Kentucky Economic Development Guide: 2009

KENTUCKY

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ECONOMIC DEVELOPMENT GUIDE kyedg.com

Still in High Gear Auto sector powers up new investment

Fueling Innovation State takes lead in green energy

What’s s e Online Experience more of Kentucky in words, pictures and video at kyedg.com.

The World Comes Calling

PRESENTED BY THE KENTUCKY CABINET FOR ECONOMIC DEVELOPMENT | 2009

contents

KENTUCKY

ECONOMIC DEVELOPMENT GUIDE

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BUSINESS ALMANAC

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OVERVIEW

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BUSINESS CLIMATE

Unbridled Ambition

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Diverse industry sectors are a major hallmark of Kentucky’s growing business population.

Strength in Numbers

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EDUCATION

Property Rights

36

Expanding intellectual capital builds the business base of the Commonwealth.

48

A Winning Formula

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From Classroom to Community

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TR ANSPORTATION & LOGISTICS

What Brown Does for Bluegrass

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UPS expansion in Louisville delivers a truckload of new business for Kentucky.

Opportunity Docks

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HEALTH CARE & BIOTECHNOLOGY

A Shot in the Arm

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Research initiatives spawn innovation in the health-care and biotech sectors.

Nucleus of an Idea

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LIVABILITY

My New Kentucky Home

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The Bluegrass State’s ease of living beckons business and families.

56 KENTUCKY ECONOMIC DEVELOPMENT GUIDE

Golden Opportunity

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Recipe for Success

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On the Cover PHOTO BY ANTONY BOSHIER The Muhammad Ali Center in Louisville

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contents ENERGY

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Fueling Innovation

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The Bluegrass State takes a lead role in green-energy technology.

Seed Money Yields Success

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GLOBAL BUSINESS

The World Comes Calling

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Kentucky sets a fast pace for attracting investment from foreign companies.

Kentucky’s Man in Japan

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TECHNOLOGY

94

Solid State

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Kentucky’s efforts to build research enterprise create a burgeoning tech sector.

Resource to Innovation

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AUTOMOTIVE

Still in High Gear

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The auto sector is alive and well, and revving up investment in Kentucky.

MANUFACTURING

Made in Kentucky

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The state has a broad industrial base that spans across a range of industries.

Primed for Development

93

RECREATION

Calling All Nature Lovers

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Heaven, nirvana, paradise – by whatever the name, Kentucky is the ultimate recreation destination.

Horse Play

101

TOURISM

Plowing New Opportunity

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Agritourism is taking root as a bumper crop for economic development.

102 KENTUCKY ECONOMIC DEVELOPMENT GUIDE

Cultured Pearls

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GALLERY

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ECONOMIC PROFILE

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KENTUCKY

ECONOMIC DEVELOPMENT GUIDE 2009 EDITION, VOLUME 1

CU S TO M M AG A Z INE M ED I A

MANAGING EDITOR BILL McMEEKIN COPY EDITOR JOYCE CARUTHERS ASSOCIATE EDITORS LISA BATTLES, SUSAN CHAPPELL, JESSY YANCEY ONLINE CONTENT MANAGER MATT BIGELOW STAFF WRITERS CAROL COWAN, KEVIN LITWIN CONTRIBUTING WRITERS PAMELA COYLE, SHARON H. FITZGERALD, ANNE GILLEM, ROY MOORE, JOE MORRIS, CLAIRE RATLIFF-SEARS DATA MANAGER CHANDRA BRADSHAW INTEGRATED MEDIA MANAGERS BLAKE PETTIT, CLAY PERRY SALES SUPPORT MANAGER SARA SARTIN SENIOR PHOTOGRAPHER BRIAN MCCORD STAFF PHOTOGRAPHERS JEFF ADKINS, TODD BENNETT, ANTONY BOSHIER, IAN CURCIO, J. KYLE KEENER PHOTOGRAPHY ASSISTANT ANNE WHITLOW CREATIVE DIRECTOR KEITH HARRIS WEB DEVELOPMENT DIRECTOR BRIAN SMITH ASSOCIATE PRODUCTION DIRECTOR CHRISTINA CARDEN PRODUCTION PROJECT MANAGERS MELISSA BRACEWELL, KATIE MIDDENDORF, JILL WYATT SENIOR GRAPHIC DESIGNERS LAURA GALLAGHER, KRIS SEXTON, CANDICE SWEET, VIKKI WILLIAMS GRAPHIC DESIGN ERICA HINES, ALISON HUNTER, JESSICA MANNER, JANINE MARYLAND, AMY NELSON, MARCUS SNYDER WEB DESIGN DIRECTOR FRANCO SCARAMUZZA WEB PROJECT MANAGERS ANDY HARTLEY, YAMEL RUIZ WEB DESIGN CARL SCHULZ WEB PRODUCTION JENNIFER GRAVES COLOR IMAGING TECHNICIAN TWILA ALLEN AD TRAFFIC JESSICA CHILDS, MARCIA MILLAR, PATRICIA MOISAN, RAVEN PETTY CHAIRMAN GREG THURMAN PRESIDENT/PUBLISHER BOB SCHWARTZMAN EXECUTIVE VICE PRESIDENT RAY LANGEN SR. V.P./CLIENT DEVELOPMENT JEFF HEEFNER SR. V.P./SALES CARLA H. THURMAN SR. V.P./OPERATIONS CASEY E. HESTER V.P./SALES HERB HARPER V.P./SALES TODD POTTER V.P./VISUAL CONTENT MARK FORESTER V.P./TRAVEL PUBLISHING SYBIL STEWART V.P./EDITORIAL DIRECTOR TEREE CARUTHERS MANAGING EDITOR/COMMUNITY KIM MADLOM MANAGING EDITOR/CUSTOM KIM NEWSOM PRODUCTION DIRECTOR NATASHA LORENS PHOTOGRAPHY DIRECTOR JEFFREY S. OTTO CONTROLLER CHRIS DUDLEY ACCOUNTING MORIAH DOMBY, DIANA GUZMAN, MARIA MCFARLAND, LISA OWENS RECRUITING/TRAINING DIRECTOR SUZY WALDRIP DISTRIBUTION DIRECTOR GARY SMITH INFORMATION TECHNOLOGY DIRECTOR YANCEY TURTURICE NETWORK ADMINISTRATOR JAMES SCOLLARD IT SERVICE TECHNICIAN RYAN SWEENEY HUMAN RESOURCES MANAGER PEGGY BLAKE CUSTOM/TRAVEL SALES SUPPORT RACHAEL GOLDSBERRY SALES/MARKETING COORDINATOR RACHEL MATHEIS EXECUTIVE SECRETARY/SALES SUPPORT KRISTY DUNCAN OFFICE MANAGER SHELLY GRISSOM RECEPTIONIST LINDA BISHOP

Kentucky Economic Development Guide is published annually by Journal Communications Inc. and is distributed through the Kentucky Cabinet for Economic Development. For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by e-mail at info@jnlcom.com.

FOR MORE INFORMATION, CONTACT: Kentucky Cabinet for Economic Development Old Capitol Annex, 300 W. Broadway Frankfort, KY 40601 Phone: (502) 564-7670 • Fax: (502) 564-1535 www.thinkkentucky.com VISIT KENTUCKY ECONOMIC DEVELOPMENT GUIDE ONLINE AT KYEDG.COM ©Copyright 2009 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent.

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business almanac

HATS OFF TO THE DERBY It’s hard to think about the Bluegrass State without thinking of the Kentucky Derby.

The state has six racetracks, but perhaps none in the world more famous than Churchill Downs in Louisville, where the “most exciting two minutes in sports” is held the first Saturday in May. The Derby, which was inaugurated in 1875, is a stakes race for 3-year-old thoroughbred horses on a 1 1/4-mile track.

But that two minutes caps the monthlong Kentucky Derby Festival, a series of some 70 events and celebrations that draws more than 1.5 million visitors annually and creates an economic impact of $90 million.

Go to www.kdf.org for more on the Kentucky Derby Festival.

HONEST, IT’S ABE Kentucky lays claim as the birth state of the 16th U.S. president and is in the midst of a celebration of the 200th anniversary of Abraham Lincoln’s birth.

The state is home to a number of Lincoln-related historic attractions, including the Abraham Lincoln Birthplace National Historic Site in Hodgenville, which includes the Boyhood Home Unit at Knob Creek Farm, home to Lincoln during his formative years.

Other Lincoln-related points of interest include the family home of his wife, Mary Todd Lincoln, in Lexington, and Lincoln Homestead State Park, which features the original home of Lincoln’s mother, as well as replicas of the 1782 cabin and blacksmith shop where his father was reared and learned his trade.

Go to www.kylincolntrail.com for more on the Lincoln Heritage Trail.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

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business almanac

WHERE BOURBON WAS BORN Kentucky lays claim as the birthplace of bourbon, and the Kentucky Bourbon Trail connects the state’s distilleries, where the art of bourbon-making is still practiced much as it was 200 years ago.

The trail includes seven distilleries that produce bourbons such as Maker’s Mark, Jim Beam, Buffalo Trace and Woodford Reserve that are known the world over.

Package tours and excursions are available.

BRIGHT IDEAS

Each fall, the Kentucky Bourbon Festival in Bardstown offers five days of food, entertainment, historical tours, black-tie galas and, of course, bourbon. The 2009 event takes place from Sept. 15-20. Go to www.kytourism.com/ thingstodo/bourbon.htm for more.

Idea State U. may not have a basketball team, but it has a lot of bright minds.

Idea State U., run by the Kentucky Cabinet for Economic Development, is a statewide business-concept and business-plan competition designed to encourage innovation and entrepreneurship at Kentucky’s eight four-year state universities.

Winning teams are those judged as having the best new business concepts and more formal business plans for their proposed ventures. The entries have included concepts and plans for a patented medical device used in hospital delivery rooms to monitor the stages of labor, a system that automatically prints custom marketing messages on retailers’ shipping packages, and software that enables earlier detection of lung cancer.

For more, go to www.IdeaStateU.com.

HOMEGROWN GOODNESS Kentucky’s Department of Agriculture operates the Kentucky Proud program, which markets Kentucky-made food products and is a resource for finding Kentucky food producers and restaurants, retailers and wholesalers that sell Kentucky-made items.

The Kentucky Proud Country Store offers a variety of food and beverage products for sale, including meat, baked goods, produce, dairy products, wine, beer and distilled spirits, as well as household supplies, crafts, candles, pet products and other merchandise.

For more, go to www.kyagr.com/kyproud/index.htm.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

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business almanac

SHOWCA SHOWCASING KENTUCKY KENTUC CRAFTS Good location often oft means good that’s the case for business. And tha Center at the Kentucky Artisan Arti Berea, conveniently convenient located just off Interstate 75. It I has welcomed more tthan 1 million opening in 2003. visitors since open The large stone building b and crafts from showcases arts an the region. Items for sale include books by Kentucky of authors, paintings paint landscapes, Kentucky land sauces and barbecue sau honeysuckle baskets.

There’s also a restaurant specializing in local cuisine. Che Check out the offerings of the Kentucky Center at Artisan Cente imagesmadisonco.com. imagesmadis

SEE MORE ONLINE Check out the Kentucky Artisan Center at kyedg.com.

WHERE GOOD IDEAS GROW IdeaFestival is an event that attracts leading and highly diverse thinkers from across the nation and around the globe to explore and celebrate innovation, imagination and cutting-edge ideas in areas such as business, technology, science, education and the arts.

The event, which started in Lexington in 2000 and moved to Louisville in 2006, is billed as a “nonlinear” program designed to stretch people’s horizons and promote breakthrough thinking.

IdeaFestival features a number of thought-provoking speakers, satellite events including food festivals and a film series, and the presentation of the Curry Stone Design Prize, a $100,000 international prize administered by the University of Kentucky College of Design. The 2009 event is scheduled for Sept. 24-26. Go to www.ideafestival.com for more.

THEY’VE GOT THEIR HEADS IN THE CLOUDS Kentucky Space is a nonprofit consortium of universities, public and private organizations that promotes space-related education, research, small-satellite design and launch operations.

One of the organization’s primary goals is to design and lead innovative space missions within realistic budgets and objectives. The organization’s first effort was KySat, an initiative to create cost-efficient small satellites.

Kentucky Space has launched an ambitious program that includes an array of flight opportunities, including near space, sub-orbital, orbital and deep space missions and partnerships with organizations, space agencies and commercial organizations.

P H OTO C O U R T E S Y O F N A S A

Go to www.kentuckyspace.com for more.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

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business almanac

A CHAMPION MUSEUM Kentucky is famous as the birthplace of a number of arts, music, culture and sports figures from author and poet Robert Penn Warren to jazz great Lionel Hampton to actor Johnny Depp.

Few, though, can eclipse Louisville native Muhammad Ali, not only for his success as an Olympic and professional boxing champion, but as a leader for social justice, a humanitarian and citizen of the world.

The Muhammad Ali Center in downtown Louisville is a cultural attraction and an international education center that carries on the ideals of its namesake and includes innovative exhibits as well as educational and public programming themed around the prevailing core values of Aliâ&#x20AC;&#x2122;s life: respect, confidence, conviction, dedication, giving and spirituality, For more on the center and Ali, go to www.alicenter.org.

A NEW GOLD STANDARD Major changes are under way at Fort Knox, long known as the keeper of the U.S. gold reserve.

As part of its Base Realignment and Closing initiative, the Army is building a 900,000-square-foot Human Resource Center of Excellence complex at the fort, a $206 million project that will house more than 4,200 military, civilian and contractor employees by summer 2010.

While the base saw the departure of some of its components, it gained a net of 3,500 military and civilian jobs in the transition.

The new complex will house Human Resources Command, based primarily in Alexandria, Va., and Army Accessions Command, which handles recruiting for the Army. For more on the base, go to www.oneknox.com.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

LOOK, UP IN THE SKY Lebanon-Springfield Airport hosts the annual Kentucky Jets popular remote-control jet show, with pilots coming from all over the United States as well as Canada, France and Argentina to test their skills.

Jets Over Kentucky made its debut in 2006, drawing more than 2,000 spectators and participants. The event grew to nearly 3,500 the following year and was named by the Kentucky Tourism Council as one of 2007â&#x20AC;&#x2122;s top 10 summer events. The 2009 event is slated for July 5-12.

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F

ulton County/Hickman County Economic Development Partnership is a very industry-friendly organization located in West Kentucky. We are very unique; our two-county area includes a slack water port on the Mississippi River, with an extensive rail connection, and the Julian Carroll-Purchase Parkway (Future I-69 corridor).

The mainline of the Canadian National Railroad is within a few yards of most our sites. We have an available workforce of over 100,000 within commuting distance and great utilities.

Forty-five percent of the U.S. population lives within 600 miles of western Kentucky. The completion of I-69 will connect the Canadian border with Mexico. Our future is bright and the time is right. With the best incentives the State of Kentucky offers, we can provide any prospective industry a great location for their next expansion or relocation.

Fulton County-Hickman County Economic Development Partnership P.O. Box 1413 Fulton, KY 42041 Office: (270) 472-2125 Cell: (270) 672-3716 Fax: (270) 472-1944 Web site: www.westkyeconomic.com E-mail: fultoneconomic@bellsouth.net

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HIGHWAY DISTANCE TO SELECTED MAJOR MARKETS Atlanta, GA Baltimore, MD Birmingham, AL Boston, MA Buffalo, NY Charlotte, NC Chicago, IL Cincinnati, OH Cleveland, OH Columbus, OH

412 826 361 1200 785 579 416 348 599 455

Dallas, TX Detroit, MI Houston, TX Indianapolis, IN Jacksonville, FL Kansas City, MO Lexington, KY Louisville, KY Memphis, TN Minneapolis, MN

600 594 725 349 762 436 282 245 112 796

Nashville, TN New Orleans, LA New York, NY Norfolk, VA Oklahoma City, OK Omaha, NE Philadelphia, PA Pittsburgh, PA St. Louis, MO Wichita, KS

170 521 986 874 614 614 920 636 218 637

PAID ADVERTISEMENT

overview

EXPERIENCE THE UNBRIDLED SPIRIT A message from Gov. Steven L. Beshear The Commonwealth of Kentucky Welcome to the inaugural issue of the Kentucky Economic Development Guide. I believe as you browse this magazine you will be pleased with what you learn. You’ll find out why Kentucky is a leader in attracting and developing businesses.

Known as the horse capital of the world, Kentucky is the birthplace of Abraham Lincoln and world-famous bourbon. It’s a place where the sun shines bright and the people have an unbridled spirit. With its diverse landscape, the Commonwealth can claim to many superlatives.

While the grass may be blue, Kentucky businesses are seeing green. Called the new “Auto Alley” for its strong vehicle manufacturing presence, the Commonwealth now also offers a burgeoning service sector and a rash of high-tech opportunities, including a National Battery Manufacturing Research and Development Center.

Kentucky has earned national and international recognition for its hospitable business climate and profitable investment opportunities, including several benchmark citings by Site Selection magazine – most recently ranking ninth nationally with the 2008 Governor’s Cup Award.

These accolades have not gone unnoticed by industry leaders, both on a national level and on a global scale. Thirteen Fortune Top 25 U.S. corporations have operations here in the bluegrass, while foreign enterprises currently total more than 400 facilities, resulting in more than 76,000 jobs.

We’re especially proud to be home to a bevy of homegrown companies — Humana, Lexmark, Papa John’s, KFC, Ashland Inc. and Louisville Slugger among them — all of which have become household names around the world. We also put a heavy emphasis on our very own exciting cadre of small businesses – the household names of tomorrow.

Certainly, our ideal location, quality workforce, low utility rates and positive economic climate are strong factors in our success. But equally important is our incredible quality of life. Life outside the office simply couldn’t be better than it is in Kentucky.

I hope you enjoy reading about the many advantages Kentucky offers to new and expanding businesses, and I encourage you to come and explore them for yourself. Give us a call; we want to help you write your own success story in Kentucky.

Sincerely, Covington

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business climate

Unbridled

Ambition Diverse, dynamic business base makes Kentucky a powerhouse brand

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KENTUCKY ECONOMIC DEVELOPMENT GUIDE

Kentucky displays natural beauty in every part of the state.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

JEFF ADKINS

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JEFF ADKINS

business climate

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KENTUCKY ECONOMIC DEVELOPMENT GUIDE

Scorecard KENTUCKY BY THE NUMBERS

4.26 million Population in 2008

$154.2 billion Gross Domestic Product in 2007

$31,826 Per-capita personal income in 2008

$34,849 Average annual wage and salary in 2006

W

hile Kentucky will always be known for its equine culture, the commonwealth’s increasingly varied business base shows that its economic development leaders aren’t horsing around.

Contributing to a state Gross Domestic Product that tops $154 billion are headquarters for a slew of globally recognizable brands such as printing and imaging equipment supplier Lexmark International Inc.; restaurant companies Papa John’s and Yum! Brands Inc., parent of KFC, Pizza Hut, Taco Bell and Long John Silver’s; and energy company Ashland Inc. Louisville’s Humana Inc. is the nation’s largest publicly traded health-benefits company.

Animal-health and nutrition giant Alltech is based in Nicholasville. The state is home to more than 60 corporate or regional headquarters, including Commonwealth Brands, GE Capital and Toyota Motor Engineering & Manufacturing North America Inc. In April 2009, the state, the University of Kentucky and University of Louisville announced a partnership with Argonne National Laboratory to establish a national Battery Manufacturing Research and Development Center in Central Kentucky to help develop a domestic supply of advanced battery technologies for vehicles.

Homegrown successes are found on a smaller scale, too. Little Kentucky Smokehouse LLC began as a familyowned business in Union County. With a forgivable loan from the Kentucky Agricultural Development Board, it has grown into a national company with product in major grocery chains.

In Nicholasville near Lexington, Alltech oversees an empire that includes offices, production facilities and distributors in 113 countries.

“We use Kentucky, and the whole

Access to a highly skilled and trained workforce is a major advantage that Kentucky can offer businesses.

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business climate

“Two great brands (came) out of this state: KFC and Muhammad Ali. We want (Alltech) to be ... third.” image of Kentucky, as a major part of our marketing,” says Dr. Pearse Lyons, president. “I often say that there are two great brands out of this state: KFC and Muhammad Ali. We want to be that third brand, that super brand.”

The company has stepped forward as title sponsor of the FEI World Equestrian Games, which will be held in 2010 in Kentucky, the first time they will be hosted outside Europe.

Humana points to Louisville and its employee base as major factors in the company’s development.

“Louisville is uniquely positioned at the crossroads of the region and

country, which was particu larly beneficial as Humana expanded from a regional player to our current status as a fast-growing Fortune 100 company,” says Jeffrey Bringardner, president of Humana’s Kentucky market.

The company points to Louisville’s “robust arts community, rich cultural history, and wealth of world-class educational institutions” as major factors in its ability to recruit and retain toptier talent.

With Humana, Yum! Brands, GE Consumer & Industrial, Brown-Forman Corp. and UPS’ international air hub, Louisville is becoming known as fertile

ground for companies to achieve national and international prominence.

“We see nothing but positive, even in a tough climate that’s forcing us to be lean,” Alltech’s Lyons says. “The beautiful thing about Kentucky is that it’s relatively small, so you have access to the politicians and people who can make decisions for you. … They’ve gone out of their way to introduce us to new opportunities, written letters for us to other governments and endorse what we’re trying to do. Those are powerful things, and reflect the level of support you receive here.”

– Joe Morris

SEE MORE ONLINE For more articles on Kentucky business and industry, go to kyedg.com.

Kentucky-based Yum! Brands operates several restaurant companies, including the iconic KFC.

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Strength in Numbers

Regional development efforts pay off for Kentucky communities

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General Motors builds the Corvette in Bowling Green, which is part of a multi-county economic development alliance.

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agency for the alliance.

“We have an understanding among all parties that when a client locates in one county, that just doesn’t help that county, it helps the entire region,” says James N. Hizer, CEcD, Bowling Green chamber president and CEO. The partnership grew from the 2003 formation of the Intermodal Transportation Authority, a multi-county effort to oversee Kentucky Transpark, a state-of-the-art industrial and business park in Warren County.

Today, South Central Kentucky, through the chamber’s management, offers a suite of business attraction and expansion, strategic planning and product-development services to support members’ economic development efforts.

Allen, Barren, Butler, Edmonson, Hart, Logan, Metcalfe, Monroe and Warren counties, as well as Bowling Green and Morgantown are South Central Kentucky partners.

The efforts have hit pay dirt, with creation of 1,600 jobs from new industry and 1,000 more from existing industry.

“Our regional partners get it – they understand the economic impact of a project landing anywhere in the region,” Hizer says.

– Joe Morris

DAV I D M U D D

uccessful economic development partnerships are a Kentucky staple. The entire state benefits from the joint and individual efforts of groups such as the South Central Kentucky alliance, Northern Kentucky Tri-ED and the Ashland Alliance.

The three-year-old Northwest Kentucky Forward handles economic development for Henderson, McLean, Union and Webster counties and their metro area. “Each county here was trying to do its own thing, and none was able to make the investment in either the people or the money to be successful,” says Kevin Sheilley, president and CEO. The region’s local governments had a history of cooperative efforts and shared a regional industrial park, so the new organization was a natural next step.

A chief goal is to recruit new industry to rural areas, a complicated challenge made easier with a unified effort.

“When Homecare Products Inc. located in a spec building in Morganfield, they bought equipment in Henderson, and worked with a supplier in Webster County. Everybody won with that one,” Sheilley says.

Northern Kentucky Tri-ED is considered a pioneer in regional economic development. Formed in 1987, the organization promotes Boone, Campbell and Kenton counties nationally and internationally as a location for advanced manufacturing, professional office and technology-oriented projects, playing on the region’s location to major U.S. markets east of the Mississippi River, lower taxes, lower cost of living and skilled workforce.

Northern Kentucky Tri-ED provides assistance to local companies expanding their operations and works with local communities to develop resources and infrastructure to support economic development.

The South Central Kentucky alliance brings together several counties in the Bowling Green area that support a number of economic development initiatives. The Bowling Green Area Chamber of Commerce serves as lead economic development

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education

SEE MORE ONLINE For more articles on Kentucky colleges and universities, go to kyedg.com.

Western Kentucky University

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S TA F F P H O T O

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Property

Rights

Expanding intellectual intellec capital builds the stateâ&#x20AC;&#x2122;s business b base

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T

More Insight

hrough on-campus research and development that often is patented and spun out into private-sector businesses, Kentucky’s higher-education institutions are doing their part – and more – to grow the Bluegrass State’s book of business.

Small-business development centers, organizations to promote entrepreneurship and multiple other programs and activities blend town and gown in ways that continue to grow business across many industry sectors.

At the University of Kentucky, partnerships with local and state economic development officials, as well as entities such as the Von Allmen Center for Entrepreneurship are front and center when it comes to business outreach, as is the groundbreaking Office for Commercialization & Economic Development, says Len Heller, vice president for commercialization and economic development.

Heller also serves as president and CEO of Kentucky Technology Inc., the university’s investment arm for technologybased businesses and startups.

“When this office was created in 2006, the goal was to put together the various economic development efforts that we do, and also to develop an outreach campus as part of this operation,” Heller says. “Now we have a business development unit that helps startup businesses with business plans and models to get them in the right frame of mind.” The intellectual property generated at the university begins the commercialization process out of the office, as well. “We get it patented, license it and start a company around it,” he says.

The office is focusing on Kentucky’s major business assets, such as the equine industry and the pharmaceutical sector, The Centennial Year Statue by Felix de Weldon on the campus of Eastern Kentucky University in Richmond

KENTUCKY’S PUBLIC UNIVERSITIES

UNIVERSITY OF KENTUCKY www.uky.edu Enrollment: 26,900

EASTERN KENTUCKY UNIVERSITY www.eku.edu Enrollment: 16,000

MOREHEAD STATE UNIVERSITY www.morehead-st.edu Enrollment: 9,000

UNIVERSITY OF LOUISVILLE www.louisville.edu Enrollment: 21,800

NORTHERN KENTUCKY UNIVERSITY www.nku.edu Enrollment: 15,100

KENTUCKY STATE UNIVERSITY www.kysu.edu Enrollment: 2,700

WESTERN KENTUCKY UNIVERSITY www.wku.edu Enrollment: 19,800

MURRAY STATE UNIVERSITY www.murraystate.edu Enrollment: 10,000

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education

using established businesses as wheelhouses for economic development while newer industries are being spun out from the school or are created within the community.

“We now have 55 early startup companies in Lexington and the Bluegrass area that we’ve helped develop in the last two years, and we’ve gotten $64 million in investments for them,” Heller says. “We believe that by working with the state and our partners, we can recruit a lot of big companies, but now we also believe we can grow our own as well.”

LASER FOCUS IN LOUISVILLE There’s a laser focus on new economic clusters at the University of Louisville, whose three campuses host a wide variety of research and development efforts.

The university also is contributing to the state’s workforce at the highest levels, awarding record numbers of baccalaureate and doctoral degrees, as well as producing seven Fulbright scholars in both 2007 and 2008, says Ellen de Graffenreid, director of the Off ice of Communications and Marketing at the university’s Health Sciences Center.

“Moving ideas from the mind to the

marketplace is a major focus at the University of Louisville,” she says.

In addition to offering one of the nation’s most-generous intellectual property policies to faculty inventors, the university has focused on developing infrastructure to assist in patents, licensing, commercialization and the formation of business enterprises.

Key portions of that infrastructure include the university’s Office of Technology Transfer, which works with researchers to move the university’s intellectual assets into the marketplace while also protecting the data and technology developed on campus.

That effort has led to more than 50 full-time jobs, 114 material transfer agreements and more than $19.7 million in seed and venture capital funding rounds.

“Research is economic development,” says Dr. James R. Ramsey, president of the University of Louisville. “It brings new dollars to the state through research grants with a multiplier effect that we estimate at $2 for every $1 our researchers bring in. Research creates new companies and jobs and improves the quality of life in our community.”

– Joe Morris

More Insight More students are enrolling in college in the Bluegrass State.

Undergraduate enrollment has increased 40 percent and graduate enrollment 20 percent in the last 10 years.

Degrees and credentials awarded by Kentucky colleges and universities have increased 94 percent since 1997, and there has been an 89 percent increase in degrees and credentials awarded in science, technology, engineering and mathematics fields.

Research initiatives on Kentucky college campuses have spurred private-sector enterprise.

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A Winning

Formula Community college system boosts workforce-training initiatives

More Insight THE KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM WWW.KCTCS.EDU KCTCS is comprised of 16 two-year colleges and more than 65 campuses and other locations open or under construction. This system allows students to move easily among programs and institutions as they pursue academic and technical degrees and workforce training.

Enrollment in KCTCS schools has increased nearly 60 percent since the system’s inception in 1998, with more than 81,000 students now enrolled in some 1,700 credit programs.

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I

n 1997, the Kentucky Community and Technical College System (KCTCS) was formally composed by the state Legislature, the hope being that a unified organization would improve delivery and expand opportunities at the state’s two-year colleges.

A decade later, the legislation’s intent has been met – and then some.

Some 16 colleges and more than 65 campuses serve individuals around the state looking to further their education by obtaining a two-year degree, certificate training or other coursework.

Enrollment numbers continue to soar, as do the number of companies that utilize the various institutions for workforce training and development, which shows that the KCTCS continues to meet a vital need, says Dr. Keith Bird, chancellor.

“We look at the workforce role of community colleges as a three-legged stool,” Bird says.

“There’s the transfer of education to four-year colleges, workforce training itself and then all the other things we do around development and adult education that prepares people to be in the workforce. When the system was created in 1997, the focus really was on business and industry getting a more responsive system than what had existed before. Everything we do is about preparing people for the workforce.”

A major tool utilized by KCTCS is the Kentucky Workforce Investment Network System (WINS) program, created in 1997 in tandem with the college system with $12 million in seed money.

Its goal is to assist with business and industry training programs.

In the last 12 years, 716 projects have been initiated, Bird says. The system also has worked with the U.S. Department of Labor and other workforce-related entities within the state to grow job-training programs, such as the automotive center of excellence at Toyota’s North American Product Support Center in Georgetown, and multiple grants from the National Science Foundation.

“We are fostering relationships for the future and looking to build up on the types of grants we have been getting,” Bird says. “We are focusing on the skills-gap issue because of the shortage we face in a number of areas because of retirement and because of what’s not coming through the system.”

A major issue with the workforce development in many states is the “pipeline” issue, Bird says.

But programs to feed the pipeline won’t work if they are not coordinated with career and technical education programs at the high schools and the universities.

“We have to play an even more aggressive role with the state in terms of not just getting people back into the workforce, but also developing new jobs and training for industries that are just beginning to emerge,” he says. “Because of the way we were created, we have a very strong system. If Hopkinsville doesn’t have a program they need for a company in the area, we can get it down there.”

– Joe Morris

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education

From Classroom to the Community COLLEGES AND UNIVERSITIES FORGE STRONG LOCAL TIES Berea College and Eastern Kentucky University (EKU) in Madison County are a good example of what plays out in communities across Kentucky – colleges and universities that offer a variety of programs that match the needs of residents and employers alike.

Berea, a liberal arts institution founded in 1855, was the first college in the South to be coeducational and racially integrated. Its 1,500 students pay no tuition but are involved in a full-participation, workstudy program while working toward degrees in 31 fields of study. That philosophy of requiring students to work their way through school resonates with the community, says David K. Tipton, dean of labor.

“The college develops partnerships with a wide variety of organizations in the community and region to provide opportunities for students to work and perform internships in settings related to their major as well as in community-service settings,” Tipton says.

Eastern Kentucky University also offers an array of academic programs and other services that benefit area residents and businesses. EKU, founded in 1874, has 168 undergraduate and graduate programs, with about 16,000 students on its main campus in Richmond and five satellite locations in the eastern half of the state.

EKU has been recognized by U.S. News & World Report for its graduate programs, ranking 60th for Top Southern Master’s Universities, while its occupational therapy program was ranked 24th in the

magazine’s America’s Best Graduate Schools 2009 listings.

And while the accolades are nice, the university also is working to fulfill a larger role within the community and region, says Dr. Doug Whitlock, president, citing the Center for Economic Development, Entrepreneurship

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and Technology as one example.

“We are getting increasingly involved in the whole area of regional stewardship, carrying the outreach of the institution in an economic development sense to our entire 22-county service region,” Whitlock says. “We feel good about that.”

– Joe Morris

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Scorecard BROWNâ&#x20AC;&#x2122;S FOOTPRINT

5.2 million Square footage of UPS Worldport facility

$1 billion Value of latest expansion at Worldport

5,000 New jobs created by Worldport expansion

350,000 Packages per hour processed at Worldport

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transportation

What

Brown Does for

Bluegrass

UPS expansion in Louisville delivers new business for Kentucky

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eek Squad founder Robert Stephens says the computer service company can work anywhere, citing locations in London and Madrid as well as stand-alone U.S. shops and operations within parent company Best Buy. But when the time came for Geek Squad City, a self-contained hub where hundreds of agents work to repair computers within 24 hours of receiving them, the destination of choice was suburban Louisville. â&#x20AC;&#x153;The most important thing we need is access to parts, with the one-day turnaround, and there are a lot of parts suppliers. And we certainly love UPS,â&#x20AC;?

Stephens says.

UPS loves Kentucky, too. The shipping giant started in Louisville in 1982 with 150 employees and a mere 200,000 square feet. It is in the midst of a massive expansion of its Worldport, next to the Louisville International Airport, a $1 billion project that will grow the footprint to 5.2 million square

The UPS Worldport facility in Louisville was a major draw for Geek Squad City.

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“It’s a good economic climate; there’s a steady supply of talent. It’s a nice place to live and centrally located.” frequent component of Expansion Management magazine’s Top 10 markets for logistics. Amazon.com has distribution centers in Taylor, Fayette and Boone counties. Geek Squad City opened in Hillview in 2006 with 165,000 square feet of space and hundreds of “agents.”

On a quiet day, UPS delivers 1,500 boxes, according to Geek Squad’s Web site.

Stephens credits the quality of life in the Louisville area as another factor in the company’s ability to recruit and keep people. Agents from other Geek Squad locales want to transfer to Kentucky, he says.

“It’s a good economic climate; there’s a steady supply of talent. It’s certainly a

nice place to live and centrally located,” Stephens says.

Hillview is in Bullitt County, which also is home to distribution centers for Zappos Shoes. The county has also attracted Alliance Entertainment, which handles video games, books, DVDs and other merchandise for big U.S. retailers; Gordon Food Service; APL Logistics; and a pharmaceutical division of Johnson & Johnson, among others.

“UPS has been the main driver from my point of view,” says Bob Fouts, director of the Bullitt Count y Development Authority. “It really has had an impact. I’ve been here five years, and we’ve located 20-plus companies.”

– Pamela Coyle

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feet and create another 5,000 jobs.

“We looked at a lot of locations,” says Tom Volta, UPS vice president of human resources in Louisville. “Louisville provides us with the best opportunity.

Most locations in the U.S. are within three days. It is the farthest western portion of the Eastern time zone.”

When it came time to expand, the region still made sense.

“We already had the infrastructure in place,” Volta says. “The economy in Kentucky is not subject to high swings.

It stays pretty level.”

The Worldport expansion’s first phase will open in 2009 and boost UPS’ sorting capacity from 304,000 packages per hour to 350,000 packages per hour. The second phase aims to tackle 416,000 packages an hour.

The vast facility already has docks at its buildings for 44 airplanes and is adding 26 more, Volta says. The expansion will add 1.2 million square feet and nearly triple the miles of conveyor belts to 170. The presence of UPS is a major draw for logistics and distribution operations. Greater Louisville is a

A $1 billion expansion at the UPS Worldport facility in Louisville will increase handling capacity to 350,000 packages per hour.

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transportation

Opportunity

Docks Kentucky’s seven inland ports are primed to handle more cargo

K

BRIAN MCCORD

entucky’s seven inland ports want to be bigger players in the state’s transportation matrix and are positioning themselves to take on more and larger cargo.

The Owensboro Riverport, for example, spent $5 million on a 102-acre rail loop in 2008 that will be able to accommodate 100 rail cars.

“It was a big bite for us,” says Ed Riney, CEO of the Owensboro Riverport.

“But the real purpose is for long-term development, and we have long-term plans that would include the airport as well as rail.”

Miles Farm Supply, which owned the land, is building a $10 million facility for bulk fertilizer storage on port property, with a long-term lease.

Grain, fertilizer and aluminum are among Owensboro’s biggest commodities, along with paper products from a local Kimberly-Clark mill.

Owensboro and the PaducahMcCracken County Riverport move

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The Ohio River gives Kentucky a major shipping channel. The state is home to seven inland ports. J E F F A D K I N S

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about 1 million tons a year each.

Greenup-Boyd County, Jefferson County, Henderson County, HickmanFulton County and Lyon County also have active port facilities.

The Paducah Riverport is considered the northernmost ice-free port facility in the United States and sits at the confluence of the Tennessee-Tombigbee Waterway, the Ohio River and the Cumberland River.

“We are basically a day or a day-anda-half drive from 65 percent of the U.S. population,” says Ken Canter, who serves as president of the Kentucky Association of Riverports and port director at Paducah-McCracken County.

“We are the first port you come to after the Mississippi.”

The port has a 150,000-square-foot warehouse under lease, outside storage capacity for 200,000 tons of limestone or sand, and 230 acres available in a Paducah industrial park.

It can handle containers less than 20 tons but, like its peers, wants to get into the growing business of moving larger containers. “The next phase is in barge transportation in containers,” Canter says.

Unlike similar facilities in other states, Kentucky’s ports are self-supporting and don’t receive state or local funds. The association is getting the word out that ports can help reduce interstate congestion. Its new Web site, www.kentuckyriverports.com, touts cost effectiveness: one gallon of gas can move one ton of cargo 155 miles by truck, 413 miles by rail or 576 miles by inland towing.

– Pamela Coyle

The Ohio River between Indiana and Kentucky carries a high volume of cargo-loaded barge traffic.

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health care & biotechnology

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A

Shot in the Arm

Research initiatives spawn health-care and biotechnology breakthroughs

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rom developing immunotherapy to extracting proteins from plants, Kentucky’s health-care and biotechnology sectors are leveraging the state’s strong research base to build the next generation of employers.

ApoImmune in Louisville is developing treatments that allow patients to use their own immune systems to fight chronic and life-threatening diseases. Through these efforts, the company could develop treatments for cancer, tuberculosis and diabetes. A novel vaccine for cervical cancer could start Phase I clinical trials in 2009.

In Owensboro, Kentucky Bioprocessing has invested millions of dollars to express, extract and purify plant proteins. Under the leadership of Chairman Hugh Haydon, Kentucky Bioprocessing offers controlled plant-growth and processing facilities and can leverage the expertise of the Owensboro Cancer Research Program.

In September 2008, the company, whose principal investor is Owensboro Medical Health System, announced it was collaborating with Germany’s Bayer Innovation GmbH to develop a biopharmaceutical production service facility in Owensboro. The company owns numerous patents related to the expression of genes in plants, biomanufacturing, novel plant varieties and antibodies.

3DR Laboratories was created in 2005 to free hospitals and imaging centers from spending thousands of dollars for equipment to process their own MRI images. Instead, 3DR and its radiology technicians do the work for them, creating a Kentucky Bioprocessing in Owensboro is a leader in plant-based pharmaceutical research.

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health care & biotechnology

business that serves hospitals and groups across the country.

“It’s grown unbelievably, especially since the economic turmoil that hit this past year, because there are no capital budgets to be spent on this,” says David Ferguson, senior manager at 3DR. In addition to saving providers money, 3DR is saving them time with a 24/7 model that allows for quick turnaround of the scans.

The state has fostered innovation in the health and biotech sectors through a number of programs that provide resources, expertise and funding.

JEFF ADKINS

UK’S BEST IN THE NATION The College of Pharmacy at the University of Kentucky has become one of the best in the nation and is building a $155 million facility that will train pharmacists under one roof.

On the drawing board for a decade, the 286,000-squarefoot center was needed to handle the growth in enrollment and activities in the college.

“It’ll be the finest pharmacy education environment in the nation and, frankly, one of the finest – if not the finest – in the world,” says Dean Kenneth Roberts.

The college has helped spur innovation that has led to

creation of new enterprise.

Coldstream Laboratories Inc., for example, opened in 1991 as the Center for Pharmaceutical Science & Technology, a unit of the College of Pharmacy, and completed more than 200 development projects that led to clinical trials.

In 2007, the CPST became a 30-employee private company, Coldstream Laboratories, which offers analytical, formulation development and pharmaceutical manufacturing services.

The College of Pharmacy has enlarged the class size for its four-year program. The school now can admit as many as 132 applicants, up from 88 when Roberts joined the faculty, from a pool of more than 1,000 students every year.

The school has migrated to more active learning from students, with roughly a third of the curriculum being experiential. In fact, the entire fourth year of class is spent on rotations mentored by community-based faculty at hospitals and pharmacies.

The college even employs actors in the Lexington community to play the role of patients so students are prepared for every eventuality. More than 85 percent of graduates take their first jobs in Kentucky.

“We’re preparing the learners to be pharmacists for the rest of their lives,” Roberts says.

– Roy Moore

Kentucky-based companies are creating breakthroughs in all areas of health care, including the processing of MRI images.

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The Nucleus of an Idea UNIVERSITY HAS GRAND VISION FOR LIFE-SCIENCES DEVELOPMENT The University of Louisville is a driving force behind a lifesciences hub being created in the city’s downtown.

Under the Nucleus: Kentucky’s Life Sciences and Innovation Center banner, the university and its development foundation are working with city and state economic development entities, major businesses and medical institutions to create a lifescience research park at UofL’s 30-block Haymarket property in the city’s medical-universityriverfront corridor.

Those efforts are at the core of the university’s commitment to propel the $2.3 billion development forward and make Louisville a globally known life-sciences hub.

The Nucleus Life Science and Innovation Center will house multiple facilities in close proximity to expedite collaboration and shared expertise among researchers and companies.

The park will cluster resources and connections to grow business in a campus-like environment. Facilities will include wet and dry laboratories for research, state-of-the-art clean-room technology and office space.

Through its research, UofL has moved 22 life-science startups into the marketplace since 2000. University officials see Nucleus, coupled with the world-class expertise in life sciences at UofL, as a catalyst in recruiting companies from across the country.

The university’s Nucleus effort grew out of the Louisville Medical Center Development Corp., an affiliate formed in 1997

to coordinate common interests for downtown Louisville hospitals.

The university has been a driver in several life-sciences initiatives, including creation of the MetaCyte Business Labs business incubator and the establishment of a special taxincrement-financing district that

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is expected to generate more than $300 million.

That funding would be targeted at developing the Haymarket property and implementing UofL’s master plan for its health-sciences campus.

For more on Nucleus, go to www.nucleusky.com.

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livability

SEE MORE ONLINE Learn more about Kentucky’s attributes as a place to live and work at kyedg.com.

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My

New

Kentucky

Home Kentuckyâ&#x20AC;&#x2122;s ease of living beckons business and families

Natural beauty and a relaxed lifestyle are among the attractions drawing new residents to Kentucky. PHOTO BY TODD BENNETT

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livability

In addition to splendid settings, Kentucky offers a range of cultural and recreation options that will suit any lifestyle.

P

hilippe Garnier moved from his home near Paris, an international city renowned for its culture, cuisine and romance, for a job in Kentucky. His family was so comfortable with the decision, they made it twice.

Employed by Messier-Bugatti, a world leader in the field of aeronautical braking and carbon brakes, Garnier accepted a position that first brought him to Walton, Ky., in 2001 for a three-year assignment.

“We liked it enough the first time,” Garnier says, “that when I received an offer for another position within the

company a few years later, we came back.”

Like Garnier, many people who come for a job or vacation decide to make the Bluegrass State their home for a lifetime.

With a combination of Southern hospitality and Midwestern ethos, Kentucky charms with its history, natural beauty and relaxed lifestyle.

Messier-Bugatti USA chose Walton for a number of reasons, including generous state and county incentives, low cost of energy and proximity to an international airport. A skilled workforce has allowed Messier-Bugatti USA to successfully

“There’s no rush here, no traffic and outdoor life is so easy.

A few miles in any direction you find a beautiful park.”

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grow from zero to 200 employees in less than 10 years.

“The cost of living is low, the environment is very safe, and the school system is quite good,” says Garnier, who has two daughters. “There is no rush here, no traffic problems, and outdoor life is so easy. A few miles in any direction you will find a beautiful park.”

Garnier and his family enjoy the temperate climate, often dining outdoors into late October.

“One of my daughters is into horseback riding,” Garnier says. “The farm is not far away, and it is quite easy to do.”

The family appreciates being close to larger city centers with a range of theater, dining and sporting events. They enjoy a variety of amenities without living in a big city.

KENTUCKY HAS DEEP POOL OF TALENT A well-trained, educated population drew Dr. Eric Ostertag to Lexington, where he relocated his company from Philadelphia. Transposagen Biopharmaceuticals operates within the business incubator on the University of Kentucky campus. The UK Advanced Science and Technology Commercialization Center (ASTeCC) is a combination faculty research facility and commercialization center with labs for business startups.

“We needed to be near an academic institute for senior scientists and technicians,” Ostertag says. “Hiring talented people here is easy.”

The state has a matching program for a government grant Ostertag’s company received from the National Institutes of Health. “Kentucky was the first in the nation to offer that type of grant,” Ostertag says. “That’s what originally attracted me, but the quality of life and cost of doing business make it a good choice.”

Lexington has a college-town feel. The airport is easily accessible with direct flights to major cities. The city has been good at limiting urban sprawl, and there is much to do nearby.

“On weekends, I enjoy the art museum at UK, the philharmonic, the Kentucky Horse Park,” Ostertag says.

“There are lots of restaurants and music venues. In general, the people are friendly, customer service is excellent, and it’s a good place to raise a family. In all respects, Kentucky has met or exceeded my expectations.”

– Claire Ratliff-Sears Horse racing and the equine business are a Kentucky passion and major industries. Top left: The Kentucky Center for the Performing Arts is a Louisville cultural draw. Top right: The restaurant scene is lively in Lexington.

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Golden Opportunity Kentucky communities catch on as desirable retirement destinations

K

entucky offers an abundance of communities that are not only great places to live and work – but also great places to live after work.

Just ask Cliff Stilz‚ a retired banker who lives in Mt. Sterling in Montgomery County. “Basically‚ for me‚ Mt. Sterling has everything I need‚” he says. “We’ve got good recreational facilities‚ two nice golf courses‚ and we’re close to Lexington to see college sports‚ great arts and opera and that kind of thing. And we’re relatively affordable.”

Reasonable living costs, quality cultural amenities and diversified health-care facilities are breeding active seniorrelated tourism and retirement economies.

“Our retirement community is growing,” says Judy Cox, director of the Campbellsville/Taylor County Chamber of Commerce. “We get inquiries from Florida to Michigan to Las Vegas, mostly people who are looking to get out of major metropolitan areas and have heard about us from articles that mention our community, and the state, as a retirement destination.”

Locales such as Campbellsville, Danville, Glasgow, Madisonville, Maysville, Morehead, Murray and Richmond have met state retirement-community certification requirements for housing options and cost, climate, personal safety, work opportunities, health care and other services related to the continuum of aging, transportation, continuing education, leisure living, recreation, performing arts, community

support, and festivals and events.

Danville-Boyle County has earned plaudits as a place to live from national media outlets such as Time and Where to Retire magazines.

“When you’re ranked highly in those national magazines as a retirement community you get some interest, so we work with those people when they come through the door,” says Adam Johnson, executive director of the Danville-Boyle County Convention & Visitors Bureau.

Other areas play the hand they’ve been dealt, and do it effectively, by capitalizing on their location.

“Most folks who retire come down here from up north, and they find that they can buy a lot more floor space and a more luxurious house than what they had before,” says Ernie Myers, executive vice president of the Glasgow-Barren County Chamber of Commerce. “We also have a lot of retirees here now, so that segment of the community has been growing on its own as well as with our help.”

The T. J. Sampson Community Hospital is now a regional facility, and the Glasgow-Barren County area also has several other facilities that provide the full spectrum of health care from doctor’s offices to assisted living and full-scale nursing home facilities. That’s key to an aging population, and it’s often a deciding factor for new residents, Myers says.

“Having those options along with everything else makes us quite attractive,” he says.

– Joe Morris

Retired banker Cliff Stiltz enjoys time with grandson Jacob at his home in Mt. Sterling.

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BUSIN BU IINE N E SS SS O PP PPO RTU TU NI TUN N ITI TIE I E S ... ..

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FINANCIAL INCENTIVES AND WORKFORCE: Designated a KREDA tax credit community, Powell County, Kentucky offers an eager workforce with strong rural work ethic.

CONTACT: Powell County Economic Development P.O. Box 10 U Stanton, KY 40380 powellindustrial@bellsouth.net U (606) 663-2156 www.powellkentucky.com Photo courtesy of timwebbphotography.com

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livability

A Recipe for Success LANDMARK RESTAURANT CELEBRATES A MAJOR MILESTONE Gary McCormick, general manager. “We want to be the premier hotel in the region for the next 100 years.”

At the 36-year-old Berea Farmers Market, patrons find offerings from up to 20 local growers. The market is “groweronly,” says founder Bill Best. “You have to produce everything that

you sell. Growers tend to pride themselves on quality. Farmers markets have been good about bringing people back to at least a minimal understanding of what food is really like,” Best says.

“People are beginning to realize they need to be more aware of where their food comes from.”

– Anne Gillem

JEFF ADKINS

Spoonbread, a signature dish at the historic Boone Tavern, remains a menu fixture at the Berea restaurant and hotel that opened a century ago.

Spoonbread, made of cornmeal, salt, baking powder, eggs and boiling water, dates to the mid-19th century.

Boone Tavern, which opened in 1909 as a place for Berea College visitors to dine and stay, is celebrating its 100th birthday in 2009.

The tavern, named for Daniel Boone, reopened in late February 2009 following a $10.8 million renovation. Aside from classic dishes such as the spoonbread, the new menu features choices for the healthconscious. Diners also will enjoy a slice of birthday cake following their meals throughout 2009.

In 2009, Boone Tavern expects to become the first hotel in Kentucky to gain LEED certification as a green building.

“Boone Tavern has served as the cornerstone of hospitality for the region since 1909,” says

Vendors at the Berea Farmers Market sell only what they grow.

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Fueling Innovation Bluegrass State takes a lead in green-energy technology

T

he Bluegrass State is going green, and old-line industries are leading the way.

Companies as disparate as coal developers and animal feed firms are developing renewable or clean energy, with the aim of powering Kentucky’s businesses in the future.

Gov. Steve Beshear has unveiled the state’s first-ever comprehensive energy plan, which calls for reducing greenhouse gas emissions and creating 40,000 jobs tied to energy production and conservation by 2025.

The governor wants to increase renewable energy, boost biofuels, develop a coal-to-gas industry and encourage carbon capture/sequestration.

In April 2009, the state, University of Kentucky (UK) and University of Louisville (Uof L) announced a partnership with Argonne National Laboratory to establish a national Battery Manufacturing Research and Development Center in Central Kentucky. Argonne is the nation’s leading federal lab for transportation-related research and development.

The center’s major goals will include supporting

“The market is expanding, and the need to replace fossil fuels is becoming more apparent.” development of a viable U.S. battery manufacturing industry and making it easier for federal labs, universities, manufacturers, suppliers and end-users to collaborate. It also will develop advanced-manufacturing technology to reduce advanced-battery production costs and accelerate the commercialization of technologies developed at national laboratories and universities.

The center is being located in Central Kentucky to leverage the expertise and research facilities at the two universities.

Already a world leader in animal health, Central Kentucky-based Alltech is branching into biofuels development.

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Complementary research and development capabilities and facilities will also be located at Argonne.

Such moves put Kentucky at the forefront on greentechnology job creation.

Peabody Energy is teaming with ConocoPhillips to build a plant in Muhlenberg County that will turn coal into a cleaner form of natural gas.

The four-year development project allows Kentucky to leverage its abundance of coal while burning fuel cleanly.

If approved, the project will take four years to build, create 1,200 construction jobs and 500 long-term jobs, and produce nearly $100 million in regional economic benefits each year.

As part of this “mine mouth” gasification project, ConocoPhillips will employ technology that will be used to produce clean-synthesis gas that is transformed into cleanburning natural gas.

Kentucky NewGas will produce emissions of less than 5 percent of the emissions of a comparably sized traditional coal plant. The plant aims to capture the carbon dioxide that could be permanently stored or used for enhanced oil recovery.

Alltech, which is based in Central Kentucky, is proving that

companies unrelated to energy have an opportunity to thrive in this sector. For nearly three decades, the company has been one of the world’s top animal-health companies, selling animal feed to buyers worldwide. Now it has identified new opportunities with its extensive knowledge of ethanol.

Alltech has plans for a $70 million commercial cellulosic ethanol plant in Springfield, aided by a $30 million grant from the Department of Energy and $8 million from the Kentucky Economic Development Finance Authority.

The rural community biorefinery would be one of the nation’s first to use cellulose such as switch grass and corncobs at raw-material rates of up to 30 percent. This material is converted to ethanol.

“The appealing aspect of using cellulosic materials is that it is considered a waste product by most – that being corn stover, saw dust, waste paper and pulp,” says Mark Lyons, the company’s international projects director. “The market is expanding, and the need to replace fossil fuels is becoming more apparent with the limited supply, the vulnerability of foreign energy, national security, and the competition for grains for human and animal nutrition.”

– Roy Moore

Alltech, headquartered in Central Kentucky, has plans for a $70 million biorefinery project in Springfield.

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Energy

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energy

Seed Money Yields Success STATE FUND GIVES LIFT TO ENERGY INNOVATION Kentucky New Energy Ventures is a state program that administers public funds for investment in promising renewable and alternative energy companies in the state.

The $5 million fund, created in 2007, provides one-time grants of $30,000 and larger equity investments that must be matched dollar-for-dollar by recipient companies.

The program targets highgrowth potential, early-stage, Kentucky-based companies that are developing and commercializing alternative-fuel and/or renewable-energy technologies.

Managed by the Kentucky Cabinet for Economic Development through the Department of Commercialization and Innovation, the program is administered by the Kentucky Science and Technology Corp., an independent, nonprofit organization.

To date, the fund has made equity investments totaling $1 million to two companies and awarded $30,000 grants to six other initiatives.

The fund made a $750,000

equity investment in Wind Energy Corp. in Elizabethtown.

The company focuses on windharvesting solutions that will be used in commercial and community markets.

Louisville Clean Energy received a $250,000 investment as part of its efforts for renewable-energy production

facilities that will use off-the-shelf technology to make biodiesel fuels from feedstock such as yellow grease, animal fat and vegetable oil. The company plans to build its initial production facility in Henry County in summer 2009.

For more on the program, go to www.ThinkKentucky.com.

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A Kentucky fund provides investment money and grants to new energy ventures.

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Kentucky sets a fast pace for foreign investment

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KENTUCKY ECONOMIC DEVELOPMENT GUIDE

n the race for foreign investment, Kentucky set a strong, early pace and remains a favorite.

More than 400 foreign companies have made direct investment and employ more than 75,000 people in the commonwealth, according to a January 2009 Kentucky Cabinet for Economic Development Report.

In the last five years alone, foreign companies made $5.1 billion in capital investments and created just under 16,100 full-time jobs in Kentucky.

The Bluegrass State has nearly 160 operations owned by Japanese firms, with the investment spread among 43 of Kentucky’s 120 counties. The state is home to the largest U.S. investment of a Spanish corporation, North American Stainless, as part of the Acerinox Group, which has a $1.7 billion plant in Ghent.

“Kentucky makes a geographically compelling case when international companies are deciding on the best location for their U.S. facility,” says Larry Hayes, interim secretary of the Kentucky Cabinet for Economic Development. “Kentucky is within 600 miles of two-thirds of the U.S. population; our industrial electricity costs are consistently among the lowest in the nation; and Kentucky’s tax structure is among the most competitive in the region.”

On the export side, Kentucky ranks ninth among states in exports per capita, totaling $19 billion in 2008.

Transportation equipment, chemicals, machinery and computer and electronics products are the main exports. The More than 400 foreign firms have made direct investment in Kentucky, employing more than 77,000 people.

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global business

Scorecard GLOBAL REACH

410 Foreign companies that have made direct investment in Kentucky

77,046 Jobs in Kentucky from foreign-owned firms

$5.1 billion Capital investments by foreign-owned firms in Kentucky from 2003-2008

$19 billion Value of exports in 2008

BRIAN M C CORD

Source: U.S. Census Bureau

Kentucky is within one-day’s drive of nearly 60 percent of the population of the United States.

“All of those things did come true.

Kentucky is still a good place for us to be.” three largest markets for exports are Canada, France and Mexico, respectively.

For European firms with Kentucky operations, the Euro’s strength makes expansions more cost effective. MessierBugatti USA, maker of wheels, brakes and other components in aircraft-braking systems, finished an expansion in 2008 that doubled the size of its original plant in Boone County.

“Northern Kentucky is fairly advantageous in respect to the manufacturing base that is here,” says Andy Short, vice president of carbon operations at Messier-Bugatti USA. “The supplies we would need were here. For transportation purposes, it is a fairly central location, regardless of where our product was going.” Messier-Bugatti has a 10-year track record in Kentucky.

Mazak Corp., the first Japanese manufacturer in the state, goes back four decades. It is the North American arm of Yamazaki Mazak Corp., a major global player in the production of machining tools.

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President Brian Papke says the Florence plant has expanded “at least 14 times” and now employs about 600. The total campus is 600,000 square feet and serves the medical instrument, aerospace, automotive and oil-service sectors as well as small shops that make precision metal parts.

The company picked Northern Kentucky because proximity to Cincinnati suggested a solid manufacturing foundation, quick access to its customer base, ease of travel with a nearby international airport and potential talent available from regional universities.

“All of those things did come true,” Papke says. “Kentucky is still a good place for us to be.”

– Pamela Coyle SEE MORE ONLINE Learn about more businesses that call Kentucky home at kyedg.com.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

Kentucky’s Man in Japan JIRO HASHIMOTO HELPS PROMOTE THE STATE’S BUSINESS Jiro Hashimoto has been Kentucky’s chief representative in Japan for 24 years, helping craft and seal deals that have brought scores of new companies and thousands of jobs to the state. As of January 2009, the Kentucky Cabinet for Economic Development reported direct investment from 157 Japanese companies totaling 38,570 jobs.

state has had consistent representation in Japan?

A

Consistent representation in Japan, relationship building and “service after sale” are extremely important. Annual gubernatorial trips to Japan have been most effective in that regard.

Q

What do you hear from first-time visitors to Kentucky about the state upon their return to Japan?

A

Livability is excellent, and the people are friendly.

– Pamela Coyle

Q

What do Japanese firms look for when they are contemplating a U.S. location?

A

The presence of fully developed, reasonably flat industrial sites with easy access to major airports, major highways and Japanese Saturday schools. Companies also look for a non-union environment, a community’s acceptance/enthusiasm, tax incentives and low electric costs for large power users.

Q

Historically, what have been the strongest sectors for direct Japanese investment in Kentucky and why?

A

Automobiles and auto parts because of the convenience of two ‘auto alleys,’ namely I-75 and I-65, running in the state.

Q

Looking ahead, past the current economic slowdown, what sectors show growth potential for direct Japanese investment in Kentucky?

A

Environmentally friendly sectors such as renewable energy-related products and hybrid/ electric car components.

Q

Does Kentucky have an advantage because the

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technology

Solid State

Efforts to build research enterprise create burgeoning tech sector

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BRIAN M C CORD

The state offers numerous programs to support research.

f Stephen Foster were alive today, he might change the title of My Old Kentucky Home to My New Economy Home to keep up with the efforts of the commonwealthâ&#x20AC;&#x2122;s entrepreneurs and governmental leaders.

For the past decade, state leaders have sought to offset losses in rural manufacturing by breeding a new generation of companies that thrive in science, technology and engineering.

Those efforts to develop technology clusters are creating centers of research excellence that will support technology-based clusters serving manufacturing, material science, energy and environmental technology businesses.

Kentucky leaders hope to spur the technology to diversify the economy of the commonwealth and support businesses that could employ thousands of workers.

At the hub of much of this activity is the Kentucky Science and Technology Corp., (KSTC) which helps stimulate private investment in locally based technology companies. Much of the money comes in the form of grants and investments that help those companies grow.

More than 400 companies have received

money from three funds, and these companies have received more than $119 million in follow-on funds from both pubic and private sources.

KENTUCKY ENCOURAGES ENTREPRENEURSHIP KSTC also administers, under contract to the Kentucky Cabinet for Economic Development, the Innovation and Commercialization Center Program, which provides advice to faculty members and technology entrepreneurs.

Kentucky has shown that it can grow technology companies.

Exstream Software developed a thriving operation through its Dialogue software, which allowed companies to personalize their consumer mailings.

Growing into an enterprise that served 400 major clients and generated $100 million in revenue, Lexington-based Exstream was acquired in 2008 by Hewlett-Packard, a gold standard in the technology arena.

State officials hope to grow other companies and have several that show promise.

One, Kaba Mas Corp., has brought innovation

Left: The Kentucky Science and Technology Corp. helps stimulate tech investment.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

More Insight KENTUCKY SCIENCE AND TECHNOLOGY CORP. www.kstc.com KSTC is a private, nonprofit corporation committed to the advancement of science, technology and innovative economic development.

Established in 1987, KSTC is governed by a board composed of leaders from business, education, and government.

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to an industry whose basic technology dates back 200 years.

The company’s locks generate their own power so they don’t need connection to an outside source or batteries.

“Self-powered technology is what has catapulted the company to where it is today,” says Stephen Pollack, the company’s marketing manager.

A startup, StrataSpace, hopes to enjoy the same kind of success. The data center company was founded when parent company Rogers Group decided to make use of an old mine it had used. The underground nature of the mine made it an ideal spot for a data center, ensuring security to companies.

President Don Esterle says the location has more than 300,000 square feet of usable building space, with redundant power, fiber and ventilation. His company is pitching the site to businesses in need of tight security and points to its attributes, including proximity to Interstate 75 and cheap energy.

“It’s a fairly small niche of people that demand the type of security that this facility offers, but when you get in that niche, this facility really stands out,” Esterle says.

– Roy Moore

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Kaba Mas is an innovator in self-powered technology. Below: Exstream Software in Lexington was an early tech success.

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Northern

Kentucky Opportunity Central – for Advanced Manufacturing; Office/Regional Headquarters; Technology

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technology

Resource to Innovation AGENCY PROGRAMS BOOST ENTREPRENEURSHIP Housed under the Kentucky Cabinet for Economic Development, the Department of Commercialization and Innovation works to create high-tech job opportunities and develop clusters of innovation throughout the state.

Between 2002 and 2008, investments made through department programs created more than 3,000 high-paying technology jobs.

Among the department’s efforts are: The Small Business Innovation Research and Small Business Technology Transfer Research Matching Funds programs encourage small businesses to explore their technological potential and maximize commercialization opportunities. The program includes up to $100,000 in matching funds for eligible recipients of Phase 1 federal

awards and up to $500,000 for up to two years for eligible recipients of Phase 2 federal awards.

From 2006 to 2008, 55 awards were made to 37 companies, totaling more than $13 million.

A statewide business-plan competition to encourage entrepreneurship and develop

new high-growth ventures, with winners receiving combined cash awards of up to $100,000.

A grant of $750,000 to MetaCyte Business Lab, a biotechnology incubator in Louisville founded in 2002 that helps nurture biotech companies and provides expertise to assist start-up firms.

A business investment that pays you back!

Kentucky Association of Manufacturers (KAM) Get involved in Kentucky’s #1 industry and state’s hottest business association ...

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If you are a manufacturer or in an industry that supports manufacturing, one of the smartest investments you can make is in the Kentucky Association of Manufacturers.

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609 Chamberlin Ave. Frankfort, KY 40601 (502) 352-2485

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Still in

High Gear Auto sector, battery research center power up in Kentucky

F

our auto plants go a long way in Kentucky’s economy, accounting for more than 400 related suppliers, nearly 80,000 workers and $5.6 billion to the state’s gross domestic product, half of it in wages.

With 1 million vehicles produced, Kentucky ranks third in U.S. auto manufacturing, behind Michigan and Ohio. The state’s stature as an automotive center and research hub grew with the April 2009 announcement that a national Battery Manufacturing Research and Development Center would be established in Central Kentucky to develop and deploy a domestic supply of advanced-battery technologies for vehicle applications.

The center will be a partnership between Argonne National Laboratory, a national leader in transportationrelated research and development, and the state, University of Kentucky and University of Louisville.

“Central Kentucky is an ideal location for the center,” says Larry Hayes,

Kentucky’s interim secretary for economic development. “Not only does Kentucky have an experienced autoindustry related workforce, but the region is within 500 miles of more than 4,800 auto-related manufacturers.”

And there was good news on other fronts. In 2008, Big Rapids Products Inc., INFAC Corp. and MTS Inc. announced they would locate in Kentucky, investing $6.7 million and creating 120 jobs. Forty-two autorelated firms spent $386.5 million on expansions, meaning another 1,440 jobs, according to a January 2009 report from the Kentucky Cabinet for Economic Development.

American Howa Kentucky Inc., one of more than 100 Japanese-owned suppliers, opened a $10 million plant in Bowling Green, and in 2008 announced a $12 million expansion. Toyota Boshoku America is expanding its Kentuckybased North American headquarters in Northern Kentucky.

State officials are working to adjust

Scorecard IN OVERDRIVE

1,046,531 Cars and light trucks assembled in Kentucky in 2007

9.9 Percentage of cars produced in U.S. made in Kentucky

$5.6 billion Gross domestic product of auto industry in Kentucky in 2006

50,457 Automotive jobs in Kentucky Source: U.S. Bureau of Economic Analysis, 2007

Toyota’s largest North American production plant is in Kentucky.

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BRIAN MCCORD

financial incentives to help companies that need to invest in plant upgrades so the state retains its competitive position when the economy improves.

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KENTUCKY DRIVES AUTO EXPANSION “The last thing you want is for someone’s facility to fail to update,” says Hayes. “The current economic climate has caused us to take a more serious look at possibly some form of advance disbursement of tax credits, if the projections are sound enough, and then net it out or recover it.”

Ford has two Kentucky plants, one in Louisville and one in eastern Jefferson County, which produces trucks. In Bowling Green, General Motors makes Corvettes and Cadillac XLRs. Toyota’s largest North American production plant is in Georgetown. Erlanger is home to Toyota’s North American

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

manufac turing headquarters, and its North American parts division is based in Hebron.

The Tennessee Valley Authority’s Megasite program is aimed at attracting vehicle manufacturers, and a 2,100-acre site in Hopkinsville is certified and ready to go.

“These are the type of projects that will have regional and multistate impact,” says John Bradley, TVA’s senior vice president of economic development.

“We knew they were coming and wanted a shot at them.”

– Pamela Coyle

Below: Auto-related industry is a major component of the economy. Left: Ford has substantial presence in Kentucky.

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SEE MORE ONLINE Read more articles on products made in Kentucky at kyedg.com.

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Made in Kentucky Manufacturing remains a vigorous economic sector in the state

T

hough automotive production is a major component of Kentucky’s manufacturing sector, the state has a broad industrial base that spans everything from consumer appliances to food processing to aircraft engines to sportswear to greeting cards.

More than 263,000 people work in Kentucky’s manufacturing sector, about 63 percent of whom produce durable goods such as autos and appliances.

Nearly 24,000 workers are in food

processing and production.

Kentucky’s industrial base of steel, aluminum, chemical and machinery production has been built on availability of key resources, including water, lowcost electric power and reasonably priced barge, rail and truck transportation infrastructure.

In 2008, Kentucky ranked ninth in Site Selection magazine’s Governor’s Cup, awarded annually to states with the most new and expanded facilities. It

was the smallest in population of any state in the top 10.

Thirteen Fortune 25 U.S. corporations have manufacturing or service facilities in Kentucky, including General Electric, Ford Motor Co. and General Motors Corp. Nearly 400 foreign-owned enterprises have Kentucky operations, including Toyota, Hitachi, Siemens and Matsushita Electric.

The Novelis Inc. plant in Berea is the world’s largest aluminum-can recycling

Appliance maker Sub-Zero has found Kentucky to be a hospitable environment for manufacturing.

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manufacturing

Novelis operates the world’s largest aluminum-can recycling facility.

Below: Auto suppliers are a major component of the Kentucky economy.

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J. KYLE KEENER

facility, and used beverage cans literally pour into the sprawling facility via railroad and truck.

“Our cans come from all over the U.S., from as far away as California, and we do bring some in from Canada and Mexico,” says Ernie Corvi, NovelisBerea plant manager.

Incorporated in Canada, Novelis leads the world in the production of rolled aluminum. The company has 32 production facilities in 11 countries and six can-recycling operations.

While some U.S. communities face an industrial decline, Madison County’s manufacturing sector, with an estimated 8,000 jobs, is growing, diverse and internationally flavored.

From glass to vinyl extrusions, underground wiring to pressure-sensitive tape and industrial batteries to paint, products manufactured in Madison County are astoundingly varied.

Novelis’ Berea plant, which opened in 1989, now employs about 100 people.

Used cans arrive in bales, which are broken up and the cans shredded. A de-coating process burns off the cans’ lacquer. Then they are loaded into one of four furnaces that burn at 750 degrees Celsius. The molten aluminum is cast into 60,000-pound ingots, which are shipped to a Novelis plant in Russellville, Ky., for rolling into coils, ultimately used by beverage-can manufacturers.

“One of our ingots makes about 1.6 million cans, so our facility here would produce about 16 billion cans a year,” says Corvi, who notes the skill and reliability of the local workforce as one of the reasons for the operation’s success.

Workforce is one reason Sub-Zero Wolf Inc. chose Richmond as the site of a new manufacturing plant, says Jimmy Howard, executive director of

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manufacturing

the Richmond Industrial Development Corp. A manufacturer of high-end kitchen appliances, Sub-Zero Wolf announced in August 2007 its intention to invest $51.6 million and employ about 100 workers. The plant will manufacture dishwashers, a new product for the company.

The economic downturn has forced Sub-Zero Wolf to slow its plans, but the company is still committed to Richmond, Howard says. While holding on to 42 acres it acquired there, Sub-Zero Wolf bought nearly 11 adjoining acres, and t he compa ny is bu i ld i ng a n 80,000-square-foot plant on the site.

Operations are expected to launch by the end of 2009 with at least 50 employees. “The other acreage is sitting there, prepared, ready to build on,” Howard says.

– Sharon H. Fitzgerald

Household names such as SherwinWilliams have Kentucky operations.

The company has a facility in Richmond.

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PERSONAL AD Progressive Central Kentucky region seeks business/industrial clients to form lasting partnerships. Region is attractive, innovative, educated and highly competitive.

Much to offer including bountiful land, infrastructure that wonâ&#x20AC;&#x2122;t quit, a workforce with all the right skills and a location to die for.

All nationalities welcome.

Companies must be willing to locate in Central Kentucky. Must enjoy longterm economic success and be committed to a mutually beneficial relationship.

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For more information about our region, visit us at www.bluegrassalliance.com.

Marshall County

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River. Road. Rail.

We can get you there!

Marshall County Economic Development Josh Tubbs, Director -AIN 3T s "ENTON +9 s &AX

www.opportunitymarshall.com

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manufacturing

Primed for Development HOPKINSVILLE HAS A SHOVEL-READY, TVA-CERTIFIED MEGASITE A Tennessee Valley Authority economic development program designed to shave up to nine months off site selection for major manufacturers helped attract Hemlock Semiconductor to Clarksville, Tenn., and Volkswagen to Chattanooga.

Each “megasite” project will top $1 billion in direct investment.

Kentucky is home to two such megasites, one in Hopkinsville and the other, certified in April 2009, in Graves County.

“We’ve got options on the land and good roads to the land and available water,” says Eston Glover, chairman of the Hopkinsville Christian County Economic Development Council.

“We have everything ready to go for the site. We think we have the best site in the valley.”

At 2,100 acres, the Hopkinsville site is the largest in the TVA Megasite Program.

The TVA hired an outside site selection firm, McCallum Sweeney Consulting of Greenville, S.C., to evaluate and certify the sites.

The Graves County site is at the Purchase Region Industrial Park on U.S. Highway 45, eight miles from Purchase Parkway and 10 miles from I-24. Five Class I railroads serve the park.

The park is overseen by an eight-county board, with a representative from each county in the Purchase area.

Criteria for megasite consideration include 1,000 or more acres, infrastructure or a plan with funding in place, plus access to roads, rail, sewer and water, says Ed McCallum, McCallum Sweeney senior principal. “One of our premises was ‘Let’s give everyone the opportunity to participate,’” he says.

Glover says the Hopkinsville site will “fit just about anything,” and the TVA agrees. The site is just off I-24 and U.S. Highway 41, about an hour’s drive from Nashville International Airport.

John Bradley, TVA’s senior vice president for economic development, says the agency

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launched the program to give communities a better shot at landing automakers – though the first taker was a steel manufacturer.

“I describe it as one of the best community development programs out there,” he says.

– Pamela Coyle

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recreation

Calling All

Nature

Lovers SEE MORE ONLINE Read more about Kentucky’s recreation opportunities at kyedg.com.

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Kentucky is the ultimate recreation destination

F

BRIAN MCCORD

rom mild to wild, outdoor adventure abounds in the Bluegrass State. You can tour an idyllic horse farm or go spelunking in Mammoth Cave, hike a wooded trail or scale a sandstone cliff, float a houseboat on placid waters or slice river currents in a canoe.

Lovers of nature will find their bliss amid Kentucky’s rolling hills, sparkling waters and unspoiled wilderness.

The 700,000-acre Daniel Boone National Forest in eastern Kentucky lays along the foothills of the Appalachian Mountains and stretches north to south virtually the length of the state.

More than 5 million people flock to it each year to backpack, camp, picnic and enjoy breathtaking scenery and abundant wildlife.

Highlights include the rugged Red River Gorge, an area known for natural stone arches and soaring cliffs.

“Rock climbing has become a very popular attraction at Red River Gorge,”

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For outdoor enthusiasts, Kentucky offers abundant opportunities to get out on the water.

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“We take you right into the farms to see the horses up close and personal.” drawing hikers, boaters and fishermen.

The pristine Land Between the Lakes National Recreation Area is a popular spot for horseback riding, all-terrain vehicles and hiking, with water-sports enthusiasts making full use of the lakes, Adams says.

Historically, one of the state’s most popular attractions, Mammoth Cave National Park, welcomed a whopping 625,000 visitors in 2008.

More than half of that number go in for cave tours, which can range from short, self-guided walks to longer, more rigorous tours that showcase formations

such as Frozen Niagara, the Drapery Room and Star Chamber. The 5.5mile, six-hour Wild Cave Tour involves climbing, crawling and squeezing through the cave’s obscure underground passageways.

“The cave tours bring many people to the park, but a lot of folks come for the overland trails, which lead to geologic features that offer clues to the cave underneath,” says Vickie Carson, the park’s public information officer.

Some 85 miles of trails and 31 miles of river run through the park, making it a perfect destination for camping,

BRIAN MCCORD

says Bob Adams, a spokesman for the Kentucky Department of Travel.

Trails for all-terrain vehicles also draw visitors.

“The ATV people, rock climbers and hikers all know this is a great destination for their forms of recreation,” Adams says. “We’re really raising our profile as an adventure-tourism destination.”

Some of the largest lakes in the eastern United States are located in Kentucky.

Thousands of miles of shoreline surround the waters of Kentucky Lake, Lake Barkley and Cumberland Lake,

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Mammoth Cave National Park draws thousands of visitors a year.

PHOTO BY RYAN SWEENEY

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More Insight SEE FOR YOURSELF The Kentucky Department of Travel offers information on the numerous attractions, historic sites, museums and points of interest in the state, as well as festivals, state parks and, of course, horses. Go to www.kytourism.com.

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of the fabled Kentucky Derby, and the Kentucky Horse Park in Lexington bring thousands of visitors. For many people, a visit to the state would not be complete without a tour through horse country.

Kentucky Horse Tours is one of several companies in the state that offers private, customized tours of elite thoroughbred operations.

“To see these animals is absolutely breathtaking,” says Kentucky Horse Tours owner Mary Ann Squires. “We take you right into the farms to see the horses up close and personal.”

– Carol Cowan

JEFF ADKINS

picnicking, horseback riding, canoeing and fishing.

“It’s a great place to step into the woods for a quiet moment to reconnect with nature,” Carson says.

A designated World Heritage Site and International Biosphere Reserve, the park truly is a world wonder, and it’s less than a day’s drive from many of the major population centers in the eastern United States.

Adventure of a different pace revolves around Kentucky’s horse industry. Events at Churchill Downs in Louisville, home

Kentucky’s parks provide miles of trails for hiking, cycling and nature watching.

Left: Horses are a part of Kentucky’s cultural fabric. B R I A N M C C O R D

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LONDON-LAUREL COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY THE DENNIS KARR AIRPARK Located off I-75 (75 miles south of Lexington and 100 miles north of Knoxville, TN) Direct access to the London-Corbin Airport (LOZ) featuring 5,750’ x 150’ runway with ILS

PROPERTY AVAILABLE Contact: London-Laurel County Industrial Development Authority 4598 Old Whitley Rd. London, KY 40744 (606) 864-8115 www.llcida.com

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recreation

Horse Play

BALLARD COUNTY

KENTUCKY SADDLES UP FOR THE WORLD EQUESTRIAN GAMES IN 2010

101 Liberty Dr. Office Complex

Kentucky is no stranger to hosting major international sporting events. The Bluegrass State is, after all, home to the fabled Kentucky Derby, and in 2008 the prestigious Ryder Cup golf tournament was played at the famed Valhalla Golf Club in Louisville.

But the state will outdo itself in fall 2010 when an event known as the Olympics of the horse world, the Alltech FEI World Equestrian Games, comes to Lexington.

The games will be the largest equine event ever held in the United States and the largest sporting event ever held in Kentucky. The 2010 event also marks the first time the games will be held outside Europe.

Estimated economic impact for the state is $150 million. The title sponsor for the games is Alltech, a Central Kentucky company that is a world leader in animal-health products. Dr. Pearse Lyons, the company’s CEO, is a major supporter of the games.

Preparations are well under way, says Amy Walker, public relations manager for the organizer, the World Equestrian Games 2010 Foundation. “Excitement is building in the equestrian world as well as around the state,” she says.

Held once every four years, the event will take place Sept. 25 through Oct. 10, 2010, at the 1,200-acre Kentucky Horse Park in Lexington.

Hundreds of horses and athletes from dozens of countries will participate in the 16-day event.

World championships will be awarded in eight equestrian disciplines: dressage, driving, endurance, eventing, reining, show jumping, vaulting and, for the first time at the World Games, paraequestrian – a dressage competition for riders with disabilities.

Jane Beshear, Kentucky’s first lady and an avid horsewoman, notes that the event will draw spectators from all over the world. Tickets available for sale number some 600,000 and an additional 500 million viewers will watch the games on television.

“This will be the largest sporting event held in Kentucky’s history, and we will be hosting thousands of people from around the globe,” says Beshear, who is on the board of the games foundation. “Our goal is not only to welcome these guests to the Bluegrass region, but to encourage them to venture throughout the entire state, as well.”

The Kentucky Horse Park has undertaken several improvement projects as part of its long-term vision, which was instrumental in winning the bid for the games. The park, a working horse farm that includes an educational theme park and equine competition facility, brings in 900,000 visitors and 15,000 competition horses each year.

Construction has begun on a 6,000-seat indoor arena and an 8,000- to 10,000-seat outdoor stadium (with temporary seating for another 22,000 during the games), as well as road improvements throughout the park.

“We’re excited that the games can be a catalyst to bring visitors to our state,” says John Nicholson, Kentucky Horse Park executive director. “They want to come for the horse events, but they also want to see Kentucky, visit our attractions, and see the Bluegrass treasure we have here.”

For more information about the 2010 Alltech FEI World Equestrian Games, visit www.alltechfeigames.com.

– Carol Cowan

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Kevil, KY 36,000 sq. ft. clearspan with 15,000 sq. ft. developed and remaining available for development

HWY. 286

Wickliffe, KY 36,000 sq. ft. clearspan with 24 ft. eave height available for development

Ballard County Economic & Industrial Development Board Take a look at the lands at the confluence of the mighty Mississippi and the Ohio Rivers.

It’s all right here.

Terry Simmons, Pres/CEO 101 Liberty Dr. • Ste. 4 Kevil, KY 42053 (270) 744-3232

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tourism

Plowing New

Opportunity Agritourism is taking root as an economic development bumper crop

More Insight The Kentucky Department of Travel offers an agritourism resource that includes a searchable database of attractions. Go to www.kytourism.com/ thingstodo.

Kentucky Farms are Fun promotes agritourism across the state. Its Web site includes a database searchable by attraction and region. Got to www. kentuckyfarmsarefun. com for more.

L

ess than a decade after Kentucky threw its weight behind the effort, agritourism has become a booming business throughout the commonwealth.

Family farms are getting new life as tourism venues, offering everything from corn mazes and tractor rides to pick-your-own crops and overnight stays.

And though turning the homestead into an attraction takes some up-front money and a definite people-friendly mindset, more farmers and rural agriculture-related businesses are making the change.

In 2007, agritourism income was $3.3 million, or $7,786 per farm, almost three times what it had been in the last agriculture census in 2002, says Stephen Yates, director of agritourism for the Kentucky Department of Agriculture. “The amount of money being earned by agritourism basically tripled, and we see that as a very healthy indicator of where we are in terms of

growing that industry,” he says.

Yates credits the state’s decision to plow about half of the money it receives from the Tobacco Master Settlement Agreement into the diversification of agriculture, a move that established loan programs that allow farmers and agribusinesses to revamp their facilities.

“It’s been very good at giving the agricultural community other production options,” Yates says. “They can raise more cattle and different crops, but also utilize existing resources, such as the farm itself, as a source of revenue.”

In the last few years, several associations have formed around the state to foster agritourism, each encompassing multiple counties and enabling the marketing of attractions on a regional level.

That was the case with the Central Kentucky Agritourism Association, which began three years ago and has seen much success in raising its member profiles, says Todd Allen, owner of

Many Kentucky farms are finding new opportunity by opening themselves to visitors.

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Top left: Wines for sale at Chateau du Vieux Corbeau Winery in Danville Bottom left: Many farms offer pick-your-own fruit opportunities. Right: Agritourism efforts allowed tobacco farmers to revamp their farms and diversify.

Maple Hill Manor, a historic home and working farm in Springfield, and the association’s current president.

“We have an abundance of variety in our 12 counties, from livestock to orchards to working farms to beekeepers,” Allen says. “Agritourism is a growing way for farms to share what they do with the public, so they not only get the income but also are able to educate people.”

That’s been the case at Chaney’s Dairy Barn in Bowling Green, a family farm that dates back to 1888 and now is a successful vendor of ice cream and destination for several annual musical events, including the June Barnfest.

“We did the research for a couple of years and opened the ice cream store, the Dairy Barn, in October 2003,” says Carl Chaney, who along with wife Debra, owns and operates the facility.

“In the first year we made 5,500 gallons; last year it was 11,000. The first year we had about 3,000 visitors; last year it was around 7,700. And one thing we do, which we’re very passionate about, is that we show people where the milk comes from. We feel like we’re ambassadors for agriculture, and we take that very seriously,” he says.

Chaney, who also is chairman of the Kentucky Agritourism Council, says that the fledgling industry is just now coming into its own as an economic development driver.

“It’s an alternative for the farmer, and more people are looking to connect back to the land,” he says. “People want their kids to know where their milk comes from.”

They also question their apple’s origins, which is where Kevan Evans and Evans Orchards and Cider Mill come into play. Since 1994, the family-run concern has been expanding in several directions, including retail and dining, in addition to the cider press, orchard and vegetable areas.

“We got various development grants and began with the trees in 1994,” Evans says. “We were getting some production by 1998, and in 2001, we put the cider mill in a former tobacco barn.”

Evans originally pressed cider for four orchards, a number that has since grown to eight and results in about 20,000 gallons of cider per year. And his foot traffic has echoed that success.

“The tourism has taken over here in a lot of ways,” he says.

“We’re still selling a lot of apples and vegetables throughout the year, but people really come out for the entertainment of being on the farm. We’ve focused on the kitchen and retail areas, so they can have something to eat, buy something and stay longer. Everybody seems to want to be back out on the farm, so we’re working to have more for them to do.”

– Joe Morris

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JEFF ADKINS JEFF ADKINS

Tour the family-owned Chateau du Vieux Corbeau Winery in Danville online at kyedg.com.

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SEE VIDEO ONLINE

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CULTURED

PEARLS Historic sites offer insight into what makes Kentucky unique

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n the world of Kentucky tourism, the focus usually is on the big three: horses, thoroughbred racing and bourbon. But there’s a lot more to be found in the state, and its many cultural and heritage tourism destinations are gathering increasing interest from visitors and state residents.

“When people think of Kentucky they think of certain things, and we certainly encourage that, but there’s so much more to the story,” says Kimberly Clay, director of cultural tourism for the Kentucky Department of Travel.

“But when it comes to cultural heritage tourism, sometimes it’s hard to promote because many of these sites and venues don’t fit into a specific category, because they really are unique to themselves.”

As an example, Clay points to Camp Nelson, one of three Civil War supply depots where Union forces trained African-American soldiers. It was one of the largest of its kind and is a mere

The 3,000-acre Shaker Village of Pleasant Hill is the largest restored Shaker community in the United States. The National Historic Landmark offers tours, music, riverboat rides and demonstrations of life in the mid-19th century.

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because that ties into the 200th birthday celebrations going on this year.”

Begun in 2008 to promote local and regional tourism sites in response to high gas prices, the department’s Discover Your Own Backyard program has gotten a new lease on life in the current economic downturn.

“People are taking more weekend

or three-day trips now, and so we’re focusing on the cultural heritage sites that are within an easy drive,” Clay says.

History and heritage can take many shapes and forms in Kentucky.

The Louisville Slugger Museum & Factory in downtown Louisville highlights the history of the family-owned enterprise that has been supplying the

JEFF ADKINS

20 minutes from Lexington.

“We have a lot of Civil War history around the state, and people come to see those sites, but they may not know about this one because it’s a bit different,” Clay says. “So we try to highlight it, as well as places like Abraham Lincoln’s birthplace and the counties he touched on and lived in,

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Learn more about Kentucky’s cultural attractions at kyedg.com.

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TO D D B E N N E T T

JEFF ADKINS

SEE MORE ONLINE

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lumber to baseball’s biggest hitters since 1884.

Shaker Village of Pleasant Hill in Harrodsburg is the largest restored Shaker community in the nation. The 3,000-acre National Historic Landmark includes 14 original Shaker buildings, costumed interpreters demonstrating life in the village in the mid-19th century, the 40-room Centre Family Dwelling with its extensive collection of Shaker furniture and artifacts, and demonstrations by skilled craftspeople.

DANVILLE, A CITY OF FIRSTS In Danville, known as the City of Firsts, Jacobs Hall at the Kentucky School for the Deaf is a restored Italianate structure that was built in 1857 and is now a National Historic Landmark.

The school was the first of its kind in the nation.

The McDowell House and Apothecary Shop, also in Danville, was the home of Dr. Ephraim McDowell, who in 1809,

performed the world’s first successful removal of an ovarian tumor and became known as the “Father of Abdominal Surgery.”

The Perryville Battlefield Museum near Danville commemorates one of the bloodiest clashes of the Civil War, involving more than 40,000 Union and Confederate troops.

Many experts consider the battle as the most important Civil War engagement fought in Kentucky.

The Leeds Center for the Arts, a 1925 movie palace in downtown Winchester, is having a wildly successful second life as a 450-seat multifaceted performingarts venue.

GLASGOW CELEBRATES CELTIC HERITAGE The Highland Games in Glasgow take place each year in late May or early June and pay homage to the Celtic culture with traditional athletic competition such as the caber toss, as well as concerts and entertainment with a Celtic flavor. (The 2009 dates are scheduled for May 28-31.)

“We’re focusing on promoting our cultural sites under the umbrella of our major tourism attractions and seasons,” Clay says. “We’re folding it into promotions for major events and festivals, and also into specific times of year and major events such as Lincoln’s birthday so that we can get more people here and get more attention on these places that often are overlooked only because they’re not as well known as we’d like them to be.”

– Joe Morris

The Leeds Center for the Arts in Winchester. Above: Danville is “Kentucky’s City of Firsts.” Far left: The apothecary is a main feature at McDowell House in Danville.

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Kentucky offers abundant open spaces and beautiful settings, like this sunset in Glasgow.

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The fountain at Norton Center for the Arts Newlin Hall is lit against the night sky at Centre College in Danville.

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It’s time for horsing around at Claiborne Farms in Paris.

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A National Historic Landmark, Jacobs Hall in Danville is the oldest building at the Kentucky School for the Deaf, which opened in 1823.

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A re-enactment of the Battle of Perryville, the largest Civil War battle fought in Kentucky

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SHELBY COUNTY, KENTUCKY Saddlebred Horse Capital of the World

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ECONOMIC PROFILE BUSINESS CLIMATE

DEMOGRAPHICS Population – 4,269,245 (2008) Personal Income Estimates: Total – $135,873,261 (2008) Personal Income Estimates: Per Capita – $31,826 (2008)

Kentucky boasts industrial electricity costs that are consistently among the lowest in the nation, a tax structure that’s among the most competitive in the region and an ideal location within 600 miles of two-thirds of the U.S. population. The commonwealth is home to 400 international companies and thousands more domestic companies.

Thirteen of the Fortune 25 largest U.S. corporations and nine Fortune 25 largest global corporations operate out of Kentucky. In addition, Kentucky ranks third in total light-vehicle production in the country.

Median Household Income – $40,138 (2007) Labor Force – 2,042,915 (2008)

LARGEST CITIES

Louisville, Lyon County, Owensboro, Paducah and Wurtland.

INDUSTRIES AND NUMBER OF ESTABLISHMENTS

RAILROADS Louisville-Jefferson – 560,454

All Industries – 92,829

CSX, www.csx.com

Construction – 9,256

Lexington-Fayette – 275,276

Norfolk Southern, www.nscorp. com/nscportal/nscorp

Finance and insurance – 6,357

Canadian National Railway Company, www.cn.ca

Manufacturing – 4,131

Paducah and Louisville Railway www.palrr.com

Services – 9,742

Owensboro – 53,408 Bowling Green – 53,463 Covington – 41,880 Richmond – 28,435 Hopkinsville – 35,899

Information – 1,650 Mining – 684 Transportation and warehousing – 3,185

Henderson – 27,661

COMMERCIAL AIRPORTS

Florence – 28,877

Cincinnati/Northern Kentucky International Airport www.cvgairport.com

Wholesale and retail trade – 21,002

TRANSPORTATION

Blue Grass Airport www.bluegrassairport.com

INTERSTATES

Louisville Regional Airport Authority www.louintlairport.com

NONFARM EMPLOYMENT BY INDUSTRY SECTOR

Frankfort – 27,203

I-24, I-64, I-65, I-71, I-75, I-264, I-265, I-275, I-471

STATE PARKWAYS (NINE TOTAL) Audubon Parkway Martha Layne Collins Blue Grass Parkway Louie B. Nunn Cumberland Parkway Daniel Boone Parkway/ Hal Rogers Parkway Bert T. Combs Mountain Parkway William H. Natcher Parkway Edward T. Breathitt Pennyrile Parkway Julian M. Carroll Purchase Parkway Wendell H. Ford Western Kentucky Parkway

WATER Seven public riverports operate facilities at Henderson, Hickman,

Owensboro-Daviess County Regional Airport, www.owb.net Barkley Regional Airport www.barkleyregional.com

Construction – 144,426 Finance, insurance and real estate – 92,855 Government – 364,196 Manufacturing – 263,127 Mining – 26,574

TOP 10 (2008) MANUFACTURERS/ SUPPORTIVE SERVICE (WITH EMPLOYMENT) Humana Inc. – 9,344 Toyota Motor Corp. – 8,928 United Parcel Service Inc. – 7,664 General Electric Co. – 6,904 Ford Motor Co. – 6,829 Delta Air Lines Inc. – 4,274 Citigroup – 3,900 Fidelity Investments – 3,900 Johnson Controls Inc. – 3,826 Dana Corp. – 3,418

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

Healthcare/Social Assistance – 237,411 Services – 654,982 Total – 2.36 million

TOP COMMODITY EXPORTS BY VALUE (2007) 1. Turbojet and turboproller parts, $3.51 billion 2. Passenger vehicles sparkignition engine, $678 million 3. Motor vehicle transport of goods, spark ignition, $607 million 4. Motor vehicle parts and accessories, $511 million

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visit our

advertisers Appalachian Industrial Development Authority

Kentucky Association of Manufacturers

Atmos Energy www.atmosenergy.com

Kentucky Cabinet for Economic Development www.thinkkentucky.com

Ballard County Economic & Industrial Development Board

Kentucky Community & Technical College System www.kctcs.edu

Big Rivers Electric Corporation www.bigrivers.com

Kentucky Department of Travel www.kentuckytourism.com

Big Sandy Regional Industrial Development Authority Inc. www.bsrida.org

Leitchfield-Grayson County Industrial Development Foundation Inc. Lincoln Trail Area Development District www.ltodd.org

Bluegrass Alliance www.bluegrassalliance.com

Logan Economic Alliance for Development www.loganleads.com

Bluegrass Crossings Business www.bluegrasscrossings.com Bowling Green Area Chamber www.bgchamber.com

London-Laurel County Industrial Development Authority www.llcida.com

Carlisle County Industrial Boards www.carlislecounty.org

Marshall County Economic Development www.opportunitymarshall.com

Central Bank www.centralbank.com

Morehead-Rowan County Economic Development www.edc-ky.com

City of Greensburg www.greensburgonline.com

Murray-Calloway County Economic Development Corporation www.thinkmurray.com

City of Oak Grove www.oakgroveky.org

Northern Kentucky Tri-ED www.northernkentuckyusa.com

Columbia-Adair County EDA Inc. www.columbia-adaircounty.com

Northwest Kentucky Forward www.northwestky.com

Commerce Lexington www.commercelexington.com Corbin Economic Development Agency www.sekpp.com Danville/Boyle County Economic Development www.betterindanville.com

Publishers Printing Company www.pubpress.com

Elizabethtown/Hardin County Industrial Foundation Inc. www.eifky.org Franklin-Simpson Industrial Authority www.f-sindustry.com Fulton County-Hickman County Economic Development Partnership Glasgow/Barren County Industrial Development Economic Authority www.glasgow-ky.com

Purchase Region Industrial Park www.prpindustrialpark.com RR Donnelley www.rrdonnelley.com Scott & Murphy & Daniel LLC www.scottmurphydaniel.com Shelby County Industrial & Development Foundation www.shelbycountyindustrialfoundation.com

Greater Louisville Inc. www.greaterlouisville.com

Somerset-Pulaski County Development Foundation www.spcdf.com

Greater Owensboro Economic Development Corporation www.owensboro.com

Springfield-Washington County EDA www.sweda.org

Greater Paducah Economic Development Council www.gpedc.com Hampton Inn www.hamptoninn.com

KYEDG.COM

Paradise Park â&#x20AC;&#x201C; MIDC www.paradisebusinesspark.com Powell County Industrial Development Authority Inc.

Eastern Kentucky University www.eku.edu

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Paducah & Louisville Railway www.palrr.com

University of Kentucky Coldstream Research Campus www.ukcoldstream.com

Hopkinsville Christian County www.hopkinsvilleindustry.com

University of Kentucky Commercialization & Economic Development www.econdev.uky.edu

Jeffersontown Economic Development Authority www.jeďŹ&#x20AC;ersontownky.com

University of Louisville College of Business www.business.louisville.edu

Kentucky American Water www.amwater.com

Western Kentucky University www.wku.edu

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

economic profile 5. Antisera and other blood fractions, $378 million 6. Passenger vehicle sparkignition engine, more than 3,000 cc, $374 million 7. Uranium enriched in U235 plutonium, $314 million 8. Motor vehicle transport of goods spark ignition, $297 million 9. Parts and accessories of printers/copiers/fax machines, $281 million 10. Silicones, in primary forms, $279 million

TOP COMMODITY EXPORTS BY VOLUME (2008) 1. Transportation equipment, $6.7 billion 2. Chemicals, $3.5 billion 3. Machinery, except electrical $1.9 billion 4. Computer and electronic products, $1.4 billion 5. Primary metal manufacturing $760 million 6. Electrical equipment, appliances and parts, $590 million 7. Fabricated metal products, $541 million 8. Nonmetallic mineral products, $445 million 9. Processed foods $361 million 10. Plastics and rubber products $360 million

FOREIGN DIRECT INVESTMENT (2006) Companies and affiliates, 610 Employees, 91,000 Manufacturing employees, 48,400 Total value of property, plant and equipment, $27.8 billion

TOP COUNTRIES

BY EMPLOYMENT: Japan – 29,500 Germany – 13,700 Canada – 7,500 United Kingdom – 8,500 France – 5,600 Switzerland – 6,600 Netherlands – 6,300

32 gas-distribution companies, 36 intrastate pipeline gas companies, 157 municipal, college or housing authority providers and one gas and water district operated locally at the county level.

PUBLIC UNIVERSITY ENROLLMENT Eastern Kentucky University, 16,031 Kentucky State University, 2,659 Morehead State University, 8,981 Murray State University, 10,022 Northern Kentucky University, 15,109 University of Kentucky, 26,913

TAXES

University of Louisville, 21,761

State Sales Tax – 6% State Income Tax – Net income for Kentucky individual income taxes is gross income minus either the standard deduction or allowable itemized deductions.

Property Tax – Combined state and local rates average $1.05 per $100 valuation in urban areas and $0.82 per $100 in rural areas.

Occupational License Tax – 0.25%-2.5% (not in entire state)

UTILITIES Electric power is distributed by four investor-owned electric utilities, 30 municipal electric systems, the Tennessee Valley Authority and 21 rural electric cooperatives. (www.kaec.org/ coops/default.htm) Natural gas is available from

Can you imagine … a world without children?

We Can’t.

Call 1-800-996-4100 to help. www.stjude.org

Western Kentucky University, 19,761 Total public university enrollment, 121,237

FOR MORE INFORMATION Kentucky Cabinet for Economic Development Old Capitol Annex 300 W. Broadway Frankfort, KY 40601 (502) 564-7670 Fax: (502) 564-1535 www.thinkkentucky.com

SOURCES: www.thinkkentucky.com www.kentuckyroads.com, U.S. Census Bureau, Dept. of Commerce 2008, United States Bureau of Economic Analysis

26,200.

That’s how many years RR Donnelley’s Kentucky employees have worked for the company.

It’s not surprising. Folks who enjoy what they do stick with it.

For more information, visit rrdonnelley.com.

RR Donnelley is an EEO/AA employer.

KENTUCKY ECONOMIC DEVELOPMENT GUIDE

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Ad Index 18 APPALACHIAN INDUSTRIAL DEVELOPMENT AUTHORITY 15 ATMOS ENERGY 101 BALLARD COUNTY ECONOMIC & INDUSTRIAL DEVELOPMENT BOARD 70 BIG RIVERS ELECTRIC CORPORATION 68 BIG SANDY REGIONAL INDUSTRIAL DEVELOPMENT AUTHORITY INC. 92 BLUEGRASS ALLIANCE 88 BLUEGRASS CROSSINGS BUSINESS 1 BOWLING GREEN AREA CHAMBER 40 CARLISLE COUNTY INDUSTRIAL BOARDS 109 CENTRAL BANK

13 CITY OF GREENSBURG 58 CITY OF OAK GROVE 118 COLUMBIA-ADAIR COUNTY EDA INC. 43 COMMERCE LEXINGTON 6 CORBIN ECONOMIC DEVELOPMENT AGENCY 8 DANVILLE/BOYLE COUNTY ECONOMIC DEVELOPMENT 65 EASTERN KENTUCKY UNIVERSITY 2 ELIZABETHTOWN/HARDIN COUNTY INDUSTRIAL FOUNDATION INC. 24 FRANKLIN-SIMPSON INDUSTRIAL AUTHORITY 26 FULTON COUNTY-HICKMAN COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP

Ad Index (cont.)

93 GLASGOW/BARREN COUNTY INDUSTRIAL DEVELOPMENT ECONOMIC AUTHORITY 55 GREATER LOUISVILLE INC. C2 GREATER OWENSBORO ECONOMIC DEVELOPMENT CORPORATION 100 GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL 92 HAMPTON INN 91 HOPKINSVILLE CHRISTIAN COUNTY 99 JEFFERSONTOWN ECONOMIC DEVELOPMENT AUTHORITY 14 KENTUCKY AMERICAN WATER 81 KENTUCKY ASSOCIATION OF MANUFACTURERS C4 KENTUCKY CABINET FOR ECONOMIC DEVELOPMENT 20 KENTUCKY COMMUNITY & TECHNICAL COLLEGE SYSTEM 120 KENTUCKY DEPARTMENT OF TRAVEL 34 LEITCHFIELD-GRAYSON COUNTY INDUSTRIAL DEVELOPMENT FOUNDATION INC. 80 LINCOLN TRAIL AREA DEVELOPMENT DISTRICT 85 LOGAN ECONOMIC ALLIANCE FOR DEVELOPMENT 100 LONDON-LAUREL COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 92 MARSHALL COUNTY ECONOMIC DEVELOPMENT C3 MOREHEAD-ROWAN COUNTY ECONOMIC DEVELOPMENT 17 MURRAY-CALLOWAY COUNTY ECONOMIC DEVELOPMENT CORPORATION 80 NORTHERN KENTUCKY TRI-ED

10 NORTHWEST KENTUCKY FORWARD 46 PADUCAH & LOUISVILLE RAILWAY 32 PARADISE PARK – MIDC 64 POWELL COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY INC. 75 PUBLISHERS PRINTING COMPANY 4 PURCHASE REGION INDUSTRIAL PARK

Ad Index (cont.)

119 RR DONNELLEY 16 SCOTT & MURPHY & DANIEL LLC 116 SHELBY COUNTY INDUSTRIAL & DEVELOPMENT FOUNDATION 78 SOMERSET-PULASKI COUNTY DEVELOPMENT FOUNDATION 71 SPRINGFIELD-WASHINGTON COUNTY EDA 12 UNIVERSITY OF KENTUCKY COLDSTREAM RESEARCH CAMPUS 80 UNIVERSITY OF KENTUCKY COMMERCIALIZATION & ECONOMIC DEVELOPMENT 22 UNIVERSITY OF LOUISVILLE COLLEGE OF BUSINESS 38 WESTERN KENTUCKY UNIVERSITY

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