STATE
Think Your Taxes are Too High? You May be Right

A recent survey by a Cincinnati accounting firm reveals that many construction firms throughout Kentucky may be paying more taxes than necessary.

The survey, conducted by Jackson, Rolfes, Spurgeon & Co. this fall, asked heads of construction and contracting firms about their business climates and the financial workings of their companies.

“When asked what revenue recognition method they used for tax purposes, over 60 percent responded they use the percentage of completion (POC) method,” said Jeff Oehler, tax partner-in-charge of the firm’s Construction Industry Service Team. “This is somewhat unusual since most of the respondents’ annual revenue fell into the range of $1-10 million and the POC method does not offer the same tax advantages the ‘completed contract’ method would.”

The percentage of completion method requires the profit on each contract to be recognized as work is performed. The completed contract method, on the other hand, allows a contractor to defer recognition of the profit on each contract until the contract is completed.

For example, if a contractor uses the percentage of completion method, and has jobs in process at the end of the year with $3,000,000 of revenue recognized and 15 percent gross profit margin on those jobs, they would recognize $450,000 of taxable income on the jobs in process.

Had the same contractor used the completed contract method, the $450,000 of gross profit and related $180,000 of income tax (assuming a 40 percent tax bracket) could be deferred to future years.

Another startling finding was that over half of the construction firm and contracting respondents do not have a strategic plan, nor do they intend on creating one.

“A strategy is like a roadmap. It provides direction, but allows for course corrections and new developments,” said Jim Rolfes, managing partner of Jackson, Rolfes, Spurgeon & Co. “To run a business without a strategic plan is like floating in a lifeboat without oars. A formal strategic plan provides the structure, goals and benchmarks for growth and expansion.”

STATE
Fischer, Field Packing Cos. Acquired by Premium Foods

Fischer Packing Company and Field Packing Company, both of which have been headquartered in Kentucky since the early 1900s, have been acquired by Glencoe Capital, LLC, a Chicago-based private equity firm.

Fischer and Field will be consolidated into Glencoe Capital’s Premium Foods Group, a leading U.S. producer of premium specialty meat products.

Fischer is located in Louisville; Owensboro is home to Field.

Premium, which is headquartered in Crestview Hills, Kentucky, produces and markets under brand names such as Nathan’s Famous, Mickelberry’s, Mosey’s, Scott Petersen and Liguria Italian Specialties. The company operates processing facilities in Chicago; Bloomfield, Connecticut; Falls City, Nebraska; and Humboldt, Iowa.

With the addition of Fischer’s and Field’s premium brands – Field, Kentucky Gold, Fischer, William Fischer Premium Deli, and Kentucky Legend – Premium Foods Group is on the track to becoming one of the largest specialty meat companies in North America with pro-forma combined revenues of over $300 million.

STATE
Tell the State What Your Business Needs

Attention Kentucky business owners: Now’s your chance to let the state government know what you need.

The Kentucky Workforce Investment Board and the Cabinet for Workforce Development have mailed surveys to 15,000 Kentucky businesses in hopes of better aligning training and recruitment efforts with the needs of the business community.

The survey requests information on:

• job vacancies
• education and training requirements
• benefits offered to employees.

Responses will be held in strict confidence and will not be released in any form that could identify an individual company. Only aggregate or grouped results will be published.

The University of Kentucky and the University of Louisville will collect and analyze the information, which will be available in a Web-based format to help businesses make decisions in areas such as business expansion and benefit packages.

“We’re encouraging businesses to take the time to complete these surveys because our data will only be as good as the business participation we get across the state,” noted Allen Rose, Cabinet for Workforce Development secretary.

If you have received a survey and have questions, contact Mark Berger (University of Kentucky) at 859/257-1282 or Bruce Gale (University of Louisville) at 520/852-8151.

STATE
Kentucky's Alternative Fuel Program Garners National Recognition

The U.S. Department of Energy has selected Kentucky’s alternative fuel vehicle program as one of the top in the nation.

The Commonwealth Clean Cities Partnership is a voluntary program administered by the Kentucky Clean Fuels Coalition, a non-profit group based in Louisville. The KCFC provides education, technical support, communications and funding resources for alternative fuel vehicle projects across the state.

The program was recognized by the Department of Energy for the number of alternative fuel vehicles and alternative refueling sites placed in operation in 2000.

There are currently more than 3,000 vehicles across the state that operate on fuels other than conventional gasoline or diesel, including compressed natural gas, ethanol, electricity, propane and bio-diesel. The state government operates more than 200 “flex-fuel” Ford Taurus sedans in its fleet that run on a mixture of regular gasoline and ethanol.

Other programs recognized in the annual review were Dallas/Ft. Worth, Cleveland, Tulsa, Los Angeles, San Diego, Phoenix, North Jersey, Atlanta, Syracuse, New York and Denver.

STATE
Kentucky Cattle Industry Rustles Up More Business with Mexican State

The Kentucky Department of Agriculture (KDA) reports significant inroads with the Mexican state of Nayarit regarding the trade of beef and dairy cattle, produce and thoroughbreds.

KDA marketing officials recently hosted a group from Nayarit, who plan to return to Kentucky in early February for the National Farm Machinery Show in Louisville and to select Kentucky beef to purchase.

Kentucky is home to more than 1.1 million beef cows and is the largest cattle-producing state east of the Mississippi River.

“We are very pleased with the progress we have made in developing an agricultural trade relationship between Kentucky and Mexico,” said Kentucky Agricultural Commissioner Billy Ray Smith. “Kentucky farmers have sold more than $1 million worth of beef and dairy cattle to Mexican ranchers in recent years, and Mexican horsemen spent nearly $1 million on thoroughbreds at the Keeneland September yearling sale.”

Nayarit is situated on the western coast of Mexico and has a population of nearly 900,000.

STATE
State Ag Commissioner Leads National Trade Mission to Asia

Kentucky Agriculture Commissioner Billy Ray Smith recently met with representatives from the retail, import and food service industries in China and South Korea as part of a trade mission sponsored by the National Association of State Departments of Agriculture.

“International trade offers great opportunities for the producers and agribusinesses of Kentucky and the nation as a whole,” said Smith, who was named president of NASDA this past fall. “As doors in Asia open and global demand increases, we must take advantage of these opportunities to sell U.S. food and agricultural products.”

During the course of his two-week journey, Smith met with trade representatives in Shanghai, Dalian, Beijing, Huagzhou, and Seoul in an effort to develop a better understanding of the opportunities available in major international markets.

“Ten years ago, China had virtually no American-style supermarkets,” noted Smith. “Now, it has thousands. Korean membership in the World Trade Organization is opening trade channels and China’s membership could accelerate opportunities for private entrepreneurship in the food sector.”

STATE
Virtual University Continues to Expand, Enhance Services

Kentucky Virtual University is expanding its services for the Spring 2002 semester, adding free online tutoring, Sunday call center hours and an online writing center.

Students can schedule tutoring sessions in subjects ranging from basic math to Calculus II, accounting, chemistry, economics, Spanish and statistics.

The tutoring will remain free through mid-May 2002 and is available through an arrangement the virtual university has with the University of Kentucky.

A second tutoring service, the KYVU WritePlace, is an online writing lab made possible through the UK and KYVU partnership. At the WritePlace, students can get help with essays, research papers and even resumes. (There is a cost associated with this service.)

Students can access both tutoring services at http://www.kyvu.org. All courses are offered by accredited Kentucky colleges and universities and accredited professional development providers.

The Kentucky Virtual University was established by the 1997 General Assembly to provide accessible education for all citizens and employers.

For more information, call 877-740-4357 or visit http://www.kyvu.org.

LEXINGTON
UK Researchers Developing New Technology for Fuel Cell Hydrogen

Researchers at the University of Kentucky are part of a project to develop new technology to reduce the cost of producing hydrogen for use in fuel cells.

H2Fuel, LLC, an affiliate of Illinois-based Avista Labs, recently awarded a research and development contract to the University of Kentucky to synthesize, characterize and test a family of chemical transport membranes that efficiently and selectively remove the oxides of carbon from a gas mixture.

The H2fuel research at the University of Kentucky is being supplemented by a parallel effort funded by the U.S. Department of Energy (DOE).

According to H2Fuel President Serge Randhava, this membrane-based approach to the extraction and purification of hydrogen from natural gas or propane is a departure from other methods currently in use, and is expected to be less expensive than other methods.

Dr. Winston Ho of the University of Kentucky's Department of Chemical and Materials Engineering is the principal investigator for both the H2fuel and the DOE programs. The H2fuel technical team is led by Dr. Richard Kao, H2Fuel vice president of technology.

LEXINGTON
Class Action Lawsuit Claims Lexmark Misled Shareholders

A shareholder class action lawsuit has been filed against Lexmark International, alleging that the company issued false and misleading statements regarding the company’s financial situation.

According to a statement issued by the Pennsylvania law firm of Schiffrin & Barroway, one of the groups handling the lawsuit, Lexmark “made highly positive statements regarding the company’s financial results, including strong sales and growth of its printers…Unbeknownst to the investing public, Lexmark was plagued with an increasing backlog of unmarketable inventory, which defendants failed to properly account for in Lexmark’s publicly reported financial results, causing the Company’s financial results to be overstated by at least $25 million during the Class Period. By failing to timely take a charge to earnings for the unmarketable inventory, defendants and other Lexmark insiders were able to divest themselves of thousands of Lexmark shares at prices well above $60 per share, generating proceeds of over $8,000,000.”

The lawsuit charges that when it was announced on October 22 that Lexmark would record a $25-$35 million inventory write-down in the fourth quarter of fiscal 2001 and implement a major restructuring, expected earnings per share dropped from 70-80 cents per share to 40-50 cents per share, resulting in a substantial loss for shareholders.

LEXINGTON
Renovated Woolworth Building to House Hi-Tech Business Incubator

Lexington Mayor Pam Miller has announced plans to renovate the former F.W. Woolworth building in downtown Lexington to create a high-tech center called “The Factory.”

The facility will serve as an incubator for high-tech start-ups and house young but established high-tech companies. Services that cater to high-tech firms (i.e. venture capital companies, etc.) will also be housed there. The Kentucky Science and Technology Corporation will locate in and manage the facility.

Initial plans call for the reopening of both the Main and Limestone Street entrances to the 38,000-square-foot building. The Art Deco, glazed tile façade on Main Street, complete with its bold red signage, will be preserved, as will the complex yellow brick façade on Limestone.

The renovation is expected to be completed in 2003.

LOUISVILLE
Louisville Businessman Tapped to Head Providian Financial Corp.

Louisville banker and financier J. David Grissom has been named chairman of Providian Financial Corporation, a San Francisco-based credit card company. Grissom has been a Providian director since 1997.

Grissom’s appointment comes in the midst of a management shakeup brought about due to the company’s declining business.

Grissom was executive vice president of Humana during the early ‘70s. He later served as vice chairman and chief operating officer of Citizens Fidelity Bank and Trust Co., which was acquired by PNC Financial Corp. in 1987. He retired from Citizens/PNC in 1989 and formed a venture capital firm, Mayfair Capital. Grissom also serves on the board of directors at Churchill Downs.

LOUISVILLE
High-Tech Training Center to be Created in Downtown Louisville

Louisville Mayor Dave Armstrong has announced plans for a technology training center to be located in downtown Louisville, enabling area students and employers to have access to state-of-the-art communication technologies.

The Jefferson County school system and the University of Louisville have joined the city as sponsors of

TheCommunity@eMain, which will be located in the Clocktower Building on East Main Street. Armstrong and community leaders envision that the center will become a central agency that pairs students with companies providing technology internships, which in turn will build a more technologically-skilled workforce.

STATE
Kentucky Now Home to Three National Basketball League Teams

Kentucky, known across the country for its enthusiasm in the game of basketball, now boasts three teams in the newly-formed National Alliance Basketball League.

The organization, which has been formed by five Elite AAU men’s basketball teams, is the revival of the former National AAU Basketball League, which operated in the 1960s and ‘70s. AAU Men’s Basketball holds the distinction of being the oldest continuous organized basketball league in the world

The three Kentucky teams operating this year are the Owensboro Showboats, the Frankfort Cattle Barons and the Kentucky Coyotes (Lexington). The Evansville (IN) Orbits and the Charleston (WV) Bombers round out the league.

Players in the NABL are the equivalent of second division international players. For the most part, they are collegiate stars looking to continue their career either in the NBA or international basketball. The purpose of the NABL is to develop these players for eventual placement in pro basketball.

The Kentucky Coyotes roster includes former UK stars Sean Woods and Jeff Brassow, along with former Transylvania players Collier Mills, Kyle Green and Andrei Kholodov. The Coyotes will play at the Kentucky Basketball Academy in Lexington.

The Owensboro Showboats will play at the historic Owensboro Sports Center, while the Frankfort Cattle Barons can be seen at the Farnham Dudgeon Civic Center.

The teams have already begun playing a 20-game conference schedule, which will run through March 14.

LOUISVILLE
West Nile Virus Confirmed in Death of Horse Stabled at Churchill Downs

The state veterinarian’s office has confirmed that the West Nile Virus caused the death of a two-year-old horse that had been stabled at Churchill Downs.

The horse, Rocket Express, was euthanized October 25 after developing severe neurological symptoms. Eight horses in Kentucky now have been confirmed as having contracted West Nile Virus (WNV).

A ninth horse confirmed as having WNV was diagnosed in Kentucky, but was exposed to the virus in Florida and is being counted as a Florida case, said Rusty Ford, equine programs manager for the state veterinarian, Dr. Don Notter. That horse has recovered and has been returned to Florida.

West Nile Virus causes encephalitis, or inflammation of the brain, in older horses, humans and birds. It is transmitted by mosquitoes and is not contagious. However, WNV can be fatal in humans. Individuals over age 50 and those with weak immune systems are particularly at risk, according to the Department for Public Health.

Business Briefs

STATE

• In an effort to make banking easier for Mexican nationals, Firstar Bank has begun accepting official identification issued by the Consulate of Mexico to open a bank account or cash checks drawn on a Firstar account. The bank is also accepting the Individual Taxpayer Identification Number, which makes it easier for individuals with non-resident status to open accounts.
• CEMEX, a Mexican cement company, has sold its aggregate operations in Kentucky to Florida-based Rinker Materials Corporation. CEMEX, which ranks as one of the largest cement companies in the world, operates four quarries in Kentucky: two in Bowling Green and one each in Hartford and Bardstown. A quarry in Columbia, Missouri was also part of the $42 million deal. “Although the Kentucky and Missouri quarries are well run and profitable, they have relatively limited strategic value for CEMEX,” said Gilberto Perez, President of CEMEX’s U.S. Operations. The Kentucky and Missouri quarries were acquired by CEMEX in November 2000 as part of its acquisition of Southdown.

BOONE COUNTY

• Ted Bushelman and Richard Davis are sharing the honor of receiving the Boone County Businessman Association’s Businessman of the Year award. Bushelman is the director of communications for the Cincinnati/Northern Kentucky International Airport. Davis is a local farmer and has also owned a number of area service stations over the past 27 years.

BOWLING GREEN

• Deeds have been recorded in the initial land acquisition for the Kentucky TriModal Transpark, a proposed business and industrial park centered around interstate, rail and air transportation facilities. The purchase totaled approximately 121 acres along US 31-W in north Warren County with a price tag of about $1.5 million. The first phase of the project will include the purchase of 2,000 acres and development of 240 acres.

COVINGTON

• Regent Communications, Inc. (NASDAQ RGCI) has entered into definitive purchase agreements to sell approximately 900,000 shares of newly-issued common stock to both new and existing shareholders at a price of $5.75 per share. The private placement is expected to raise net proceeds of approximately $5. Regent focuses on acquiring, developing and operating radio stations in middle- and small-sized markets.

DAVIESS COUNTY

• A Daviess county businessman has announced plans to open an equine center near Ben Hawes State Park that would include indoor and outdoor arenas for horse shows and rodeos. Steve Young, owner of Cowboy’s Tack and Trailer Sales in Owensboro, hopes to secure the appropriate use permit for approximately 20 acres and begin development for a spring opening.

ERLANGER

• Paul Hemmer Companies has announced plans to develop a 24-acre site just off the Mineola exit in Erlanger, near the Greater Cincinnati Northern Kentucky International Airport. The site will be used for a multi-story office complex or research facility.

FORT MITCHELL

• Columbia Sussex Corporation, which owns and operates hotels throughout the U.S., Canada and the Caribbean, has signed a contract to acquire six Adam’s Mark hotels. The hotels are located in Memphis; Houston; Philadelphia; Columbia, SC; Clearwater, FL; and Colorado Springs. The sale price has not been disclosed.

FRANKFORT

• The Kentucky Military History Museum has opened a new Civil War exhibit, highlighting Kentucky’s pivotal role in the conflict. The exhibit replaces an earlier Civil War exhibit and will feature four theme areas, including life as a Civil War soldier, Kentucky battlefields, a section highlighting the role of African American soldiers, and changes in weaponry and tactics.

GARRARD COUNTY

• A recently-released feasibility study done by the state suggests that a proposed state resort park developed around Lake Herrington would attract some 271,000 visitors annually, pumping $5.7 million per year into the local economy. The estimated cost of a 43-room lodge, 83-site campground and an on-site wastewater treatment plant would run approximately $14.5 million. The development of such a park would create around 150 new jobs.

LEXINGTON

• The Greater Lexington Chamber of Commerce has announced plans to travel to Raleigh, North Carolina to study the area’s approach to economic, education and cultural issues. Raleigh, rated as the “Best Place to Work” by FORTUNE magazine in 2000, is home to the nation’s first state-supported art museum and symphony orchestra and offers a wide variety of professional and collegiate sports teams. Its school system has been ranked as one of the “100 Best Public School Systems” in the country by Money magazine.
• Neogen Corporation has entered into an agreement to become the primary supplier of veterinary instruments and supplies for Tractor Supply Company, one of the nation’s largest farm and ranch retailers. Tractor Supply will carry Neogen’s Ideal Instruments line of instruments and supplies.
• Bluegrass Regional Mental Health-Mental Retardation Board Inc. has been selected by the Substance Abuse and Mental Health Service Administration to conduct a three-year research project involving fetal alcohol syndrome. The project, which is one of only four awarded nationally, is aimed at reducing the prevalence of fetal alcohol syndrome and its effects in rural areas.
• Lexington-based A&W Restaurants, a division of Yorkshire Global Restaurants, has awarded broadcast media planning and buying responsibilities to Right Place Media (RPM), also headquartered in Lexington. Other RPM clients include Fazoli’s, Three Chimneys Farm, and the University of Kentucky Medical Center.
• Ardent Health Services of Nashville, Tennessee has announced plans to purchase Lexington’s Samaritan Hospital. The hospital, which now has 336 beds, is a Lexington institution, having opened its doors in 1888.
• Atlantic Coast Airlines, which operates as a United Express carrier, is now offering regional jet service between Lexington and Chicago’s O’Hare International Airport. The schedule features three daily round-trip flights, replacing service previously offered by United Express partner Air Wisconsin.

LOUISVILLE

• Powergen plc, the British parent company of LG& Energy, has announced plans to sell two power plants in Georgia, leaving LG&E Energy Corp. as the company’s only U.S. holding. LG&E owns Kentucky Utilities and Louisville Gas & Electric Co., which serve 1.13 million customers in Kentucky and Virginia.
• Genscape, Inc., a young company that provides energy companies across the U.S. with information regarding power plant operating status, has received $3.55 million in venture capital funding. The investment group is comprised of Chrysalis Ventures, Prosperitas Investment Partners, LP, Anchorage Angels, Vectren Enterprises, Inc. Genscape uses wireless monitoring devices to collect data from high voltage electric transmission lines at various points on the electric grids. The company then provides its energy customers with estimates of power plant operating status, allowing them to determine areas of excess or deficient supply.
• ResCare (NASDAQ-NM: RSCR), a leading provider of services to people with developmental disabilities and special needs, has restructured its debt through the issuance of $150 million of 10.625% Senior Unsecured Notes, due November 15, 2008. A portion of the proceeds from the offering have been used to repay borrowings, with another portion used to repurchase some $16 million in face value of its 6% convertible subordinated notes. The remainder of the proceeds will be used for general corporate purposes. “An important focus for us now will be implementing an internal growth strategy to expand our existing operations,” said Ronald Geary, the company’s chairman, president and CEO. “We may be able to add as many as 150 new community homes in our Division for Persons with Disabilities during 2002 without a significant increase in supporting overhead costs.”
• Progress Rail Services has selected Technology Park of Greater Louisville for the site of its wheel and axle division office and axle manufacturing and reconditioning operation. The two operations are expected to bring 27-30 new jobs to the area.
• For the fourth year in a row, The Oakroom at Louisville’s Seelbach Hilton Hotel has earned the prestigious Five-Diamond Award from AAA. The honor puts the restaurant in the same company as culinary notables such as The Mansion at Turtle Creek, Le Cirque 2000 and The Inn at Little Washington.
• Louisville will play host to the National Houseboat Expo 2002 on March 1-3. The event, which will take place at the Kentucky Fair & Exposition Center (south wing-B), will feature some 150 exhibitors and will have more than 30 houseboats on display. Educational seminars on topics such as financing, insurance, and safety are also slated.
• Its “faultless service” and ornate design have earned Louisville’s Brown Hotel a place on Conde Nast Traveler’s coveted “Gold List.” The list reflects the opinions of Conde Nast readers and includes hotels, restaurants and sites throughout the world. The Brown Hotel was the only Kentucky hotel recognized in the issue.
• Kindred Healthcare, Inc., a national provider of long-term healthcare services, has announced that the underwriters for its recent equity offering have exercised their over-allotment option for 327,035 shares of its common stock priced at $46.00 per share. Net proceeds received by the company from the exercise of the over-allotment option will be used to repay outstanding borrowings under the company’s senior secured notes due 2008.

METCALFE COUNTY

• The Young Oil Corporation, a privately-owned oil and gas exploration and production firm based in Knob Lick, Kentucky, has drilled in a second flowing well in Metcalfe County. “We believe we have defined the limits of the field now and believe there is room for at least 30 more wells,” said company CEO Anthony Young, who added that he expects to continue development of the field throughout the winter. Young currently holds the record in Tennessee for the best producing well to dry holes ratio for all operators in the state. “We are using the same process that made us so successful in Tennessee and now applying it to Kentucky oil exploration as well,” added Young.

MIDDLESBORO

• Commercial Bancgroup Inc., which operates nine banking offices in eastern Tennessee, has received approval from the Federal Reserve to buy Cumberland Mountain Bancshares. Cumberland Mountain Bancshares is the parent company of Middlesboro Federal Bank, which operates in Middlesboro, Pineville and Cumberland, Kentucky, as well as in Fountain City, Tennessee. No lay-offs are planned as a result of the acquisition, said Commercial Bank President Terry Lee.

OWENSBORO

• Woodward Marketing L.L.C, a unit of Atmos Energy Holdings, has acquired the gas marketing assets of Innovative Gas Services Inc. (IGS) and the common stock of Southern Resources, Inc. for approximately $3 million in cash. IGS and Southern Resources, gas marketers based in Owensboro, Kentucky, provide natural gas services primarily to industrial and commercial manufacturing customers served by Williams’ Texas Gas pipeline system. Since 1988, Woodward Marketing’s natural gas sales to customers in Kentucky have grown nearly eightfold, from 18.5 thousand cubic feet (Mcf) per day to 140 Mcfd.† The acquired gas marketing companies will add approximately 50,000 Mcfd of new customer sales.

PADUCAH

• Computer Services, Inc. (CSVI) has implemented a two-for-one stock split in the form of a stock dividend, payable to shareholders of records as of December 3, 2001. The company’s board of directors has also increased the cash dividend from $.19 per share to $.21 per share. In addition to its core banking products, CSI provides a complete line of imaging and EFT services.

PRESTONSBURG

• Construction has officially begun on the new East Kentucky Science Center in Prestonsburg. Located on the campus of Prestonsburg Community College, the 11,000-square-foot center will feature a state-of-the-art domed planetarium, demonstration lab, and classroom as well as a 3,000-square-foot science exhibit hall. The new center, designed by Nolan & Nolan, Inc. Architects and Engineers, is expected to be completed by Summer 2003.
• An internal investigation launched by Highlands Regional Medical Center has uncovered “substantial evidence” of employee theft, drug misuse and other misconduct by employees on hospital property. According to a press release issued by the hospital, the investigation revealed “multiple incidents involving many employees.” The release went on to say that had the situation continued, it could have reached the point of jeopardizing patient care. Hospital officials said that employees involved in the misconduct have been dealt with “in accordance with internal policies, the laws of the Commonwealth of Kentucky and other regulatory bodies.”

SHELBYVILLE

• In an effort to service the area’s growing Hispanic/Latino population, Republic Bank in Shelbyville has introduced a new product designed to help those clients better manage their finances. UltraCash® accounts allow local Hispanic/Latino residents to make deposits into an account that can be accessed through ATMs and other point-of-sale terminals where PIN-based debit cards are accepted. Secondary cards will be offered for family members, even if they do not reside in the U.S. The bank has also hired bilingual client service employees and modified its ATM and Infoline to provide information in Spanish and English.
• Borders Unlimited Inc. has applied for $300,000 in state tax incentives in hopes of expanding its Shelbyville wallcovering manufacturing facility. The company's expansion plans involve adding 12,000 square feet to the company's existing facility, as well as the addition of at least 15 jobs. The new jobs will range in salary from $21,000 for production workers to upwards of $140,000 for an upper management position. Borders supplies wallpaper to retailers such as J.C. Penney, Sears, and Target.

SOMERSET

• The Southern Kentucky Economic Development Corporation has been awarded $600,000 in funding from the state to continue its mission of job creation and community development in the region. SKEDC’s new 20,000-square-foot information technology center, which will be built in Pulaski County’s Valley Oak Business & Technology Park, has been designated as one of the Cabinets’ three “New Economy” projects, which are those determined to best meet the overall economic goals of the state.

SOUTHEASTERN

• Sumitomo Electric Wiring Systems has announced that it will close its plants in Morgantown and Edmonton, resulting in the loss of 900 jobs. The company, which manufactures wiring harnesses for the automobile industry, is moving the jobs to Mexico to cut labor costs.

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