Lexington starting to see the benefits of urban redevelopment

January 25, 2015

krogerThe new Euclid Avenue Kroger. Photo by Mark Cornelison

 

It was a great week for “infill and redevelopment,” the popular Lexington catchphrase that is easier to say than do.

First, The New York Times made my little neighborhood look positively hip.

A Travel section story told how Walker Properties and other entrepreneurs are transforming National Avenue, a once-seedy collection of industrial buildings, into “the kind of walkable, shoppable district that is not common in a Southern city of this size.”

The Times made special note of National Provisions, a sophisticated food and drink complex that Lexington native Andrea Sims and her French husband, Krim Boughalem, created in a vacant soft-drink bottling plant.

Lexington often gets press for basketball, horses and bourbon. (And donuts; last year, the Times featured another of my neighborhood’s culinary treasures, Spalding’s Bakery.) But seeing the national media hold up this city as a model for urban revitalization may be a first.

The news got even better Thursday, when Kroger opened its new Euclid Avenue store. It is the best-looking Kroger I have ever seen, and a departure from the suburban big-box model that dominates the grocery industry.

Tailored to its increasingly urban setting, the building welcomes pedestrians and cyclists as well as people arriving in cars. With limited space for a parking lot, Kroger hid more parking on the roof, easily accessible via escalators and elevators.

Although it is almost three times larger than the suburban-style box it replaced, the building minimizes its mass and respects the street. There is a lot of glass, chrome and natural light. The walls have murals by local artists. The extensive grocery selection includes two locally owned restaurant food carts, another first for Kroger.

Neither National Avenue nor the new Kroger happened by accident. They were the result of good planning, hard work, community engagement and leadership by city officials and businesspeople.

Much like the owners of the Bread Box on West Sixth Street, developer Greg Walker has a community-focused vision for National Avenue, and he has found local business and non-profit tenants who share that vision.

Walker worked with city planners on mixed-use zoning that emulates the way cities used to be. You know, before mid-20th century planning philosophies sucked the life out of cities, making them better places for cars than people.

National Avenue’s success also has been made possible by renewal of the nearby Mentelle, Kenwick and Bell Court neighborhoods. They had fallen out of fashion and into decline after Lexington’s suburban building boom began in the 1950s.

Recently, though, these neighborhoods have become hot properties. They’re likely to get hotter, especially since Niche.com, a national online ranking company, last week named Ashland Elementary as the best public primary school in Kentucky.

People once again appreciate these neighborhoods’ walkability and close proximity to downtown, the style and craftsmanship of their old houses and the sociability of front porches, small parks and neighborhood stores and restaurants.

The new Kroger responds well to its neighborhood, which has been getting denser both because of the popularity of in-town living and growth of the nearby University of Kentucky campus.

But without good leadership and community engagement, the new store wouldn’t have turned out nearly as well.

When the grocer first announced plans to replace the Euclid Avenue store, nearby residents pushed back against a “Fort Kroger” big box. Mayor Jim Gray made it clear that a well-designed, urban-style store would be required. As Kroger spokesman Tim McGurk put it, “Mayor Gray gave us good advice throughout the process.”

Gray put Kroger in touch with Lexington architect Graham Pohl, who worked with the company to significantly improve the new store’s design. The effort has paid off, both for the city and for Kroger.

“Based on customer reaction, I can see us repeating” such things as the murals and food carts at other Kroger stores, McGurk said. “It really puts a sense of the local community in the store.”

Lexington leaders like to talk about infill and redevelopment because they see it as the best way to preserve precious farmland. But it is more than that.

Yes, infill and redevelopment can be harder, more complicated and more expensive than green-field suburban development. It often requires creative zoning and financing. It takes leadership and risk. It demands a commitment to excellence, as well as communication with existing neighborhood residents who may fear increasing population density, traffic or simply change.

But these two examples, and others in places such as North Limestone Street, Davis Bottom and Alexandria Drive, show that infill and redevelopment is not just the right thing to do. It can be the best thing to do.


Gray is right to focus on Town Branch Commons, old courthouse

January 20, 2015

141231Downtown0070Finding a way to renovate the old Fayette County Courthouse, which has been shuttered since 2012, is one of Mayor Jim Gray’s priorities for 2015. Photo by Tom Eblen 

 

Mayor Jim Gray set the right tone in the first State of the City Address of his second term. After four years of getting Lexington’s fiscal house in order, he said, it is time to make critical investments for the future.

Gray’s strength as mayor has been his ability to tackle previously ignored problems while at the same time articulating an ambitious but sensible vision for Lexington’s future.

The mayor began by ticking off accomplishments, including public safety investments and tens of millions of dollars in cost-savings from restructuring city employee health care and pensions and “value engineering” sewer improvements.

But the heart of his speech was a call to action on two downtown projects that should be high on Lexington’s priority list. He also hinted at a third project, politically sensitive but long overdue.

The first project Gray highlighted is restoring and repurposing the old Fayette County Courthouse, a 115-year-old limestone landmark in the city’s historic center.

When the courts moved to new buildings down the street a dozen years ago, the abused and neglected old courthouse became home to the Lexington History Museum. It was shuttered in 2012 because of lead paint contamination, then officials discovered structural problems.

It is an embarrassment to Lexington to have its most iconic public building uninhabitable. Demolition would be a tragedy. It needs to be restored, but for what?

“The courthouse needs to be imaginative, innovative and functional … a gravitational pull that will attract citizens and visitors,” Gray said.

The mayor wasn’t more specific, but he said an assessment report would be released soon and public meetings would be scheduled in February and March. Gray said he would include funding for the project’s first phase in the budget he submits to the Urban County Council in April.

The best idea I have heard for the old courthouse is to make it Lexington’s version of Chicago’s Water Tower or Boston’s Faneuil Hall — a gathering place for locals and the spot where tourists start their visit to Lexington.

Such a plan could bring back a smaller history museum, as well as rotating exhibits to entice people to visit attractions such as the UK Art Museum and the Headley-Whitney Museum. Distillery and horse farm tours could leave from there, bringing visitors back to the bars and restaurants around Cheapside.

The second project Gray touted — and promised initial funding for in his budget — is Town Branch Commons. It is a brilliant plan to create a linear chain of small parks downtown along the historic path of Town Branch Creek.

Since the creek was buried nearly a century ago, and the railroad tracks beside it pulled up in the 1960s, much of the spine of downtown between Main and Vine streets has been a concrete jungle of parking lots and wasted space.

Turning some of that space into small parks should make downtown more inviting and attract valuable commercial development. The plan will require private as well as public money. It would be built in phases, likely starting with the city-owned parking lot behind the Kentucky Theatre.

“We also need to make plans for the Government Center, a historic building that is costing us far too much to operate and repairs,” Gray said.

The late Foster Pettit, the first mayor of Lexington’s merged city-county government, once told me that moving city offices into the old Lafayette Hotel in the 1970s was always viewed as a temporary solution.

For at least a decade, officials have mused about selling the old hotel to a developer who could restore its beautiful first and second floors and turn the floors above them into apartments or condos.

Such a deal would create more downtown residents, as well as help pay for more cost-efficient city offices elsewhere. One possibility for those offices would be a new building atop the city-owned Transit Center garage.

The biggest misstep of Gray’s first term was his aborted renovation of Rupp Arena and Lexington Center. It failed largely because University of Kentucky President Eli Capilouto had other priorities, and Gray ignored the obvious signals.

Gray didn’t mention Rupp in Tuesday’s speech, but he went out of his way to offer an olive branch to Capilouto. He sat beside him at lunch, mentioned him twice in his speech and praised UK as “our cultural, intellectual and economic anchor and engine.”

In his first term, Gray set an ambitious course for a better Lexington. The test of the next four years will be his ability to bring people together to make it happen.


Robert F. Kennedy Jr.: clean environment is good economic policy.

January 17, 2015

KennedyRobert F. Kennedy Jr. speaks at Transylvania. Photo by Mark Mahan.

 

It was a breath of fresh air, especially after an election in which Kentucky politicians of both parties competed to see who could be the biggest sock puppet for the coal industry.

Robert F. Kennedy Jr. spoke at Transylvania University on Wednesday about “Green Capitalism: Why Environmental Policy Equals Good Business Policy.”

Kennedy, 61, son of the slain presidential candidate and nephew of the slain president, is an accomplished environmental lawyer, anti-pollution activist and partner in a renewable-energy investment firm.

Kennedys are like Bushes; most people either love them or hate them on principle, without actually listening to what they say. But this talk was worth listening to, because Kennedy clearly explained our nation’s biggest problem, what could be done to solve it and why that isn’t happening.

Surprisingly, his message had as much appeal for libertarians as liberals. Conservatives could find a lot to agree with, too, if they care about conserving anything besides the status quo.

Kennedy’s main point was that Americans don’t have to choose between a clean environment and a strong economy. In fact, the only way to have a strong economy in the long run is to take care of our nation’s air, water and land.

The best way to do that, he said, is a combination of true democracy and free-market capitalism. Trouble is, polluters have used their money and influence to corrupt the political process and distort free markets.

“You show me a polluter, and I’ll show you a subsidy,” he said. “I’ll show you a fat cat using political clout to escape the discipline of the free market and forcing the public to pay his production costs. That’s all pollution is.”

Kennedy told how he started his environmental career working for commercial fishermen on the Hudson River in New York. Their industry was devastated by General Electric, which for three decades dumped more than a million pounds of cancer-causing PCBs into the Hudson.

“They saw their fishery destroyed, not because they had a bad business model, but because somebody had better lobbyists than they did,” he said.

“One of the things I learned from them was this idea that we’re not protecting the environment so much for the sake of the fishes and the birds; we’re protecting it for our own sake,” he said. “Nature is the infrastructure of our communities.”

Kennedy said we are now seeing a struggle between rich, old-energy industries that create a lot of pollution — coal, oil, gas and nuclear — and new, renewable-energy technologies that are cleaner and increasingly cheaper.

Pollution destroys our natural infrastructure and creates huge public health costs, both in terms of dollars and lives. “It’s a way of loading the costs of our generation’s prosperity onto the backs of our children,” he said.

Fossil fuel industries also receive more than $1 trillion in annual taxpayer subsidies, ranging from direct payments and tax breaks to the huge military presence in the Middle East to secure oil-production assets. Meanwhile, these industries lobby to eliminate the small subsidies offered to encourage alternatives.

If a truly free market forced the oil industry to internalize its costs, gasoline would sell for $12 to $15 a gallon. “You’re already paying that,” he said. “You’re just paying it from a different pocket.”

Kennedy argued for more market-based systems, such as cap-and-trade, to account for the hidden costs of fossil fuels. That would expose their inefficiencies and waste and level the playing field for solar, wind and geothermal.

“You need to devise rules for a marketplace that allows actors in the marketplace to make money by doing good things for the public, rather than forcing them to make money by doing bad things to the public,” he said.

Kennedy likened it to the abolition of slavery in Britain and the United States in the 19th century, a moral decision that helped spark an explosion of innovation in labor-saving technology and wealth that we now know as the Industrial Revolution.

The biggest barrier to renewable energy replacing fossil fuels is the lack of a modern national electric grid, he said. Government investment in that grid would create opportunities for entrepreneurs to flourish, just as previous investments in the Internet, interstate highways, railroads and canals did.

A good way to start would be laws to allow homeowners and businesses to profit, rather than just break even, from electricity they generate with solar panels and wind turbines and sell to utilities.

“It will turn every American into an energy entrepreneur, every home into a power plant, and power this country based on American imagination and effort and innovation,” he predicted.

It also would be good for national security. “A terrorist can blow up one power plant,” Kennedy said, “but he would have a hard time blowing up a million homes.”

Replacing fossil fuels with renewable energy will be complicated. “But it’s not as complicated as going to war in Iraq,” Kennedy said. “It’s something that we can do. We just need the political will.”


Ark park fiasco a wakeup call to aim higher with taxpayer incentives

January 11, 2015

ark3

 

The dispute over tax breaks for a proposed Noah’s Ark theme park is ridiculous on many levels, but it offers a good economic development lesson for Kentucky politicians and taxpayers.

In case you haven’t been following the story, the nonprofit organization Answers in Genesis, which opened the Creation Museum in Boone County in 2007, is trying to build the Ark Encounter attraction in nearby Grant County.

AIG believes in a literal interpretation of the Bible’s creation story that is contrary to both scientific evidence and the views of most Christians. Among other things, AIG’s followers believe the world is only 6,000 years old, and that humans and dinosaurs once lived side-by-side, just as in The Flintstones cartoons.

The Creation Museum drew a lot of tourists — believers and scoffers alike — so AIG announced plans in 2010 to build a big theme park around a 500-foot-long, seven-story-high version of Noah’s Ark.

This time, though, AIG wanted taxpayer subsidies. And it got a lot. But it wants more, even as the project has been scaled back because of fundraising shortfalls.

The city of Williamstown agreed to a 75 percent break on property taxes for 30 years and a $62 million bond issue. The Grant County Industrial Development Authority gave the park $200,000 plus 100 acres of land at a reduced price. The state has promised $11 million in road improvements for the park’s benefit.

The state also agreed to provide $18 million in tourism tax credits, but it withdrew the offer after it became clear that Ark Encounter jobs would go only to people who pass the group’s religious litmus test. You would think state officials could have seen that coming.

Kentucky politicians should never have agreed to these incentives in the first place. And you have to wonder: Would they have done the same for a Wiccan World theme park? Buddha Land? Six Flags over Islam?

AIG has threatened to sue, and it has rented billboards around Kentucky and in New York’s Times Square to wage a holy war of words against what founder Ken Ham calls “secularists” and “intolerant liberal friends” who object to his ministry feeding at the public trough.

The sad thing is, AIG might have a case. It doesn’t help that in 2013, the General Assembly foolishly passed a conservative feel-good law that protects religious groups from vague “burdens” imposed by state government.

So don’t be surprised if AIG — a tax-exempt group with more than $19 million in annual revenue and enough extra cash to rent a billboard in Times Square — argues in court that it is “burdened” by being denied millions more in taxpayer subsidies.

The ark park mess is a symptom of a bigger problem with Kentucky’s economic development strategy. Despite recent reforms, officials aim too low too often. Rather than focusing on high-paying jobs that will move Kentucky forward, they are often happy to subsidize jobs that don’t even pay a living wage.

It is an unfortunate reality that state and local governments must sometimes throw money at corporations to bring jobs to their areas. It has become quite a racket, as companies play cities and states off one another, demanding more and more concessions that shift the burden of public services to everybody else.

Sometimes, such as with the Toyota plant in Georgetown, incentives are good investments. But Kentucky has shelled out money for far more clunkers.

The ark park is a great example of a clunker. It would create mostly low-wage service jobs while reinforcing the stereotype of Kentucky as a state of ignorant people hostile to science.

Think about it this way: For every low-wage job the ark park would create, how many high-wage jobs would be lost because science and technology companies simply write off Kentucky?

But economic development incentives are only part of the problem. Kentucky’s antiquated tax code no longer grows with the economy, and it is riddled with special-interest loopholes that leave far too little public money to meet today’s needs, much less make smart investments for the future.

The ark park fiasco should be a wake-up call for Kentucky politicians to raise their standards.

This state will never become prosperous by spending public money to create low-wage jobs and reinforce negative stereotypes. Prosperity will come only through strategic, long-term investments in high-wage jobs, education, infrastructure, a healthy population, a cleaner environment and a better quality of life.

Everybody say amen.


Urban-rural divide will challenge Kentucky economy in 2015

January 5, 2015

141231Downtown0113b21C Museum Hotel is expected to open in late 2015 after renovation is completed on the century-old First National Building, right. But the old Fayette County Courthouse, left, will be one of Lexington’s biggest redevelopment challenges. Photo by Tom Eblen 

 

As a recent economic study notes, Kentucky’s economy is really nine very different regional economies that reflect a national trend: urban areas are doing well, but rural areas are struggling.

Lexington and Louisville together accounted for 45 percent of the state’s job growth over the past five years, according to a study by economist Paul Coomes for the Kentucky Chamber of Commerce.

That means Central Kentucky this year should continue to capitalize on several sources of momentum, including manufacturing growth, entrepreneurship and urban redevelopment, as well as Lexington’s growing reputation as a good place to live, work and visit.

The biggest manufacturing news this year is likely to be Toyota’s new Lexus assembly line. When the $531 million Georgetown plant expansion is finished late this year, 600 additional workers will make 50,000 Lexus 350 ES cars a year, in addition to the current Camrys, Avalons and Venzas.

But as manufacturing becomes more automated, the demand for higher-skilled workers increases. “Having a skilled work force is going to be a huge factor” in future growth, said Bob Quick, president of Commerce Lexington.

Central Kentucky continues to see an influx of workers and professionals from elsewhere. That is helping to fuel not only manufacturing, but business and professional services and entrepreneurial efforts, Quick said.

That also is good news for Lexington’s urban redevelopment initiatives, which finally seem to be hitting their stride. While the public’s attention was focused in recent years on the long-stalled CentrePointe project, a lot of good things were happening.

Victorian Square was renovated and rebranded as The Square, breathing new life into the downtown retail-restaurant development. This year will be a test of whether that concept can succeed.

A lot of small-scale urban redevelopment has been happening in places such as the Jefferson Street restaurant corridor, whose latest addition is the Apiary; the East End; National Avenue; South Limestone and North Limestone areas.

This could be a big year for the Newtown Pike corridor between downtown and the new Bluegrass Community and Technical College campus. Developers of Thistle Station, a proposed 16-story apartment building, hope to begin construction this year and open in fall 2016.

While the Rupp Arena and convention center reconstruction have been put on hold, city officials continue to move forward on Town Branch Commons, an innovative plan to create a linear park downtown that could attract new development.

“You’re seeing a deeper bench for the strategy of downtown,” Quick said. “Even when the Rupp piece didn’t work, we didn’t lose our downtown vision.”

Late this year, the 21C Museum Hotel should open after an extensive renovation of Lexington’s first skyscraper, the century-old First National Building.

But 21C is across the street from downtown’s biggest redevelopment challenge: the old Fayette County Courthouse. It was shuttered in 2012 because of lead contamination and structural problems from years of neglect. Officials this year need to come up with a plan for renovating and reusing this landmark.

The Breeder’s Cup at Keeneland Oct. 30-31 could pump $50 million into the local economy. It also should provide an incentive to finish a variety of projects, just as the Alltech FEI World Equestrian Games did in 2010.

Kentucky’s biggest trouble spot is Eastern Kentucky, where the coal industry is in permanent decline. Will the Shaping Our Appalachian Region initiative this year create jobs in Eastern Kentucky, or just more talk?

Dave Adkisson, president of the Kentucky Chamber of Commerce, said everyone also will be watching to see how Ft. Knox and Ft. Campbell fare as the military downsizes after long, costly wars in Afghanistan and Iraq.

Adkisson thinks Kentucky exports will remain strong. One of the fastest-growing exports is likely to continue to be bourbon whiskey, which is enjoying global popularity.

But international trade has been both a blessing and curse. The Kentucky Center for Economic Policy estimates that 41,100 jobs have been lost in the state since 2001 because of America’s growing trade deficit with China.

Will Congress and the president finally address China’s currency manipulation and other unfair trade practices? Or will new global export agreements now in the works simply ship more Kentucky jobs overseas?

One of the biggest issues facing every Kentucky region is the lack of real wage and per-capita income growth, which is below the national average and a drag on the economy. House Democrats have talked about raising the state’s minimum wage this year, but business groups and Republicans oppose it.


Want to improve the economy? Narrow the growing wealth gap

December 21, 2014

Many politicians and business executives like to complain about the slowness and fragility of the economic recovery. Then they push policies to keep it that way — or make it worse.

What they don’t seem to understand is that the best way to improve the economy is to put more money in the pockets of average people who will spend it.

Instead, these politicians and executives oppose raising the minimum wage, which has been $7.25 an hour since 2009 and losing ground to inflation for decades. A low minimum wage keeps wages just above it depressed, too.

Then there are the perversely misnamed “right to work” laws. Their real purpose is to weaken what is left of labor unions so that big business, which already seems to have bought control of government with campaign contributions, has nobody to challenge its power.

Add to that efforts to repeal Kentucky’s “prevailing wage” law, which would cut the pay of working men and women who build public construction projects.

The biggest drag on the economy — and perhaps the biggest threat to America’s long-term prosperity — is the widening wealth gap between the haves and have-nots. Narrowing the gap is in everyone’s best interest, whether they realize it or not.

The prevailing-wage law became a flashpoint last week at a state legislative meeting. The law is designed so that public construction projects pay wages that reflect those in the local community. But as so much of the construction industry has become non-union, critics argue that the law puts too much emphasis on higher union wages.

The Legislative Research Commission compiled a report showing that construction workers on state projects earned $8 an hour more than those on private projects. Workers on 12 school district projects earned $11.37 an hour more.

But critics objected to the analysis, saying it looked only at labor costs, not total project costs. Might more skilled, better-paid workers complete projects faster and better? Besides, higher wages help strengthen local communities.

The irony is that most of the legislators who think construction workers are overpaid have little to say about the sometimes obscene compensation policies at state government’s highest levels.

Kentucky’s public pension systems are among the most under-funded and least transparent in the nation, yet they provide rich benefits for part-time legislators and other high-ranking officials smart enough to game the system.

And then there is the case of the Kentucky Community and Technical College System president, long the nation’s highest-paid community college leader. He recently retired with a $300,000 handshake.

Warren County’s Fiscal Court last week approved Kentucky’s first county “right to work” ordinance, although it is unclear if it is legal under state law.

Republican legislators and chambers of commerce would like to make Kentucky a “right to work” state. That would make Kentucky more “friendly” to companies that want to come here and pay low wages. Studies show right-to-work states often do have faster job growth — as well as lower overall wages and higher poverty rates.

Since Congressional Democrats failed to overcome Republican opposition to raising the federal minimum wage, a statewide minimum-wage increase has been proposed by Democrats in the Kentucky General Assembly. Last Thursday, Louisville’s City Council raised the local minimum wage to $9 by 2017 on a 16-9 party-line vote.

Predictably, business groups and right-wing activists argue that would cause huge job losses — even though it has never happened with previous minimum-wage increases.

Since Ronald Reagan was elected president in 1980, economic policies and trends have largely been based on “trickle-down” economic theory — the notion that if the rich get richer, everyone else will prosper, too. Trouble is, it hasn’t worked that way.

Wealth inequality in the United States is now higher than at any point since the 1920s. The vast majority of all income growth is going to the rich. Corporate profits and the stock market are at record highs. But average workers are losing ground, and the overall economy remains sluggish.

This is a global problem, too, prompting Pope Francis to take up the issue last year in a papal statement worthy of a few amens.

“Some people continue to defend trickle-down theories, which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world,” the Roman Catholic Church’s leader wrote. “This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power.”


Chevy Chase entrepreneurs plan Small Business Saturday event

November 23, 2014

141120ChevyChase-TE0044High Street Fly, a clothing boutique, is one of several new shops in Chevy Chase. Below, Danielle Montague, owner of MonTea specialty tea shop, helped organize the area’s Small Business Saturday event on Nov. 29. Photos by Tom Eblen

 

The holiday shopping frenzy begins this week, and local business owners want you to remember Small Business Saturday between Black Friday and Cyber Monday.

This day is about supporting locally owned businesses so more of your money stays in your community. It is about finding goods and services you never find in big-box stores. And it is about helping to keep your town unique and interesting, rather than letting it become just another generic link in the national retail chains.

One of Central Kentucky’s biggest Small Business Saturday events Nov. 29 is being planned by the Chevy Chase Business Owners Association. While some of its activities will last all day, most will be between 4 p.m. and 7 p.m.

Participating shops will have refreshments and a “candy-cane pull” for discount coupons at other neighborhood stores. The association also is working with American Express, which offers a special discount through its Small Business Saturday program. (More information: Americanexpress.com.)

141119ChevyChase-TE0021Chevy Chase merchants are organizing a coat drive for Lexington Rescue Mission and a store window-decorating contest in which customers can vote. Free carriage rides will be offered in front of John’s New Classic Shoes on South Ashland Avenue.

“Santa will be making visits, and we’re working on carolers,” said Danielle Montague, an association leader and owner of MonTea, a specialty tea shop.

Chevy Chase was built between the 1920s and 1960s on land that had been part of statesman Henry Clay’s Ashland estate. Developer Henry Clay Simpson named the area for the Maryland golf club, where he was a member. One of Lexington’s first “suburban” shopping districts was built to serve the neighborhood.

“We were the original Hamburg,” Montague said with a smile. “We have just about everything here, and it’s walkable.”

The Chevy Chase business district has had a tough year, with months of reconstruction on Euclid Avenue and controversy over a rowdy bar the city shut down in September. But there has been a lot of good news, too.

The business district has been gaining popularity, as a variety of stores, including The Morris Book Shop, Worlds Apart and Donut Days, came in from the suburbs to join longtime businesses such as Farmer’s Jewelers and Chevy Chase Hardware. Several new stores have opened this year, including two in the past few weeks.

Ann-Michael Rawlings, who has operated Calypso Boutique in the Woodland Triangle for seven years, was at Morris buying a book this summer when she noticed the space beside Chevy Chase Hardware was for rent.

She quickly negotiated a lease, renovated it and opened her second boutique, High Street Fly, which specializes in local-themed T-shirts and vintage cowboy boots.

“I love the convenience of the neighborhood,” Rawlings said. “With the hardware store next door, even a lot of guys come in.”

Online retailer C.C. Prep Clothing & Accessories is owned by Atlantans, but when they chose Lexington as the location for their second store (after Charlottesville, Va.), they wanted to be in Chevy Chase.

“We didn’t really look anywhere else,” said manager Amanda Caldwell, who opened the store Nov. 14. “It’s great to be in an area where they support small businesses.”

Melissa Mautz has certainly found that to be true since opening the Pet Wants store in February. It sells fresh, regionally made dog and cat food, GMO-free chicken feed and American-made pet accessories.

“I knew I wanted to be in Chevy Chase, and business has been awesome,” she said. “We like being a part of this community.”

But like most retailers, Chevy Chase’s business owners know that the holiday season can make or break their year. “We rely heavily on it,” Montague said. “You can make your entire year’s rent in a month.”

Gary Doernberg, who opened Corner Wines five years ago in a tiny space that originally was a 1930s gas station, agrees. His shop specializes in low-priced wine lots from top vineyards, and this is high season for entertaining and gift-giving. But he has found Chevy Chase to be a great place to do business year-around.

“I’ve always loved this location,” Doernberg said. “I’ve been in the wine business, wholesale or retail, for 40 years. This is not the most money I’ve ever made, but it’s the most fun I’ve ever had.”

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Artists must learn business skills to make a living from their art

November 17, 2014

lackyJohn Lackey at his studio at North Limestone and Sixth streets. Photo by Tom Eblen

 

Lexington is starting to become a city where an artist can earn a living, but it requires almost as much focus on business as art.

Successful artists tell me they have had to learn strategy, salesmanship, client management and finance to earn money from their passion. Most of all, they have had to be flexible entrepreneurs, willing to try new things and see where they lead.

I talked about these issues last week with John Lackey, an independent artist in Lexington for a dozen years. Since 2010, he has operated Homegrown Press Studio & Gallery at the corner of Limestone and Sixth streets.

Lackey is best known for his intricate block prints and colorful acrylic paintings of Kentucky landscapes. They are fanciful scenes from nature, filled with swirling clouds and curly trees that almost seem to dance.

But Lackey does a lot more, both out of passion and necessity. He has done logos and other commercial art for businesses, including Alfalfa restaurant, where he once worked, and North Lime Coffee and Donuts, which shares his studio building. He also has produced more than a dozen concert posters for his favorite band, Wilco.

Lackey, this month, was commissioned by Kroger to paint an outside mural for its new Euclid Avenue store. The five interconnected, 12-by-7-foot panels along Marquis Avenue will depict “the trees with the most personality in Woodland Park, with human activity in the background,” he said.

He also is getting into filmmaking, after years of playing with time-lapse and animation photography. Lackey has an Indiegogo.com campaign that runs through Tuesday to raise money for a full-length movie. It will be set in Lexington’s northside and focus on themes of community and sustainability.

Lackey learned figurative art and print-making at the University of Kentucky, but some of his most useful professional skills were acquired during several years of hiatus between his studies, when he worked at lumber yards and car dealerships.

“I learned a lot that I still use today when I sold cars,” he said, including negotiating skills and how to read customers.

Lackey spent 14 years as a graphic artist for two Lexington TV stations, where he learned more about art and deadlines. He was then able to begin building an independent art career, thanks to an understanding wife with a steady paycheck.

Early on, he realized the work is a lot like being a home-improvement contractor. Customers who commission work have ideas, but often don’t know exactly what they want. That’s where listening skills and artistry come in.

Lackey said that being willing to try new things has helped him both get jobs and stretch artistically.

“At first, I didn’t do a lot of saying no, because I needed the money, and it pushed me out of my comfort zone,” he said. “It’s good if you have different things you like to do in art.”

The Kentucky Arts Council helped Lackey expose his work to potential clients. After being included in a show at the Governor’s Mansion, he was chosen to create the 2011 prizes for the Governor’s Award in the Arts. The council also helped him get a commission for four seasonal landscape paintings that now hang in the Kentucky Chamber of Commerce’s board room in Frankfort.

Many artists advise against doing free work to get exposure. While Lackey generally agrees, he follows his instinct on some projects where the payoff isn’t obvious.

For example, as a Wilco fan, he engaged others on the band’s website and volunteered to do artwork for a charity event. The band liked it and hired him to create concert posters.

The head of the Clyde’s restaurant chain around Washington, D.C., also is a Wilco fan. He saw Lackey’s posters and hired him to do artwork for the restaurants. The Clyde’s work was seen by Virginia-based Potter’s Craft Cider, which hired him to design its logo and labels. Such jobs can be vital income bridges between fine art projects.

Other free artwork has enriched his life, if not his bank account. Lackey has done more than 60 posters for the Holler Poet’s series at Al’s Bar, across East Sixth Street from his studio, where he occasionally reads his own poetry. Each poster became an opportunity to experiment with new techniques that have improved his work.

“For me, one of the benefits of being an artist is not having to do the same thing twice,” he said. “It keeps your brain regenerating.”


Kentucky development leaders showcase high-tech innovation

September 30, 2014

gamersJason Mize, left, a partner in the Lexington company Really Big Spiders, demonstrated its online game, “Tales from the Strange Universe,” to Jonathan Gay of the Kentucky Innovation Network. Lexington is now a hotbed for electronic game development. Photo by Tom Eblen

 

Who knew Lexington was becoming a hotbed for electronic game development?

That’s exactly why Commerce Lexington and the state Cabinet for Economic Development brought seven freelance journalists here to visit with local game developers at Awesome Inc., the tech business incubator on Main Street.

At a reception Tuesday, they were to meet with other local business leaders, including Carey Smith, CEO of Big Ass Solutions, the giant fan company.

Earlier in the day, some of the journalists toured Northern Kentucky University’s College of Informatics, a new program that focuses on data science applications. Others went to Morehead State University to see the Space Science Center. Later this week, most will be covering the annual Idea Festival in Louisville.

“We just wanted to show them that from small business to big you can do it here in Lexington,” said Gina Greathouse, Commerce Lexington’s senior vice president for economic development.

Lexington has seven full-fledged companies developing electronic and online games and several programmers and artists who work on them part-time, said John Meister. He is a board member of RunJumpDev, a local organization that helps game developers network and promote their products.

Meister also is a partner in one of those companies, Super Soul. After working 10 years as a software engineer, he teamed up with artist Richie Hoagland to develop the Xbox game Compromised in 2012. Their company will soon release Speak Easy, a 1920s-themed fighting game for PlayStation 4.

Meister said game development has been growing in Lexington because many technology workers play games and become interested in making them. Lexington’s low cost of living helps, because it is much cheaper to develop games here than in many other cities with large high-tech communities.

While he wasn’t that interested in gaming, Terry Troy, a Cleveland-based journalist who writes for Scientific American magazine, said he came away from the tour with many story ideas. He was especially impressed by Morehead’s Space Science Center, which has become a national leader in developing small space satellites for research.

“Kentucky is a state of dichotomies; you have the Creation Museum and then over in Morehead is the cutting edge of satellite technology,” Troy said. “I knew there was a lot of innovation in the state, but you just don’t realize how much until you see it. I’m impressed.”


Lessons for Appalachia in Wales’ recovery from coal’s collapse

September 29, 2014

SouthWalesThe Tower Colliery near the village of Hirwaun, in Glamorgan, South Wales, in 2009. Tower Colliery was the oldest continuously worked deep-coal mine in the United Kingdom, and possibly the world. Photo by Kirsty Wigglesworth/Associated Press. 

 

People in the remote hills and valleys were subsistence farmers before the mining industry came. For generations afterward, King Coal provided most of the decent jobs and dominated almost every aspect of life.

But mechanization gradually eliminated tens of thousands of mining jobs. When economic and political conditions suddenly changed, most of the coal industry shut down. Communities were left with high unemployment, a ravaged landscape and an uncertain future.

This is the story of Eastern Kentucky. It also is the story of South Wales.

These two regions separated by the Atlantic Ocean share many traits and experiences. Community leaders working to create a post-coal economy in Central Appalachia think there are lessons to be learned from Wales, which has been dealing with many of the same challenges for three decades.

Two longtime coal community leaders from Wales will be in Eastern Kentucky on Oct. 7 to speak about their experiences. The 7 p.m. program at Appalshop Theatre, 91 Madison Avenue in Whitesburg, is free and open to the public.

Hywel Francis and his wife, Mair, are no strangers to Kentucky. They have been coming here for years as part of a community exchange program started in the 1970s by Helen Matthews Lewis, a well-known Appalachian scholar and activist.

“The interest between these two areas has been there for a long time, but it has really picked up as we’ve seen the sudden decline of mining jobs here,” said Mimi Pickering of Appalshop. “We think this is an exciting opportunity for folks to talk with people from another place who have been though this.”

Francis is a member of the British Parliament, a college professor and labor historian. His wife is a founder of Dulais Opportunity for Voluntary Enterprise, known as the DOVE workshop, a women’s education and job-training organization.

South Wales was a few decades ahead of Central Appalachia, both in the development and collapse of its coal economy.

Beginning in the early 1800s, coal mines in South Wales fueled Britain’s industrial revolution and, in many ways, the British empire. At the industry’s peak just before World War I, more than 250,000 men labored in nearly 500 Welsh deep mines and open pits.

As in Appalachia, mechanization steadily reduced mine employment. After World War II, British mines were nationalized. In the mid-1980s, Prime Minister Margaret Thatcher closed unprofitable mines, sparking a bitter miners’ strike. The industry all but collapsed and 85,000 miners lost their jobs. Only a few hundred miners still dig coal in South Wales.

Tom Hansell, a filmmaker and professor at Appalachian State University in Boone, N.C., is finishing After Coal, a documentary comparing the experiences of coal communities in South Wales and Central Appalachia. He said it will be shown on Kentucky Educational Television next year or in 2016.

Hansell also helped organize a program in Elkhorn City two weeks ago about what Eastern Kentucky could learn from Wales’ tourism industry, which now employs 30,000 people.

A third forum will be at 6 p.m. on Oct. 28 at the Harlan campus of Southeastern Kentucky Community and Technical College. Richard Davies of College Merthyr Tydfil in Wales will lead a conversation about the role of youth and the arts in preserving vibrant coalfield communities.

While working on his film, Hansell said he made three trips to Wales. He noted that some of its circumstances are different than in Central Appalachia.

Because Welsh mines were owned by the government, laid-off miners got good severance payments to help them start businesses or train for new jobs. Britain also has a stronger social safety net than the United States, including a public health care system.

But Hansell said there is one smart thing Britain did that the United States could emulate: the government invested heavily in environmental reclamation, cleaning up the mess from generations of coal mining.

“There were jobs created with that, but more importantly it provided a foundation for future economic development,” he said.

Another good strategy: community funds have been created around major industrial investments, such as a wind turbine farm built by a Swedish company. The funds are similar in some ways to Kentucky’s coal severance tax, but transparently managed by local community boards rather than state and local politicians.

Wales has a focus on entrepreneurship and small-business development, which organizations such as Kentucky Highlands Investment Corp. have done here. Everyone realizes that the future is lots of small employers rather than a few big ones, Hansell said.

“It would be misleading to say that Wales has solved all their economic problems,” he said, noting that unemployment remains high and many people in former mining communities commute to jobs in coastal cities. “But towns have found ways to survive and find creative ways to re-invent themselves.”


Concerns about militarized police ignore bigger, underlying issues

September 27, 2014

Should Andy Taylor and Barney Fife be equipped like Rambo?

That has been a much-debated topic since police in Ferguson, Mo., responded with paramilitary aggressiveness to protesters after one of their white officers shot and killed a black teenager.

The situation focused public attention on the U.S. Defense Department’s 1033 program, which has given away hundreds of millions of dollars worth of “surplus” military equipment to state and local police forces, whether they need it or not.

Kentucky’s House Local Government Committee held a hearing last week on this issue. The 1033 program has furnished 33,000 military weapons and supplies, valued at more than $44 million, to Kentucky police agencies over the past decade.

That includes the Lexington Police Department’s two helicopters, hundreds of automatic rifles for the Kentucky State Police and a $689,000 mine-resistant vehicle for the Owensboro Police Department. And you know who is paying to buy, operate and take care of all these goodies. You are.

This trend raises many issues, but I haven’t seen some of the biggest ones discussed.

Access to this kind of firepower only increases the chances for abuse of power and tragedy among badly managed police forces. But problems such as those in Ferguson have more to do with what is in officers’ hearts than what is in their hands. Bull Connor’s Birmingham cops needed only fire hoses to show their moral bankruptcy in the 1960s.

Besides, I understand why police officers want and sometimes need military-style weapons. Thanks to the NRA and other gun-rights radicals, any Tom, Dick or lunatic now has easy access to military-style weapons, and many think they have a constitutional right to flaunt them in public.

It is no wonder the FBI reported last week that the number of mass shootings has increased dramatically in recent years. Authorities studied 160 shootings that killed or wounded 1,000 people, many of which occurred in schools or businesses. In one-fourth of those cases, the shooter committed suicide before police arrived.

Do we really have more crazy people than in the past? Or is it simply that society’s gun lust has made it easier for them to inflict maximum carnage? Until the United States is mature enough to enact common-sense gun control measures, police will sometimes need serious firepower to keep themselves and the public safe.

But the issues go much deeper. When I read about the Defense Department doling out all of this “surplus” equipment, I wonder why they have it all to give away.

As Dwight Eisenhower was leaving the presidency in 1961, he gave a famous farewell speech that warned about the corrupting influence he saw in the rise of America’s “military industrial complex.”

Eisenhower, a Republican and the greatest general of World War II, was no wild-eyed pacifist. But he clearly saw what was happening.

“The potential for the disastrous rise of misplaced power exists and will persist,” Eisenhower warned. “Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.”

Eisenhower’s fears have been realized, and the 1033 program is just a small example.

The International Institute for Strategic Studies in 2012 estimated U.S. military spending at $645 billion, more than half the government’s discretionary spending. It was 40 percent of the world’s total military spending — more than six times China’s $102 billion and 10 times Russia’s $59 billion.

Stories of wasteful, unnecessary and even fraudulent military spending are legion. In an unholy alliance with corporate “defense” contractors, Congress continues to appropriate billions for high-tech planes, ships, weapons systems and equipment the military doesn’t need and may never use.

In another speech, in 1952, Eisenhower said, “Every gun that is made, every warship launched, every rocket signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.”

So the next time your congressman tells you we can’t afford better health care, better schools and better infrastructure, you will know why. That $689,000 mine-resistant vehicle in Owensboro is only the tip of the iceberg.


UK seminar will focus on challenges of local food economy

September 22, 2014

Creating strong local food economies has become a trend, if not a fad, all over the country. But the prospects in Kentucky seem more promising than in many places.

Kentucky’s fertile soil, temperate climate, abundant water, central location and dispersed population have made the state an agriculture powerhouse for more than two centuries.

Since the collapse of the tobacco economy, more Kentuckians have been exploring ways to recreate and reinvent local food systems like those that prevailed before World War II.

But local food is not just an issue of local economics and self-sufficiency.

It is often more nutritious than food grown in huge quantities and shipped great distances. That’s a big issue as America struggles with an obesity epidemic, lifestyle diseases such as diabetes and soaring health care costs. And local food also just tastes better.

But there are big challenges, from processing facilities to distribution networks. The biggest challenge is this: how can locally grown food be both profitable for farmers and affordable for consumers, especially those with low incomes?

Those questions are at the heart of this year’s Lafayette Seminar in Public Issues, an annual program sponsored by the University of Kentucky’s Gaines Center for the Humanities. The seminar will explore these issues in three programs over the next three weeks, all of which are free and open to the public.

The seminar’s keynote speaker at 5:30 p.m. Wednesday at the Lyric Theatre is Robert Egger, who has spent 25 years feeding and providing food-related job training to poor people in Washington, D.C. and Los Angeles. His talk is called, “Revealing the Power of Food.”

As a young nightclub manager, Egger volunteered at what he found to be a well-intentioned but inefficient soup kitchen for homeless people in Washington, D.C. The experience prompted him to start D.C. Central Kitchen in January 1989 by getting a refrigerated van, picking up food left over from President George H.W. Bush’s inauguration and delivering it to local shelters.

The non-profit organization uses food donated by hospitality businesses and farms to feed hungry people and train poor people for food-related jobs. During 24 years as president of D.C. Central Kitchen, Egger helped start more than 60 similar community kitchens around the country.

Egger recently moved to Los Angeles to start LA Kitchen, which recovers fresh fruit and vegetables for use in a culinary arts job training program for men and women coming out of foster care or prison. He is author of the 2004 book, Begging for Change: The Dollars and Sense of Making Nonprofits Responsive, Efficient and Rewarding For All.

The seminar’s second session, at 5:30 p.m. on Oct. 1 at the Lyric Theatre, is a panel discussion called “Whose Farm to Whose Table?” It focuses on increasing access to local food in Central Kentucky’s underserved communities.

Panelists are community garden activist Jim Embry; Mac Stone, co-owner of Elmwood Stock Farm and a founder of the Kentucky Proud program; Karyn Moskowitz of New Roots Inc. and the Fresh Stop Project; and Ashton Potter Wright, Lexington government’s new local food coordinator. The panel will be moderated by Lexington food blogger and cookbook author Rona Roberts.

The final session, at 5:30 p.m. on Oct. 9 at UK’s W.T. Young Library, is a panel discussion moderated by former UK Agriculture dean Scott Smith. It will explore challenges of getting local food into universities, schools, businesses and other large institutions.

Panelists are Sarah Fritschner, Louisville’s local food coordinator; John-Mark Hack, executive director of the Midway-based Local Food Association; UK agriculture professor Lee Meyer; and Tony Parnigoni, Aramark Corp.’s regional vice president.

The topic is especially timely given UK’s controversial move to outsource its dining services to Aramark, the giant food corporation that is putting up $70 million to build new campus dining facilities.

Amid pressure from local food advocates, Aramark agreed to contribute $5 million to a new local food institute at UK and to purchase millions of dollars worth of food from Kentucky farmers.

“There has been a lot of buzz about local food and enhancing access to local food and capitalizing on the agricultural economy of the Bluegrass,” said Phil Harling, a UK history professor who recently became director of the Gaines Center. “We’re trying to bring together a bunch of different strands.”

If you go

  • UK’s Lafayette Seminar this year focuses on local food. All sessions are free and open to the public.

    5:30 p.m. Sept. 24, Lyric Theatre, 300 E. Third St. Robert Egger, founder of LA Kitchen and DC Central Kitchen, speaks on “Revealing the Power of Food.”

    5:30 p.m. Oct. 1, Lyric Theatre. Panel discussion about expanding access to local food.

    5:30 p.m. Oct. 9, W.T. Young Library, 401 Hilltop Ave. Panel discussion about challenges of getting local food into large institutions.


Labor Day a reminder of how working people are falling behind

August 31, 2014

Each year on Labor Day, I think of Myles Horton and something he once told me.

Horton started Tennessee’s Highlander Center in 1932 and spent most of his 84 years crusading for racial, environmental and economic justice. Rosa Parks called him, “the first white man I ever trusted.” He was a mentor to the Rev. Martin Luther King Jr.

During an interview in the 1980s, I asked Horton about his focus. “Working people,” he replied. “People who work for a living rather than own for a living.”

Labor Day celebrates Americans who work for a living, which is most of us. But each year there seems to be less to celebrate. Stock markets, corporate profits and executive compensation are hitting record highs. But at the other end of the spectrum, there aren’t enough good jobs for people who want to work.

There has been a lot of political talk about job creation, but a more important issue is the quality of jobs. More and more people are working hard at full-time or several part-time jobs and still can’t earn a decent living.

The Kentucky Center for Economic Policy, a non-profit think tank in Berea, issued a report last week that offers a gloomy assessment of recent trends. The full report is at Kypolicy.org, but here are some key findings:

Kentucky is experiencing job growth, but still needs 80,800 jobs to get back to the pre-recession 2007 level and accommodate population growth since then. Nearly one in four Kentucky part-time workers say they would rather have full-time jobs.

A lack of jobs has led to a decrease in the labor force as many Kentuckians have given up looking for work. One third of Kentucky’s unemployed people have been that way for a long time.

Wages are depressed by high unemployment levels. The late 1990s, when the unemployment rate was below 4 percent, was the only time in the past 35 years when Kentucky workers’ real wages actually grew.

The inflation-adjusted median wage has fallen 8 percent since 2001, and low-wage workers’ pay has fallen by 7 percent. Much of that is because higher-paying jobs that produce goods — especially in manufacturing — have been replaced by service jobs. Many service jobs pay low wages, which have been further depressed by a $7.25 hourly minimum wage that hasn’t been raised since 2009.

What are some solutions? First, the center recommends long-needed reform in Kentucky’s 1950s-era tax code to reflect the modern economy. That would provide more revenue for the state to invest in education and infrastructure, both of which would create jobs and spur economic development.

Another good idea the center recommends is raising the minimum wage. The value of the minimum wage has been eroded by inflation to the point that it is too little for an individual, much less a family, to live on.

What is especially obscene is huge, profitable corporations that pay workers so little they are eligible for public assistance. That leaves taxpayers subsidizing the profits of companies such as Wal-Mart and McDonald’s. Raising the minimum wage would save taxpayers money.

Opponents argue, as they always have, that increasing the minimum wage costs jobs and raises prices. But evidence shows those effects are minimal. A higher minimum wage, which also pushes up pay for workers just above it, puts more money in the pockets of people who will spend it, which boosts the economy.

Conservatives argue that Kentucky could spur economic growth by enacting anti-union laws and loosening environmental regulations. But that kind of growth does more harm than good. Pollution creates health problems and lowers the state’s quality of life. Anti-union laws boost business profits at the expense of workers.

Cynically named “right to work” laws make it harder for workers to organize for higher wages and better working conditions. States that enact those laws generally have lower average wages and more poor people than those that do not.

Similarly, repealing “prevailing wage” laws would make public construction projects cheaper, but only by taking money out of the pockets of the people doing the work.

It is no accident that the decline of the middle class since the 1970s has mirrored the decline of organized labor, which had a big role in creating the middle class in the first place. More and more of this nation’s wealth is rising to the top at the expense of everyone else.

Yes, we need to create more jobs. But we need to do it in ways that will improve the fortunes of people who work for a living and not just those who own for a living.

 


When it comes to broadband, why is Kentucky stuck in slow lane?

August 17, 2014

broadband

 

When Dr. Pamela Graber traveled in Uzbekistan and Turkey, she was surprised to find fast, reliable Internet connections. She just wishes she could get that kind of service at her home, 20 miles from Kentucky’s State Capitol building.

“I sit here and wait for things to come up” on the screen, said Graber, an emergency physician who lives in the Beaver Lake area of Anderson County.

She and neighbors have petitioned a major Internet provider in their area for service, with no luck. So they use a satellite dish service. With data charges, Graber’s monthly bill is more than $100 — much higher than she pays for excellent service in Florida, where she lives and works each winter.

While slow Internet is annoying for Graber and her husband, Melvin Wilson, it’s a serious problem for two neighbors who have home-based online jobs. “When there’s a wind storm, they can’t work,” she said.

“Internet’s the main infrastructure we’re going to need to work in the future,” Graber said. “It’s going to be a huge issue.”

It already is. Akamai Technologies’ quarterly State of the Internet report last week highlighted Kentucky — and not in a good way. It said that while Alaska has the nation’s worst average Internet connection speed, at 7.0 megabits per second, Kentucky, Montana and Arkansas are almost as bad, at 7.3 Mbps.

By comparison, 26 states have average connection speeds of 10 Mbps or above, which is now considered a minimum by tech-savvy homeowners. The fastest average speeds are above 13 Mbps in Virginia, Delaware and Massachusetts.

Kentucky also was near the bottom of the list when it came to improvement of average speeds over the past year. And when Akamai measured states’ “readiness” for ultra-high definition (4k) video streaming, Kentucky was dead last.

“Embarrassing, actually,” is how Brian Kiser described the report. He is executive director of the Commonwealth Office of Broadband Outreach and Development, and I called to ask him why Kentucky is so far behind.

“Our broadband speeds are left up to the providers, and I’m not sure the providers are investing enough in infrastructure,” said Kiser, who takes between three and 10 calls a day from citizens wanting help with Internet service.

Other studies rank Kentucky 46th nationally in broadband availability, with 23 percent of state residents having no access at all.

Part of the issue is a chicken-and-egg problem. Virtually all of Kentucky’s Internet providers are private companies, which are reluctant to invest in infrastructure if they can’t see a potential return on their investment. Providers usually want at least a dozen customers per mile in rural areas. “The problem is that 10 minutes outside our biggest cities it’s rural,” Kiser said.

Kentucky has one of the nation’s lowest demand rates for home Internet, at about 60 percent. “Surveys show people say either it’s too expensive or they don’t see a need for it,” he said.

(It’s worth noting that Kentucky has a high adoption rate for smart phones. Kiser said that’s because smart phones can be a more economical way for poor people to meet many needs — phone, Internet, camera, entertainment — especially in rural areas under-served by broadband.)

Kiser said his office has partnered with Community Action Kentucky to build 30 public Internet facilities in rural parts of the state to encourage technology literacy and use. The centers have proven quite popular for things such as résumé writing and social media use. “We just want people to not be intimidated by it,” he said.

Internet costs in Kentucky are comparable to neighboring states. But Internet all over the United States is much more expensive than in many other countries. “The real problem, I think, is we don’t have enough competition,” Kiser said.

Connected Nation, a national broadband advocacy group, says that improving Internet service requires a two-prong strategy: pushing Internet providers to offer better service and making the public more technologically literate and savvy, so they will create the business demand for that better service.

Tom Ferree, the president of Connected Nation, said the states with the best Internet infrastructure are those that have had strong leadership on the issue at both state and local levels, plus a lot of grassroots advocacy.

Many states got a jump on Kentucky because they were well-positioned with “shovel ready” broadband expansion plans in 2009 when Congress and the Obama administration put about $7 billion in economic “stimulus” money into data network development.

But there may be more funding opportunities ahead, Ferree said. The Federal Communications Commission is changing policy to shift subsidies away from traditional telephone service to digital data networks. That could be a big opportunity for states that develop good broadband plans.

As an outgrowth of the bipartisan Shaping Our Appalachian Region initiative, Gov. Steve Beshear and U.S. Rep. Hal Rogers have proposed a $100 million public-private effort to begin building a 3,000-mile, high-speed fiber optic network across Kentucky to connect with local Internet providers.

“I cannot emphasize enough the need for local planning and plan building,” Ferree said. “I think that plan holds great promise. I hope Kentucky makes the most of it.”


Eastern Kentucky jobs outlook: health care and more broadband

August 11, 2014

crouch1Ron Crouch is the director of research and statistics for the Education and Workforce Development Cabinet in Frankfort. He says a growing health care industry in Eastern Kentucky should help offset jobs lost to coal’s decline. Photo by Mark Mahan

 

There is more talk than usual about the need to create jobs and a more diverse economy in Eastern Kentucky because of the coal industry’s decline.

It made me wonder: what are the latest trends? For some answers, I called Ron Crouch, director of research and statistics for the Education and Workforce Development Cabinet. He previously headed the Kentucky State Data Center for two decades and is better than anyone I know at analyzing this sort of information.

People are alarmed because coal-industry employment in Eastern Kentucky has dropped to about 7,300 — half what it was five years ago. Coal-mining jobs have been important to the region because they pay well: about $65,000 a year.

President Barack Obama’s critics have blamed stricter environmental regulations for the sudden drop in coal employment. But the biggest factors have been cheap natural gas and the fact that Eastern Kentucky’s best coal seams have been depleted over the past century; the coal that is left is more costly (and environmentally damaging) to mine.

But Crouch notes that coal employment in Eastern Kentucky has been declining steadily for more than six decades — even accounting for periodic booms and busts — mainly because of mechanization. Coal production peaked in 1990, but coal employment peaked in 1950, when there were 67,000 miners.

Some Eastern Kentucky leaders have pursued manufacturing as a source of new jobs. But Crouch says the long-term prospects for manufacturing aren’t too good, either, also because of automation.

“Manufacturing is coming back to the United States, but not necessarily manufacturing jobs,” he said. “We’re producing far more goods, but with far fewer workers.”

Still, Crouch sees hopeful signs for Eastern Kentucky.

While the region still lags the state in college degrees, high school graduation rates have improved significantly, as have the number of people completing other levels of training between high school and a bachelor’s degree. Many new, good-paying jobs are for people with that level of education.

Those areas include health care as well as professional, scientific and technical services. Some of these jobs pay well. For example, the number of registered nursing jobs, which pay about $55,000, is growing significantly.

Eastern Kentucky’s health care industry should see big growth in coming years. One reason is demographics. Baby Boomers are now entering their 60s and 70s and will require more health services. Another reason is the Affordable Care Act.

“You’re going to see a huge increase in the number of people in East Kentucky who have health insurance,” Crouch said.

Because Eastern Kentucky families are smaller than in the past, there will be less pressure for young people to leave.

“You now have a population with more people in their 40s, 50s and 60s than in their teens and 20s,” Crouch said. “If those young people can get the education and training they need after high school, there will be jobs for them in East Kentucky.”

But many of the growing economic sectors in the region, such as health care, have traditionally been dominated by women, while shrinking sectors, such as mining and manufacturing, have been mostly male. In some Eastern Kentucky counties, women now have higher employment rates than men.

“The good news is the economy has been transitioning to a broader economy,” Crouch said. “But how do you transition a population of males who have been involved in mining and manufacturing to jobs in professional, technical services and food services and health care, which have largely been female?”

Crouch said improving broadband service in Eastern Kentucky, which has the state’s poorest connections to the Internet, is vital.

“That would accelerate the growth in higher-skilled jobs,” he said.

Crouch is troubled that many Eastern Kentucky counties have high percentages of working-age people not in the formal labor force. He thinks many are “getting by” in the cash and barter economy, some of which is illegal.

He also is concerned that much of the job growth has been in low-wage service industries. Because the legal minimum wage hasn’t kept pace with inflation, full-time work in many low-wage jobs doesn’t produce a living wage for a family.

“The good news is that East Kentucky is not having a brain drain, despite what people think; it’s having a brain gain,” he said. “But, as the saying goes, we’re halfway home and have a long way to go.”


The real issues in this Senate campaign? Speeches offer a clue

August 9, 2014

140806Clinton-TE0255Former President Bill Clinton appeared at a fundraising luncheon in Lexington on Aug. 6 for Secretary of State Alison Lundergan Grimes. Photos by Tom Eblen

 

I spent time in the past week listening to a lot of speeches by the two U.S. Senate candidates and their surrogates.

We don’t hear as many political speeches as we used to. Campaigns have mostly become a series of TV attack ads in which candidates trash their opponents and stretch the truth as much as they can in 30 seconds.

Political speeches are longer than attack ads, increasing the odds that a candidate might mention accomplishments or goals or reveal the values behind his or her campaign.

When Sen. Mitch McConnell and his Democratic challenger, Secretary of State Alison Lundergan Grimes, faced off Aug. 2 at the Fancy Farm Picnic, they mostly mocked each other and professed more love for the coal industry than for clean air, clean water and good health.

McConnell used the rest of his time to slam Gov. Steve Beshear, Attorney General Jack Conway, the “liberal” media and President Barack Obama, perhaps the only politician with a lower approval rating in Kentucky than his own.

McConnell vowed to repeal Obama’s health-care law, which has provided insurance to tens of thousands of Kentuckians who didn’t have it. He also urged voters to re-elect him to lead Senate Republicans so the gridlock in Washington can continue.

What McConnell did not mention was any accomplishments during his three decades as Kentucky’s longest-serving senator. He also didn’t say what he would do to improve the lives of average Kentuckians.

At least Grimes used some of her time to talk about how she would try to grow a middle class that has been shrinking for three decades because of globalization and “trickle down” economic policies that favor the wealthy.

Grimes called for raising the minimum wage and legislating equitable pay for women, both of which McConnell opposes. She also voiced support for strengthening Social Security and Medicare, making college more affordable and protecting the right of workers to bargain collectively for better pay and benefits.

With polls showing the race essentially tied, Grimes brought in former President Bill Clinton to campaign for her Wednesday in Lexington and Hazard. Clinton carried Kentucky in both of his presidential elections, and his administrations presided over an era of balanced budgets, job growth, welfare reform and economic prosperity.

Clinton is a gifted speaker with a knack for putting things in perspective.

“Creating jobs and raising incomes and giving poor people a chance to work into the middle class, that is the issue,” Clinton told those who attended a Grimes fundraising luncheon in Lexington.

He endorsed Grimes’ call for raising the $7.25 federal minimum wage, which hasn’t been increased in five years.

“We have not kept up with inflation,” Clinton said, adding that a reasonable increase in the minimum wage will create jobs, not kill them as Republicans always claim. “These people are going to spend that money; it’s going to circulate in their communities; all the local merchants are going to be better off; incomes will go up; more people will get hired; more people will get a pay raise.

“Creating more jobs and shared prosperity, as opposed to fewer jobs and more concentrated wealth with all the benefits going to people at the top, is the main issue people face in country after country and country,” he added. “We Americans have not done enough for broadly shared prosperity, because we have not done enough to create jobs.”

Clinton also discussed the political obstruction McConnell has led in Congress since Obama became president in 2009.

He contrasted McConnell to former U.S. Sen. Wendell Ford, a Democrat who while in Senate leadership worked well with colleagues and presidents of both parties, and to Beshear, a Democrat, and U.S. Rep. Hal Rogers, a Republican, who together last year formed the Shaping Our Appalachian Region initiative to help diversify Eastern Kentucky’s economy.

“I’ve been everywhere, and I’m telling you: whenever people are working together, good things are happening,” Clinton said. “Whenever they spend all their time fighting, good things are not happening. The founders of this country gave us a system that requires us to treat people who disagree with us with respect and dignity and to make principled compromise so that something good can happen. Cooperation works, and constant conflict is a dead-bang loser.”

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Morehead space program shows Eastern Kentucky can aim high

July 26, 2014

140721KySpace-TE0025

Zach Taulbee, 21, of Prestonsburg uses a computerized CNC machine to make an aluminum part for a small “cubesat” satellite. Taulbee is an undergraduate and machine shop manager at Morehead State University’s Space Science Center.  Photo by Tom Eblen

 

MOREHEAD — When people talk about diversifying an Eastern Kentucky economy dominated for a century by coal mining and poverty, they often don’t aim very high: low-wage factories and corporate call centers.

But you can see another possibility at Morehead State University’s Space Science Center. Over the past decade, in partnership with the Kentucky Science and Technology Corp. and the University of Kentucky, the center has become a world leader in designing and building small, high-tech spacecraft of the future.

One morning last week, I stood with Kris Kimel, president of KSTC, in the center’s control room as engineers used computers to locate two Morehead-built satellites now circling the Earth. Faculty and students use the control room to download data and upload instructions to the satellites as they pass within range of one of the world’s biggest space-tracking antennas, visible out the window on a nearby hilltop.

“This is a different kind of call center,” Kimel said.

Lexington-based KSTC was created 27 years ago as a non-profit corporation to develop innovation-driven, entrepreneurial companies in Kentucky. A decade ago, Kimel saw an opportunity to grow Morehead’s already strong astrophysics program in a new direction.

He realized that the micro-technology then revolutionizing computers and cellphones would also change spacecraft, especially as NASA was turning over much of its traditional work to private industry. Somebody needed to design and build this new stuff, Kimel thought. Why couldn’t it be done in Kentucky?

“We knew we had really smart people here; we knew we had smart students,” he said. “But we had to be aggressive and ambitious and move quickly.”

140721KySpace-TE0086KSTC set up a lab in California’s Silicon Valley. Benjamin Malphrus, chairman of Morehead’s Department of Earth and Space Sciences, and UK engineering professor James Lumpp spent several weeks there in 2005 with about 20 graduate students, learning all they could about new satellite technology.

They collaborated with engineers at NASA and Stanford University. Among them was Robert Twiggs, who helped develop some of the first small satellites, including the CubeSat, which has become an industry standard. Twiggs left Stanford in 2009 and moved to Morehead to teach.

KSTC created Kentucky Space LLC in 2010 as a non-profit corporation to coordinate this university research with industry. Last week, KSTC created Space Tango, a for-profit enterprise, to commercialize the work.

Much of that work involves designing and building CubeSats, which are 10-centimeter cubes packed with off-the-shelf technology and powered by solar panels.

When launched from a rocket or the International Space Station, the satellites take advantage of space’s zero-gravity environment to gather a variety of scientific and commercial research data. Other CubeSat uses range from tracking ships at sea to making high-resolution photographs of Earth for mapping and surveillance. Almost all of Kentucky Space’s hardware and software is designed and built in Kentucky.

“We’re trying to develop a home-grown set of technologies that can integrate into spacecraft,” Malphrus said. “There’s an incredible variety of applications people have thought of, but we don’t even know what all the applications are yet.”

Another Kentucky Space product is the DM processor, whose development was funded by the Defense Department. It is a supercomputer — 20 times more powerful than a desktop computer — that can be built into a small satellite for such applications as on-board processing of high-resolution images. It weighs about 12 ounces.

Kentucky Space, Morehead and UK have had several experiments on the Space Shuttle and International Space Station. They also have built two research platforms on the space station and are developing more.

“We’re clearly one of the global leaders in trying to work on and design this next generation of spacecraft,” Kimel said. “Our specialty is building small machines quickly.”

Kentucky Space also recently announced a partnership with FedEx Corp. to develop a Space Solutions division to help global clients safely move payloads between laboratories and launch sites.

Morehead’s space studies program now has about 60 students. This fall, it will start its first master’s degree program, in space systems engineering, with 10 students. While many are from Eastern Kentucky, about one-third of the students are internationals who sought out Morehead, Malphrus said.

140724KySpace0103Kentucky Space and Space Tango are small, with five contract employees and one full-time engineer: Twyman Clements, 27, a UK engineering graduate who grew up on a farm near Bardstown. But Kimel said a half-dozen small companies already have been created out of Kentucky Space’s work, and he said he thinks that is just the beginning.

Spacecraft might seem an unlikely Kentucky product, but it’s not. Aerospace products have become Kentucky’s largest export, edging out motor vehicles and parts, according to the state Cabinet for Economic Development. A diverse array of aerospace exports totaled $5.6 billion last year — 22 percent of the value of all Kentucky exports.

Economic development strategies are changing from the old model of luring corporate branch plants with jobs that are here today and may be gone tomorrow when incentives run out or cheaper labor is found elsewhere. There is more long-lasting economic impact in creating specialized knowledge and an environment where entrepreneurs can use it to create high-value companies.

“This is not just about education; we’re growing a new industry here,” Kimel said. “If we don’t commercialize this technology, these students won’t stay here, because there won’t be opportunities for them.

“I’m not one of these people who thinks everyone should stay in Kentucky; they shouldn’t,” he added. “But for those that have the opportunity and want to, great. And we want people to come here from other places who are interested in this industry. We want them to say this is the place to be.”

Eastern Kentucky has a long way to go in creating the workforce to support many high-tech companies, but Kentucky Space shows what is possible. It isn’t the only answer for the region’s economic challenges, but neither are low-wage factories and call centers.

“Kentucky historically has done an excellent job of putting together other people’s ideas,” Kimel said. “What we need to start doing is building our own ideas, because that’s where the value proposition is. We have to find things that we can do better than anybody else.”

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Plan would create 200 miles of multi-use trails in Scott County

July 15, 2014

legacyGabe Schmuck, 9, left, Nate Schmuck, 5, and their father, Paul Schmuck, rode on the Legacy Trail in Lexington in 2012. Photo by Mark Ashley.

GEORGETOWN — The popular Legacy Trail out of Lexington now stops just short of the Scott County line at the Kentucky Horse Park. But what is now the end of the trail could someday be just the beginning.

Scott County leaders have worked for three years with the regional visioning group Bluegrass Tomorrow and the National Park Service to develop an ambitious plan for Kentucky’s most extensive trails network. Plans call for 200 miles of biking, hiking, horseback riding and waterway trails throughout Scott County.

“Our vision is that this is going to eventually branch out and include the whole region,” said John Simpson, director of Georgetown/Scott County Tourism.

The Bluegrass Bike Hike Horseback Trails Alliance unveiled a draft of the proposed master plan Monday at the monthly meeting of the Georgetown/Scott County Chamber of Commerce.

Alliance leaders hope to finish the plan by the end of the year and begin negotiating property easements, designing trails, raising private money and applying for federal transportation grants.

Some trails would be shared, with bike/pedestrian and horse paths side-by-side, but most would be separate. The plan was developed with help from interested residents during a June 2013 design workshop, and the alliance is eager for more public participation.

At this point, there are no cost estimates, but such a trails network would run well into the millions of dollars. Still, many officials think it would be a great investment.

“This has the potential to have a tremendous impact, economically and socially, on the community,” said Russell Clark, the alliance’s National Park Service representative.

Clark and Rob Rumpke, president of Bluegrass Tomorrow, cited the economic impact that trail systems have had on Damascus, Va., a once-depressed logging town where hikers and mountain bikers now flock to the Appalachian and Virginia Creeper trails; Loveland, Ohio; and Indiana’s Brown County.

The trails alliance has more than a dozen partners, including the cities of Georgetown, Sadieville and Lexington; Scott County Fiscal Court; the state tourism department; the Horse Park; the Kentucky Horse Council; Georgetown College; the University of Kentucky College of Agriculture; the Bluegrass Area Development District; St. Joseph Health System/Kentucky One; and several horseback-riding and cycling groups.

Rumpke said horse trails should be especially popular, given the number of local horse enthusiasts and the tourists who come to Central Kentucky to see horse farms and events.

“We’re the horse capital of the world; why are there so few horseback-riding facilities?” he asked. “This is an opportunity to address that.”

The first step in the plan is to extend the Legacy Trail 6.6 miles from the horse park to Georgetown. Christie Robinson chairs a steering committee that commissioned an engineering feasibility study, which was recently completed. The study estimates the total cost at about $8.3 million, including trailheads, bathrooms and other amenities. It could be built in four phases as money became available.

Georgetown recently awarded the Legacy Trail committee $25,000 as a match to a $100,000 federal grant that it will apply for this fall, Robinson said. That would move the design process forward.

Claude Christensen, mayor of Sadieville, said he sees the trail system as an opportunity to revitalize his town of 303 people at the northern tip of Scott County. Sadieville is applying for “trail town” status with state tourism officials. But it needs trails.

“It’s huge for Sadieville,” Christensen said. “It makes us a destination.”

Simpson, the tourism official, said many Scott County business and government leaders support trails development because they have seen the economic benefit that road cycling enthusiasts have had in the area.

The Bluegrass Cycling Club’s annual Horsey Hundred ride each Memorial Day weekend is based at Georgetown College. This year, more than 2,000 cyclists came from all over North America to ride Central Kentucky’s scenic back roads on marked routes ranging from 25 to 104 miles.

Georgetown hosted a downtown party for the cyclists, who filled Georgetown College’s residence halls and more than half of the 1,100 local motel rooms. A big group from Ontario, Canada, came for an entire week of cycling before the event.

An extensive trail network, along with Central Kentucky’s world-class cycling roads, could make Georgetown a major recreation destination, Simpson said.

“We’re at the starting point of something that could be phenomenal,” he said. “It could bring thousands of tourists to our community and enhance our own quality of life.”


Developing local food economy is focus of new Lexington job

June 16, 2014

As a child growing up in Gratz Park, Ashton Potter Wright often walked downtown to the Lexington Farmers Market with her parents, who were early owners in Good Foods Co-op.

“They instilled in me that it’s important to know where your food comes from and to support local growers and business owners,” she said. “It makes sense to me, and I hope to help make it make sense to other people.”

That will be a big part of Wright’s new job as Lexington’s first local food coordinator.

Wright1Wright, 29, started earlier this month in the pilot position, where she will work with Central Kentucky farmers to help them find markets for their meat and produce. She also will help educate and create more individual and institutional demand for locally produced food.

“With local food, you’re not only helping the economy and the environment, but you’re getting great, healthy, delicious food that’s grown by somebody nearby,” she said. “We’re keeping dollars in the region and improving the health of the region.”

Wright will be part of the city’s Office of Economic Development. The job is funded through private grants, agriculture development funds and $25,000 from the city. Steve Kay, an at-large member of the Urban County Council, worked for several years to create the job.

“It’s exciting, but it’s a bit overwhelming,” Wright said. “There’s so much that can be done and so much that needs to be done.”

Wright brings a strong background to the job. After graduating from Henry Clay High School and Rhodes College in Memphis, she worked at the Centers for Disease Control in Atlanta and earned a master’s degree in public health from Georgia State University while her husband, Jonathan Wright, went to Emory University’s law school.

Last fall, Wright finished her doctorate in public health at UK and went back to Atlanta for a fellowship at the CDC. She also worked in Lee County, helping create a program where local farmers provided food for schools.

Kay assembled an advisory committee a couple of years ago that includes a who’s who of local food players, including Nancy Cox, the new dean of the University of Kentucky College of Agriculture; chef and restaurant entrepreneur Ouita Michel; youth nutrition activist Anita Courtney and Mac Stone of Elmwood Stock Farm, a national leader in the organic farming movement.

Wright said she will begin by working closely with the advisory committee to assess needs and opportunities, both immediate and long-term.

“Everyone has an opinion about what needs to be done,” she said. “So these first few months are going to be spent listening and understanding.”

There also are good ideas to be gleaned in Louisville, where Sarah Fritschner, a former food editor at the Washington Post and The Courier-Journal, has been the farm-to-table coordinator since 2010.

“There’s a lot to be learned from her and also from cities across the country that are doing similar work,” Wright said, citing Baltimore and Asheville, N.C., as examples.

Wright sees opportunities to educate young people about the importance of healthier eating and local food. Wright previously worked with Courtney on her Tweens Coalition and Better Bites youth nutrition programs, as well as her effort to bring fresh produce to two small markets in low-income Lexington neighborhoods.

Much of Wright’s job will involve connecting local farmers to schools, hospitals and other institutions that could purchase their food. She said public schools already buy some local food, but could do much more if they had the right help.

Eventually, she hopes to develop more infrastructure for the regional food economy. Those include more local meat processing plants, such as Marksbury Farms in Danville, as well as aggregation, processing and distribution facilities for local vegetables and fruits.

Also, the region needs more commercial kitchens where farmers can take what they grow and turn it into value-added products, such as preserves and sauces, and process food for consumption off-season. Wright also is intrigued by the use of Internet technology to connect producers with consumers.

“People have been interested in local food here for years,” she said. “But there are so many people and groups working on it here now that the time feels really right for the next big step.”


Kentucky needs leadership for change, not the politics of fear

June 8, 2014

I have had mixed emotions since the U.S. Environmental Protection Agency announced its long-awaited plan to reduce coal-fired power plant pollution, setting a goal to cut carbon dioxide emissions 30 percent by 2030 from 2005 levels.

I felt happy that my government was finally taking some action to fight manmade climate change, which threatens humanity’s safety, prosperity and future.

But I felt sad as I watched a bipartisan majority of Kentucky politicians fall all over each other to condemn this long-overdue action. Pandering to public fear may be good politics, but, in this case, it is an irresponsible failure of leadership.

SenateCandidatesRepublican Sens. Mitch McConnell and Rand Paul called the EPA’s plan illegal and vowed to repeal it. (It is legal, according to a 2007 U.S. Supreme Court ruling.)

Not to be outdone, McConnell’s Democratic challenger, Allison Lundergan Grimes, launched an ad blitz repeating the coal industry’s “war on coal” talking points.

“The Obama administration has doubled down on its war on Kentucky coal jobs and coal families,” said another industry parrot, U.S. Rep. Andy Barr, a Republican from Lexington.

State House Speaker Greg Stumbo, a Democrat from Prestonsburg, called the pollution-cutting plan “a dumb-ass policy.”

Let us review the facts:

An overwhelming majority of climate scientists think manmade carbon pollution is contributing significantly to climate change. We are already seeing the disastrous results: more frequent killer storms, droughts, shrinking glaciers and rising seas.

Public opinion polls show that a substantial majority of Americans, even in coal-dependent states, understand these realities and want stricter carbon limits.

In addition, health experts say the EPA plan will reduce cancer, heart disease and lung disease through fewer emissions of mercury, nitrogen oxide and sulfur dioxide. The American Lung Association says the plan will prevent as many as 4,000 premature deaths in its first year alone.

So why all the political nonsense? It’s simple: the coal, utility and business lobbies that fund these politicians’ campaigns will see their profits suffer, at least in the short term.

The coal industry’s disinformation campaign portrays the desire for cleaner air and water as a “war on coal.” In reality, there are two “wars” on coal, and environmental regulation has only a minor role in each.

The first “war” is one on coal-company profits. It is being waged largely by natural gas companies, whose fracking technology has produced cheaper energy and hurt coal sales. Solar, wind and other renewable energy sources pose another threat.

The second “war” is being waged by coal companies and their political allies against miners and their communities. Kentucky lost about 30,000 coal mining jobs between 1979 and 2006, mostly because of industry mechanization. Add to that a historic disregard for mine safety. Kentucky legislators recently cut the number of state safety inspections at mines from six per year to four.

It is worth noting that the EPA’s new rule could have hit Kentucky much harder had it not been for the coal-friendly administration of Gov. Steve Beshear, a Democrat. Energy Secretary Len Peters pushed a plan, which the EPA adopted, to give states flexibility in achieving carbon-reduction goals. It set different targets for each state. Kentucky will be required to cut power-plant emissions by 18 percent, much lower than the national average of 30 percent.

Kentucky now gets more than 90 percent of its electricity from coal. The state has some of the nation’s cheapest power because the true cost of coal mining and burning to our health and environment has never been reflected in the rates.

America is gradually moving away from coal toward cleaner energy sources. This will happen no matter how loud and long Kentucky politicians scream. Unless this state acts aggressively to develop alternative energy sources to eventually replace diminishing coal reserves, Kentucky will be left behind — again.

Entrenched business interests have always predicted that each new environmental regulation would destroy the economy. It has never happened. Instead, regulation has sparked innovation that created new jobs and economic opportunities and made America a healthier place to live.

More limits on pollution will raise electricity rates in the short term. But Kentuckians will be rewarded with better health, a less-damaged environment, more innovation and a stronger economy in the future.

Change is hard, but it is necessary. Forward-thinking business people and citizens must demand that our politicians stop pandering to fear and become the leaders we need to make this inevitable transition as painless as possible. A brighter future never comes to those who insist on living in the past.