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New boutique hotel is designed to fit in by standing out

IndependentBusiness

New Boutique Hotel is Designed to Fit In By Standing Out

BY KATHIE STAMPS

CONTRIBUTING WRITER

Elwood Hotel & Suites opened in Lexington in September. Located just o South Broadway near its intersection with Mason Headley and next to the new Lexington Clinic, the boutique hotel stands out with its colorful four-story mural adorning an otherwise white façade. Artistic and eclectic touches continue inside, with the mural theme continuing along hallway corridors and guest rooms appointed with bright red vintage-style mini-fridges and comfortable décor that hints at a Thoroughbred theme without going overboard.

Travelers who once sought familiarity and consistency are now searching for an “individual, authentic and local experience,” said Hilda Delgado, who, along with her husband, David Bader, created Elwood Hotel to reflect its Lexington location.

Fiddletree Kitchen & Bar, located in the lobby, is open for breakfast, lunch and dinner and o ers indoor dining as well as an outdoor terrace with firepits. Delgado wants Fiddletree to be known as a three-meal restaurant in the community that happens to be in a hotel, instead of just a hotel restaurant, she said. In all, Elwood Hotel & Suites has 62 rooms across four floors, approximately a third of which are extended-stay suites with a kitchenette.

Through their company, Los Angelesbased Deseo Group, the Elwood is the first of what Delgado and Bader plan will be a group of boutique hotels located in secondary markets with a lot of demand, each with a unique look and feel. In Central Kentucky, for example, tourists come in for sporting events, the Kentucky Bourbon Trail, Keeneland and other equine enterprises, while business, conferences and hospitals bring in other travelers, making Lexington the perfect spot to launch their new hospitality concept.

“We are looking for similar towns, starting in the Southeast,” Bader said.

Bader is originally from Lexington. He lived here until he was 14, when his family moved to Boca Raton, Florida. He studied design and construction at the University of Florida and then took o for California. “Although I’m still a very big Kentucky fan, I’m kind of torn,” he admitted, “especially during basketball season.”

Delgado worked in Northern Kentucky in the mid-2000s and recalls her first drive to Lexington as “love at first sight.” She had never seen so much beauty at the same time, from the rolling hills and manicured pastures to the Thoroughbreds and fences. “When David and I started conversations around growing a portfolio of boutique hotels, we knew that Lexington had to be where it all started.”

The Elwood property has been through several ownerships over the past three decades, many of which were associated with the Campbell House next door. When Bader and Delgado found the property in June 2019, Bader tracked down the owner in Louisiana “and over the course of six months, talked him into selling the property,” he said. Deseo Group closed the transaction in March 2020, a week into lockdown.

“A select-service hotelier bought it about two years prior to us and did some renovations,” Bader said, of an industry term meaning a hotel with no food and beverage service. “We undid those renovations and took it down to its bones.”

Deseo Group held a ribbon-cutting ceremony with Commerce Lexington in late August and opened for business right after Labor Day.

Local businesses have a big presence at Elwood Hotel, including Jarboe Construction, EOP Architects, Community Trust Bank for lending and Bullhorn Creative for branding. “The only nonlocal designer we have is our restaurant designer,” Bader said. “Everyone else is 100 percent local, including all of the trade contractors, and that was on purpose.”

Delgado and Bader were impressed with EOP Architects from their designs of the visitors’ center at Bulleit Distilling Co. in Shelbyville and the welcome center at Woodford Reserve in Versailles, and they worked with EOP interior designer Lesley Thomas. “She was the primary reason we selected EOP,” Delgado said. “We knew she would understand our vision and be flexible and collaborative with our input.”

Art is an important factor in creating a bespoke design. Working with LexArts, Delgado and Bader received close to 200 applications for the exterior mural. They chose Canadian artist Alixandra Jade. “And then we doubled her scope,” Bader said. Jade also hand-painted a mural in the conservatory and artwork throughout the corridors on each floor.

To support and promote a di erent local nonprofit each month, Deseo Group started an in-house philanthropic program called Elwood Social Club. On the last Saturday of the month, a percentage of that day’s revenue from rooms, food and beverage are donated to a local organization. LexArts was the inaugural beneficiary in September, Lexington Humane Society in October.

Bullhorn Creative guided Delgado and Bader through a naming process that landed on the hotel’s name. Elwood was also the name of the horse that won the Kentucky Derby in 1904 and the first Derby entrant and winner to be owned by a woman (Lasca Durnell) and the first winner bred by a woman (Emma Prather).

Everything about Elwood Hotel & Suites is focused on “originality and being experiential,” Delgado said. “Individuality is a must.” BL

“When David and I started conversations around growing a portfolio of boutique hotels, we knew Lexington had to be where it all started.”

HILDA DELGADO , CREATOR AND CO-OWNER OF ELWOOD HOTEL & SUITES The recently opened Elwood Hotel & Suites features Fiddletree Kitchen & Bar. Its owners hope Fiddletree becomes known as a restaurant that happens to be in a hotel, rather than just another hotel restaurant.

PHOTOS BY ALYSSA ROSENHECK

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Red Oaks Forest School, which o ers outings and outdoor-based programs for school-age children, was recently recognized by the Kentucky Association of Environmental Educators with a 2021 Outstanding PreK-12 School Award for Excellence in Environmental Education.

PHOTOS FURNISHED

Rooted in Exploration

Red Oaks Forest School expands on its nature-based curriculum, wins statewide recognition

BY CAMPBELL WOOD

CONTRIBUTING WRITER

At Red Oaks Forest School, based in Stanton, Kentucky, the forested land of Red River Gorge in Eastern Kentucky is a playground for learning, exploring, making connections and growth.

The idea for the nature-based program was sparked in 2014, when Melissa Rudick told friend Tina Brouwer about a forest school her children had attended when they family lived in Switzerland. They decided to start their own forest school in Kentucky for school-age children and their families. “It’s a team project,” said Brouwer, co-director of Red Oaks Forest School, along with Rudick and Hannah Harris.

“We started Red Oaks with friends,” said Brouwer. “Inspired by the joy our children experienced in nature, we committed to spend time there with them. We prioritized it … We put it on our schedules.”

And they stuck by their appointments with nature, no matter the weather, while o ering their children room to roam.

“We decided to take our own approach,” said Brouwer. “The kids led the way in explore time. If they wanted to play, they needed to figure out the rules in cooperation.”

That was in 2014, with about seven families and some 20 children participating. In 2018, Angie and Colby Christianson, owners of 100 acres of forested land known as The Wilds in the Red River Gorge area, made 60 acres available to Red Oaks for use during the week.

When Red Oaks’ directors decided to add a curriculum of lessons and family activities, Brouwer said their enrollment tripled. To better serve the community in Eastern Kentucky, the school began o ering scholarships. Today 20 percent of net revenue goes toward families in need, “and we are working to increase that,” said Brouwer.

Its nature-based, enrichment-oriented o erings and community focus are several reasons why Red Oaks Forest School was recently recognized by the Kentucky Association of Environmental Educators (KAEE), which awarded the program its 2021 Outstanding PreK-12 School Award for Excellence in Environmental Education.

“There’s been a huge movement nationwide of programs for nature preschools,” said KAEE director Ashley Ho man. “That’s not something we have a lot of in Kentucky. I hope that by elevating the work of Red Oaks, we can see more nature schools.”

Improved academic performance and enhanced critical thinking skills are among several benefits of play-based environmental education for school-age children, according to research cited by the Natural Start Alliance, which is a liated with the North American Association for Environmental Education. As is developing personal growth, life-building skills, confidence, autonomy and leadership.

Brouwer and Harris draw from their knowledge of ecology and their backgrounds to inform the curriculum.

Brouwer studied conservation at the University of Kentucky, where she earned a master’s degree. An avid rock climber, she spent much time on the ledges of the gorge studying Peregrine falcons for her research— so much so that she became known locally as the “falcon lady.” She is also co-owner of Red River Rockhouse, a popular restaurant in the heart of the gorge.

Harris also studied conservation at UK, earning a Ph.D. based on her studies of the black bear population of Eastern Kentucky. Rudick has a master’s degree in social work, with a concentration in child mental health and development.

Together with their sta and board of directors, the Red Oaks team has developed a

variety of programs that encompass o erings for small children to adults, including homeschool programs, rock-climbing instruction, guided meditations in nature, birding classes, family nature walks and more. Some of Red Oak’s classes are o ered in partnership with Raven Run Sanctuary in Lexington, as well as at their location in Stanton.

Amid the COVID-19 pandemic, Red Oaks has produced a series of 10 video lessons called Neighborhood Nature, along with accompanying study guides. The Mighty Acorns program moved online and enabled children to stay connected with their nature buddies. They would talk and sing songs together, Brouwer said, while also getting things that were bothering them o their chests. “Parents said it was really valuable for kids to keep those connection with friends,” she said.

Red Oaks has since moved classes back into the forest, with small groups of children accompanied by their parents, and is working on the next phase of its expansion, Brouwer said. The school is also exploring opportunities to work with school systems and other organizations to o er nature-based enrichment opportunities. The school has recently partnered with Kentucky Waterways Alliance to help with an environmental education day in Wolfe County schools. Red Oaks is also piloting a forest therapy program in Lexington in conjunction with Partners for Youth, which serves at-risk kids.

When the KAEE surveyed 487 Kentucky teachers about environmental education, the No. 1 barrier was cost, primarily for transportation and site fees, Ho man said. Perceived risk is also a concern. “While teachers may see the value of nature visits, we have to market it to administrators, who may be afraid of liability issues, especially with city schools,” she said.

In a report prepared for the city of Lexington, KAEE emphasized quality over quantity when it comes to nature-based education. To maximize impact, the trip should also be preceded by and followed-up with related teachings and discussion. “It needs to be a significant event,” Ho man said.

And, through the e orts of Red Oaks and similar nature-based programs cropping up around the state, more Kentucky kids will have opportunities to grow and learn through time spent outdoors. BL

Red Oaks Forest School’s o erings include rock-climbing instruction, guided nature walks, birding classes and more.

PHOTOS FURNISHED

RENDERING FURNISHED

A rendering of the Blue Oval Battery Park planned to open in Glendale, Kentucky, in 2025.

Ford’s Battery Plant Will Bring Jobs, But Can It Power Economic Change?

While the recently announced Ford battery plant is good news for Central Kentucky, its impact as an economic engine remains to be seen

BY LIZ CAREY

CONTRIBUTING WRITER

On September 27, the Ford Motor Company announced it would be investing nearly $6 billion in Kentucky to build a plant in Hardin County that would produce the batteries needed to power electric vehicles. As part of a partnership with SK Innovation, the company will build BlueOvalSK Battery Park — twin battery plants employing 5,000 people to supply Ford’s North American assembly plants with batteries for its electric Ford and Lincoln vehicles.

“This is a transformative moment where Ford will lead America’s transition to electric vehicles and usher in a new era of clean, carbon-neutral manufacturing,” said Ford Executive Chair Bill Ford in a statement. “With this investment and a spirit of innovation, we can achieve goals once thought mutually exclusive — protect our planet, build great electric vehicles Americans will love and contribute to our nation’s prosperity.”

And while the plant will have an economic impact on the state, economists say it is neither a game-changer nor a long-term sure bet as an economic engine. The economic impact will be most felt at the local level, they said.

“I think when you think about a plant, like this one … in terms of the state as a whole, this is going to be a relatively small share of employment,” said Michael Clark, director of the Center for Business and Economic Research and an associate professor of economics at the University of Kentucky’s Gatton College of Business and Economics. “But if you look at the Hardin County area, this is going to be a pretty large employer given the population size that they have. So, depending on what kind of geographic area you’re talking about you get really a di erent type of e ect.”

Business leaders could look to Georgetown and the Toyota plant built in the 1980s to get a sense of how these localized impacts might be felt, said Kenneth Troske, economics professor at Gatton specializing in labor economics.

“It’s had a pretty significant impact on the community,” Troske said. “Obviously, the Georgetown community is a much di erent community because of that; Lexington is a much di erent community because of that. There are some businesses that have located here because of that … Kentucky is the leading auto parts-producing state in the union. That’s where we really fit into the auto manufacturing industry, and [the Ford plant] is going to continue to add to that.”

Just like adding Toyota’s 4,300 jobs did in the ’80s, Ford’s pledge to add 5,000 jobs to the local economy will have a significant impact, Clark said. The question is whether or not the plant will grow like Toyota did. The X-factor in the equation, he said, is what the plant was producing.

“There’s a lot more uncertainty, I think, with a battery plant,” Clark said. “With Toyota, one of the things we got was a really good company and a really strong brand. And so, we’ve been very fortunate that the total plant has continued to grow over time… With battery plants, there’s a lot of uncertainty about the long-term growth. There’s still a lot of questions about where the automobile industry is going to go in terms of fuel.”

While Ford seems to be preparing for electric vehicles to be a significantly larger part of the market, he said, there’s still uncertainty about whether the industry is going to go in that direction.

In May, Ford announced it would be investing $22 billion in electrification through 2025 as part of a plan to o er electric versions of its Mustang, F-150 and Transit lines. The company has also pledged to o er only electric vehicles in Europe by 2030, and to make significant reductions in the company’s greenhouse gas emissions globally, including by new vehicles sold, by 2035.

Research into other power sources and in other technologies may provide automobile manufacturers with other options though, the two economists said. Additionally, the battery being built at the newly announced plant is a lithium ion battery, which could prove to be unstable — like the batteries in the Chevy Bolt that were recalled — or could prove to be unsustainable to produce as the lithium and cobalt needed to make the batteries remain di cult to source, they said.

Still, the plant will provide jobs to the area, pulling labor in from all over the Central Kentucky region, Troske said, with people commuting in from rural counties and smaller towns along the I-65 corridor. Existing Ford workers, trained to work at the battery plant, would likely also move into the area, as would others from inside and outside of the state.

The employees who move to the area will be looking for housing, as well as businesses that will provide clothing, entertainment and dining options, he said.

But while the battery plant will add jobs, it will not be something that will transform the state’s economy, Troske said.

“This is more blue-collar production jobs,” he said. “This is not Nashville announcing it’s the new Amazon World Headquarters, right? ... This is not going to change the average level of education of people in Kentucky. And it’s probably not going to have that big of an impact on the average household earnings in Kentucky.

“It’s going to have an impact. It’s going to bring in some additional jobs and it positions Kentucky to continue to participate in the automotive industry but not at a completely di erent pace that we’re participating at right now.” BL

Lexmark Broadens its Cloud-Based Platform to Encompass the Internet of Things

One of Lexington’s largest employers expands into the predictive analytics business

BY TOM WILMES

BUSINESS LEXINGTON

Lexmark International has remained a top employer in Lexington since it was founded in 1991 as a spin-o of IBM to manufacture dot matrix printers. And, as with any longstanding technology company, Lexmark has adjusted its business model and services several times over the years to grow and remain competitive.

The company expanded into inkjet printing in the early 1990s, and by the 2010s exited the inkjet business to focus on software. In 2016, Lexmark was acquired by a consortium of three Chinese companies — Apex Technology Co., Legend Capital and PAG Asia Capital — and the company went private. Lexmark then shifted its focus again, to manufacturing laser printers for businesses.

While home printer use has trailed o dramatically in recent years, there are business environments where high-volume printing remains a necessity — places like hospitals, pharmacies, medium to large-sized o ces, universities and other applications around the globe. In addition to selling and distributing its printers, Lexmark can also help maintain, diagnose and optimize these connected devices through its managed services division.

Collectively, such connected devices and appliances are known as the Internet of Things, or IoT. To support the more the 1 million devices that Lexmark currently manages on behalf of its customers, the company developed a proprietary software platform to track and make sense of the endless streams of data it collects, even using machine learning to predict when a device is likely to fail and implement a proactive fix.

“We’ve been a leader in imaging, especially the managed print services business, now for 20 years. And, over those 20 years, we had to build this IoT system to manage these 1.2 million devices that we have all over the planet right now in 200,000 locations,” said Lexmark president and CEO Allen Waugerman.

Lexmark announced in late September that it would o er its proprietary cloudbased technology platform — called the Lexmark Optra IoT Platform — as a solution for any manufacturer or company with large volumes of collected data to better manage, understand and utilize that information.

“This isn’t a transformation, it’s an expansion,” Waugerman said of Lexmark’s latest o ering. “We’re taking core technology and expanding it into these adjacencies.”

The platform is a first step, Waugerman said. Within the next six months, Lexmark will introduce related hardware to help manufacturers outside of the imaging business better utilize the platform. It will also continue to o er managed services, consultation and support services for its devices and for companies using the platform.

“When you look at what we’re bringing as part of this portfolio, it’s a whole set of skills — analytics, machine learning — that’s part of this package that we’ve built,” Waugerman said. “We know what works for IoT devices like imaging, but the outcomes are the same whether you’re trying to reduce help desk calls, reduce development time, accomplish a remote fix or proactively service.”

While Lexmark has been working on building out its cloud infrastructure over the past five years, Waugerman said the company doubled down on its e orts during the pandemic.

“Pre-pandemic we said, ‘how can we leverage this?’, and then during the pandemic we accelerated that as we started to think di erently. Plus, imaging was impacted significantly early on in the pandemic,” he said. “We’re bringing all of that knowledge that we have in IoT from managing printers and taking it to a whole other set of industries.”

While the business imaging market is slowly contracting, it’s still a $60 billion industry globally, Waugerman said. Lexmark’s research indicates that its Optra IoT Platform and related services will help the company access what’s estimated to be a $50 billion industry related to IoT.

“I don’t want anyone to think that we’re exiting the imaging business, which is core to our DNA,” he said. “Our focus is continuing to grow share. We have a strategy around doubling our managed services business over the next few years, as well as winning more [original equipment manufacturer] customers. Lexmark also sells our engine technology to other printing providers across the world.

“And then with this IoT play, we believe the addressable market is … about $50 billion. We would love to take a modest share — a couple points — which is still a big number, and we’re just getting started.” BL

WAUGERMAN

“This isn’t a transformation, it’s an expansion. We’re taking core technology and expanding it into these adjencies.”

ALLEN WAUGERMAN, LEXMARK CEO AND PRESIDENT

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