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FAST LANE - August
2003
STATE
Ernst & Young Announces 2003 Entrepreneur Honorees
 TEN
Kentuckians have been named as recipients of the 2003 Ernst & Young
Entrepreneur of the Year award for the Southern Ohio and Kentucky region.
The awards are presented each year by Ernst & Young to honor outstanding
entrepreneurs who have demonstrated excellence and extraordinary success
in such areas as innovation, financial performance, and personal commitment
to their businesses and communities.
This year’s
regional recipients include:
-
Emerging
Entrepreneur of the Year: David A. Doctor, Sean O’Leary
& Sterling Lapinski, Genscape, Inc., Louisville. Genscape
is the first and only provider of real-time energy data, information
that is vital to energy traders, power plant and line operators,
regulators and other energy market participants.
-
Consumer
Products Entrepreneur of the Year: Robert B. Trussell, Jr.,
Tempur World, Inc., Lexington. Trussell invested his personal
savings to bring the European TEMPUR mattress, which utilizes NASA
technology, to the U.S. The organization now has a global staff
of over 900 employees selling products in more than 40 countries.
-
Distribution
Entrepreneur of the Year: Stephen G. Cuntz, BlueStar, Inc.,
Florence. BlueStar is North America’s second largest specialty
distributor of point-of-sale and auto ID electronics.
-
Services
Entrepreneur of the Year: Steven E. Trager, Republic Bank,
Louisville. Trager has expanded the non-traditional side of
banking, focusing on the underserved population such as low-to-middle
income families, the growing Hispanic population and other individuals
without bank accounts.
-
Healthcare
Entrepreneur of the Year: Michael Shea, MedAssist Inc., Louisville.
With only $7,000 and a single computer, Shea began his company in
1990. Today, it’s one of the largest providers of patient eligibility,
accounts receivable management, and collections services in the
country, with a specific focus on patient advocacy.
-
Technology
Entrepreneur of the Year: Davis Marksbury, ExstreamTM Software,
Inc., Lexington. Developing software to help companies communicate
with their customers on a personal basis, the company’s DialogueTM
software combines personalized document creation, campaign management
and tracking, and multi-channel delivery.
-
Master Entrepreneur
of the Year: Joel F. Gemunder, Omnicare, Inc., Covington.
Omnicare, a pharmaceutical services company, has been under the
direction of Gemunder since its inception in 1981. The company now
provides services to nearly 950,000 residents in 7,000 long-term
care facilities in 47 states and contract research services in nearly
30 countries.
-
Michael
J. Burke Award for Supporter of Entrepreneurship: Dr. Rebecca
J. White, Fifth Third Bank Entrepreneurship Institute, Northern
Kentucky University, Highland Heights. Dr. White developed the
Entrepreneurial Institute so that students can minor in entrepreneurship
while majoring in non-business degrees, such as construction management
and fine arts. Since its inception, the program has grown to include
451 students, 15 courses and full- and part-time faculty members.
Regional award recipients
are eligible for Ernst & Young’s National Entrepreneur of the
Year awards. The national search will culminate at a black-tie gala
in Palm Springs, California on November 22, where national finalists
and the Entrepreneur of the Year award recipients will be announced.
Previous Ernst &
Young National Entrepreneur of the Year award winners include a virtual
“Who’s Who” of business leaders, such as Steve Case of
America Online, Michael Dell of Dell Computer Corporation, Jim McCann
of 1-800 Flowers.com, and Howard Schultz of Starbucks Coffee.
COVINGTON
Omnicare Inc. Buys SunScript for $90 Million
 Omnicare
Inc. has announced an agreement to purchase a New Mexico pharmaceutical-services
company for $90 million in cash.
Albuquerque-based
SunScript Corp. provides pharmaceutical products and related consulting
services for skilled nursing and assisted-living facilities in 19 states.
Omnicare, a provider
of pharmaceutical care for the elderly, currently serves residents in
long-term care facilities comprising about 935,000 beds in 47 states.
SunScript, a division
of California-based Sun Healthcare Group Inc., operates 31 long-term
care pharmacies in addition to a specialty pharmacy business that focuses
on pharmaceutical treatment for those with diabetes and chronic respiratory
diseases.
Omnicare’s
acquisition of Sunscript, slated to close during the third quarter of
this year, is expected to generate around $180 million in annual revenue.
The SunScript announcement
came only days after the Covington company announced that it had completed
a refinancing plan involving the issuance of $595 million in securities
and the sale of nearly 6.5 million shares of stock.
The acquisition
is the company’s second this year. In January, Omnicare paid $460
million for NCS HealthCare Inc., the nation’s fourth largest institutional
pharmacy provider.
STATE
New Program Launched to Boost Success of Kentucky
Entrepreneurs
A new statewide
program has been launched to boost the success rate of existing and
aspiring entrepreneurs in Kentucky. The new Kentucky Entrepreneur Accelerator
Network (KEAN) – a partnership of the University of Kentucky,
Southeast Community College, Kentucky Highland Investment Corporation
and The Center for Rural Development – will utilize the latest
technology to provide Internet-based delivery of both live services
and on-demand access to a library and archive.
"KEAN combines
the strengths of each of the partners - expert knowledge, nationally
recognized entrepreneur training and business development programs,
and technological infrastructure and expertise - to provide a comprehensive
support system vital to entrepreneurial success," said Lonnie Lawson,
executive director of The Center for Rural Development. "It's our
goal not only to enhance Kentucky's small business start-up rate, but
also to provide ongoing mentoring and support to existing small businesses."
Services will include
live entrepreneur training allowing interaction between instructors
and participants; live access to professional business conferences provided
by the partners at scheduled times; consulting and counseling services
to existing and start-up businesses through collaboration with the partners'
business and technical programs; and chat rooms for specific topics
of interest to the business community and scheduled discussion forums
led by the KEAN partners. Funded by the four founding partners, KEAN
is open to additional partners and content providers. Business assistance
providers seeking more information about how to participate should contact
Amy Acton at (606) 677-6000 or aacton@centertech.com.
OWENSBORO
New Motorsports Exhibit Opens at Museum of Science
and History
 After
more than three years of planning, the new SpeedZeum motorsports exhibit
at the Owensboro Area Museum of Science and History has officially opened.
More than 400 people
were on hand for the June opening of the exhibit, which features more
than $120,000 worth of motorsports memorabilia and another $1 million
worth on loan.
City officials say
the addition of this newest exhibit to the science and history museum,
combined with the draw of the International Bluegrass Music Museum,
is helping to build Owensboro into a destination point for travelers.
LEXINGTON
City Proceeds with Condemnation Plan to Acquire Water
Company
 In
what has become one of the most hotly contested local issues of the
year, the Lexington-Fayette Urban County Council voted 9-6 in favor
of condemning Kentucky-American Water Company in order to gain local
ownership of the city’s water supply.
Concerns about ownership
arose last year when Kentucky-American’s parent company, American
Water, was acquired by RWE AG, a German-owned concern. The acquisition
included more than 800 water systems in the U.S. and Canada.
Those in favor of
a city-owned utility maintain it is not prudent to have the city’s
water supply owned by a foreign entity.
Opponents of condemnation
insist that Kentucky-American, which has provided water to Lexington
for 118 years, is a well-run company that provides a quality product.
Kentucky-American
declined the city’s offer of $185 million to purchase the company
(which included a 20-year contract for Kentucky-American to operate
the company) and countered with a proposal to give the city title to
a popular company-owned park as well as a $500,000 park endowment fund.
The city council turned down the proposal.
The issue now moves
into the legal arena, which opponents of condemnation maintain will
cost millions of dollars that the cash-strapped government does not
have.
In fact, Kentucky-American
has already filed a lawsuit against the city, alleging that the resolution
to condemn was not properly published in all areas that the company
serves.
In addition to Fayette
County/Lexington, Kentucky-American serves parts of Bourbon, Clark,
Jessamine, Gallatin, Grant, Harrison, Owen, Scott and Woodford counties.
PULASKI COUNTY
Vote to End Alcohol Ban Gives Vineyard an Opportunity
to Grow
A special local-option
election in the eastern Pulaski County community of Plato-Vanhook has
resulted in the approval for the sale of wine at the Sinking Valley
Vineyard and Winery.
The voters’
stamp of approval brings to an end a ban on alcohol sales that has been
in place for some 70 years.
Vineyard owner Zane
Burton plans to produce approximately 1,000 gallons of wine the first
year and hopes to eventually increase that to 5,000 gallons. State statutes
allow a small winery to produce up to 50,000 gallons of bottled wine
per year.
Plans are also under
way to convert a former post office building – built around 1945
and located next to Burton’s home – into a tasting room. Five
varieties of wine produced from grapes grown on the two-acre vineyard
will be available for sale by the bottle or case.
STATE
Community Ventures Receives $12M to Help Fund Rural
Revitalization
Community Ventures
Corp. (CVC) has been allocated $12 million under a federal tax credit
program to disperse credits to six banks for investments in commercial
real estate projects in low- to moderate-income communities across Kentucky.
“Our goal is
to create at least 600 jobs statewide and to revitalize some of the
state’s neediest communities,” said Kevin Smith, president
and CEO of CVC, a non-profit, community-based organization that operates
in central and northern Kentucky.
The tax credits
are part of the Department of Treasury’s New Markets Tax Credits
program, which is designed to spur investment in low-income communities,
including inner cities and rural areas. CVC was one of only 66 program
recipients nationwide.
“One of the
biggest obstacles to revitalizing a community is access to dollars,”
Smith said. “This program is a great example of a public-private
partnership that can produce the kind of investment that improves lives
and invigorates communities.”
Financial institutions
providing funding are: Central Bank, Kentucky Bank, National City Community
Development Corp., PNC Bank, Republic Bank and Traditional Bank.
Smith expects most
of the funding will be loaned to qualified development projects by the
end of the year.
“Because of
the flexible terms and pricing, I expect this will entice real estate
developers to locate in areas that need revitalization,” Smith
said. “It will return jobs and improved infrastructure to the community.”
To find out more
information about the program or about applying for funds, contact Kevin
Smith at (859) 231-0054.
LEXINGTON
UK Researcher Earns Prestigious Award for Women's
Health Study
 Eric
Smart, Ph.D., associate professor and vice chair of research at the
University of Kentucky College of Medicine, has been awarded an Irvine
H. Page Young Investigator Research Award from the American Heart Association.
The honor is among the most prestigious for young investigators in cardiovascular
research.
The award resulted
from research, led by Smart, which produces a new model for examining
the cardiovascular effects of HDL (high density lipoproteins or “good”
cholesterol) and estrogen. The research team found that estrogen and
estradiol, a form of estrogen used in hormone replacement therapy, may
produce protection against heart disease. The research may have future
implications in the study of cardiovascular disease, as well as in women’s
health, particularly areas involving hormone replacement therapy.
The study is part
of the $8.3 million National Institutes of Health Center for Biomedical
Research Excellence grant, the largest single grant ever to be awarded
in the area of women’s health at UK.
LEXINGTON
IT Seminars Focus on Protecting Computer Systems from
Hackers
Lexington technology
company Systems Design Group, Inc. (SDG) is sponsoring a series of seminars
designed to teach information technology personnel how to better recognize
and protect their systems against hackers.
Free introductory
sessions for “White Hat University” are set for September
25 and October 9 in Lexington.
“This course
is ideal for experienced IT personnel who are new to the field of information
security, new members of security teams, risk assessment system auditors,
and anyone with responsibility for IT security,” said Robert Simpson,
SDG vice president and CIO.
Topics will include:
profiles of network hackers, the most common hacking tools and methods,
goals of security programs, and how to handle a hacking incident. The
sessions are designed to provide a greater awareness as to how hackers
operate and how to best protect an organization’s IT investment.
The introductory session will also help attendees determine if they
are ready for the certification course, in which individuals have the
opportunity to work in a lab-like environment on real-life scenarios,
using some of the most common hacker tools.
Certification courses
are scheduled for November 19 and 20 in Lexington. The first session
will focus on topics such as firewalls and network segmentation, denial
of service, building ACLs, IPSEC, and wireless security. The second
session will include host security, host identification, application
layer security, social engineering, policies and procedures, and best
practices.
SDG’s IT Security
Best Practices seminar will explore the challenges and methods of building
an IT security program.
The Internet and
E-mail Abuse seminar will provide information about legal concerns surrounding
the abuse of Internet and e-mail in the workplace.
The Less Paper Office
seminar will give attendees a better understanding of how network faxing,
document imaging and an Intranet can help companies reduce paper while
increasing efficiency.
All seminars are
free of charge, with the exception of the White Hat University certification
courses, which are $895 for both sessions.
For more information,
contact SDG at seminars@sdgky.com.
LOUISVILLE
Yum! Brands is Among Nation's Best Companies for Minorities
 Yum!
Brands, Inc. has been named as one of FORTUNE magazine’s “50
Best Companies for Minorities” for its comprehensive results across
key diversity measures.
The report measured
minority representation throughout the organization (including the board
of directors and the company’s top 50 executives), purchasing from
minority firms, diversity training, recruitment and retention, and charitable
contributions to minority organizations, among other categories.
Yum! Brands, which
is the parent company of A&W All-American Food, KFC, Long John Silver’s,
Pizza Hut and Taco Bell, also tops the list for managerial diversity
and is ranked among the top 10 companies having the highest percentage
of African-American employees. Fifty-four percent of the company’s
U.S. workforce is minorities as well as 53 percent of the company’s
recent hires.
The Fortune article
also highlights Yum!’s philanthropy efforts targeting minorities.
Last year, the company nearly tripled its minority community giving
and employee volunteer involvement.
STATE
Physicians Form Insurance Firm to Counter High Malpractice
Rates
More than 30 Kentucky
doctors have taken a proactive response to ever-increasing malpractice
insurance rates by forming their own insurance business.
The Healthcare Underwriters
Group of Kentucky is what is known as a reciprocal insurance company,
in which the policyholders are also the owners of business. As such,
the physicians are basically insuring each other. In order to be part
of the group, each policy owner must contribute a one-time investment
fee in addition to the annual premium.
Daily operations
would be handled by Global Insurance Company, a Florida firm that is
also helping Florida doctors establish a reciprocal company.
Although reciprocal
companies are not yet commonplace, physicians say they expect to see
more crop up as doctors face malpractice rates that are forcing them
to borrow thousands – sometimes millions – of dollars in order
to pay their insurance rates and remain in practice. As a result, many
doctors are making the decision to drop high-liability portions of the
practice – such as obstetrics – or retire altogether. In some
cases, doctors are moving their practices to other states where malpractice
rates are not as high. In more rural areas Kentucky, which are already
experiencing difficulty in attracting physicians, that places an additional
strain on a community’s ability to provide healthcare.
The Healthcare Underwriters
Group of Kentucky is presently in the process of gaining of approval
from the Kentucky Department of Insurance, which it must have in order
to operate.
ELIZABETHTOWN
Community Stunned by News of Layoffs at Three Companies
 The
Elizabethtown community is reeling from news that three companies plan
to lay off employees.
VAC Magnetics has
informed workers that it plans to close the Elizabethtown plant by the
end of this year. VAC produces magnets for goods such as computer disk
drives, high performance motors and other automotive products. The shutdown
will leave 140 employees, some of whom have been with the company for
more than 30 years, without a job.
At the Robert Bosch
Tool Corp. plant (formerly Vermont American), plans are in the works
to move the Elizabethtown plant’s packaging operations to Mexico.
The plan, which is slated to take place by the end of the year, would
affect approximately 35 of the plant’s 130 hourly workers. The
plant’s 30 salaried workers would not be affected, according to
company officials.
The Elizabethtown
plant, which manufactures insertable screwdriver bits and socket holders,
was previously part of Vermont American Corporation. It has been operating
under the Bosch name since March, when Louisville-based Vermont American
and S-B Power Tool Corporation formed the Robert Bosch Tool Corporation,
creating a company with more than $1 billion in annual sales and more
than 5,000 employees.
The company is now
in the process of phasing out the administrative functions in Louisville
and will consolidate with the Chicago-area headquarters facility by
2005.
Gates Rubber Co.,
which produces belts for automotive and industrial products, will be
closing its Elizabethtown facility within the next six to nine months
as the company restructures to reduce costs. The shutdown will mean
the loss of 437 jobs. Gates’ Elizabethtown polyflex plant will
not be affected in the restructuring.
TENNESSEE
Nova Adds 400 Jobs at Knoxville Credit Card Processing
Facility
Knoxville will gain
400 new jobs with the announced expansion of Nova Information Systems,
which operates a credit card-processing center there that currently
employs 800 workers.
Officials with the
company said Knoxville was among a number of locations considered for
the expansion – including Atlanta, where the company maintains
its headquarters and administrative functions – but ultimately
chose Knoxville based on the availability of reliable power and telecommunications
and the “talent and work ethic” displayed by the current Knoxville
staff.
Nova’s positions
will involve work in customer service, credit underwriting and risk
management. Company officials did not disclose specific numbers regarding
Nova’s capital investment or payroll in Knoxville, but did describe
the new positions as being highly-trained, well-paying jobs.
Nova provides point-of-sale
authorization for all major credit cards. The company serves 700,000
retail locations ranging from small stores to Fortunate 500 firms, making
it the second-largest company in terms of locations served.
The Knoxville facility
alone processes one billion transactions each year, accounting for some
$100 billion in sales.
TENNESSEE
Nissan Moves Its Production of Redesigned Pathfinder
to Smyrna
 Nissan
North American has announced that it plans to move production of its
popular Pathfinder sport-utility vehicle to Tennessee.
The production of
the redesigned Pathfinder will mean 1,500 more jobs at both the Smyrna
and Decherd facilities, 800 of which will be Nissan employees. The remaining
700 will be employed at on-site vendor operations.
Nissan expects to
invest approximately $250 million to modify the Smyrna plant for the
Pathfinder and other model changes on the horizon.
The Pathfinder,
which is currently produced in Japan, will be added to Smyrna’s
line-up beginning in the fall of 2004. Already in production at the
Smyrna facility are the Nissan Maxima, the Xterra sport-utility vehicle,
the full line of Frontier pickup trucks and the Altima mid-sized sedan.
Nissan’s Smyrna
plant was recently named the most productive automotive manufacturing
facility in North America by The Harbour Group, a Michigan consulting
firm. The Harbour Group study reported that in 2002, the plant averaged
15.74 hours per vehicle to produce the Altima sedan, a figure that is
the best rating recorded since the annual productivity report began
in 1990.
Business
Briefs
ASHLAND
- Classic Bancshares
Inc., the financial holding company for Classic Bank, has completed
its acquisition of First Federal Financial Bancorp and its subsidiary,
First Federal Savings Bank of Ironton, Ohio. As a result of the acquisition,
Ashland-based Classic will operate 10 locations in Kentucky and Ohio.
BEAVER DAM
- Ritatsu Manufacturing,
a Japanese auto parts company, has selected a site in Beaver Dam’s
Bluegrass Crossing Regional Business Park on which to build its first
U.S. facility. Ritatsu supplies small, stamped and welded parts for
Toyotetsu MidAmerica LLC, another automotive parts manufacturer that
has facilities in Owensboro and Somerset. The new $3.1 million, 30,000-square-foot
plant will be built on a five-acre site in the industrial park and
is slated to be in operation by the first quarter of 2004. Ritatsu
expects to employ approximately 30 workers by 2007. Average wages
are expected to be in the range of $14 per hour.
BEREA
- Plans for a 6,000-square-foot
mall to house the work of local artists have received approval from
the City of Berea. The mall will accommodate the artwork of up to
six artisans. Four artists have already expressed interest in leasing
space.
BOWLING GREEN
- Camping World
has announced plans to open camping supply and accessories stores
at four RV dealerships with a goal of creating an all-inclusive, one-stop
outlet for RV sales and service. The new stores will be located at
Alpin Haus in Amsterdam, N.Y.; Tom Stinnett RV in Clarksville, Ind.;
Holiday RV in Spartanburg, S.C.; and Hart City RV Supercenter in Elkhart,
Ind. The company currently has a chain of more than 30 retail locations
and also sells RV accessories and equipment via the Internet and catalog
sales. Camping World is headquartered in Bowling Green, where it employs
approximately 250 workers.
- Western Kentucky
University has concluded its first capital campaign, surpassing its
goal of $90 million. The university’s original goal had been
$78 million, but that milestone was reached after four years. Over
the course of the five-year campaign, WKU received 27 gifts of $1
million or more and was able to create 27 new professorships as a
result of donations received.
CATLETTSBURG
- Peoples Bancorp
Inc. has announced that it will close its Catlettsburg branch in October.
The Ohio-based bank plans to serve its Catlettsburg customers from
its nearby Ashland branch.
COVINGTON
- Ashland Inc.
has signed a definitive agreement to sell the assets of its electronic
chemicals business and certain related subsidiaries to Air Products
& Chemicals of Allentown, Pa. The electronic chemicals division
provides chemicals and other products and services used in the semiconductor
industry. The business employs about 800 workers at manufacturing
locations in Pueblo, Colo.; Easton, Pa.; and Dallas, Texas, as well
as facilities in Italy, South Korea and Taiwan. The transaction is
valued at approximately $300 million before taxes.
DANVILLE
- Centre College
has received a gift of more than $18 million dollars from the estate
of Centre alumnus H. W. Stodghill. The gift, which is the largest
individual gift of non-property assets ever made to a Kentucky college
or university, was given with the stipulation that it be used to provide
scholarships and fund faculty positions.
EASTERN KENTUCKY
- The Southern
and Eastern Kentucky Tourism Development Association has allocated
$20,000 for a study to determine the feasibility of an excursion train
that would run along the Country Music Highway corridor. The corridor
encompasses areas of Floyd, Johnson, Lawrence, Martin and Pike counties.
ELIZABETHTOWN
- The Elizabethtown-Hardin
County Industrial Foundation has purchased 215 acres adjacent to the
T.J. Patterson Industrial Park, bringing the park’s total acreage
to 300. Though the foundation doesn’t currently have specific
business prospects, it plans to install utilities and make infrastructure
improvements in order to help attract businesses to the site.
FLORENCE
- Aristech Acrylics
LLC has announced an agreement to acquire the assets and operations
of Avonite Inc. for an undisclosed amount. Avonite, which is headquartered
in Belen, New Mexico, is one of Aristech's competitors in the acrylic
and polyester product industry. Among the items the companies produce
are spas and bathtubs, outdoor signage and countertops.
FORT MITCHELL
- Paul Hemmer Co.
has acquired Meyer Commercial Services Co., a commercial cleaning
services firm. The newly-acquired business, which has 25 employees,
will now be known as Hemmer's Commercial Cleaning Services Group and
will offer a complete line of cleaning services.
- Drees Co., the
largest homebuilding company in the Northern Kentucky/Cincinnati area,
has acquired Ausherman Homes of Frederick, Maryland. Terms of the
agreement have not been disclosed.
FRANKLIN
- Tyco Electronics
has announced that it plans to shift a portion of its Franklin production
to a facility in Impalme, Mexico. The plan will mean the loss of approximately
30 jobs at the company's Franklin electronics plant, where it currently
employs about 350 workers.
GEORGETOWN
- Industrial Concepts
Inc. and C&D Manufacturing Inc. will be the first two tenants
at Lane’s Run, Georgetown’s new 400-acre business park.
The city-owned park is part of Georgetown’s effort to diversify
its economy and lessen its dependence on Toyota Motor Manufacturing,
which employs around 8,000 workers at its Georgetown plant. Toyota
has played a significant role in that endeavor, agreeing to pay half
of the cost for the park’s property.
HEBRON
- Pomeroy Computer
Re-sources Inc. has changed the company’s name to Pomeroy IT
Solutions Inc. to better represent its services. Pomeroy provides
enterprise consulting, enterprise architecture and client management
services.
LEXINGTON
- The Educational
Psychology Program in the University of Kentucky College of Education
has been ranked 19th among peer programs at 342 national and international
institutions for research productivity, according to a study published
in the latest issue of Contemporary Educational Psychology.
- Trane Co.’s
consolidation of operations has led to a staff reduction at its Lexington
plant, which will lose 156 jobs by the end of the year. The company’s
Lexington plant employs approximately 1,300 workers, who produce parts
and systems for heating, ventilation and air-condition products. As
part of the consolidation plan, Trane is moving production of heat-transfer
coils from its plants in Lexington; Clarksville, Tenn.; Rushville,
Ind.; Forsyth and Macon, Ga.; and Lynn Haven, Fla. to a facility in
Blythewood, S.C.
- Sabire Ozcan,
Ph.D., an assistant professor in the department of molecular and cellular
biochemistry at the University of Kentucky College of Medicine, has
won a research award from the American Diabetes Association (ADA),
the nation’s leading voluntary health organization supporting
diabetes research, information and advocacy. Ozcan, one of the many
faculty members hired through the Research Challenge Trust Fund (more
commonly known as “Bucks for Brains), has been recognized for
a proposal involving the study of glucose regulation of insulin. The
grant is in the amount of $100, 000 for three years, to total $300,000.
- Ohio Casualty
Insurance Co. is cutting 65 jobs at its Lexington office as part of
a consolidation that will move its commercial lines underwriting functions
to Cincinnati and Raleigh, North Carolina. The company will retain
its claims and marketing operations in Lexington, where it employs
approximately 165 workers.
LOUISVILLE
- JC Malone Associates,
an employment and executive-recruiting agency, has purchased Spaid
Nursing Service of Louisville for an undisclosed amount. While the
acquisition allows JC Malone to add nursing services to its current
offerings, Spaid Nursing Service will continue to operate under its
current name. JC Malone is also acquiring Spaid’s 50 percent
ownership in Affiliated Nursing Service, a joint operation of Spaid
and Baptist Ventures Inc. that provides nursing and personal-care
services to Baptist Hospital East in Louisville.
- A. Arnold Moving,
a full-service van line with headquarters in Louisville, has merged
with Sterling International, an international freight forwarder. “This
acquisition allows us to pull together our existing international
business and combine it with our strong base of domestic national
account business,” said A. Arnold President Richard Russell.
“It’s a perfect compliment to our existing base and creates
another terrific growth opportunity.” In addition to its Louisville
headquarters, A. Arnold has offices in Lexington, Indianapolis and
Kansas City, Missouri. Sterling is now headquartered in Louisville
and has offices in Wilmington, Delaware and Berlin, New Jersey. Sterling
President Douglas Finke will continue to serve in that capacity.
- Papa John’s
has announced new franchise agreements that will extend the company’s
brand in the New York City area. Over the next several years, more
than 100 new Papa John’s restaurants are expected to join the
six existing locations operating in the Big Apple.
- Sabil UpLink
Communications LLC has been given preliminary approval for more than
$500,000 in tax credits over the next 10 years to help fund a $1.8
million expansion of its satellite uplink service. Sabil presently
provides mobile satellite uplink and production services to the three
major television networks and CNN. The company’s expansion plans
include offering fixed uplink services and the addition of 17 jobs
over the next two years, with a payroll of more than $950,000.
- Chrysalis Ventures
ranks as one of the top 100 venture capital firms in the nation, according
to a recent report in Entrepreneur magazine. Chrysalis committed financing
to three start-up or early-stage companies in 2002; U.S. Venture Partners
of Menlo Park, California led the list, closing 11 deals last year.
Chrysalis has invested in more than 40 companies since its inception
10 years ago and now manages more than $200 million.
- National Processing
Co., a Louisville-based provider of credit card processing services,
has sold its non-bank aligned regional sales offices to three of its
independent sales organizations as part of a plan to rapidly grow
its U.S. regional merchant business in a cost-effective manner. The
14 sales offices were purchased by DiamondCard Processing Corp. of
Rancho Cucamonga, Calif.; Security Check LLC of Oxford, Miss.; and
Universal Debit & Credit of Annadale, Va. for an undisclosed amount.
NPC retains the remaining six regional sales offices that are served
by National City Corp., NPC’s parent company.
- The Jefferson
County School System is finding tremendous success with online education,
which provides coursework to students via the Internet. Since being
implemented two years ago, the Jefferson County school system has
enrolled nearly 2,500 students in its e-school program, which offers
more than 50 high school courses online. School officials are thrilled
with the results of the program, which they credit for helping students
who might have otherwise dropped out of school.
- Though still
under construction, a new $110 million Marriott hotel under construction
in downtown Louisville has already booked three conventions and meetings
that are expected to bring some $3 million to the city. The 617-room
hotel is being built next to the Kentucky International Convention
Center and will include more than 44,000 square feet of meeting space.
The hotel is expected to be complete by Spring 2005. The organizations
that have already booked space for meetings include The Association
of Equipment Manufacturers, Weekenders USA and The Museum Store Association.
- With the first
phase of renovation at Churchill Downs racetrack nearly complete,
the second phase is now underway. Projected to cost in the neighborhood
of $95 million, the second phase will include new main entrances,
the addition of luxury suites, new elevators and escalators, and a
new press box.
MURRAY
- In an address
to the Marshall County Chamber of Commerce, Murray State University
President King Alexander mapped out the university’s plans for
a business incubator that would provide resources and business facilities
to start-up companies. The incubator would include some 30 offices
within the building, said King. It would also house several university
departments, including business and marketing, providing immediate
access to university resources and expertise. According to King, the
building is slated to be operational by Fall 2004 and applications
are currently being accepted for the project.
NEWPORT
- The IMAX Theater
at Newport on the Levee has closed, less than two years after opening
with high hopes of boosting tourism on the Kentucky riverfront. The
theater has encountered problems in obtaining the type of films that
typically draw people to IMAX theaters. The theater also needed to
upgrade its system in order to show longer-running commercial films,
yet was not able to obtain the requisite technology from IMAX Corp.
Owner Ron Roberts has been in talks with potential investors regarding
the sale of the 465-seat theater and its systems.
OWENSBORO
- CRS OneSource
(formerly known as Clark Restaurant Service Inc. and CRS Frozen Food
Inc.) is closing its Evansville, Indiana location and transferring
29 jobs to a new $7 million food distribution center in Owensboro’s
MidAmerica Airpark. The additional employees will bring CRS’
workforce to 130.
PAINTSVILLE
 Morehead
State University is sponsoring the second annual Regional Entrepreneur
Conference, to be held September 15-16 at the Ramada Inn in Paintsville.
This year’s focus is on “Networking to Strengthen East Kentucky’s
Economy.” For more information, contact Kelli Hall 606/788-7331
or k.hall@moreheadstate.edu.
STATE
- Reports from
the U.S. Department of Agriculture indicate that this year's national
tobacco crop is the smallest since 1874. As a result of lawsuits filed
against tobacco companies, increased taxation on cigarettes and an
overall decline in smoking, farmers across the nation planted only
413,710 acres of tobacco this year, down three percent from last year.
Competition from imports is also a factor, say experts with Department
of Agriculture. In 2002, the U.S. imported $715 million in tobacco,
up from $676 million in 2001 and $628 million in 2000.
- The Kentucky
Community and Technical College System has partnered with the University
of Louisville to offer a bachelor of science degree in justice administration
that can be earned completely online. Students can complete their
first two years of general education requirements through the Kentucky
Community and Technical College System and then take the U of L core
and elective courses in justice administration.
- Kentucky’s
Office for the New Economy has announced the availability of $3 million
in tax credits to qualified personal and corporate investors as part
of the Kentucky Investment Fund Act (KIFA). The investment program
is designed to encourage the establishment of small businesses and
the development of new products and technologies. KIFA offers a 40
percent tax credit to qualified investors in approved investment funds.
The minimum size of an approved fund is $500,000 and must have no
less than four unaffiliated investors. Qualified investments include
Kentucky-based small businesses with 50 percent of the company’s
assets, operations and employees located in the state; a net worth
less than $5 million ($10 million if knowledge-based); and no more
than 100 employees. The KIFA review committee will evaluate applications
based on factors including the fund’s business plan, relevant
investment experience of the applicant, and an oral presentation.
More information on KIFA, along with an application, can be found
on the Office for the New Economy’s Web site at www.one-ky.com.
- The 11th annual
Women Mean Business Conference is scheduled for September 9 at the
Holiday Inn North in Lexington. Sponsored by the Kentucky Small Business
Development Center, conference will include sessions on starting and
building consulting businesses, utilizing business coaches, obtaining
grants and low-interest loans and how to launch a successful home-based
business. Cost for the all-day event is $99. For more information
or to register, call (859) 257-7667 or (888) 475-7232.
TENNESSEE
INDIANA
- Indiana has
granted approval for its casinos to remain open around the clock,
seven days a week. Indiana legislators are hoping that the extended
hours will help boost the state’s tax revenue by as much as $10
million.
- AmeriDebt,
a nonprofit organization that provides credit counseling and debt
management services, is opening a national call center in downtown
Evansville. The center will open next month and is expected to employ
100 workers.
- Thomson has
announced plans to permanently lay off 820 employees at its Marion
plant, where the company produces picture tubes for television sets.
In the early 1990s, Thomson ranked as Marion’s largest employer,
with approximately 3,000 workers. By the end of this year, the company
will employ less than 1,000. Thomson officials say the cutbacks are
necessary due to a decreased demand for television picture tubes.
The French-owned company, which has been battling to stay competitive,
is also laying off 400 workers at its plant in Circleville, Ohio.
OHIO
- The State
of Ohio has implemented an increase in its sales tax, raising the
rate from five percent to six percent. The increase was effective
July 1.
- Kroger Co.
ranks as the nation’s third-largest retailer in terms of total
sales, according to Stores magazine. Kroger’s annual sales of
$51.76 billion puts the Cincinnati-based supermarket chain behind
only Home Depot (with $58.25 billion) and Wal-Mart ($246.53 billion).
Cincinnati’s Federated Department Stores Inc., owner of Lazarus,
Macy’s and Bloomingdale’s stores, also made the list, ranking
No. 18 with sales of $15. 44 billion.
TENNESSEE
- ClientLogic
Corporation, which provides technical and customer service support
for other companies, has announced that it will add 160 employees
at its Oak Ridge facility by the end of next month. The expansion
is the result of an expanded agreement with an unnamed Internet service
provider. The Nashville-based corporation, a subsidiary of Onex Corporation
of Canada, currently employs more than 350 workers in Oak Ridge and
some 12,000 worldwide.
- Flextronics
International, which produces electronics equipment for companies
such as Hewlett-Packard and Ericsson, is closing its Lebanon plant
and will merge its operations with those of its Memphis facility.
Until recent layoffs, the Lebanon plant employed as many as 750 workers.
Flextronics also operates a semiconductor plant in Oak Ridge, Tennessee.
- In an effort
to curb the soaring costs of prescription drugs, BlueCross/BlueShield
of Tennessee has launched a campaign aimed at getting patients to
request generic drugs. Tennessee leads the nation with nearly 18 prescriptions
per man, woman and child. BlueCross maintains that promotional efforts
by pharmaceutical manufacturers have influenced consumers to request
name-brand drugs, even though generic drugs are required to have the
same quality, strength, purity and stability as brand-name drugs.
During 2002, BlueCross members increased their use of generics by
three percent, resulting in savings of some $10 million.
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