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FAST LANE - April
1999 STATE
Louisville, Cincinnati Lauded for Pro-Business Attitude
A recent edition of Expansion Management magazine has included Louisville and
Cincinnati in its list of "Americas 50 Hottest Cities," a compilation of
the cities that do the best job of "going the extra mile" to land their
clients business.
The magazine asked 60 of the nations most prominent site location specialists
"to rank the nations up-and-coming cities in terms of business climate, quality
and availability of workers, taxes, incentives and quality of life," focusing
primarily on the "emerging second tier of cities." (The article noted that the
poll purposely excluded the "mega metro areas" such as New York, Los Angeles and
Chicago.)
Greater Cincinnati, which includes the Northern Kentucky area, and Louisville were both
ranked in the top 25 of the list, coming in at 19 and 24, respectively. John Fonner,
director of the Greater Cincinnati Chamber of Commerce, gave credit to the
Cincinnati/Northern Kentucky International Airport for making a "huge difference in
business growth" for the area.
"Were the second-largest hub for Delta Air Lines," said Fonner,
"and nearly all the relocating or expanding companies have cited the accessibility of
the airport as a major factor."
STATE
UK, U of L Team to Study State Education Reform
The University of Kentucky and the University of Louisville have formed an alliance
with The Kentucky Institute for Education Research (KIER) to help strengthen research into
the states education policies and practices. KIER is an independent, non-profit
organization to evaluate the impact of the Kentucky Education Reform Act (KERA).
Though both universities have had a prior affiliation with KIER, officials say that the
new alliance will strengthen that relationship and eliminate some of the overhead. Under
the contractual agreement, KIER will physically relocate from its Frankfort offices to the
University of Kentuckys Institute on Education Reform. Its co-directors will be Dr.
Lois Adams-Rodgers of UK and Dr. Joseph M. Petrosko Jr. of the University of
Louisvilles school of education.
Adams-Rodgers is the director of the UK education reform institute while Petrosko
serves as co-director of the Joint Center for the Study of Education Policy, positions
they will both retain as they work with the KIER board to implement its research agenda
and seek additional grant funds. Adams-Rodgers will manage KIERs day-to-day
operations.
STATE
Kentucky Cancer Specialists Among Best in Nation
Three Kentucky physicians are listed as being among the best cancer specialists in the
nation, according to poll results featured in last months Good Housekeeping
magazine. Dr. Moham-med Mohiuddin is a radiation oncologist at UKs Chandler Medical
Center. Dr. Susan Galanduik and Dr. Hiram C. Polk are colon cancer surgeons at the
University of Louisville Hospital.
The list was compiled following a nomination process that involved 280 department
chairs and section chiefs in surgical, medical and radiation oncology at major medical
centers throughout the country. They were asked, "In your opinion, which doctors
provide the most expert treatment and are the leading clinicians for lung, breast and
colon cancer in women?" The physicians were not allowed to recommend specialists from
their own institutions. Of the 1,200 doctors named, the magazine culled the 318 names that
were most often cited.
STATE
States Technology Push Puts Service Directory
Online
The Kentucky Resource Directory, a $200,000 project funded by Governor Paul
Pattons Empower Kentucky technology program, is now officially online, offering an
Internet database of some 45,000 federal, state, local and private services available to
Kentucky citizens.
With the official launching on April 1, Kentucky becomes the first state in the nation
to provide a directory featuring both private and public information. The site provides
phone numbers, detailed maps, links to web sites and other information from more than
14,000 providers. Users can access information ranging from health, education and Social
Security issues to technology training and workforce development
The web address for the Kentucky Resource Directory is http://resourcedirectory.state.ky.us.
ASHLAND
Leaders Optimistic About New Regional Economic
Partnership
With 13 separate government entities contained within a two-county area, establishing
priorities for the Boyd and Greenup county region as a whole has not always been easy. But
with the departure of Ashland Inc. (which moved its corporate headquarters to Covington in
January) area leaders have become keenly aware of the need to court new industry and
support existing businesses. As a result, a new regional economic program proposed by a
14-member steering committee representing civilian, business and government interests for
both counties has been met with across-the-board enthusiasm.
The Ashland Alliance would assume the functions of the Chamber of Commerce of both Boyd
and Greenup counties and the Economic Development Corporation of Boyd and Greenup in
addition to also supporting other local economic development groups. The program would
focus on six major goals for the area: retention, growth, recruitment, service,
communication and quality of life. The steering committee has also proposed dedicating a
portion of area hotel/motel taxes to help fund advertising and marketing. That proposal
would involve doubling Boyd Countys existing three-percent hotel/motel tax and
initiating such a tax in Greenup County, which does not currently have a hotel/motel tax
in place.
LEXINGTON
Lexmark Announces Plans to Build Manufacturing Plant in
Philippines
Lexington-based Lexmark International has announced that it will build a new $33
million manufacturing facility in the Philippines. The plant will be located at the Mactan
Export Processing Zone in Cebu, a southern province that is rapidly development as a
manufacturing site for international information firms because of its proximity to Mactan
International Airport and a number of universities. Production is expected to begin at the
plant as early as October.
Glenn Westerman, president and CEO of Lexmark Philippines, noted that the availability
of English-speaking engineers in Cebu ensures the company a constant supply of skilled
labor for the plant.
"There is no language barrier here," said Westerman. "The savings will
go directly to production."
Though the overall Asian economy has suffered in recent months, the Philippines has
been one of the countries least affected by the crisis and was one of the few to post
growth figures last year.
RUSSELL
AEI Makes Bid to Purchase Former Ashland Headquarters
AEI Resources, Inc., one of the nations largest coal producers, has offered $4.5
million for the former Ashland Petroleum Co. building and the surrounding 14-acre campus
in Russell, Kentucky.
When Ashland Inc. moved its headquarters to Covington, Kentucky, the company donated
the 188,000-square-foot building and grounds to The Woodlands Charitable Foundation, Inc.,
which has since been marketing the package. If the sales goes through as planned, 90
percent of the $4.5 million would be allocated to help fund economic development in the
region, with the remainder going to Foundation for the Tri-State Community to benefit
non-profit organizations.
AEI plans to consolidate its accounting, engineering, environmental and other
management functions -- currently spread among six states -- in the Russell facility,
bringing 300 jobs that would add some $20 million in annual payroll to the community.
NORTHERN KENTUCKY
Stock Split, Hub Expansion Add Up to High-Flying
Outlook for Comair
With a hub expansion in the works, passenger figures soaring and the recent completion
of a three-for-two common stock split, things are looking good for Comair, Inc.
Comair Holdings, Inc., the parent company of Comair, Inc., completed a three-for-two
common stock split on March 25, a move that represents the eighth such split since the
airline went public in 1981.
Comairs popularity among passengers is growing as well, with passenger figures
doubling from 2,735,468 to 5,469,436 since 1994, when its existing concourse at the
Cincinnati/Northern Kentucky International Airport was built. At that time, it was
expected that it would be 10 years before the company outgrew the facility. Five years
later, however, the Comair concourse is already bursting at the seams with passengers.
Company officials attribute the rapid growth to positive passenger response to its
increased operation of jet aircraft. Of its 97 aircraft, 72 are jets, and the company
continues to replace its prop planes with jets at a rate of about one per month.
The company is now in the midst of a $6 million concourse expansion that will add
hundreds of extra seats, a food court offering a variety of eating options and the
installation of computer hookups. The concourse expansion is expected to be complete by
fall and is separate from Comairs $25 million hub expansion that includes new
headquarters, maintenance and training facilities.
WESTERN KENTUCKY
Green River Electric Expands to Offer Telephone,
Internet Service
Most people dont typically think of relying on their electric company to provide
telephone and Internet service. But beginning this month, the Green River Electric Corp.
will be offering both local and long-distance telephone service along with Internet access
to Western Kentucky residents.
Green River has formed a partnership with LDM of Paducah to provide telephone service,
with long-distance rates established at 8.9 cents a minute all day, every day. Internet
access will be provided by Network WCS of Evansville, which offers rates of $16.95 per
month when paid for a year in full or a 20-hour per month plan at $9.95.
With deregulation of the utility industry looming on the horizon, many energy companies
like Green River are looking for opportunities to provide additional services to their
customers in order to distinguish themselves from their competitors. Green River currently
markets satellite television systems in addition to the more traditional utility avenues
of geothermal heating and cooling components.
LOUISVILLE
Community Organizes to Overcome Loss of 1,400 Philip
Morris Jobs
Louisville and Jefferson County are organizing their efforts to offset the loss of
1,400 high-paying jobs that will end when Philip Morris closes its West End cigarette
plant at the end of next year.
The announcement will mean the loss of a substantial payroll (average wages of $21.50
per hour pushed the total payroll to $62.6 million per year) plus generous corporate
contributions that amounted to some $500,000 per year. However, it will also create
opportunities for new development at the plant site that will affect other projects in the
area, including a proposed Bowman Field airport project that has proven to be
controversial.
Meanwhile, state and local officials are meeting with Philip Morris officers to attempt
to ameliorate the impact of the closing, including a possible below-market-rate sale of
the property to the community. The plant, which is located in an "enterprise
zone," consists of five major buildings totaling 1.1 million square feet on a 35-acre
site. The facility has a taxable value of $8.4 million, according to the Jefferson County
property valuation administrator. While the plant is not considered "modern,"
area realtors and economic development officials say it has been extremely well-maintained
and should be an attractive location for numerous companies.
HAWESVILLE
Labor Board Declares Southwire Committed Unfair Labor
Practice
Reacting to a decision by Southwire Corp. not to allow striking union employees to
return to work, the National Labor Relations Board has declared that the company has
violated labor law by committing "unfair" practices. The ruling states that the
striking employees, who have voted unanimously to return to work, must be reinstated and
that non-union replacement workers must be terminated. The company plans to appeal the
ruling.
Some 400 members of the Local 9324 of the Steelworkers union have been on strike at the
aluminum smelting plant since last June. The union charged that the company intimidated
and coerced workers into leaving the bargaining unit, a claim the NLRB staff has upheld.
About 150 other workers either refused to join the union or crossed picket lines to return
to work and the company hired non-union replacement to keep the plant operating.
If the appeal does not result in an overturned judgment, the company can ignore the
order and compel the NLRB to seek enforcement through federal courts. Meanwhile, however,
Southwire is subject to substantial costs, in addition to its legal fees. The company
could be fined, it could continue to pay its replacement workers, and it could be
compelled to pay back wages to the strikers. The strikers themselves may be eligible for
unemployment compensation. Contract negotiations, disrupted by the strike, must be resumed
at some point, unless Southwire can successfully decertify the union as the approved
bargaining unit.
RICHMOND
Structured Settlement Company Moves Headquarters to
Kentucky
The Prestwick Group LTD., an international structured settlement company, has moved its
headquarters from Baltimore to Richmond. The move comes on the heels of a merger in
December that combined The Prestwick Group and the McNay Settlement Group, which was
already located in Richmond. Prestwick is comprised of independently-operated structured
settlement companies with offices and clients worldwide. Don McNay, president of McNay
Settlement, was elected president of Prestwick in January. McNay said he made the decision
to move the corporate offices to Richmond for the same reasons he moved McNay
Settlements primary headquarters from Lexington to Richmond last year.
"The first reason is the nearby presence of Eastern Kentucky University to provide
skilled workers," said McNay, explaining that EKU is one of the few universities in
the country to have an insurance studies program.
Secondly, added McNay, "Richmond is the fastest-growing city in the state and a
city that goes out of its way to accommodate small business."
Kentuckys centralized location was appealing to Prestwick as well, added McNay,
but the most significant factor was the states progressive consumer protection
legislation for injury victims. Kentucky was the first state to pass a model act
protecting injury victims who receive structured settlements.
Structured settlements are a financial planning tool designed to help injury victims
handle their finances. There are approximately 500 structured settlement consultants
worldwide, representing a $5 billion industry.
LOUISVILLE
City Revives Proposal for Downtown Sports Arena
Buoyed by a report in a national magazine identifying Louisville as a prime location
for an expansion franchise, Louisvilles Board of Aldermen has revived discussions
for a downtown sports arena that would be home to a National Basketball Association team.
The arena has been proposed for a site once occupied by the Louisville Water Company,
just south of the expanded Commonwealth Convention Center. Original plans, first announced
two years ago, called for a 35,000-seat facility that would cost $90 million. (Cost
estimates have since grown to $175 million.) However, the project seemed dead when the
University of Louisville, presumed to be the major tenant, signed a new 25-year lease with
Freedom Hall in 1997.
The idea was rejuvenated when Street & Smiths Sportsbusiness Journal
identified Louisville as one of three cities set to receive an NBA expansion franchise
when the league next expands in 2002. (San Diego and Norfolk, Virginia were also
identified.) According to Street & Smiths, Louisville is the 10th largest
"virgin market" for a major-league professional franchise, although it would be
the NBAs smallest city. The city was once home to the Kentucky Colonels professional
basketball team, which was part of the now-defunct American Basketball Association.
CENTRAL KENTUCKY
Advisory Committee Narrows Choices for Possible US
27/I-75 Connector
The advisory committee formed in 1998 to assist the Kentucky Transportation Cabinet in
a study to determine the feasibility of a connector road between U.S 27 in Garrard County
to I-75 in Madison County has narrowed its choices to four of the eight proposed
alternatives. In its most recent meeting, the committee recommended the removal of four of
the routes because they would involve cutting through areas that are already heavily
developed. The routes eliminated for consideration were: KY 152 to KY 876; KY 34 to KY
876; KY 152 to US 25; and KY 34 to US 25.
The committee will continue to study the four remaining alternatives and also requested
that project engineers add an alignment utilizing the existing KY 52, since the
states highway plan has earmarked $17 million for a major widening of KY 52 from
Lancaster to KY 954 in Madison County. Accordingly, the connector road alternatives still
under consideration include: KY 152 to KY 627; KY 34 to KY 627; KY 152 to Duncannon Road;
KY 34 to Duncannon Road; and the KY 52 scenario.
The committee is scheduled to meet again this month to further explore the remaining
possibilities.
BOWLING GREEN
- Louisville business executive Mary Nixon has pledged $500,000 to Western Kentucky
University , a gift that will be matched with funds from the Kentucky Regional University
Excellence Trust Fund to create the Mary R. Nixon Professor of Accounting in the Gordon
Ford College of Business. Nixon is vice president of accounting services with Tricon
Global Restaurants and a 1977 WKU accounting graduate
COVINGTON
- Jacor Communications Inc. has agreed to sell six radio stations in Louisville and Tampa,
Florida in order to clear the way for its merger with Clear Channel Communications. (The
stations involved overlapped radio signals with Clear Channel properties.) The merger,
estimated at $4.4 billion, is expected to close at the end of September.
DAVIESS COUNTY
- Kimberly-Clark, which completed its Daviess County plant only last year, has announced
that it plans to spend another $20 million to boost capacity following an upgrade to the
plants waste-water treatment system. No additional jobs are expected to result from
the expansion of the plant, which produces paper hand towels and bathroom tissue for the
hospitality/institutional industries as part of Kimberly-Clarks Away From Home
division.
COVINGTON
- Omnicare, Inc., a geriatric pharmaceutical care company, has acquired Pharmacy Care
Associates, a privately owned institutional pharmacy services provider based in Cedar
Rapids, Iowa. Pharmacy Care Associates provides comprehensive pharmacy and related
consulting services for over 1,750 residents of skilled nursing, assisted living and other
long-term care facilities.
- Ashland Inc. has acquired the stock of two North Carolina construction companies,
Crowell Constructors, Inc. and McDonald Grading Company, Inc. The newly-acquired companies
will become part of APAC, Inc., the wholly-owned highway construction division of Ashland
based in Atlanta that is now the nations largest highway contractor.
EASTERN KENTUCKY
- Arch Coal, Inc. is exploring the feasibility of selling its Lone Mountain and Pardee
complexes in order to more aggressively pay down company debts. The two mining operations
are located on the Kentucky/Virginia border.
HEBRON
- Pomeroy Computer Resources Inc. has signed a three-year agreement with Proctor &
Gamble to provide personal computer and software procurement for the companys U.S.
and Canadian facilities, in addition to technical services and support in the Cincinnati
area. The estimated value of the contract is expected to amount more than $75 million over
the three-year period.
HENDERSON
- The Henderson City Commission narrowly approved (3-2) pledging $1 million of its budget
in order to obtain $2 million in state grants that will be used to fund improvements to
the citys downtown waterfront area. Public sentiment surrounding the issue was split
as well, with many citizens maintaining that the $1 million could be better spent
elsewhere. Details regarding the improvements are still in the planning stages.
- Support for a proposed merger between the Henderson Union Electric Cooperative and Green
River Electric Corp. appears to be growing, according to a recent survey conducted by the
co-ops. Statistics from the survey indicate that the promise of a reduction in operating
costs -- cutting consumer bills by approximately four percent -- resulted in some 90
percent of the co-op members surveyed saying they would vote in favor of the
consolidation. The boards of both Henderson Union and Green River have approved the
merger, but it must be voted on by members of both co-ops. The results of the member
voting will be announced on April 15.
HOPKINSVILLE
- Louisville-based Genlyte Thomas Group LLC, one of the nations leading
manufacturers of lighting fixtures and controls, has announced that it will cease
manufacturing operations at its Hopkinsville plant by the end of September due to what
company officials labeled "increased off-shore competition coupled with excess
manufacturing capacity." The decision will result in 162 employees losing their jobs.
The company will continue to operate its warehousing and distribution center in
Hopkinsville, which employs a staff of 108.
- CoPAR, a Toyo Radiator subsidiary that manufactures copper and brass radiators, plans to
open a second facility in Hopkinsville. The new 90,000-square-foot facility, which will
employ a staff of approximately 100, will make aluminum radiators for passenger and
recreational vehicles and is expected to begin production by next spring. CoPAR currently
employs 241 at its existing Hopkinsville plant.
- FP International, a privately-held California company that manufactures protective
packaging products and dispensing systems, has selected Hopkinsville as the site of its
new 160,000-square-foot manufacturing facility. The $8.2 million plant will be located on
21.5 acres in Commerce Park and will house a variety of production lines. The plant is
expected to employ approximately 60 people by the time it is fully operational later this
year.
LAUREL COUNTY
- After much public dissension, The Laurel County Fiscal Court has reinstated a
one-percent occupational tax that expired at the end of last year. Magistrates of the
court pointed out that the tax has generated an extra $3 million for the county each year
since first being implemented at the beginning of 1995. The newly-approved tax went into
effect March 1 and does not specify an expiration date.
LEBANON
- Worthington Industries has sold its Lebanon plastics plant to Morton Industrial Group
Inc., a supplier of parts and sub-assemblies for large industrial original equipment
manufacturers (OEMs). The sale was part of Worthingtons decision to sell its
non-automotive facilities, which also includes plants in North Carolina and South
Carolina. Changes in staff and operations are not anticipated, say company officials.
LEXINGTON
- Lexington-based Shield Environmental Associates, Inc. has opened a New England Office
located in Barrington, New Hampshire. Shield also has offices in Pittsburgh, Atlanta,
Charlotte and New Orleans.
- DialAmerica Marketing, Inc., one of the nations largest privately-held
telemarketing firms, has opened a 3,490-square-foot call center at the Lexington Business
Center. The new center will employ 75 teleservice representatives (TSR) and 10 supervisors
and administrators within a year. Earnings for TSRs range from $7-$12 per hour, including
sales commissions.
LONDON
- The London City Council has approved loaning $5 million to the London City Utility
Commission to upgrade the citys water system.
LOUISVILLE
- Lear Corp. plans to expand its Louisville presence by building a $12.3 million plant to
manufacture seats for Fords new Explorer Sport Trac. The Michigan-based company
presently employs 453 people at its eastern Jefferson County plant, which produces seats
for the Ford Explorer. The new facility will add another 111 new jobs.
- Airlines Reporting Corp. , a Virginia-based company that processes airline sales
transactions, has announced plans to open a high-tech processing center in Louisville,
where it currently operates a 11,800-square-foot facility employing 42 people. The new
center will create 55 more jobs, with salaries averaging $50,000 per year.
- After 24 years of selling office supplies to Louisville companies, Daughtery Office
Equipment is closing its doors. Company officials said they could no longer compete with
national office supply chains and Internet sales.
- Brown-Forman has announced plans to buy the majority of the outstanding stock of
Sonoma-Cutrer Vineyards of Windsor, California. Sonoma-Cutrer produces chardonnay under
the Russian River Ranches, Les Pierres and The Cutrer Vineyard labels.
- ARM Financial Group, Inc., a Louisville asset accumulation company, has signed a letter
of intent to acquire the assets and operations of Financial Marketing Group, Inc., one of
the nations largest independent marketers of variable and fixed annuities and a key
distributor of ARMs products. Financial terms of the transaction were not disclosed.
ARM officials say the acquisition enhances the companys ability to penetrate the
broker-dealer market by providing direct access to more than 350 broker-dealer firms.
- ESPN will hold its popular Olympic-style competition for in-line skaters, stunt cyclists
and skateboarders in Louisville April 22-25 as part of a new event in the Kentucky Derby
Festival. The competition will be televised by the ESPN sports network and its affiliates
and shown on a tape-delay basis in mid-May. The event is expected to attract 250 athletes
seeking $50,00 in prizes and the opportunity to advance to the X Games championship in San
Francisco in July.
- For the third consecutive year, Papa Johns has been ranked No. 1 in customer
satisfaction among national pizza chains, according to Restaurants and Institutions
Choice in Chains Survey. The company is making stockholders happy, as well. Papa
Johns recently reported annual revenues of $670 million for 1998, a 32 percent
increase over 1997. The companys net income rose 41 percent in 1998, to $38 million.
- Ford Motor Company has officially confirmed that its massive new sports utility vehicle,
the Excursion, will be made at the companys Kentucky Truck Plant in Louisville,
adding more than 1,100 jobs with an average wage of $23 per hour.
- The University of Louisville has approved $2.8 million for the creation of a new science
center and planetarium. The Gheens Science Center, named for the Louisville charitable
foundation that has pledged $1.45 million for the building, will house the new
10,000-square-foot Rauch Planetarium. The new planetarium replaces the original Rauch
Planetarium (built in 1964) that was recently torn down. Construction on the center is
expected to begin this fall.
- Telecomm Industries Corp. of Napierville, Illinois has signed a letter of intent to
acquire KA.NET, Inc., an Internet service provider with approximately 1,200 subscribers in
and around the Louisville area.
- The University of Louisvilles board of trustees has approved establishing the
Institute for Molecular Diversity and Drug Design, a move that will unite faculty members
from engineering, health sciences and basic sciences. The institute will enable
researchers to pool their talents to design and test substances and then work with
companies to commercialize their discoveries.
MIDWAY
- Oliver and Anne Hart Raymond have donated $2 million to Midway College, which plans to
use the gift to help fund a new science, math and technology center.
MILLVILLE
- Spring House Natural Spring Water has partnered with international beverage producer
Mingo Bay Beverages, Inc. to market, produce and distribute its bottled spring water.
Mingo Bay has acquired a 99-year lease on Spring Houses water and the facilities,
which include warehouses and a 32,000-square-foot bottling facility. Bottled water sales
have increased to a nearly $4 billion business, according to 1997 figures compiled by the
Beverage Marketing Corporation.
MURRAY
- The Murray-Calloway County Airport will receive $1 million in federal airport
improvement grants that will be used to complete a three-phase runway expansion project.
Airport officials hope the expansion will increase the possibility of attracting scheduled
commercial air service to the facility.
- Construction is slated to begin later this year on a new glasshouse and mesocosm
facility at Murray State University that will be used for both research and teaching. The
glasshouse will feature artificial streams with large tanks that mimic ponds and lakes,
enabling students and faculty to conduct research used by both the fishing industry and
state and federal agencies.
NORTHERN KENTUCKY
- Business Network International, a networking organization that specializes in referrals
among members, is opening a new chapter in Northern Kentucky. The organization generated
more than 183,000 referrals (valued at some $279 million) during the course of 1998. BNI
was founded in 1985 by Ivan R. Misner, author of The Worlds Best Known Marketing
Secret, Seven Second Marketing and Business by Referral.
OWENSBORO
- Telmar Inc., an Ohio-based electronics company that recently established an Owensboro
assembly plant is preparing to increase production of the components it manufactures for
Lucent Technologies Inc. wireless communications systems. Though the Owensboro facility
was initially expected to produce only a few components, Telmar officials now say the
plant will likely be responsible for a large assortment. The company presently has only
six employees on staff but is expecting to increase that number to 15 or more by the end
of the year.
- The board of directors of the Regional Water Resource Agency has unanimously approved a
rate and fee increase that will be utilized to help fund a $32 million expansion and
improvement program that would extend the sewer lines outside the Owensboro city limits.
Final approval of the plan, which has generated controversy within the community, must be
taken to the Rate Review Board, which consists of members of the Daviess Fiscal Court and
the Owensboro City Commission.
- Owensboro-based MedQuest has received approval from the state to establish a set of
premiums that average some 58 percent higher than the previous years charges. Though
the increase has many employers upset, Kentucky Insurance Commissioner George Nichols has
said that the large increase is intended to correct the financially-troubled healthcare
providers 50 percent loss ratio, with an additional eight percent inserted to cover
rising medical and pharmacy costs. Under the new rates, employers costs will range
from around $113 to $443 per month.
PADUCAH
- USEC Inc. has offered enhanced benefits to employees in an effort to cut some 250 jobs
from its Paducah uranium enrichment plant by this summer. The company laid off nearly 260
people late last year and is anticipating 100 more jobs to be eliminated through
attrition. The company says it must trim its staff in order to compete more efficiently.
To help offset the job losses, Paducah is hoping to land a $2 billion plant that would
utilize a process to enrich uranium for nuclear fuel and require some 1,300 employees. The
city is in competition for the plant with at least five other cities across the nation.
- Paducah has received a $500,000 grant from the Kentucky Heritage Council that will be
used to purchase land at 2nd and Washington streets for a new performing arts center.
Plans for the center call for a performance hall seating a minimum of 1,800, along with
multi-purpose space that could be used for community events and educational programs. The
center is expected to open in 2002.
- A study conducted by an independent consulting firm indicates that a proposed merger
between Paducah Water Works and the McCracken County water districts would translate into
a cost reduction for the majority of residential customers. Study figures indicate that
the consolidation could also reduce the water costs for large industries by as much as 44
percent. Water district officials are currently examining how jobs within the various
districts will be integrated into a merged entity, as well as how the organization would
be governed.
PIKE COUNTY
- A.T. Massey Coal Company, a Richmond, Virginia company that operates Road Fork
Developments Burnwell mine in Pike County, has announced that the mine will be idled
for an indefinite period of time due to "poor market conditions" resulting from
a combination of declining export opportunities, decreased demand for steam coal and
increased competition. In addition, the companys Sidney Coals Pegs Branch mine
will reduce its production capacity by 50 percent. The number of employees affected by the
reductions has not been released.
- The Pikeville-Pike County Tourism Commission has received a grant of $100,000 from the
Kentucky Department of Transportation and a $25,000 grant from the Pike County Fiscal
Court to promote the areas history surrounding the legendary Hatfield-McCoy feud.
The commission plans to highlight six or seven of the 46 Hatfield-McCoy sites in the area
by erecting historical markers and adding parking and trash receptacles.
PRINCETON
- Princeton Mayor Sherman Chaudoin has resigned from his position to become the associate
director of the South Kentucky Industrial Development Association, an organization that
recruits industry for 26 southern Kentucky counties.
RICHMOND
- WKXO and WEKY have merged their radio operations and will now broadcast an adult
contemporary format on 1500 AM, 1340 AMand 106.7 FM.
WESTERN KENTUCKY
- The states Department of Insurance is investigating six possible violations by
Bluegrass Family Health regarding its operations in the western portion of the state.
Formal complaints from policyholders include allegations that the healthcare provider has
manipulated its contracts to route more business to a specific hospital, provided
incorrect information as to which physicians were part of its network, and assigned
policyholders to doctors more than 50 miles from their homes.
- Five Western Kentucky counties have signed an agreement that will establish an authority
to oversee the development of a proposed multi-county industrial park. The agreement
signed by Daviess, Hancock, Ohio, McLean and Muhlenberg counties lays the foundation for
marketing the 1,200-acre regional park and creating by-laws for prospective companies, and
addresses issues regarding revenue-sharing and job recruitment.
WOODFORD COUNTY
- Woodford County has passed an historic structures ordinance, aimed at protecting homes,
barns, rock fences or other structures of historic, architectural or cultural importance
from demolition.
WURTLAND
- The E.I. Du Pont de Nemours & Co. chemical company has settled the first claim
stemming from allegations of health problems as a result of a sulfuric acid leak from a
pipe at the Wurtland plant in 1995. The incident caused more than 1,300 people to have to
leave their homes and approximately 250 people have filed federal lawsuits against the
company, with many claiming that theyve experienced respiratory and other
health-related problems as a result of the spill.
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