cities will get their share ofbusiness from the World Games. Obvi-ously, Fayette and surrounding countiesare going to do very well.

EL: Delta Air Lines recently announcedrestructuring of its domestic and inter-national service because of its mergerwith Northwest Airlines. Delta is alsoeliminating the Gr eater Cincin-nati/Northern Kentucky Airport as ahub and reducing flight accordingly.MS: The cabinet is disappointed to hearabout what is going on at the CincinnatiInternational Airport. On a positivenote, the cabinet, the World Games andBlue Grass Airport have been advisedthat Delta will be putting on additionalflights into Lexington. Delta has alreadyseen an increase in bookings and willadd additional flights, most of which willlikely be coming from Atlanta.

EL: What is your gr eatest concernregarding the 2010 World Games?MS: Making sure that everyone has anopportunity to come to the World Gamesand understands that a general admission

ticket is good for a whole day of activities. Isuppose my biggest concern is marketingthe event. There are special event tickets,but otherwise you can go anywhere in thepark. There’s an equine exhibition therethat will feature all the breeds of horsesand a trade show, “The Kentucky Experi-ence.” There will be a lot of things goingon. It will be a day well worth the money .I’m very impressed with the team at the2010 World Games Foundation, and I amconfident we will be ready for the event.I’m not concerned at all about the coordi-

nation of that event. I am ver y interestedin making sure we do the communicationthat we need to get the word out to peopleso that they will come. ■

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

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NEW Ohio River bridges with 12 additional lanesare expected to cost $4.1 billion and reshape thefuture not only of Louisville and Southern Indi-ana but a huge swath of the rest of the countr y,relieving a major chokepoint in one of the

nation’s key north-south corridors.The Ohio River Bridges Project now being carried forward

by a task force of Kentucky and Indiana officials will include anew bridge adjacent to the John F. Kennedy Bridge in down-town Louisville that carries I-65 over the river , an East End I-265 bridge that will connect Prospect, Ky., to Utica, Ind., and a

reconfigured Spaghetti Junction inter-change where Interstates 64, 65 and 71collide near downtown.

“That’s a project that is of nationalsignificance,” said Stan Lampe, presi-dent of Kentuckians for Better Trans-portation, a 32-year-old transportationadvocacy organization based inLouisville. “I-65 runs from Gar y, Ind.,all the way down to Mobile, Ala., andthat chokepoint, that congestion overthe Ohio River, doesn’t just affect peo-ple in Southern Indiana andLouisville-Jefferson County, Ky. It affects people who live inGary. It affects people who live in Mobile. And that’s some-thing that a lot of people really don’t quite appreciate.”

And, of course, it affects Kentuckians.“You don’t restrict the flow of commerce without affecting

the health of the state,” said Kentucky Chamber of Commerce

24 APRIL 2010 KYBIZ.COM • THE LANE REPORT

COVER STORY

Kentucky Bridges,National Impact

Enhanced Ohio River crossings will alleviateU.S. transportation and commerce chokepoints

BY SEAN SLONE

This rendering envisions a planned new six-lane I-65 bridge, center foreground, that will twin with the existing Kennedy Bridge.This bridge, another several miles upriver at I-265 and a r ebuild of the I-65-75-71 Spaghetti Junction that is par t of the Ohio RiverBridges Project will relieve a national transportation bottleneckbetween Gary, Ind., and Mobile, Ala.

Stan Lampe, presidentof Kentuckians for Better Transportation

The Bridges Coalition images

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President/CEO Dave Adkisson. “An analogy mightbe the restricted flow of blood through the heart.That restricted flow has consequences and nodoubt Kentucky has been held back while thatissue has been growing.”

A chief chokepoint cause is that the KennedyBridge, built in the early ’60s, was designed for adaily traffic count of 85,000 vehicles but now seescloser to 140,000 vehicles, some 65 percent morethan designed. Already well over capacity sevenyears ago when the bridges project was launched,the forecast is for Kennedy traffic to increaseanother 42 percent by 2025.

To accommodate its growing traffic load, theKennedy’s shoulder areas were converted to trafficlanes during the last decade, which made emer-gency access more difficult. The bridge as currently configureddoes not meet safety standards, and the Federal HighwayAdministration considers it structurally deficient – meaning itrequired maintenance and repair to stay in ser vice, which isfairly common.

“The right people and structure are now in place to movequickly on the Ohio River Bridges Project,” said David W. Nick-lies, president of Nicklies Development of Louisville and chair-man of the Bridges Coalition, a non-profit organizationdrawing from Kentucky’s and Indiana’s public and private sec-tors that advocates for the project. “Then we are on our way tocreating 56,000 new jobs through the construction phasealone. When the project is completed, our bridge and high-way network can move goods and people safely and efficiently,which is vital for future job growth in the Louisville region andthroughout Kentucky.”

Ohio River Bridges Project plans are to convert theKennedy to six lanes for southbound traffic once a new six-lane downtown bridge is built to carr y northbound I-65 traf-fic. The new East End bridge, also six lanes, will provideanother cross-river link, connecting I-265’s Kentucky and Indi-ana segments for the first time, and diverting traffic and con-gestion away from downtown.

Better logistics, more jobs“We have not done anything to improve the cross river mobil-ity in 45 years,” said Joe Reagan, president and CEO of Greater

Louisville Inc.-The Metro Chamber of Commerce. “We do notwant to have the infrastructure we have carry the burden goingforward of a growing area… We are a regional economy thatneeds to be connected across this river very effectively. It’s theonly way that we can continue to be a logistics hub for theworld… Second, there are over 56,000 jobs that will be createdover the life of the project when we’reable to move forward.”

Reagan believes the chokepoint has hadan impact on the ability of the Louisvillearea to attract new businesses and jobs.

“But more importantly the companieswe (already) have are telling us it’s time tofix this,” he said. “Companies that are herehave said ‘for us to stay here and to grow ,we’ve got to have a great intermodal mobil-ity within the region and to other parts ofthe country and the world.’”

Reagan is a member of the Louisville-Southern Indiana Bridges Authority, a 14-member panel appointed by Gov. Steve Beshear, Indiana Gov.Mitch Daniels and Louisville Mayor Jerry Abramson that beganmeeting in February to create the plan for financing, buildingand operating the new bridge system.

THE LANE REPORT • KYBIZ.COM APRIL 2010 25

Joe Reagan, presidentand CEO of GreaterLouisville Inc.

This rendering depicts the planned six-lane I-265 bridge acr oss the Ohio Riverat Prospect, Ky., and Utica, Ind.

Superstructure replacement and widening of the 81-year-old Milton (Ky.)-Madison (Ind.) Bridge across the Ohio River will begin this year and cost$131 million. The new bridge will open in 2012.

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Kentucky’s share of the project’s cost is estimated at $2.9billion and Indiana’s share at $1.1 billion. Originally state andfederal tax revenue were set to be used to fund the bridges.But an escalating price tag and multiple delays prompted thetwo states to consider other funding alternatives. In earlyMarch, Indiana’s General Assembly authorized the possibleuse of a public-private partnership and tolling to fund the proj-ect. Kentucky’s General Assembly last year deferred a decisionon the use of a private partner to the bi-state authority . Indi-

ana is of course no stranger to transportation public-privatepartnerships, having leased its Indiana Toll Road to the Aus-tralian/Spanish infrastructure firm Macquarie-Cintra for $3.8billion in 2006.

The Bridges Authority hopes to complete its financing planfor the project by the end of the year . Current plans call forthe East End bridge to be open by 2013, the new downtownbridge by 2019, and the reconfigured Spaghetti Junction by2024. But there remains hope that if new sources of revenue orprivate partners can be found, those timetables could be spedup and considerable construction costs could be saved.

Other major Kentucky bridge crossingsOutside the important I-65 corridor, there are other mega-project bridges around the state that transportation officialssay need to be built and re-built in the coming years to furtherfacilitate mobility and commerce. Those projects are movingforward, too.

“This is the most bridge building we’ve done since the1930s. We’re going to spend a lot of money on bridgebuild-ing,” said Keith Todd, Kentucky Transportation Cabinet Dis-trict One & Two public information officer.

Lampe offered up a list of some of these crucial bridgecrossings that are currently being redesigned to meet Ken-tucky’s – and indeed the nation’s – future needs. Among them:

• The Milton-Madison Bridge – Built in 1929, the bridge,which connects Milton, Ky., to Madison, Ohio along U.S. 421 isset to be replaced. In Februar y, Gov. Beshear announced theproject was awarded a $20 million federal TransportationInvestment Generating Economic Recovery (TIGER) grant aspart of the American Recover y and Reinvestment Act. In itscurrent condition, the bridge is too narrow for present-daytraffic needs and frequently needs repairs. Superstructurereplacement cost is estimated at $131 million, to be split evenlybetween Kentucky and Indiana. Beshear’s 2010-2016 HighwayPlan provides $89.4 million for the project, more than enoughfor Kentucky’s share of the funding. The project is expectedto create or preserve more than 1,400 jobs. Construction isexpected to begin this summer with the new bridge open totraffic in 2012.

• U.S. 68 Bridges across Kentucky Lake and Lake Barkley –Both built in 1932 before Lake Barkley and Kentucky Lakeeven had been dammed, these bridges also are set for replace-ment. Construction is slated to begin in 2011 at a cost of $350million. “Those (current) bridges have 10-foot-wide lanes socommercial trucks can’t pass in opposite directions becausetheir mirrors will hit,” Lampe said. “When you get that done,you’ll have four lanes from Mayfield and beyond on to BowlingGreen. [There will be] some major improvements to movinggoods and services as a result of that.” Both bridges will takeabout two years to complete.

• George Rogers Clark Memorial (Ledbetter) Bridge –Originally built in Paducah in 1931 (and not to be confusedwith a similarly named bridge in Louisville), it’ s now too nar-row for the 8,500 vehicles that cross the Tennessee River eachday between Livingston and McCracken counties on U.S. 60. Anew bridge being constructed upstream will be finished thisyear at an estimated cost of $80 million.

• Brent Spence Bridge – Due to capacity , sight distance andsafety concerns associated with its current configuration, thisNorthern Kentucky bridge built in 1963 is considered functionallyobsolete. At an estimated cost of $3 billion, its replacement –sought but not funded – is on the order of cost of the Ohio RiverBridges Project, although it is only a single bridge. That one

26 APRIL 2010 KYBIZ.COM • THE LANE REPORT

COVER STORY

Kentucky’s Ohio River BridgesFrom west to east

BRIDGE NAME CITY/COUNTYROAD BUILT MOST RECENT REPAIR

Cairo Wickliffe/BallardU.S. 51 1937 2008

Irvin Cobb Paducah/McCrackenU.S. 45 1929 2007

Earl Clements Morganfield/UnionKY 56 1956 2005

Bi-State Vietnam Gold Star Henderson/HendersonU.S. 41 S 1966 2007

Bi-State Vietnam Gold Star Henderson/HendersonU.S. 41 N 1932 2007

Glover Cary Owensboro/DaviessU.S. 60 1940 1988

William Natcher Owensboro/DaviessU.S. 231 2002 N/A

George Rogers Clark Memorial Louisville/JeffersonI-65 1929 1993

John F. Kennedy Louisville/JeffersonI-65 1964 2008

Milton Madison Milton/TrimbleU.S. 421 1929 2009

Carroll Cropper Burlington/BooneI-275 1977 2001

Brent Spence Covington/KentonI-75 1963 1991

Clay Wade Bailey Covington/KentonU.S. 25 1974 2000

John Roebling Covington/KentonKY 17 1867 2009

Taylor Southgate Newport/CampbellU.S. 27 1995 1995

Dan Beard Newport/CampbellI-471 S 1976 2004

Dan Beard Newport/CampbellI-471 N 1976 2004

Combs Hehl Brent/CampbellI-275 W 1979 2010

Combs Hehl Brent/CampbellI-275 E 1979 2010

William Harsha Maysville/MasonU.S. 62 2000 N/A

Simon Kenton Maysville/MasonU.S. 62 1930 2002

Carl Perkins Portsmouth/GreenupKY 8 1987 N/A

Ben Williamson Ashland/BoydU.S. 235 1930 2008

Ashland 13th St. Ashland/BoydU.S. 23 1985 2005

Source: Kentucky Transportation Cabinet

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THE LANE REPORT • KYBIZ.COM APRIL 2010 27

bridge, however, carries both Interstates 71 and 75 across theOhio River between Northern Kentucky and Cincinnati. Origi-nally designed for 80,000 to 85,000 vehicles a day, the bridge todayregularly sees twice that number. “It was designed to be threelanes wide and have shoulders on both sides,” Lampe said. “Theytook out the shoulders and made it a four-lane bridge, so there’straffic that goes through with no shoulders.”

New bridges bring economic developmentTo see what a new bridge can do for a region, consider theexperiences of two communities in Kentucky – Maysville andOwensboro – that have each seen recent construction of oneof these bridge megaprojects and that are now beginning toreap the rewards.

The William Harsha Bridge, which opened in 2001, con-nects Maysville with Aberdeen, Ohio, across the Ohio Riveralong U.S. 62. It’s just a few miles downstream from the his-toric Simon Kenton Bridge, which was constructed in 1931.The construction of the new bridge allowed for the temporaryclosure of the Kenton Bridge in 2003-2004 as a $5.7 millionrehabilitation was completed. Now with both bridges open,trucks can avoid a circuitous route through downtownMaysville and take the wider, more truck-friendly HarshaBridge across the river.

“Right now most of the heavy traffic goes to the new bridge,and we’re hoping that our old bridge will last another 75 to100 years,” said Maysville Mayor David Cartmell.

With the new bridge has come economic development aswell, according to the mayor.

“Where the bridge is located within probably two milesfrom there, we have an industrial park and we’ve had twomajor plant expansions there since the bridge has been built,”he said.

The William H. Natcher Bridge, opened in 2002, connectsOwensboro with Rockport, Ind., along U.S. 231. It’ s part of amuch larger project that will include a new 22-mile, four-lanestretch of 231 from the bridge north to I-64. That 22-mile sec-tion, built by the state of Indiana, is opening this fall, 10 yearslater than originally planned.

“That will be a major economic driver for western Kentuckyin the future,” said Jody Wassmer, president of the OwensboroChamber of Commerce. “At the same time, work has begunon a new 2.2-mile extension of the U.S. 60 bypass around

Owensboro’s east side. When completed, this will work withthe new U.S. 231 north of the Natcher Bridge to create a new,100-mile four-lane highway between I-64 in southern Indianaand I-65 near Bowling Green. We believe this new interstatecorridor connector will bring new growth to the region withincreased traffic and related opportunity.”

Kentucky Chamber of Commerce President Adkissonagreed. As Owensboro mayor from 1987 to 1995, he was instru-mental in pushing for the bridge.

“The project is still unfolding,” he said. “There are indus-tries that have located because they knew the bridge was goingto open in 2002. AK Steel located in southern Indiana acrossfrom Owensboro with a promise by Indiana to build a four -lane road to the new bridge.”

The Owensboro-Henderson area is also expected to benefitfrom the construction of I-69, a seven-state, 2,600-mile corri-dor sometimes called the NAFTA Superhighway due to itspotential to assist in trade with Canada and Mexico. Namedone of six “Corridors of the Future” by the U.S. Departmentof Transportation in 2007, it will require a new Ohio Riverbridge two miles east of Henderson that is expected to cost$1.4 billion. Although preliminary environmental work ceasedin 2004 due to a lack of funding, Kentucky last year startedupdating portions of the Pennyrile, Western Kentucky andPurchase parkways to become part of the new interstate. Indi-ana is expected to complete 65 new miles of I-69 betweenEvansville and Indianapolis in the next two years.

“We believe the progress being made in both Kentucky andIndiana will build momentum for the I-69 bridge to be builtsooner than later,” Wassmer said via e-mail from Washington,D.C., where he was lobbying on behalf of the project and otherinfrastructure spending in March.

Despite all the success that bridge mega-projects promise, ana-lysts point out that every bridge is important to someone, espe-cially if they use it to get to work or to get home on a daily basis.Every bridge is also important to the overall transportation system.

“In the United States, we tend to focus on megaprojects inmajor urban areas,” Lampe said. “But there are bridge needsin every county and they’re all going to improve commerceand improve public health and safety.” ■

Sean Slone is a transportation policy analyst at the Council of State Governments in Lexington.

This rendering shows the design of the r eplacementbridge across Lake Barkley at U.S. 68. An identicalbridge will cross Kentucky Lake. The pair of bridgeswill cost $350 million and replace the narrow current structures built in 1932. Construction forboth is to begin in 2011 and take two years.

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TOYOTA’S top Kentucky execu-tive has been assigned a centralrole in putting the world’s lead-ing auto manufacturer’ simage-denting recall woes in

the rearview mirror. Steve St. Angelo, presi-dent of Toyota Motor Manufacturing Ken-tucky and executive vice president of ToyotaMotor Engineering & Manufacturing NorthAmerica, is now also chief quality controlofficer for North America.

Kentucky’s business and governmentsectors alike wish St. Angelo well – Toyotahas a $3.9 billion annual impact on stateGDP, according to Gov. Steve Beshear.

“Toyota’s presence in Kentucky has atremendous impact on the state’s econ-omy,” said Beshear. “Since opening itsGeorgetown manufacturing facility in1988, Toyota has also located its NorthAmerican manufacturing headquartersin Erlanger and North American Parts

Center in Hebron, investing a total of$5.5 billion in the commonwealth. Toy-ota’s decision to locate in Kentucky ledto a significant addition of jobs for sup-pliers and support businesses – some65,000 Kentuckians now work in sup-port of the auto industry.

“In 2008, Toyota’s employment impacton Kentucky’s economy, either directly orindirectly, was an estimated 37,100 jobs,generating approximately 2 percent ofKentucky’s total employment.”

Beyond the private sector billions,Toyota’s presence generates largeamounts of occupational and propertytax revenue for state and local govern-ments. Suffice it say, the last thing thestate needs in a “jobless” economic recov-ery is big trouble for the largest memberof its automaker sector.

“The new organization will open thelines of communication globally and

enable us to respond faster here inNorth America to any concerns aboutour vehicles,” St. Angelo said via a newsrelease March 25 announcing the NorthAmerican Quality Task Force. “In keep-ing with (Toyota CEO) Akio Toyoda’smandate, North America will havegreater autonomy and play a criticalrole in decision making on recalls andother safety issues.

“We are making fundamentalchanges in the way our company oper-ates in order to ensure that Toyota setsan even higher standard for vehiclesafety and reliability, responsiveness tocustomers, and transparency with regu-lators,” St. Angelo said.

Meanwhile, aggressive 0 percentfinancing and subsidized lease incentivesToyota launched in March were wellreceived in the marketplace. Sales jumped41 percent. Automotive News reported thatEdmunds.com forecasts U.S. light vehiclesales for all makesfor March will beup 31 percent froma year ago. Toyota’sincentives lead theway and its vehiclesare selling strong,according to CarlSwope in Elizabeth-town and T racyFarmer inLouisville, each ofwhom sell a varietyof lines of vehiclesat multiple Ken-tucky dealerships. (See related story, Page 30)

Barring another major safety-relatedrecall in the near future, Toyota appearsto be putting the organization-testingdifficulties behind it.

Distress in the BluegrassThe 6,000-plus Toyota team members inGeorgetown were upset about cars theyproduced being among those recalled inJanuary because of reported uncontrolledaccelerations. Television news crews sud-denly became regular visitors, and theywere not focusing their cameras on the 10J.D. Power and Associates Initial QualityStudy award banners hanging at TMMK,the most of any car production site in theUnited States.

Among vehicles recalled in connec-tion with customer-frightening acceler-

28 APRIL 2010 KYBIZ.COM • THE LANE REPORT

AUTO MANUFACTURING

Putting Recalls inthe Rearview Mirror

Toyota gives its top Kentucky executive St. Angelokey quality control oversight role for company

BY MARK GREENSteve St. Angelo, president Toyota MotorManufacturing Kentucky

Toyota team members assemble a vehicle March18 in Georgetown at Toyota Motor ManufacturingKentucky. The worker inside the vehicle is sittingon a device Kentucky team members suggested foreasier access to their task.

Mark G

reen photos

April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 28

ation complaints were 2007-2010 Cam-rys and 2005-2010 Avalons built onTMMK’s Line 1. There are two produc-tion lines in Georgetown; Camry, CamryHybrid and Venza vehicles made onLine 2 were not recalled.

With media reports growing more andmore sensational and questions expand-ing to virtually all Toyota products, thecompany halted all production and salesof its vehicles for a week as engineers,administrators and executives looked forthe root cause and extent of the fix.

TMMK employees approached St.Angelo on the factory floor, expressingconcern and asking what they could do,said Rick Hesterberg, the Georgetown-based assistant manager for external affairsfor TEMA.

“Our team members took this recallvery personally,” Hesterberg said.

Worry among workers and manage-ment who build the Camr y, CamryHybrid, Avalon and Venza in Scott Countyrippled from the massive production facil-ity to much of Kentucky, the nation’s No.3 auto manufacturing state. More than 90of the state’s nearly 450 vehicle parts mak-ers count Toyota as a key customer.

Toyota’s overall President Akio Toy-oda came to Kentucky Feb. 25, visitingwith St. Angelo and the company’s teammembers in Georgetown a day after tes-tifying before Congress in Washington.He created the Special Committee forGlobal Quality the next week.

Toyota officials took further steps inlate March to improve information flow tokey decision makers within their world-wide operation. Hesterberg said Toyodahimself said the organization was slow tosee the problem it was having, and thatmade it slow to react

Bad news can be a reluctant travelerup the chain of command of an organi-

zation, whether due to sheer size, cul-tural differences or that age-old fearabout the fate of the messenger. Infor-

mation flow will play a significant rolefor the new Toyota entities of which St.Angelo is now a member.

THE LANE REPORT • KYBIZ.COM APRIL 2010 29

Toyota Production in KentuckyYEAR LINE 1 LINE 2 AVALON CAMRY1 SOLARA VENZA CAMRY2 TOTAL2006 254,483 249,405 100,014 358,545 41,077 4,252 503,8882007 261,737 252,853 76,186 358,078 28,479 51,847 514,5902008 228,141 228,151 51,318 334,067 17,578 6,521 46,808 456,2922009 163,104 185,133 27,513 225,524 0 75,896 19,304 348,237

1 Gas 2 HybridSource: Toyota Motor Manufacturing Kentucky

Toyota Motor Manufacturing Kentucky in Georgetown.

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30 APRIL 2010 KYBIZ.COM • THE LANE REPORT

AUTO MANUFACTURING

He will guide the implementation ofregional improvements in concert withthe Special Committee for Global Qualityled by Toyoda. As chief quality officer forNorth America, St. Angelo will serve withcounterparts from the other regions onToyoda’s committee, which met for thefirst time on March 30 in Japan.

Each regional task force is specificallycharged with executing a six-point actionplan outlined back on Feb. 5 by T oyoda.Its elements include improved qualityassurance; enhanced customer research;strengthened quality management train-ing; incorporation of best practicesthrough outside professionals; closercooperation with regulatory authorities;and improved regional autonomy.

Communication was key during theearly days of the Toyota crisis. TMMKand other company production facili-ties stay in close contact with suppliers,Hesterberg explained. Toyota execu-tive, engineers and workers trade visitswith suppliers and share best practicesto help keep costs down and improveproductivity. Open channels of com-munication had long been in exis-tence, headed by TMMK’s purchasingdepartment.

“We kept open lines of communication.They were concerned,” Hesterberg said.

As with the company’s workers, Toy-ota seeks a long-term relationship withsuppliers in which the benefits, financialand otherwise, flow both ways, he said.

“They have to make a profit. We haveto make a profit,” Hesterbergexplained. “Obviously suppliers have tohave success, too, or we can’t succeed.”

Ultimately, the acceleration problemwith the Georgetown-produced Toyotaswas pinned down to a pedal being sup-plied to TMMK Line 1 by CTS Corp. inElkhart, Ind. Line 2 uses a pedal fromanother supplier.

“It was a mechanical issue with thatpart,” Hesterberg said. “It had nothingto do with how a team member wasassembling that part.” ■

Mark Green is editorial directorof The Lane Report.

([email protected])

CAR sales are regaining momentum according to thetrio of major Kentucky dealers The Lane Reportchecked with in late last month. In fact, March num-

bers could rival those of “clunker” month last August.“This month will speak volumes when the numbers come

out,” said Carl Swope, who along with his brother Bob leadsthe Swope Family of Dealerships, based in Elizabethtown.“The preliminary reports are very encouraging.”

Together, the Swopes’ father Bill and uncle Sam beganselling cars in 1952. Today the Swope Family of Dealershipsand affiliated Sam Swope Group have 25 dealerships with 28franchises in Hardin, Jefferson, Fayette and Madison coun-ties in Kentucky and Southern Indiana.

“I join the majority who who expect steady improvementthrough the year,” Swope said. “March has been a prettyexciting month for us.”

January and February are traditionally slower months,especially so this year with extra harsh winter weather. Addi-tionally, Swope said he believes the media storm regardingToyota recalls affected other brands, too – and he wouldknow since the various Swopes sell Chr ysler, Dodge, Jeep,Nissan, Toyota, Ford, Mitsubishi, Hyundai, Cadillac, Buick,GMC, Infinity, Lexus, Honda, Acura, Toyota, BMW andVolvo.

“I think the whole industry was in a funk last month (Feb-ruary) because of the Toyota situation,” he said.

Tracy Farmer owns the OxmoorAutomotive Group of seven dealer-ships centered on Shelbyville Road inLouisville. They sell Toyota, Scion,Ford, Lincoln, Mercur y, Isuzu,Hyundai and Mazda.

“We’re nearly back to where we werebefore,” said Farmer. That means priorto the financial crisis that hit in fall 2008,crippling credit operations and slam-ming the brakes on the economy andcredit-sensitive car sales all over theUnited States.

The improvement has been less dra-matic for Paducah Ford Lincoln MercuryMazda, according to Owner/PresidentLarry Stovesand. But that’s because his27-year-old operation did not experiencea significant falloff in sales during thedepth of the recession.

“It was never that bad for me,” saidStovesand, who took over ownership ofhis Paducah dealership in 1983 andopened another in Nashville four yearsago. Overall annual sales were up yearover year in 2007, 2008 and 2009.

Why? “Who knows,” he said, “but Idon’t look a gift horse in the mouth.”

Farmer agreed with Swope’s assessment that March saleswill rival those of last August when the federal Cash forClunkers program revved up a moribund market. The

clunker program, which providedvouchers of up to $4,500 when cus-tomers traded in a wide range of older,low-gas-mileage vehicles on new cars,was akin to the Christmas sales seasonfor retailers, Swope said. “Most dealersmade their money in clunker month.”

A major reason for the current salesboost is the “serious set of incentives”Toyota introduced in March to reinvig-orate its sales, prompting other makersto follow suit or be left behind. Buyersobviously feel “Toyota still makes safecars despite all the media hysteria,”Swope said.

Toyota’s sales have been strong the past month, and it hasplenty of product available, Farmer said, suggesting othervehicle producers “cut back perhaps too much.”

Stovesand also said he is experiencing inventory difficul-ties with some vehicles. “I am short of big SUVs,” he said,“and probably will be for the rest of the year.”— Mark Green

March Car Sales Approach Pre-Recession Levels

Tracy Farmer, OwnerOxmoor AutomotiveGroup

Larry Stovesand President/OwnerPaducah Ford LincolnMercury Mazda

Carl SwopePresidentSwope Family of Dealerships

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SIX of Kentucky’s hotels havegarnered the prestigious AAAFour Diamond Award 2010 foroutstanding service, amenitiesand attention to detail.

The award winners are: The CincinnatiMarriott at RiverCenter (Covington),Griffin Gate Marriott Resort (Lexing-ton), 21c Museum Hotel (Louisville), TheBrown Hotel (Louisville), The SeelbachHilton (Louisville) and the MarriottLouisville Downtown.

These hotels are among the finest inthe country as measured by the AAA Dia-mond Rating Process, the premier hotelrating program in North America. It’s awell-respected rating system of the mem-ber-driven AAA (formerly the AmericanAutomobile Association) travel, diningand insurance company. The DiamondRatings help members decide the type oflodging experience that best fits theirtravel needs, and 32,000 hotels through-out the United States, Canada, Mexicoand the Caribbean have been rated in thefive-tiered AAA system.

“It gives the customer a level of con-fidence that you have a high ser vicelevel, and that you are going to get a

great experience,” said Jon McFarland,general manager of The Seelbach.

The ratings are based on memberfeedback and the work of professionalevaluators who assess hotels on a 27-pointsystem. And every rated hotel must meetbasic quality standards related to comfort,hospitality and cleanliness.

Though the hotel industry has faceda slump like most other sectors of theeconomy, these hotels have weatheredthe economic storm. And general man-agers of the Four Diamond hotels saidthings are looking up this year.

“We believe 2010 shows a lot of prom-ise with upcoming events like theBreeder’s Cup. We look forward to seemany new faces as well as the return ofmany loyal guests,” said Guy Genoud,assistant general manager of The Brown.

21c General Manager Clare Evansagreed: “We’ve already witnessed a muchbigger pickup as of last quarter. We endedlast year ahead of ‘08, and we are predict-ing growth this year over last.”

Now, take a closer look at the awardwinners:

21c Museum Hotel (21chotel.com)is an innovative mix of lodging and art.

The 90-room boutique hotel in down-town Louisville features an art museumand award-winning restaurant Proof onMain. The art doesn’ t stop in themuseum – works are scattered through-out the hotel and in the rooms. 21c isthe only American museum dedicatedexclusively to 21st-century art.

Besides the unique accommoda-tions, the 21c approach to ser vice alsosets it apart.

The hotel didn’t take too much of ahit during the economic downtown,Evans said, and has found a balanceamong varied travelers that keeps busi-ness brisk.

“With our strong focus on art andthe museum, we’re very fortunate tohave a mix of corporate and leisure trav-elers,” Evans said. “What is so wonder-ful with art is that it’s drawing people asa destination in itself.”

The Brown Hotel (brownhotel.com)is one of Louisville’s historic hotels,styled in classic English Renaissancearchitecture marked by a two-story lobbywith a hand-painted ceiling, marblefloors and carved mahogany furnishings.The Brown is often the landing place forpeople after a night at the adjacentBrown Theatre or Palace Theatre.

The Brown continually looks toimprove service, a key to Four Diamondsuccess, said assistant General ManagerGenoud.

“Although we pride ourselves onhaving the very best accommodations

32 APRIL 2010 KYBIZ.COM • THE LANE REPORT

HOTELS

Luxury & SophisticationSix Kentucky hotels rate one of AAA’s

highest stamps of approval for service with style

BY FEOSHIA HENDERSON

Open since 2006, 21c Museum Hotel in Louisvilleis a 90-room hotel that features contemporary artfrom living artists exhibited throughout its guestrooms, galleries and public space.

Built in 1923, The Brown Hotel in Louisville combinesold-world charm and contemporary luxury. One of thehotel’s restaurants, J. Graham’s Café, is said to be theoriginator of the legendary “Hot Brown.”

The Seelbach Hilton in Louisville was built in 1905.The historic hotel inspired author F. Scott Fitzgeraldto use The Seelbach as a backdrop for Tom andDaisy Buchanan's wedding in The Great Gatsby.

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THE LANE REPORT • KYBIZ.COM APRIL 2010 33

and amenities, we continue to worktirelessly to improve them. We try toanticipate the needs of our guests andstrive to exceed their expectations,” he said.

The Seelbach Hilton is a study incontrasts (seelbachhilton.com),describing itself as a place “whereEuropean Charm Meets Southern Hos-pitality” and which houses “HistoricalElegance with Today’s Modern Neces-sities.” The hotel, built in 1905, ishome to a Five Diamond restaurant,The Oakroom. Recently, this historichotel (on the National Register of His-toric Places) underwent a $12 millionrenovation, adding new furnishings,lighting and carpeting along with 37-inch high definition televisions andhigh-speed Internet access.

“There was not a single upgrademade to The Seelbach Hilton withoutpainstaking attention to detail and thehighest respect for the hotel’s historicintegrity,” Jon McFarland, general man-ager, said of the renovation. “We knewwe were going to polish the building’ sfaçade but were not sure what to doabout the weather-worn original win-dows. We consulted with local historicalboards and were easily convinced thatrestoring the windows, rather thanreplacing them was best.”

The hotel’s improvements coincidewith an improvement in the hotel’s busi-ness, and McFarland sees a bright 2010.

“We have seen an uptick in the indi-vidual travel bookings, but we’re alsoseeing the group business coming back.It appears at this point we are going tohave a better year in 2010,” he said.

Though Louisville Marriott Down-town, Cincinnati Marriott at River-Center and Griffin Gate Marriott Resort

& Spa all are Marriots, each hotel has itsdistinct service and style that sets it apartfrom other hotels.

The 591-room Louisville MarriottDowntown (marriott.com/hotels/travel/sdflm-louisville-marriott-downtown), has25 suites and 20 meeting rooms. The hotelhas two restaurants, Italian and American,and a Starbucks coffeehouse. It’s nearChurchill Downs, picturesque WaterfrontPark and Fourth Street Live. The hotel hastwo floors of concierge rooms, with alounge and VIP services.

The Louisville Marriott was the 2005winner of Marriott’s Full-Service HotelOpening of the Year, and that set thebar for excellent service, said GeneralManager Michael Howerton.

“The motto of hotel was identifiedas ‘Keep ’em Smiling,’ and it is reallythe focus for everyone to walk out witha memorable experience and remem-ber why they were in the hotel,” How-erton said.

The Cincinnati Marriott at River-Center (marriott.com/hotels/travel/cvgdr-cincinnati-marriott-at-rivercenter)is actually along the riverfront in Coving-ton. The newly renovated hotel boastsgreat skyline views of downtown Cincin-nati, and is just minutes from the Redsand Bengals professional sports stadiums.It also connects to the Northern Ken-tucky Convention Center by skywalk andis known as a premier destination spot forbusiness and corporate events in theGreater Cincinnati area. The 10 Westrestaurant, café and lounge offer foods,drinks and coffee. The 14-floor hotel has321 rooms, two concierge levels and 29meeting rooms.

The Griffin Gate Marriott Resort & Spahotel (marriott.com/hotels/travel/lexky-griffin-gate-marriott-resort-and-spa) in Lex-

ington brings a bit of luxury and leisure tohorse country. The Griffin Gate, which hasalso been newly renovated, has a full-ser v-ice spa including facial and massage ser v-ices and a steam room. The seven-floorhotel has 388 rooms, 21 suites and fiveconcierge levels. There’s a Rees Jones-designed 18-hole golf course, and babysit-ting services as well. ■

Feoshia Henderson is a correspondentfor The Lane Report. She can be reached

at [email protected].

The Louisville Marriott features 616 hotel roomsand suites and 50,000-s.f. of meeting space nearFourth Street Live, Slugger Field and WaterfrontPark in the heart of downtown Louisville.

The Cincinnati Marriott at RiverCenter is locatednext to the Northern Kentucky Convention Centeralong the Ohio River in Covington, Ky., andboasts great skyline views of downtown Cincinnati.

Located near the Kentucky Horse Park, the Mar riottGriffin Gate in Lexington has 409 guest r ooms, whichoverlook the rolling hills of the Bluegrass Region andthe golf course that surrounds the hotel.

AAA Hotel Gemology

Here’s how the five-tiered rating sys-tem works, according to AAA:

One Diamond: Typically appeal tothe budget-minded traveler. Theyprovide essential, no-frills accom-modations.

Two Diamond: Appeal to travelersseeking more than the basic accom-modations. There are modestenhancements to overall physicalattributes, design elements andamenities.

Three Diamond: Properties are multi-faceted with a distinguished style,including marked upgrades in theamenities and comfort level provided.

Four Diamond: Upscale in all areas.Accommodations are progressivelymore refined and stylish. The physi-cal attributes reflect an obviousenhanced quality throughout.

Five Diamond: The ultimate in lux-ury and sophistication. Accommo-dations are first class.

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CAROLYN Mounce, execu-tive director of the Somer-set-Pulaski Convention andVisitors Bureau, said she isasked sometimes if Lake

Cumberland, largest water impound-ment in the eastern United States sincethe early 1950s, is still dry.

Misinformation has run rampantsince the water level was lowered in Jan-uary 2007 for repair work on the W olfCreek Dam, she said. “We spent a lot ofmoney trying to negate the adverseadvertising and information out there.”

Lake Cumberland, often called theHouseboat Capital of the World, is thelargest U.S. lake by volume east of theMississippi. At maximum fill 760 feetabove sea level, its meandering shore-

line is 1,255 miles, nearly the 1,293-milelength of the U.S. Pacific shore and farlonger than Florida’s 770 miles (exclud-ing islands).

The lake andits recreationassets are a majoreconomic driverfor the entireregion, so lower-ing the lake forseveral years to680 feet – typicalsummer-winterpool range is 723-690 feet – was aserious concernfor everyone inthe area. Ken-

tucky Tourism, Arts and Heritage Cabi-net officials estimated annual revenueat $153 million for the four-countyLake Cumberland Region prior to thedrawdown.

Three years into the project(expected to be complete in late 2012),damage to the local economy has beenmuch less than feared but quite difficultfor a few. Everyone seems to agree thebiggest damage came from negativepress, with rival out-of-state venues fan-ning the flames.

Tourism eco-nomic figures forsome individualcounties weredown from 2007 to2008 but on thewhole were up forthe 10-countySouthern Lakesand Rivers Region,said Gil Lawson,spokesman for theTourism, Arts &Heritage Cabinet.

“It’s a complicated formula thatincludes payroll, food, fuel, lodging, anumber of factors,” Lawson said. “Thetotal economic impact of tourism inthose counties in 2008 was $253.8 mil-lion, up from $247.4 million in 2007.”

Bill Jasper, president of Lake Cum-berland State Dock in Jamestown, saidhis houseboat rental business hasdeclined, but every other aspect hadbeen growing.

“Our biggest problem wasn’t thedrawdown. It was the negative press,” hesaid. “It was so widespread.”

Some surprising results“The reality is dif-ferent from theperception, ” saidJ.D. Hamilton,president of Lee’sFord MarinaResort in Nancy,“but it’s hard torecover fromnews that was car-ried on the BBC,CBS News, and inThe New Y orkTimes. We almostneed a rebranding since our image wasseverely damaged.

“Lake Cumberland is a huge eco-nomic engine,” Hamilton said. “TheGrand Canyon has four million visitors ayear; Yellowstone Park 3.5 million.Before the drawdown, Lake Cumber-

34 APRIL 2010 KYBIZ.COM • THE LANE REPORT

RECREATION

Visitors StillMaking Waves

Out-of-state rivals’ claims of Lake Cumberland’sdemise are greatly exaggerated

BY ANNE CHARLES DOOLIN

At the state dock inJamestown, houseboatrentals are down but all other business is upduring the past year.

Carolyn Mounce,executive director of the Somerset-PulaskiConvention andVisitors Bureau

Gil Lawson, spokesmanfor the Tourism, Arts &Heritage Cabinet

J.D. Hamilton, president of Lee’s FordMarina in Nancy

April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 34

land had five million a year. Now it’smore like four million.”

Some of the impacts on visitor num-bers are not what one would expect,said Mike Wilson, deputy for projectmanagement with the U.S. Army Corpsof Engineers, Nashville Division.

“The first year,the number (ofvisitors) actuallygrew because folkswere curious. Itdeclined the yearafter that, butsince then we’veseen someincreases,” hesaid. “There are anumber of vari-ables at play aswell.

“Gas pricesshot up to $4 a

gallon in 2007 and 2008, and then theeconomy nosedived,” he said. “We’vefound that those factors tend toincrease visitors at projects near a majorpopulace, but show a bit of decrease atareas that are more remote.”

The drawdown did not affect fishing.It did create a shoreline beach in someplaces.

“The shoreline has turned out to bea tremendous asset,” said Mounce of theSomerset-Pulaski CVB.

“A lot of our customers will tell youthey actually prefer it this way,” saidJasper in Jamestown.

“The shoreline is more open toexploration now,” said Wilson. “And it’sgiven (corps personnel) the opportu-nity to pick up additional debris. Insome ways, the lake is even more pris-tine than before.”

Marina moved operationOn the other hand, the lower waterlevel created a serious problem for

some marina operators. Many took afinancial hit when their boats slipsbecame high and dry, and a few had torelocate entire operations.

“We had to move every single slip[870 at Lee’s Ford],” said Hamilton.“They all have sewer, water, electric, likea small city.”

Ed Slusser, who purchased AlligatorDock One in Russell Springs just sixmonths before the announcement, hadto move miles away from his originallocation.

“We were 100 percent full at thetime, but we’re at the head of the creek,and the drawdown left half our deck onthe bottom. It’s been an uphill battle,and the Corps has offered no monetaryhelp at all,” Slusser said.

“We had a slip there when I wasgrowing up, and when I sold my busi-ness I bought the marina,” he said. “Icouldn’t walk away. I had my whole lifesavings invested.” Renamed CaveSprings, Slusser said his marina still hasparts under construction.

The Lake Cumberland Tourism/ Eco-nomic Development Advisory Commit-tee, formed a few months ago, is workingwith local, state and federal agencies toimprove tourism and economic develop-ment. The committee includes the U.S.Army Corps of Engineers officials, Gov.Steve Beshear, and U.S. Reps. Harold“Hal” Rogers and Ed Whitfield. Theirplan makes recommendations for mar-keting, maintaining visitation levels,parking and other issues.

New initiatives, new cooperationMarina operators and tourism organiza-tions are trying new marketing ideasand events as well. Many now have“dock cams” on their Web sites, are host-ing parties and promoting their dining,or are offering discounts on slip rental.The first Lake Cumberland Grand Prixlast May, an Offshore Super Series

speedboat race, received a greatresponse and coverage. “ESPN2 filmedit, and it’s been shown over and over. Itcertainly showed the world we haveplenty of water,” said Mounce. Theevent returns June 4-6 this year.

Another upside is that businessesand individuals have joined forces asgroups to promote the region.

“We have people on the local, stateand federal levels all workingtogether,” said Hamilton. “We still havea lot of work to do, but ever ybody hascome together.”

“The Tourism Cabinet for the statehas been a tremendous asset in pro-moting our area,” said Mounce. “Andthe corps has worked tirelessly to makethe best of a situation that could havebeen horrible.”

“It’s all about the lake,” said Jasper .“There’s nothing within 1,000 miles thatcan compete with this lake, in its cur-rent condition. It’s a gift, and people nolonger take it for granted.” ■

Anne Charles Doolin is a correspondentfor The Lane Report. She can be reached

at [email protected].

Mike Wilson, deputyfor project managementwith the U.S. ArmyCorps of Engineers,Nashville Division

Although its level is lower for dam r epair, LakeCumberland continues to attract fleets of visitors.New shoreline beach areas are proving to bepopular, and fishing has not been af fected.

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36 APRIL 2010 KYBIZ.COM • THE LANE REPORT

ONE of my favorite movie linescomes from the classic “CoolHand Luke”: “What we’ve got

here is a failure to communicate.”Business owners and managers often

make the mistake of failing to commu-nicate, or they communicate the wrongmessages. This is a mistake that willalmost always costs you money.

Why? Good communication is goodmarketing. Poor communication – ornone at all – leaves customers, employ-ees, vendors and others in the darkabout you. That can hurt not only yourreputation but also your bottom line.

The constant pressure of “staying inthe black” can cause tunnel vision. Youmake excuses: “It’s my company; Iknow more about this than anyone

else. With the economy suffering, Ineed to make money to keep peopleemployed. I don’t have time to stopwhat I’m doing to let others knowwhat’s going on. I don’t have money tomarket the company.”

It’s time to break through that tun-nel vision and position yourself for theexpected economic recovery. Here aresix steps you can take to improve com-munications within your company:

• Identify all of your audiences – It’sa mistake to focus only on your cus-tomers. Other important audiencesinclude employees, investors, boardmembers, family and friends, vendorsand suppliers, and local business andtrade media. Make a list that spells outeach audience, plus how you commu-

nicate with them. If your audiences areconsistently updated about your com-pany, they help you spread your busi-ness message – and become youradvocates.

• Showcase your successes – In adown economy, a successful businessbecomes a news story. Take opportuni-ties to tell the news media – and yourother audiences – about new business,contracts, a successful program, etc.

• Create simple business messages – Ifyou had only 20 seconds to sell your com-pany’s products or services to the country’stop CEO, what would you say? What makesyou different or unique from your com-petitors? You have to create those mes-sages. Then, you have to ensure they areprominent on your marketing materials,your Web site and in the minds of youraudiences. You have to be able to say youare better than your competitor – andback it up with your performance.

• Beef up your marketing plan –Admit it. When business slows down,you normally cut the marketing budgetfirst. Then you’re surprised when busi-ness slows even further. Duh. To growyour business, invest in a comprehensivemarketing program. It doesn’t have tobreak the bank, but it has to be targetedto your potential customers.

• Pick low hanging fruit – Your existingcustomers should be a priority. Considerloyalty programs, special deals, perks ande-newsletters with coupons for customerswho already know you. They’ll tell othersabout how great you are.

• Recognize your limitations – You arean expert at running your company. How-ever, you are probably not a trained com-munications specialist. If you have atrained professional on staff, listen tohim/her. If you don’t have someone onstaff, contract with a professional to pro-vide recommendations.

The present can be a time of businessrevival and recovery. You may have the bestproduct or service, but if people don’tknow about it, you won’t sell it. Don’t letothers accuse your company of having “afailure to communicate.” ■

MARKETING

‘A FAILURE TO COMMUNICATE?’Six steps to taking your company to the next level

BY JOE LILLY

Joe Lilly is executivevice president of NewWest, a full-servicemarketing, publicrelations andadvertising firm in Louisville.

April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 36

THE disconnect between Washingtonand the rest of the country has neverbeen greater. Why can’t the political

class in the District of Columbia producea fiscal product that voters, taxpayers andinvestors are willing to consume?

According to The Washington Post, vot-ers want smaller government and fewergovernment services by a large 58 percentto 38 percent margin. Pollster Scott Ras-mussen reveals that 61 percent of votersbelieve tax cuts help the economy, that 59percent think tax cuts are a better job-cre-ation tool than increased governmentspending and that another 59 percentbelieve higher deficits hurt the economy.

Rasmussen also reports that a full 83percent of Americans blame the deficiton the unwillingness of politicians tocut government spending. And get this:In a whopper of a poll result, The NewYork Times reports that 75 percent ofAmericans dislike Congress.

This is why there’s a political revolt outthere. Washington just doesn’t get it.

Inside the Beltway, Democrats aresending a profoundly pessimistic mes-sage that only government knows best.But out there in the heartland there isan optimistic message that We the Peo-ple know best. And that heartland opti-mism will not be stopped.

The future of the U.S. economy –including jobs, growth and the stockmarket – hangs in the balance. Govern-ment-controlled healthcare, with Senatevote-purchasing and union special-inter-est loopholes, is not the answer. Nor is a$2 trillion tax hike on banks, multina-tional corporations, capital gains, inher-itance and successful upper-incomeearners. Nor is a doubling of the pub-licly held federal debt to $19 trillion, ornearly 80 percent of gross domesticproduct. Nor is a federal spending ratioof 25 percent of the economy. Nor is abudget deficit at a 10 percent share ofGDP for as far as the eye can see.

Politicians are delivering a fiscalproduct that no one in America wants.It’s no wonder small businesses aren’thiring. Yes, there is a cyclical recover ygoing on, but it is incomplete withoutthe jobs.

The so-called $85 billion jobs pro-gram is not a jobs program at all. It is aspending bill. Temporary tax credits tohire new workers have virtually no per-manent job-creating effect. In budgetterms, these kinds of temporary taxcredits are scored as tax expenditures —i.e., spending. Only a permanent reduc-tion in the marginal business tax ratehas the incentive effect for long-run jobcreation. Reducing the business tax ratemakes firms more profitable after-tax.And it gives them more cash flow. Thoseincentives will work to expand invest-ment and jobs.

And taxing capital is the worst idea ofall. That’s why the capital-gains tax mustnot be increased. Plus, raising the top twoincome tax brackets from 33 percent to 35percent, and then from 35 percent to 40percent, thereby penalizing those whoown about half of the small-businessincome, is a job-destroyer.

Why Republicans are flirting with thisterrible temporary small-business taxcredit is beyond me. This is a moment forthe GOP to send a message that it is theparty of growth through across-the-boardreductions in marginal tax rates – for every-one. That includes large and small busi-nesses, along with all individuals andfamilies. All producers and investorsshould get lower tax rates. At a bare mini-mum, Republicans should be fightinghard to extend the George W. Bush taxcuts on the way to a longer -term goal oflow-rate, flat-tax reform.

The time has come for our govern-ment to get out of the way, allow theAmerican people to prosper, createwealth, build businesses and advancetechnology, and let the United States bethe No. 1 country in the world fromnow until forever. ■

ECONOMIC COMMENTARY

WASHINGTON JUST DOESN’T GET ITPoliticians are delivering a fiscal product that no one wants

BY LAWRENCE KUDLOW

Lawrence Kudlow isCEO of Kudlow &Co., an economic andinvestment researchfirm in New York City.

April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 37

38 APRIL 2010 KYBIZ.COM • THE LANE REPORT

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

Arts EventsAround the State

Lori Meadows is executive directorof the KentuckyArts Council.

Kentucky Writers’ Day Celebration10 a.m.-12 p.m., April 23The Capitol Rotunda, Frankfort artscouncil.ky.gov(502) 564-3757

Governor’s Derby ExhibitionVisual arts on display in the Capitol 8 a.m.-12 p.m., April 26-May 10Kentucky State Capitol, Frankfortartscouncil.ky.gov(502) 564-3757

New Quilts from an Old Favorite:SunflowerNational Quilt Museum, Paducah10 a.m.-5 p.m. Sunday-Tuesday 8 a.m.-6 p.m. Wednesday-SaturdayApril 15-May 25quiltmuseum.org(270) 442-8856

Earth Day CelebratedNatural Materials Jewelry by MarlonObando SolanoKentucky Artisan Center at Berea10:30 a.m.-3:30 p.m., April 22 kentuckyartisancenter.ky.gov (859) 985-5448

Red River: The Narrative Works of Edgar Tolson, Carl McKenzie,Earnest Patton, and Donny TolsonKentucky Folk Art Center, Morehead9 a.m.-5 p.m. Monday-Saturday through June 1kentuckycenter.org(502) 562-0100

Anne Frank: The Diary of a Young GirlThe Historic State Theater, Elizabethtown 8 p.m., April 16-173 p.m., April 18hardincountyplayhouse.com (270) 351-0577

Want to know more?For details about art and culturalevents and activities taking place inKentucky, visit the Kentucky Arts Council Web site at artscouncil.ky.gov.

THE Folk Arts and Crafts Capital of Kentuckythis month has a new galler y offering fine artsand crafts handcrafted by a number of talented

and juried artists. A former Berea movie theater thatclosed its doors in the 1980s is now reborn as TheBerea Center for the Arts (Berea-center-arts.com).

Gallery owner Sune Frederiksen bought the build-ing two years ago and put it through a long renovation.It opened April 9. Frederiksen is also owner of the pop-ular Main Street Café restaurant on College Square inBerea, which also features arts and crafts.

The newly renovated build-ing still contains the oldmovie balcony, which hasbecome an intimate and func-tional space for performingarts, classes, workshops and seminars. Future plans including apottery shop in the former coal cellar.

Berea Center of the Arts is located on Berea’s busiest streetnext door to the public library, a short walk to either Old Townor College Square. Skilled local labor worded on the renova-tion. It is open Wednesday to Saturday; private showings areavailable other days.

Former Berea Movie Theater is New Venuefor Fine Art and Handcrafted Goods

THE Kentucky Arts Council has awarded a total of $4,385 in Individual ArtistProfessional Development grants to 10 Kentucky artists for the fourth quarterof fiscal year 2010.

The competitive matching grants of up to $500 have been awarded to: Nancy Allen,writer, Knott County; Stacey Chinn, sculptor, Fayette County; Judy Kushner, fiber artist,Scott County; John Haywood, painter and musician, Knott County; Debra Lott, painter ,Jefferson County; Hunter Stamps, ceramicist, Fayette County; Jason Howard, writer, Madi-son County; Lorinda Jones, musician, Hardin County; Gerald Tolson, musician, JeffersonCounty; and James Southard, photographer, Jefferson County.

The grants awarded include funding support for W eb site design, promotionalmaterials, production of audio and video work samples, travel to national confer-ences, exhibit preparation, and field work and research expenses.

Kentucky Arts Council Awards ProfessionalDevelopment Grants to 10 State Artists

THE Southern Arts Federation (southarts.org) has changed its name to SouthArts. The new name and logo reflect the exciting changes and new direc-tions detailed in the 2010-2016 strategic plan, Crafting the Future of the Arts in

the South. With this plan, the organization will expand its service to regions beyondits current reach. South Arts’ contact information, including e-mail and web sitedomains, will remain unchanged.

South Arts is supported in part by the National Endowment for the Arts and thestate arts agencies of its partner states: Alabama, Florida, Georgia, Kentucky,Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

Southern Arts Federation Changes Its Name to South Arts

Sune Frederiksen

A sample of the ceramic art from thenew Berea Center for the Arts.

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THE LANE REPORT • KYBIZ.COM APRIL 2010 39

THE LANE LIST

TOP TOURIST DESTINATIONS IN KENTUCKYRanked by number of visitors in 2009ATTRACTION WEB SITE VISITORS IN 2008

ADDRESS PHONE NUMBERLand Between The Lakes lbl.org 1,544,090

100 Van Morgan Drive, Golden Pond, KY 42211 (270) 924-2000Cumberland Gap National Historical Park nps.gov/cuga 883,663

P.O. Box 1848, Middlesboro, KY 40965 (606) 248-2817Kentucky Horse Park kyhorsepark.com 870,000

4089 Iron Works Parkway, Lexington, KY 40511 (859) 233-4303 Louisville Zoo louisvillezoo.com 835,807

1100 Trevilian Way, Louisville, KY 40213 (502) 459-2181Cumberland Falls State Resort Park parks.ky.gov 650,000+

7351 Ky. Hwy. 90, Corbin, KY 40701 (800) 325-0063 Louisville Bats Baseball batsbaseball.com 612,525

401 E. Main St., Louisville, KY 40202 (502) 212-2287Natural Bridge State Resort Park parks.ky.gov 600,000+

2135 Natural Bridge Road, Slade, KY 40376 (800) 325-1710Fort Boonesborough State Park parks.ky.gov 500,000+

4375 Boonesborough Road, Richmond, KY 40475 (859) 527-3131Kentucky Center for the Performing Arts kentuckycenter.org 473,709

501 W. Main St., Louisville, KY 40202 (502) 562-0100Lake Barkley State Resort Park parks.ky.gov 450,000+

3500 State Park Road, Cadiz, KY 42211 (800) 325-1708Keeneland Race Track keeneland.com 439,966

4201 Versailles Road, Lexington, KY 40510 (800) 456-3412Barren River Lake State Resort Park parks.ky.gov 411,000+

1149 State Park Road, Lucas, KY 42156 (270) 646-2151Lexington Legends Baseball lexingtonlegends.com 409,580

207 Legends Lane, Lexington, KY 40505 (859) 252-4487 Mammoth Cave National Park nps.gov/maca 403,095

1 Mammoth Cave Parkway (P.O. Box 7), Mammoth Cave, KY 42259 (270) 758-2180The Creation Museum creationmuseum.org 307,000

2800 Bullittsburg Church Road, Petersburg, KY 41080 (888) 582-4253Kentucky Derby Museum* derbymuseum.org 210,128

704 Central Ave., Louisville, KY 40208 (502) 637-1111Louisville Slugger Museum & Factory sluggermuseum.com 207,703

800 W. Main St., Louisville, KY 40202 (877) 775-8443My Old Kentucky Home State Park parks.ky.gov 100,000+

501 E. Stephen Foster Ave., Bardstown, KY 40004 (502)348-3502Churchill Downs churchilldowns.com

700 Central Ave., Louisville, KY 40208 (502) 636-4400Louisville Science Center louisvillescience.org

727 W. Main St., Louisville, KY 40202 (800) 591-2203Newport Aquarium newportaquarium.com

One Aquarium Way, Newport, KY 41071 (859) 261-7444

* Number is for 2008; facility was closed the majority of 2009 due to flooding.+ Estimate because visitors participating in hiking, boating, etc., are unable to be tracked.

Source: Individual attraction contacts, Web sites, Kentucky Department of Parks

Keeneland Race Track

Louisville Zoo

Cumberland Falls State Resort Park

My Old Kentucky Home State Park

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40 APRIL 2010 KYBIZ.COM • THE LANE REPORT

AS the Kentucky Horse Park gearsup for the FEI Alltech W orldEquestrian Games (WEG) come

September, Lexington is busy rolling outthe red carpet for all comers, whetherhorse aficionados, curious tourists or fun-seeking locals. While plans are afoot for araft of downtown happenings, the largestactivity takes place at the Lexington Con-vention Center from Sept. 25 throughOct. 10 to parallel the 16-day WEG com-petition schedule.

Produced by Lexington-based HorseCapital Productions LLC, the multi-mil-lion dollar International Equestrian Festi-val (IEF) will fill a goodly portion of thestructure’s 88,000 s.f. with a trade show fea-turing 400 high-end equine-related ven-dors, world-class educational seminars,hands-on equine-related demonstrations,live exhibits, and of course, food and shop-ping. Private VIP parties and receptionsfor events that fit IEF’s mission can takeadvantage of 10,000 s.f. of dedicated hos-pitality space.

In order to accommodate WEGexhibitors, attendees and fans, the festi-val runs from 1 until 9 p.m. daily , withwall-to-wall activities.

Presentations range from entry-levelinformation to clinician experts speakingabout the highest levels of equine competi-tion. A focus on the local Thoroughbredindustry includes talks on such topics as“Behind the Scenes at the KentuckyDerby,” “The Life and Training of aYoung Thoroughbred” and “WhatIt’s Like to Win the Derby.”

As part of the Kentucky HorseCouncil’s first-time owner seminarseries, horse trainer Julie Good-night, best-known for her award-winning reality show, Horse Master,appears daily for talks and demon-strations. Named Equine Affaire’s Excep-tional Equestrian Educator for 2008,Goodnight has gleaned multidisciplinaryexpertise in dressage, racing, jumping,reining, driving and colt-starting during a25-year career in the horse industry.

A centerpiece for live interactiveequine demonstrations, performancesand exhibits is Polytrack Park, an arenamade from Polytrack, a high-performance,all-weather racetrack surface. In keepingwith the festival motto of “Pet a horse,touch a horse, watch a horse as it’s per-forming a movement,” attendees get to see

the action up close and not from the nose-bleed section of a stadium.

Two presenters sure to be crowdfavorites are animal behaviorist MarkPeterson – featured on the History Chan-nel’s Monster Quest – and his famous Dusty,who delights kids at numerous RonaldMcDonald Houses across the country. Foran hour daily, Dusty will do such tricks asflipping the lid on a toy box, choosing atoy and handing it to a child.

In keeping with things all-equine, aportion of IEF’s proceeds will go to local,national and international charitablehorse organizations. An internationalrecipient is the Spanish Riding School inVienna, where sturdy Lipizzaners have per-formed airs above the ground for 430years. Recently, the Austrian governmentstopped funding the honored institution,which is now in need of financial support.For only the third time in histor y, thesebeloved horses will perform in the UnitedStates as a festival treat.

The event’s producer, Horse CapitalProductions, came about thanks to thecollaboration of Kimberly Eilers Brown,a former management consultant forPrice Waterhouse Coopers and competi-tive rider, and Anne Buchanan, an edu-cator and former field director of theKentucky Equine Education Program(KEEP). A shared a passion for the horseindustry has made a perfect skills combi-nation, Brown says, and the festival holdstrue to Horse Capital Productions’model, which is to promote the horseindustry through large-scale education,entertainment and tourism.

“People are coming here forWEG,” said Brown, the com-pany’s managing partner, “butthey also want to see, feel andexperience everything Kentuckyis famous for, from the Thor-oughbred industry to bourbon.The festival provides access to alot of those things and a terrific

shopping opportunity as well, all in a cli-mate-controlled venue.”

“Our vision is the vision of a legacy,”Brown said, “not just what happens fortwo weeks in 2010.”

Look for updates as Septemberdraws nigh at horsecapitalproduc-tions.com, horsecapitaltours.com or call(859) 223-2010. ■

Katherine Tandy Brown is acorrespondent for The Lane Report.

She can be reached at [email protected].

EXPLORING KENTUCKY

All Thing EquineLexington prepares to host the International Equestrian Festival

BY KATHERINE TANDY BROWN

I N T E R N A T I O N A LE Q U E S T R I A NF E S T I V A L

The Lexington Convention Center in downtown Lexington will ser ve as the host of the upcomingInternational Equestrian Festival.

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THE LANE REPORT • KYBIZ.COM APRIL 2010 41

International Bar-B-Q FestivalDowntown OwensboroMay 7-8 (800) 489-1131bbqfest.com

Start salivating now in anticipation of theannual International Bar-B-Q Festival inOwensboro, a town with a heritage ofworld-famous barbecue. In addition tocook-offs, there’ll be entertainment, spe-cial events and vendors with irresistible

goodies. Hours are 5 p.m.-midnight onFriday, 8 a.m.-midnight on Saturday.

Big South Fork Scenic RailwayMother’s Day Ride100 Henderson St.StearnsMay 9(800) 462-5664bsfsry.com

Moms ride half-price on the Big SouthFork Scenic Railway on this special day .Ride the open-air rails into Big SouthFork National Park, with a layover in theold mining town of Blue Heron, wherevisitors can learn about its past throughoral histories and “ghost structures’ thatshow where original buildings stood.Reservations are required for groups.

Kentucky Scottish WeekendGeneral Butler State Resort Park1608 Hwy. 227

CarrolltonMay 7-8 (513) 300-1904kyscottishweekend.org

General Butler State Resort Park’sannual Scottish weekend includes bag-pipes and pipe bands, highland andcountry dancing, games, Celtic music,a British car show, Scottish vendors,clans, border collies and more.

Mid-America Hound ShowShaker Village of Pleasant Hill3501 Lexington Rd.HarrodsburgMay 8(800) 734-5611shakervillageky.org

More than 20 hunt clubs will showsome 200 dogs, primarily foxhounds,but also Bassett hounds, beagles andterriers. Judges will inspect the dogs,and spectators can learn about thedogs being shown.

Upcoming Events across Kentucky

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42 APRIL 2010 KYBIZ.COM • THE LANE REPORT

Commentary on life in Kentucky

PASSING LANE

IF you were watching NASA TV on March 27,you saw a Terrier-Improved Malemute NASArocket blast off from Wallops Flight Facility in

Virginia carrying Frontier 1, a 4-pound spacecraftdesigned and built by Kentucky Space.

It ejected from the launch vehicle successfullyand went into space 167 miles above the Earth, itsplanned trajectory soon bringing it back down toburn up on re-entry into the atmosphere. However,it completed its mission of testing hardware andsoftware systems to be flown on an orbital satellitecalled KentuckySat 1, scheduled to launch with theNASA Glory Mission in November 2010.

The March event was the first time Kentucky hasever developed, built and successfully inserted afree-flying craft into space.

Kentucky Space is a nonprofit consortium involv-ing students and the resources of UK, Morehead State,UofL, Western, Murray State, KCTCS, the KentuckySpace Grant Consortium and Belcan, with supportfrom the Kentucky Council on Postsecondary Educa-tion. Kentucky Science and Technology Corp. is man-aging partner.

Students are involved in designing and develop-ing educational, R&D and entrepreneurial space

platforms. Kentucky Space also recently formed a joint venture with NanoRacks LLC,a Houston-based aerospace company, to facilitate and undertake scientific researchon the International Space Station.

“This unique partnership among Kentucky’s higher education institutions, state gov-ernment and private industry shows that the commonwealth is a bastion of high-tech, 21st-century learning, as well as limitless economic opportunity,” said Gov. Steve Beshear.

Spread the word. Meanwhile, good luck in November!

Kentucky’s First Foray into Outer Space

‘Artistic Funk,Gentlemanly Class’

NO surprise to us, but Louisvillehas been named to anothernational magazine’s list of the

Best Places to Live in 2010.Men’s Journal cited Louisville’s arts

scene, its coffee shops and stores – andspecifically touted Bardstown Road –in its April issue, which hit newsstandslast month. Other cities named to thelist include Minneapolis, Denver andNashville.

“To some,Louisville is justBourbon, base-ball bats, and afamous horserace,” the articlestates. “To thosewho know better,it’s artistic funkand gentlemanlyclass. Packed witheclectic coffeeshops, thriftstores, skate punks and bluegrass streetmusicians, Bardstown Road is a slice ofweirdness in the midst of an upscaleneighborhood. Bourbon’s reemer-gence as a sophisticated beveragerather than redneck swill parallels thecity’s cultural renaissance.”

Mayor Jerry Abramson saidLouisville’s secret is out.

“Even Men’s Journal has discovered allthe possibilities in Louisville,” he said.

LIFELONG Warren County resident Jerry “Peanuts” Gaines has been sheriff for31 years. Prior to that, he was a Warren County magistrate, interim jailer and amilitary policeman. Some public officials lose perspective over time and

develop an attitude of ownership of the office they occupy , but to his great creditGaines considers his position a sacred trust of the people.

On June 28 in Anaheim, Calif., the 3,000-sheriff-strong National Sheriffs’ Associ-ation, dedicated to raising the level of professionalism among sheriffs, is recogniz-

ing Gaines as the 2010 national Sheriff of the Year. “This honor goes to my department,” Gaines said. “W e have

the best tax collection and 99.6 percent and we are a modelcounty. This really is an honor not just for me, but for W arrenCounty and Kentucky. It means we’re No. 1 in the United States!”

Gaines is current president of the Kentucky Sheriffs’ Asso-ciation, which he also led in 1981-83, 1988 and 1994. He wasNSA president in 2000-01, and has served in various executiveand board roles with the state and national associations.

In Warren County, he’s implemented youth education andanti-drug programs that emphasize success over adversity.Among other accomplishments, he set an example of soundfinancial management that prompted legislation so it could be

followed around the state.Peanuts Gaines has achieved success by above all being ser vant of the people.

Thank you for your service, sheriff.

Louisville Mayor Jerry Abramson

“Peanuts” Gaines

‘Peanuts’ Gaines is NSA Sheriff of Year

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THE LANE REPORT • KYBIZ.COM APRIL 2010 43

THE KentuckyOffice ofH i g h w a y

Safety recentlyreleased final statis-tics for 2009 show-ing 791 trafficfatalities last year, 35fewer than in 2008and the lowest totalsince 1999, whenthe death toll was 729. Fatalities declined for the fourth consecu-tive year.

“The good news is that 35 fewer lives were lost,” Gov. SteveBeshear said. “The bad news is that people are still needlesslydying on Kentucky highways. We will not rest until the numberis zero, because one fatality is one too many.”

Gov. Beshear’s Executive Committee on Highway Safety isworking to update and implement the state’s strategic highwaysafety plan

Of the 791 fatalities last year, 649 were in motor vehicles. Ofthose, 61 percent were not buckled up and 20 percent involvedalcohol. Motorcyclists accounted for 80 fatalities. More than60 percent of those were not wearing helmets; 19 percent offatal motorcycle crashes involved alcohol.

KOHS safety initiatives include an annual “Click It orTicket” seat-belt campaign and “Over the Limit. Under Arrest”impaired driving campaign.

Traffic Fatalities Fall to 10-Year Low

Highway FatalitiesYear Fatalities1999 ..............7292000 ..............8232001 ............8432002 ............9152003 ............931

2004 ............9642005 ............9852006 ............9132007 ............8642008 ............8262009 ............791

To the Editor

WE read with great interest your February 2010 arti-cle, “Into the Big Leagues.” Louisville businessesare, indeed, fortunate to have a fine firm such as

Mountjoy Chilton Medley LLP resident in our city. My firm,PricewaterhouseCoopers, recognizes the vital role account-ing firms play in helping businesses large and small solve theirproblems. In today’s economy, more than ever, it is criticalthat businesses have a solid, steady advisor to turn to, and wesalute The Lane Report for showcasing the profession andfor helping readers understand the critical nature of theservices the accounting profession provides.

We do, however, take exception to one comment in thearticle implying that PwC has “retreated from many sec-ond-tier cities like Louisville.” With over 260 people serv-ing Kentucky-based clients from our Louisville, Lexingtonand Cincinnati offices, we have the breadth of resourcesneeded to serve companies on the move. PwC has beenserving Kentucky businesses with distinction for over 80years. We audit over 70 percent of Kentucky’ s Fortune

1000 public company revenues. Wehave a legacy in Kentucky of commit-ted service and we intend to be therefor years to come.

Sincerely,Philip Gregory, Managing PartnerPricewaterhouseCoopers LLCKentucky Practice

To ClarifyLexTran Reinstitutes CBD Trolley Service

LAST month’s Lane Listincluded a couple of typoswe’d like to fix. The presi-

dent/CEO of Bank of Kentucky isRobert Zapp. The KentuckyRegional Manager/Lexington forFifth Third Bank is Sam Barnes.

Also, while our Largest KentuckyBanks list reports the market shareand Kentucky deposits numbers thatthe FDIC compiles on a statewidebasis, Fifth Third Bank operates sep-arate affiliates in Louisville and Lex-ington. Eastern, western andnorthern portions of the state arepart of separate affiliates as well.

Lastly, a photo illustration withlast month’s Exploring Kentucky col-umn of a horse whose eye containedan image of the world actuallybelongs to this month’s Exploringtopic: the International EquestrianFestival at Lexington Center duringthe World Equestrian Games.

Downtown passenger service known as the COLT returned to Lexington April 2 after a long absence.LexTran is operating two hybrid electric and thr ee diesel trolley vehicles on two routes – one along Mainand Vine streets from Thoroughbred to Triangle parks, and another along Upper and Limestone str eets connecting the University of Kentucky and Transylvania University.

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44 APRIL 2010 KYBIZ.COM • THE LANE REPORT

KENTUCKY PEOPLE

LEXINGTON: ATTORNEY BILL LEAR ISHONORED FOR COMMUNITY SERVICE

Paul Atkinson, R

ockledge Photography &

Design photo

Bill Lear (right), chairman of the board of directors for the law firm of StollKeenon Ogden PLLC, was recently honored by Commerce Lexington for hisimpact in advancing the Lexington community. “Mr. Lear has known noboundaries in what he has given to this organization in ter ms of time, energy,resources and expertise over the last 25 years,” said Commer ce LexingtonPresident Bob Quick (left). Over the years, Lear ser ved as chairman of allthree organizations that merged to form Commerce Lexington: The GreaterLexington Chamber of Commerce, Lexington United and LexingtonPartnership for Workforce Development.

FRANKFORT: KY MORTGAGE REGULATORACHIEVES NATIONAL ACCREDITATION

State officials joined Gov. Steve Beshear to represent the Kentucky Departmentof Financial Institutions, which recently achieved national accreditation by theConference of State Bank Supervisors (CSBS) and the American Association ofResidential Mortgage Regulators (AARMR). Kentucky DFI is the thir d statemortgage regulator to achieve national accreditation. Attending the presenta-tion were (left to right) Public Protection Cabinet Secretary Robert D. Vance,President and CEO of CSBS Neil Milner, Gov. Steve Beshear and DFICommissioner Charles Vice.

Kentucky State G

overnment photo

LOUISVILLE: SEVEN NEW SHOPS NOW OPENAT LOUISVILLE INTERNATIONAL AIRPORT

Ribbon-cutting ceremonies were held last month for seven new shops atLouisville International Airport. The new shops are operated by The ParadiesShops, the airport’s news and gift concessionaire, and include The New YorkTimes Books and News, Louisville Slugger Shops, Chur chill Downs, CNBCNews Express, Heine Brothers To Go, Experience Kentucky, and Finish LineNews. Attending the ribbon cutting were (left to right) Gregg Paradies, presi-dent/CEO of The Paradies Shops; Phil L ynch, chairman of the LouisvilleRegional Airport Authority Board; Louisville Mayor Jerry Abramson; andKevin Flanery, president of Churchill Downs Racetrack.

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CAMPBELLSVILLE: TAYLOR COUNTY BANKHOLDS GRAND OPENING CELEBRATION

Taylor County B

ank photo

The Taylor County Bank recently held grand opening festivities for a newbranch located in Campbellsville. Bank Chairman James C. Miller III andPresident Henry E. Lee welcomed more than 100 guests, including business,civic and state leaders as well as bank customers.

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