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FAST LANE - June
2002
STATE
Fazoli's, Dippin' Dots Form Partnership
with McDonald's
 Two
Kentucky companies are seeing heightened exposure of their products
as the result of recent agreements with McDonald’s Corporation.
Lexington-based
Fazoli’s, a fast-casual Italian restaurant chain, has formed a
joint venture with McDonald’s to develop 20 to 30 Fazoli’s
restaurants in three U.S. markets.
For McDonald’s,
the partnership allows the company to add the Italian food segment of
the market to its portfolio, an area not previously represented, said
Russ Smyth, president of partner brands for McDonald’s. McDonald’s
currently owns and operates more than 650 Boston Market locations, some
200 Donato’s Pizzeria restaurants, and has a majority interest
in Chipotle, with nearly 200 U.S. restaurants. It also has a minority
interest in Pret A Manger sandwich shops.
  For
Fazoli’s, the partnership offers access to McDonald’s recognized
experience in site development, supply chain and other business systems,
allowing the company to expand at a more rapid pace. As part of the
agreement, McDonald’s will have an option to purchase the entire
company at a later date.
Paducah-based Dippin’
Dots, which produces the tiny super-frozen ice cream pellets that are
particularly popular among the 8-18 age market, has also piqued the
interest of McDonald’s. The company is now offering the unique
dessert in some 250 of its San Francisco restaurants and has spent more
than $1.2 million in advertising to promote the new item. Dependent
upon customer response, McDonald’s plans to expand into other western
U.S. markets.
Since its inception
in 1988, Dippin’ Dots has become highly popular in the marketplace
and was recently ranked by Entrepreneur magazine as 69th among the top
100 fastest-growing franchises.
STATE
Eight Communities Awarded Revitalization
Funds
 Eight
Kentucky communities have been selected to receive a total of more than
$300,000 as part of the state’s Renaissance Kentucky program, created
in 1997 to assist communities in revitalizing their downtown districts.
The communities
receiving funding include: Bellevue ($30,500), Bloomfield ($30,500),
Liberty ($30,500), Madisonville ($45,750), Marion ($30,500), Bowling
Green ($50,000), Dawson Springs ($50,000) and Maysville ($50,000).
The goal of Renaissance
Kentucky is to recognize and honor communities that have maintained
or restored their central downtown areas as safe, efficient and functional
urban cores. In addition, the program provides support and technical
assistance in developing strategies to improve downtown districts.
The program is administered
by an alliance of agencies including the Kentucky Heritage Council,
Kentucky Housing Corporation, Kentucky League of Cities, Kentucky Department
for Local Government, Kentucky Transportation Cabinet, Federal Home
Loan Bank of Cincinnati and Fannie Mae.
“Renaissance
Kentucky is aimed at helping our communities with developing businesses,
housing and rental opportunities in their downtown areas,” said
Governor Paul Patton. “All Kentucky communities should have downtown
centers thriving with activity to pass on local traditions and treasures
to future generations.”
STATE
State Economic Group Ranked Among
Top 10
Kentucky’s
Cabinet for Economic Development has been named as one of the Top 10
Economic Groups in the country by Site Selection magazine. Each year,
the magazine chooses its Top 10 economic development groups, based on
their achievements in attracting large-scale corporate expansion projects.
The selection is
based on: capital investment in the service area, new jobs created in
the service area, capital investment per capita, and new jobs created
per 100,000 population. In 2001, Kentucky recruited businesses equaling
$3.2 billion and 12,437 new jobs.
In addition, Citicorp
Credit Service’s $44 million expansion in Florence, Kentucky was
listed as one of the Top 10 Deals of 2001.
STATE
R & D Investment Puts UK in
the Top 50 American Universities
 The
University of Kentucky continues to make progress in its endeavor to
become a top research institution.
The university ranks
47th in the nation in the latest report from the Southern Regional Education
Board, which lists universities based on their expenditures in research
and development. In 1985, UK ranked 67th in the listing.
The author of the
report remarked that UK’s standing is particularly notable because
more than 42 percent of its R&D expenditures come from the university
itself; money that could have been funneled elsewhere. That, said author
Joe Marks, is indicative of the importance the school is placing on
research and development.
UK’s standing
in this report puts it in the company of well-regarded schools such
as Emory University (46th) and Virginia Tech (51st), both of which saw
most of their R&D funding come from federal sources.
The SREB report
comes on the heels of a report announced by the National Science Foundation,
in which UK was also ranked 47th in research spending.
STATE
Rising Healthcare Costs Addressed
by Kentucky's Chamber Coalition
 The
Kentucky Chamber of Commerce has formed a coalition of employers to
review the issue of rising healthcare costs and come up with solutions
to counter the problem.
In recent years,
Kentucky employers have seen double-digit increases in health insurance
premiums, even in the face of more tightly controlled managed care plans
for workers.
The Kentucky Employers
Health Benefits Coalition will work to identify the factors involved
in driving healthcare costs up and ways in which to control them.
The group hopes
to have proposals ready in time to present to the 2003 General Assembly.
The Chamber recently
earned a place on the 2002 Associations Advance America Honor Roll for
its professional development/continuing education programs.
NORTHERN KENTUCKY
International Flight Service Expands
at Delta Air Lines' Cincinnati Hub
 Delta
Air Lines is expanding its international service from Cincinnati/Northern
Kentucky International Airport with the addition of a daily nonstop
flight to Rome.
The new service
will begin July 1 and will operate during the summer season through
September. Delta’s SkyTeam partner, Alitalia, will provide the
service, using the 268-seat MD-11 aircraft.
Delta has also partnered
with Aero Mexico to add a new Saturday-only, nonstop flight to Cancun.
The new service began earlier this month, using Boeing 737-800 aircraft
that carry up to 154 passengers.
In May, Air France
– also a Delta partner – resumed its daily nonstop flight
between Cincinnati and Paris. Delta also offers a daily nonstop route
to Paris.
LEXINGTON
Companies Help Small Travel Firms
Better Compete with Online Giants
Two Lexington-based
companies have partnered to provide a solution for small travel agencies
across the nation, which have been struggling not only to compete with
larger online travel companies but stay afloat in an industry that has
been particularly hard hit by the events of September 11.
Encite Commerce
and the Association of Retail Travel Agents (ARTA) have joined to create
and customize online travel booking engines for ARTA members, giving
them the ability to offer their customers pricing that is competitive
with other online booking services such as Travelocity and Expedia.
Services offered through the customized engines include air, car rentals,
hotels, cruises and a variety of travel packages.
“Travel agents
will now be armed with comparable technology to the online travel companies
who have been capturing large chunks or market share,” explained
Stepfan Jefferies, CEO of Encite Commerce. “And…organizations
such as banks and corporations will be able to provide convenient and
competitively priced travel services to their members and employees.”
ARTA is the largest
nonprofit trade association in North America that exclusively represents
travel agents. Encite specializes in the creation and management of
flexible e-commerce distribution venues and has more than 285 clients
throughout the nation, including Village Voice Media and Clear Channel
Radio.
BOWLING GREEN
Entrepreneurial Scholarships Keep
Young Business Owners in State
 A
successful online business launched by two Bowling Green high school
students will continue its growth in Kentucky thanks to the state’s
New Economy initiative and entrepreneurial scholarships from Western
Kentucky University.
Clinton and Chris
Mills are co-owners of Hitcents.com, an online advertising and marketing
firm now in its third year of business. In 2001, the twins were honored
by the U.S. Small Business Administration as Kentucky’s Young Entrepreneurs
of the Year. Although the two considered attending institutions such
as Stanford, Texas, Vanderbilt and the Massachusetts Institute of Technology
(MIT), they say that an attractive location for their company coupled
with Kentucky’s support of high-tech business persuaded them to
remain in-state at Western Kentucky University.
Chris Mills will
be the first recipient of Western’s Don and Suzanne Vitale Entrepreneurial
Scholarship. Clinton Mills will be the first to receive the school’s
Presidential Young Entrepreneurs Scholarship. The full scholarships
include tuition, books, room meals and an international study experience.
WKU President Gary
Ransdell lauded the Mills’ company as a premier example of an “innovative,
high-tech business that will promote economic development in south-central
Kentucky. “
The success of Hitcents,
which will be moving into Western’s Center for Research and Development,
could also attract similar companies to the Center.
“Getting the
business in the new center with a larger facility alongside other high-tech
businesses can only benefit both sides,” said Ed Mills, the students’
father. “The business can then expand into hiring more people [and]
will probably employ fellow Western students so they too can enjoy the
entrepreneurial atmosphere.”
LOUISVILLE
New Chrysalis Fund to Provide $143
Million in Venture Capital
Chrysalis Ventures,
the state’s largest venture capital firm, recently concluded fundraising
for its fourth, and largest, venture capital fund. The $143 million
fund attracted a variety of new institutional investors from the pension,
endowment, foundation, insurance, fund of funds and banking sectors.
Chrysalis’ new fund will make private equity investments in emerging
high-growth companies in the Southeast and Midwest. The firm plans to
invest in approximately 25 companies over the next four years, providing
money for both early-stage companies and later-stage companies seeking
follow-on venture financing. The initial investments will typically
range from $1.5 to $2.5 million per company.
Since its inception
in 1993, Chrysalis has invested in more than 30 companies, including
TechRepublic, Regent Communications, Premier Parks, Appriss, Aperture
Credentialing and Genscape.
EASTERN KENTUCKY
New Grant Program Will Help Companies
Improve Tech Skills
 The
Center for Rural Development has announced a new grant program to help
companies improve the technology skills of their staff.
The C-TRAIN grant
program is available to businesses within the 40-county region served
by the Center for Rural Development. The grants range from $500 to $25,000.
Applicants can choose from six options to find one that best suits their
needs. Options include salary incentive grants, grants for specialized
training, tuition reimbursement for technology courses and certifications,
and grants to pay salary costs while workers are involved in training
courses.
Employers can increase
the size of their grant by training more employees.
Addressing the significance
of the new program, Greg Jones, executive director of the Southern Kentucky
Economic Development Corporation points out that “manufacturing
today makes up only 17 percent of the workforce; service and technology
comprise 45 percent. Highly skilled workers are imperative to keeping
industry and the accompanying jobs in the region.”
Funds for the C-TRAIN
Grant Program have been authorized by the Small Business Administration
and will be available for the next four years. Applications from businesses
are currently being accepted.
For more information,
contact the Center for Rural Development at (606) 677-6000 or visit
www.centertech.com/c-train.
WINCHESTER
Changes at EDS Result in Loss of
460 Jobs at Winchester Facility
 Electronic
Data Systems is cutting approximately 460 jobs at its Winchester facility
as a result of the company’s plans to transfer a portion of the
center’s operations to Canada.
The layoff –
which will affect 280 of EDS’ regular employees as well as 180
temporary workers – represents approximately two-thirds of the
facility’s workforce. However, EDS officials in Dallas maintain
that the company has no plans to close the Winchester facility.
An EDS spokeswoman
said the decision to move work to Canada was the result of a request
from its client, Hewlett-Packard, for which EDS manufactures printers,
computers and other equipment.
EDS workers at the
Winchester customer interaction center served Hewlett-Packard customers
by handling questions about HP equipment.
EDS says it is pursuing
plans to bring other business to the Winchester center.
The layoff process
is planned to begin this month and is expected to run through December.
EDS has been operating
in Winchester since late 2000, when it acquired the facility from MCI.
ERLANGER
Toyota Spins Off supplier Support
Center as an Independent Company
 An
arm of Toyota created to share knowledge of its famed Toyota Production
System (TPS) with other manufacturers has been spun off by Toyota Motor
Manufacturing North America to form an independent company.
The arm of the company
known as the Toyota Supplier Support Center (TSSC) will now be TSSC,
Inc., headed by Hajime Ohba as president. Ohba previously served as
vice president and general manager of TSSC.
Created in 1992,
the center has worked with more than 100 companies to help them develop
their own version of TPS.
Ohba said the new
company will primarily support companies and industries that are not
part of Toyota. Profits from the business will be used to support TPS
implementation with society-based organizations. For instance, Ohba
pointed out, in the past Toyota has worked with hospitals and organizations
such as the American Printing House for the Blind to help them become
more efficient.
“TSSC, Inc.’s
core philosophies will remain the same,” said Ohba. “We are
committed to using TPS to contribute to North American society by using
the principles of eliminating waste, raising quality and shortening
lead times.”
MADISONVILLE
Gift Wrap Manufacturer to Locate
in Long-Vacant Madisonville Plant
 After
sitting empty for more than a decade, the former York manufacturing
facility in Madisonville will now have a new occupant.
Glitterwrap, Inc.,
which specializes in metallic (mylar), iridescent, and prismatic gift
wrap products, has purchased the 345,000-square-foot plant after learning
of its availability on the Madisonville-Hopkins County Economic Development
Corp.’s Web site. The plant has been vacant since 1991, making
it the community’s No. 1 economic development priority, said county
officials.
The New Jersey-based
company purchased the plant and 79 acres from York for approximately
$2.5 million. The plant’s location near the geographic center of
the U.S. population was a key factor in its decision to locate in Madisonville.
Glitterwrap plans
to be in operation by July and will initially employ 82 workers with
an average wage of approximately $11 per hour. The number of employees
is expected to grow to 300 within the next 10 years.
ELIZABETHTOWN
Local Business Owner's Trademark
Case Headed to US Supreme Court
The U.S. Supreme
Court has agreed to hear a case involving Elizabethtown business owner
Victor Moseley and national retailer Victoria’s Secret.
Victoria’s
Secret, well known for its lingerie catalogs and stores, sued Moseley
in 1998 in regard to his lingerie and adult novelty store, which he
had named Victor’s Secret. (The name was later changed to Victor’s
Little Secret and has since been changed to Cathy’s Little Secret,
using Moseley’s wife’s name.)
Victoria’s
Secret won its case in U.S. District Court in Louisville and again in
the 6th Circuit Court of Appeals, which cited the Federal Trademark
Dilution Act of 1995 in protecting the national entity.
The Supreme Court’s
decision to accept the case has drawn national attention.
Moseley’s attorneys
with the Louisville firm of Middleton Reutlinger say the Supreme Court
ruling will set a precedent in terms of how other trademark issues will
be decided.
OWENSBORO
Tourism Gets a Boost with August Opening of Motorsports
Museum
 An
August opening is planned for the Owensboro Area Museum of Science and
History’s new SpeedZeum wing, which will highlight motorsports
ranging from soap box derbies to NASCAR.
Though the new wing
is not completely finished, project officials decided to go ahead and
display what exhibits they already have and will continue to add to
the wing as funding and new displays come in.
When complete, the
$1.5 million SpeedZeum will cover 8,000 square feet and include an interactive
pit stop area, trivia games, and racing simulators. The master plan
also calls for an exhibit featuring NASCAR driver Darrell Waltrip that
will include a commentary on pre-race strategy. Other NASCAR drivers
will be included as well, along with motorcycle, hydroplane and drag
racers.
The new museum is
expected to eventually draw as many as 35,000 paying visitors each year.
LOUISVILLE
Louisville Center to House New Biomedical Research
Companies
 If
the events of recent months are any indication, Louisville may become
a hub for biomedical research. The Louisville Medical Center Development
Corporation is in the process of developing a new center in downtown
Louisville to nurture young biomedical companies. The organization’s
goal is to eventually develop a life sciences research and business
park around the center that will be home to both new and mature medical-related
companies.
The new center is
scheduled to open in November. However, the development corporation
found that a number of area start-ups were in need of space much sooner
than that. In an effort to meet that need, the corporation has leased
23,000-square-feet of space in downtown Louisville, spending some $400,000
to renovate it and equip it with wet labs and other research equipment.
‘’The
fact that we already have six companies enrolled in the incubator even
though the new building is not yet complete demonstrates the quality
of research and technology that is being developed in this community,’’
Louisville Mayor Dave Armstrong, who also serves as chairman of the
development corporation, said.
The companies already
signed on include:
- Aptamera, which
is developing cancer drugs and testing an early-detection device for
cancer
- ApoImmune, which
is researching methods of using the human immune system to counter
cancer and other illnesses
- CorNovus, which
is working on ways to treat heart disease in a minimally-invasive
way
- Nexgenics Bioscience,
which is researching ways in which to use automated cell micro-culturing
systems for in-vitro fertilization
- PathoGenomics
Laboratories, which is working on methods of detecting and identifying
infectious agents like anthrax
- Sheltowee Pharmaceuticals,
which is involved in the research and development of drugs that primarily
use products from nature.
HENDERSON
Sights Denim Plant to Close as a Result of Clients'
Move to Mexico
Sights Denim Systems
Inc. is shutting down its finishing operation facility in Henderson
and will move production to its plant in Mexico, which is being expanded.
The closing will eliminate approximately 245 production jobs.
The Henderson plant,
which began operations in the mid-‘80s, had processed clothing,
primarily jeans, to impart a softer, well-worn feel.
Sight’s officials
say that the restructuring is a result of decisions being made by many
of its clients – which include Levi Strauss and Calvin Klein among
others – to close their U.S. manufacturing facilities and move
to Mexico.
Sights will retain
approximately 150 employees at its Henderson office on South Main Street
who will focus on “expanded product development…and specialty
finishing.”
Business Briefs
ASHLAND
- Our Lady of
Bellefonte Hospital has purchased the River Valley Health System in
nearby Ironton, Ohio for $5 million. OLBH plans to turn the former
hospital, which closed in 2001, into an urgent treatment center with
expanded diagnostics such as x-ray and lab services. The new center
is expected to open within the next five months, employing 25 people.
BOWLING GREEN
- The Inter-Modal
Transportation Authority has selected the Lexington consulting firm
of Mayes, Sudderth & Etheredge, Inc. to handle the design, engineering
and construction management of the initial phase of the Kentucky TriModal
Transpark, which is being developed to include both air and rail facilities.
- Western Kentucky
University’s “Investing in the Spirit” campaign, a
five-year program designed to strengthen the university’s “people,
places and programs,” is showing signs of achieving that goal.
As of March 30, WKU had received $10.3 million in gifts, a record
number that represents a 34 percent increase over the amount raised
for the same period in the previous year. According to WKU President
Gary Ransdell, the largest portion of the funds – much of which
have been accumulated in the form of donations under $1,000 –
is being used for scholarships and endowments for faculty.
CHRISTIAN COUNTY
- Plans are
moving forward for the construction of a new convention center in
Christian County, in spite of a $2 million shortfall in funding. Convention
center officials say that based on the current bid in hand, to delay
construction would ultimately cost more than to proceed. Though money
from the General Assembly is not likely, as was originally hoped for,
the Hopkinsville–Christian County Conference Center Corp. plans
to pursue other state and federal sources. In the meantime, the design
of the center will allow for the facility to be built with optional
features that can be added at a later point. The new center is expected
to be complete by next June.
- Philip Mullins
Warehouses is planning to build a 320,000-square-foot complex on 20
acres in the Commerce Park industrial park near Pembroke. The project
is expected to be completed by August.
COALTON
- Phase three
of the Northeastern Kentucky Industrial Parkway, from Culp Creek to
Ky. 207, is more than 75 percent complete and is expected to open
in August, according to the state transportation cabinet. The new
roadway, which is planned to be completely finished by late fall 2003,
will pass through the 2,000-acre EastPark industrial site and will
open up thousands of acres for potential economic development.
CORBIN
- Kentucky legislators
have approved a $422,000 grant that will allow for the extension of
water and sewer lines to Eastern Kentucky University’s new Corbin
campus. The grant clears the way for construction to begin on the
EKU project, which will be located just west of the new Southeast
Kentucky Regional Industrial Park.
CORBIN
- Construction
is set to soon begin on Corbin’s new Center for Technology, Training
and Community Affairs, which will house classrooms, state-of-the-art
computer rooms, and an information technology room along with a large
multi-purpose room. A 6,000-seat auditorium will be added in the final
phase of the $10 million project. The center will also feature tele-linking
with colleges and universities in addition to offering a local site
for specialized training, which is now having to take place in locations
as far away as Lexington.
ELIZABETHTOWN
- After losing
80 jobs earlier this year due to company restructuring, VAC Magnetics
is now gaining 20 new positions. The news comes as the result of a
decision by VAC’s parent company, Morgan Crucible, to close its
Oklahoma City facility and move its administrative staff to E-town.
Accordingly, all of VAC’s key administrators will now be located
in Elizabethtown. Company officials say the new positions will be
manufacturing jobs and will likely be filled by employees who had
to be released earlier in the year.
- Fort Knox
National Company has been ranked as the sixth fastest-growing company
on the National Automated Clearing House Association’s Top 50
list, which ranks institutions based on their volume of debit and
credit activity for the year. Last year, FKNC, which was the third
largest non-bank processor to make the list, processed 11.4 million
payments worth over $10 billion for its 750 clients.
FLORENCE
- ADVO, Inc.,
one of the nation’s largest targeted direct mail marketing services
companies, is building a new 137,000-square-foot facility at the Union
Business Center in Florence. The new facility will be nearly 40 percent
larger than ADVO’s existing plant in Florence (located in the
Northern Kentucky Industrial Park) and will also provide up to 38,000
square feet for future expansion.
FRANKLIN
- Franklin’s
two Tyco plants are not expected to be affected by the company’s
recent announcement that it would shut down 24 factories, eliminating
more than 7,000 jobs. The cuts are being seen mainly in the company’s
electronics and telecommunications divisions. Though one of Franklin’s
plants handles electronics, the 300-employee facility primarily deals
with automotive electronics, a sector that has remained strong. Tyco
Adhesives, with a roster of over 900, is the largest tape producer
in the industry and remains robust as well, according to company officials.
HOPKINSVILLE
- HopFed Bancorp,
Inc., the holding company for Hopkinsville Federal Bank, has changed
its name to Heritage Bank in order to better reflect its planned growth
as a regional bank. The holding company currently has bank locations
in Hopkinsville, Murray, Cadiz, Elkton and Benton and a pending acquisition
of locations in Fulton, Kentucky and South Fulton, Tennessee.
JESSAMINE COUNTY
- Over objections
from area residents, the Jessamine County-City of Wilmore Joint Planning
Commission has voted in favor of recommending a zone change that would
allow a new retail/office development on the north end of the county
near the Fayette County line. If approved by the Jessamine Fiscal
Court, Bellerive Development Co.’s proposed development would
include 534,000 square feet of retail space and 260,000 square feet
of office space and could eventually bring up to 1,700 jobs.
LEXINGTON
- American Airlines
has dropped its flight service between Lexington and St. Louis, citing
a lack of profit on the route. No other air carriers offer a direct
flight between the two cities.
- Lexington’s
Urban County Planning Commission has granted approval for a 500,000-square-foot
office park to be built on 45 acres near I-75, between the Hamburg
Pavilion retail center and Winchester Road. When completed the park
will be surrounded by homes and a golf course.
- Low-fare carrier
American Trans Air, Inc. (ATA) has announced plans to offer daily,
nonstop service between Lexington and Chicago’s Midway Airport.
The new service will begin August 28 with four daily flights. Introductory
fares will priced beginning at $69 each way.
LEWIS COUNTY
- The Lewis
County Industrial Authority is developing a marketing plan to attract
business to its available facilities, beginning with a direct mail
campaign to some 400 businesses in the southern Ohio area. Among the
available facilities in the county are a spec building in the Black
Oak Industrial Park and the former Nine West shoe factory.
LONDON
- Ott’s
Grocery Store in London is one of five small businesses highlighted
in the June issue of Fortune Small Business magazine. The family-owned
business is featured in the magazine’s article entitled “The
Century Club,” which looks at family businesses that have lasted
more than 100 years.
LOUISVILLE
- The Louisville
audit and tax practices of Arthur Andersen LLP have been acquired
by Ernst and Young LLP. The transaction involved three partners as
well as approximately 45 Anderson employees. The combined offices
now carry the Ernst & Young name and employ a staff of 126. Both
Ernst & Young and Andersen provide audit, tax and advisory business
services to a broad range of clients, from privately held businesses
to large, multinational companies, in industries such as manufacturing,
health care and financial services.
- A new high-end
washing machine developed at GE’s Appliance Park in Louisville
is now on the market. The new GE Profile washer, which offers features
such a reduced wear on clothes, a variable-speed motor and electronic
controls, will also be made at Appliance Park. The company has invested
approximately $15 million in the development of the new washer, which
retails for around $600.
- Louisville
Ladder is shutting down its Louisville manufacturing facility and
will move the plant’s ladder-making operations to its factory
in Monterey, Mexico, which is a much larger facility. The closing
will mean the loss of approximately 120 hourly jobs and some 20 salaried
positions. The company’s headquarters and distribution center
will remain in Louisville. In addition to its Louisville and Monterey
locations, Louisville Ladder also has a manufacturing plant in Smyrna,
Tennessee.
- Goldberg &
Simpson, P.S.C. and Yussman and Associates, PLLC have merged with
plans to expand the two firms’ real estate practices. The merged
entity will use the Goldberg & Simpson name, with Marc Yussman
as a member of the firm.
- After a 200
percent growth rate in 2001, Xodiax Internet Data Centers has more
than tripled the capacity of its Internet connections, adding two
national fiber optic backbone carriers – Qwest and AT&T –
to accommodate its customers’ growth and network capacity demands.
The expansion includes dual all-optical OC-3 (155 Mbps each) connections,
the equivalent to more than 200 individual T-1 business lines. Xodiax
acts as an Internet utility company by providing “bandwidth on
demand” for its colocation, Web hosting, disaster recovery and
Internet access clients.
- As part of
a plan to grow its simulcast operations both in the U.S. and globally,
Churchill Downs has formed a separate business unit that will be known
as Churchill Downs Simulcast Network (CDSN). Robert Decker, executive
vice president and chief financial officer for Churchill Downs, will
take on the additional role as president of the new unit. Karl Schmitt
Jr. will serve as chief operating officer.
- Computer technology
company Vobix Corp. has ceased operations after selling its last software-hosting
contracts to New Hampshire-based ManagedOps.com Inc. for an undisclosed
price. The two-year-old company was a subsidiary of Virginia-based
ManTech International Corp., which decided to eliminate some of its
divisions and subsidiaries as part of a strategy to focus more on
its IT services to the federal government. At its peak, Vobix had
more than 80 employees. ManagedOps is not retaining any Vobix staff.
- Pizza giant
Papa John’s is test-marketing several new products, including
a new deep-dish pizza that has proven to be a winner among focus groups.
The pan pizza is currently being offered in Wichita, Kansas, which
– perhaps not coincidentally – is the home of Pizza Hut
founder Frank Carney, now a major Papa John’s franchiser. Papa
John’s has also been offering two new vegetarian pizzas on its
traditional crust and is in the process of testing two kinds of chicken
wings.
- Louisville’s
transit authority will soon be one of the few in the nation to utilize
hybrid-electric buses on its streets. The Transit Authority of River
City (TARC) plans to buy nine of the vehicles, which are powered by
a combination of a diesel turbine and an electric motor. The next-generation
buses, which are priced at approximately $270,000 each, can travel
more than twice as far on a gallon of fuel than traditional vehicles
and produce far less smog-producing emissions. The purchase is being
funded by a $3.7 million grant along with $750,000 in TARC money.
TARC hopes to have the buses operating by next spring.
- Confluent
Technologies, Inc., a Louisville-based provider of knowledge management
and business intelligence services, has received $2 million in its
first round of institutional funding. Chrysalis Ventures, Kentucky’s
largest venture capital firm, led the investment. Confluent Technologies
provides services that aggregate, manipulate and visualize data from
multiple sources, across all platforms. Current Confluent customers
include National Processing Corporation, Bell Technologies, Job News
USA, QCI, and Texas Roadhouse Restaurants as well as a number of school
districts around the country.
- Musselman
Hotels LLC has begun construction on a new Hilton Garden Inn and Conference
Center on the grounds of the Kentucky Fair and Exposition Center.
The hotel will feature 15,000 square feet of meeting space and will
offer catering and food service.
- Commonwealth
Printing Company has purchased three new Heidelberg printing presses,
making the company one of the first area printers to offer large-format,
direct-to-press technology. Direct imaging eliminates intermediate
steps such as camerawork, film development and assembly and provides
the means of handling rush jobs with tight deadlines.
- New red, white
and blue U.S. Bank signs are beginning to replace the green Firstar
Bank signs at branches and ATMs throughout Kentucky as the result
of the finalized merger of Firstar Corporation and US Bancorp. The
transformation of all Firstar Bank locations to the new U.S. Bank
name will be completed by the end of summer 2002.
- Raytheon’s
Louisville facility has been awarded a $47.8 million contract from
the U.S. Navy to upgrade and convert its Phalanx gun systems. The
project is expected to be completed by June 2004.
- The Oakroom
at Louisville’s Seelbach Hilton Hotel has been named as one of
the nation’s top 50 hotel restaurants by Food & Wine magazine.
The imaginative use of local ingredients such as pawpaw, sorghum and
bourbon by Chef Jim Gerhardt – a nominee for the 2002 James Beard
Foundation Awards – was instrumental in placing The Oakroom
on the prestigious list.
MARION
- Production
at Safetran’s new Marion facility is up and running, with 30
employees handling the assembly of relays for the transit and railroad
industry. All 30 employees were formerly employed by Tyco, which closed
its Marion electro-mechanical manufacturing facility in 2000.
MUHLENBERG COUNTY
- Kentucky Congressmen
Ron Lewis, Ernie Fletcher and Ed Whitfield have requested the support
of the U.S. Environmental Protection Agency (EPA) regarding a proposed
power plant in Muhlenberg County. In a letter to Christine Todd-Whitman,
head of the EPA, the congressmen expressed concern about the way in
which the EPA has thus far handled Peabody Energy’s proposed
Thoroughbred plant. The EPA and other environmental groups have said
the proposed plant will produce harmful emissions. Peabody maintains
that their pollution controls will make the 1,500 megawatt power plant
one of the cleanest in the region. Whitfield and Fletcher are on the
House Committee on Energy and Commerce, one of several congressional
committees overseeing the EPA.
NORTHERN KENTUCKY
- Two years
into a campaign to raise funds for scholarships and endowments, Northern
Kentucky University already has more than half of its $40 million
goal, in spite of a sluggish economy. In addition to endowments for
scholarships, professorships and chairs, funds are also earmarked
for items such as $1 million in software for the new university planetarium
and a proposed regional events center.
NORTHERN KENTUCKY
- Lawsuits against
the Erpenbeck Co., a Northern Kentucky homebuilding company, have
officially begun with Provident Bank’s lawsuit seeking more than
$2.5 million in unpaid construction loans. Kenton County officials
say that hundreds of liens have been filed against Erpenbeck-built
properties in recent months and Bill Erpenbeck is being investigated
by the FBI on charges that he took checks written to banks and deposited
them in Erpenbeck accounts.
OWENSBORO
- The Diamond
Lake Resort has been sold for $950,000 through an eBay internet auction.
The new owners, Charles and Allen Andrichyn, of Pennsylvania, bought
the 158-acre resort from Craig Schwab, a California accountant who
had also purchased it on eBay (for $1.2 million). The new owners plan
to bring the 1960s-era resort back to its original condition and reopen
the restaurant and 835-seat theater. The resort includes a 270-site
campground (which is already open), 10 motel rooms, 10 apartments,
go-cart tracks, a fishing lake and a swim park with beach volleyball.
RICHMOND
- Eastern Kentucky
University has received a $100,000 grant from AT&T to develop
an online program that will allow Kentucky teachers to become certified
in technology. Teachers will be able to attain certification at three
levels of technology through the new program, which will allow them
to move through the classes at an individual pace.
SHELBY COUNTY
- Shelby County
Trust Bank has completed its merger with Commonwealth Bank & Trust
Company of Jefferson County. The newly-merged entity has approximately
$500 million in assets and some $700 million in trust assets.
- In order to
accommodate future expansion, Kentucky-Indiana Lumber has moved from
its Louisville facility and is combining its truss and panel manufacturing
facility with a retail lumber and home-building supply outlet at the
company’s Shelbyville location.
SPARTA
- The Kroger
Co. and the Nabisco Biscuit division of Kraft Foods have signed on
as sponsors of the Kentucky Speedway’s June 15 NASCAR Busch Series.
The Speedway’s 2001 inaugural race attracted a standing-room-only
crowd of 70,338, a figure that track officials expect to duplicate
this year.
UNION COUNTY
- Jim David
Meats is planning to build a 17,000-square-foot ham processing facility
on a five-acre parcel near its existing location near KY 160. The
company expects the new addition to result in the hiring of 20-30
workers, boosting the total workforce to 40. Company officials also
emphasized that they plan to purchase all of their ham products from
Kentucky farms.
WARREN COUNTY
- Recently released
Census figures show a 475 percent increase in Warren County’s
Hispanic population between 1990 and 2000. The official number of
Hispanics in the county was 2,466 in 2000, up from 429 in 1990. However,
state data experts estimate that the actual number of Hispanic immigrants
may be two to three times greater than the official figures.
WOODFORD COUNTY
- Woodford County
resident Gretchen Nalley has parlayed her experience as a new mother
into a book that is being billed as the “world’s first directory
of baby-related Web sites.” The Baby Web includes the Web addresses
and customer service numbers of nearly 1,000 companies that offer
baby-related items and information. The book is being sold at Amazon.com
as well as traditional outlets such as Hawley-Cooke Booksellers in
Louisville and Joseph-Beth Booksellers in Lexington.
STATE
- Kentucky Congressman
Ernie Fletcher has been named to the Speaker’s Prescription Drug
Action Team in Washington. Fletcher, a physician, will be working
with the various House committees to develop a Medicare plan to provide
prescription drug coverage for seniors.
- Cingular Wireless
plans to invest some $110 million in Kentucky to expand its existing
service. The company plans to add 42 cell sites and overlay its entire
network with next-generation technology, enabling Cingular to offer
high-speed data services such as audio-visual transmissions and faster
Internet connections.
- The Kentucky
Agricultural and Commercial Trade Office in Guadalajara, Mexico has
been selected as the recipient of the 2002 World Trade Success Award
for international trade service providers. The office is a joint venture
between the Cabinet for Economic Development and the Department of
Agriculture and was established five years ago to help Kentucky’s
business community pursue opportunities for increased sales in the
Mexican market. Since then, the trade office has worked with more
than 300 small- to medium-size Kentucky companies in their international
marketing efforts with Mexico. In 2001, Kentucky companies exported
more than $430 million in products to Mexico, which now ranks as the
state’s #4 trade partner.
- CSX Transportation
Inc. has announced that it is planning to spend more than $80 million
this year to maintain and upgrade its rail networks in Kentucky and
Indiana. CSX owns more than 1,800 miles of tracks in Kentucky and
has key facilities in Louisville, Corbin and Lexington.
- The Kentucky
Society of Professional Engineers has selected Randal S. Wil-liamson
as this year’s recipient of its Young Engineer of the Year Award.
Williamson is a graduate of UK’s College of Mechanical Engineering
and is a lead mechanical engineer in the consumer products division
of Lexmark International.
- Three Kentucky
universities have been selected to receive $13.5 million in federal
and state funds to support interdisciplinary research and biochemical
and environmental sciences. Under this project, the University of
Kentucky will receive $7.2 million, the University of Louisville will
receive $4.8, and Murray State University has been granted $1.5 million.
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