In Lexington, business and political leaders have always seemed to want economic development. However, they’ve not always agreed on how to go about making the area more business-friendly. That is, not until now.

At a January 14 news conference held in Lexington’s newly-remodeled Civic Center, leaders from around the city joined Gov. Ernie Fletcher to announce that the old disjointed days of the city’s economic development are over.

“As of January 10th, the Greater Lexington Chamber of Commerce, Lexington United and the Partnership for Workforce Development are now consolidated,” said Darby Turner, chairman of the Chamber and head of the local offices of Greenebaum, Doll & McDonald.

“Since 1915, the Chamber has been looking out for business interests here in Lexington,” Turner said. “Lexington United was founded in 1982 by people who wanted to market the city. In 1994 or 1995, the Partnership for Workforce Development was founded to help cultivate the kind of workers that could bring in new employers and economic prosperity to this area.”

The newly combined organization is named Commerce Lexington Inc. It represents the fourth area economic development agency in Kentucky that has resulted from the merger of several entities. The others are in Bowling Green, Northern Kentucky and Louisville, where Greater Louisville Inc. has been a driving force behind favorable economic and political change.

The fundraising this year for the Chamber, to meet the costs of the combined economic development entities, has been enthusiastic, Turner noted. “The goal of the Chamber was $250,000,” he said. “But we’ve seen $286,000 raised already in the winter program. Businesses here have sent us a clear message. They want to step up economic development activities.”

The Commerce Lexington vice chair for business development, attorney Bill Lear, managing partner of Stoll, Keenon & Park, views the merger of economic development entities as being the culmination of a string of successes. “Now we’ve taken things to a higher level,” Lear said. “Businesses around here are excited. To date, more than 100 businesses have contributed $3 million to accomplish this. In the last 10 days, as word got out about this merger, more than $500,000 has been pledged. That’s the kind of excitement generated by this united effort.

According to Turner, Commerce Lexington was created as an outgrowth of the “One Team: One Vision” economic development campaign in Lexington that resulted in almost $3 million being raised for workforce development, new company recruitment and promotion of corporate start-ups in Central Kentucky.

Banking executive Luther Deaton, CEO of the Central Bank and Trust Company, will chair Commerce Lexington’s board of directors. The board will include Lexington Mayor Teresa Ann Isaac and Vice Mayor Mike Scanlon, who is also CEO of Thomas & King, a food industry company that is known for being the largest franchisee of Applebee’s restaurants.

“The idea of joining together Lexington’s economic development entities is something we wanted to accelerate discussion on when I first came into office,” Isaac said. “This way, we combine the expertise, resources and institutional knowledge that all three groups bring to the table. This shows the national and international communities our city’s positive attitude toward business.”

Lexington’s vice mayor agreed that the merger of the economic development groups was a good move. “The most important thing in a community is to create good jobs,” Scanlon said. “I promise I’ll take the news of this merger back to the Council as a mandate to promote business in Lexington.”

Speaking the day after his State of the Commonwealth speech, Gov. Fletcher praised the local leadership for streamlining the area’s economic development efforts. “‘These are the kinds of efforts we need to see across the state,” Fletcher said. “Our central theme is economic opportunity. Our central focus is to grow the economy in Kentucky. In some places in Kentucky there are two area economic development agencies within 10 miles of one another.”

The governor noted that this is no longer the problem in Lexington. “This is a great state,” he said. “Lexington is a great community. We know we have the right places for business.”

In what was perhaps a precursory statement to the upcoming General Assembly session, Fletcher talked about what he called “the need to change Kentucky’s tax system.” His goal is to make the tax system less stressful for working Kentuckians and as a tool to make the state more business-friendly.

“It won’t be easy,” he acknowledged. “There are lots of special interests that will step up to keep things the way they are.”

As chair of the newly merged organization, Deaton expressed enthusiasm. “Today we stand before you united as one team,” he said. “We’ve merged as one team, one vision, one voice. We combine the best resources of government and private enterprise. We’ve seen the developments in Bowling Green, Louisville and Northern Kentucky, where they’ve done this. To be a success here, it will take the efforts of every member and every citizen.”

A major accomplishment in the creation of Commerce Lexington, Deaton said, has been the defeat of the “us versus them” mindset. “We need to forget the ‘this county is better than the next county’ mentality,” he noted. “We will work together. What we have here is one of the best places to raise a family. Finally, we’re speaking with one voice. People are going to get on the wagon.”

Commerce Lexington, according to the organization’s Web site, defines itself as being “Greater Lexington’s main business organization whose goal is to promote economic development, job creation, and overall growth in Lexington and its neighboring communities.” The group’s CEO is Bob Quick, who was also head of the old Greater Lexington Chamber of Commerce.

“This is a great opportunity for our community,” Quick said. “We’re energized. Lexington and its neighbors have a lifestyle and resources that businesses and business leaders want. Now we will all pull together to tell them this good news.”

Terry Burkhart, who has served as president of Lexington United, will also work with the new group, performing many of the same duties. No staff jobs have been eliminated. Being that all three groups already use office space in the same building, the physical logistics of the merger have gone smoothly, Turner said.

In discussing Commerce Lexington, Burkhart discussed a plan of action the group will take to attract new business. Along with providing a comprehensive approach to regional economic development, the group will promote business expansion, entrepreneurial activity and business recruitment. “We will be aggressive and we will be effective,” he said.

Burkhart mentioned some of the rankings Lexington has received from national publications and organizations:

• Forbes’ Best Places for Business and Careers, 2003 – 14th place
• Expansion Management Magazine’s Best Places to Locate a Company, 2003 – 7th place
• Richard Florida’s Top Ten Most Creative Small Cities in his book, “The Rise of the Creative Class” – 9th place
• Entrepreneur magazine’s Best Cities for Entrepreneurs (Top Midsize Cities in the Midwest), 2003 – 8th place
• Forbes’ Best Places in Terms of Business Costs, 2003 – 4th place
• Expansion Management Magazine’s America’s 50 Hottest Cities, 2002 – 23rd place
• 8th Most Highly Educated City in the Nation – U. S. Census, 2000
• Ladies’ Home Journal’s Best Cities for Women, 2001 – 13th place
• Business Development Outlook’s Places with the Highest Quality of Life, 2000, 22nd place
• Places Rated Almanac’s Access to Health Care in North America, 2000 – 8th place

“With these kinds of credentials and honors, it’s evident that we have a lot to offer new and expanded businesses in Central Kentucky. Commerce Lexington is already hard at work, hoping to make this city even more prosperous and business-friendly,” Burkhart said.

Claude Hammond is a staff writer for The Lane Report.
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