Business Lexington March 1, 2013

SMILEY PETE

PUBLISHING

MARCH 1, 2013 VOLUME 9, ISSUE 5

www.bizlex.com

A PA R T N E R I N P R O G R E S S

$2.25 Design professionals Alt32

Focus: Manufacturing

Parking perplexities

PAGE 7

The health of manufacturing in Kentucky

By Pam Mangas

Made in the Bluegrass: Big Ass Fans

CONTRIBUTING WRITER

A

cross the United States, a renaissance is taking place in an industry once thought to be on the brink of death: manufacturing.

According to the Institute for Supply Management, economic activity in manufacturing expanded eight out of 12 months in 2012, although this growth was classified as mostly moderate. Whether Kentucky’s economy has experienced a significant boost from this resur gence may depend on what data is considered and who is asked, but almost everyone agrees that in Kentucky, a vibrant manufacturing industry is vital.

PAGE 19

Integrity/ Architecture: Lexington’s New Blood PAGE 21

SEE MANUFACTURING PAGE 15 

Half a Century in Exile: a Q&A with J.P. Pennington PAGE 22

PHOTO BY DREW PURCELL

By Susan Baniak and Tom Martin

I

BUSINESS LEXINGTON

t’s not as exciting as a new basketball arena, as entertaining as a distillery district, or as pleasant as a downtown water feature, but business owners, developers and city of ficials agree that parking is a crucial determining factor in the success or failure of the city’s core.

By no means is it a new problem. Downtown parking has been the subject of debate and criticism for decades. Some people hold that it is simply a problem of perception on the part of today’s driving consumers, who have been conditioned by the growing number of expansive suburban surface lots. Others see an increasingly confusing, inconsistent and inconvenient network of downtown parking options in need of a complete overhaul. All agree, however, that downtown Lexington cannot support a thriving retail sector in the long ter m unless it develops better parking solutions.

SEE PARKING PAGE 11

PHOTO FURNISHED

Zenobia Williams, a production employee, works on bottom-freezer refrigerator doors at GE’s Appliance Park in Louisville, Ky.

Commercial insurance rates expected to rise

By Tom Mays, CIC GUEST WRITER

P

roperty and casualty rates are on the move, and business owners should be prepared for an increase in pricing when renewing their insurance program in 2013.

A few business owners may have seen a slight increase in pricing during 2011, however many more experienced an increase in 2012. U.S. property and casualty rates steadily increased last year an average of 5 percent, according to MarketScout, an insurance exchange based in Dallas, Texas.

Depending on the type of b usiness SEE INSURANCE RATES PAGE 9 

INSIDE

POINTS OF INTEREST: UNINSURED KENTUCKIANS PAGE 3 • BRIEFS PAGE 4 • WHO’S WHO IN LEXINGTON PAGE 6 • BUSINESS BOOK REVIEW PAGE 8 ACHIEVING AFFORDABLE HEALTH CARE PAGE 10 • BROWNFIELDS AND URBAN RENEWAL PAGE 14 • MARKETING GREEN PRODUCTS PAGE 16 E-PROCUREMENT PAGE 18 • BIZLISTS: MANUFACTURING EMPLOYERS PAGE 20 • PARTING THOUGHTS PAGES 24-25 • LEADS PAGE 26

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The i know expo is a special event especially for seniors and those caring for loved ones.

Scores of experts who know about aging well and coping with disabilities will be on hand to share what

they know. Chat with them one-on-one or attend informative presentations on everything from housing, healthcare and insurance, to legal and financial planning, to living well and staying active. All the things you need to know to make the years to come as good as the years gone by. Want to join us as a sponsor or grab one of the few exhibitor spaces still available? Please visit our website or contact Laura Dake at 859.351.0460.

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Uninsured in Kentucky

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According to the Kentucky Health Issues Poll, funded by the Foundation for a Healthy Kentucky and the Health Foundation of Greater Cincinnati, the percentage of Kentucky adults ages 18-64 who have been uninsured at some point during the past year has risen from 31 percent to 41 percent since 2008.

At the same time, for those Kentucky adults who are insured, the percentage who are dependent on public insurance (including Medicare, Medicaid, and military insurance) has more than doubled, from 11 percent to 27 percent, and the percentage enrolled in employer-provided health insurance programs has dropped by almost one-third, from 55 percent to 37 percent.

The polling analysis did not include adult Kentuckians over age 65, because 98% of those senior Kentuckians are insured.

Type of insurance coverage for Kentucky adults ages 18-64 (Percentages may not add to 100%. Response “don’t know” is not included.)

60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

55%

•

44%

•

46%

•

33% 23%

•

26%

15%

17%

• •10%

• 7% •

2008

2009

11%

43%

•

• • 10% •

2010

37%

Uninsured

27%

Public Insurance*

19%

• 28% •

6%

8%

2011

2012

32%

•

EmployerProvided Insurance

•

•

•

•

Other

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* Medicare, Medicaid, military benefits and combinations of the three.

According to the poll, which was conducted in September/October 2012: 3 in 10 adult Kentuckians ages 18-64 (28%) were currently uninsured.

4 in 10 Kentucky adults ages 18-64 (41%) had been uninsured at some point in the previous 12 months.

Small Business Lending

Percentage of Kentucky adults ages 18-64 who were uninsured currently or at any time in the last 12 months

45%

38%

40%

35%

31%

30%

•

25%

23%

20%

• •

36%

33%

• 26%

•

15%

10%

5%

•

10%

•

5%

•

2008

2009

2010

8%

0%

•

40%

• •

32%

41%

•

•

28%

•

8%

•

13%

2011

2012

Source: The Kentucky Health Issues Poll, February 2013, funded by the Foundation for a Healthy Kentucky and The Health Foundation of Greater Cincinnati.

Uninsured at some point in the last 12 months, including currently No current insurance Currently insured but uninsured at some point in the last 12 months

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4 in 10 adult Kentuckians ages 18-64 (43%) living at or below 100% of the federal poverty level were currently uninsured.

3 in 10 adult Kentuckians ages 18-64 (29%) living at between 100% and 200% of the federal poverty level were currently uninsured.

Business Lexington • March 1, 2013

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Smucker plans $43 million investment in Lexington Jif plant

refreshments. A reduced fee of $95 is offered if registering two or more people.

The J.M. Smucker Company, plans to retain 279 jobs and invest more than $43 million in upgrades to its Lexington Jif peanut butter facility. The company plans to upgrade machinery, equipment and expand product lines to meet increased demand. The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved Smucker for tax incentives up to $2 million through the Kentucky Reinvestment Act.

In addition, the EEC is offering a special discount price of $95 for UK faculty, staff and students. The promo code for UK employees and students to register on the website is SPCHWDisc3-8-2013.

TQL expanding in Lexington, creating at least 75 jobs by 2015 Total Quality Logistics (TQL) will expand its Lexington facility, creating at least 75 new, fulltime jobs by 2015. The expansion represents an investment of more than $1.7 million.

TQL is the nation’s second largest freight brokerage firm, specializing in arranging the transportation of truckload shipments for thousands of companies across the country.

With more than 60 employees in Lexington and 2,000 nationwide, the 16-year-old company facilitates the movement of nearly 700,000 shipments each year for thousands of customers in various industry segments. “Lexington gives us access to outstanding professional talent. That’s why we’re here,� said Kerry Byrne, TQL executive vice president. “We need highly motivated sales people to help us serve an increasingly larger share of the $350 billion truckload transportation market.�

KEDFA preliminarily approved the company for performance-based tax incentives up to $800,000 through the Kentucky Business Investment program.

Supply Chain Forum set for Mar. 8 Some of the biggest corporate names in logistics will be part of the third annual Supply Chain Forum, being hosted on Friday, March 8, by the Executive Education Center (EEC) of the University of Kentucky’s Gatton College of Business and Economics. Featured speakers at the day-long event to be held at Fasig-Tipton in Lexington include leading executives from UPS and LeanCor.

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The theme for the dayâ&#x20AC;&#x2122;s activities is â&#x20AC;&#x153;Transforming Supply Chainsâ&#x20AC;? and includes an indepth look at several major topics, with sessions such as â&#x20AC;&#x153;Your Supply Chain Delivered,â&#x20AC;? â&#x20AC;&#x153;Bringing Manufacturing Back on Shore,â&#x20AC;? â&#x20AC;&#x153;Lean Leadership,â&#x20AC;? and â&#x20AC;&#x153;Merging Your Supply Chains.â&#x20AC;?

A panel discussion on agility and flexibility needs in supply chain will include panelists from Lexmark, Toyota Motor Manufacturing of Kentucky and Procter & Gamble.

In addition, representatives from General Electric, American Standard, Valvoline, Sylvania, Tempur-Pedic and Humana are participating in the forum.

The event is open to all and requires a registration fee. A cost of $135 pays for all materials, continental breakfast, lunch and

Business Lexington â&#x20AC;˘ March 1, 2013

To sign up for the event, go online to www.gatton.uky.edu/eec. For more information, call 1-800-284-6407.

Business volunteers needed for â&#x20AC;&#x2DC;dose of realityâ&#x20AC;&#x2122; program The University of Kentucky Cooperative Extension Service is calling on area businesses to help introduce college students to the financial realities associated with adulthood. The service is hosting a financial simulation program about the provision of food, clothing, shelter and more for a family and how these relate to career choices.

The program, Itâ&#x20AC;&#x2122;s Your Reality, provides students with the equivalent of one monthâ&#x20AC;&#x2122;s salary for the career they intend to have after graduation. Participants go through a â&#x20AC;&#x153;storeâ&#x20AC;? purchasing housing, transportation, child care, and more. By the end of the simulation, students understand the correlation between career, lifestyle and education.

The simulation is designed to help young women and men between the ages of 18 and 22 understand the impact of decisions made today or shortly after graduation on the course of their whole lives â&#x20AC;&#x201D; decisions about educational paths, career options, lifetime mates and family living.

The Itâ&#x20AC;&#x2122;s Your Reality program will be held on Wednesday, March 20, from 11 a.m. to 2 p.m. in the Student Center Grand Ballroom.

Organizers are currently recruiting volunteers to work the different â&#x20AC;&#x153;boothsâ&#x20AC;? at the store.

If you or your business are interested in volunteering or for more information, contact Jennifer Hunter (859) 257-3290 or Katie Keith (859) 257-2097.

Governor given five-year strategic plan for agriculture The Kentucky Agriculture Council (KAC) unveiled its five-year strategic plan for agriculture at a ceremony in the Capitol Rotunda.

As the steward of strategic planning for Kentucky, KAC established a task force on the future of agriculture with representatives from its 80-plus member organizations with three co-chairs: Keith Rogers, 4-H Foundation; Todd Clark, Council for Burley Tobacco; and Sharon Furches, Kentucky Women in Agriculture.

For more than a year, KACâ&#x20AC;&#x2122;s taskforce met and held public forums to gather input from across the state to guide the strategic plan.

The plan includes seven core strategies with recommended actions to drive Kentuckyâ&#x20AC;&#x2122;s progress.

Next generation farming is aimed at making the industry attractive and accessible to the next generation of both full-time and part-time aspirants, including those from diverse, non-traditional groups including retirees, women, minorities and urban dwellers.

New markets identification and development is intended to increase on-farm incomes and strengthen economic vitality of rural areas through continuous identification and development of new market opportunities.

Regional agricultural and rural community development encourages region-specific agricultural development projects and initiatives through funding from the Agricultural Development Board.

Agricultural education will promote, advocate for and expand the number of schools offering programs by linking the contribution of agricultural education to “Unbridled Learning” college and career readiness for all, Kentucky’s new accountability model.

Consumer education and outreach will engage with Kentucky consumers to increase their trust in the state’s agricultural producers and products. It will also aim to build consumer appreciation of the benefits of agriculture economically to the state as a whole and at the individual county level, and in terms of its role in ensuring the sustainability of Kentucky’s culture and a rural lifestyle.

Government policies, initiatives and programs will be developed, along with funding streams, to support the overall health (economic and environmental) of farms in Kentucky, as well as to lead to increased net farm income. Another aim of this core strategy will be to ensure that all Kentucky Agricultural Development Fund (KADF) proceeds are invested with a purpose of improving the net farm income.

Finally, policymaker education and outreach will be implemented to ensure all legislators and policymakers at local, state and national levels understand the economic and community impact of Kentucky’s agricultural sector — “an implementation plan for the Strategic Plan.”

Farm Bureau Farm Equipment Auction set for March 9 The 30th Annual Fayette County Farm Bureau Farm Equipment Consignment Auction will take place at the Kentucky Horse Park on Saturday, March 9, beginning at 9:30 a.m.

This annual auction not only is a great place for producers to find equipment, but it is also the main fundraiser for the Fayette County Farm Bureau Education Foundation. All proceeds from the auction go toward the Fayette County scholarship program. Since 1996, the Fayette County Farm Bureau has given out 28 scholarships to high-school seniors, awarding more than $587,000 in scholarship monies.

Tractors, boats, hay balers, trailers and a wide array of farm, lawn and garden equipment will be on sale at the auction.

Fayette County Farm Bureau will begin accepting equipment for the auction at the Horse Park on Thursday, March 7, and continue on Friday, March 8. No equipment will be accepted for sale on the day of the auction.

A $5 parking fee will be charged by the Horse Park the day of the sale. For more information, contact Carrie Johnson at the Fayette County Farm Bureau at (859) 253-0023.

THE GRAMMAR GOURMET

A R T M AT T E R S T O U S A L L

On Pistils, Peat Moss, and pH

BY NEIL CHETHIK

As crocuses and daffodils emerge from the frozen winter, you may choose to keep a garden journal. Be as careful with your spelling as you are with your seedlings. Here are a few forget-me-nots for perennial mis-spellers.

Aerate: When loosening your soil so your plants’ roots can breathe, you may think you are “airating,” The correct spelling (with an e as the second letter) has its roots in Latin.

Biennial/Perennial: Flowers that die each winter are annuals. If they come back for a second year or more, they are biennials or perennials. The Online Etymology Dictionary says the vowel change (from a to e as the third letter) is due to a Latin phonetic law that states that in the "unaccented and closed radical syllable of the second element of compound words," the original a becomes e. How obvious!

Chlorophyll: This is a spelling champion’s nightmare, with a second h, o, and l. It describes the green substance in plant cells that uses solar energy to make food.

And our Pacesetters know it.

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Deadheading: This verb, which describes the act of pinching off wilted flower blooms, is one word and requires no hyphen.

Drip line/Topsoil: The compound noun, "drip line," remains two words while the compound noun, "topsoil," collapses into one. It's as mysterious as Mother Nature herself.

Humus: The organic matter that comes from decaying leaves should not be confused (especially at meal-time) with "hummus," a Middle Eastern food made from garbanzo beans.

Peat moss: Neither "peet moss" nor "pete moss," this is soil consisting of decaying plants.

Pistil: It has nothing to do with guns (pistols), but is rather the seed-bearing (female) organ of a flower, made up of the ovary, stigma, and style. pH: This measures the acid/alkaline level of soil. It is an abbreviation for "power of hydrogen." The H is capitalized because it is standard to capitalize element symbols.

Dig? Neil Chethik, aka the Grammar Gourmet, is executive director at the Carnegie Center for Literacy and Learning (www.carnegieliteracy.org) and author of FatherLoss and VoiceMale. The Carnegie Center offers writing classes and seminars for businesses and individuals. Contact Neil at neil@carnegiecenterlex.org or (859) 254-4175.

Business Lexington • March 1, 2013

5

BusinessLexington TOM MARTIN Editor in Chief tom@bizlex.com

SUSAN BANIAK Features Editor susan@bizlex.com

ERIK A. CARLSON

Reporter/Editor • Weekly Wire erik@bizlex.com

WHO’SWHO EMPLOYMENT AND AWARDS IN OUR COMMUNITY

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HYMSON

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PLYMALE

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MCDANIEL

DREW PURCELL Art Director drew@bizlex.com

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ACCOUNT EXECUTIVES

CHUCK CREACY chuck@bizlex.com

LINDA HINCHCLIFFE linda@bizlex.com

STEVE O’BRYAN steve@bizlex.com

ANN STATON

New Hires & Promotions J. Keith Fowlkes has been named director of information technology services and chief information officer (CIO) at Centre College, beginning May 1.

Fowlkes most recently served as vice chancellor for information technology and CIO at the University of Virginia’s College at Wise.

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chuck@smileypete.com 434 Old Vine Street or P.O. Box 22731 Lexington, KY 40522-2731 (859) 266-6537 • (859) 255-0672 (Fax) www.smileypete.com For licensing and reprints of content, contact Wright’s Reprints at (877) 652-5295.

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Miller Wells, PLLC has announced that Earl (Chip) Hamm and Michael T. Hymson have joined the firm.

The Lexington Cemetery & Crematory has named Mark C. Durbin as president and general manager. He succeeds Daniel R. Scalf, who has retired effective February 1, 2013. Prior to this promotion, Durbin served as assistant general manager.

McBrayer, McGinnis, Leslie & Kirkland, PLLC has announced that Brittany C. MacGregor, formerly of Fogle Keller Purdy PLLC, has joined the firm’s real estate practice group as an associate.

Lexington Clinic Foundation has announced that Allen McDaniel has been appointed as development manager.

Jeremy Cron has joined Forcht Bank’s commercial banking team.

He previously worked for PNC. Frost Brown Todd has recently named Richard E. Plymale and David C. Trimble as members of the firm.

Shannon Antle Hamilton, an employment law attorney with Stites & Harbison, PLLC, has been named to fill the firm’s newly created position of chief talent officer. Hamilton will oversee the firm’s efforts to attract and retain top legal talent in its nine of fices throughout the southeastern United States.

Kudos Local engineering firm Stantec has received the Grand Conceptor top award for engineering excellence in the American Council of Engineering Companies/Kentucky

Business Lexington • March 1, 2013

WHO’S WHO FOR YOU?

TO SUBMIT YOUR WHO’S WHO NEWS EMAIL A PRESS RELEASE AND PHOTO TO INFO@BIZLEX.COM Engineering Excellence Awards for its design of the reconfigured Harrodsburg Road (US 68) interchange at New Circle Road (KY4) in Lexington. The design solution, known as a Double Crossover Diamond (DCD), was the first in the state and only the sixth in the nation when it opened to traffic in August 2011. The Kentucky Transportation Cabinet (KYTC) has credited it with improving safety, saving costs and

easing congestion at the highly travelled interchange.

Stoll Keenon Ogden PLLC is pleased to announce that the firm has been named a Client Service ATeam for 2013 by BTI Consulting Group, a leading provider of strategic market research for professional firms. Also, attorney Kendrick Riggs was chosen as a BTI Client Service All-Star for a second consecutive year.

STAMPS’ COLLECTION

WELL-DESIGNED SPACE PHOTO BY EMILY MOSELEY

The staff of Alt 32, seated, from left to right, Michael Sparkman, AIA, LEED AP, and Matthew Brooks, AIA. Standing, from left to right, Pamela Clements, AIA; Marcus Highland, AIA; Jason Milstead, associate AIA, LEED Green associate; Katrina Littrell, AIA; Darren J. Taylor, associate AIA; Michael Mead; and Becca Cox, LEED AP

By Kathie Stamps COLUMNIST: INDEPENDENT BUSINESS

L

exington’s downtown revitalization is making for an exciting time to be an architect. Just ask the nine-person architectural firm Alt32, all of whom are design professionals.

One of the adaptive reuse projects they’re working on is for T ransylvania University, turning a former industrial facility into the school’s field house for field hockey, lacrosse, soccer and track, with an expected opening this fall.

“Transy has a good track record of doing good projects in our community,” said Michael Sparkman, co-owner of Alt-32.

The university is purchasing other vacant, derelict properties down Fourth Street, in line with its acquisition of a warehouse on Third Street, which became the campus bookstore.

“It was brilliant,” Sparkman said of the 2012 bookstore project. “It made an immediate improvement to the entire block, which helped spur Linda Carroll and John Morgan, Tim Mellin [Doodles restaurant] and all those people to invest.”

Carroll and Morgan are owners of Morgan Worldwide Consultants. For their of fice space on East Third Street, Alt32 is renovating an abandoned circa-1800s residence.

“It’s bringing back a building that had

been pretty much lost,” said Darren T aylor, Alt32’s project manager and vice president of business development. He has a master’s degree in architecture and historic preservation and volunteers at the Blue Grass T rust for Historic Preservation.

“We’re community members — not by having an office here and living here, but by getting involved, volunteering, knowing what’s happening and helping in any way we can,” Taylor said. He has a particular interest in creating contemporary additions to historic properties. He and Sparkman have high praise for the city’s Board of Architectural Review.

“It’s a great process, one we like work-

Business Lexington • March 1, 2013

ing with,” Taylor said.

“They’re protecting the quality of the historic fabric of the city,” Sparkman added.

Whether contemporary or historical — or both — good design is great. Good design that’s relevant is even better . But the best thing Alt32 brings to the table is problemsolving.

In designing the Harlan Independent Humanities Building, in Harlan, Ky., Alt32 architects knew that band members spend an inordinate amount of time going into the instrument closet, one or two students at a time, to grab an instrument. So the architects lined the perimeter of the space with instrument closets.

“They became acoustic buf fers to the room themselves,” said Matthew Brooks, coowner of Alt32. “Pushing storage out to the perimeter walls increased teaching time.”

When a tor nado hit Salyersville on March 2 last year , the Magof fin County school superintendent called Alt32’s Sparkman the next day.

“As soon as he called, I knew what the problem was,” Sparkman said.

About 40 percent of the academic buildings had been destroyed and were unable to be occupied.

“He needed an architect and an engineer to come down and evaluate and give them direction,” Sparkman said. “I went down that day. It was a mess.”

The architectural firm organized a supply drive in the of fice to help out folks in Magoffin County, as the entire community got hit hard. Professionally, Sparkman and Alt32 knew the paperwork process and the players at the table, as well as the history and values of the district. They were able to provide advice to the superintendent and school board members. Because it was a state of emergency, Alt32 could have been awarded the design project directly, but the fir m insisted on a public bid.

“We wanted local labor in Kentucky to benefit from construction,” Sparkman said.

The insurance carrier got to see competitive bidding, and it took just an extra 30 days to make it happen. Alt32 was able to get Magoffin County High School on line over the summer, putting steel in the masonry to stabilize the building.

“We do architecture because that’s what we’re trained to do,” Sparkman said. “But it’s more about helping the community. We can do schools all day, but fighting for their in terests is really what we’re interested in.

That’s what makes us feel good: to see kids going back to school.”

Brooks agreed.

“It’s bigger than us,” he said. “That’s why we’re proud of the project.”

“I call it tur ning the office inside out: taking the core of what we do and sharing it with the community,” said Alt32’s T aylor.

“It’s not just all about computers and Tsquares. It’s about human engagement and interaction.”

Formerly employees with Lucas/Schw ering Architects, Brooks and Sparkman acquired ownership of that fir m in July 2008.

They still occupy the same space on Old Vine Street. Anticipating a name change from the beginning, the owners were in no hurry to order new business cards.

“We knew it had to be something contemporary, something progressive,” Sparkman said. “The name needed to be synonymous with the practice.”

He and Brooks also wanted a short and novel URL. Opening up the name game to the staff produced a winner in June 2012, and ASCII code fans recognize it too. Alt32 is the keyboard shortcut for “space.”

Kathie Stamps posts grammar tips at www.facebook.com/GrammarTips.

7

BUSINESS BOOK REVIEWS

Unlock clues for understanding behavior and breaking routine

R

obert LoCascio, founder and CEO of LivePerson, a company that provides online customer assistance and other services to businesses, recently described in an interview with The N ew York Times a moment when he felt his company was falling into a patter n that didn’t make sense.

The company offices were arranged with cubicles in the middle and offices on the outside. W alking PAUL through, he noticed SANDERS two guys jammed into BUSINESS BOOK one tiny of fice, deREVIEWS spite many open cubicles. When he asked why, he was told that the guys had been promoted to directors and the habit was for directors to get offices — so there they were.

Businesses, just like individuals, are creatures of habit. Building and using positive habits can strengthen a business. That’s among the ideas presented by author Charles Duhigg in his book The Power of Habit: Why We Do What We Do in Life and Business.

The book comes highly recommended: The Wall Street Journal and The Financial Times both named it one of the best books of 2012. Duhigg, however , is not a business theorist or sociology expert.

He became interested in the science of

habits eight years ago while in Baghdad as a newspaper reporter.

Duhigg encountered a major who had analyzed videotape of riots. The major noticed that if food vendors came into a plaza where a potential outbreak might happen, a full riot was likely to ensue. By keeping the vendors out of the plaza, the crowd would usually break up on its own. Removing the food vendors changed the crowd’s behavior.

The major confided to Duhigg that the U.S. military is one of the best examples of habit formation in history. Understanding habits, according to the major , was one of the most important things he had learned.

Duhigg was hooked on the idea and began to investigate the power of habits.

The result is an intriguing look at the impact of habits and how we can use them to greater effect in a variety of ways.

The book is a combination of research and stories that makes for a fascinating read.

The author reviews a broad range of ideas and topics, including how habits are made and can be remade.

In the opening chapter of the book’s first section, “The Habit Loop,” the author explains what a habit is. By some estimates, habits make up 40 percent or more of our daily routine. To form a habit, first there is a cue, then a routine, followed by a reward.

Companies use this process to sell products and services. The second chapter, “The Craving Brain,” gives the example of Pepsodent. At a time when few Americans brushed their teeth, then famous marketer Claude Hopkins applied rules for creating

habits to toothpaste and soon made Pepsodent one of the best-known products in the world. Hopkins found a particular cue and reward that created a habit — and his ideas have been used by marketers ever since.

More recently, the author notes, Febreze went from near bust to revenues of more than a billion dollars a year . By positioning the product as a fun habit to be done after every housecleaning, sales tur ned around and soared.

In “The Golden Rule of Habit Change,” the topic of habits takes a slightly darker turn. Habits are not as simple as they appear, the author states, citing examples of the habits of alcoholism and compulsive gambling. Habits, he insists, are not destiny. If we understand how habits function, we can change any habit.

“Hundreds of habits influence our days; they guide how we get dressed in the morning, talk to our kids, and fall asleep at night,” Duhigg says. “Each of them has a dif ferent cue and offers a unique reward.”

“But every habit, no matter its complexity, is malleable. To modify a habit, you must decide to change it. Y ou must consciously accept the hard work of identifying the cues and rewards that drive the habit’s routine, and find alternatives.”

With the development of positive habits, the least skilled manager can become a successful one. The most dysfunctional company can transform itself.

The second and third sections of the book provide a cross section of examples and stories of how companies, groups and

even a church, changed habits successfully.

Starbucks provides an interesting business case study for success, but the chapter on “How Target knows what you want before you do” was an eye-opening look at how companies manipulate habits.

Duhigg insightfully applies his ideas on habits to a broad range of topics, ensuring that we understand the impact habits have on so many aspects of our lives and work.

He also underscores that we have the freedom and responsibility to remake our habits.

This book provides an intriguing and entertaining look at the power of habits.

The Power of Habit Why We Do What We Do in Life and Business

BY CHARLES DUHIGG RANDOM HOUSE; FEBRUARY, 2012

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Business Lexington • March 1, 2013

Insurance rates CONTINUED FROM PAGE 1

(transportation, manufacturing, hospitality, retail, etc.) and loss experience, a business owner may pay more than a 5 percent increase at renewal. As a local independent agent, I have seen anywhere from a 3 percent to 20 percent increase on renewals. Many analysts predict the increase in pricing will continue through 2013.

The current insurance market is not considered a hard market; however , it is definitely starting to firm up. This past year was the first time in approximately seven years we have seen a steady increase in pricing. The last time we experienced a hard market was from 2001 to 2005. Since that time, rates have decreased consistently year after year, producing what is known as a soft insurance market.

A soft market is a classic buyer’s market, where many insurance companies are competing against each other to offer favorable pricing with lower deductibles and the best coverage available. During a soft market, business owners will see more insurance companies active in the marketplace and willing to write a variety of businesses taking on more risk. During a hard market, insurance companies will have stricter underwriting guidelines and be selective on the types of risk they want to write. Business owners will also pay much higher premiums and possibly have higher deductibles with limited coverage, compared to that of a soft market.

A hard market usually follows a major catastrophe such as 9/11, when the last

hard market began. Prior to 9/11, rates were already on the rise in 2001, and with the tragedy of 9/11 totaling more than $32.5 billion in losses, reinsurance rates increased, affecting the entire marketplace.

Many business owners may not understand why their insurance premiums are increasing when they have not experienced any losses. There are many factors that an insurance company takes into account when underwriting an insured’s business. Some of the factors they will look at are the type of business one is operating and losses associated with that type of risk, as well as the business loss history over the past five years.

Insurance companies’ combined loss ratio, reinsurance cost, return on investment income and reserves will also play a part in the underwriting process. Many insurance companies operate with their combined loss ratio hovering around 100 percent, therefore investment income is an

important part of an insurance company’s success.

Insurance companies also purchase insurance, which is known as reinsurance.

Reinsurance contracts are negotiated and renewed annually. If an insurance company has a bad loss year, it may affect the pricing of their reinsurance contracts.

Catastrophe losses, such as Hurricane Sandy, also play a role in reinsurance pricing. The cost associated with Hurricane Sandy is estimated to be $50 billion, which ranked as the second costliest in U.S. history. Hurricane Katrina cost a record $108 billion in 2005.

One of the reasons for an increase in local pricing is that many insurance companies suffered large losses in Kentucky this past year . The majority of those losses were due to the tornadoes and hailstorms that ripped through the state.

These losses have had an effect on the local insurance market and will continue to do so

in the coming year.

Although pricing is on the increase, it would not be wise to focus on pricing alone when purchasing insurance. Having the proper coverage in place should always outweigh the cost. It is an insurance agent’s responsibility to understand the risk associated with one’s business and to recommend the appropriate coverage.

Having risk management controls in place will help reduce the cost associated with an insurance program.

A prudent business owner will ensure that his or her business is insured properly.

Contact a local independent insurance agent to make sure the proper insurance program is in place for your business.

Tom Mays is a certified insurance counselor and commercial lines producer with GCH Insurance Group. Mays can be reached at (859)494-8665 or by email at tommays@gchinsurance.com.

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Business Lexington • March 1, 2013

9

PAR

T

FOUR

OF

SERIES:

Achieving ‘affordable’ health care

his series on the Af fordable Care Act (ACA), also known as “Obamacare,” has examined major changes coming to health insurance coverage, the healthcare delivery system and its workforce. But, a frequently asked question about the ACA is whether it can live up to its name (and the hype) and make health care actually affordable.

There are two DOUGLAS levels to this question.

MCSWAIN At the micro level, will the ACA reduce the CONTRIBUTING WRITER cost of health care for you, your family and business?

At the macro level, will it reduce spending in massive public programs such as Medicare and Medicaid? Understanding the ACA’s provisions to achieve affordability will provide a framework for evaluating news about the ACA and health-care policy in America.

The effect of the ACA mandates Perhaps the most significant tool to achieve affordability is the ACA’s mandates.

As you’ve probably heard by now, the individual mandate requires individuals to obtain health coverage or pay a penalty.

Likewise, the employer mandate requires large employers to of fer coverage or pay a penalty. These mandates encourage people and businesses to obtain health coverage, and the more who do so should, in theory, make coverage cheaper for everyone.

The mandates are only ef fective, however, if the penalties are severe enough to induce the purchase of coverage. To encourage a buyer not otherwise disposed to purchase, the penalty must outweigh the perceived cost of no coverage. In this respect, some have questioned whether the ACA imposes penalties severe enough to induce widespread compliance.

Determining what penalty will encourage coverage without being too costly is tricky because if coverage itself costs too much, the penalty may never be high enough. The individual penalty for the year 2014 totals $95 per person or 1 percent of income, whichever is greater, and annually rises to $695 or 2.5 percent of income by the year 2016. The penalty is incurred for any month in which a person is not covered.

After 2016, it will be adjusted in accordance with cost-of-living increases.

The employer penalty depends on size.

For businesses employing 50 or more fulltime equivalent employees, the penalty is $2,000 multiplied by the total number of employees unless affordable health coverage is offered to 95 percent or more of them. However, the calculation of this penalty exempts the first 30 employees, which softens the incentive to comply if businesses employ only, or just above, the 50-employee threshold.

The incentive strengthens the more employees there are over 50. For smaller businesses (less than 50), there is no penalty at all. The only incentive for businesses with 25 or fewer employees is substantial tax credits.

The ACA’s “play or pay” mandates and tax credits will not attain universal coverage; the non-partisan Congressional Budget Of-

10

T

fice (CBO) recently projected that by 2023, there still will be 29 million Americans uninsured. However, because of the ACA, over the next decade, 27 million more Americans will be covered, as compared with 56 million uninsured now.

These newly covered people will constrain the rising costs of health care for everyone, over time. The CBO projects a 6 percent reduction in per person spending in Medicaid by 2020 and a 5.5 percent reduction in spending growth in Medicare due to the ACA.

The countervailing effect of ACA coverage requirements The ACA forbids exclusions of pre-existing health conditions and discrimination against those who are otherwise unhealthy.

It requires insurers and employer plans to “guarantee” coverage regardless of health and to set premiums in accordance with local population health factors —called “community rating” — that do not vary based on any one individual’s health status.

Current market practices include avoiding coverage for unhealthy people, and if these people obtain coverage at all, premiums are typically higher for them to ensure the ability to pay their anticipated claims. As a result, small to mid-sized group plans and policies with many unhealthy beneficiaries tend to pay the highest rates, and their premiums jump exorbitantly following expensive claims years.

Under the ACA, this will change. Community rating should rein in ever -increasing premiums, regardless of prior claims history or anticipated claims of unhealthy people. For individuals with poor health and plans cov ering the unhealthy, the ACA should provide much needed cost relief and be very af fordable. But to young and healthy individuals and plans covering primarily healthy groups, premiums in 2014 could cause sticker shock.

While the ACA permits smoking and age-re-

lated factors to vary premiums somewhat, community rating will likely cause premiums for covering the young and healthy to spike higher, perhaps substantially.

The ACA’s benefit requirements may also cause premium increases. The ACA requires coverage for “10 essential health benefits” that some insurers and plans currently do not cover, and do not factor into rates.

These benefits include preventative care for which no co-pay or deductible may be collected. Preventative care promotes wellness and early intervention for diseases and conditions that cost even more to treat later. The ACA emphasizes prevention and wellness by eliminating out-of-pocket costs for such care.

But, not surprisingly, premiums may very well increase to cover these new essential benefits, never before covered.

Once premiums absorb the expense of the ACA’s essential benefits, premiums should stabilize and the need for steep annual increases after 2014 should decline, as insurers and plans enter post-ACA market equilibrium. In time, if utilization of wellness and prevention benefits reduces long-ter m health costs as predicted, the typical pattern of yearly increases in premiums could finally be broken. Because insurers and plans must provide the same benefits for everyone regardless of health, in 2014 and beyond, market forces should further constrain future increases by focusing competition on proper pricing of premiums rather than on avoiding claims of the unhealthy.

Other ACA provisions to rein in health-care costs As pointed out in previous Business Lexington articles (published Dec. 20, 2012 and Jan. 3, 2013), the ACA’s anticipated increase in coverage for Americans will allow hospitals and medical providers to stop shifting the cost of charity care for uninsured people to everyone else. This should end

ONCE PREMIUMS ABSORB THE EXPENSE OF THE ACA’S ESSENTIAL BENEFITS, PREMIUMS SHOULD STABILIZE AND THE NEED FOR STEEP ANNUAL INCREASES AFTER 2014 SHOULD DECLINE, AS INSURERS AND PLANS ENTER POST-ACA MARKET EQUILIBRIUM.”

Business Lexington • March 1, 2013

the push to raise prices to cover such costshifting. Furthermore, the ACA’s payment and delivery reforms should bring savings to Medicare. And, as private insurers and plans replicate such reforms, similar cost savings should be achieved for individuals and employers as well.

Another ACA affordability provision is the medical loss ratio (MLR) rebate. The MLR limits insurers from collecting too much premium relative to payout in claims. If they exceed the MLR, they must retur n the excess.

The MLR should constrain insurers from raising premiums too much because if they do, they’ll have to distribute a rebate.

Conclusion

The ACA takes numerous steps to make health care more affordable in the long run.

In 2014, however, market disruption is very likely, as the cost of covering the young and healthy will probably increase, while the cost of covering older and less healthy people may change little, or even decline. For insurers and plans that don’t currently cover the ACA’s “10 essential health benefits,” including preventative care, premiums can be expected to rise. But by 2015, markets will have adapted to the ACA’s changes, and competitive forces should start constraining further premium increases in health benefits coverage.

At the macro level, the ACA’s many market and delivery refor ms should bend the cost curve to more sustainable levels in public programs such as Medicare and Medicaid. If the CBO’s projections for spending in these programs come true, that will indeed be good news for us all.

Douglas L. McSwain is a partner at the law firm of Wyatt, Tarrant & Combs, LLP. He advises and litigates for clients in areas related to health care, employment, trade, regulatory and constitutional law.

Parking CONTINUED FROM PAGE 1

The current problems

said. “People don’t usually have more than a quarter or two in their pocket, and so expecting people to have four quarters on them to pay for an hour was kind of a lot to ask.”

The adjustment to the pay-and-display stations has been smooth in the UK area, Means said, and the system has been popular among UK students.

“However, in downtown there’s been a lot of pushback ... for a lot of reasons,” Means said. “It still has been a culture shift.

We have found it is really dif ficult to make happen.”

Michul said. “W ith that being said, some who don’t frequent or are not familiar with downtown still perceive downtown parking to be inconvenient, generally unavailable and expensive. As one who has worked downtown for many years and is very familiar with downtown parking, I can tell you that this simply isn’t true.”

“I think there is a perception that there is nowhere to park, that you can never find a spot,” Jackson said. “I would say that five or six years ago that was probably the truth, as far as on-street [parking] goes. But since the Parking Authority came into being in 2008, I think there is an availability of onstreet.”

But while the Parking Authority has greatly improved the tur nover in on-street parking that downtown businesses need to encourage patronage, its new technologies have received mixed reviews. The pay-anddisplay stations installed in and near downtown were intended as an added convenience for both parking patrons and enforcement staff, according to LexPark Executive Director Gary Means, but business owners in some areas, such as on Chevy Chase’s Euclid A venue and along Short Street, have requested their removal.

“At the time [when parking rates were increasing], it was a solution to ... give people the option of how to pay,” Means

have grown substantially in recent years.

“On-street used to generate around $400,000; now it’s up to about $1.5 million [since LexPark began operations and enforcement],” Means said. “W e can take some of that surplus and put it into these garages, which is what we’re doing.”

In addition to making improvements in city-owned parking garages, Means said a group of parking operators led by LexPark is now meeting regularly to discuss parking issues, and they have agreed to install universal parking signage that will feature a blue background with an encircled white letter P. Many of the new signs will also feature a tote board on the bottom to indicate the number of open spaces in the garage, he said. Private operators will also be able to incorporate the symbol with their own company name or logo.

“We have pretty much all the major owners or operators of downtown parking around the table,” Means said. “Everyone has realized we need to come up with something that tells the suburbanites and folks that aren’t used to coming downtown [to] look for this sign: it’s public parking.”

The new signage will be phased in as budgets allow, Means said. Cities such as Cincinnati have required parking lot operators to adhere to established standards for customer service, lighting levels and

Pursuing the quick fixes

There are immediate concerns that can be improved relatively easily, according to those with a vested interest in downtown parking issues. In some cases, steps are already underway to address them.

Long asked LexPark to remove the pay-and-display stations outside Dudley’s on Short and replace them with more traditional car-side meters, and the agency has already made the change. The individual meters are solar-powered, accept credit cards and also of fer a pay-by-phone feature.

“LexPark heard that, and they are doing something about it,” she said. “W e were thrilled that they listened to us and they responded.”

LexPark’s budget is generated solely through both parking fees and fines, which

parking rates in order to utilize universal signage. In Lexington, Means said, the effort has been more of a ground-up approach to improving the visibility of downtown parking, and it hasn’t required any governmental ordinance. However , the group is still discussing how the new signage will be funded.

“Our big thing right now is to go after low-hanging fruit, and that is to help people find parking,” Means said. “We may take it another step and say, ‘If you see this kind of sign, it means you won’t have to pay more than a certain amount per hour .’

That’s a second phase we’ll start to look at.

Right now it’s get everybody on board and get these signs started.”

In terms of better lighting in lots and garages, Benjamin Steffen, general manager for Central Parking Lexington, said that his company has been making improvements, including doubled the lighting in its lots earlier this year and changing the type of bulb used to a brighter variety.

“We’ve really taken a real hard look at what we’re doing with lighting and moved it around so it made a little more sense,” Steffen said. “[W e’ve] used that brighter , cleaner, white light that just makes everything seem more inviting, but at the same time doubled it.”

LexPark has also been working with a new mobile app called ParkMe, which can communicate the rates for the parking authority’s four parking garages — and

PHOTOS BY ERIK A. CARLSON

Debbie Long, owner of Dudley’s on Short, had some sleepless nights after she decided to move her restaurant from Dudley Square to its current location on downtown Short Street. One nagging question kept her up the most: Where were her customers going to park?

Suburban shoppers have grown accustomed to parking within view of their destinations, Long said. She was initially concerned that her diners might not be comfortable with downtown’s tucked-away private lots. But Long soon discovered that the concept of downtown parking wasn’t an inhibiting factor for her longtime patrons.

“We found that my guests really adapted easily to our downtown parking,” Long said.

According to Long, it’s not the concept of paying for parking or the short walk to the restaurant that creates a problem for her patrons. After two years in the downtown core, Long’s experiences with parking boil down to one overarching mantra: Parking should not be a complicated process.

“We’re thrilled with the growth in businesses downtown,” Long said, “but we know as retailers that we’ve got to provide

to seemingly illogical downtown parking patterns, as shown by one experience related by Jef f Fugate, the Lexington Downtown Development Authority president.

“I came down for the Thriller Parade. It was kind of rainy that night, and they had 12,000 people in attendance. ... I parked in the Transit Center Garage, which is across the street from where the festivities were occurring,” Fugate said. “I was one of 12 cars in a 700-car garage.”

He added, “That was free, by the way.”

Unpredictable pricing is a common complaint in downtown Lexington, where the rules and the costs commonly change during special events such as University of Kentucky basketball games and popular concerts. Poorly lighted parking facilities have also made some of the parking that is available less appealing for more safetyoriented consumers. But some still believe downtown’s parking problems are primarily the result of negative assumptions and lack of experience.

To encourage people to live, work and play downtown, said Ken Michul, director and executive vice president of leasing, brokerage and operations for The W ebb Cos., parking must be seen as safe, predictable, accessible and affordable.

“Great strides have already been made in this regard and plans are now being implemented by both the public and private sectors to make it even better ,”

customers with the best service they can have, and that starts from the minute they drive down here.”

The ticket-dispensing pay-and-display stations for on-street parking that were located outside her business, for instance, had not been as convenient for guests to use as traditional parking meters — especially in inclement weather . Payment procedures at nearby unmanned private lots were proving to be confusing and timeconsuming for patrons, with inconvenient lines at payment machines during busier hours, she said.

“To me the key to an urban setting is to make the parking easy,” Long said. “There is parking available, but it has to be easy for our guests.”

In addition to being as convenient as possible, parking also needs to be easily accessible and readily apparent, according to Renee Jackson, president of the Downtown Lexington Corp.

While surface parking lots are present downtown, it can be dif ficult to determine which ones are available for public parking.

“There is a lot of confusion about which lots are public,” Jackson said. “Even though they may say ‘parking,’ it’s not clear if it’s just for monthly parkers or if it’s for the public.”

That kind of confusion may contribute

Business Lexington • March 1, 2013

eventually the open space count — in real time.

To allow customers to avoid any lines at payment machines, Central Parking plans to have a pay-by-phone feature in place on its lots in time for the opening of Thursday Night Live, Steffen said.

According to Andrew Barlow, regional manager for Central Parking, such conveniences are quickly becoming the norm for the industry.

“Looking further into the future, more and more places are going to get away from equipment all together ,” Barlow said.

“You’re going to see garage systems that operate in the cloud, basically.”

Parking’s place in downtown development

From the perspective of developers and real estate professionals who operate in the downtown sector , it is dif ficult to overestimate the importance of parking in determining the economic potential of downtown Lexington.

“Parking is arguably the most important issue to the success of retail, of fice, restaurant, housing and appropriate urban planning,” said Phil Holoubek, developer of Main & Rose and the Nunn Lofts.

Holoubek cited a study conducted in

11

Wagoner, a retired Lexington retail architect and developer. (See commentary on page 24.) “Convenient parking is one reason retail left downtown and produced the glaring holes, now called sur face parking lots and blank storefronts.”

And making the best of an old parking system is not enough to build a vibrant downtown core, Wagoner said. In a new competitive landscape, we need to entertain new parking strategies and infrastructure solutions.

“In order to recruit new retail, we need a plan that includes convenient curbside parking coupled with a clustering of complementary retail uses,” W agoner said.

“We have never tried the two together .”

Catering to downtown customers

With the national economy showing some signs of recovery and increasing restaurant and entertainment activity in Lexington’s downtown sector, some believe there is no time like the present to start planning for more substantial changes in our downtown parking infrastructure.

Proponents hold that parking improvement initiatives ranging from the strategic construction of new parking garages to the use of angular street parking could be used to leverage new development, make downtown a more attractive destination and entice more retail businesses — both lar ge and small — to locate downtown.

Wagoner has spent more than 20 years helping to engineer some of the city’s more successful suburban developments, including Palomar Center, Regency Center, Tates Creek Centre and Lexington Green.

There are many development strategies, he said, particularly as related to vehicular traffic flow, that suburban malls and shopping centers have been using to their advantage for decades. W ith some adjustments, Wagoner believes that those same strategies could be used to make the PHOTO BY drive downtown less daunting for today’s ERIK A. CARLSON car-dependent consumers.

“The elusive downtown customer is Columbus, Ohio, that deter mined most in recent years — all of which could have complex and requires additional study, but downtown commuters would willingly opted for the suburbs, he said. In each case, one thing rings clear: when this customer walk only 800 feet to get from their parking the business initially wanted a single comes downtown, they do not walk, bus or space to their desk. parking option that could accommodate all bike — they drive,” W agoner said. “And “N ot to the front door of their of fice, of their employees. In the end, however , when they do, they are challenged by the but to their desk,” Holoubek said. “So you Michul said, “W e met their needs by multiple shortcomings of our disconnected can draw a circle around any property and providing spaces in attached garages, with parking systems, producing confusion, figure out how many parking spaces are the balance of needed spaces within one congestion and circumvention.” within 600 feet of that building and then block from the respective building at a Wagoner’s ideal plan for Lexington is determine if there is enough supply to meet more attractive cost structure.” one similar to the design of Greenville, S.C. demand.”

Michul said the Lexington Center Corp. The plan filters incoming traf fic from key If the available supply doesn’t meet has also been very cooperative in helping corridors such as Midland Avenue and High demand, Holoubek logically concluded, to meet such parking challenges, and his then prices for parking could be expected company also recently purchased a lot at to rise. The rising cost of available parking the corner of High and Broadway to meet would make a location less costthe parking needs of tenants in its own competitive for employers in ter ms of rent buildings, as well as other nearby and the expense of of fice space, which businesses. Such assets and cooperative could, in tur n, reduce the building’s value relationships are key when potential and the resulting tax revenues. tenants are scouting out their downtown “So, there’s a lar ge economic impact options. even to the public sector when there’s not “Just last week we landed a lar ge enough parking in place,” Holoubek said. tenant with a significant parking Real estate activity downtown is requirement that operates three shifts,” picking up, according to Ken Michul, but an Michul said. “Their parking need was met issue like parking has the potential to stall in the building garage and on our High and that progress just as it is gaining speed.

Broadway lot. Since the LFC [Lexington “I’ve never seen more interest in Financial Center] garage is lightly used at downtown for of fice, retail and night and on weekends, Central Parking entertainment space, especially from was helpful in arranging parking there for Limestone west,” Michul said. “To keep the the second and third shift.” momentum going, to ensure that our In the hyper -competitive world of existing downtown businesses remain retail, with brick-and-mortar establishments successful and that we continue to bring fighting constantly against the loss of new businesses and residences downtown, ground to online competitors with lower overhead, convenient parking has become parking has to continue to be readily an absolute necessity. available and affordable.”

“Retail is a fragile-use category in Parking came into play recently in three of his company’s lar gest office deals today’s Amazon world,” said Robert

12

Business Lexington • March 1, 2013

Street in a natural way to open, ef ficient, accessible parking structures tucked behind Main Street. It encourages more welcoming storefronts and a pedestrian-friendly atmosphere, particularly on the city’s main thoroughfare. It also establishes walkable, well-landscaped sidewalks throughout downtown, with ample angled parking to serve more in-and-out retail clientele.

Too often, according to W agoner, downtown parking deteriorates into an urbanite version of survival of the fittest, where the choice spaces are dominated by those with downtown experience who are the most familiar with the terrain. As a result, newcomers are left endlessly circling blocks in confusion and frustration. This discourages repeat visits and the vital expansion of downtown’s customer base. It would also explain why opinions about the ease and availability of downtown parking can differ so widely among Lexingtonians.

“We learned the lesson long ago in suburbia, to incorporate lease language requiring employees to park in designated remote areas,” W agoner said. “In downtown, we must reassess current ‘reserved space’ locations, while balancing the politics of doing so. N ew customer oriented spaces are a part of the idea.”

Similarly, other cities have implemented limited free parking in their downtown areas to attract and encourage more of those first-time and short-time downtown visitors. But, as many are quick to point out, although it might help to level the playing field with suburban shopping destinations that have ample open parking lots, free parking never comes for free.

Even suburban malls must pay for the land that they use to provide parking, Fugate pointed out. And in addition to losing the revenue stream that comes from parking fees, which can be used to improve existing parking structures and possibly help to fund new ones, such free parking would also bring the added cost of enforcement, which would be necessary to ensure ample turnover and availability.

While free on-street parking is better than paid parking for encouraging downtown commerce, time limits on parking in a downtown setting are even more essential, Holoubek said, and that requires enforcement.

“Enforcement costs money,” Holoubek said. “Many cities are in a position where they can’t af ford to provide enforcement unless they collect revenue from the parking. We need to get to a place where we can provide the free parking and the enforcement.”

PHOTO BY ERIK A. CARLSON

In most cases in other cities, that enforcement would require an additional government allocation, Means said. Means added that most transitory downtown visitors typically conduct their business in less than two hours, and free parking would result in a significant reduction in the city’s parking revenue.

“When I observe one of these other cities trying to do free parking on the street, and I’m talking about cities with healthy downtowns like Greenville, the city, the council, the decisionmakers, have obviously come up with a way to allocate funds to fund this,” Means said. “Y ou have to enforce it or it will be abused.”

The need for new city-owned garages

Ultimately, on-street parking changes and improvement of the city’s current piecemeal layout of sur face lots and aging structures cannot address the needs of future development.

According to Holoubek, the new development that could result from public investment in newly established parking infrastructure is not hypothetical; it is waiting in the wings for the city to act.

“There are plans on the drawing board for projects throughout our downtown,” Holoubek said. “That said, for some of these projects to become reality, regardless of where they are downtown, publicly financed parking is going to have to be part of the equation.”

Holoubek has been lobbying for years for a new parking garage on the block where he owns property at Main and V ine streets, across from his Main + Rose development. Holoubek’s plan for a lar ge mixed-use structure on the site has hinged on a publicly funded response to the dearth of city-owned parking facilities on the east side of downtown.

The construction of a private parking structure can significantly increase the cost of downtown residential development, Holoubek said, and the expense is typically too high for a developer to bear the risk competitively. The construction of a new

parking garage would cost roughly $15,000 to $20,000 per space created, Holoubek estimated. That would add from $15,000 to $40,000 to the price of every new residential condo.

While the expense of a publicly financed parking garage is difficult to justify in terms of the direct revenue generated through parking fees, the public investment enables a host of economic benefits for the city, Holoubek said.

“If a parking garage is built,” Holoubek said, “it may allow a multistory, mixed-use project to be built. And that will generate everything from additional property taxes to payroll and occupational taxes. There are a lot of multipliers that determine whether a parking garage is beneficial.”

Public investment in parking infrastructure to support downtown development may seem like an indulgence

when compared to the typical suburban project, where developers are expected to foot their own parking bill. But suburban developments also require new roads, sewer pipes and other public sector infrastructure investments that aren’t necessary for downtown projects. And multi-story downtown projects fit more square-footage on an acre than do singlestory suburban buildings, bringing a higher rate of return.

Holoubek isn’t the only one who sees a need for more parking solutions to support development. Stan Harvey, principle, Urban Collage, and planning consultant for the Rupp Arena Arts and Entertainment District said the answer may lie in more creative public-private enterprises.

“I think the key would be to be very strategic with the construction of new parking decks to support new development

and public parking downtown,” Harvey said. “And I think the key strategy would be to make it dispersed, not overly concentrated in one particular area, and to, as much as possible, solicit public-private partnerships that provide both public parking and private parking within the same facility and that instigate new development.”

It’s a lot to digest. Perhaps the time has come to corral all of these moving parts and discuss as a community whether and how to proceed.

An opportunity comes on March 13 when the Downtown Lexington Corp. hosts a discussion on downtown parking issues moderated by Business Lexington’s T om Martin and featuring many of the individuals who commented for this article.

Details are in the box below, left.

Erik A. Carlson contributed to this article.

Downtown parking panel discussion DLC’s Discuss Downtown, a quarterly information series on downtown issues, will host a panel discussion on downtown parking.

Date: Wednesday, March 13 Time: 7:30-8 a.m. networking, 8-9 a.m. program Moderator: Tom Martin, editor, Business Lexington Panelists: Mark Fallon, Jeffery R. Anderson Real Estate; Phil Holoubek, Lexington’s Real Estate Company and downtown developer; Renee Jackson, president, Downtown Lexington Corporation; Gary Means, executive director, Lexington Fayette Parking Authority; Robert Wagoner, retired developer 101 E. Vine St., 3rd Floor Conference Room Recommended Parking: On the street or in the Transit Center Garage For more information or to RSVP, contact Kathryn Minton at Kathryn@downtownlex.com or 859425-2595.

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Business Lexington • March 1, 2013

Cabinet for Economic Development

13

Focus: Manufacturing

Focus: Manufacturing

Brownfields important in Lexington’s urban renewal

By Doug Martin CONTRIBUTING WRITER

L

exington’s continuing efforts at urban renewal have elevated the importance of brownfields redevelopment as a tool for increasing our urban core density and reducing urban sprawl.

Substantial projects such as the Lexington Distillery District and the Rupp Arena Arts & Entertainment District seek to reclaim and repurpose blighted for mer industrial areas through environmental cleanup, floodplain control, streetscapes, public art and other community amenities. Increasing our urban density and reducing sprawl has also been the focus of Lexington’s infill and redevelopment program. These urban renewal plans will not be possible without the redevelopment of a number of Lexington’s brownfields.

The U.S. Environmental Protection Agency defines brownfields as “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of hazardous substances, pollutants or contaminants.”

Properties that pose significant environmental health risks and require extensive remediation are usually referred to as “Superfund” sites and are gover ned by the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund). In contrast, the ter m “brownfields” typically describes contaminated properties that are generally smaller in size than Superfund sites and usually involve low to moderate levels of contamination.

Begun in 1995, the EP A’s Brownfields Program seeks to “assess, safely cleanup, and sustainably reuse brownfields.” More than just factories, brownfields include a wide range of facilities that generate environmental waste, such as dry cleaners, gas stations, paper mills, scrap yards, landfills, steel mills, railroad spurs and strip mines. Through tax incentives, grants, low-interest loans, technical assistance, liability protection and fast-track government oversight, a range of federal, state and local governmental agencies work to cleanup and redevelop brownfields. The EP A estimates that more than 450,000 brownfield sites exist in the United States.

Brownfield programs have already made a difference here in Lexington. Doodle’s Breakfast And Lunch at the cor ner of Third Street and North Limestone was formerly the Central Shell Station in the 1940s, and the remediation and cleanup of the station’s underground storage tanks was needed before the property could be redeveloped into Doodles.

The former Rainbow Bread Co. building on Jefferson Street, now housing the new W est Sixth Brewing Co., was also for merly a brownfield. Also, Community Ventures Corp. has received several brownfields cleanup grants to remediate one of its properties between Midland Avenue and Lewis Street, formerly used as a dry cleaners and laundry business beginning in the 1960s.

The Small Business Liability Relief and Brownfields Revitalization Act of 2002 (the Brownfields Law) was enacted to help state and local communities cleanup and revitalize

brownfield sites. The Brownfields Law amended CERCLA by providing funds to assess and clean up brownfields, by expanding protections from CERCLA liability, and by providing funds to enhance state response programs. The Brownfields Law provides financial assistance to eligible applicants through four competitive grant programs: assessment grants, revolving loan fund grants, cleanup grants and job training grants. A number of other federal laws and regulations also affect brownfields cleanup and redevelopment through financial incentives and regulatory requirements, such as the Appalachian Regional Commission’s Asset-Based Development Regional Initiatives and HUD’s Brownfields Economic Development Initiative.

The American Recovery & Reinvestment Act of 2009 (Recovery Act) provided $100 million of stimulus funds to the EPA Brownfields Program for the cleanup, revitalization and sustainable reuse of contaminated properties.

All Recovery Act recipients are required to comply with the program’s terms and conditions (T&Cs), provided as part of the cooperative agreement award. These T&Cs set out requirements for Recovery Act funding that govern how the applicant will demonstrate sufficient progress, how the recipient will report accomplishments and how the recipient will comply with other specific program requirements.

On Jan. 9, the EP A and Kentucky’s Department of Environmental Protection (DEP) announced the signing of a Memorandum of Agreement (MOA) to support and strengthen

efforts to remediate Kentucky’s brownfields through the Kentucky Voluntary Remediation Program (VERP). The MOA clarifies the respective roles of the EPA and DEP in brownfields remediation that are gover ned by Kentucky’s environmental cleanup statutes.

Under the MOA, the EPA has generally agreed not to commence a CERCLA §106 enforcement action against parties that are remediating a brownfields site in compliance with Kentucky’s VERP. The EPA’s Brownfields Program has been instrumental in the cleanup and rehabilitation of numerous contaminated properties. While developers and local communities generally welcome the liability protections and financial incentives available under the EPA’s Brownfields Law, a number of lawsuits have arisen from residents who were unaware that their home or condominium was built atop a contaminated brownfields site.

As Lexington pursues urban renewal, infill and redevelopment, state and local of ficials must make sure that brownfields that are to be redeveloped for residential uses meet stringent environmental standards and are indeed safe for human habitation.

Doug Martin is a partner with the Lexington law firm of Sturgill, Turner, Barker & Moloney, PLLC, and served as general counsel to the Kentucky Cabinet for Economic Development during the Jones administration. For more information about Sturgill, Turner, Barker & Moloney, PLLC, visit www.SturgillTurner.com.

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Manufacturing CONTINUED FROM PAGE 1

According to the Bureau of Labor Statistics, Kentucky was among several states that experienced significant employment changes in 2012, with its unemployment rate falling from 9 percent in December 2011 to 8.1 percent by December 2012.

But manufacturing jobs in Kentucky grew just 0.6 percent in 2012 to a total of 216,300 jobs, which represents roughly 12 percent of all non-farm employment in Kentucky.

Ken Troske, senior associate dean of the University of Kentucky Gatton College of Business and Economics said while there has, in fact, been an upswing in manufacturing employment in Kentucky, it is important to remember this industry had been on a decline in employment for decades and is likely to continue an overall decline, largely due to advances in manufacturing and higher productivity rates.

“When you talk about manufacturing, it’s important to distinguish between output and employment,” said Troske. “Employment in manufacturing has been declining since the late ’70s. We have seen no significant increasing trend in employment in manufacturing in this country since the late ’70s and, in this state, since the ’80s. So any increase in employment in manufacturing, regardless of how small, would be notable.”

Troske said manufacturing employment in Kentucky “fell of f a cliff” starting around 2007, when the recession was in full swing and automotive manufacturers began to feel the pains of sharp declines in consumer pur chasing power. Since 2010, Kentucky has seen an increase in manufacturing employment, but Troske believes this is simply a retur n to the level of employment manufacturing would have realized had the recession been averted.

He acknowledged, however, the significance of this industry to the state’s overall economy. “[Manufacturing] is close to 20 percent of the economy,” said Troske. “That’s a significant component of revenue flying into the state …

If you just look at the private-sector output of the state, we are predominantly a manufacturing economy ... Manufacturing makes up a much larger share of the output in our state than it does in many of the Great Lakes states.”

Kentucky Secretary of Economic Development Larry Hayes dedicates countless hours to deciphering how the state might attract new manufacturers and retain existing ones. He offered a somewhat differing opinion on manufacturing employment in Kentucky.

“It’s hard to quantify how many new jobs are created just because of manufacturing,” said Hayes. “We can certainly quantify the direct jobs, but how many other jobs were created downstream of manufacturing?”

“Manufacturing is unique in that there are large investments that people make, which tend to root them in your state or your community over a period of time,” he continued.

“Other types of jobs don’t necessarily have the same investment. You can lease space, and all of the sudden, tomorrow there is a mer ger somewhere else and you’re out of there.”

He said Kentucky’s improving job-creation rate is due, in part, to the state’s renewed commitment to nurturing existing flagship manufacturers. While other states “fled manufacturing” due to the threat of offshoring, Hayes said Kentucky “stayed the course, and we have the right horses to stay the course, with the automotive sector … GM, Ford, Toyota, and a large number of tier-one and tier-two suppliers.”

“Staying the course,” according to Hayes, meant shifting the focus of state incentive pro-

Business Lexington • March 1, 2013

Top, by using Lean manufacturing, GE reduced the size of this assembly line by over 50 percent versus their traditional manufacturing line, which reduces production time, increases productivity and improves quality.

Left, Denise Masterson, a first-shift operator at GE Appliances, works on the new topload washer at Appliance Park in Louisville.

PHOTOS FURNISHED

grams to help existing manufacturers retool their plants and expand within the state. In 2009, the state legislature held a special session during which legislation was passed to do just this, and Hayes said the state is now feeling its impact.

“When there is excess capacity in the manufacturing environment, they [manufacturers] have choices to make, and you’ve got to do the best you can to make your state the one where they want to invest,” said Hayes.

One of the state’s most notable successes in recent history was an incentive package negotiated for General Electric that eventually resulted in a $60 million investment by the company in a high-efficiency washing machine facility at its Appliance Park in Louisville, creating 150 new jobs and supporting about 40 domestic suppliers. In February of this year, the company opened its GeoSpring hybrid water heater facility in Louisville, kicking off a $1 billion investment, $800 million of which will be invested in Appliance Park to upgrade its product lines and revitalize several facilities. Last year, GE Appliances hired over 2,500 employees in Louisville, but a dip in appliance sales at the end of 2012 forced the company to furlough its second-shift employees at its refrig eration production plant for five weeks, beginning in late February 2013, to allow excess inventory to be depleted. Despite this setback, GE says plans for new investments at Appliance Park will continue.

“Everything is on track and we anticipate a good year,” said GE Appliances spokesperson Kim Freeman. “This is a normal business

practice that we use to align our inventory with current demand.”

With multimillion-dollar investments like these on the horizon, Hayes believes Kentucky is positioned at the forefront of the socalled U.S. manufacturing renaissance, with the state’s flagship automotive manufacturers and suppliers leading the way. He said state incentive programs have allowed industry giants like Ford Motor Company in Louisville to reinvent and retool aging facilities, and as a result, Kentucky now boasts some of the most efficient automotive manufacturing operations in the country.

In January, Kentucky’s Cabinet for Economic Development issued a news release announcing that Kentucky’s automotive industry reached more than one million vehicles for the first time since 2007, and now ranks fourth in the nation for total light vehicle production and light trucks.

But while highly efficient, state-of-the-art facilities are vitally important to today’s advanced manufacturers, success is fleeting without a well-trained workforce to operate these facilities. According to a study conducted by Deloitte and The Manufacturing Institute in 2011, some 600,000 manufacturing jobs remain unfilled in the United States due to the lack of qualified candidates. And as the baby boomer population continues to migrate out of the job market, the workforce crisis continues to mushroom.

Greg Higdon is president and CEO of the Kentucky Association of Manufacturers and believes a lack of skilled workers is the No. 1

issue plaguing manufacturers today, both in Kentucky and across the country.

“There are employees that are leaving the workforce at a very fast rate right now, and we’re not finding that we have a competent, career-minded workforce ready to come into the industry,” said Higdon.

That is why Higdon says he has resur rected the association’s Foundation for Kentucky Industry, a group he hopes will play a role in leading a major cultural change in education in Kentucky and help bridge the skills gap for Kentucky manufacturers.

“We’re cooperating with people in secondary education, postsecondary education, administrative bodies like the Council on Postsecondary Education, the Department of Education, the university systems in Kentucky and the Workforce Development Cabinet,” said Higdon. “We supported legislation at the last session of the General Assembly and an executive order in the summer to move the career and tech out of the W orkforce Development Cabinet into the Department of Education.”

Hayes agrees with Higdon and believes the benefits of a well-trained workforce can extend beyond the individual manufacturer.

“Of all of the money you could potentially invest in economic development, the single greatest return to us is those investments we make in training our people,” said Hayes.

“Many of them [manufacturing workers] are going to stay with the companies where they’ve been trained, but other ones will be a little more flexible in the workforce. That is something that we can’t do enough of.”

15

Focus: Manufacturing

FTC’s Green Guides alter legal requirements for marketing to consumers

By Jennifer J. Cave and Jesse M. Parrish able only if it can be proven that the entire GUEST WRITERS

N

ow more than ever, consumers consider the environmental consequences of their purchases. But what qualifies a product for a “green” designation?

Recent revisions to the Federal T rade Commission’s Green Guides include a number of modifications addressing environmental marketing claims that businesses must understand in order to stay competitive in an increasingly environmentally conscious marketplace.

The FTC Green Guides

One trip down a grocery aisle or one commercial break during the ballgame makes it clear: to succeed in today’s marketplace, a business must market the environmental benefits of its products. Whether a product is truly “green” is relative to the circumstances. All products use energy and resources, and all products create waste. How, then, can a business market the environmental benefits of its products without overstating the true impact?

The FTC has intervened to clarify what may be said about a product’s environmental impact. The FTC recently revised its Green Guides, adopting a more holistic approach to review environmental marketing claims. The guides are not agency rules or regulations, but rather help the agency in deter mining whether environmental claims are misleading and deceptive. If claims are determined to be misleading and deceptive, the agency can take enforcement action, which can lead to fines or FTC orders that prohibit deceptive advertising. The guides make a number of modifications to older guidelines and contain new sections to address developing issues.

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The revised guides caution businesses not to make broad claims that a product is “environmentally friendly” or “eco-friendly.”

Consumer protection studies show that when a consumer sees such broad claims, the consumer internalizes that the product has specific and far-reaching environmental benefits.

Instead, the guides instruct businesses to qualify general claims with specific environmental benefits, allowing consumers to better understand the consequences of their purchases.

To avoid further confusion, the guides warn not to highlight small or unimportant benefits. For example, a lawn mower manufacturer advertises its new line of lawn mowers as more eco-friendly due to increased fuel ef ficiency. In fact, the lawn mower manufacturer has increased the fuel efficiency by 0.1 percent. The manufacturer’s claim is technically correct, but the advertisement would likely convey a false impression of significantly increased fuel efficiency and broad environmental benefits.

Recyclable or degradable products

The revised guides also caution businesses that claim their products are recyclable or degradable. A business may make an unqualified claim that a product is degrad-

Business Lexington • March 1, 2013

product will completely break down within a reasonably short period, which the FTC considers to be one year after disposal.

Businesses claiming a product is recyclable must take into account the availability of recycling facilities where the product is sold. If recycling facilities are not available to at least 60 percent of the consumers o r communities where a product is sold, businesses are encouraged to identify the limitation or to clarify that the product may not be recyclable within the consumer’s area.

When a product is made from recycled materials, the guides also provide direction.

Businesses are instructed to qualify claims for products that are made partly from recycled materials by stating the percentage o f the product that is actually made from recycled materials.

Products made with renewable energy

The revised guides add new sections to address environmental claims that were not common when the guides were last reviewed.

One new section addresses claims that a product is made with renewable energy.

Businesses should not make an unqualified “made with renewable ener gy” claim unless virtually all of the manufacturing processes involved in making the product are powered with renewable ener gy. Businesses are also encouraged to specify the source of renewable ener gy, such as wind or solar energy.

Products “free of” certain substances

Another new section addresses claims that a product does not contain, or is “free of,” certain substances. This section advises that “free of” claims, even if true, may be deceptive if the product contains substances that pose similar environmental risks as the substance not present, or if the “free of” substance has not been previously associated with the product.

The willingness of consumers to consider the environmental impacts of thei r product purchases is a clear trend that your business must consider to maintain or increase its market share, but you must understand how to accurately communicate your product’s environmental benefits. The FTC’s Green Guides attempt to clarify for the business community how to market environmental benefits while stopping misleading claims.

Jennifer J. Cave and Jesse M. Parrish are attorneys with Bingham Greenebaum Doll LLP. DISCLOSURE REQUIRED BY CIRCULAR 230. This disclosure may be required by Circular 230 issued by the Department of Treasury and the Internal Revenue Service. If this article, including any attachments, contains any federal tax advice, such advice is not intended or written by the practitioner to be used, and it may not be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. Furthermore, any federal tax advice herein (including any attachment hereto) may not be used or referred to in promoting, marketing or recommending a transaction or arrangement to another party. Further information concerning this disclosure, and the reasons for such disclosure, may be obtained upon request from the author of this article.

Focus: Manufacturing

Energizing Kentucky manufacturing: Algae for growth CONTRIBUTING WRITER

M

anufacturing accounts for about $28 billion in Kentucky’s economy, making it a close second place after government as an economic driver , with health care ranking third. And these days perhaps more than ever, the cost of energy is a critical factor in sustaining successful manufacturing businesses.

That’s why the Kentucky Association of Manufacturers (KAM) has expanded its third Energy Conference from one day to two full days, to be held on May 14 and 15. It is touted on the KAM website as “Kentucky’s only energy conference designed by manufacturers, for manufacturers.”

“We want to get into more depth with these programs,” said Greg Higdon, CEO of KAM. “Energy will be an ongoing thing that manufacturing will have to look at. We have to pay attention to it to remain competitive nationally and internationally. Kentucky is huge in the automotive industry.”

In a time of rising energy costs and deepening concerns regarding climate change, the conference brings together energy producers, suppliers and consumers for presentations, workshops and discussions on best practices and technologies to bring increased ener gy efficiency in the lar ge-scale operations of manufacturing. Underlying the conference is the idea of sustainability — sustaining the economic viability and profitability of manufacturing enterprises as well as reducing damaging impacts on the environment, the bedrock of our sustenance. Another focus of the conference will be renewable fuels, said Molly Sutherland of Sutherland and Associates, who is coordinating the conference.

The conference’s focus on ener gy resonates with the America’s Ener gy Future (AEF) study, begun in 2007 and recently completed by the National Academy of Sciences and the National Academy of Engineering. A number of reports have emerged from the massive AEF project that involved a host of scientists from numerous disciplines, industries and or ganizations. The main report, over 700 pages, titled America’s Energy Future: Technology and Transformation, is available for free download from the National Academies Press website. That report finds “a steadily growing consensus that our nation must fundamentally transform the ways in which it produces, distributes, and consumes useful energy.”

The search is on to find renewable fuels to counter the dependence on foreign oil.

KAM has also recognized the concern.

“Logistics and fuel costs are always issues,” said Higdon, speaking about the transportation challenges for manufacturing concerns. “You will always have the four components of rail, water, air and trucking.”

One of the alter native and renewable fuels discussed in the report is biodiesel produced from algae. Business Lexington spoke with Bruce Pratt, director of the Center for Renewable and Alter native Fuel Technologies (CRAFT) at Eastern Kentucky University, to find out how CRAFT’s research and development with algae-derived biofuel has progressed since its founding four years ago.

“We’ve been fairly fortunate with decent funding,” said Pratt. “We’re trying to develop alternatives to fossil-fuel dependence.”

CRAFT has an ongoing contract since its founding with the Defense Logistics Agency of the Department of Defense. The military is looking for an alternative source for jet fuel.

Pratt said that commercial airlines have also become interested in alter native/renewable

fuels, because Europe will be introducing regulations that will require planes landing in airports there to have a certain percentage of renewable fuel in their tanks or face fines.

“Biofuel will bur n much cleaner than conventional petroleum diesel,” said Pratt.

“You don’t have nearly the amount of NOx [nitrous oxide], and it bur ns almost at the same efficiency as petroleum.”

Forty acres of EKU property are planted in switchgrass, a tall-growing grass native to Kentucky. The switchgrass provides biomass for sugar production to feed the heterotrophic algae grown in darkness at laboratory scale. Pratt said that their technology

has been proven at lab scale, and they are ready to scale up the process with a pilot plant that would produce 3,000 to 5,000 gallons of biodiesel per year . That pilot plant would cost $7 million. Funding sources CRAFT has identified require cost share of 20 to 50 percent.

“We just don’t have those resources to do that cost share,” said Pratt. “We’d like to find a corporate partner.”

He said they are working some angles on that. Meanwhile, CRAFT has received funding to scale up their technology for breaking out sugars from the biomass. He also said other directions for research include

the production of bio-plastics, as well as materials for use in electronic components.

Pratt pointed out that commercial trucking, barges and trains could all run on biodiesel. And the bio-derived oil can also be converted to jet fuel. The AEF report notes that bio-diesel can be distributed through existing infrastructure and used in unmodified diesel-engine vehicles. Pratt mentioned UPS, with one of its centers in Louisville, as being very interested in alter native fuels. He said that CRAFT’s research and development, along with other bio-fuel projects, are about where corn ethanol technology was 10 to 15 years ago.

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Business Lexington • March 1, 2013

17

Focus: Manufacturing

E-PROCUREMENT

Harnessing the potential of technology and addressing stakeholder buy-in

By Marshall J. Duncan CONTRIBUTING WRITER

T

o jump-start our ailing economy and nurture a new era of domestic manufacturing, state and local governments must find ways to reduce spending, consolidate and align processes, and provide more substantial value for taxpayer dollars.

Advances in Web technology have created an industry of automated procurement services, including in-house, stand-alone, and pay-to-procure e-marketplaces for both public and private sectors. Both sides would agree that more efficiency and transparency is a better way of doing business, but public officials are charged with the responsibility of fulfilling a har monious environment of reciprocity and egalitarianism that is hard to achieve in the public sector when private enterprise await at the crossroads.

For government, the value of e-procurement is a combination of ef ficiency and a competitive advantage among vendors, which shall reduce cost and increase quality.

Since 2006, Economic Engine, a standalone software vendor , has provided the Lexington-Fayette Urban County Gover nment (LFUCG) with a third-party solution for RFP distribution, access to technical documents, and new vendor registration. Economic Engine can be accessed through the LFUCG website (/https://lfucg.economic engine.com).

“We process approximately 200 competitive bids [$20,000 plus] per year , 50 RFPs [$20,000 plus] per year, and 20 quotes for informal contracts between $10,000 and $20,000,” said T odd Slatin, purchasing director for LFUCG. “Automated e-procurement services have saved administrative costs, and we have used Economic Engine and e-procurement to help keep our staf f numbers from growing.”

Larry Hancock owns Procurement Assistance Software & Support, LLC (P ASS), which is the licensed administrator for Economic Engine. He handles support and training out of his home in Lexington for several clients, including Lextran and the National Association of Housing and Redevelopment Officials (NAHRO).

According to Hancock, “The LexingtonFayette municipality should be a benchmark for local governments around the country

for integrating a high level e-procurement system.”

As Hancock explained, lower -level eprocurement services are strictly communication devices, providing announcements of solicitation opportunities, instructions for finding solicitation documents and a centralized registry for vendors. Higher -level services provide automated tools for submitting RFPs, bid documents and posting addendums, as well as support tools handling evaluation and compliance issues, bid protests and even e-signatures.

Hancock entered into an agreement to license the Economic Engine technology in 2005 after the original client, Wayne County, Michigan (Detroit), didn’t fulfill the contract because the county commissioner retired, which caused issues not only in the procurement area, but also across the breadth of the county government.

N AHRO has been utilizing the PASS/Economic Engine Software and Support for more than 10 years. The NAHRO members utilizing the software have budgets ranging from $100,000 to $30 million per year.

“The technology has been around for at least 10 years, but there is a lot of resistance to e-procurement. Gover nments and private companies are skeptical to buy in, fearing additional costs and more headaches than it could potentially be worth; they don’t realize just how affordable and easy to use software like Economic Engine really is,” Hancock said.

E-procurement is not for everyone; some officials or CEOs might consider email and a fax machine to be all the e-procurement they need, and others might not want the extra attention when they are accustomed to dealing with a regular group of reliable vendors.

Perhaps the most important resistance of all comes from the vendors themselves.

As a 2012 brief by the National Association of Procurement Of ficials (N ASPO), titled “Meeting the Challenges of World Class Procurement,” explains: “Companies may not participate when procurement systems are too complicated, leading to states losing the benefit of full and open competition.”

On the other hand, a few entrepreneurial-minded people like Hancock have em-

braced complexity, vowing to make it easier for proprietors, vendors and officials to find the services they need by weeding through the vast amount of open-records content and reposting it on their own e-marketplace, for which these “crawlers” charge fees for varying levels of information and support.

Onvia (www.onvia.com) is one of the more popular infor mation gathering websites, offering access to various databases and tidbits of advice for tracking down the hard-to-find client or partnering with one of the competitors.

Locally, the L ynn Imaging plan room provides contractors with bid document distribution services for Kentucky, Ohio and Indiana. Contractors click on a list of L ynn Imaging client projects and receive information regarding plans and specifications. Plan room provides links to download bid documents and provides regular updates for addendums and other pertinent infor mation (http://www.lynnimaging.com/).

The USA Buyers e-Procurement Marketplace (formerly Kentucky Buyers Marketplace) is the public application of Economic Engine (https://usabuyers.economicengine.com), providing many of the same procurement solutions LFUCG uses in addition to marketing alternatives for buyers and enhancing outreach opportunities for minority-owned (MBE) and woman-owned (WBE) business enterprises.

Janet Harris-Lange, executive director for the National Women Business Owners Corp., said of Kentucky Buyers, “It is one of the most efficient marketing tools there is to reach women and minority business owners, especially for those buyers that understand the value in doing business with women and minority business owners.”

According to a 2012-’13 Procurement Guide publication from the American Chamber of Commerce Executives, the federal government has statutory contracting goals to award 5 percent of federal prime contracts to women-owned small businesses and 5 percent to small, disadvantaged businesses.

Lexington Fayette Urban County Government implemented resolution 167 in 1991, stating a 10 percent minimum goal for disadvantaged business enterprise participation in LFUCG construction and professional

BANK ORDERED ABSOLUTE AUCTION THURSDAY, MARCH 7th - 12:30 P.M. 23 HOUSE RENTAL PORTFOLIO (Selling each individually)

“Business Lexington has allowed us a way to communicate to the business community in a very targeted manner with a message that is made just for business clients. We’ve found that there is no other way to reach the Lexington marketplace without these publications.”

Auction held at Capital Plaza Hotel 405 Wilkinson Boulevard, Frankfort, KY

• Frankfort, KY 189 East Main Street 605 North Lime 263 Centennial, Unit #5 263 Centennial, Unit #4 263 Centennial, Unit #2 263 Centennial, Unit #1 191 East Main Street 185 East Main Street 159 East Main Street 108 Phillips Street 193 East Main Street .388 Acre Georgetown Rd. 3271 Georgetown Road 206 Collins Street 204 Collins Street

18

• Frankfort, KY (cont.) Ron Pregliasco, Broker Associate 202 Collins Street 242 Wright Avenue 345-349 Wallace Avenue

• Harrodsburg, KY

502-297-8797

Michael Sadofsky, Senior Vice President and Chief Marketing Officer, Republic Bank

Don Erler, Bill Menish, Auctioneers

438 East Lane 447 Larue Street 418 Larue Street

• Lawrenceburg, KY 99 Ballard Street 1081-1083 Northwood Loop

BusinessLexington

All Sperry Van Ness Offices Independently Owned & Operated

BidOnBankOwnedProperties.com

service contracts, providing contractors make a good-faith effort to award at least 10 per cent of all subcontracts to disadvantaged business enterprise.

While state and local governments strive to uphold a progressive posture, media headlines announcing allegations of preferential bias will bring much consternation into an overheated arena of finger -pointing and party-pandering, which could result in costly audits or lawsuits that will overshadow government’s socioeconomic goals and dissuade public confidence.

In a recent article, the Kentucky Gazette reported that Lexmark is prepared to file suit in response to a $23 million managed print services contract awarded to Xerox, which submitted a much higher bid than Lexmark and has ties to law firm Stites and Harbison — a firm at which Gover nor Beshear was formerly employed and his son is currentl y employed.

The Kentucky Model Procurement Code seeks to clarify bid protests, stating collusion, fraud, or dishonesty as grounds for filing an appeal, although it is necessary to first document how a failure to award will negatively impact economic interest of the bidder; how the bidder could, ostensibly, win the award; and to what degree the Cabinet Selection Team has aggrieved the bidder.

According to the aforementioned N ASPO brief, “A procurement system not having the resources to establish reasonable rules for granting preferences and evaluate allegations of noncompliance quickly loses credibility with industry.”

Recognizing the value of centralization and automation through e-procurement depends on the situational and historical context of the constituency and its ability to use these resources aptly and progressively in accordance with applicable legislative procurement codes.

For a review of the Kentucky Model Procurement Code go to http://www.dinsmore.com/kentucky_model_procurement_ code/. For more information on purchasing and e-procurement and other related resources, visit the Kentucky Finance and Administration Cabinet webpage at http://finance.ky.gov/services/eprocurement/pages/default.aspx.

A PARTNER IN PROGRESS

F O R A D V E R T I S I N G I N F O C A L L 8 5 9 . 2 6 6 . 6 5 3 7 O R V I S I T W W W. B I Z L E X . C O M

Business Lexington • March 1, 2013

MADE

IN

THE

BLUEGRASS

We build apps.

Mobile application development at its best.

For the iphone, ipad and android

Flash in the Pan STUDIOS

Call 396.8176 or email chris@flashinthepanstudios.com • www.flashinthepanstudios.com FILE PHOTO BY EMILY MOSELEY

Big Ass Fans We live in a thriving hub of production. The Bluegrass Region is home to myriad manufacturers that distribute and sell products across the country and around the world. Made in the Bluegrass celebrates our production success.

Compiled by Brian Wright CONTRIBUTING WRITER

Name of Company: Big Ass Fans Location Address: 2425 Merchant Street, Lexington, KY, 40511 Years in the Bluegrass: 13 years Number of Employees: 96 Products Produced: • The Powerfoil®X2.0 ranges in size up to 24 feet in diameter.

The Powerfoil 8 and Basic 6 are large diameter, low speed for any space or budget.

• AirGo is an 8-ft. vertical fan on a rolling base. With the optional misting kit, the AirGo produces the equivalent cooling effect of 22 tons of air conditioning to horse barns, worksites and athletic sidelines.

• The Yellow Jacket is a standard pedestal fan, but is worksite designed to withstand collisions with forklifts.

• Element was the first Big Ass Fan specifically designed for use in quiet spaces, such as hospitals and libraries. Its oil-free, permanent magnet prime mover eliminates the need for a gearbox and ensures lasting silent operation.

• Isis is an 8- to 10-ft. commercial fan that delivers gentle air circulation, energy efficiency, silent operation for spaces with lower ceilings.

• Haiku is certified by ENERGY STAR® as the most efficient ceiling fan. Combining an ultra-efficient direct current motor with patent-pending electronic controls.

Big Ass Fans also offers a range of air movement products and custom solutions to improve comfort and energy efficiency in a variety of spaces.

More interesting facts: Big Ass Fans has recycled approximately 136,500 board feet of lumber including packing material, pallets and wood scraps. Electronic recycling has included more than 2500 pounds of old monitors, keyboards, imaging devices and printers.

Website address: www.BigAssFans.com

Business Lexington • March 1, 2013

19

BizList Manufacturing Employers Research was conducted by Sharon Lee Metz, for questions, contact sharon@bizlex.com

Number of Local Employees in 2012

Company Name Address Current Previous Phone Website Rank Rank

Number of Local Employees Business in 2012

Top Local Official/ Year Founded Locally

Company Name Address Current Previous Phone Website Rank Rank

Automobiles-Avalon Camry, Camry-hybrid, Solara, Venza, Engines, axles, steering components, blocks/cylinder heads/crankshafts, and North American Production Support Center (NAPSC)

Wilbert W. James (President)/ 1988

17

25

Number of Local Employees Business in 2012

Top Local Official/ Year Founded Locally

Alltech, Inc. 3031 Catnip Hill Pike Nicholasville, KY 40356 859-885-9613 www.alltech.com

450

Natural animal feed additives and brewing & distilling products

Pearse Lyons (President and Founder)/ 1980

1

1

Toyota Motor Manufacturing Kentucky 1001 Cherry Blossom Way Georgetown, KY 40324 502-868-2000 www.toyotageorgetown.com

7,900

2

2

Lexmark International, Inc. 740 W New Circle Rd. Lexington, KY 40550 859-232-2000 www.lexmark.com

2,656

Development, marketing and sales of printers and related supplies and software

Paul Rooke (CEO)/ 1991

18

16

EnerSys 761 Eastern Bypass Richmond, KY40475 859-624-7300 www.enersys.com

440

Lead acid industrial batteries, AMLCD glass substrate — thin, durable, highly scratch resistant cover glass used in portable/handheld electronic devices

Dennis Brumbaugh (Plant Manager)/ 1976

3

3

Lockheed Martin 5749 Briar Hill Rd. Lexington, KY 40516 859-566-4778 www.lockheadmartin.com

1,867

Contractor logistics support - DOD contract

Peggy Mullikin (HR)/ 1985

19

17

Corning Display Technologies 680 E. Office St. Harrodsburg, KY 40330 859-734-3341 www.corning.com

420

Metals service center; steel slitting; blanking; warehousing; distribution, logistics

Casey Duffy (Plant Manager) 1952

4

4

Hitachi Automotive Systems USA, Inc. (formerly Tokico [USA] Inc.) 301 Mayde Rd. Berea, KY 40403 859-986-2359 www.hiams-am.com

985

Manufacture and assembly of brake and suspension systems. Processes include machining, plating, painting, welding, and assembly.

Naoki Makita (President/CEO)/ 1987

20

22

Toyota Tsusho America, Inc. 700 Triport Rd. Georgetown, KY 40324 502-868-3459 www.taiamerica.com

410

Plastic injection molding, chrome and stainless steel plating, painting

Mike Lavender (Senior Vice-President)/ 1986

19

Automotive components, wheel trim, center caps, claddings

950

McKechnie Vehicle Components 801 John C. Watts Dr. Nicholasville, KY 40356 859-887-2446 www.mvcusa.com

406

Blue Grass Chemical Agent Destruction Plant 830 Eastern Bypass, Suite 106 Richmond, KY40475 859-625-1665 www.bechtelparsonsbgcapp.com

21

Tom Gougherty (General Manager)/ 1979

22

20

375

Supplier of log sets, fireplaces, inserts and stoves to the hearth, propane & residential construction markets

Dan Clifford (President)/ 1994

Trane Co. 1515 Mercer Rd. Lexington, KY 40511 859-259-2500 www.trane.com

891

Monessen Hearth Systems 149 Cleveland Dr. Paris, KY 40361 859-987-0740 www.mosessenhearth.com

23

21

368

Carbonate soft drink bottling

Hitachi Automotive Systems USA, Inc. 955 Warwick Rd. Harrodsburg, KY 40330 859-734-9451 www.hiams-am.com

830

Pepsi-Cola Bottling Co. 559 S. Forbes Rd. Lexington, KY 40504 859-255-3375 www.gjpepsicom

John Dougherty (VP & General Manager)/ 1941

24

24

328

Pharmaceutical processing

Stephen Havel (General Manager)/ 1992

NACCO Materials Handling Group 2200 Menelaus Pk. Berea, KY 40403-9748 859-986-9304 www.nmhg.com

666

Catalent Pharma Solutions 1100 Enterprise Dr. Winchester, KY 40391 859-745-2200 www.catalent.com

25

25

300

Paper & plastic cups, plates, bowls

Stephanie Picard (Plant Director)/ 1957

Webasto Sunroofs, Inc. 2201 Innovation Dr. Lexington, KY 40511 859-389-6100 www.webastosunroofs.com

648

Georgia Pacific Corp.

Dixie Consumer Products LLC 451 Harbison Rd. Lexington, KY 40511 859-259-9126 www.gp.com

25

25

300

Automobile windshield & side and back window glass, paned sunroofs

Gregg Thomas (Plant Manager)/ 1987

Johnson Controls, Inc. 824 Lemons Mill Rd. Georgetown, KY 40324 502-863-0400 www.jci.com

643

Pilkington North America 102 Kuhlman Ave. Versailles, KY 40383 859-873-2800 www.pilkington.com

27

25

299

608

Ceiling fans for large industrial, agricultural, commercial and residential settings. Range in size from 5 to 24 feet in diameter and using low horsepower motors to generate energyefficient air movement for large spaces.

Carey Smith (President)/ 1999

Link-Belt Construction Equipment Co. 2651 Palumbo Dr. Lexington, KY 40509 859-263-5200 www.linkbelt.com

Big Ass Fans 800 Winchester Rd. Lexington, KY 40505 877-BIG-FANS www.bigassfans.com

28

NPR

265

Peanut butter

W.E. Erickson (Director Operations)/ 1957

Osram Sylvania 1000 Tyrone Pike Versailles, KY 40383 859-873-7351 www.sylvania.com

538

J.M. Smucker Co. 767 Winchester Rd. Lexington, KY 40505 859-254-5544 www.jif.com

29

30

252

Automotive transmission gears; chassis components and automatic transmission components

Norihiro Koike (President & CEO)/ 1998

Schneider Electric 1601 Mercer Rd. Lexington, KY 40511 859-243-8000 www.schneider-electric.us

500

Richmond Auto Parts 5000 Corporate Way Richmond, KY40475 859-625-1101 www.raptech.com

30

32

Avantor Performance Materials 7001 Martin Luther King Blvd.

Paris, KY 40361 859-987-7000 www.advantormaterials.com

250

High purity chemicals

Timothy Bach (Plant Manager)/ 1978

Wausau Paper 1150 Industry Rd. Harrodsburg, KY 40330 859-734-0538 www.wausaupaper.com

500

30

32

Ceradyne, Inc. 2416 Merchant St. Lexington, KY 40511 859-514-1290 www.ceradyne.com

250

Development and production of advanced technical ceramics systems and components.

Jeff Waldel (Vice President)/ 2005

CMWA 125 Wheat Dr. Paris, KY 40361 859-987-0500 www.toyota.com

480

30

32

Creation Technologies Kentucky Inc. 1729 Jaggie Fox Way Lexington KY 40511 859-253-3066 www.creationtech.com

250

Printed circuit board assembly

Troy Watros (General Manager)/ 1975

Quad Graphics 100 US 60 Bypass Versailles, KY 40384 859-873-3181 www.qg.com

460

30

25

Leggett & Platt, Inc. 101 New St. Winchester, KY 40391 59-744-4626 www.leggett.com

250

Inner springs & box springs

Chuck Denisio (General Manager)/ 1910

5 6 7 8 9 10 11 12 13 TIE

13

6

5

8

7

14

11

9

10

12 TIE

18

TIE

15 16

15

12 TIE

Chemical weapons destruction, administrative management support

Thomas McKinney (Project Manager)/ 2006

Commercial and industrial air handling equipment, custom, catalog and specialized air handlers including integrated controls

Ron Jakubec (General Manager)/ 1963

Automotive electric and electronic components, warehouse and distribution center

Masaaki Fujisawa (CEO)/ 1986

Lift trucks

John Gardiner (Plant Manager)/ 1973

TIE

Automotive sunroofs

Automotive seats and interior components. Foam pads for automotive industry.

Design, manufacture, market, sell and service of telescopic and cable cranes

Glass tubing, components used in automotive lighting industry, fluorescent lighting

Rob Jarman (Plant Manager); Kevin Wirfel (Assistant Plant Manager)/ 1998 Dwight Ducker (Plant Manager)/ 1993

Chuck Martz (President/CEO)/ 1974

Ron Harris (Plant Manager)/ 1964

TIE

TIE

Electrical safety switches and distribution panels, load centers

Robert Spence (Plant Manager)/ 1955

TIE

Paper towels, toilet paper, facial tissue, sanitary paper products

Automotive wheels — steel and aluminum

Mike Wildenberg (Senior Vice President)/ 1990 Bernie Polzin (CEO)/ 1986

TIE

TIE

Book printing and binding

Jerry Ulickey (Plant Director)/ 1962

TIE

TIE

TIE

TIE

TIE

TIE

TIE

TIE

TIE

Source: Cabinet for Economic Development 2012 report, company websites and representatives.

Note: Lexington Area Manufacturers — ranked by numbers of local employees, minimum of 250, including the following counties: Bourbon, Clark, Fayette, Jessamine, Madison, Scott, Woodford.

If you want to be added to our database, please follow this link, https://secure.datajoe.com/url/?BW1b1s4HV, complete and submit. Key: NPR=Not Previous Ranked Corrections: In our Jan. 4 bank ranking, Tucker Ballinger is identified as President, Forcht Bank, Lexington Area. Mr. Ballinger is President & CEO.

20

Business Lexington • March 1, 2013

Joe Nolasco, left, and Joe Rasnick, founders of integrity/Architecture PHOTO BY EMILY MOSELEY

LEXINGTON’S NEW BLOOD

By Joseph Rasnick, Associate AIA

GUEST INTERVIEW

Joe Rasnick and Joey Nolasco ar e representative of Lexington’s “new blood” — a generation that has fallen deeply in love with the city and made the decision to establish roots, open a business and get involved. We invited them to shar e their perspective on this page. he collective community of central Kentucky is a vibrant and unique one.

For many years now, the Bluegrass region has been attempting to rediscover its identity — or possibly create a new one.

When the bottom dropped out of the economy a few years ago, it seemed as though that search would have to be put on hold.

The economy was in freefall, so of course, our community would be, too. Right?

When Joey Nolasco and I founded integrity/Architecture in 2011, we didn’t agree. Though central Kentucky suffered its fair share of economic turbulence, we saw a far more resilient collection of people and businesses working through it. Therein lies what I believe to be central Kentucky’s true identity — local pride, a strong work ethic and a willingness to support each other, no matter the circumstances. After all, every great success story began with trials and tribulations.

T

pride that exists here, a belief that whatever the state of the union may be, we are still going to wake up in the mor ning and go to work.

Joey and I knew we had a great idea, and the only way to bring it to fruition was to set out on our own. We knew that if we were willing to work hard — to get up earlier , go to bed later, pour ourselves into every detail of the work, and above all, conduct ourselves with honesty and integrity — our community would help us make our idea a reality.

Why now, in the midst of an economic crisis?

Is there ever a per fect time, when the path seems completely devoid of obstacles?

N o. We analyzed the risks and knew our biggest hurdles, which allowed us to properly prepare for the hardships we knew we’d face moving forward. Always in the back of our minds was the tenet that the greatest enemy is the one you cannot see.

How much planning was involved?

Months and months. In our line of work, you have to think in three dimensions, and we wanted our company to be well designed and thought-out. We set clear goals and crafted strategies on how to meet them.

We devised contingency plans in case our first method faltered. Our contingencies had Why did we do it? contingencies.

I was always of the opinion that any We also knew that, as a new company, problem, issue or struggle is only as bad as we had an opportunity to reach out to the people allow it to be. That’s what is so community in new ways. Social media is great about central Kentucky. There’s a how people communicate and interact with

one another nowadays, and we wanted to embrace that as part of our marketing plan.

Platforms such as Facebook, along with our website, are our go-to methods for interacting with our community.

Who was our biggest source of help?

Our small and faithful group of clientele. These were local people, business owners and industry leaders that believed in our philosophy and message and were willing to take a chance on us. Also, we relied on family and friends. Just like our clients, our families stood behind us and expressed unwavering confidence in our abilities.

There’s nothing like the support of those close to you to help fortify your resolve.

What did we expect to be our biggest obstacle?

The lack of business that we were told was awaiting us in this economic storm. And

THIS IS WHERE WE LIVE AND ARE RAISING OUR FAMILIES. WE HAD FAITH THAT IF WE TOOK THE CHANCE, OUR COMMUNITY WOULD RISE TO THE OCCASION AND SUPPORT US.” JOEY NOLASCO, INTEGRITY/ARCHITECTURE

Business Lexington • March 1, 2013

directly associated with that stor m was our own fear.

r What ended up actually being ou biggest obstacle?

The rapidity and volume of work that ended up flowing in. Our growth plan fo r the company was immediately fast-tracked.

It seemed as though this idea we thought up was being latched onto by more than just ourselves. We’ve been fortunate enough to be able to bring in new, talented designers who share in our passion for design and bringing it to our community.

What factor did central Kentucky play in our decision?

It was the biggest factor. We know this community and the working relationships it supports. This is where we live and are raising our families. We had faith that if we took the chance, our community would rise to the occasion and support us. W e owe our firm’s continued existence and success, first and foremost, to our community — the people, businesses and civic or ganizations that have helped us convert big dreams into reality.

We understand that building a successful start-up company is a privilege, particularly in these times. It’s for that reason that we will continue to work hard toward earning our place in this great community and contributing all that we can to it.

Joseph Rasnick is director/co-founder of integrity/Architecture, PLLC of Lexington.

21

ANNIVERSARY

A half century in Exile

Q&A with Exile’s J. P. Pennington on the business of sustaining a working band Interviewed by Mike White

MW: Tell us about this year’s tou r schedule.

JP: I think our number of dates are going to be up this year. In September we’re doing eight shows in 10 days — all in different cities, mostly in Kansas, Oklahoma and Texas. I’m griping a little bit about that, because I don’t know if I’ll have a voice at the end of it. But we complained at the end o f the year to our agent that we felt like we did n’t have enough dates last year , so he says, ‘OK, here you go.’ But he benefits too.

CONTRIBUTING WRITER

E

xile (formerly The Exiles) got its start 50 years ago in Richmond, Ky., playing local clubs, which led to touring with Dick Clark’s Caravan of Stars and opening shows and providing backup for major rock artists of the period. They hit the peak of their success in 1978 with the rock-pop ballad hit Kiss You All Over. After subsequent pop hits, they re-established in 1983 as a country music group. Between then and the early 1990s, the band had several country chart hits, including the N o. 1 songs Woke Up in Love , I Don’t Want to Be a Memory , Give Me One Mor e Chance, Crazy For Your Love, She’s a Miracle, Hang On to Your Heart, I Could Get Used to You, It’ll Be Me, She’s Too Good to Be Trueand I Can’t Get Close Enough. Exile has continued to record ever since and has projects in the works in 2013. Mike White of the Lexington Area Music Alliance spoke with Exile founder J.P. Pennington.

MW: What is the current lineup of the band?

JP: I’ve been here all the 50 years, except for a couple of hiatuses here and there when there wasn’t much going on. W e have Marlon Har gis on keyboards from Somerset, Ky., who’s been with us since 1975 or ’76. And then came Steve Goetzman in ’77. Steve’s on drums. He’s originally from Louisville. Then came Sonn y LeMaire in ’78. Sonny is originally from Jeffersonville, Ind. It’s just right across the river from Louisville, so we claim him as a Kentuckian. And then Les T aylor came in ’79. Les is from London, Ky.

MW: Exile came together in Richmond, Ky., a rural little Kentucky town where all these extremely talented musicians found each other. Do you find that strange?

JP: Well, you know, it is strange that we could find as many as six guys in Richmond, Ky., in 1963 who wanted to dedicate themselves to being in a band. I just can’t believe it’s actually been 50 years, and also that I still have the enthusiasm for it that I do.

MW: As they say, the apple doesn’t fall far from the tree. True in your case, correct?

JP: My daughter, Jessie Rose, has been involved in the music business for several years now. She’s a deeply talented artist, and it’s been my pleasure as fellow musician and Dad to watch her progress skyrocket over a MW: One of the things that you guys fairly short period of time. She began to fully brought to the table back in the day, which define herself when she started writing nobody else did, were the harmonies, which songs. I encouraged her early on to write you still do unbelievably today. Why did you until she was blue in the face — and then feel that was important? write some more. Once she got a taste of it, JP: From the moment we started reit was obvious that she had a natural underhearsing together, it seemed that everyone standing of the process. could hear harmonies. You know, it’s one As crazy as the business is, I never disthing to like to sing har mony, but it’s a couraged her against it, because I knew she whole other deal to be able to hear har had all the tools required to succeed. One of monies and how the different parts stack up her most important assets may be that she against one another. It’s just something that, Exile founder has no fear in front of an audience nor with over the years, we have found that we got J.P. Pennington the style of music she writes. Her songs and the best crowd reaction from. We just really PHOTO her stage presence are truly unique. She like to do it, and still do. W e do more harFURNISHED spends most of her time in Nashville now, mony singing now than we ever did. working with an excellent producer who beJP: ... We’re discussing a couple of lieves in her.

MW: And it makes the music sort of dis- and as chance would have it, we changed one member who had to go to the ar my; it things. We would like to have a boxed set.

On the homefront, ours is a house o f tinctive?

JP: Well, I think it has its way of defin- was Mike Howard. The band started looking We’re thinking about calling it Fifty Fifty — music. My wife, Suzie, is Jessie’s biggest for another guitar player, and I campaigned 50 songs in 50 years. So finding all the songs cheerleader and is a great songwriter as well. ing you, especially now. Not many people The three of us have written quite a fe w do it. I’m not ar guing with the way people to be that guy. The first guitar I ever played and the masters, and even the rights to do are making records, because I really like the on a recording with the band was when we it, has been pretty much an uphill battle. But songs together and plan on many more.

My son, James, sings baritone with the music that I’m hearing now, but it seems like made our first album in 1972, up in Chicago. we want to include the ’60s, ’70s, ’80s, ’90s, 2000s, and maybe do a few new songs that awesome barbershop chorus group, The harmony singing has sort of gone by the we’ve got in our pocket too. And this year MW: You’ve really made a name for Kentucky Vocal Union. They placed third in wayside. We are trying to keep it alive. yourself as a songwriter . How do you ap- we would like to do a live album, so we’ve the world in inter national competition in got a lot on our plate. proach that?

Portland, Ore., this past summer . James MW: A lot of people may not know JP: I don’t think there are a whole lot of knows more about singing harmonies than that, when the band first got together , you MW: Speaking of “live,” I don’t think rules in songwriting, other than making I could ever hope to know. I’d say he has were the bass player. people realize you are on the road as much the best ‘ears’ in the family. He and Jessie rhymes, but I usually like to write from a JP: Yes. as you are and have been every year . How are my go-to backing vocalists on the many title. If a title is good enough, then it will many dates a year are you averaging? recording projects I’m involved in as a proMW: N ot the guitar player . And now help the song write itself.

JP: We probably average 80 to 90 dates ducer. James always bales me out when I I’m most likely going to write a chorus you are one of the finest guitar players that first. The chorus is the section that will occur a year. That’s plenty enough. That’s every can’t think of how a section of a song I know. How did it all evolve? long weekend, just about. should go. He’s brilliant, and I’ve learned a JP: I was always a guitar player , but several times over the course of the song, It’s not like we did it back in the ’70s lot from him. when the band for med, what they needed and it’s usually after a verse or two. So I kind and ’80s, where we would do 225, but the of go to the middle of the song and write was a bass player. touring is what allows us to be able to afMW: Thank you, J.P. They had two other guitar players, Paul that part of the song, which is the chorus, ford to go into the studio and make the and then when I get that like I want it, I’ll JP: Thank you, Mike.

Smith and Mike Howard. I’d never played music. So which comes first? It’s kind of a bass before. As a matter of fact, during those come back in and write what I call the For more information on Exile, days it was rare to see an electric bass any- dreaded first verse — and then the double- double-edged sword: You have to work to create work. You create work by releasing dreaded second verse or third verse. I like check the website at www.exile.biz. where, because most bands had a standup to write short songs, short commercial songs. music and hopefully garnering some interbass or acoustic bass. ... So I was a bass est in people, and it keeps you out there For more information on the Lexington player for the first nine years of the band.

Area Music Alliance visit lamalex.org.

And then we changed some members, MW: Any recording projects on the calendar? working.

22

Business Lexington • March 1, 2013

Robyn Peterman tells a big lie and gets her book published:

A guide for aspiring authors

By Mike Tuttle

look at it now, and it is so overwritten, but I finished. I sent it out to like 30 agencies and e are not interested in science got 30 rejections.”

With the traditional route not bearing fiction that deals with negative utopias. They do not sell.” –re- any fruit, Peterman tried another approach.

“I went to a convention called Romantic jection letter for Stephen King’s Carrie “… an absurd and uninteresting fantasy Times, which is a reader/writer convention, which was rubbish and dull.” –rejection let- that happened to be in Chicago last April. It was amazing. It was like going to school for ter for William Golding’s Lord of the Flies These are two of the many pieces of In- a week. I was in seminars and classes, and it was great. ternet lore about writers and the rejections “And there was this thing called Pitch-athey received before finally landing a pubPalooza, where a ballroom was lined with lishing deal. Many of the famous rejection New York publishers and agents,” she constories are about initial tinued. “They listed who was going to be pitches or queries sent to there, so I picked nine places. You had three agents and publishers that minutes to pitch your book before a buzzer are turned down — somewent off and you had to get up and move to times in a very cruel manthe next table. Well, I had nothing new finner. J.K. Rowling, John le ished. I had written about 20,000 words on Carré, and Dr. Seuss all resomething for NaNoWriMo — National Noceived multiple rejections vember Writing Month — that I thought was before finally getting pubPETERMAN pretty cool, so I thought, ‘I’ve got a beginlished. Aspiring writers read and reread these rejection stories, reminding ning. I’ll pitch that. What have I got to lose?’

Peterman pitched all nine places, all the themselves to hang in there and keep trying, while playing the part of a novelist with a keep sending letters, and keep mailing queries and manuscripts to agents who may completed manuscript.

“Basically, I lied — humongously,” she never look at them.

Robyn Peterman tried something differ- said. “I pitched it like it was a finished book.

I’ve been an actor my whole life, and this ent. She lied. But let’s back up a moment, because her story starts of f sounding a lot was like an audition. People were laughing and carrying on.” like all the other rejection-laden tales.

And it worked.

“I’ve always written, but I never finished “The thing is, all nine people asked for anything,” explains Peterman. “I have like 50 great American novels up in my attic. Then a full manuscript,” she said. “So I had to tell I wrote a 140,000-word paranormal vampire them all, ‘Thank you. I’m going to go home and have it professionally edited. I’ll have it tome that I was so proud that I finished. I CONTRIBUTING WRITER

“W

to you in three weeks.’ Which meant ‘write it.’ I went home. My husband was away working. I almost stayed awake for three weeks straight. But I wrote it, and I sent it off, and I got four offers.”

Peterman went with Kensington Publishing.

“And then I told them that there was a sequel,” she said. “So we did a two-book deal.”

That book is called How Hard Can It Be? It tells the story of an accountant who tries to launch a writing career, with humorously outlandish results. It is selling in Amazon’s Kindle Store online now, with the print version to come.

The reviews and recommendations for the book are piling up. The sequel is written.

Peterman is off and running, and it is the medium of e-publishing that put her book “on the street” as fast as it did.

“The turnaround for a hardback or paperback book is usually a year to 18

BASICALLY, I LIED — HUMONGOUSLY. I PITCHED IT LIKE IT WAS A FINISHED BOOK. I’VE BEEN AN ACTOR MY WHOLE LIFE, AND THIS WAS LIKE AN AUDITION.” AUTHOR ROBYN PETERMAN

months,” explains Peterman. “With e-publishing, [it’s] not nearly as long.”

Online publishing is a phenomenon that shows no sign of going away — ever.

Whether it is used by a publishing house like Kensington for a writer like Peterman, or used by someone who cannot find or does not want a traditional publisher, outlets like Amazon’s Kindle publishing are changing the face of the publishing world forever.

Peterman mentions another famous name in the e-publishing world: J.A. Konrath. Konrath personally writes detective and thriller stories, but it is his role as the outspoken champion of independent publishing that gets him the most press. He maintains a blog called “A Newbie’s Guide to Publishing” that watches the latest goingson in e-publishing, both for traditionally-represented writers and for independents. It is very actively followed and commented upon by writers.

Konrath names names and publishes numbers, telling how much he makes on his books and how he does what he does, and encouraging others to do the same.

Whether one follows the more traditional path that Peterman followed for publishing or one chooses to go it alone, e-publishing is the future. In fact, it levels the playing field so much that Peterman is actually looking at a whole new avenue publishing independently. A completely dif ferent line of stories, including a book calledFashionably Dead that she describes as “snarky, sexy paranormal,” is in the offing from her.

Watch for that.

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23

PARTINGTHOUGHTS

Chuck Creacy Publisher Chris Eddie Publisher Tom Martin Editor in Chief Susan Baniak Features Editor

Parking: Urban thoughts from suburban eyes

By Robert Wagoner GUEST COMMENTARY

A

s a retired real estate entrepreneur , I’ve taken an interest in focusing the experience and skills I’ve accumulated over years of work in suburban retail development, and the time retirement now affords, to offer observations and potential solutions as efforts continue to revitalize Lexington’s downtown.

I don’t claim to have all of the answers to the challenges of sustaining the redevelopment of our central business district. And I have the greatest respect for the many others who are offering their active and earnest engagement in the process of figuring out the best course of action.

After decades of intimate involvement in the design and construction of suburban commercial developments, I believe many of the lessons of that work can be reimagined to benefit our downtown.

Given my suburban experience, it was easy to contrast development opportunity in the city’s core versus that of its suburbs. And after assessing downtown development potential, it is clear that no greater disadvantage exists than parking.

While urban parking is a problem common to many cities, it is an especially important challenge for us in light of our decision as a community to prevent sprawl into the unique outer ring of greenspace surrounding our city’s core.

The elusive downtown customer is complex and requires additional study, but one thing rings clear: When this customer comes downtown they do not walk, bus or bike, they drive. And when they do, they are challenged by the multiple shortcomings of our disconnected parking systems, producing confusion, congestion and circumvention.

Comprehensively looking at downtown parking, in my opinion, begins with the existing customer, who is often pampered with the best spaces, and the potential customer, who doesn’t understand the nuances and is pushed toward the less convenient spots, thereby encouraging less repeat visits. W e learned the lesson long ago in suburbia, to incorporate lease language requiring employees to park in designated remote areas.

In downtown, we must reassess current “reserved space” locations, while balancing the politics of doing so.

Put simply, if downtown parking is viewed as a pain compared with the relative ease of pulling up close to a suburban business, the typical car-driving suburban Lexingtonian can be expected to avoid downtown.

And that works directly against all ef forts to revitalize the city’s core and contain expansion into the surrounding landscapes that contribute to Lexington’s attractiveness.

In the fall of 2011, Space Group, the Oslo-based urban design fir m, offered its master plan for a proposed 48-acre Rupp Arena Arts and Entertainment District. The vision included parking solutions that would conveniently serve the proposed district

24

while likely drawing traffic away from what is already developing, on its own, as downtown entertainment zones: the section of Short Street between Broadway and Limestone, as well as the Jefferson Street corridor and other sections of the Northside.

And then there is the area east of Limestone, where such venues as The Downtown Arts Center, Alfalfa’s, Natasha’s Bistro & Bar, Portofino and the Kentucky Theater struggle to compete with the concentrated energy of the western portion of downtown.

Yet, these existing, functioning investments

most arena productions.

Given what I have noted, you may find it odd that I support both of these master planning projects, believing that many of their respective longer-term components are right on target. But their approaches to parking solutions that benefit existing downtown businesses does not appear to be a priority.

For guidance on how Lexington might sustain the restaurant businesses now lining Short Street, I direct your attention to Greenville, S.C., with its vibrant Main Street retail and restaurant district. Key to its suc-

PHOTO BY DREW PURCELL

PUT SIMPLY, IF DOWNTOWN PARKING IS VIEWED AS A PAIN COMPARED WITH THE RELATIVE EASE OF PULLING UP CLOSE TO A SUBURBAN BUSINESS, THE TYPICAL CAR-DRIVING SUBURBAN LEXINGTONIAN CAN BE EXPECTED TO AVOID DOWNTOWN.” in our downtown should be among infrastructure priorities, with convenient parking at the top of the list.

Most recently, in January of this year , five teams of foreign landscape architects competed to complement the Rupp plan with a concept imagining a rebor n Town Branch Creek flowing through a series of “pocket parks” and water features from one end of downtown to the other. Despite more than 97 percent of our population living beyond walking distance of downtown, none of these presentations referenced parking — other than to consume Rupp Arena’s Cox Street parking lot, which is vital to accommodating the constant stream of tour bus and tractor-trailer caravans that arrive with

cess is the collection of public parking structures along parallel streets one block away from Main Street, on either side. They are convenient, affordable and designed in such a way as to be perceived as safe.

One solution borrowed from the Greenville system to offer convenient parking to the Short Street corridor is to create a line of parking options along Church Street, which runs east-to-west, one block north of Short. This could be incrementally implemented by first or ganizing the existing patchwork of surface lots into safer, more cohesive surface parking. These targeted lots could then be ultimately developed into a low-rise deck facility that would serve multiple blocks, thereby encouraging compact

Business Lexington • March 1, 2013

and contiguous building infill on many of the current surface lots.

Accomplishing such an undertaking would require a pooling of talented collaborators who are wiling to roll up sleeves and offer this cash-challenged city their services, pro bono.

Real estate professionals: Would you be interested in helping with assemblage and trades? Attorneys: How about trades, air rights, reciprocal use, condemnation and the threat of condemnation as negotiation incentives? Accountants and bankers: How can we afford to implement before we design it? Retailer, residential, office and corporate executives: If you saw a solution developing, would you return? Design and construction professionals: How might we position parking more conveniently, package and landscape it attractively, and construct it economically?

If you are looking for a fee or more interested in hearing your own academic solutions, you’re probably not a good candidate for this team. And if you do not fit within any of the above contributing classes, then consider yourself among the most important class: the customer class.

Support downtown by shopping, dining and responsibly drinking in our city’s center. Observe its fragile underpinning and offer small ideas that might make a big difference.

Imagine what could be accomplished if we could assemble this team as a subset of CitizenLex, a new idea for citizen engagement in city planning taking root as a direct result of Mayor Jim Gray’s initiative to enter Lexington in the “The Bloomber g Mayor's Challenge” — a competition sponsored by Bloomberg Philanthropies to spur innovation in American cities. Million-dollar prizes are at stake in the competition.

Through March 6, citizens have the opportunity to Vote Lexington at www.huffingtonpost.com/mayors-challenge. The Huffington Post is sponsoring the vote and features an essay by Gray about CitizenLex. The winner of the Mayors Challenge is expected to be announced this spring.

I have no personal financial interest in our core city. At 63, I’m not looking for accolades; I’m just one of the many Lexington residents who is in love with our city and see powerful potential by thinking dif ferently about it. Walk our city’s sidewalks with me; allow me to share my ideas. I have found, each time I do this, new ideas and observations surface from those I walk with.

You too can help build our Great American City — inward.

Robert Wagoner is a retired retail design and development professional with a degree in architecture from the University of Kentucky. The Lexington development projects he has been involved with include Lakeview Plaza (Richmond Road. Kmart / Kroger), Regency Center, Tates Creek Centre, Lexington Green, Village Shoppes, Palomar Center and Tates Creek South.

Recognizing the humanity around us shouldn’t be reserved for special holidays The teachings of our faith traditions demand that we think spiritually 24 hours a day, not just in the moments when we sit in the pews of our houses of worship.

To this end, we want to create an ongoing conversation that honors our respective religious traditions more deeply, in every facet of our lives. While we feel passionately about our chosen topics, we hope more passionately that the readers will carry on the conversation through their personal and business relationships.

We honestly care less that you agree; we want you to care enough to listen to each other on matters of the spirit in business.

Authors of this ongoing series of commentaries will rotate among: Rev. Mark Davis – First Presbyterian Church; Rabbi Marc Kline, JD - Temple Adath Israel; Rev. Dr. Mark Johnson – Central Baptist Church; and Rev. Kenneth Golphin – A.M.E. Itinerant Elder – Asbury Chapel AME Church, who offers the second installment.

By Rev. Kenneth Golphin GUEST COMMENTARY

I

n his novella A Christmas Carol, Charles Dickens relates the tale of a man whose self-perceived success in business has become so rote and important that other events and people around him lose significance.

Scrooge becomes seemingly oblivious to the season of the year, the plight of those who have helped him become successful, and the sufferings of those af filiated to the third or fourth degree.

The illness of Tiny Tim, the drudgery of Scrooge’s clerk who labors in dark tediousness for meager wages, even the celebratory desire of his own nephew to acknowledge the Christmas season, seems to bypass the man whose sole intent seems to be to amass a fortune he has no real desire to spend. And so the story goes, with a visit from his deceased business partner , Marley, who instigates a series of ghostly visits to make Scrooge aware of what has really passed (for Scrooge has, like a lot of us, a clouded vision of reality), what is present, and what could be if he continues on his current path.

Without belaboring the retelling of the story, Scrooge eventually sees the errors of his ways, recants his for mer demeanor and gains a cheerier perspective, even to the point of greater generosity — not just to family and employees, but to the young man who fetches the turkey for him and, implied, to others.

Sometimes I think it is too bad that this tale only really comes out at Christmastime.

Or that it is so closely related to that season of the year that many of us only perceive it as a clarion call to celebrate the Yule. To be sure, it does seem that, in the period in which the book was written and set, Christmas had become for many a rather ho-hum event. Trees and greeting cards had just come into use, and after a series of wars and economic calamities, great celebrations just

PHOTO FURNISHED

weren’t the thing. This tale is often credited with changing American and British perspectives on the season and bringing a newfound purpose to merriment festivities.

But suppose we see a deeper meaning.

Suppose we recognize that, whether or not it’s Christmas, there are still those for whom life is drudgery. Those who work for us help

us to be the people we are, but who go home to lives of “just enough” or “barely making it.” Suppose those for whom affordable health care is just a pipe dream come wobbling before us on crippled legs, not asking for a handout, but also not wallowing in their misery — just visible enough for us to realize the blessing of morning workouts

Business Lexington • March 1, 2013

or evening jogs. What if we begin to see those who seem to have what might be termed an extreme propensity to waste time and energy in frivolities as encouragers to remember the old adage about “all work and no play?”

I guess my thought is that we are blessed for the purpose of being a blessing, coupled with the fact that we are to care about each other and not just ourselves. That attainment is better savored by appreciating those who labor not just beside us but around us. As is taught in my religious tradition, none of us truly succeeds unless all of us succeed. And all of this works in both directions on the ladder of success.

The Lexington in which I live and serve is truly a diverse city, full of people of every walk of life, of dif ferent hues and backgrounds, and stories, all coming together for the common good of the whole. But as in Dickens’ story, we risk the danger of becoming so narrowly focused on our per sonal goals and desires, we might miss the importance of seeing each other, not just as racially or sexually or economically or culturally different, but as people. People who are just trying to make it in life. People who sometimes do need each other to make it. I think the biggest lesson (at least one of them) that Scrooge learns in the story is not just that he has the resources to make a difference in other lives, but that he has needed help himself all along. That he didn’t make it to where he is alone. Maybe in the face of health-care debates, housing dilemmas, social intolerance, fiscal cliffs, immigration reforms, rising prices and impending sequesters, a retelling of this classic is in order.

Kenneth J. Golphin is Itinerant Elder at African Methodist Episcopal Church and chair of the Lexington-Fayette County Human Rights Commission, as well as a Lexington citizen.

25

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Feb 26 – March 3 Kentucky Speech Language Hearing Association, 2013 Annual Conference at the Hyatt Regency Lexington. 1,935 people expected.

Feb. 27 – March 4 Pony of the Americas Club Inc, annual meeting at the Clarion Hotel. 475 people expected.

Feb. 27 – March 3 Kentucky Arts Council, Kentucky Crafted, the Market 2013 with rooms at various hotels around town. Event to be held at the Lexington Center.

8,300 people expected.

March 1 – 3 Fayette County Young Democrats, 2013 Kentucky Young Democrats Conference at the Hilton Lexington/Downtown. 125 people expected.

March 8 – 10 Benevolent and Protective Order of the Elks of the USA, 93rd Annual Elks National Bowling Tournament with rooms at the Clarion Hotel. 2,800 people expected.

COMMERCIAL BUILDING PERMITS The Larkin Group LLC, remodel general business office, 547 Euclid Avenue Suite 150 (South Central Bank), $50,000.

Canup Inc, remodel general business office, 2220 Executive Drive (Fairway Investment Holdings), $36,000.

Kebco Inc, remodel general business office, 250 West Main Street Suite 600 (Corrisoft LLC), $108,055.

Kebco Inc, remodel general business office, 250 West Main Street Suite 1200 (Dinsmore & Shol, LLP), $184,093.

Kebco Inc, remodel general business office, 161 Lexington Green Circle Suite A-16 (Langley Properties), $36,243.

BHI General Contractor LLC, remodeling restaurant, 2348 Nicholasville Road (Marco’s Pizza), $95,000.

The Bristol Group, general business office, 211 Fountain Court (Switco IV, LLC), 54,451 sq.ft., $3,394,000.

Harmony Home Builders LLC, apartment remodeling, 120 East Main Street (Anderson Communities), $300,000.

NEW BUSINESS LICENSES Builder | Mulberry Builders LLC, owned by Chris Mulberry, 917 Gerardi Rd., Lexington, Ky., 859-396-2523.

Cell Tower Construction | Grapevine Solutions Inc, owned by Melody Clark, 1395 Kevin Lane, 865-670-1001.

Clerical Support | Owned by Ramona Bayma, 859-519-9569.

Comic Book Store | Wicker, Christopher, owned by Christopher Wicker, 127 Towne Center Dr., Lexington, Ky. Commercial Cleaning | Keeping It Tidy, owned by Eric West, Polly West, 269 Bernie Trail Nicholasville, Ky., 859248-6257.

Commercial Construction | BHI General Contracting, owned by Jim Mitchell, 100 Office Park Dr., Ste. H, 513-532-9262.

Commercial Property | Stinnett Wallace, owned by Troy Smith, 508 E Main Street, Ste. 100, 859-269-3302.

Commercial Real Estate | Versailles Land Group LLC, owned by Eli Mashni, 853 Lane Allen Road, 859621-9557.

Computer Hosting | Cedar Crestone Inc, owned by Cal Yonker, 1255 Alderman Dr., Alpharetta, 678-385-7540.

Construction & Management | Owned

by Weston Marcum, 974 Breckenridge Ln., Ste. 180, 502-475-4411.

Counselor | Owned by Richard Walker, 3028 Stanford Dr., Lexington, Ky.

Electrical | Ric Electric LLC, owned by Stehpen T Ford, 2127 Beeler St., New Albany, Ind., 812-941-9124.

Employee Leasing | First Financial Employee, 11400 Parkside Dr., #500.

Engineering | Garver LLC, owned by Dan William, 2333 Alexandria Dr., Ste. 107, 501-376-3633.

Equestrian Training | Owned by Lisa S Everett, 133 Valley Brook Dr., Frankfo, 859-254-4427.

Fire Protection Contractor | Charter Fire Systems Inc, owned by Shawn Obrien, 245 Riverchase Pkwy., Ste. P, 205-982-3301.

Food Delivery | Owned by Scott Justice, 1550 Trent Blvd., Apt. 807, Lexington, Ky., 859-523-9188.

Food Service Management| Guckenheimer Services LLC, owned by Randall Boyd, 1000 Tempur Pl., Lexington, Ky., 502-689-8510.

Garage Door Installation/Repair | Owned by William G Stathan, 245 Breckinridge Ln., Versailles, Ky., 859583-5024.

General Contractor | Kentucky Homes Design, owned by Glenn Embrey, 502370-5483.

General Contractor | Enola Contracting, owned by Allen Clark, 1900 Three Springs Rd., Bowling Green, Ky., 850-638-8886.

Graphic Design/Creative Services | Mixed Medium LLC, owned by Lynsey Jones, 2322 Harrods Pointe Trace, Lexington, Ky., 859-489-5562.

Handyman | Owned by Gary W Columbia, 859-312-9406.

Healthcare Advocacy | Owned by Janice Houp, 859-361-2392.

Holding | Tyco Fire & Security Us, 9 Roszel Rd., Princeton, N.J., 609-7204771.

Imported Product Sales | African International, owned by Faizi Chanje, 1825 Liberty Rd., Apt. 611, Lexington, Ky., 315-391-9556.

Insurance | Turner Insurance, owned

by Christy Turner,, 3320 Clays Mill Rd., Ste. 211, 859-219-0972.

IT Consulting | Owned by Forrest D Wright, 2441 La Cross Ct., Lexington,

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Ky., 859-396-7812.

Kiosk Purchase Electronic | Ecoatm Inc, owned by Thomas L Tullie, 3401 Nicholasville Rd., Lexington, Ky., 858381-5552.

Landscaping | Owned by Adam Kidd, 125 Clay Ave., Lexington, Ky., 859368-8498.

Landscaping | Owned by Cecil W Tichenor, 859-293-2740.

Law Firm | Law Offices Of Johnson, owned by Charles E Johnson, 271 W Short St., Ste. 409, Lexington, Ky., 859-233-0313.

Lawncare | A & B Prop Maint/Lawn, owned by Rachel E Brown, 2328 Woodfield Cir., Lexington, Ky., 859351-5204.

Lawncare | Owned by Aaron Lineback, 3444 Featherston Dr., Lexington, Ky., 859-382-4299.

Microbiological Lab Test | Institute For Environment, owned by Mansour Samadpour, 767 Winchester Rd., Lexington, Ky., 206-522-5432.

Motel | Owned by David G Drury, 5170 Russell Cave Rd., Lexington, Ky., 859-229-5587.

Motel | Owned by Phyllis Gregory, 5170 Russell Cave Rd., Lexington, Ky., 859-402-7414.

Nightclub | BBNG LLC, owned by Brian Dodge, 2320 Palumbo Dr., Lexington, Ky., 859-272-2582.

Online Realty Sales | Ebth Holdings LLC, owned by Ebth Investments LLC, 193 Kentucky Ave., Lexington, Ky., 513-242-3284.

Personal Training | Co In Ky Training LLC, owned by Matthew Greenemeier, 1101 Beaumont Centre Ln., 859-333-6316.

Personal Training | Owned by Raines Mielcarek, 620 Summershade Cir., Lexington, Ky., 859-619-6777.

Photography | Owned by Lynnesy Catron, 418 Culpepper Rd., Apt. 2, Lexington, Ky., 502-541-8658.

Property Mgmt | PVH Properties Inc, owned by Phil Henry Sadlo, 920 Mcclain Dr., Lexington, Ky., 859-3969022.

Real Estate Management | Owned by John T Langley, 832 Wellington Way, Lexington, Ky., 859-396-7486.

Remodeling | Jaymase Construction LLC, owned by Kevin Guzman, 3900 Crosby Dr., Apt. 1704, Lexington, Ky., 859-509-8385.

Rental Real Estate | Founders Asset, 4520 Bishop Ln., Louisville, Ky. Rental Real Estate | Norbmac LLC, owned by Timothy J Cambron, 859621-6069.

Rental Real Estate | Walnut Works LLC, owned by Walt Freeman Trust Fund A, 502-491-4090.

Residential Appraisals | Owned by Thomas T Donnelly, 657 Montclair Dr., Lexington, Ky., 859-230-4646.

Restaurant | Brick Oven Pizzeria LLC, owned by Michael D Kolenda, 4371 Old Harrodsburg Rd., 859-223-2300.

Restaurant | Owned by Luis Gutierrez, 757 E New Circle Rd., Lexington, Ky., 859-967-4800.

Restaurant | Srj LLC, owned by Richard Derrickson, 2421 Members Way, Lexington, Ky., 859-576-0395.

Restaurant Equipment | Chef Supply LLC, owned by David Poff, 1512 W Main Street, 502-585-1907.

Restaurant Ltd Svc | Malibu Heights Subway LLC, 3346 Ridgecane Rd., Lexington, Ky.

COMMERCIAL LOANS Artique Inv LLC from Morris, Stanley A for $20,000.

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Marcum Enterprises LLC from Republic Bank & Tr Co for $704,000.

Jhe Capital LLC from Bank Of The Bluegrass for $745,429.

Kingpost LLC from Traditional Bank for $750,000.

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South Broadway Land LLC from Farmers Natl Bank for $3,700,000.

American Dietetic Association

Dale Carnegie Training® with Breakfast

Learn how to increase your company’s productivity, sharpen your communication skills and strengthen your effectiveness as a leader. The Dale Carnegie Training® Breakfast Series produces results. The entire series is available for just one low price.

Includes a one year subscription to Business Lexington.

TOPICS: March 15

Conflict Management

April 19

Rapport: Becoming a Trusted Advisor

May 17

Effective Delegation

All classes held at Sullivan University - Lexington Campus

BusinessLexington This series will fill fast. For details, go to: www.bizlex.com/dalecarnegie

Producing the 25 millionth North American-built Toyota took over 19,000 Kentuckians.

Toyota’s 25 millionth North American-built vehicle recently rolled off the production line at Toyota Motor Manufacturing, Kentucky. It’s the result of more than 19,000 TMMK team members, parts suppliers and dealers working together to produce world-class automobiles.

The milestone vehicle – a 2013 Avalon – represents 26 years of craftsmanship, care and an unwavering commitment to the Commonwealth.

www.toyotageorgetown.com