education and workforce development …uflex ltd.plans to build its new elizabethtown plant in...

LANE ONE-ON-ONE: ROBERT KINGPresident, Kentucky Council on Post-secondary Education

EDUCATION AND WORKFORCE DEVELOPMENT

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Surviving national consolidation, Kentucky vehicle manufacturing emerges stronger than before.

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Corvette ZR1

GAINING TRACTION

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4 MAY 2011 KYBIZ.COM • THE LANE REPORT

Kentucky’s Business News Source For 26 Years Volume 26 Number 5

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24 MARKETPLACE OF DEGREESState’s 89 colleges and universities stay competitive by implementing new higher education programs

30 COVER STORY: GAINING TRACTIONSurviving national consolidation, Kentucky vehiclemanufacturing emerges stronger than before

32 B-B-Q PIT BOSSESBosley family grew Owensboro’s Moonlite Inn from dinerto a nationally known restaurant, catering and retail brand

36 A TALE OF TWO CITIESMore favorable tax policy and labor laws have helped Nashville grow faster than Louisville

FEATURES

2011®

KENTUCKY BUSINESS NEWSAVAILABLE ONLINE

ON THE COVERGeneral Motors announced May 4 it will invest $131 million and add 250 jobsat its Bowling Green Assembly facility for production the next generation ofits iconic Chevrolet Corvette in 2013. Since 1981, workers at the Kentuckyplant have built all Cor vettes, including the high per formance ZR1, shown, asupercharged 638-horsepower production car with an MSRP of $110,000.GM Corp. photo

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DEPARTMENTS6 Perspective

8 Fast Lane

16 Interstate Lane

17 Kentucky Intelligencer

18 Corporate Moves

19 On the Boards

38 Going Green

39 Opinion

40 Spotlight on the Arts

41 Sales

42 The Lane List

44 Exploring Kentucky

46 Passing Lane

48 Kentucky People

20 Lane One-on-One:Robert KingPresident, Kentucky Council on Postsecondary Education



LEGISLATIVE sessions are usuallymessy, and this year was no excep-tion. Before the first gavel fell, most

observers predicted gubernatorial poli-tics would cast a shadow on the session,and many predicted little would beaccomplished. Despite this, the KentuckyChamber of Commerce approached thesession with an aggressive agenda toadvance Kentucky, and we were able toaffect measurable progress in all fiveareas of the chamber’s strategic plan:improving the education attainment ofKentuckians at all levels; modernizinggovernment; promoting wellness andhealthy Kentuckians; preparing Kentuckyto successfully compete in the global mar-ketplace; and expanding Kentucky’s roleas an energy leader.

Significant legislation passed to addresscorrections reform, workplace wellnessprograms, healthcare taxes for business,and education management improve-ments. However, the legislature missedopportunities to act on three pieces of leg-islation that were critical to Kentucky’sbusiness climate. The Senate did not hearlegislation to address the persistentdropout problem in Kentucky schools.The House did not act on proposals filedto develop a more efficient tax code, norto address Kentucky’ s $28 billionunfunded pension liability. Rather thangathering around the table in search of asolution to these key issues, legislatorsstayed in their respective corners … heelsdug in deeply.

The greatest success of this legislativesession was the passage of HB 463, legis-lation designed to reform Kentucky’sovercrowded and financially unsustain-able prison system. This legislationaddresses an area of excessive spendingidentified by the chamber’ s LeakyBucket report in 2009. It will save thecommonwealth $422 million over thenext 10 years. At the same time, the billalso will protect the public and providetreatment for offenders whose drugaddiction spurs their criminal behavior.

The chamber fought to influencepassage of several business-friendly bills:

• SB 12 improves accountability inschools by allowing superintendents toplay a greater role in principal selection.

• SB 114 authorizes health benefitplans to offer incentives to memberswho participate in a voluntary healthplan wellness program.

• HB 255 alleviates administrativeburdens for business by aligning Ken-tucky’s health insurance tax exclusionlaw with that of the federal tax law.

• SB 108/HB 201 saves court costsfor small businesses and the court sys-tem by raising jurisdictional limits.

The chamber successfully helpedblock legislation that was bad for busi-ness and bad for Kentucky.

• SB 151 would have changed themakeup of Kentucky’s Public ServiceCommission by electing commissioners,which would politicize the process ofreviewing rate cases and potentiallyraise energy rates.

• SB 45 and HB 281 would haveraised healthcare costs by making pseu-doephedrine a prescription drug.

• HB 3, SB 6 and HB 111 would havecreated a patchwork of state and localimmigration laws, thus increasing theadministrative burden for employers.

The most difficult issue addressedwas how best to handle the $166 mil-lion shortfall in the Medicaid budget.The governor and House of Represen-tatives wanted to shift money from2012 and fill the hole in next year’sbudget with projected savings raisedfrom efficiencies; the Senate arguedthe only responsible way was to imple-ment cuts across state government andreplace those funds only if the savingscould be realized.

The Medicaid debate grew con-tentious and ended with a special ses-sion and several line-item vetoes by thegovernor. In the end, the shortfall wasaddressed by shifting money from nextyear’s Medicaid budget and spending itthis year. If savings are not realized bymanaged care, there will be a significantbudget problem next year.

All in all, progress was made in 2011,but there’s still much work to be done.The Kentucky Chamber has alreadybegun developing its business agendafor 2012 and will continue to work onthese issues during the interim.

*For a full breakdown of whatpassed, what didn’t and what it meansto your bottom line, download theChamber’s Results for Business reportat kychamber.com. �

STATE PROGRESSESIN ELECTION YEARGeneral Assembly gave help toKy. business; much more to do

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A compilation of economic news from across KentuckyFAST LANE

GENERAL Motors is investing $131 mil-lion in its Bowling Green Assembly Plantto support production of the next-gener-

ation Chevrolet Corvette and has announcedplans to add 250 new jobs at the facility.

The Bowling Green plant is scheduled to con-tinue building the current generation Cor vettefor at least the next two model years, includingthe 2012 model year that begins this summer.During this period, the plant will undergo arefurbishment that will include new manufac-turing machinery, equipment and tooling. Thenew Corvette model is expected hit dealer show-rooms in mid-2013.

Bowling Green has been home to Cor vetteproduction since 1981 and is the exclusive manufacturer of all versions of the popu-lar sports car (coupe, convertible, Grand Sport, Z06, and ZR1). The 1 million-s.f.plant currently employs nearly 400 production workers and a total of approximately500 employees.

An economic impact study per formed by the Kentucky Cabinet for EconomicDevelopment shows the number of direct, indirect and induced jobs that will result fromGM’s existing and new employment in Bowling Green is nearly 1,950 jobs. Those jobswill provide an annual $222 million boost to Kentucky’s Gross Domestic Product.

In addition, approximately 50,000 tourists visit the Bowling Green plant annually tocatch a glimpse of the manufacturing process, some even watching their new cars beingcompleted before taking delivery.

To encourage GM’s investment in Bowling Green, the Kentucky Economic Devel-opment Finance Authority earlier this year approved tax incentives of up to $7.5 mil-lion for GM through the Kentucky Business Investment program. Theperformance-based incentive allows GM to keep a portion of its investment over aneight-year period through corporate income tax credits and wage assessments bymeeting job and investment targets.

BOWLING GREEN: GM TO INVEST $131M FOR DEVELOPMENTOF NEXT-GENERATION CORVETTE, WILL ADD 250 JOBS

AN Indian company that produces flexible packaging materials has selectedHardin County as the site of its first United States manufacturing operations.

UFLEX Ltd. plans to build its new Elizabethtown plant in phases, with thefirst phase initially creating 125 new jobs and representing a $90 million investment.The project will ultimately double in scope for a total investment of at least $180 mil-lion and 250 jobs.

UFLEX currently produces an extensive range of packaging materials at manu-facturing facilities in India, Dubai, Mexico and Egypt and is preparing to openanother facility in Poland. The company has a market presence in 110 countries.

“It is our corporate mission to become one of the most admired companies in theglobal flexible packaging business,” said Ashok Chatur vedi, chairman of UFLEX.“Toward this objective, our group philosophy has always been to progress throughinternal growth and better customer service by setting up new manufacturing plantsas close as possible to our major markets, using state-of-the-art technology and invest-ing in global scales of production.”

UFLEX’s decision to locate in Kentucky stems from Gov. Steve Beshear’s first eco-nomic development trip to India last fall. After learning about the state’s interest inincreasing investment opportunities for foreign companies, UFLEX officials madetheir first site visit to Kentucky in January. After considering at least six other statesfor its first U.S. facility, the company settled on the Hardin County site.

“Today’s announcement that UFLEX will locate its first U.S. operation in the com-monwealth demonstrates the value of our steadfast efforts to promote economicdevelopment opportunities on a global scale,” said Beshear . “India is one of thelargest and fastest-growing economies in the world and represents unlimited poten-tial for cultivating job and investment growth.”

HARDIN COUNTY: INDIAN COMPANY TO LOCATE FIRST U.S.PLANT IN ETOWN; $180M INVESTED CREATES 250 JOBS

IN a unanimous vote by the Universityof Kentucky Board of Trustees, Uni-versity of Alabama-Birmingham

Provost Eli Capilouto has been selectedas UK’s 12th president.

Capilouto will succeedLee T. Todd Jr., who willretire June 30 after serv-ing as president of hisalma mater for 10 years.

Capilouto, 61, hasbeen provost at UAB since2005. In that capacity, heserves as the chief aca-demic officer for a university with 11schools and colleges, 17,543 studentsand some $460 million in annual exter -nal research.

A native of Alabama, Capilouto hasserved in a variety of administrative posi-tions at UAB as a dean in the School ofPublic Health and senior executiveadministrator. He holds a bachelor’sdegree from the University of Alabama,a doctorate of dentistry and master’s ofpublic health from UAB and a doctoratein health policy and management fromthe Harvard University School of PublicHealth. During his tenure at UAB, he hashelped lead the adoption of the univer -sity’s strategic plan, an integrated andmore transparent budgeting system, andcontinued increases in research fundingfor an institution that is one of thenation’s leading public medical andhealth sciences’ campuses.

“Eli Capilouto represents the rightblend of intellect, experience and innova-tive leadership to become UK’s next presi-dent,” said Britt Brockman, chairman ofthe UK Board of Trustees. “That combina-tion of skills and attributes is exactly whatour institution needs right now as we con-tinue our drive to become a Top 20 publicresearch institution in the midst of chal-lenging economic times.”

LEXINGTON: UK TRUSTEESSELECT UAB PROVOST TOBE UK’S NEXT PRESIDENT

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

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

Eli Capilouto

GM’s Bowling Green Assembly Plant is the exclusive manufacturer of the iconicCorvette sports car.

GM

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THE LANE REPORT • KYBIZ.COM MAY 2011 9

BOWLING GREEN� In an effort to strengthen business relations between the south-cen-tral Kentucky region and Indian companies interested in doing busi-ness there, an Indo-Kentucky Chamber of Commerce has beenformed. Rodney Kirtley, executive director of the Barren River AreaDevelopment District, told The (Bowling Green) Daily News that because agreat deal of India’s infrastructure is already at capacity, Indian compa-nies often look to other countries to expand. “W e want them to con-sider Kentucky and think we will have a better opportunity if we havean Indian chamber,” he said. Kirtley said he believes the new organiza-tion could potentially draw several hundred members from the region.

� The Western Kentucky University Board ofRegents has approved adding a new doctor of physi-cal therapy degree. The program, which will beginthe fall of 2012, is the third professional practice doc-torate program at WKU. WKU currently offers a Doc-tor of Educational Leadership and is implementing adoctor of nursing practice. The Board of Regents alsoapproved a master of arts in teaching degree that would prepare stu-dents for initial teacher certification at the graduate level, a master ofarts in social responsibility and sustainable communities, and a bachelorof science in mathematical economics.

CORBIN� Baptist Regional Medical Center has informed its staff that it willneed to cut approximately 100 jobs in June in order for the hospital tobe financially viable. Hospital management said that the reductions aredue to “the increasing demand to provide care for an ever -increasingnumber of patients without the resources to pay for their care.” In addi-tion, the hospital has experienced funding cuts as well as steadily declin-ing insurance reimbursements. Management is hoping that as manycuts as possible will be made through attrition and early retirements.Baptist Regional is one of the area’s largest employers, with more than1,100 workers.

ERLANGER� Convergys is adding 180 new jobs at itscustomer contact center in Erlanger tosupport five customer service programs inthe Greater Cincinnati area. Cincinnati-based Convergys specializes in relationship

management and has approximately 70,000 employees in 67 customercenters worldwide. The company currently has some 900 employees atits Erlanger center.

� Toyota Motor Corp.,which has its North Amer-ican engineering andmanufacturing headquar-ters in Erlanger , hasannounced that itexpects production of allvehicle models to be backto a normal schedule bythe end of the year. Thecompany’s operationshave been significantlyimpacted by the devastat-ing earthquake andtsunami that hit Japan earlier this year. As a result, Toyota manufactur-ing plants have been forced to slow vehicle production as they wait forparts coming from Japan.

FLORENCE� Bucking a national trend that has seen wagering drop nearly 8.5 per-cent, Turfway Park ended its 2011 Winter/Spring Meet with wageringincreases. On-track handle on Turfway races rose 6.3 percent to$5.647,604, while all-sources wagering on Turfway races rose 3.3 per-cent to $95,013,790. As part of the effort to drive handle, Turfwaychanged its Saturday post time from 1:10 p.m. to 5:30 p.m., introduc-ing Saturday Night Lights as a “date night” complement to its successfulDollar Friday promotion. As a result, the track saw increases in food andbeverage business as well as on-track simulcast handle.

BUSINESS BRIEFS

THE American Bankers Association’s Bank-ing Journal’s April 2011 issue ranksLouisville-based Republic Bancorp as

one of the nation’s top financial institutionswith assets of $3 billion or more.

Republic was listed fourth in the publica-tion’s 19th annual ranking, which was deter -mined by the Return on Average Total Equity(ROAE) as compiled by Highline FinancialLLC, a source of banking information andanalytics serving the financial industry.

In an overview of the analysis, Banking Journal noted thatthe “top performing institutions remained more efficientthan their peers and maintained lower levels of nonper -forming loans. They maintained yields on assets despite theprevailing interest rate environment.”

Republic is the parent companyof Republic Bank & Trust Co.,which has 35 banking centers in 13Kentucky communities and threebanking centers in southern Indi-ana, and Republic Bank, which has

banking centers in Cincinnati, Ohio, and three Florida com-munities. The company also operates Tax Refund Solutions,a nationwide tax refund loan and check provider.

Republic has $3.6 billion in assets and $1 billion in trustassets under custody and management.

LOUISVILLE: REPUBLIC IS FOURTH BEST U.S. BANK BASED ON ROAE RANKING

Steve Trager,CEO, Republic Bank

WAUSAU Paper is investing $220 million to expandits plant in Harrodsburg, where it has producedtowel and tissue paper products since 1990.

The expansion is part of the company’s response to grow-ing demand for “green products” and will involve the instal-lation of a paper machine that will produce approximately75,000 tons of towel and tissue products per year.

Wausau President and CEO Thomas J. Howatt said thenew machinery will give the plant the capability to producegreen products at a quality level that is comparable to thebest virgin-fiber products on the market today . Howatt saidWausau’s tissue segment has been its best per forming busi-ness over the last decade and that this latest investment willserve to accelerate that growth and profitability.

Since the company introduced its Green Seal-certifiedline of products in 2003, it has grown to more than half ofthe Wausau’s total towel and tissue volume. As a result, thecompany has outlined a plan to double the revenue andoperating profit of its tissue segment over the next five toseven years, with the Harrodsburg investment ser ving as acornerstone of that strategy.

Construction is scheduled to start this summer and oper-ations are expected to begin in the first quarter of 2013.

The expansion will add 76 new jobs to Wausau’s existingstaff of 397.

The Kentucky Economic Development Finance Author -ity preliminarily approved Wausau Paper for tax incentivesof up to $6 million through the Kentucky Business Invest-ment program. The performance-based incentive allows thecompany to keep a portion of its investment over a 10-yearperiod through corporate income tax credits and wageassessments by meeting job and investment targets.

HARRODSBURG: WAUSAU TO ADD 76 JOBSIN $220M EXPANSION OF PAPER PLANT

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FAST LANE

TNG Pharmaceuticals, anew business conceptdeveloped by University

of Louisville Forcht Centerfor Entrepreneurship MBAstudents, earned the overallfirst prize and $641,600 in cashand investment awards at the2011 Rice Business Plan Com-petition, an event that is con-sidered one of the top suchcompetitions in the world.

“This ranks up there withnational championships in ath-letic competitions,” said College of Business Dean CharlieMoyer. “It’s an extraordinary accomplishment for our studentsand faculty, and something the entire university can celebrate.”

TNG presented FlyVax, a patented vaccine targeting the$1 billion in losses incurred by cattle farmers due to parasitichorn flies. Bites from the blood-sucking flies agitate cattle asthey graze and feed, reducing milk and beef production.The new vaccine is easier to administer and more effectivethan traditional remedies, with the added benefits of reduc-ing pesticide use and disease spread. The vaccine was origi-nally developed by agricultural scientists at AuburnUniversity. TNG has an agreement in principle to convertits option on the vaccine to a full license.

More than 500 teams applied for the competition, withthe best 42 selected from the world’s top graduate programs.The Louisville team beat finalists from MIT, Notre Dame,the University of Michigan and the University ofArkansas to bring home the overall top prize.

LOUISVILLE: UofL EARNS $641,400 AWARDAT RICE BUSINESS PLAN COMPETITION

FLORENCE� Toyko Boeki North America, an integrated measurement and dataprocessing solutions company, has relocated its sales and ser vice sup-port office from Detroit to Florence. Tokyo Boeki General ManagerSteven Hays said the company considered a number of different regionsfor the relocation, but decided on Northern Kentucky because of itsproximity to major auto manufacturers and an efficient transportationsystem, as well as community resources.

FORT MITCHELL� Xavier University has selected Fort Mitchell as the newest locationfor its off-site MBA program. The program is designed for working pro-fessionals and can be completed by attending classes two nights a weekfor 24 months. Classes will begin July 1, with an enrollment deadline ofJune 1. Xavier’s main campus is located in Cincinnati.

GEORGETOWN� Toyota Motor Manufacturing has ramped up its hiring, addingmore than 250 team members this spring. ”We are hiring for our vari-able work force,” Toyota spokesperson Rick Hesterberg told The George-town News-Graphic. “We have been hiring several hundred, and we arebringing more in. It is significant.” Hesterberg said the company regu-larly assesses its hiring needs based on volume numbers, market condi-tions, special projects and attrition.

HEBRON� American Eagle has increased flight serviceout of the Cincinnati/Northern Kentucky Inter-national Airport to Chicago, Dallas and NewYork. The airline has added one daily flight toChicago and New York (JFK) and added two addi-tional daily flights to Dallas.

LEXINGTON� Frogdice, a young video-game company, has been awarded an$80,000 loan from the state to help purchase new software and otherequipment. The company plans to hire seven new employees by 2014who will have an average annual salary of approximately $49,000.

� Lexington biopharmaceutical companyTransposagen has announced plans to add 21new employees to its staff by 2013. Transposagenspecializes in the development of rat models thatcan mimic human diseases, thereby facilitatingthe discovery and development of new drugs.The new jobs will pay an average annual salary of $58,750.

� Bluegrass Hospitality Group, which owns six restaurants in Lex-ington, has expanded to Louisville with the opening of a Drake’srestaurant and bar in the St. Matthews area. In addition to the Lexing-ton Drake’s, the company also operates Malone’s, Sal’s Chophouse,Harry’s Bar and Grill, Aqua Sushi and Regatta Seafood. TheLouisville Drake’s is the company’s first location outside of Lexington.

LOUISVILLE� Kindred Healthcare Inc. has acquiredthe California operations of CareSouthHHA Holdings LLC for an undisclosedamount. CareSouth, a California-based

home health company, operates four locations in Southern Californiaand the San Jose market that generated approximately $11 million inrevenue for fiscal year 2010. Prior to the acquisition, Kindred had 13long-term acute-care hospitals, two nursing and rehab centers and onesubacute unit in the Southern California and San Jose markets.

� Louisville-based Smoothstone IP Communications has enteredinto an agreement to be acquired by Nebraska-based West Corp. for$12 million. Founded in 2000, Smoothstone has established itself as aleader servicing large-scale enterprise with cloud-based communica-tions solutions for enterprise voice and data, with revenue growingmore than tenfold since 2005. West provides technology-driven voiceand data solutions to Fortune 1000 clients ranging from telecommuni-cations and banking to retail, financial and healthcare. The acquisitionis not expected to affect Smoothstone’s100-member staff.

BUSINESS BRIEFS

TNG Pharmaceuticals teammembers (left to right) LarryHorn, Cory Long, Jenny Corbin,Terry Tate and Max Brudner

ASAHI Bluegrass Forge Corp. has broken ground ona new 69,000-s.f. manufacturing facility in Richmondthat will result in the creation of 50 new jobs with an

average annual salary of around $40,000.The Japanese-owned company specializes in press forging

for the automotive industry, producing parts such as gears,bearings and joints as well as transmission parts.

The new facility will be the second Richmond facilityfor Asahi, which has been part of the Madison Countybusiness community for eight years and currently employs45 workers.

The company is investing $20.3 million in the new plant,which is expected to begin production in 12 months.

The Kentucky Economic Development FinanceAuthority has preliminarily approved Asahi BluegrassForge for tax incentives up to $1 million through the Ken-tucky Business Investment Program, a performance-basedincentive that allows the company to keep a portion of itsinvestment over a 10-year period through corporateincome tax credits and wage assessments by meeting joband investment targets.

Kentucky Economic Development Secretary Larry Hayes,who spoke at the official groundbreaking ceremony , notedthat Kentucky has developed a “special relationship” withJapan over the past 25 years, and noted that Hawaii is theonly state in the nation with more Japanese investment percapita than Kentucky.

RICHMOND: ASAHI TO OPEN SECOND KYMANUFACTURING PLANT, ADD 50 JOBS

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FAST LANE

THE University of Kentuckycelebrated the success andachievements of six of its

graduates last month as itinducted them into the GattonCollege of Business and Eco-nomics Alumni Hall of Fame.

“These six outstanding graduates… represent dedication andintegrity in the business world and inthe greater community in whichthey live,” said D. Sudharshan, deanof the college. “The University ofKentucky is privileged to count theseindividuals among its alumni.”

This year’s inductees are: • Carter Harris (Class of ’79),

founder of Knight Capital Partners.• Mary Lassiter (Class of ’82,

’83), secretary of the KentuckyGovernor’s Executive Cabinetand state budget director for Gov.Steve Beshear.

• Howard Lewis (Class of ’70),founder of Family Heritage LifeInsurance Company of America.

• Scott Smith (Class of ’90), CEO of Coalition AmericaHoldings Inc., NPPN and Lodestone Solutions LLC, com-panies that provide comprehensive healthcare solutions forhealth insurance carriers, self-employed employers andthird-party administrators.

• Sean Smith (Class of ’90), co-founded Coalition AmericaHoldings Inc., NPPN and Lodestone Solutions LLC withtwin brother, Scott, and serves as chairman of the companies.

• Darrell L. Williams (Class of ’84) has extensive experi-ence in antitrust litigation consulting and has served as a staffeconomist with the President’s Council of Economic Advi-sors and as a financial economist at the Securities andExchange Commission.

LEXINGTON: UK INDUCTS SIX GRADUATESINTO BUSINESS COLLEGE HALL OF FAME

LOUISVILLE� United Airlines haslaunched daily nonstopair service betweenLouisville and Wash-ington-Dulles Inter-national Airport. Theflights, which willdepart Louisville at2:30 p.m. and leaveWashington at 5:30p.m., will be operated by ExpressJet, using 50-seat Embraer regionaljets. The new service to Washington offers connection options to morethan a dozen international destinations.

� Community Ventures Corp. has opened the Women’s BusinessCenter of Kentucky with the goal of helping both established andprospective women business owners. The center offers entrepreneurialtraining and counseling, loan packaging, mentoring, certification assis-tance, business and procurement opportunities, and other assistance tohelp women business owners achieve success.

� Louisville-based PharMerica Corp., a national provider of institu-tional pharmacy and hospital pharmacy management ser vices, hasacquired an institutional pharmacy in Greenville, S.C. PharMerica isone of the leading pharmacy ser vices company in the country, operat-ing 97 institutional pharmacies in 43 states. The acquisition givesPharMerica its first entry into the South Carolina market. PharMericahas not released the name of the South Carolina company or financialdetails of the acquisition.

� Donan Engineering Co.has opened a new office inMinneapolis as part of thecompany’s strategy to opensix new locations during the course of 2011. With those expansions,Donan, which specializes in forensic engineering investigations, willhave 32 offices in 18 states. The Minneapolis office is the company’s firstphysical presence in Minnesota.

� Peak 10 Inc. has begun construction on an 11,500-s.f. facility that will bethe managed services company’s third Louisville location. The addition,which will be adjacent to the company’s existing facilities, is expected to becomplete later this year. It will bring the company’s total Louisville foot-print to nearly 25,000 s.f. and will be the company’s 20th data center facilityin its 10 U.S. markets. Many of Peak 10’s top technology executives, includ-ing Jeff Biggs, the company’s chief technology officer, are based inLouisville, and the Peak 10 Louisville location houses the company’s largestconcentration of corporate and technology staff outside of its headquar -ters in Charlotte, N.C. Louisville also serves as one of the host sites for thecompany’s Cloud Plus infrastructure.

� Louisville-based Yum! BrandsInc. recently opened its 400th KFCfranchise restaurant in Jakarta,Indonesia. Yum’s KFC and Pizza Hutbrands have made it one of the lead-ing restaurant companies in Indone-sia, which has become a key emergingmarket for Yum with its large, youngpopulation of more than 245 millionpeople, growing middle class andexpanding economy. Yum expects tohave more than 1,000 KFC and PizzaHut restaurants in Indonesia by 2015.

� The University of Louisville Board of Trustees has approved a plan tocombine more than 30 physician practices into one entity, effective Jan. 1,2012. The new entity, a not-for-profit organization that will operate as Uni-versity of Louisville Physicians Inc., will serve as the umbrella for 16not-for-profit subsidiaries, one for each unit at the medical school. UofLsaid that by operating under one umbrella organization, the groups will beable to take advantage of single-point contracting and purchasing, cut over-head expenses and reduce duplication in billing and collecting.

BUSINESS BRIEFS

Mary LassiterCarter Harris

Scott SmithHoward Lewis

Darrell WilliamsSean Smith

UK photos

THE U.S. Army is deactivating the Army AccessionsCommand at Fort Knox as part of a move to reducecosts. The decision will result in the elimination of 67

military positions – including two generals – along with 130civilian jobs and 290 contract positions.

Employees with the Accessions Command were amongthose brought to Fort Knox as part of the Army’s BaseRealignment and Closure (BRAC) reorganization, which hasbrought thousands of civilian and military personnel to thebase. The base currently employs more than 7,800 soldiers,10,800 civilians and 2,800 contractors.

“The Department of the Army has taken this measure inan effort to remove layers of command structure, make theArmy accessions process more efficient and achieve budgetsavings,” said Lt. Gen. Benjamin C. Freakley , commandinggeneral of the U.S. Army Accessions Command and the sen-ior commander at Fort Knox. “When this process is com-pleted, the Army will realize $50 million in savings.”

The inactivation of the Accessions Command will begin thissummer and is expected to be complete by October 2012.

FORT KNOX: U.S. ARMY TO CLIP 500 JOBSAS PART OF COST-CUTTING MEASURES

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FAST LANE

JOSEPH-Beth Booksellers, which filed for bankruptcylast year after struggling through five years of decliningsales, is now under new ownership after a bankruptcy

auction held in April. In a surprising turn of events, the winning bid of $3.9

million went to Booksellers Enterprises LLC, a companyaffiliated with Langley Properties Co. and The Mall atLexington Green in Lexington, where Joseph-Beth is theprimary tenant. The mall management company had origi-nally supported Joseph-Beth founder Neil Van Uum in hisbid to regain control of the company but several days priorto the auction announced that it would be bidding againstVan Uum.

With its bid, Booksellers Enterprises now owns theJoseph-Beth locations in Lexington, Cincinnati and Cleve-land and the company’s corporate headquarters in Cincin-nati. With the exception of Van Uum, the managementteam that previously led Joseph-Beth will remain in place.Mark Wilson, previously chief operating officer, is now serv-ing as president and CEO.

Gordon Brothers, a retail liquidation company, pur-chased Joseph-Beth’s Fredericksburg, Va., store and the com-pany’s Davis-Kidd Booksellers location in Memphis, Tenn.Van Uum has since negotiated a deal to continue operatingthe Memphis store.

Van Uum and his former wife founded Joseph-Beth inLexington in 1986 and eventually expanded the company toinclude nine Joseph-Beth and Davis-Kidd stores.

LEXINGTON: LANDLORD ACQUIRES TENANTJOSEPH-BETH BOOKSELLERS FOR $3.9M

TEMPUR-Pedic is investing approximately $18 millionto expand its global headquarters in Lexington as partof a growth plan that will create 65 new jobs over the

next five years.Since its inception in

1993, Tempur-Pedic hasgrown into a billion-dol-lar company that special-izes in the research,development, manufacturing and distribution of mattresses, pil-lows and other sleep products that utilize its proprietary pressure-absorbing material originally developed by NASA.

The company is now planning to build a new 100,000-s.f.facility in the University of Kentucky ColdstreamResearch Campus. Construction is expected to begin thisfall and be complete by the end of 2012. The new jobs willbring the company’s total employment in Lexington to morethan 300. An economic impact study performed by the Cab-inet for Economic Development indicates that the num-ber of direct, indirect and induced jobs that will result fromTempur-Pedic’s existing and new employment is 772 jobs.Those jobs will provide an annual $72.8 million boost to Ken-tucky’s Gross Domestic Product.

“The Tempur-Pedic announcement demonstrates the powerof our Lexington partnership to put together a compelling pack-age that includes a premier location for an international head-quarters at Coldstream,” said University of Kentucky PresidentLee T. Todd Jr. “It fulfills one of our goals of creating innovationat Coldstream where research and excellent companies likeTempur-Pedic International can come together to work on proj-ects that add value to people’s lives.”

LEXINGTON: TEMPUR-PEDIC RELOCATESGLOBAL HQ TO UK COLDSTREAM PARK

LOUISVILLE� Luckett & Farley, one of Louisville’s oldest and largest architec-tural/engineering firms, has sold its majority interest in its subsidiar y,L&F Design Build LLC , to John F. Stewart Jr., managing member ofL&F Design Build. Luckett & Farley President and CEO Ed Jerdoneksaid that over the past four to five years, Luckett & Farley has been mov-ing in a different direction and with a different client focus than L&F ,resulting in the determination that it would be best for each company tocarve out its own independent path. In the coming months, L&F willbe changing its company name to something unrelated to Luckett &Farley. Financial terms of the transaction were not disclosed.

� Louisville-based Humana Inc. isadding 177 positions in Florida tosupport the growth of its HumanaCares division, which handles the company’s national chronic caremanagement programs. The Humana Cares division opened in early2009 with approximately 200 associates and has quickly grown tonearly 1,000 employees. According to figures released by Humana,individuals with chronic health conditions who are participating inHumana Cares programs have seen a 36 percent decline in hospitaladmissions and a 22 percent drop in emergency room visits.

� Specialty grocery chain Trader Joe’s has confirmed plans to open itsfirst Kentucky location in the St. Matthew’s area of Louisville. The Califor-nia-based company will occupy approximately 15,000 s.f. of space in theShelbyville Road Plaza. An official opening date has not been announced.

MOREHEAD� Simba USA is investing $2.25 million to expand its operations inMorehead, where it produces specialty towels and accessories. Theexpansion is part of the company’s decision to close a similar facility inMexico and move those operations to its 25,000-s.f. Morehead plant.Simba expects to add 20 jobs to the existing 18-member staff as a resultof the expansion. The Kentucky Economic Development FinanceAuthority has preliminarily approved Simba USA for tax incentives upto $800,000 as well as a low-interest loan to help finance the project.The Morehead-Rowan County Economic Development Council has alsoreceived a $380,000 community development block grant to help Simbapurchase new equipment for the Morehead plant.

PIKEVILLE� The Pikeville College Board ofTrustees has unanimously approvedchanging the name of the school to theUniversity of Pikeville. The namechange will go into effect July 1.

SHELBYVILLE� Superb IPC, a company that specializesin industrial powder coatings for a widerange of industries, has announced plans to

expand its headquarter operations in Shelbyville. The company is purchasingadvanced technology equipment that will reduce powder usage and energyconsumption and will also add 20 new jobs to support the expansion. Theproject represents an investment of approximately $400,000.

� Shelby Industries, which specializes in metal stamping, welding, assem-bly and plating operations, has added nearly $300,000 in new equipment atits plant in Shelbyville in order to expand its customer base. The expansionwill add 10 full-time jobs to the company’s 48-member staff.

STATE� Kentucky’s Office of Agricultural Policy will be holding a series offorums across the state designed to gain input regarding how to best utilizethe Kentucky Agricultural Development Fund to expand markets forfarmers, build on core agricultural assets and foster agribusiness entrepre-neurship and development. The series will kick off at 7 p.m. on Thursday,May 19 at the Kentucky History Center in Frankfort. Subsequent forums willbe held in Maysville, Somerset, West Liberty, Bowling Green, Elizabethtown,Gilbertsville and Owensboro. The forums are designed for audience partic-ipation and all concepts and comments will be compiled into a report. Allmeetings will be held from 7-8:30 p.m. local time. For more information,contact Angela Blank at (502) 564-4627 or [email protected].

BUSINESS BRIEFS

Pikeville College photo


SOFTWARE Information Systems (SIS) and Genentechhave been ranked the best places to work in Kentucky bythe Kentucky Society for Human Resource Management

(KYSHRM) state council and the Kentucky Chamber of Commerce.

During the SeventhAnnual Best Places toWork in Kentucky awardsceremony, SIS, Genen-tech and 63 other Ken-tucky companies wererecognized for their com-mitment to encouragingcompanies in the com-monwealth to move theirworkplace environmentstoward excellence.

Winners were selectedfrom two categories –small/medium compa-nies with 25 to 249 U.S.employees and large com-panies with 250 or moreU.S. employees. The selec-tion process was based on

an assessment of the company’s employee policies and proce-dures and the results of an internal employee survey.

Lexington-based SIS, the No. 1 small/medium companyspecializes in server and storage optimization, virtualizationand network and data security. It is the third year SIS hasbeen named to the Best Places to Work in Kentucky list.

Genentech, the winner of the large company categor y, is aLouisville biotechnology company that uses human geneticinformation to discover, develop, manufacture and commer-cialize medicines to treat patients with serious or life-threaten-ing medical conditions. This is the first year that Genentech hasbeen named to the Best Place to Work in Kentucky list.

The complete ranking of companies named to the BestPlaces to Work list can be found at bestplacestoworkky.com.

STATE: SIS AND GENENTECH TOP LISTS OFBEST PLACES TO WORK IN KENTUCKY

STATE� The Council on Postsecondary Edu-cation has moved to set maximum tuitionand mandatory fee ceilings for in-stateundergraduate students at the state’s pub-lic colleges and universities. The maxi-mum tuition and mandatory fee ceilingincrease was set at 4 percent for the Ken-tucky Community and Technical Col-lege System, 5 percent for the six comprehensive universities (Eastern,Kentucky State, Morehead, Murray, Northern and Western), and 6 per-cent for the two research universities, the University of Kentucky and theUniversity of Louisville. CPE President Bob King said the move balancesthe need to support the universities’ student retention and graduationgoals with a high-quality educational program.

� Kentucky’s state government has sold two aircraft on eBay.com aspart of a government initiative to reduce costs. The 1975 Piper Navajoand 1967 Skyhawk planes sold for a total of $231,430. All proceeds fromthe sale will be returned to the state’s general fund.

� The Kentucky Small Business Development Center, a statewidenetwork of 16 offices that helps existing and start-up businesses, has receiveda $660,000 grant as part of the Small Business Jobs Act of 2010 to support jobcreation and retention. The one-time grant will allow the SBDC to increasecounseling services that include exporting, healthcare and high-growth busi-nesses; add three full-time counselors to support central Kentucky, which isthe area showing the greatest demand; develop a suite of services for inde-pendent professionals; and host regional business events.

� Through June 1, The 2011 Excellence in EntrepreneurshipAwards program will be accepting nominations from across southernand eastern Kentucky for the region’ s top business leaders and entre-preneurs. Nominees are judged on the economic success of enterprise,contributions to the community, job creation, and operational achieve-ment as measured by innovative business practices, superior safetyachievement and superior technology. For more information, visit cen-tertech.com and go to the Excellence in Entrepreneurship link.

� Kentucky tied with California and Texas as one of the top eightstates with the largest increase in entrepreneurial activity over the pastdecade, according to the recently released Kaufman Index of Entre-preneurial Activity, a leading indicator of new business creation in theUnited States. Kentucky experienced an 11 percent increase from 1996to 2010. For 2009-2010, Kentucky improved its level of entrepreneurialactivity by 16 percent.

BUSINESS BRIEFS

THE BEST PLACES TO WORK IN KENTUCKY 2011 Top Five Small/Medium Companies(25-259 U.S. employees)1. Software Information Systems LLC,

Multiple cities2. River Road Asset Management LLC,

Louisville3. Creative Lodging Solutions, Lexington4. MassMutual Financial Group:

The Kentucky/West Virginia Agency,Multiple cities

5. Kentucky Employers’ Mutual Insurance,multiple cities

Top Five Large Companies(250+ U.S. employees)1. Genentech, Louisville2. Stoll Keenon Ogden PLLC, Lexington3. Edward Jones, Winchester4. Independence Bank, Owensboro5. Trilogy Health Services LLC, Louisville

UK photo


INDIANA� T-slotted aluminum components and framing provider 80/20 Inc. isinvesting $9.4 million to add more than 90,000 s.f. of manufacturingspace at its plant in Columbia City , Ind. The expansion will add up to110 jobs to the existing 250-member staff.

� Allison Transmissions is expanding its Speedway, Ind., operations tohandle production of a new commercial-duty transmission for tractor-trail-ers. Founded in 1915, Allison currently employs nearly 2,500 in Speedwayand anticipates adding another 205 positions by the end of 2013.

� Canadian specialty food manufacturer Skjodt-Barrett Foods isinvesting more than $19 million to purchase and renovate the formerM&I Windows plant in Lebanon, Ind., for its U.S. headquarters oper-ations. The company, which makes custom fruit fillings, icings, glazes,sauces, marinades, baby food and fruit snacks for retail food produc-ers, plans to hire up to 300 people for the Lebanon location by 2013.

� Old NationalBancorp, a finan-cial services hold-ing company headquartered in Evansville, Ind., has acquired IntegraWealth Management and Trust for an undisclosed amount. The acqui-sition, which is expected to close at the end of June, brings the totalassets under management by the Old National W ealth Managementdivision to $4.4 billion.

TENNESSEE� Alliance HealthCare Services Inc., one of the nation’s largestproviders of outpatient diagnostic imaging and radiation therapy serv-ices, has acquired Nashville-based US Radiosurgery LLC for $54 mil-lion. US Radiosurgery operates eight stereotactic radiosurgery centersin partnership with local hospitals and radiation oncologists in Col-orado, Texas, Illinois, Ohio, Oklahoma, Pennsylvania, Nevada and Cal-ifornia, and currently generates approximately $29 million inconsolidated annual revenue. California-based Alliance provides ser v-ices to more than 1,000 hospitals in 46 states.

� 3M has purchased DuPont’s Advanced Com-posite Technology facility in Nashville with plansto locate a new manufacturing facility there. Min-nesota-based 3M will utilize the facility to engi-neer and produce a comprehensive line of

products for the healthcare and home care markets. The companyexpects to hire 40 people over the course of three years.

� Sitel, a business process outsourcing provider, has added more than150 positions at its facility in Oak Ridge, Tenn., to provide inbound callcenter services for a consumer loan banking and casualty insurancecompany. The company’s Oak Ridge center opened in 1999 and cur -rently houses more than 500 employees.

WEST VIRGINIA� US Wind Force LLC and Edison Mission Energy have started con-struction on a 23-turbine wind farm near Keyser, W.Va. When com-pleted later this year, the Pinnacle Wind Farm at NewPage willgenerate approximately 55 megawatts of electricity, enough power formore than 14,000 households. The project represents a total investmentof approximately $130 million and will become one of Mineral County’slargest taxpayers with property tax payments of approximately $10.7million over the next 25 years.

� Nearly a year after an historic flood ravaged Nashville and sub-merged Opry Mills, a retail center that is one of the area’s top touristattractions, the center’s owners have announced that it will reopenin spring 2012. Simon Property Group said many of Opry Mills’ pre-vious anchor/tenants have committed to return and a new slate oftenants has been lined up as well, including Coach, Calvin Klein,Tommy Bahama, Talbot’s, Chico’s, Under Armour and The LEGOStore. Opry Mills sustained more than $200 million worth of damagein the flood.

BUSINESS BRIEFS


COGENT Healthcare has merged with HospitalistsManagement Group (HMG) to form the largest pri-vate hospitalist company in the United States.

The merger brings together two of the strongest compa-nies in the rapidly growing hospitalist industr y, with nearly1,000 affiliated hospitalists and extenders practicing in morethan 100 healthcare facilities nationwide.

HMG, based in Canton, Ohio, has focused on partneringwith small- to medium-sized hospitals in suburban and rural mar-kets, while Cogent, based in Nashville, Tenn., has concentratedon partnering with medium- to large-sized hospitals.

“This is a natural and complementar y partnership thatwill enable our two similarly-sized companies to benefit fromeach other’s expertise and success,” said Cogent Presidentand CEO Gene Fleming, who will become the full-time exec-utive chairman of the new company.

The new company will operate as Cogent-HMG. It will beheadquartered in Nashville, but will maintain offices in Canton.

Financial details of the merger have not been disclosed.

TENNESSEE/OHIO: DOC MERGER CREATES LARGEST U.S. HOSPITALIST COMPANY

PROCTER & Gamble has signed a definitiveagreement to sell its Pringles business to SanFrancisco-based Diamond Foods in a trans-

action valued at $2.35 billion. Pringles will join Diamond brands that include

Pop Secret popcorn, Kettle chips, and Diamondof California and Emerald nuts. The combinationwill more than triple the size of Diamond’s snackbusiness, creating a company with total revenuesof some $2.4 billion.

For P&G, the Pringles sale represents the firsttime in some 150 years that the Cincinnati-basedcompany has not owned a food-based business. Once the par -ent company of brands such as Folgers coffee, Duncan Hinescake mixes, JIF peanut butter and Sunny Delight juice drinks,P&G has gradually been selling off those businesses in order tofocus on its household and health/beauty lines.

Approximately 1,600 employees are involved in the Pringlesbusiness, with about 900 in the United States and 150 in theCincinnati area. Diamond has indicated that some duplicativeadministrative positions will be eliminated after the sale closes,though no specific numbers have been released.

OHIO: P&G CASHES IN ITS CHIPS WITHSALE OF PRINGLES TO DIAMOND FOODS

CHASE plans to add between 500 and 1,000 mortgage-ser-vicing jobs to its Central Ohio workforce when it movesinto new office space in Gahanna, Ohio, later this year.

Chase already is the region’s largest private employer,with 17,000 workers in the Columbus area.

The additional workers will help homeowners around thecountry who are struggling with their monthly mortgage pay-ments. The new employees will augment Chase’s staff at a 495,000-s.f. facility in Easton that Chase uses for mortgage servicing.

Chase expects to invest several million dollars to recon-figure and furnish the 123,000 s.f. of leased office space inGahanna.

OHIO: CHASE TO ADD UP TO 1,000 NEWMORTGAGE SERVICE JOBS IN GAHANNA

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

P&G photo



A sampling of economic development dataKENTUCKY INTELLIGENCER®



ARTS� Lisa Betson Resnik has been named chiefoperating officer of the Speed Museum of Artin Louisville. Gregory S. Gardiner has beennamed director of operations and expansionfor the museum.

� The Lyric Theatre and Cul-tural Arts Center Board ofDirectors in Lexington hasappointed Yetta Young as thefirst executive director for therecently opened multi-pur-pose center.

� Andee Rudloff has beennamed director of educationand outreach at the Southern Kentucky Per -forming Arts Center in Bowling Green.

BANKING/FINANCE� PNC Financial Services Group has announcedthe following appointments in its Lexingtonoffice: Stephen Palmer Brown, senior vice pres-ident, senior relationship manager for PNCWealth Management; Scott McCauley, seniorvice president; Valerie Marshall, senior trustadvisor for wealth management.

� Kevin Bruce has beennamed chief information offi-cer for Forcht Bank.

� Mount Sterling-based Tradi-tional Bank has announcedthe following promotions:Spears Stilz, senior vice pres-ident, Will Clark, vice presi-dent, and Anita McClain,assistant vice president.

� Wesley Adams has joinedAmerican Founders Bank asvice president, commerciallender in the bank’s NorthHurstbourne office inLouisville.

EDUCATION� R. Owen Williams has been inaugurated asTransylvania University’s 25th president. Kirk Pur-dom has been named vice president for advance-ment at Transylvania.

� Sally Ray has been named director of West-ern Kentucky University’s Glasgow Campusand associate dean of the University College.

� Neville Pinto has been named dean of theUniversity of Louisville’s J.B. Speed School ofEngineering. Pinto previously served as viceprovost and gradate school dean at the Uni-versity of Cincinnati.

� The University of Louisville board oftrustees has named Becky Simpson as seniorassociate vice president for communicationsand marketing and special assistant to theoffice of the president.

INSURANCE� Mary Beard has been pro-moted to chief operating offi-cer for Kentucky Employers’Mutual Insurance (KEMI).

LEGAL� Robert Maddox III hasjoined the Louisville office ofDinsmore & Shohl as a part-ner in the corporate depart-ment and a member of thesecurities practice group.

� Joshua M. Salsburey hasbecome a member in the Lex-ington firm of Sturgill, Turner,Barker & Moloney PLLC.

MANUFACTURING� Erlanger-based ToyotaMotor Engineering & Manu-facturing North America Inc.(TEMA) has named ShigekiTerashi as president andchief operating officer .Terashi succeeds TetsuoAgata, who is returning toJapan for a new assignment.Kazuhiro Miyauchi has beennamed executive vice president of purchasing,production control and logistics control.

MARKETING� Julie Garrison has joined the Louisvillemarketing and Web design firm of VIA Studioas vice president of marketing and sales.

PHARMACEUTICAL� Alexander “Aly” Kayne has been appointedsenior vice president, general counsel and secre-tary of Omnicare Inc., a Covington-basedprovider of pharmaceutical care for the elderly.Randy Carpenter has been named chief infor-mation officer for the company.

TECHNOLOGY� Marshall Butler has beenpromoted to vice president ofsales for Lexington-basedDMD Data Systems.

� Stephen M. Lochmuellerhas been named chief executiveofficer of Louisville-basedLightyear Network SolutionsInc. Lochmueller succeeds J.Sherman Henderson III, who will assume thetitles of chair emeritus and founder and willremain a member of the company’s board ofdirectors and in an advisory role. Randy Ammonhas been named to the dual role of president andchief operating officer.

TELECOMMUNICATIONS� Chris Percy has been appointed vice presidentand general manager of AT&T’s mobility and con-sumer markets in Kentucky and Tennessee.

TOURISM� Gil Logan has been named executive cheffor R.J. Corman Railroad Group’s My Old Ken-tucky Dinner Train.

TRANSPORTATION� Matt Capozzoli has been named vice presi-dent of flight operations for UPS Airlines inLouisville. Capozzoli succeeds Rick Barr, whois retiring.

OTHER� Vaughn Feather has been appointed as thenew president of Union Springs Wellness, anErlanger-based company that specializes inwellness products for both consumers andhealthcare professionals.

� Churchill Downs Inc. has promoted WilliamC. Carstanjen, who currently serves as thecompany’s chief operating officer, to presidentof the company. Carstanjen will continue toserve as chief operating officer in addition tohis new role as president.

� Bill Clark has been named president of Hil-lerich & Bradsby Co.’s Louisville Slugger divi-sion. Clark succeeds Marty Archer, who hasserved in the role for 24 years and will becomepresident emeritus of Louisville Slugger. For-mer Nike executive Jeff Lienhart has joinedthe Louisville Slugger division as vice presidentof global business development.

� Animal health and nutrition company Alltechhas restructured its global headquarters market-ing team based in Nicholasville. New managerialappointments include: Elizabeth Bagby – strate-gic partnership manager; Susanna Elliott – cor-porate public relations manager-North America;Billy Frey – advertising and digital marketingmanager; Jorge Gotuzzo – global ruminantmarketing manager; Alan Henthorne – corpo-rate media manager; Suniti Mujumdar – globalpoultry marketing manager; Lauren AshleyPope – corporate events manager; Laci Poulter– consumer communications manager; andPaulo Rezende – project manager-education.

Yetta Young

Mary Beard

Robert Maddox III

JoshuaSalsburey

MarshallButler

Stephen Palmer Brown

Scott McCauley

Valerie Marshall

Kevin Bruce

Wesley Adams

Kirk PurdomOwen Williams Sally Ray

New leadership for Kentucky businessesCORPORATE MOVES

DEPARTURES� Dr. Larry D. Shinn,president of Berea Col-lege, has announcedplans to retire from theposition effective June30, 2012. The college iscurrently conducting anationwide search forShinn’s successor.

� Papa John’s International President andCo-CEO J. Jude Thompson has resignedfrom the Louisville-based pizza chain tofocus his interests on Arison InsuranceServices, a Louisville-based insuranceagency. Thompson is a principal and co-founder of Assurance Investment PartnersInc., which owns Arison. Papa John’sfounder John Schnatter will assume soleresponsibility for the CEO role and willcontinue as chairman of the board.

Dr. Larry Shinn


AMERICAN ASSOCIATION OF STATECOLLEGES AND UNIVERSITIES� Marc C. Whitt has been re-elected chair of the AmericanAssociation of State Collegesand Universities’ Advisor yCouncil for Communicationsand Public Affairs. Whitt isassociate vice president forpublic relations and chief com-munications officer for East-ern Kentucky University.

BLUEGRASS AREA DEVELOPMENT DISTRICT� The Bluegrass Area Development Districthas announced new officers for the organiza-tion: Chair: Bourbon County Judge-ExecutiveDonnie Foley, Vice Chair: LawrenceburgMayor Edwinna Baker, Secretary: GarrardCounty Judge-Executive John Wilson, andTreasurer: Nicholasville Mayor Russ Meyer.The following individuals have been elected ascitizen directors on the board: WendellBruce, Anderson County; Dee Gee Ison,Bourbon County; Ed Mastrean, Clark County;Eugene Bush, Estill County; Linda Magee,Franklin County; Peter Beaty, JessamineCounty; Bill Demrow, Lincoln County; San-dra Powell, Madison County; Brent Newby,Mercer County; Gerald Watkins, NicholasCounty; James Caudill, Powell County; JosieHollon, Powell County; Donna Chesser, ScottCounty; and Michael Hennigan, Scott County.George Campbell, Luther Deaton and DanBrewer serve as at-large members.

FEDERAL RESERVE BANK COUNCIL� William J. Rissel, president and chief exec-utive officer of Fort Knox Federal CreditUnion, has been appointed to a two-year termon the newly formed Community Depositor yInstitutions Advisory Council for the FederalReserve Bank of St. Louis.

KENTUCKY COMMISSIONON MILITARY AFFAIRS� Leslie Beavers has been named to the Ken-tucky Commission on Military Affairs. Beavers,of Frankfort, is retired from the U.S. Army andis a former commissioner of the KentuckyDepartment for Veterans Affairs.

KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY� Dorsey Hall, president of South CentralBancshares of Kentucky, has been appointedto the board of the Kentucky Economic Devel-opment Finance Authority.

KENTUCKY EQUINE EDUCATION PROJECT� Corey Johnson, president of the KentuckyDowns racetrack in Franklin, Ky., has beenelected president of the Kentucky Equine Edu-cation Project (KEEP), an organizationformed to promote and protect Kentucky’shorse industry. KEEP board members include:Craig Bandoroff, David Blee, Susan Bun-ning, Bill Casner, Doug Cauthen, RobertClay, Dr. Richard Connelly, Joe Costa, BobElliston, Kevin Flanery, Bill Farish, ThomasGaines, Ken Jackson, Dan Kenny, Gary B.Knapp, Wayne Lyster, Jim Mahan, JackMurrell, Nick Nicholson, Frank Penn, Andre

Regard, Don Robinson, Earl Rogers, Ben-nie Sargent, Fred Sarver, John Sikura, JackSmith, Robert Stewart, Ben Walden Jr.,Richard Wilcke and William Hoskins.

STATE BOARD OF EXAMINERS AND REGISTRATION OFLANDSCAPE ARCHITECTS� Sherie E. Long, of Louisville, and Mary L.Witt, of Lexington, have been appointed byGov. Steve Beshear to serve on the State Boardof Examiners and Registration of LandscapeArchitects.

TRADITIONAL BANK� Traditional Bank CEO Bill Bramblet hasbeen elected chairman of the board of the Mt.Sterling-based bank. Traditional President BillAlverson has also been appointed to theboard of directors.

KENTUCKY HERITAGE COUNCIL � Gov. Steve Beshear has appointed JulieWagner to the Kentucky Heritage Council.Wagner is executive director of Heart ofDanville.

New leadership for Kentucky organizationsON THE BOARDS

Marc Whitt



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

Ed Lane: You have served in top man-agement positions as chancellor of theState University of New York and presi-dent/CEO of the Arizona CommunityFoundation. After two years as the pres-ident of the Kentucky Council on Post-secondary Education (CPE), what isyour assessment of the strengths andweaknesses of Kentucky’s higher educa-tion system?Robert King: Higher education hasmade very substantial progress in termsof getting more Kentuckians to go tocollege and to earn a degree. Kentucky’sprogress is measured against what ini-tially was a pretty low base. The chal-lenge is not only to continue makingimprovements but to also accelerate thepace. CPE has just completed a newstrategic agenda that focuses on stu-dents’ success.

I’ll be meeting over the next severalweeks at college campuses to set targetsfor retention and graduation rates,among other things.

EL: How do experts in education viewKentucky’s postsecondary educationinitiatives?RK: Senate Bill l (2009) is probablyamong the most thoughtful and impor-

tant pieces of new legislation passed any-where in the nation. The bill calls forbringing about a true alignment of whatyoungsters are learning in K-12 andwhat they need to know entering collegein order to immediately start takingcredit-generating classes.

This alignment between K-12 andhigher education does not exist in anyother state. Commissioner of EducationTerry Holliday and I are working liter -ally hand-in-hand to achieve alignmentin some very tight timeframes. As I havean opportunity to speak with colleaguesfrom other states, they are frankly quitejealous and most interested in terms ofwhat we are doing in Kentucky and howwe will implement the plan.

EL: Many of the students graduating fromhigh schools are not adequately qualifiedto take credit courses in college?RK: Yes. In too many cases high schoolstudents are earning A’s and B’s; they’reexcited about learning and education,and their parents think everything isfine. Then they get to one of our cam-puses and discover that they are beingcompelled to take remedial classes.

The problem is not that our kids sud-denly became ignorant over the sum-

mer. What’s happened is that our highschools have not been teaching themthe right material. The course contentwas not sufficiently rigorous, and insome instances it was the wrong content.CPE is highly confident that this prob-lem will be fixed. It will be difficultgoing through the transition becauseKentucky will have to train or re-trainthousands of teachers. Curriculums arebeing revised. The standards that definewhat youngsters need to know at theend of first, second, 10th, 12th gradesare all being redesigned right now.

EL: How would you define CPE’s mission?RK: CPE’s mission simply stated is to getmore Kentuckians more highly edu-cated. For Kentucky as a state to be asuccessful economic enterprise in the21st century, it is going to need a work-force that is second to none – well edu-cated and as innovative, as productive asany on the planet. The competition thatKentucky is going to have to confront isnot Tennessee or Ohio. It’s across theocean in Asia, Western and EasternEurope, and South America. The solu-tion in CPE’s view is all tied up withhigher education.

EL: What are CPE’s primary areas offocus?RK: College readiness is really all aboutK-12. The question is: What can CPEand higher education do to help K-12students be more successful? People sayto me, “Well, you don’t run the schoolboard; you don’t operate the schoolbuildings.” We don’t, that’s true.

But here’s what higher educationcan do. It can decide who comes intoour teacher education programs, whatto teach them, what college studentshave to demonstrate in order to earn aneducation degree. To a very real extent,higher education is the gatekeeper ofthe most important parts of K-12 – theteachers and principals. CPE is develop-ing a strategic agenda to improve thequality and effectiveness in Kentucky’steacher-ed programs.

Higher education is also going to getmore substantially involved in providingprofessional development. That’s theongoing training for the 44,000 teachersin the state. The plan will create oppor-tunities for teachers to get refreshed intheir disciplines.

The governor’s task force recentlymade some recommendations, one ofwhich was expanding opportunities foryoungsters (while in high school) toearn college credit. There’s a variety ofdifferent models: dual credit, early col-lege, middle college, and board exams.

‘A QUALITY EDUCATION IS THE BESTINVESTMENT PARENTS CAN MAKE’CPE’s Robert King discusses interconnected initiatives to helpmore Kentuckians to earn college certificates and degrees

BY ED LANE

Robert KingRobert L. King became the third presidentof the Kentucky Council on Postsecondar yEducation in January 2009. Prior to comingto Kentucky, King served as president andCEO of the Arizona Community Founda-tion, a statewide charitable foundation witha strong focus on education, economicdevelopment and scientific research, andwas chancellor of the State University ofNew York for more than five years. King hasserved on numerous boards and organiza-tions, including the White House Commis-sion on Presidential Scholars; the EducationCommittee of the U.S. National Commissionfor the United Nations Educational, Scien-tific, and Cultural Organizations(UNESCO); the National Soccer Hall ofFame; A.T. Still University; and Prescott Col-lege. He has also been an advisor to the Mid-dle State Commission on Higher Educationregarding reauthorization of the HigherEducation Act in Congress. King received abachelor of arts degree in 1968 from TrinityCollege and a Juris Doctor in 1971 from theVanderbilt University School of Law.



CPE is actively going to be involved insupporting these different modelsacross the state.

EL: What programs are available toidentify high school students who mayneed assistance?RK: CPE is discovering if high schoolyoungsters with learning deficits can beidentified through testing and workingwith classroom teachers. Our goal is toremediate any deficiencies while thekids are still in high school – when theyget to our college campuses, these stu-dents will be ready to start taking credit-generating courses.

EL: What initiatives has CPE developedto aid students enrolled in college?RK: CPE has created a menu of 40 or50 different approaches to assure stu-dents coming to our campuses that theresources they will need to be success-ful are in place. If students do theirpart, we’ll do everything we can to getthem to the finish line. This could beintrusive advising; active and accessiblementoring and tutoring; advising;financial assistance; and life assistancein some cases.

EL: How will CPE deal with achieve-ment gaps among students?RK: CPE is committed to do all that wecan to reduce, if not eliminate, achieve-ment gaps between different groups ofstudents. It is no mystery that youngsterswho are African-American, Hispanic,low-income (regardless of race or eth-nicity) are not doing as well in terms of

persisting to graduation as other stu-dents on our campuses are.

EL: How does research at universitieshelp our state?RK: Critical to any university, particularlya large system like Kentucky’s, research isa part of our work that often gets ignoredbecause media and the public focus on


undergraduate education and sportsteams. The real power of our institutionsis supporting research and then takingresearch that proves to be successful andcommercializing it. This creates new com-panies and jobs as well as spurs thegrowth of Kentucky’s economy.

EL: How is CPE working to keep collegetuition costs from escalating?RK: Because higher education is the ben-eficiary of public funds, higher educationowes our owners – the taxpayers – and ourgovernment leaders the assurance that wewill operate as efficiently and cost-effec-tively as possible. Our strategic planfocuses on understanding how to managemore efficiently and take advantage ofnew technology. CPE wants to hold downcollege costs and tuition for the benefit oftaxpayers and our students.

EL: CPE is offering free GED testing.What are the benefits of this programfor individuals who did not receive ahigh school diploma, and for the state?RK: The General Educational Develop-ment test gives somebody who droppedout of high school an opportunity tocomplete their high school educationand position themselves to be able togain admission to a postsecondary insti-tution. I was at Ashland Community andTechnical College this week. One of ouradult-ed programs is delivered in con-junction with the college, and its direc-tor shared with me that 79 percent oftheir GED graduates advance to post-secondary training. Getting a GED isvery important. A GED increases jobopportunities, and I’m talking aboutdecent jobs that pay a living wage. Thosejobs, increasingly, require at least a highschool degree and most require somepostsecondary education, not necessar-ily a bachelor’s or master’s degree but arecent associate’s degree.

EL: How effective is Kentucky’s GEDprogram?RK: Reecie Stagnolia, who is the directorof the GED program and ser ves on theCPE staff, is invited all over the country totalk about how and what we are doing.Kentucky’s GED program is viewed ver yfavorably. The current challenge is to getmore Kentuckians enrolled; 800,000adult Kentuckians don’t have a highschool diploma. Of that 800,000, about500,000 are working-age adults. Ken-tucky’s GED program graduates about10,000 persons a year.

The adults who successfully completethe GED are very well equipped becauseof the quality and content of the mate-rial they are learning. They are able togo on to achieve postsecondar y educa-tion. If they choose not to continue, atleast they now have the equivalent of ahigh school diploma.

CPE’s challenge is that at the currentrate, if there wasn’t ever another highschool dropout in Kentucky, it would take50 years to get a cohort of 500,000 peopleto get at least a high school diploma. Partof CPE’s challenge is to persuade legisla-tors to provide additional funding. If CPEcan market the program more broadly, itcould encourage more people to comeback and get a GED.

EL: Do you have an estimate of thenumber of persons earning degrees andcredentials from Kentucky’s for-profiteducational institutions?RK: CPE licenses for-profit universitiesthat offer a bachelor’s degree or higher.Universities that don’t offer a bache-lor’s, graduate, doctoral or associate’sdegrees, certificates or credentials areoutside of CPE licensing, and we don’ thave enrollment data for them. Forthose that offer bachelor’s and graduatedegrees, like Sullivan University, CPElicenses those institutions; we monitor

their per formance andprogress.

Sullivan University isone of the few for-profituniversities that’s beenaccredited by SACS(Southern Association ofColleges and Schools).Sullivan went after accred-itation very early, and ithas served the universityand its students well. Sulli-van University gets trottedout as the exemplar of thefor-profit universities andcolleges. Most of the otherfor-profit universities havenot taken the accredita-tion steps Sullivan hastaken to assure the qualityof its instruction.

EL: The number of degrees and creden-tials awarded in Kentucky at public andindependent colleges and universities(excludes for-profit universities) hasincreased 84 percent. What factors aremotivating more people to obtainadvanced educational training?RK: Gov. Paul Patton’s legislation back in1997 was targeted at the structure of theuniversities, colleges and community col-leges. That legislation resonated broadlywith the public as a way of saying to them,higher education is really important.Beyond that, increasingly it’s the econ-omy; employers are now saying to theiremployees that they need higher levels ofwork skills. I wish people would figure outa little faster that postsecondary educationis a good investment in their future. Ithink that’s also driving it.

The Kentucky General Assembly, afterpassage of HB1 (1997), made the decisionto apply lottery revenues to boost publiclysupported college financial aid. Over thelast 12 years, financial aid has increasedfrom about $30 million to $180 millionannually. In addition, the universities haveincreasingly been devoting more andmore of their resources to financial aid,which is making it easier for students to beable to attend college.

EL: How significant is KET in the state’seducational efforts?RK: KET plays a huge role in adult edu-cation and our GED program. KET, inmy view, is a very powerful resource thatobviously serves more broadly the K-12population. I’ve said to our universitypresidents, K-12 success helps highereducation be more successful.

EL: CPE serves as the primar y adviserto the governor and the General Assem-bly on matters pertaining to postsec-ondary education. How is your workingrelationship with Gov. Steve Beshearand legislators?RK: My working relationship with thegovernor is terrific, and I have goodaccess to the leadership in both housesof the legislature. I tend to spend moretime working with the chairs of the edu-cation committees and the higher edu-cation sub-committees than I do directlywith Speaker of the House Greg Stumboand Senate President David Williams.The General Assembly and certainlyGov. Beshear understand the impor-tance of education, and they are sus-taining Kentucky’s higher educationsystem even in a weak economy.

EL: Stu Silberman, the head of theFayette County School System is r etir-ing. The Prichard Committee recentlyannounced that Silver man wouldreplace Bob Sexton, its executive direc-


LANE ONE-ON-ONE


tor for three decades who recentlypassed away. How closely does CPEwork with the committee? RK: First, with regard to Bob Sexton, hewas one of the very first people that Isought out. I actually spoke to him onthe phone before I started working here(January 2009), and we struck up anearly and strong friendship. I just soregret our relationship was so short-lived. He was a great leader for the com-mittee. He was widely respected, andeven people who disagreed with himunderstood that the disagreement wasthe product of a different philosophy asopposed to a sense that he was somehowmotivated inappropriately. He was socommitted to improving education inthis state and a great thinker, strategistand spokesperson.

I don’t know Stu Silberman nearly aswell as I knew Bob Sexton. The little bitthat I do know makes me think thePrichard Committee made a wise choice.The challenges in education are huge, andwe need talented, knowledgeable peopleto help. Stu doesn’t need to be Bob Sexton;he needs to be Stu Silberman. He bringsvaluable experience coming into the job.

CPE actually works closely on a num-ber of different issues with the PrichardCommittee. With Bob’s illness, I beganworking regularly with (Prichard associ-ate director, now interim director)Cindy Heine. We are now working on acouple of issues.

EL: Kentucky Community and TechnicalCollege System under the leadership ofPresident Michael McCall has grown sig-nificantly over the past 10 years. What isKCTCS’s role in the state’s postsec-ondary education arena?RK: When Gov. Patton first initiated hiseffort to persuade the legislature toadopt HB1 (1997), one of the majorpieces of the bill was a divorce and amarriage. The General Assemblydivorced the community college systemfrom the University of Kentucky; therewas a huge battle over that decision.And then there was a marriage betweenthe community colleges and the then-free-standing technical colleges. Thus,we now have KCTCS.

With the benefit of a little bit morethan a decade of experience under ourbelt, most people would agree creatingKCTCS was an incredibly smart decision.The community college and technical sys-tem is growing faster than any other seg-ment of higher education. Just in the lasttwo years KCTCS has taken on more than14,000 new students, (that’s about 12,000FTE’s) without any additional state sup-port. Given the assessments of where jobgrowth will occur in this state over the nextcouple of decades, there will be an enor -

mous demand for peo-ple with an associatedegree more so thanwith people with abachelor’s degree.

CPE is looking quiteseriously at how it canhelp KCTCS meetthose challenges. If youlook at the systemtoday, about 66 percentof the credentials thatKCTCS awards are cer-tificates. If you lookacross the countr y,community and techni-cal colleges have closerto a 50/50 balancebetween certificatesand associate degrees. Iwould like to seeKCTCS move in that direction. Notbecause there’s anything wrong with cer-tificates – they are very powerful instru-ments, but they are also limiting in thelong term. An associate degree does givethe individual who earns one a muchbroader array of future career choices.

EL: Dr. Lee T. Todd Jr., president of UK,has announced his retirement effectiveJune 30, 2011. How would you evaluate Dr.Todd’s 10 years at the helm of UK?RK: I’ve only been here for two of them.Lee Todd and I have developed a very pos-itive relationship. He has done a great dealfor the University of Kentucky in terms ofhelping elevate its own impression of itself.The UK faculty and the administratorsreally do embrace the vision of becominga Top 20 research university. Lee has beenmasterful in terms of getting a campus tobelieve in itself. He has been a tireless advo-cate for STEM (science, technology, engi-neering and math) education andencouraging more and more young peo-ple to consider engineering, science andmathematics. He has made a real imprintnationally and probably internationally. Mysense is that he will be remembered ver yfondly by students, faculty and alumni atthe university. He’s also managed to fieldpretty good basketball and football teams.

EL: Has any other state developed anew educational initiative you feelwould be effective in enhancing post-secondary education in Kentucky?RK: There are a lot of different modelsaround the country to which I certainlypay attention.

What North Carolina has done withhigher education over the last 30-40 yearsis a good model to follow. North Carolina’scommitment to grow its research presencehas enhanced its higher-ed institutions.The integration of its community andtechnical colleges has been successful.

Kentucky’s plans are very similar to NorthCarolina’s; we just haven’t achieved thesame level of success yet since we startedseveral decades later.

Kentucky’s Bucks for Brains Programis still active. There isn’t new money, butendowment funds continue to generateincome. CPE would love to see that pro-gram grow. There are two components tothe plan. First is the Buck for Brainsmoney that was very effectively used toattract new, high-quality faculty to ourinstitutions. Once we recruit a researcher,my judgment calls for part two, which issomething that Kentucky has not yet done– a research match that would be availableto researchers competing for grants.When I served in New York, we created astate research match of 10 to 12 percentthat was invested by the state for every newresearch dollar that came into our institu-tions. That match during a four-yearperiod allowed New York to increaseannual research volume from about $450-470 million to about $1 billion.

EL: Do you have a closing comment?RK: Given The Lane Report’s readership, Iwould encourage each employer to look atits workforce and identify capable peoplewho could benefit from additional educa-tion. Employers can play a significant rolein encouraging their employees to con-tinue their education. It wouldn’t hurt ifthere was more employer financial sup-port, but other financial support is avail-able. Employers should obviouslyencourage their employees to make suretheir kids are well educated. A quality edu-cation is the best investment a parent canmake in their child’s future. �


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


EDUCATION is increasinglyrequisite for students prepar-ing to participate in an ever -changing, increasingly globaleconomy, but it is not only

students doing homework and studyingthe marketplace. Postsecondary educa-tional institutions operate in a competi-tive environment that necessitates astuteobservation of market demands, inno-vative programming for changing stu-dent populations and a nimbleoperating system.

Kentucky colleges and universitieshave created scores of new degree andcertificate programs the past severalyears, many of those in healthcare andtechnical fields where the workforcerequires increasing skill levels.

The Kentucky Council on Postsec-ondary Education (CPE) licenses some89 institutions, comprising public andprivate organizations. In the past fiveyears, CPE has approved 150 new pro-grams – and that is among only the 24public-sector schools within CPEpurview.

Enrollment numbers have alsosteadily grown over the past 10 years.

Independent colleges and universitieslikewise have demonstrated notablegrowth in new programming, degreesawarded and enrollment, according to theAssociation of Independent Kentucky Col-leges and Universities (AIKCU).

Additionally, the 52 for-profit orcareer colleges in Kentucky are part ofthe mix, providing education to 32,000students, according to the KentuckyAssociation of Career College Schools(KACCS) and the Integrated Postsec-ondary Education Data System (IPEDS).

Kentucky mirrors national trends,according to CPE data, in the demand forprograms in health-related and STEM-related (science, technology, engineeringand mathematics) fields. Health-relatedprograms dominated the new-degree liston all levels – from associate degreesoffered at Kentucky Community and Tech-nical College System (KCTCS) institu-tions, to new post-baccalaureate pre-medand residency programs at University ofLouisville, to a master’s and Ph.D. inreproductive science at University of Ken-tucky. Though less prominent, STEM-related programming was notable withinthis list and may in fact be a reflection of

things to come, particularly considering arecent gift of $1 million to the Universityof Kentucky from Lexmark to supportSTEM education.

Enrollment climbing with degree program numbersEnrollment at Kentucky’s public institu-tions is up 17.9 percent the past 10years, CPE data indicates. Perhaps moresignificantly, enrollment within KCTCSis up 79.5 percent in that time. The pub-lic institutions have offered consistentlyincreasing numbers of degrees andother credentials over those 10 years –certificates and associate, baccalaureate,post-baccalaureate, master’s/specialist,post-master’s, doctoral, law, medicine,pharmacy and dentistry degrees.

Within all sectors, the highest num-ber of programs were approved at the


EDUCATION

Marketplace of DegreesStates’s 89 colleges and universities stay competitive

with scores of new higher education programs

BY ANNE SABATINO HARDY

Educated Numbers Kentucky’s Universities and Colleges

Public Universities: 8 (24 campuses)Kentucky Community and

Technical Colleges: 16 (70 campuses)Independent Kentucky Colleges and

Universities: 20 (60 campuses)Other licensed nonprofit Kentucky

Institutions: 13Other licensed for-profit

Kentucky Institutions: 5Out-of-state institutions licensed

to operate in Kentucky: 27

Provided by the Kentucky Council on Postsecondary Education


associate level – KCTCS’ statewide cam-puses combined garnered the mostapprovals – followed by baccalaureate,master, doctorates and certificates.

The institutionwith the mostapproved pro-grams on the listin those five yearsis Western Ken-tucky University.New WKUdegrees clustermostly in health-care, business andtraditional educa-tion, said Dr. GaryRansdell, presi-dent of Western Kentucky University.

“We are quite conscious of efficiency,and we want to be sure our curriculum isrelevant to the market demands of our pri-mary service region and the broadernational and international work place,”Ransdell said. “We know that if we are todrive up degree productivity we mustblend the traditional core curriculum witha rich array of high-demand disciplines.

“Much thought goes into which pro-grams to add and which to eliminate. Itis our job to help drive Kentucky’s econ-

omy, and put a large volume of qualifiedgraduates into Kentucky’s work force.Unwanted degree programs do not dothat; relevant and high-quality programsshaped by the marketplace do.”

New WKU healthcare degree pro-grams include a doctor of nursing prac-tice (DNP) and doctor of physicaltherapy (DPT), exercise science, sportmanagement and health science. Newtraditional education programs includean Ed.D., math education, math eco-nomics and military leadership.

“We have also been focused on thebusiness sector,” Ransdell said, “withnew programs that include interna-tional business, business informatics,entrepreneurship, and applied eco-nomics. New programs in the sciencesinclude water resource management,homeland security, meteorology, andgeographic information science.”

Other new WKU programs focus onhumanities, such as religious studies,Asian studies, organizational leadership,art history, film, pop culture, and dance.

Adjusting curricula is always a negotia-tion. It involves weighing simple elimina-tion – which is rare – with a re-alignmentor re-engineering of an existing programthat may become more practical with

changes. Due to this complicated formula,demonstrating growth of proposed oreven approved programming from year toyear is rarely quantifiable.

Kentucky CareerCollege Profile Data on the 32,000 students attending52 for-profit colleges operating in Ky.

Students25 years and older 53%Women 72%Minorities 24%Financial aid recipients 81%

Top counties by enrollmentJefferson 15,217Fayette 7,767Boone 2,407Warren 1,059Kenton 902

Top programs by awards conferredHealth Professions

and Clinical-Related Sciences 2,629Personal and Culinary Services 1,308Business, Management

and Marketing 1,236Engineering Technologies 262Computer and Information

Technology Sciences 39

Source: Kentucky Association of Career College Schools

Dr. Gary Ransdell,President, WKU



EDUCATION

Student demand and market factorsKentucky private and independent institu-tions likewise have grown in degrees andcredentials awarded the past 10 years, andseveral have made notable adjustmentsand additions to programs offered.

“In general, most recent new programshave been developed in response to work-force demands in some combination withstudent demand and market factors,” saidMason Dyer, director of communicationsand research for AIKCU. “Graduate pro-grams have accounted for a good portionof overall enrollment growth, and onlineand distance education has grown dra-matically at both the undergraduate andgraduate levels.

Two AIKCU institutions makingremarkable changes include AsburyUniversity and Midway College.

“There’s a sta-tistic that 80 per-cent of the jobsthat will beneeded by 2020do not even existtoday, which is apretty scary thingfor those who havea long time towork,” said Dr .Sandra Gray, pres-ident of Asbur yUniversity.

While the 80 percent figure may bean overestimation, she said, the pointremains valid.

“That just suggests to you that per -haps the specific skills you may havelearned in school may not apply to theskill base that will be needed five, 10, 15,20 years from now,” Gray said. “We’retrying to teach people how to think, tobe critical thinkers, to be able to applywhat they’ve learned to new ideas.”

Asbury’s recent transition from “col-lege” to “university” reflects its expand-ing program offerings inpost-baccalaureate work.

“Asbury has developed and pro-duced and is now offering the very firstteacher-as-leader [master’s] programin Kentucky,” said Gray. “As a follow onto that, we’ve developed a principal-ship program, so Asbury will begin inthe fall the very first principalship pro-gram of any institution in the state –and that’s really a rank one, it’s beyonda masters.”

A new multimillion-dollar high-techcommunications arts building testifiesto the conservative Christian school’scommitment to its crowning program.The communications department hasgained recognition in recent years fromparticipation in high-profile events suchas several successive international

Olympics. A communications master’sprogram is planned, Gray said.

Another private college with signifi-cant offerings is Midway College, whichsince the early 1990s has maintained adual purpose, operating its 164-year-oldtraditional women’s college – the onlyone in Kentucky – in Woodford Countywhile offering online classes and anaccelerated adult-education program atmultiple sites. Midway’s two notablerecent initiatives are an online bachelorof arts in mining management andsafety, and even more significantly, apharmacy school – only the third in thestate – that will be located 130 miles eastin Paintsville.

Dr. William B. Drake, president ofMidway College, said the adult educa-tion and online learning programs aretwo of the school’s strongest points andhave helped it grow. The online andadult-ed degrees address specific marketneeds and are drawing enrollment fromacross the country.

“We know there are people workingin industry who want that degree inmining management and safety andwho cannot go to the University of Mis-souri, Colorado State University oreven UK to complete mining manage-ment degrees,” Drake said. “So westarted what we believe is one of theonly degrees in mining managementand safety in the United States.

“We started that program becausethe industry came to us and said, ‘Weneed people who are qualified, whohave degrees in our area, and there sim-ply are not enough academic programs,or not the kind of degree programs tosupply our businesses with educated andcapable staff.’ ”

Dr. Sandra Gray, President, Asbury

Continued on page 28



EDUCATION

The new pharmacy program will takeits first class in August, accepting 80 stu-dents yearly the first four years. Beyondbeing a boon for students, Drake andMidway estimate the pharmacy schoolwill create a $40 million annual eco-nomic impact in Johnson and sur -rounding Eastern Kentucky counties.

“It’s intriguing.The profile [of stu-dents] hasn’tchanged. Ourmedian age contin-ues to be 35. Wejust have more stu-dents,” Drake said.“The majority ofour enrollments,over 1,600, are inprograms designedfor adults. W ebelieve we offer

what Kentucky needs in this time when somany people are losing jobs or underem-ployed or cannot find jobs. Many of ourdegrees lead directly to either enhancingone in their position or to other positions.”

On the other side of the private edu-cation sector lies the for-profit, orcareer, institutions. Though many serveKentucky, Sullivan University hasdemonstrated a knack for developingprogramming that is innovative andresponsive to market demands whilecarving a niche in the students itenrolls. The university includes the Sul-livan College of Technology and Designas well as Spencerian College.

“Our students are 26 to 28 years old onaverage, although we do have about 40percent of our incoming freshman classout of high school,” said A.R. Sullivan,chancellor of Sullivan University. “The restof them may have one or more degreesand are coming back as a career changerand are a little more mature. In a way, I callus a finishing college. They may come withcredits from here and credits from thereand we package them together and putthem on a set career path.”

Since it was formed as a business col-lege with five teachers and seven stu-dents in 1962, Sullivan has grown intoKentucky’s largest independent highereducation institution. Fall enrollmentwas 6,069 for programs ranging from aone-year through doctoral tracks. Theuniversity’s renowned hospitality pro-gram has 1,100 students from 38 statesand several foreign countries on its twocampuses.

Sullivan boldly launched a College ofPharmacy in 2008 that will graduate itsinaugural class of doctorates this year. Arecently introduced Ph.D in manage-ment, with concentrations in strategic

management, information technologymanagement or conflict management,will be available online and on-campus.

Other new programs at the schoolreflect partnerships between the uni-versity and industries whose workforcesits students aims to populate. Forexample, Chancellor Sullivan notes aplanned program in manufacturingtechnology driven in part by a relation-ship with the Kentucky Association ofManufacturers. Another is the HeatingVentilation Air Conditioning-Refriger-ation (HVAC-R) program at the Col-lege of Technology and Design, whichhas its own new LEED-certified build-ing and a recent endowment of$150,000 for scholarships from Inger -soll Rand, owner of Trane brand heat-ing and air-conditioning products.More than 100 students are currentlyin the program to become HVAC-Rtechnicians and energy auditors.

“Overall, we doa really good job,I think, of givingpeople what theyreally want in anefficient manner,”Sullivan said, “andpaying attentionto what we shouldall be payingattention to ineducation, whichis: what’s good forthe student and

helping the students to be availablewhen someone wants to hire.”

A broad commitment to expandinghigher education in Kentucky is seen inincreasing enrollment numbers acrossages, increasing awards of degrees andcertificates, and increasing programproposals, approvals and adjustments.But are those numbers the result of

reactions to the market’s demands, or iseducation driving the bus?

It is a case of chicken-and-egg,according to Dr. Aaron Thompson, sen-ior vice president for academic affairs atthe CPE.

“What pushes forward that economicagenda? Is it education pushing it for -ward in a proactive way, or is it educa-tion reacting to the need?” Thompsonsaid. “I think it’s a little of both.”

Evolution in degree programs for tradi-tional students, he said, are preparingthem for a new world’s career require-ments. Meanwhile, adult learners who haddropped out of high school or college as amarket of its own greatly in need, Thomp-son notes. Some of these students mayhave been able to gain reasonable employ-ment in the past but now find themselvesunprepared.

“We’re adjusting most to help (adultstudents),” Thompson said. “Especiallyif they are in the paid labor force andtheir employers are asking them to goback. More than likely they are askingthem to go back and re-engineer them-selves to be more high-tech.

“Many folks come back for postsec-ondary credentials instead of degrees,and we’ve seen a tremendous amount ofincrease in credentials and degreescompleted at that community and tech-nical college level.”

That’s not to say that the new focus onadult learners has taken away from stu-dents on a traditional track. Healthcare,often accepted as one of the most-neces-sary fields – and one of the most quicklychanging – is a place where students bothyounger and more experienced can growthrough continuing education.

Two new programs at Northern Ken-tucky University, for example, offeradditional higher education degrees: adoctorate of nursing education, DNE,

Dr. William Drake,President, Midway

A.R. Sullivan, Chancellor, Sullivan University

Continued from page 26



which will provide new educators to theinstitutions training nurses, and a doc-torate of nursing practitioner, DNP.

“There was a need for nurses to be ableto handle multiple duties on deeper levelsof clinical and administration,” Thompsonsaid. “The DNP was designed for that. Theassociation that represents all nurses rec-ommended that that was the directionthey needed to be going – instead of theMSN (master’s of science in nursing) asthe terminal degree, having the DNP asthe terminal degree.”

While new edu-cational offeringstrain students forhighly specializedareas of medicinesuch as informat-ics, medicalrecords and nurs-ing, Thompsonnotes also that thenecessity for a lib-eral arts educationhas not dimin-ished. It is beinghoned, however.

“The liberal arts education gives youthe foundation to operate in highlyspecialized areas – that’s important. Sojust the jobs themselves shouldn’t bethe only criteria that we’re looking at.As a matter of fact, if we listen toemployers and what they want, theywant people who can ... problem-solve.They want people who can communi-cate – orally and written – and all thosethings are liberal arts,” he said. “Sowhen we think about new programs, weneed to remember some of the coreand basic foundations lie within thattraditional general education or liberalarts area.”

It may be difficult to analyze whichcame first, the educational initiatives orthe market demands. It may be chal-lenging to determine which is moreimportant, the traditional or the non-traditional learner. Kentucky institution,however, are learning to equip thosewho pursue education and job skills inways pertinent to the world’s changingeconomies and expectations.

“We have many more people whowere, in the past, not able to get edu-cated in this country who are now able toget educated,” Thompson said. “We’rebringing a lot more people under thatumbrella than we ever have before. [Edu-cation] is not just being prepared for ajob; it’s essential for that, but it’s morethan that. It’s also being prepared to be acitizen, a lifelong resident of this countryor other countries.” �

Anne Sabatino Hardy is a correspondent for The LaneReport. She can be reached at [email protected].

Dr. Aaron Thompson,Senior Vice President for Academic Affairs, CPE


WITH $730 million inassembly plant upgradesannounced and underway, and scores of suppli-ers investing $600 mil-

lion more into modernization, Kentucky’smultibillion-dollar vehicle manufacturingindustry has regained traction the pastcouple of years.

“The battle iswhether you’regoing to be part ofthe auto manufac-turing industry ofthe future,” saidLarry Hayes, secre-tary of the state Cab-inet for EconomicDevelopment. Ken-tucky is faring wellin the fight. “W ewere in unchartedwaters in 2009.”

From January 2010 and through Aprilthis year, 85 companies in the common-wealth’s vehicle manufacturing sectorannounced investment projects. Around10 will be new state operations, butupgrades and expansion of existing Ken-tucky manufacturers are the lion’s share.

“We continue to get the reinvestment,”Hayes said. “That’s what you hope for.”

The state has four assembly plants –in Bowling Green, Georgetown and twoin Louisville. As of April 11, according

to the Cabinet for Economic Develop-ment, another 429 operations all overthe state build parts and products thosesuppliers require.

Together they produce 64,175 full-timeKentucky jobs and steady paychecks.

Ford’s decision to spend $600 mil-lion rebuilding the Louisville AssemblyPlant made Site Selection magazine’s listof the top 10 projects of any type for2010. General Motors made it officialMay 4 that it will spend $131 million toupgrade its Corvette plant in BowlingGreen for the next generation of theiconic sports car in two years.

Ford CEO AlanMulally and GMNorth AmericanPresident MarkReuss each toldKentucky audi-ences their compa-nies’ nine-figureinvestments reflecta strong commit-ment to economicpartnership withthe state. Ford willadd 1,800 assembly plant jobs later thisyear, and GM expects to add 250.

Surviving industry overcapacityThis key state commerce sector’s futurelooks reliably rosy today, but that was farfrom certain two years ago.

When the Great Recession eruptedin fall 2008 and sales quickly collapsed,the nation’s automakers soon foundthemselves trying to steer through awhite-knuckle, existential crisis. The fed-eral government reluctantly jumped inwith multiple bailouts rather than letU.S. automakers collapse, taking legionsof suppliers with them. GM andChrysler entered government-con-trolled bankruptcy; Ford Motor Co. hadenough cash reserves to go it alone.

The industry had 40-50 percent produc-tion overcapacity, and Kentucky had agingassembly plants and supply operations.

Competition among states that for-merly focused more on tr ying to landnew business became all about trying tohold onto the jobs they had. Kentuckyperhaps got ahead of the curve andestablished its willingness to do businessby extending flexible economic incen-tives during months of negotiations thathad convinced Ford in November 2008to announce a $200 million investmentat its Kentucky Truck Plant.

Shortly afterward, Gov. SteveBeshear’s administration announced aretooling of itsincentive programso the state couldoffer enhance-ments for projectbottom lines notonly to newprospects but toestablished Ken-tucky operations –targeting espe-cially those need-ing more efficientequipment and support systems toremain competitive. [See “RetoolingKentucky’s Automotive Industry,” Feb-ruary 2009, The Lane Report]

The Incentives for a New Kentuckypackage was enacted in a June 2009 spe-cial session of the General Assembly. Atthe recent GM announcement in Bowl-ing Green, Beshear said the KentuckyEconomic Development FinanceAuthority board has approved morethan 290 INK projects involving poten-tial investment of $2.9 billion, and cre-ating or preserving more than 19,000jobs. Vehicle manufacturing projectsrepresent a big chunk of those totals.

INK has 12 separate programs, but thebasic transaction is that a company is prom-

Gaining TractionSurviving national consolidation, Kentucky vehicle

manufacturing emerges stronger than before

BY MARK GREEN

COVER STORY


The Super Duty pickup, shown, is built inLouisville along with the F-250-F550 series, LincolnNavigator and Ford Expedition at Ford’s KentuckyTruck Plant, which underwent a $200 million upgrade in 2008-09. The Louisville Assembly plantis receiving a $600 million renovation that willmake it the most advanced, flexible vehicle assemblyplant in the world, according to Ford.

Larry Hayes, Secretary,Kentucky Cabinet forEconomic Development

Alan Mulally, CEO,Ford Motor Co.

Gov. Steve Beshear

Ford photo



ised cuts in future Kentucky tax bills if it ful-fills agreed-to investment, employment andsalary levels. No cash changes hands, butcompanies running the numbers up frontsee cheaper overall costs and better returnson investment. Tax incentives typically arespread across multiple years.

For example,GM will get up to$937,500 in annualcuts to state andlocal taxes it payson workers’ wages– state wage assess-ment participationis 3 percent andlocal participationis 1 percent,according toKEDFA informa-tion – for eightyears. In addition to investing $131 million,it must maintain a minimum of 449 full-time Kentucky resident employees, but GMtold state officials it expects to add 250 jobsover those eight years at a targeted wage of$42 hourly including benefits.

Reuss said the deal will keep produc-tion of “GM’s most iconic car … Amer -ica’s most iconic car” in Kentucky forthe foreseeable future.

Quality work ethic countsThat’s good news beyond the automotivesector because GM’s Corvette Museum inBowling Green attracts 20,000 visitorsfrom around the world. Some of those,Reuss said, are GM’s European rivals fromGermany and Italy whose comparablevehicles cannot compete on a cost basiswith the Corvettes that workers hand-craftin Bowling Green.

“People come to see how America canbuild a car that meets and beats the top per-formance vehicles in the world,” Reuss said,but cost many thousands less per vehicle.

Beshear credited the quality of Ken-tucky’s automotive sector workforce as the

reason the GM deal occurred and had thecrowd at the announcement give an ova-tion to plant workers and the United AutoWorkers (UAW).

Like Ford in Louisville, BowlingGreen is a union workplace. Toyotaworkers in Georgetown are non-union.

Kentucky’s “proven workforce” is astrong selling point when the state talks tovehicle manufacturing industry members,Hayes said. The fact that many auto plantworkers have commuted an hour or moreeach way to work for decades is an indica-tion of a strong work ethic.

The product output of Kentucky’svehicle plants is selling tool, too.

Top-selling vehicles, modern facilitiesIn fact, Hayes believes the state is emerg-ing with “the cream of the crop” of U.S.vehicle manufacturing.

In addition to the Cor vette, there isthe Ford Heavy Duty pickup lineup,which has been the top-selling vehicle inthe world for more than two decades,and the Toyota Camry, which is the topseller in its category.

Georgetown is Toyota’s largest produc-tion facility in the world and underwent a$400 million upgrade as a result of one ofthe first INK projects in 2009; in additionto Camrys, its 6,800 workers build theAvalon and the Venza crossover intro-duced in 2009 and 4- and 6-cylinderengines used in several of its vehicles. Toy-ota located its North American manufac-turing and engineering headquarters inNorthern Kentucky in Erlanger in 1996and employs 1,300 there.

Ford’s $600 million total retooling ofthe 56-year-old Louisville Assembly Plant(LAP), on track for completion later thisyear, will turn it into the most advanced,most flexible vehicle production facility inthe world, according to CEO Mulally. Itwill make the next generation of theEscape compact SUV, part of Ford’s strate-gic world-vehicle lineup, and be capable of

building up to six separate vehicles simul-taneously. LAP is being rebuilt specificallyfor swift retooling for quick response tochanging market conditions.

Meanwhile, there is the advanced-bat-tery sector of the world’s automotive indus-try, which will require an untold numberof energy storage units as the just-emerg-ing hybrid and electric vehicle marketgrows. Kentucky has no advanced-batter ymanufacturing now, but there is specula-tion the state is well placed.

Toyota produces hybrid Camrys inGeorgetown and is a world leader in bat-tery production from facilities outside theUnited States. State officials in 2009 per -suaded Argonne National Laboratory inChicago to open its first-ever satelliteresearch facility just north of Lexington incollaboration with the University of Ken-tucky and University of Louisville to per -form research into advanced batterymanufacturing techniques.

Additionally, Hayes said, another of theworld’s top advanced-battery makers isHitachi, which has had a major HitachiAutomotive Systems Americas manufactur-ing site in Harrodsburg since 1985. It has afocus on electrical components and justannounced a $49 million expansion in April

“We’re going to be in the right placeat the right time,” Hayes said. �

Mark Green is editorial director ofThe Lane Report. He can be reachedat [email protected].

Mark Reuss, NorthAmerican President,General Motors

Toyota produces the Camry, shown, Hybrid Camry,Avalon and Venza vehicles and 4- and 6-cylinderengines at its Toyota Motor Manufacturing Kentucky facility in Georgetown, which received a $400 million renovation in 2009.

Toyo

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“NEVER tell me theodds,” Han Soloshouts, swervingthe MillenniumFalcon into an

asteroid field to escape certain capturein the epic “Star Wars” series. C-3POhad just informed him that the odds ofsuccessfully dodging all the perils areapproximately 3,720 to one.

When they purchased a tiny Owens-boro restaurant in 1963, Catherine andHugh “Pappy” Bosley probably never askedthe odds of dodging all the perils inherentin running a business either. Like the sci-fiheroes though, the Bosleys not only beatthe odds, their children and grandchildrennow run a destination restaurant with 140employees and revenues expected toexceed $7 million in 2011.

The success of Moonlite Bar-B-Q isan engaging, improbable, modern-daybusiness story.

The story beginsIn February 1963, Catherine and Hugh“Pappy” Bosley paid $50,000 for a 14-year-old Owensboro establishment thatcould serve no more than 30 people.The tiny permastone structure locatedon Parrish Street had a few booths, acounter with stools and a cooking areabehind the counter. Moonlite Bar-B-Q,as it was called, was as much beer jointas barbeque place. There was a corn-field on one side and a hamburgerhangout, The Dipper, on the other.

There was no business plan. The cou-ple had no restaurant experience andlittle formal education. They used$5,000 profit from selling their home tomake a down payment on the establish-ment and moved in with Catherine’smother. Pappy was 48, Catherine, 42.They had five children.

Pappy never forgot that the oddswere not in their favor.

“Pappy ran the restaurant as if we weregoing out of business ever y day,” recalledKen Bosley, a second-generation ownerand now manager of daily operations.

But each day the restaurant survivedand even grew – ser ving barbeque andfresh pies and making customers feel athome. They weren’t making enough yetto pay the second generation, so theBosley kids worked at The Dipper forspending money and helped at Moon-lite as part of their chores.

For the next decade, Pappy – dressedin overalls and chewing a cigar – cookedand swept the floor and did whateverneeded doing for 18 hours a day .Catherine was known for her pies, buther days were no less grueling. No onecomplained. “There are no key hold-ers,” Pappy always said.

The back doorLike most businesses, Moonlite Bar-B-Qdidn’t grow in measured cadences. Itgrew more like a teen-age boy, in spurtsand surprises. The first serious growthcame in the mid-1970s – the result of anevent that could have toppled the smallestablishment.

By then, four of the five Bosley chil-dren – Ken, Fred, Hugh Jr. (calledBenny) and Janet – worked for pay atthe restaurant along with about 10 otheremployees; fifth Bosley sibling Jerryworked for NASA. This second genera -tion saw Owensboro growing rightbefore their eyes and knew ParrishAvenue was a key road.

They correctly surmised the citywould widen the road, taking their park-ing out front. If customers couldn’t getto the restaurant for weeks or months, itcould bankrupt them. They decided toact first.

Catherine owned part of the corn-field next door. With their portion ofthe land, the Bosleys added a new din-ing room, generous parking lot and anew entrance onto the back of the prop-


ENTREPRENEUR

B-B-Q Pit BossesBosley family grew Owensboro’s Moonlite Inn from dinerto a nationally known restaurant, catering and retail brand

BY DEBRA GIBSON

Moonlite B-B-Q Inn in Owensboro has been operatedsince 1963 by the Hugh “Pappy” Bosley family.Among the most active currently are, from left, PatrickBosley, third generation, wholesale foods manager;Ken Bosley, second generation, daily operations manager; Jeanie Heath, third generation, cateringmanager; and Hugh Bosley Jr., second generation.

2840 W. Parrish Ave.Owensboro KY 42301 [email protected] moonlite.com


erty. Perhaps most importantly, theybuilt new, larger barbeque pits.

All of this was completed long beforethe city announced the Parrish A venueexpansion. As construction crews dis-rupted other businesses, Moonlite cus-tomers sailed into the lot via the newback entrance.

Metaphorically, the back-doorentrance worked as well. The secondgeneration had continued the founders’tradition of treating customers as family.And family uses the back door.

A crucial chapterThe restaurant could now feed 100, butvery quickly that didn’t meet increasingdemand or create a desirable profit mar-gin. The family pondered ways toincrease the number of people theycould serve and came up what was anovel notion in the mid-1970s – a buffet.

“It was the first buffet in Owens-boro,” recalled Ken. “The buffet madeMoonlite a little different.”

Ken and son Patrick, manager ofMoonlite’s wholesale foods operationtoday, said the buffet brought in morecustomers and expanded capacity ashoped. It also served an even more vitalrole: It allowed Moonlite to grow largeenough to remain competitive.

“If we were not as big as weare, we wouldn’t have the buy-ing power we have,” saidPatrick. “We would have noleverage; Pepsi and Cokewouldn’t listen to us. Thechain restaurants operate onan entirely different level ofeconomics. Fortunately we arebig enough that if one sup-plier won’t listen to us, theircompetitor will.”

Ken said the buffet also fitnicely with company ethos.

“We see the buffet as anextension of the familytable,” Ken said. “It is likegoing to grandma’s for dinner. There ishome-cooked food, and the family sitsaround the table and talks.”

Community groups can now do like-wise in the Oak Room, a spacious affairseating 100 in country elegance. It wasadded just off the original entrance.

Space resulting from that expansionalso allows Moonlite to add the a USDA-inspected processing plant that is part oftoday’s operation. Moonlite is governed bythe USDA’s Hazard Analysis Critical Con-trol Point (HACCP). Pat Bosley said thisrigorous scientific inspection process cov-ers not only the 10 percent of product

Moonlite packages for resale but the 90percent used at the restaurant.

“We cook”Despite its size today and growing fame,a down-home feeling still pervadesMoonlite. Customers are met with anenthusiastic, smiley welcome. The moodis casual. From section to section, noneof the floors quite align. There is always

Moonlite B-B-Q Inn in Owensboro expects revenue to hit $7 million in 2011 for its family-stylerestaurant, catering, online sales and USDA approved processing operation.


at least one family member around, butyou can’t pick them out from the otherblack-polo-shirt-clad employees.

None of that will ever change, KenBosley vowed.

“We cook,” he said. “As more andmore restaurants turn to prepackagedfood cooked fast, we stand out as arestaurant jewel.”

Not that it’s easy. It takes 12 hours toslow-cook barbeque. It simmers on racksarranged above hickory logs thrust deepbelow the food in what is affectionatelycalled the pit. It is hot, hard, greasywork with more nuisances than onemight expect. In fact, it takes two yearsto become a Moonlite pit master.

According to government standards,barbeque must be cooked to lose at least30 percent of its original weight. Drip-pings from that shrinkage plus ash accu-mulation mean each of the pits has tobe cleaned once a month, which takesthree days – two to cool down and oneto climb inside and shovel it out.

Despite its lack of glamour, the pit isthe epicenter of Moonlite Bar-B-Q, andeveryone knows it. The second genera -tion doesn’t tinker with the recipe orthe way its signature food is prepared.They serve Southern barbeque – pork,chicken, beef, ribs and local favoritemutton. The two-page menu reveals alot of other choices, including countr yham, an array of vegetables, a delectablecake-like cornbread and a familyfavorite called banana salad.

The menu leads to reviews like the onein Gourmet magazine: “What’s specialabout a Western Kentucky barbecue buf-fet is the variety of meats. Most of Amer -ica’s serious barbecue scenes specialize injust one kind: beef sausages in East Texas,pork shoulder in South Carolina, ribs inChicago. In Owensboro, they’ve got it all,and at Moonlite, it is all good.”

Perhaps that’s why the second gener-ation keeps on doing what they havealways done – well, mostly. To keep theinevitable sibling rivalries from affectingdaily operations, the four second-gener-ation owners divided up responsibilities.Each now has his or her own kingdom.

“As we have grown, we have becomemore specialized,” Ken Bosley said. “Youjust can’t know everything today. We tryto respect who is in charge of what anddefer to that person.”

Growth in some divisions alsobrought change. The wholesale divisionsaw solid growth in the 1980s and nowsells barbeque to Kroger, Walmart andothers. Some retailers sell under the

Moonlite label and others rebrand withtheir own name.

As sales grew so did the number ofemployees. By the mid-1980s, Moonlitehad 50 non-family employees.

In 2003, a banner year , revenuesexceeded $5 million and topped $6 mil-lion in 2004. Business growth slowed as theeconomy peaked, even decreasing in 2008-09 during the worst of the recession, butnever falling back below $6 million inannual revenue. The Bosleys expect to sur-pass $7 million in revenue for 2011.

The newest chaptersSome of Moonlite’s biggest recent growthhas been in catering. It began as a specialrequest service two or three times a yearinvolving mostly basic barbeque.

In the past 10 years, however, cateringhas steadily grown into nearly 20 percentof total revenues, last year grossing about$1 million, according to Jeanie Heath, athird-generation family member and man-ager of the Catering Division. They canfeed up to 15,000 and serve not onlyMoonlite’s specialties but virtually any spe-cial recipes a customer wants.

Catering operates at capacity duringholiday seasons. In between, Heath takesMoonlite into some big-time arenas, suchas serving burgoo and mutton at the BigApple Block Party in New York City. Thereare constant charity events in nearby Hen-derson and and Evansville, Ind., as well asLouisville and Nashville.

The only failed endeavor came whenMoonlite opened a soup and sandwichshop in the Evansville mall.

“It wasn’t what our customerswanted,” Pat Bosley said. “They wantedthe buffet.”

The experience taught Moonliteowners an important lesson. Franchis-ing is not a viable concept for their busi-ness; it is too difficult to duplicate thefood and the experience.

There will always be lessons andissues to address, of course.

The Owensboro hospital and its3,000-plus system employees are movingacross town, for example. When a newmedical center now under construction

is completed, hospital staff who drop into eat lunch now will be twice as faraway.

“Economic change is unpredictable,”Ken Bosley said.

That was underscored a year agowhen the Executive Inn, once a regionalpowerhouse convention hotel, closed.Moonlite owners knew 50 percent oftheir revenues come from non-localsand estimated 10 percent of that wasExecutive Inn clientele. The closure wasa lesson in the connectedness of busi-nesses, Ken Bosley said. Local enter-prises affected ranged from restaurantsto a cobbler, whose business plummetedbecause out-of-towners no longerbrought their shoes for repair.

A year later, Moonlite is just recover-ing from that loss. Some of the recoveryis attributed to the fact that Moonlitehas, in Ken’s words, grown from “arestaurant to a destination restaurant.”

The entryway displays framed articlesby The New York Times, The WashingtonPost, Southern Living, Travel+Leisure,Money, Los Angels Times and an array ofKentucky and regional publications.They consistently rave, some evendeclaring Moonlite’s barbecue the bestin the United States. There are picturesof former President Bill Clinton eating.Other stars, particularly country musicheadliners, often fly in for a quick bite.

It’s heady stuff, but Ken Bosley does-n’t forget reality.

“We have 179 competitors in Owens-boro alone,” he said. “Anywhere peoplecan eat is a competitor. People only haveso many dollars to spend on eating out.If they choose to eat somewhere else,that opportunity for us is gone.”

As they tend the buffet, fourth-gen-eration family members Isaac, 7, andLogan, 12, probably don’t think muchabout the competition. They are occu-pied with the 600 to 700 people who eatat the restaurant weekdays, and gettingready for the 1,200 who will be stoppingby Saturday and again Sunday. �

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


ENTREPRENEUR

Moonlite B-B-Q Inn has grown for 48 years bysteadily innovating and adding business lines. It was the first to introduce buffet service in Owensboro in the 1970s.



COMPARISONS are com-monly made. Students com-pare test scores. Siblingspencil their heights on doorjambs. Friends and cowork-

ers compare careers and incomes.Investors compare firms’ sales, marketshare and profitability. Churches com-pare attendance and membership. It isnatural, therefore, to compare the vital-ity of local and state economies. Bydoing, so we gain insight into strengths,weaknesses, risks and reasons for these.

To the casual observer, Nashville hasgrown more than Louisville. For example,Nashville has two professional sports fran-chises whereas Louisville has none. Butclearly this is a limited comparison of com-munity attributes that many would view asunimportant. The following comparisonsfocus economic performance and popula-tion growth. We first compare Louisville-Jefferson County, Ky., and Nashville-Davidson County, Tenn. Next we comparetheir respective 13-county metropolitan sta-tistical areas. We conclude with a review ofsome possible reasons for Louisville’s lag-ging economic performance.

The Bureau of Economic Analysiscurrently reports local-area data for the39-year period 1969-2008. Table 1 showstotal personal income, per capita per -sonal income and population for Jeffer-son County, Ky., and for DavidsonCounty, Tenn., at the beginning and atthe end of this period. In 1969 JeffersonCounty surpassed Davidson County by awide margin in all categories: total per -sonal income was 62 percent higher,population was 55 percent greater, andper capita income was 5 percent higher.By 2008 Jefferson’s County’s personalincome exceeded Davidson’s by only 7percent, Jefferson’s population

exceeded Davidson’s by only 14 percent,and Jefferson’s per capita income($41,517) was about 7 percent belowDavidson’s ($44,228) per capita income.

Metro data tell a similar story. Table 2reports total personal income, percapita personal income, and populationfor each of the two 13-county metropol-itan statistical areas. In 1969 theLouisville metro area far exceeded thatof Nashville in all categories. However,by 2008 total personal income ($61.89billion) in the Nashville area exceededthe comparable figure ($47.48 billion)for Louisville by roughly 30 percent.Also, by 2008 Nashville’s metro areapopulation had surpassed that ofLouisville by over 300,000. In addition,by 2008 the Nashville metro area hadnot only caught up with but had sur-passed the Louisville metro area in percapita income.

Small differences in growth ratesmatter. Per capita income in JeffersonCounty grew at an average annual rateof 6.3 percent over the 39-year periodwhereas per capita income in DavidsonCounty grew at 6.6 percent. The 0.3 per-cent difference appears trivial, but thepower of compound growth is astound-ing when applied to long time periods.In this case a 0.3 percent differenceresulted in a per person income gap ofnearly $14,000. This may , in part,explain why Nashville has two profes-sional sports franchises while Louisvillehas none.

A Tale of Two CitiesMore favorable tax policy

and labor laws havehelped Nashville growfaster than Louisville

BY STEPHEN E. LILE AND BRIAN GOFF

ECONOMIC COMMENTARY

TABLE 1County-Area Comparisons

LOUISVILLE-JEFFERSON, KY NASHVILLE-DAVIDSON, TN PERSONAL PER CAPITA PERSONAL PER CAPITA

YEAR INCOME (000) POPULATION INCOME INCOME (000) POPULATION INCOME

1969 $2,636,468 686,605 $3,840 $1,626,678 444,253 $3,6622008 29,785,092 717,414 41,517 27,794,064 628,207 44,228

Source: bea.gov/regional/reis/drill.cfm

TABLE 2Metropolitan Statistical Area Comparisons

LOUISVILLE NASHVILLEPERSONAL PER CAPITA PERSONAL PER CAPITA

YEAR INCOME (000) POPULATION INCOME INCOME (000) POPULATION INCOME

1969 $3,595,357 978,369 $3,675 $2,509,063 740,317 $3,3892008 47,484,247 1,249,739 37,995 61,893,259 1,556,368 39,768

Source: bea.gov/regional/reis/default.cfm?selTable=CA1-3&section=2

1 Assumes $180,000 from salary and $20,000 from dividends and interest. 2 An occupational tax rate of 2.2 percent is levied on gross salar y income of Jefferson County residents.

TN’s income tax applies only to dividends and interest.

Downtown Nashville’s skyline has been transformedby new skyscrapers the pastseveral decades.



The question cannot be avoided:Why has Louisville and Jefferson Countygrow more slowly than Nashville andDavidson County? At the most generallevel, economists point to labor, capitaland technology as key sources of eco-nomic growth. Higher labor costs orlower-skilled workers matter. Differ-ences in existing infrastructure and inhighways matter. Climate, ports and har-bors matter. A comparison of thesebetween the Louisville and Nashvilleareas is not possible here, but it likelywould show more similarities than dif-ferences. It seems reasonable to looktoward public policies for the answer.

Public policies matter because theycan reduce incentives to utilize laborand capital, and therefore can act asrestraints on economic and populationgrowth. High taxes, unless associatedwith improved infrastructure that makesfor higher productivity, can be expectedto discourage work, saving, investmentand thus growth. Laws governing theemployer-employee relationship such aspolicies that encourage collective bar-gaining are likely to increase wages and,unless associated with higher labor pro-ductivity, can be expected to increaseproduction costs and result in lowerexpected profit, reduced businessinvestment, and lower growth rates.

It’s not just business taxes that matter .High taxation of individuals and familiescan discourage location choices especiallyin the case of highly sought after, high-income individuals. We estimate, for exam-ple, that a hypothetical couple inLouisville with $200,000 in income paysabout $11,000 more in “big three” taxes(sales, property and income) than thesame couple in Nashville. The Nashvillefamily pays more in sales and propertytaxes, but this is more than offset by thenearly $14,000 of state and local incometax in Louisville.

Empirical studies of the effects of busi-ness taxes have shown mixed results. Anearly study (Helms, 1985) found thathigher taxes reduce growth when used tofinance transfer payments, but do notreduce growth when used to finance infra-structure such as prudently built highwaysand the like. Another early study (Genet-ski and Ludlow, 1982) found states thatdecreased their tax burdens relative to thenational average tend to experienceabove-average growth, whereas states thatincrease their tax burden relative to thenational average tend to suffer below-aver-age economic growth.

A more recent study (Bauer ,Schweitzer and Shane, 2006) thatincluded a measure of “knowledgestock” found that tax burden is statisti-

cally insignificant. It is not surprisingthat studies show different results. Theyfrequently use different periods of time,often measure tax burden differentlyand, most importantly, often are unableto control fully for the impact on growthof factors other than taxes.

The tax comparisons presented hereare suggestive. In a comprehensive sta-tistical study matching similar states(such as Kentucky and Tennessee) andtaking into account a variety of influ-ences on growth, including educationand physical capital, Western KentuckyUniversity colleagues and I find thatnearly half of the 10 percent growthadvantage enjoyed by Tennessee from1997 to 2006 can be attributed to Ken-tucky’s higher tax burden, with laborlaw also contributing.

Policy makers in Louisville and inFrankfort may want to reconsider theimpact that public policy has ongrowth, for even small negative policyimpacts can have large consequencesfor economic performance over longtime periods. �

Stephen E. Lile and Brian Goff are professors ofeconomics, Ford College of Business, at WesternKentucky University.


STORM water flooding and runoff athomes, businesses and our commu-nities is having a growing impact on

our day-to-day lives. However, several per-meable pavement systems are available tothe homeowner, business owner andmunicipality that can significantlyimprove the sustainability of properties.

Assessing which low-impact develop-ment pavement system might handle aproperty’s storm water on site dependson the budget available and the imme-diate need. There are a variety of situa-tions where permeable pavementsystems can be used, and around Ken-tucky such systems are being installed indriveways, patios, walkways, trails, alleys,streets and parking lots. Wherever con-ventional asphalt or concrete pavementcan be used, permeable pavement sys-tems are an option.

The three most popular types of per-meable pavement systems are per viousconcrete, pervious asphalt and perme-able interlocking concrete pavers(PICP). Each system has its own installa-tion requirements, features and aes-thetic value.

The common feature all three shareis the below-the-surface use of open-graded washed stone or concrete aggre-gates that vary in size and depth. Thedepth of this cross section depends onlocal storm water requirements.

These open-graded aggregates allowstorm water to infiltrate into a prop-erty’s subgrade soil or be detained and

moved into a rain garden, bio-swale, bio-retention pond or even back into thestorm water system.

Cost comparison of permeable pave-ment systems to conventional asphalt orconcrete systems must take into accountassociated storm water controls. Perme-able systems often eliminate costs forcatch basins, clean outs, large concretedrain pipes and retention ponds.

Lexington Housing Authority offi-cials said last year using permeable pave-ment in redevelopment of an 80-acreformer public housing project site savedmore than $1 million in costs for stormwater control infrastructure.

Some communities, includingLouisville and Lexington, have financialincentives to encourage use of perme -able systems.

Installation costs are also important.Pervious asphalt has the least costlyinstallation per square foot. Perviousconcrete and permeable interlockingconcrete pavers have comparable instal-lation costs; however, if a permeable-pavers project is mechanically installed,installation costs will be less than that ofpervious concrete.

When it comes to the installation ofeach system, both pervious asphalt andpervious concrete require a certifiedinstaller from the supplier to ensuresuccess. Permeable interlocking con-crete pavers can be installed by any resi-dential or commercial landscapecontractor that has experience

installing any type of pavers. Permeableconcrete pavers can be installed byhand or, for larger projects, by machineto reduce labor costs.

Pervious asphalt and pervious con-crete thicknesses vary according towhether the surface will be used for footor vehicular traffic. Permeable concretepavers have a high load-bearing capac-ity and come in one thickness that sup-ports not only foot traffic but heavy-axleloads such as firetrucks.

Where aesthetics are important, per-meable concrete pavers are a slam-dunkchoice – an unlimited number of colors,shapes and sizes are available. This givesa homeowner or landscape designer awide range of selections to blend withother landscape materials.

Pervious asphalt and pervious con-crete color are black and concrete grey,respectively. In some cases, perviousconcrete can be stained a color at anadded cost.

Maintenance on all three permeablesystems is similar. All share a recom-mendation of sweeping and vacuumingthe surface at least once per year. Forpervious concrete and pervious asphaltin areas that clog more quickly , a pres-sure washer is used to push any block-age through to the base aggregates. Forpermeable concrete pavers, sweepingthe surface by hand or by machine forlarger projects is all that is needed;power washing is not necessar y and fillchips in the space between pavers canbe easily replaced if needed.

The lifespan of permeable pavementsystems varies by the finished product,but the installation process can play akey role in longevity. Pervious asphaltand pervious concrete have an averagelife of 20 years. Permeable interlockingconcrete pavers have a lifespan of 35-plus years thanks in part to their lowabsorption rates and 8,000-plus PSIstrength capacity.

All three systems comply with fed-eral NPDES Phase II rules for stormwater, and are recognized by the EPA asa Best Management Practice for stormwater control. �


PERMEABLE PAVEMENT SYSTEMSPervious surfaces can keep storm water runoff on site for projects

BY GREG COOPER AND MICHAEL BAKER

GOING GREENWorkers install a permeable interlocking concretepaver system with mechanical help to reduce man-power expense.

Greg Cooper, LEED GA, [email protected], and Michael Baker, LEED AP,[email protected], arespecification manager and regionalmarket manager, respectively, in thehardscape division of Cincinnati-basedReading Rock Inc.



SINCE everybody else seems to becoming up with plans on how tocope with the skyrocketing national

debt, let me try my hand at it too.The liberals’ easy solution is just to

increase taxes on “the rich.” But if youdo the math, there aren’t enough of“the rich” to cover the huge and record-breaking deficit.

Trying to reduce the deficit by cut-ting spending runs into an old familiarcounter-attack. There will be all kinds ofclaims by politicians and sad stories inthe media about how these cuts willcause the poor to go hungry, the sick tobe left to die, etc.

My plan would start by cutting off allgovernment transfer payments to bil-lionaires. Many, if not most, people areprobably unaware that the governmentis handing out the taxpayers’ money tobillionaires. But agricultural subsidiesgo to a number of billionaires. V ery lit-

tle goes to the ordinary farmer.Big corporations also get big bucks

from the government, not only in agri-cultural subsidies but also in the nameof “green” policies, in the name of“alternative energy” policies, and in thename of whatever else will rationalizeshoveling the taxpayers’ money out thedoor to whomever the administrationdesignates, for its own political reasons.

The usual political counter-attacksagainst spending cuts will not workagainst this new kind of spending cutapproach. How many heart-rending sto-ries can the media run about billion-aires who have lost their handouts fromthe taxpayers? How many tears will beshed if General Motors gets dumped offthe gravy train?

It would also be eye-opening tomany people to discover how muchgovernment money is going into subsi-dizing all sorts of things that have noth-

ing to do with helping “the poor” orprotecting the public. This wouldinclude government-subsidized insur-ance for posh and pricey coastalresorts, located too dangerously closeto the ocean for a private insurancecompany to risk insuring them.

This approach would not only cir -cumvent the sob stories, it would alsocircumvent the ideological battles overwhether to cut off money to PlannedParenthood or National Public Radio.

The money to be saved by cutting offagricultural subsidies to the wealthy andthe big corporations is vastly greaterthan the money to be saved by cuttingoff Planned Parenthood or NationalPublic Radio, much as they both deserveto be cut off.

Social Security and Medicare are sup-posed to be among the most difficult pro-grams to cut without ruinous politicalconsequences. However, it is not necessaryto attack all the spending on these pro-grams in order to make big savings. �

IT’S TIME TO STOP THE GRAVY TRAINAnother spending-cut plan: First stop giving billionaires money

BY THOMAS SOWELL

OPINION

Thomas Sowell is a senior fellow at theHoover Institution, Stanford University


FILM production crews and designerslooking for well-crafted, period-cor-rect articles for film sets often turn to

the wealth of talented artisans in Kentucky.Many have had their original works as wellas period reproduction works used in filmand television.

Kentucky artist Phil Phillips of DixieLeather Works in Paducah has createdreproduction props for more than 40major films. His period-accurate repro-duction leather works have been includedin such films as “The Alamo,” “God’s & Gen-erals,” “Gangs of New York,” “Gettysburg,”“Amistad, “The Civil War” and the TV series“Dr. Quinn, Medicine Woman.”

He has produced theatrical props forTurner Cinema Inc., Stephen Spiel-berg’s Dreamworks, Lakeside Produc-tion and Blue Sky Films among others.

Third-generation broom makerRichard N. Henson of Symsonia creates

brooms like his father and grandfatherbefore him and has had them used in“Dr. Quinn, Medicine W oman” and“Martha Stewart Living” as well as for theLeeds, England, ballet “Angels in theArchitecture.”

When production crews for Robert Red-ford’s recently released “The Conspirator,” setin 1865, were looking for historically accu-rate items they turned to Heidi Sanner ofCandle Bee Farm for tapers made using tra-ditional methods and organic beeswax pro-duced by her own bees.

When the 1989 Bruce Willis movie “InCountry” was filmed nearby, Creatures ofHabit in Paducah began what has becomea continuous association with film indus-try costumers and prop designers. It has17,000 costumes for rental or purchaseand has supplied costumes and props for“Titanic,” “Pleasantville,” “A League of TheirOwn” and numerous PBS documentaries.

There are many other artists acrossthe state whose work has appeared infilms not mentioned in this article.

Products from Candle Bee Farm,Dixie Leather Works and hand-craftedbrooms by a number of Kentucky arti-sans are regularly available at the Ken-tucky Artisan Center at Berea, which hashosted more than 1.4 million visitorssince 2003.


SPOTLIGHT ON THE ARTS

Lori Meadows is executive directorof the Kentucky Arts Council.

Arts Events Around the StateThe Kentucky Mountain Laurel FestivalPikeville9 a.m.-10 p.m. May 26-28kmlf.org (606) 337-6103

LaVon Williams: Kentucky Folk ArtistKentucky Artisan Center at Berea8 a.m.-5 p.m. through Aug. 1 kentuckyartisancenter.ky.gov (859) 985-5448

Darius RuckerParamount Arts Center, Ashland8 p.m. June 16 paramountartscenter.com(606) 324-3175

Civil War Living History CelebrationMoreheadJune 3-5moreheadtourism.com(800) 654-1944

The Little FoxesThe Kentucky Center for the Performing ArtsBrown Theatre, Louisville8 p.m., May 20 - 29 kentuckycenter.org(502) 562-0100

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

Film Makers Pick Handmade Reproductions from Kentucky Artisans

KAC Awards Artist Residency Grants Bill Sets FY11Funding for NEATHE Kentucky Arts Council has awarded

$21,600 in Teacher Initiated Program grantsfor short-term artist residencies in the fall.

These grants give professional artists an opportu -nity to demonstrate their art forms and providestudents and teachers repeated hands-on experi-ences in the making of art. Artists also collaboratewith teachers to design and implement innovativeprograms that provide the tools to continue incor-porating art across the curriculum after the resi-dency is completed.

Grant amounts are based on the length of resi-dencies, which can be one to four weeks; awardsare $540, $1,080, $1,620 and $2,160, respectively. Altogether, 40 weeks of residencieshave been funded through this semi-annual round of the Teacher Initiated Program.

KENTUCKY Arts Council is stillawaiting word on 2011 grantfunding from the National

Endowment for the Arts after Congressand the president reached an agree-ment in mid-April to provide $155 mil-lion for NEA.

The continuing resolution for 2011that passed the House in February wouldhave reduced arts endowment funding to$124.4 million. The new continuing reso-lution instructed federal agencies, includ-ing the NEA, to provide Congress within30 days of enactment of the bill with adetailed spending plan for the remainderof the 2011 fiscal year.

In 2010, the Kentucky Arts Councilreceived a state partnership grant ofnearly $865,000, which makes up almostone-fourth of KAC’s annual budget. Itsupports grant programs, artist residen-cies in schools, touring exhibitions, per-formances and arts events. It is also keyto providing operating support to Ken-tucky Arts Partnership organizations,which in turn bring the per forming,visual, literary and media arts to rural,urban and suburban communitiesacross the commonwealth.

A student at Cumberland County Mid-dle School works on a mural with AERartist Pat Ritter.

Dixie Leather Works in Paducah created this authentic reproduction of an 1800s military medical field case.



IN my early intensive days of learningsales and attitude (1972-1973), I wastaking a four-hour sales and attitude

training class every day from 8 a.m. tonoon. Every day.

All of my fellow learners (there werenine in the group) immediately tooklunch after the training – except me. Ischeduled a sales appointment every dayat 12:01 p.m. I was full of fresh informa-tion to make a sale. I had new attitudelessons and new sales ideas, and if youcan imagine a daily sales lesson lastingfour hours, I was on fire!

Why would I waste that energy onhaving lunch with co-workers? No way. Iwanted to channel that energy, harnessthat energy and direct it toward a salesprospect.

My strategy was to practice what Ihad just learned. Whatever the lessonwas about, that’s what I used in my pres-entation. And I did it with an incrediblepositive attitude and the enthusiasm ofa child.

Keep in mind this occurred in 1972.There were no computers, no videos ofany kind and no CDs; the new technol-ogy was cassette tapes, and credit cardswere just coming into vogue. Notes werehandwritten (yes, I still have those note-books), and everyone sat around thetape player or record player, or wewatched a movie on a 16mm projector .

But my objective when I was firstlearning how to sell is the same as it istoday: Be the best in the world. I lovedit and couldn’t get enough.

As you can imagine, ever yone on myteam thought I was nuts, teased me,called me whatever. But I just smiled andwent about my business – making sales.

The appointment at 12:01 p.m. hadmixed results. While I was on fire, thetechniques and strategies I employedfrom the morning lesson didn’t alwayswork. Some had to be modified andtried again. Some I had to eliminate.Some were way too manipulative (notmy style). Some were more engagingand suited me because they engagedthe prospect and created dialog.

I made a lot of mistakes. I made a lotof sales. Either way, I was learning. I waslearning something new every day, andI was putting those lessons into practiceone minute after I learned them. I elim-inated what didn’t work and refinedwhat did.

Once that era ended, I went out inthe world to start my own business(something way more difficult than hav-ing a sales job). As owner of the com-pany, I always make all the sales.

I began to interact with other busi-nesspeople and gain more insight fromthem. Not just sales information, busi-ness wisdom. I wanted to know whathappened after the sale was made. I wasas interested in the outcome as I was inthe transaction. Are you?

I discovered that by studying whathappened after the sale, it was easier tomake the next sale. I could tell storiesabout similar situations and give exam-ples of customer successes.

It made my sales presentations muchmore conversational, and piqued the cus-tomers’ level of interest. It seemed that themore I asked questions and told stories,the more customers bought from me.

Those experiences led me, 25 yearslater, to my trademarked phrase, “Peo-ple don’t l ike to be sold, but theyLOVE to buy.” That was almost 20years ago.

I have employed that strategy andphilosophy throughout my career ofselling. Which, by the way, still takesplace every day.

Where did you learn to sell? Andhow comfortable are you with your sell-ing process?

Take a few moments to reflect onwhere you gained your knowledge, thentake a few more moments to ask yourselfhow you documented it, and howquickly you were able to put your knowl-edge into action.

My accidental secret of scheduling asales call one minute after training,and practicing what I believe to betrue, has served me well for 39 years.Try it. What are you doing after yoursales meetings? �

WHERE DID YOU LEARN TO SELL?Making calls right after training furthers the learning

BY JEFFREY GITOMER

SALES

Jeffrey Gitomer (salesman@ gitomer.com)is the author of The Sales Bible.



KENTUCKY’S LARGEST PUBLICLY HELD CORPORATIONSEntities are headquartered in Kentucky and ranked by revenue

1 Humana Inc. (HUM)Louisville

Michael McCallisterhumana.com

$12.68 billion(2)

$33,870,000,000$1,100,000,000

Humana is one of the nation’s largestpublicly traded health benefits companies, with approximately 11.3 million members

2 Yum! Brands (YUM)Louisville

David Novakyum.com

$24.79 billion(1)

$11,420,000,000$1,180,000,000

The parent company of KFC, Long John Silver’s, Pizza Hut, Taco Belland A&W ranks as the world’s largestrestaurant company.

3 Ashland (ASH) Covington

James O’Brienashland.com

$4.80 billion(6)

$9,120,000,000$299,000,000

Since its inception in 1924 as a regional petroleum refiner, Ashland has evolved into a specialty chemicalcompany with a global reach.

4 Omnicare (OCR) Covington

Joel Gemunderomnicare.com

$3.68 billion(8)

$6,180,000,000-$93,430,000

Omnicare provides pharmaceuticalcare for 1.4 million seniors in 47 statesand conducts clinical research for thepharmaceutical and biotech industries.

5 General Cable (BGC)Highland Heights

Gregory Kennygeneralcable.com

$2.29 billion(10)

$4,860,000,000$69,200,000

General Cable develops, producesand distributes wire and cable products for the energy, industrial andcommunications markets.

6 Kindred Healthcare(KND) Louisville

Paul Diazkindredhealthcare.com

$999.48 million(12)

$4,460,000,000$63,110,000

Kindred operates 82 hospitals and249 nursing centers, as well as institutional pharmacy and Louisvillepharmacy management businesses.

7 Lexmark Int’l (LXK)Lexington

Paul Rookelexmark.com

$2.47 billion(9)

$4,190,000,000$328,000,000

Since entering the market in 1991 as a spin-off of IBM, Lexmark hasbecome an international leader incomputer printers and peripherals.

8 Brown-Forman (BFB) Louisville

Paul Vargabrown-forman.com

$10.20 billion(3)

$2,540,000,000$477,700,000

Though Brown-Forman at one timeowned product lines ranging fromchina to luggage, it is returning to its wine and spirits industry roots.

9 Tempur-Pedic Int’l (TPX)Lexington

Mark A. Sarvarytempurpedic.com

$4.17 billion(7)

$1,180,000,000$172,260,000

Tempur-Pedic produces premiummattresses and pillows utilizing pressure-relieving material developed by NASA.

10 Papa John’s Int’l (PZZA)Louisville

John Schnatterpapajohns.com

$822.02 million(13)

$1,130,000,000$51,940,000

Since opening its first restaurant in 1985, Papa John’s has expandedto 3,000 locations in 49 states and29 international markets.

11 Boardwalk PipelinePartners (BWP) Owensboro

Rolf Gafvertboardwalkpipelines.com

$5.79 billion(5)

$1,120,000,000$264,400,000

Through its three subsidiaries,Boardwalk oversees the transportand storage of natural gas.

12 Ventas (VTR) Louisville

Debra Cafaroventasreit.com

$9.04 billion(4)

$1,020,000,000$218,370,000

Ventas is a leading healthcare realestate investment trust company,with a portfolio that includes morethan 500 healthcare facilities.

13 Texas Roadhouse(TXRH) Louisville

G. J. Harttexasroadhouse.com

$1.17 billion(11)

$1,000,000,000$58,290,000

Texas Roadhouse opened its firststeakhouse in 1993 and now oper-ates 263 restaurants in 44 states.

14 Churchill Downs (CHDN)Louisville

Robert Evanschurchilldowns

incorporated.com

$659.18 million(14)

$585,340,000$19,320,000

Churchill Downs owns and operatesracetracks and simulcast operationsin Kentucky, Illinois, Florida andLouisiana.

15 Industrial Services ofAmerica (IDSA) Louisville

Harry Kletterisa-inc.com

$69.29 million(23)

$343,010,000$8,050,000

Industrial Services of America is aleader in scrap recycling and wastemanagement.

COMPANY (TICKER)LOCATION

CEOWEB SITE

MARKET CAPITALIZATION(RANK)

TOTAL REVENUE (FY 10)NET INCOME (FY 10)

COMMENTS

THE LANE LIST



Source: reuters.com; bloomberg.com; nasdaq.com

16 Almost Family (AFAM)Louisville

William Yarmuthalmost-family.com

$308.10 million(19)

$338,210,000$28,980,000

Founded as Caretenders in 1976, thecompany changed its name in 2000and has expanded to include homehealth operations in nine states.

17 Sypris Solutions (SYPR)Louisville

Jeffrey Gillsypris.com

$94.15 million(22)

$266,650,000-$9,710,000

Sypris provides technology-basedand specialty services, and is amajor defense and government contractor.

18 Republic Bancorp(RBCAA) Louisville

Steven Tragerrepublicbank.com

$420.41 million(15)

$258,000,000$91,540,000

The bank holding company for Republic Bank & Trust, which has locations in central Kentucky, southern Indiana and central Florida.

19 U.S. Computer ServicesInc. (CSVI) Paducah

Steven A. Powlesscsiweb.com

$394.96 million(17)

$163,330,000$23,840,000

U.S. Computer Services providesdata and transaction processing,eBusiness service and hardware to financial firms.

20 Community TrustBank (CTBI) Pikeville

Jean Halectbi.com

$415.82 million(16)

$143,700,000$33,030,000

Headquartered in Pikeville, CommunityTrust operates 74 banking locationsand five trust offices in eastern andcentral Kentucky, as well as five WestVirginia branches.

21 S.Y. Bancorp (SYBT) Louisville

David Heintzmansyb.com

$331.38 million(18)

$90,590,000$23,460,000

S.Y. Bancorp is the holding companyof Stock Yards Bank & Trust, with locations in Greater Louisville, andsouthern and central Indiana.

22Delta Natural Gas Co. Inc. (DGAS)Winchester

Glenn Jenningsdeltagas.com

$104.71 million(21)

$80,950,000$6,580,000

Delta Natural Gas distributes and transports natural gas in central andsoutheastern Kentucky. It owns 2,500miles of natural gas lines and serves37,000 retail customers.

23 Farmers Capital Bank(FFKT) Frankfort

Lloyd D. Hillard Jr.farmerscapital.com

$50.56 million(24)

$71,680,000$5,060,000

Farmers Capital Bank is a financialholding company, operating 27 bankslocations in 23 communities through-out Central and Northern Kentucky.

24 Bank of Kentucky (BKYF)Crestview Hills

Robert W. Zappbankofkyhb.com

$175.92 million(20)

$60,850,000-$11,330,000

The Bank of Kentucky is a holdingcompany with 28 branch and ATMlocations in northern Kentucky.

25Investors HeritageCapital Corp. (IHRC.OB)Frankfort

Harry Waterfield IIinvestorsheritage.com

$20.72 million(25)

$59,250,000$2,440,000

Investors Heritage Capital sells and ad-ministers insurance and annuity prod-ucts, credit insurance and mortgageredemption products, commercial andresidential mortgage products.

COMPANY (TICKER)LOCATION

CEOWEB SITE

MARKET CAPITALIZATION(RANK)

TOTAL REVENUE (FY 10)NET INCOME (FY 10)

COMMENTS


ON Memorial Day weekend, thehills near Harrodsburg willresound with music. Not the

voiced, sure notes of former Shaker wor -ship tunes, but classical treasures of suchbeloved composers as Mozart and Brahmsplayed by internationally-renown per-formers from the Chamber Music Societyof Lincoln Center in New York City.

For the fifth consecutive year, theChamber Music Festival of the Bluegrasswill fill a spring Saturday and Sunday withexquisite music performed at a NationalHistoric Landmark steeped in a far differ-ent, yet equally impressive, tradition.

Less than 30 miles from Lexington,Shaker Village of Pleasant Hill is the coun-try’s largest restored Shaker community,with 34 restored buildings and 3,000 acresof preserved farmland tucked into CentralKentucky’s rolling terrain. Nineteenth-century America’s best-known communalsociety, the Shakers established the settle-ment in 1805. Its population grew to apeak of 500 in the 1800s, then dwindleduntil closing for good in 1910.

So-called because they embraced wor-ship through wildly gyrating dance move-ments, the Shakers believed no manmademusical instrument could improve onman’s greatest God-given one, the humanvoice. Thus, more than 20,000 songs werewritten by Shakers and all were sung acapella (without instruments).

These days, the rafters of the 1820Meeting House reverberate seasonallywith glorious solo vocal performances ofShaker music. And in a modern twist,man-made instruments will fill thatsame historic structure, built specificallyto enhance the sound of acoustic music,with exquisite chamber music as one oftwo venues for the Chamber Music Fes-tival of the Bluegrass.

An intimate series, the festival willfeature four concerts. Two morning per-formances take place in the MeetingHouse, while two afternoon engage-ments are in the Meadow View Barn.Restored specifically for the event, theopen-air tobacco barn is perched atop ahill surrounded by hand-laid rock wallsand is acoustically top notch.

All participating performers arehighly acclaimed: the Orion StringQuartet, pianist Inon Barnatan, clar-inetist Jose-Franch-Ballester and violin-ist Ida Kafavian. All were selected bycellist David Finckel and pianist WuHan, husband-and-wife artistic direc-tors of the Chamber Music Society ofLincoln Center (CMS), a multigenera-tional selection of expert musicians.The pair has served as the Kentuckyweekend festival’s artistic directorssince its inception in 2007.

During afternoon lectures bothdays, composer Patrick Castillo will give

a talk that provides structural analysisand historic content for the musicalworks that follow.

“According to Lincoln Center, theirmusicians all want to come here,” saidDavid Larson, director of strategic devel-opment for Shaker Village of PleasantHill. “They love Shaker Village and theenthusiastic Central Kentucky audi-ences and performing in the tobaccobarn. David Finckel and Wu Han areextremely interested in outreach, andthey feel this festival could grow into aninternationally known event.”

Ranked among the world’s mostesteemed and influential classical musi-cians today, the couple travel the globeperforming a repertoire that spansnearly all available classic and contem-porary literature for cello and piano.They taught alongside the late IsaacStern, have established chamber musictraining workshops for young artists inKorea and Taiwan, and are foundersand directors of Music at Menlo, a festi-val and institute in Silicon V alley.Though Finckel will not attend theShaker Village event this year, Wu Hanwill fly in for a special Friday night per -formance for festival patrons.

The Chamber Music Festival of theBluegrass was the brainchild of Finckeland George Foreman, former directorof the Norton Center for the Arts atCentre College in Danville and creatorof the town’s wildly popular GreatAmerican Brass Band Festival. Until2011, the Norton Center has managedthe event; this year, Shaker Villagetakes the reins.

“It’s a very positive move for us,” Larsonexplained. “The festival attracts scores ofpeople who may never have visited here orwho haven’t been here in awhile andbecome reacquainted with Shaker Village.We were chosen as the initial venuebecause it’s a gorgeous place. We have3,000 acres and lots of barns. I think wewere kind of a natural.”


EXPLORING KENTUCKY

Lincoln Center Comes to the CountryAnnual chamber music festival brings acclaimed musicians to Pleasant Hill

BY KATHERINE TANDY BROWN

Musicians from the Chamber Music Society of Lincoln Center in New York will perform at Shaker Villageover the Memorial Day weekend.

Chamber Music Festival of the BluegrassShaker Village at Pleasant Hill

May 28-29

Morning concerts $20; afternoon $38;patron $500

For festival tickets and info, meal andlodging reservations (800) 734-5611x1545

shakervillageky.org/events_calendar/

David Finckel’s blog about the 2010Chamber Music Festival of the Bluegrassartistled.wordpress.com, Archives, June 2010

Save the dateChamber Music Festival of LexingtonAug. 19-21chambermusiclex.com


Francke concurs. “The beauty andtranquility of the Shaker Village ofPleasant Hill provides the ideal atmos-phere for a chamber music festival,” hesaid. “The morning concerts in theMeeting House, instituted in the secondyear, have grown in attendance to fullcapacity, and the afternoon concerts inthe barn have been sold out since thefestival’s inception.”

Capacity seating in the former venue is200, with 400 to 500 in the latter, wheresunshine paints golden interior stripes andany errant breeze falls captive.

“Where else would you be able tohear music of this caliber in a barn?”says Aimee Darnell, publicist for ShakerVillage. “Music aficionados havedescribed it as a sublime experience.”

After feeding their souls with music,festival guests can enjoy after-concertbuffet suppers on the lawn and in theTrustees’ Office Dining Room (reserva-tions required), or may enjoy picniclunches and suppers under the maplesat the West Family Dwelling (no reserva-tions needed). �

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

Impressionist Landscapes: Monet to Sargent2035 S. 3rd St., Speed Art Museum, LouisvilleFeb. 4-May 22(502) 634-2700speedmuseum.org

This exquisite exhibit includes many examplesof mid-19th through early 20th-century Frenchand American landscapes. Admission is $5 formuseum members, $10 for non-members.

Kentucky Guild of Artists and Craftsmen Spring Show 1021 Wilkinson PlaceSloan Convention Center, Bowling GreenMay 21-22, 10 a.m.-5 p.m.(859) 986-3192kyguild.org

Now in its 50th year, the Spring Show is anopportunity for art lovers and collectors toperuse and purchase the highest quality hand-made products. As a bonus, many artists willdemonstrate their craft.

Mountain Laurel Festival1050 State Park RoadPine Mountain State Resort Park, PinevilleMay 26-29parks.ky.gov/findparks/pm/

Celebrate spring at the annual Mountain Lau-

rel Festival. The park is the host site for theGovernor’s Luncheon and Queen’s Corona-tion on Saturday and the Queen’s Breakfast onSunday. Events in downtown Pikeville includeconcerts, dances, a fun run, a golf tournament,carnival and more.

Great American Brass Band FestivalDowntown Danville and Center College, DanvilleJune 9 -12, 10 a.m.-11:45 [email protected]

The Great American Brass Band Festival is anannual three-day, old-time brass band con-cert in the park featuring world-renownbands. Other events include a hot air balloonrace, a band history conference and a Chau-tauqua tea.

Opening Night of the Stephen Foster StoryDrama Drive, J. Dan Talbott AmphitheatreBardstownJune 11(800) 626-1563stephenfoster.com

Toast this beloved musical’s 53rd season at aparty on the grounds of My Old KentuckyHome State Park. For dinner and show, tick-ets are $50; show only, $25.

Upcoming Events across Kentucky


DURING the second half of the19th century, the world’s biggesteconomies endured a series of

brutal recessions. At the time, mostforms of reliable economic knowledgewere organized within feudal, patrimo-nial and tribal relationships. If youwanted to know who owned land orowed a debt, it was a fact recordedlocally – and most likely shielded fromoutsiders. At the same time, the worldwas expanding. Travel between citiesand countries became more commonand global trade increased. The resultwas a huge rift between the old, frag-mented social order and the needs of arising, globalizing market economy.

To prevent the breakdown of indus-trial and commercial progress, hundredsof creative reformers concluded that theworld needed a shared set of facts.Knowledge had to be gathered, organ-ized, standardized, recorded, continuallyupdated and easily accessible.

The result was the invention of thefirst massive “public memory systems” torecord and classify – in rule-bound, cer-tified, and public registries, titles, bal-ance sheets and statements of account –all the relevant knowledge available,whether intangible (stocks, commercialpaper, deeds, contracts, patents, compa-nies and promissory notes) or tangible(land, buildings, boats, machines, etc.).Knowing who owned and owed, and fix-ing that information in public records,made it possible for investors to infervalue, take risks and track results. Thefinal product was a revolutionary form ofknowledge: “economic facts.”

Over the past 20 years, Americansand Europeans have quietly gone aboutdestroying these facts. The ver y systemsthat could have provided markets andgovernments with the means to under -stand the global financial crisis – and toprevent another one – are being eroded.Governments have allowed shadow mar-

kets to develop and reach a size beyondcomprehension. Mortgages have beengranted and recorded with such inatten-tion homeowners and banks often don’tknow and can’t prove who owns homes.In a few short decades, the W est under-cut 150 years of legal reforms that madethe global economy possible.

The importance of economic factsmay not be obvious to Americans. With-out standardization, the values of assetsand relationships are so variable thatthey can’t be used to guarantee credit,to generate mortgages and bundle theminto securities, to represent them inshares to raise capital.

When then-Treasury Secretary HenryPaulson initiated his Troubled AssetRelief Program (TARP) in September2008, I assumed the objective was torestore trust in the market by identifyingand weeding out the “troubled assets”held by the world’s financial institutions.Three weeks later, when I asked Ameri-can friends why Paulson had switchedstrategies and was injecting hundreds ofbillions of dollars into struggling finan-cial institutions, I was told that therewere so many idiosyncratic types ofpaper scattered around the world thatno one had any clear idea of how manythere were, where they were, how tovalue them or who was holding the risk.These securities had slipped outside therecorded memory systems and were nolonger easy to connect to the assets fromwhich they had originally been derived.Oh, and their notional value was some-where between $600 trillion and $700trillion dollars, 10 times the annual pro-duction of the entire world.

Three years later there’s still plentyto be concerned about. Governmentshave worked to enact major financialand regulatory reforms, such as the WallStreet Reform and Consumer Protec-tion Act ushered through Congress in2010 by former Sen. Chris Dodd, D-Conn., and Rep. Barney Frank, D-Mass.Dodd-Frank has sought to move deriva-

tives into clearinghouses where moredata about them can be collected. It’s astep in the right direction. But if youbelieve in the value of public memor yand economic facts, the reforms leave anumber of problems outstanding.

1) Mortgage Bundling: Banks thathave tried to foreclose on nonper form-ing mortgages have discovered that inmany cases they can’t collect the debts.Why? Because some companies thatpooled, packaged and converted thosemortgages into liquid securities had dis-pensed with the usual procedures torecord mortgage owners and passed theproperty to a shell company calledMERS, which pretended to own themortgages. The intent was to streamlinewhat many real estate experts recognizeare outdated, disaggregated and cum-bersome processes. The result, however,is that today, says professor ChristopherL. Peterson of the University of Utah,“about 60 percent of the U.S.’s residen-tial mortgages are now recorded in thename of MERS rather than the bank,trust or company that actually has ameaningful economic interest in therepayment of the debt. For the first timein the nation’s history, there is nolonger an authoritative public record ofwho owns land in each county.”

2) Default Swaps: The leverage thatcreated so many bad mortgages and thederivatives to help finance them wouldnot have been possible without “creditdefault swaps” (CDSs) – ingenious deriv-ative instruments that allowed lenders toinsure their risks against defaults andpass them on to others. In principle,widening the market should be a goodthing. But these risks have slipped out-side the public memory systems, makingit very difficult to know who ultimatelybears the risk and where it is.

3) Exemptions: When the recessionsent the prices of financial holdings spi-raling downward, some banks and fin-anciers were exempted from the U.S.’ slong-established “mark-to-market”accounting standards, which forcesfirms to report the value of their assetsat current market prices. It’s reasonableto establish value other than throughmarket prices, according to proponents,if the market is unusually depressed. Butsuch a privilege creates the ability todestroy facts by hiding losses, increasingthe price of assets to levels at which noone will buy.

4) Off-Balance-Sheet Account-ing: The modern balance sheet can betraced to Luca Pacioli, the 15th centurymathematician and father of account-ing. In the 1990s, governments began

Hernando de SotoHernando de Soto, a renowned Peruvian economist, won theCATO Institute’s Milton Friedman Prize for advancing libertyin 2004. In 1980, de Soto founded the Institute for Libertyand Democracy, where he and his colleagues developed andpromoted a simple idea with radical implications: poverty inPeru and other poor countries is largely caused by the lack offormal property rights and the lack of the rule of law. He pub-lished two groundbreaking books making this argument, andhe has advised leaders of poor countries around the world onthe steps needed to lift the poor out of poverty.

Bloomberg Businessweek published an article by de Sotoin its May 2 issue. Here are excerpts. (The full article is avail-able at businessweek.com.)


PASSING LANE

The Destruction of Economic Facts

BY HERNANDO DE SOTO



destroying Pacioli’s legacy by allowingcompanies in financial difficulty to passfacts concerning debts from their pub-lic balance sheet to a less visible mem-ory system called a special purposeentity (SPE) (or to sweep debt infor -mation into the balance sheet’s foot-notes in words so obtuse that thestatements cease being factual). Such“off-balance-sheet accounting” makescompanies appear more profitable,despite their debts. By the time Enronclosed its doors in 2002, it had createdsome 3,500 SPEs.

5) Government Use of Swaps andRepo Markets: Greece is the most notorious example of a country usingderivative-based currency swaps to swellthe value of government assets by push-ing national debts into the future. Gustavo Piga, a professor of economicsat the University of Rome Tor Vergata,revealed this fact-destroying practice: Acountry issues a debt in one currency –dollars, let’s say – at fictional exchangerates that it swaps for a euro debt for a certain period of time. Thus it gets an inflow of money that makes theledger look positive because the actualdebt appears as a swap that has produced income.

6) Rating Agencies: Originally cre-ated to get and communicate the factsregarding the trustworthiness of busi-nesses through a ratings scale, ratingsagencies were an innovative way to getan abbreviated picture about a givenbusiness. But their reputation sufferedwhen highly rated companies barely sur-vived the outbreak of the recession orhad to be rescued.

If we can agree that the recessionwasn’t about bubbles but about theorganization of knowledge, we canmove on to restoring the systems thatallowed the global economy to expandmore in the last 60 years than in the pre-vious 2,000.

We are now staring at a legal and polit-ical challenge. A legal challenge becauseAmerican and European governmentsallowed economic activity to cross the linefrom the rule-bound system of propertyrights, where facts can be established,into an anarchic legal space, where arbi-trary interests can trump facts and paperswirls out of control.

Markets were never intended to be anarchic: It has always been government’s role to police standards,weights and measures, and records,and not condone legalized sleight ofhand in the shadows of the informaleconomy. To understand and repairone of mankind’s greatest achieve-ments – the creation of economic factsthrough public memory – is the stuff ofnation-builders.

Big Ass Fans President Is ‘Economy Hero’

INC. magazine named Carey Smith, president/CEO of Lex-ington-based Big Ass Fans, its national Economy Hero, select-ing him over 249 other applicants. Inc. and partner SAP

created the competitive award to highlight companies and theirCEOs that are helping the country get out of the recession by pro-viding jobs, innovative work and new business models.

Smith was selected for the top honor and given a prize pack-age worth $250,000 for a continuous commitment to creatingjobs and ground-breaking work. The economy has affected BigAss Fans like most companies in the countr y, but it did notimplement layoffs or cancel existing benefit programs. Instead,the company looked for new markets and customers and devel-oped new products for its long-term business success.

“I am honored to be named this year’ s Economy Hero,”Smith said. “Our company has continued to grow in spite of the recession due to ourconstant investment in engineering to develop new and innovative products that pro-vide energy-efficient air movement solutions for a wide range of applications.”

Big Ass Fans (bigassfans.com) is the leading manufacturer of fans for large industrial,agricultural, commercial and residential settings. Its units range from 6 feet to 24 feet indiameter and use low horsepower motors to generate energy-efficient air movement.

Gift Funds WKU Alumni Center Library

BOB and Martha Jean Owsley of Cecilia, Ky ., are supporting the AugensteinAlumni Center at Western Kentucky University through a gift of $100,000 tofund the Bob and Martha Jean Owsley Library in the new center.

Donald Smith, executive director of the WKU Alumni Association, said he is grate-ful for the support of the Owsleys and the other nearly 200 donors who have con-tributed almost $3.4 million so far to the $5 million Augenstein Alumni Centerproject. Groundbreaking is scheduled for July 15.

Bob Owsley is president of First Cecilian Bancorp Inc., and chairman of the board ofthe Cecilian Bank. He attended Bowling Green Business University – predecessor ofWKU’s Gordon Ford College of Business – for three semesters before he was drafted intothe U.S. Army. He returned to school in 1956 and completed his education. Owsley hasbeen with the bank since Sept. 2, 1958, just days after he graduated from BU.

Martha Owsley completed the BU’s secretarial program in 1951. She and BobOwsley married on June 13, 1954, while she was working as a secretary at Fort KnoxHeadquarters.

Bob Owsley calls his student experience a “wonderful thing,” as he knew all his fel-low BUers, from his fellow students right up to J. Murray Hill, then-president of BU,who was from Owsley’s hometown of Rineyville, Ky.

“The school was small enough to get our arms around ever yone,” he said. “Ourinstructors were all part-time business people from downtown Bowling Green. Whenthey said something, I knew they had experienced it.”

Carey Smith,President/CEOof Big Ass Fans

Keeneland: Not Getting Older, Getting Better

CONGRATULATIONS to Keeneland on a strong 75thanniversary spring racing meet that posted some of itsbest attendance and handle numbers ever despite a

record 13 inches of rain.“If it were possible to chart adverse weather with all the race

meet statistics, this would be one of the top Keeneland meetsever,” said Keeneland President and CEO Nick Nicholson. “Iwant to commend all involved, including our entire team, thehorsemen and even both tracks themselves.”

Give some credit to a decision five years ago to install a syn-thetic all-weather racing surface that owners and trainersfound hospitable and to engaging fans with new social mediaoutreach that helped boost attendance past last year when theweather was gorgeous.

Total meet attendance was 241,684 – the third-highest spring meet ever – com-pared to 238,282 last spring. The on-track handle was up 3 percent to $18.5 million,with the all-sources handle up 9 percent to $117.2 million.

Nick Nicholson,President/CEOof Keeneland



KENTUCKY PEOPLE

Eastern Kentucky University student Andrew Pennington, center, was the winnerof the 2011 Excellence in Entrepreneurship Collegiate Business Concept Chal-lenge, a business competition that invites students from southern and easternKentucky universities and colleges to submit business ideas to compete for cashawards and professional consultations. Pennington’s submission featured hisnewly launched company, Contractor Yard Sale, an online classified databasefor construction contractors and suppliers to buy and sell surplus and salvagebuilding materials. Pictured here with Pennington are competition judges (fromleft) Jim Carroll, BIG Center director for Kentucky Highlands Investment Corp.;Larry Combs, director of business services for The Center for Rural Develop-ment; Linda Grider, director of community education and outreach for LindseyWilson College; and Stephen Taylor, development director for Kentucky High-lands Investment Corp.

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LEXINGTON: STANTEC RECEIVES AWARDFOR WORK ON KENTUCKY RIVER DAM

Stantec, a Lexington engineering firm, was recently recognized by the AmericanCouncil of Engineering Companies (ACEC) for its design solution to replace acentury-old dam on the Kentucky River. The project earlier earned Stantec agrand award at the state level from ACEC of Kentucky. Accepting the nationalaward from ACEC Engineering Excellence Awards Chairman Herb Berg (left)was Scott Murray, Stantec’s senior vice president and U.S. East Regional leader.

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SOMERSET: FOUNDING BOARD RETURNSTO CELEBRATE SKED ANNIVERSARY

Hundreds of supporters from across southeast Kentucky gathered at The Centerfor Rural Development last month to celebrate the 25th anniversary of the South-east Kentucky Economic Development Corp. Fifth District Congressman HalRogers, who created SKED in 1986, was the keynote speaker for the event. In at-tendance were SKED’s founding board of directors (from left) Bob Mitchell,Paul Dunnington, Cy Waddle, Hal Rogers, Ray Moncrief, Rev. John Chowningand Michael Hayes.

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GEORGETOWN: CENTRAL BAPTIST OPENSNEW SCOTT COUNTY DIAGNOSTIC CENTER

RICHMOND: EKU STUDENT WINS 2011COLLEGIATE BUSINESS CHALLENGE

Central Baptist Hospital has opened a new facility in Georgetown to help meetthe needs of Scott County residents. The 9,000-s.f. Central Baptist Outpatient Di-agnostic Center offers CT, ultrasound and X-ray services, as well as breast imag-ing and lab services. Central Baptist recorded nearly 8,700 visits from ScottCounty residents over the course of 2010. Attending the ribbon-cutting ceremonywere (left to right) Ted Collins, vice president, fund development and propertymanagement; Patty Mason, vice president of planning, marketing and businessdevelopment; Everett Varney, Georgetown mayor; William Sisson, Central Bap-tist Hospital president & CEO; George Lusby, Scott County judge-executive; andDallas Blankenship, Georgetown/Scott County Chamber of Commerce president.

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