STATE
State Board Approves $20 Million for Ag Diversification

The Kentucky Agricultural Development Board has approved the allocation of $20 million to establish an investment trust to promote the diversification of Kentucky tobacco farmers.

The Kentucky Agriculture Investment Trust will be established by the Kentucky Agricultural Finance Corporation (KAFC), which will work with local lenders, utilizing funds to provide up to 50 percent of a project’s total cost.

KAFC was created by statute in 1984, but has been inactive since 1996. In 2002, the Kentucky Agricultural Development Board, as part of the Long-Term Plan for Agriculture Development, recommended that KAFC be restructured to provide capital access for agricultural diversification and infrastructure projects.

KAFC will set up three different financing programs through the investment trust. The Investment Fund for Agriculture will provide financial assistance by making investments in local banks to buy down the interest rate for agricultural borrowers.

The Agricultural Endeavors Lease Program will allow funds to be used to purchase real estate to be leased to value-added agricultural processors for purchasing Kentucky-grown commodities. This program will combine these funds with funding from other loan and grant sources with the ultimate goal to provide below-market financing costs to the processor.

The Young Farmers Financing Program will allow funds to be made available to producers who meet qualify under the Farm Service Administration’s Young Farmer program and/or as “first-time” farmers.

For more information, contact David Bratcher with the Governor’s Office of Agricultural Policy at (502) 564-4627.

LOUISVILLE
Flexsteel Industries Buys DMI Furniture for $44 Million

In an effort to expand its product line, furniture maker Flexsteel Industries has purchased Louisville-based DMI Furniture Inc. for $44 million. The deal includes the assumption of approximately $27 million of DMI debt.

Flexsteel has been in the upholstered furniture business for more than century, while DMI is focused on the design, production and marketing of wood furniture. Accordingly, say Flexsteel officials, the two companies’ product lines complement each other.

Under the terms of the acquisition, which is expected to close later this month, DMI will operate as an independent unit of Iowa-based Flexsteel and will remain headquartered in Louisville.

DMI currently employs a staff of 40 in its Louisville office and 125 workers at its production and distribution facilities in Huntingburg, Indiana.

Flexsteel expects the acquisition to immediately add to earnings and sees annual sales of $400 million for the combined company.

Flexsteel had sales of about $292 million for its latest fiscal year ended June 30, while DMI Furniture recorded sales of $100.9 million for its fiscal year ended Aug. 31.

CHAVIES
Sykes Closes Call Center, 400 Jobs Lost

Customer support provider Sykes Enterprises has closed the doors of its 42,000-square-foot Perry County facility, leaving nearly 400 workers without jobs.

The company is a global leader in providing customer management services to Fortune 1000 companies, primarily those in the technology, consumer, communications, financial services and transportation and leisure industries. Among the company’s clients are major players such as Microsoft, Providian and Delta Air Lines. The Perry facility handled computer technical support for the Florida-based company.

Sykes announced the opening of the Perry call center in 1999, a point at which the company was rapidly expanding in the U.S. During that time, the company also established operations in Morganfield and Pikeville.

Since then, however, the company has been focusing on international expansion. A statement earlier this year announced the company’s plans to open call centers in the Philippines, India and Costa Rica, where Sykes has found it can hire college-educated workers for as little a dollar per hour. Sykes currently operates more than 40 customer support centers in the U.S., Canada, Europe, Latin America, Asia and Africa.

Though Sykes officials have said they hope the shutdown of the Perry County facility will be only temporary, they also indicated that a reopening would be dependent on future business and customer requirements.

STATE

Kentucky Earns National Acclaim for Favorable Business Climate

Kentucky communities continue to receive impressive marks in the business world, with the most recent accolades coming from Expansion Management magazine, a monthly publication for company executives who are actively looking for places to expand or relocate their facilities. Every year, the magazine’s renowned research department compares communities according to a variety of characteristics important to corporate site selectors.

This year’s “Mayor’s Cup Challenge” saw three Kentucky communities rank among the top 25 places in which to locate a business. Lexington led the pack with a No. 7 ranking, followed by the Northern Kentucky area at No. 15 and Louisville at No. 22.

The magazine examined 329 metropolitan statistical areas from a variety of perspectives. The six major areas of study were education, health, logistics, high-value labor market and legislative issues. Each of the studies was given equal weight.

Lexington was ranked 32nd out of the nearly 400 competitors in the Education Quotient. Louisville and Northern Kentucky ranked 7th and 26th in the Logistics Quotient, in large part due to the UPS and DHL hubs located in those cities.

A recent report by Forbes magazine, entitled “The Best Places for Business and Careers,” put Lexington at No. 14 on that list, with Louisville at No. 71. The city of Owensboro was ranked No. 59 on Forbes’ list of the “Best Small Places for Business and Careers.”

CLERMONT
Warehouse Blaze Not Expected to Disrupt Bourbon Production

Officials with Jim Beam Brands say a warehouse fire that destroyed 19,000 barrels of bourbon – approximately 800,000 gallons – will have no adverse impact on the company’s production.

“The fire affected less than two percent of our aging bourbon inventory,” said Rich Reese, CEO and president of Jim Beam Brands Worldwide, adding that the company can replace the “relatively new bourbon” with 12 days of extra production. “The loss of this warehouse won’t disrupt our bourbon production or bottling and will not impact our long-term business in any way.”

Initial indications suggest that the fire was started by lightning, though officials have not yet released a final determination.

In 1996, a fire tore through seven warehouses at the nearby Heaven Hill Distillery, making it the largest distillery fire in Kentucky history. Though lightning was suspected as the cause of that blaze also, investigators were never able to verify that with certainty and the official cause is classified as “undetermined.”

HENDERSON
Columbia Selects Kentucky Site for Midwest Distribution Facility

The Columbia Sportswear Company has announced plans to build a $40 million footwear distribution facility in the Four Star Regional Industrial Park, located in Webster and Henderson counties.

“The construction of this new facility underscores Columbia’s commitment to our growing footwear business and our continued dedication to customer service,” said Tim Boyle, Columbia’s president and chief executive officer. “We have identified the Midwest and East Coast as key regions where cold weather outdoor activities requiring inclement weather footwear are consistently popular, and where the company can continue to grow its active, outdoor and authentic brand image.”

The Oregon-based company will be the first occupant of the 944-acre industrial park, which is a joint effort on the part of Henderson, McLean, Union and Webster counties.

The new Kentucky facility will enable cost-effective, two-day product delivery to Columbia’s East Coast and Midwest customers, an area representing approximately 70 percent of Columbia’s footwear business. The company currently distributes footwear and apparel from its 829,000-square-foot facility in Portland, Oregon.

The Henderson site was one of several Midwest locations under consideration. The state of Kentucky approved $2 million in tax incentives this past spring in an effort to land the company.

The 428,000-square-foot facility is slated to open in 2005 with around 90 employees and is expected to increase that number to 200 within two years. Construction is scheduled to begin this fall.

HARLAN
Data Futures Acquires Food Service Software from Kyrus for $1 Million

Harlan-based Data Futures Inc. has finalized an agreement to purchase the assets of the LunchBox Software Division of South Carolina-based Kyrus Corporation for just over $1 million.

LunchBox software is used by schools for food service management and features point-of-sale software for the lunch line, utilizing touch screen technology. Students are identified via pin-pad readers, magnetic card readers or fingerprint imaging.

Data Futures has sold, implemented and supported the LunchBox line of products since 1997 and has been one of its top dealers for the past three years. The company has installed LunchBox in 111 of the 176 school districts in Kentucky as well as in a number of districts in Tennessee. With the acquisition, Data Futures now supports over 4,000 customers nationwide.

Data Futures plans to continue relationships with twelve LunchBox dealers, whose coverage areas blanket the country.

According to Data Futures President Bob Harris, the decision to acquire LunchBox was driven by a strategy centered on the company’s return to its software development roots after a period of representing other vendors’ software products.

“We certainly benefited from those relationships, and some of them continue even now, but by acquiring LunchBox, to which a significant portion of our revenue is attributable, we can more closely control Data Futures’ destiny. Because of our presence in the K-12 school district marketplace, we are certain that we can enhance the success and profitability of the LunchBox product.”

The acquisition is expected to increase Data Futures’ revenues by 100 percent.

Harris, along with CEO Charleen Combs, is a strong proponent of the advantages that a technology company brings to a rural area. Although Data Futures employees travel frequently to make sales and provide implementation services, the company makes extensive use of technology to conduct business on a daily basis. Use of the Internet – including email, interactive Web sites, electronic customer mailing lists, Web-based Help Desk services and Web-based training and marketing – allow Data Futures to transact business with customers and vendors worldwide, said Harris.

Last year, the company was honored with the “Excellence in Entrepreneurship Award” from Eastern Kentucky University’s College of Business and Technology.

LEXINGTON
Idea Festival Provides Platform for Innovative Products and Services

The ideaFestivalTM Institute is currently accepting proposals for participation in its next ideaFestival, scheduled to take place in and around Lexington next September.

The basis of the ideaFestival is to promote new ideas as a means of developing innovative new products and services.

The theme for the 2004 event is “The Mind’s Eye: Exploring Consciousness.” The festival will provide a network for the exploration of ideas ranging across myriad disciplines, including science, business, arts, technology, education, architecture, design and philosophy.

The 2002 ideaFestival, which was organized around the theme “A Matter of Time,” attracted more than 7,000 people.

Proposals for an exhibit, workshop, performance or other involvement in the upcoming event should be submitted by December 1, 2003 by logging onto www.ideafestival.com and completing the online form. For additional information, contact Kris Kimel at kkimel@ideafestival.com or 859.233.3502 ext. 223.

DANVILLE
Private Investors Foot the Bill for New Convention Center In Danville

A group of four physicians has purchased the former Lowe’s home improvement center in Danville with plans to convert it into a convention center to serve the surrounding area.

Dr. Anjum Bux, Dr. Madar Bux, Dr. Arthur Rivard and Dr. Thomas Serey expect to invest some $1 million in renovating the facility, which will provide more than 11,400 square feet of floor space and room to accommodate up to 1,000 people. The center will also house a cinema, restaurant and spa.

According to officials with the Danville Chamber of Commerce, the price tag to build a new facility of comparable size would cost nearly three times that amount, not counting the cost of land.

Though the convention center staff will be paid through a limited liability corporation formed by the physicians, the chamber of commerce will play a vital role in coordinating the center’s operations.

The group expects to be able to book around six major conventions each year. Figuring on attendance levels of approximately 300 at each convention, the community could see an economic boost of some $1.8 million each year.

The renovation is slated to be complete by the end of November and reservations are already being taken for bookings beginning December 1. Reservation information is available by calling (859) 583-9307.

FLORENCE
Celanese AG Selects Kentucky for Ticona's Regional Headquarters

Celanese AG has selected Florence as the new North American regional headquarters for Ticona, the company’s technical polymers unit. Ticona produces plastic polymers used in the automotive, medical and industrial markets and in major appliances. The company has been operating in Florence for approximately 19 years and currently employs around 130 workers.

The decision is part of the German-based company’s plan to consolidate its key functions. The company is closing its Summit, New Jersey facility and will move a portion of that plant’s operations to Florence.

The relocation is expected to begin with the transfer of some administrative personnel during 2003 and will be completed when product development and supporting functions are relocated, by the end of 2004.

The newly expanded Florence operation will consist of a 122,000-square-foot regional headquarters as well as a research and development facility. The project is expected to create 150 new jobs with an estimated investment of $18 million.

STATE
Kentucky Technology Initiative Receives National Recognition

In a national report comparing state-led technology initiatives, Kentucky’s connectkentucky partnership has been singled out as a “best practice” among initiatives to increase deployment and adoption of broadband technology. The State Broadband Index, published by TechNet, ranks the top 25 states based on the extent to which their initiatives spur or impede broadband deployment and demand.

connectkentucky is a public-private partnership between Kentucky’s Office of the New Economy, private industry, Kentucky’s universities and the Center for Information Technology Enterprise, Inc. (CITE). connectkentucky’s industry partners currently include: Alltel, Bank One, Belcan, Bellsouth, Cincinnati Bell, CSX, Humana, Insight Communications, Leapfrog, Nortel Networks, Qwest, Toyota, UPS, USEC, and Yum! Brands.

ELIZABETHTOWN
Extended Runway at Addington Will Accomodate Larger Aircraft

Plans are moving forward for the extension of the runway at Addington Field, in order to accommodate larger aircraft and, hopefully, more business.

Adding 1,000 feet to the existing 5,000-foot runway will provide enough length for 30-passenger jets and freight aircraft, both of which cannot presently land at Addington. Other enhancements will include an improved instrument-landing system, a new hangar and building renovations.

County officials are hoping the improvements may help lure commuter airlines back to the area. Both Comair and Jet Stream offered flights from Addington in late ’80s, but pulled out after only a short time.

The enhancements will definitely be a boon to the efforts of the Elizabethtown-Hardin County Industrial Foundation, according to foundation officials, who say that having a viable airport close to an industrial park is a major selling point.

ASHLAND
Advantage Valley Starts New Entrepreneur Program in Eastern KY

A program designed to boost entrepreneurial activity has been launched by Advantage Valley, a business partnership that is comprised of eight counties along the Kentucky/West Virginia/Ohio border near Ashland, Kentucky.

After a study revealed that the area’s entrepreneurial activity was 50 percent less than the national average, the members of Advantage Valley concluded that it was time to take a proactive approach to the problem. The result is the implementation of the “Entrepreneurial League System,” a program designed by Dr. Tom Lyon, director for research on entrepreneurship and enterprise development at the University of Louisville, and Dr. Gregg Lichetenstein.

The program groups area entrepreneurs into several categories – major, minor and rookie – and places them with others with similar business goals.

The program will also capitalize on the experience and knowledge available through the Ashland Alliance (the chamber of commerce group serving the city of Ashland along with Boyd and Greenup counties) and Ashland Community & Technical College’s Entrepreneur Center, which serves as an incubator for start-up companies.

The center has room to accommodate up to 12 start-ups, but is currently working with only seven.

CHAVIES
Chandler and Fletcher Square Off in October Gubernatorial Debate

Democrat Ben Chandler and Republican Ernie Fletcher, the two men who want to be Kentucky’s next governor, will give voters the opportunity to compare them side by side when they take part in a televised debate Wednesday, October 22 at 8:00 p.m. EDT.

The debate will be broadcast live from the studios of WKYT-TV in Lexington, where Bill Bryant of WKYT-TV’s “Kentucky Newsmakers” will be the moderator. WUKY radio has agreed to carry the debate live and is coordinating a statewide radio network with other NPR stations. Some local cable providers are also expected to offer the debate on delayed broadcast.

Chandler, Kentucky’s current attorney general, is hoping to maintain the Democrats’ control over the state’s highest office, while Fletcher, the U.S. representative from the 6th District, is seeking to become Kentucky’s first Republican governor in 36 years.

The debate is being sponsored by The Lane Report, Gray Television Stations, Greater Louisville Inc., the Greater Lexington Chamber of Commerce and the Partners for Kentucky’s Future.

LANCASTER
Garrard Hospital Closes; Care Center to Operate as Nursing Home

After months of searching for a solution to the financial difficulties plaguing Garrard County Memorial Hospital and Long Term Care Facility, the hospital’s board of directors voted on Aug. 20 to “temporarily suspend all operations.”

Earlier in the month, it was announced that Care Centers Management Inc. would purchase both the 15-bed hospital and the 100-bed nursing home for $1.45 million. That sale will proceed, but the Tennessee company plans to continue operating only the nursing facility, which will be renamed Christian Care Center of Lancaster.

In April, officials with the Garrard County hospital entered into a 90-day agreement with the Ephraim McDowell Health System, which operates a number of hospitals and medical facilities in and around Danville. The focus of the agreement was to “explore the possibility of merging” assets. However, Ephraim McDowell Health determined that a merger or purchase would not be in its interest.

Even prior to the Aug. 20 decision, the initial steps of closing the hospital were being taken: Doctors were not referring patients and ambulances were not taking patients to the emergency room.

Community leaders are particularly concerned about the loss of the hospital’s emergency room operations as well as those of the pharmacy, lab and radiology department. David Land, president of the Garrard County Chamber of Commerce has said the chamber plans to “play an active role” in finding a way to bring those services back to the area.

INDIANA
Cook Adds 400 Jobs to Meet Demand for New Medical Device

Cook Incorporated, a Bloomington medical research and product development firm, is hiring up to 400 new employees to help meet the demand of its Zenith AAA endovascular graft, an innovative new device that treats dangerous bulges in the abdominal aorta.

The Zenith graft, which has been the top seller in its category in Europe and Asia, was approved by the U.S. Food and Drug Administration in May.

The fabric graft is currently produced in Denmark and Australia by workers who hand-sew the item. However, those production lines will not be able to meet the demand expected by the U.S. market, according to a Cook spokesperson.

The company plans to produce items for U.S. distribution at its Bloomington headquarters and hopes to have met its staffing goals by the end of the year. Some, however, speculate that the company will encounter difficulty in landing reliable employees: The starting salary for hourly workers is only $8. Though the job does offer a variety of benefits – including medical/dental/optical, tuition reimbursement and flexible shifts – some Bloomington-area workers are saying it’s not enough to warrant their interest.

INDIANA
Medical Software Firm Expands, Adds 160 New High-Tech Positions

Zotec Solutions, a Carmel medical software company, has announced plans to expand its headquarters, adding approximately 160 new high-tech jobs with an average wage of $55,000.

In determining the direction of the company, Zotec officials considered a number of different locations, including Chicago and Kansas City, Kansas. In the end, however, Carmel’s facilities and sense of community won out, said T. Scott Law, Zotec’s chief financial officer.

To sweeten the deal, Indiana has offered $1 million in tax credits in addition to $109,000 in funding from the Skills Enhancement Fund and $50,000 from the Technology Enhancement Certification for Hoosiers program. Carmel’s tax abatement, worth $250,000 over seven years, brings the incentive package to $1.4 million.

Zotec’s electronic billing center product is utilized by more than 700 businesses and 2,500 physicians across the nation. The company currently employs a staff of 40.

“Indiana has been going through tough economic times for the past two years as our nation’s recession has pummled our state,” said Governor Frank O’Bannon, noting that Indiana has been particularly hard-hit due to its reliance on manufacturing jobs. “Attracting companies like Zotec changes that.”

Business Briefs

ASHLAND

• Cingular Wireless is expanding its Ashland call center operations with the addition of up to 250 new employees. The majority of the positions will be customer service representatives, with the remainder being supervisory positions. The expansion will bring Cingular’s Ashland workforce to approximately 900.
• Horizon Natural Resources (formerly AEI Resources) has announced plans to auction off its barge-loading facility on the Big Sandy River, near Kenova, West Virginia. The company also plans to sell contracts and permits related to the ownership and operation of the dock. Officials with Horizon, which filed for Chapter 11 bankruptcy protection last November, said the sale of the facility also known as Cyrus Dock will enable the company to improve its financial situation more quickly.
• The Ashland Alliance, which serves as the chamber of commerce for Boyd and Greenup counties, recently decided to take an unconventional approach to enticing companies to the area: It put a spec building in a Princess industrial park up for sale on e-Bay. The 45,000-square-foot building was built in the Paul Coffey Industrial Park in 2000 with hopes of attracting companies to the area. However, by the time facility was ready to market, the country was in the throes of an economic slump. In an interview published in the Ashland Daily Independent, Ashland Alliance President Jim Purgerson said, “We’ve done ads in national magazines, we’ve visited with consultants, we’ve tried just about everything. So we thought this was worth a shot.” Unfortunately, despite several bids, the auction ended short of $800,000, the lowest amount the Alliance would accept.

BARDSTOWN

• Hokumo America Corporation has opened a new plastic manufacturing molding facility in Bardstown, where it employs 10 workers. The company, which is a joint venture between Hokumo and Hitachi High Technologies, currently serves Wintech, a Winchester company, and will soon be providing products for JIDECO, Hitachi Automotive and OHI Automotive.

BARREN COUNTY

• Barren River State Resort Park suffered a significant amount of damage as the result of high winds and hail that battered the area last month. The severe weather left the marina with over $1 million in damages and felled more than 500 trees throughout the park, some of which were hundreds of years old. The state recently invested several million dollars to refurbish the marina. Fortunately, no injuries were incurred as a result of the storm.

BOWLING GREEN

• Draughons Junior College has moved to a larger facility to accommodate a significant increase in student numbers. Over the past several years, the college has seen its student population rise from around 175 to 450. In addition to providing more classroom space, the expansion will also allow for an upgraded medical lab and new equipment for the college’s e-commerce program.

CORBIN

• A federal investigation has found that the February fire at CTA Acoustics that killed seven people and injured 30 others was caused by flames from an oven door that was left open. Investigators say the initial explosion and fire took place on a production line that was partially closed and in the process of being cleaned. As a result, a large amount of dust, which is considered combustible material, was present, providing fuel for the flames. CTA, which produces insulation for the automobile industry, is now in the process of building a new $57 million plant in Knox County’s Southeast Regional Business Park.

CYNTHIANA

• Bourbon Bancshares has announced the execution of a definitive agreement to acquire Kentucky First Bancorp and its wholly-owned subsidiary, First Federal Savings Bank. The transaction, which has been approved by directors of both companies, calls for Kentucky First Bancorp stockholders to receive $23.25 per share of common stock, in cash. The transaction is expected to close in the fourth quarter of 2003.

EMINENCE

• Steel Technologies is adding 40,000 square feet to its Eminence plant to accommodate a new 1,500-ton steel press. Company officials say the new $6.5 million press will provide the plant, which produces precision flat-rolled steel, with greater flexibility and could help significantly boost plant revenue.

FRANKLIN

• Quebecor World Inc. has added 50 new jobs to its existing 500 workforce as the result of a recent expansion in its printing and bindery business. Quebecor ranks as the world’s largest commercial printer, with 160 plants in 17 countries producing magazines, inserts and books.
• The Franklin-Simpson Authority has purchased an additional 145 acres in order to allow for the expansion of the Sanders Interstate Industrial Park. The expansion of the industrial park, located at KY 100 East near I-65, will bring the total acreage to 435.

HEBRON

• L’Oreal USA is closing its distribution center in Hebron and will move the operations to northeastern Ohio, where a new state-of-the-art facility is being built in Streetsboro. Company officials say that many of the 60 Hebron workers will have the opportunity to relocate to the new facility; those who decline the relocation will be offered severance packages.

HENDERSON

• Sitex Corp., a uniform and textile rental service company, is proceeding with plans for a new $7 million plant to replace its current 42-year-old facility. The new 72,500-square-foot building is being built on nine acres in the Henderson Corporate Park, providing approximately 45 percent more space than the existing facility. The company anticipates a 60 percent increase in production capacity and expects to add more than 35 employees to its 125-member Henderson workforce over the next seven years. In addition to its Henderson headquarters and plant, Sitex operates distribution centers in Louisville; Jasper, Indiana; Nashville and Paducah.
• Escalating malpractice insurance costs have forced the Green Valley Baptist Association to shut the doors of its Free Medical Clinic. The clinic provided medical care to low-income patients without health insurance.
• After a year of unsuccessful attempts to sell the Ellis Park race track near Henderson, owner Churchill Downs is now focusing on making changes to improve its profitability. In an effort to make better use of its resources, Ellis is now closing an hour earlier and, depending on the season, will close altogether one or two days each week. In addition, a number of the track’s administrative functions are now being addressed through Churchill Down’s office in Louisville.

LAUREL COUNTY

• The latest expansion of Aisin Automotive Casting’s Laurel County facility, which is nearing completion, will result in around 150 new jobs. Aisin established itself in Laurel County in 1998 and since then has invested nearly $94 million to expand the facility. The company currently employs some 500 workers.

LEBANON

• US Chita Co., Ltd. has announced plans to establish a new plant in Lebanon’s Marion County Industrial Park, where it will manufacture coil springs and sheet metal springs for automotive suppliers and business partners. Representatives of US Chita, a subsidiary of Chita Kogyo Co. and Neturen USA, said the Lebanon site was selected based on its proximity to the company’s existing Midwest customers and the availability of the right facility. The company expects to begin operations in January with 36 employees.

LEXINGTON

• Keeneland has cataloged 4,294 horses for its September Yearling Sale. Last year, Keeneland sold 2,934 horses for $210,809,000, with an average price of $71,850. The September sale is recognized as the largest and most diverse yearling auction in the world.
• Exstream Software, Inc. has opened a new office in Oslo, Norway to handle the sales and support of the company’s Dialogue software in the Nordic and Baltic regions of Europe. Earlier this year, the Lexington-based company opened an office in Prague.

LOUISVILLE

• National Linen Service has closed its Louisville plant, which handled the rental of linens to restaurant, lodging and healthcare companies. The closing comes as a result of the decision by parent company National Service Industry in Atlanta to reconfigure its operations in an effort to cut costs. The Louisville plant employed 166 workers.
• FSA Group, an association and event management firm, has been sold to Lebhar-Friedman Inc., an independent New York publishing company. FSA will function as a division of Lebhar-Friedman and will remain in Louisville, where President Joe Broom will remain in that position. Broom said the acquisition could provide the means to broaden FSA’s scope “beyond the culinary and hospitality industries into other areas of opportunity.”
• The Federal Reserve Bank of St. Louis has announced that by the end of 2004, it will no longer operate cash-processing services in Louisville and Little Rock, Arkansas. The St. Louis Fed announced in February that check processing at its Little Rock and Louisville branches would move to Memphis and Cincinnati, respectively, by the end of 2004. “With revenues from check processing leaving our branches in Little Rock and Louisville, that leaves only cash processing to support those branches, including overhead functions like security, human resources and others,” said LeGrande Rives, St. Louis Fed first vice president. “That’s not an efficient way to run things, so we need to make some changes.” The bank’s Little Rock and Louisville branches, already scheduled to lose 70 to 75 check services jobs each, will eliminate close to 60 positions each with the new changes. The net effect of the new changes is expected to save approximately $3 million annual from changes in cash operations alone.
• Papa John’s International has made its first entry into the Asian market with the opening of two franchised operations in Seoul, South Korea. The new stores represent the company’s 12th international market.
• Thomas Industries has acquired Aldax AB of Stockholm, Sweden, a company that has served as the distributor for Thomas’ pumps and compressors in Scandinavia for the past eight years. Terms of the acquisition were not disclosed. In addition to designing and manufacturing pumps and compressors, Thomas owns a 32 percent interest in Genlyte Thomas Group LLC, which produces lighting fixtures and controls.
• Concentra, a Texas-based company that specializes in the treatment of work-related injuries, has opened a new facility in Airside Commerce Center near the Louisville airport.
• Bellarmine University and The Kentucky Community and Technical College System have signed an agreement that permits students graduating from any KCTCS associate degree respiratory therapy program to apply to Bellarmine University with junior standing. Bellarmine offers the only baccalaureate-level respiratory care program in the state.
• Advanced Imaging Concepts, Inc. (AIC), a Louisville company that has become a leading provider of document imaging, scanning and management software for healthcare providers, has been acquired by Allscripts Healthcare Solutions for $18 million in cash and assumption of stock options. Chicago-based Allscripts is a leading provider of clinical software and information solutions for physicians. The two companies have worked together since 2002 as part of a partnership offering digital imaging solutions.
• The Lord & Taylor store at Mall St. Matthews in Louisville is one of 32 locations slated to close. According to officials with May Department Stores Co., the owner of Lord & Taylor, the Louisville store was one of a number of stores that were under-performing.

MARION

• A Federal Aviation Administration grant of $1.04 million is being used to build a 4,400-foot paved runway for the Marion-Crittenden County Airport. The airport has been operating since the mid-’90s with only a turf runway. While the new runway will not be long enough for commercial aircraft, the addition will enable corporate planes and other small aircraft to land there and should provide a boost for economic development.

MAYSVILLE

• The Crystal Creative Products manufacturing plant in Maysville is being closed as part the company plan to reduce its cost structure. Crystal Creative is owned by Cleo, a Memphis corporation that bought the Maysville facility last year, along with Crystal’s plant in Middletown, Ohio and a distribution center in Hamilton, Ohio. At that time, Crystal employed approximately 300 workers between the three locations.

MOREHEAD

• The Citizens Bank of Morehead has purchased the Integra N.A. Bank (formerly Farmers Bank) in nearby Owingsville. The bank will now operate as Farmers Banking Center of the Citizens Bank. With the acquisition, the bank now has four full-service locations and combined assets of approximately $8 million dollars.

OWENSBORO

• Field Packing Company has added nearly 225 new positions over the last 15 months, making it the city’s third-largest private employer behind River Valley Behavioral Health and U.S. Bank Home Mortgage. The plant saw employment grow from 390 to 550 in 2002 when the operations of Fischer Packing Co. in Louisville were transferred to the Field plant in Owensboro. More recently, Field’s parent company, Specialty Foods Group, made the decision to close its plant in Bloomfield, Connecticut and move its operations to Owensboro. The plant now employs 575 workers who produce items under the Field, Kentucky Legend, Fischer, Scott Petersen, Mickelberry’s, and Mosey’s labels, as well as some private label meats.

PARIS

• Long & McDonald Inc. has changed the company name to Kentucky Classic Homes of the Bluegrass LLC to better reflect its emphasis in homebuilding. Long & McDonald has operated in the Paris area since 1980, handling both residential construction and property management.

PIKEVILLE

• A plan to construct a bridge in the Breaks Interstate Park is eliciting opposition from naturalists who are concerned that the $4.5 million project will open the door to commercial development in park, which straddles the Kentucky-Virginia line. Proponents of the project say the bridge would allow access to the Kentucky portion of the park, which receives few visitors due to limited accessibility. The Virginia side of the park features a lodge, cottages, campground and pool as well as hiking and biking trails.

UNION COUNTY

• Methodist Hospital Union County is putting the finishing touches on a $2.8 million addition to its facility that will house the pharmacy, physical therapy, lab and radiology departments.  The 13,700-square-foot addition provides the hospital with approximately 50 percent more space. The new wing is expected to open next month.

WURTLAND

• Plastopan has moved its Kentucky operations from Ashland to Wurtland’s River Port Industrial Park, where it now occupies the former Cedar American building. California-based Plastopan, which produces plastic storage containers for home, office and industrial use, opened its Ashland facility in 1999 to serve as the East Coast distribution center for the company. Recent growth resulted in the need for larger quarters. The company plans to invest approximately $1.5 million into the Wurtland facility over the next year and could add up to 20 new jobs in the coming years.

STATE

• More than 200 participants and 90 exhibitors are expected at the state’s annual gathering of human resource professionals, slated for September 23-24 in Louisville. Hosted by the Kentucky Chamber of Commerce and the Kentucky Society for Human Resource Management, the event is designed to provide human resource professionals with strategies that will equip attendees to meet the challenges of today’s workplace. For more information, visit www.kychamber.com/shrm.
• Despite a $75.7 million General Fund revenue shortfall, the Commonwealth closed the books on the fiscal year ending June 30, 2003 with a slightly larger ending balance than was budgeted. The state ended the fiscal year with $162.5 million while the enacted budget called for an ending balance of $138.7 million, which is budgeted to be spent in Fiscal Year 2004.  As a result, the Commonwealth will be able to deposit $23.8 million to the Budget Reserve Trust Fund, the “rainy day account,” as a buffer against future potential revenue shortfalls and unexpected necessary expenses such as those related to natural disasters.
• The Kentucky state park system has officially opened new golf courses at Grayson Lake State Park in Grayson, Mineral Mound State Park in Eddyville, Pennyrile Forest State Resort Park near Dawson Springs, and Dale Hollow Lake State Resort Park near Burkesville. State officials hope the new courses will help spur tourism in much the same way as the Wasioto Winds course at Pine Mountain State Resort has done. That course, located in Bell County, helped boost tourism spending by $1.6 million within the first year of operation.
• A new online service of the Cabinet for Workforce Development is providing Kentuckians with the opportunity to register for jobs, apply for employment and training services, complete a job search and develop a resume through the Employ Kentucky system, all from any Internet-connected computer. Employ Kentucky also doubles as case-management technology used by the cabinet’s local offices and partner agencies to connect employers and job seekers, connect individuals to a wide range of employment and training services, make referrals to job interviews, make electronic referrals to other agencies and meet federal reporting requirements. Other online services available through this Web site address include employee recruitment, a workforce tool kit and payment of unemployment insurances taxes for employers, plus virtual workshops, a local office locator, a career kit and career exploration tools for job seekers. The Employ Kentucky features can be accessed by going to www.workforce.ky.gov.
• The Kentucky Hospital Association has formed the Kentucky Hospital Insurance Company (KHIC) as a Kentucky-based captive insurer/risk retention group. The company will provide Kentucky hospitals with a cost-effective vehicle for general liability/professional malpractice insurance coverage. Coverage Options Associates, a subsidiary of the Kentucky Hospital Association, is the captive manager and will provide the underwriting, claims and risk management services. Currently, there are 22 hospitals participating in the KHIC, which offers primary professional/general liability limits of $1/$3 million with optional umbrella limits up to $10 million.

INDIANA

• Indiana’s 10 riverboat casinos have seen revenues surge to a record $2.1 billion in the year since state legislators legalized dockside gambling. According to data from the Indiana Gaming Commission, the casinos generated $670.6 million in tax revenue for state and local governments, up from $157.3 million the previous year.

OHIO

• American Standard Inc. has cut 150 jobs at its plant in Tiffin, Ohio, approximately 40 miles southeast of Toledo. Company officials say the cutbacks, which represent 23 percent of the company’s 650 union workers, are necessary due to a reduced demand for the plant’s ceramic sink and toilet fixtures. Earlier this year, the company cut 50 jobs at its facility in Hager Hill, Kentucky, saying it could operating more efficiently by moving the positions to Mexico.
• Cleveland-based office supply company OfficeMax Inc. has been acquired by Boise Cascade Corp. for $1.2 billion in cash and stock. Since its inception 15 years ago, OfficeMax has grown to encompass around 1,000 stores across the U.S., Canada, Puerto Rico, the Virgin Islands and Mexico. Boise Cascade, which has its headquarters in Itasca, Illinois, primarily serves larger corporations and institutions.

TENNESSEE

• Allied Systems, which provides transportation services for Saturn automobiles, has closed its facility in Spring Hill, Tennessee. The shutdown leaves more than 120 workers without a job. The company, which is a subsidiary of Georgia-based Allied Holdings, Inc., closed its facility in nearby Smyrna, Tennessee late last year, impacting 42 employees.
• Former University of Louis-ville President John Shumaker has resigned from his position as president of the University of Tennessee amidst accusations that he was misusing university services and funds. Shumaker left Louisville in June, 2002 to accept the position at UT and an annual salary of $733,550 a year.
• Nashville-based Gaylord Entertainment Company has agreed to acquire ResortQuest International, the nation’s largest vacation rental property management company in a $177 million deal. ResortQuest International is a leader in the vacation rental property management industry, with an approximate four percent market share of an estimated $10 billion market in the United States. “This acquisition will transform Gaylord Entertainment into a multi-product hospitality company that can offer a range of accommodations to convention, business and leisure travelers,” said Colin Reed, president and chief executive officer of Gaylord Entertainment. ResortQuest will remain as a separate brand and will continue to be led by its existing management team in Destin, Florida, home to ResortQuest’s fastest growing and most profitable region.
  
  

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