Shakertown Roundtable full of food for thought

October 26, 2009

I wrote Sunday about last week’s Shakertown Roundtable, which featured former Federal Reserve Chairman Paul Volcker and included more than 50 of Kentucky’s most influential leaders in business, government, academia and philanthropy.

Given the complexity of the topic — economic crisis and recovery — and the caliber of the panel and participants, there was a lot to discuss and think about.

Here are a few additional notes from last Thursday afternoon’s conference in one of Kentucky’s most scenic settings, Shaker Village at Pleasant Hill:

■ One executive I found insightful was Paul Varga, president and CEO of the Louisville-based liquor giant Brown-Forman Corp. In stressful times like these, he joked, “You’ll all understand why I’m happy to be in the business I’m in.”

Varga said he understood some executives’ worries about a backlash of too much taxation and regulation after a period many people think had too little. Liquor has always been an easy mark for higher taxes, he said, adding that “our industry once had the ultimate government intervention: Prohibition.”

He noted that much of the economic crisis was caused by what people did with other people’s money and an abandonment of traditionally sound business practices. Varga said future prosperity will require companies to not just achieve revenue growth, but create value.

Brown Forman — and the entire bourbon industry — has remained relatively healthy by not taking on too much debt and by searching out new markets overseas and developing spinoffs such as the Bourbon Trail initiative around distillery tourism.

■ In response to a question, Volcker said ideology and economics don’t mix well. That’s because unpredictable human behavior can have a big effect on the economy.

“It’s not a rational activity,” he said of economics, adding that this crisis showed that free markets with little regulation can lead to greed, manipulation and disaster.

■ Louisville Mayor Jerry Abramson, who is running for lieutenant governor on Gov. Steve Beshear’s re-election ticket, reminded executives who criticized government spending on the social safety net that many average Americans are hurting.

“We have real families and real children who are going through some real difficulties,” Abramson said. The nation needs to take care of them, he said, not only because it’s the right thing to do but because they are the workers who will be needed to build the future.

■ Centre College President John Roush said most aging baby boomers won’t be able to enjoy the leisurely retirement they expected because our old economy and lifestyle expectations weren’t sustainable.

“We’re not going to get to go fishing every day,” said Roush, 59, who said he likes to fish.

But Roush said he is encouraged that today’s college students have different expectations. “They have a sense of possibility and optimism,” he said.

■ University of Kentucky President Lee Todd said America needs to renew its focus on research and development, advanced manufacturing and high-quality education. Kentucky students need more math and science — and more confidence in their abilities.

With the right education and training, Kentucky students can compete with anyone, said Todd, himself the product of a small town in Hopkins County. As an example, he mentioned UK students’ strong showing last week in the international solar house design competition in Washington, D.C.

Kentucky students need to start their own businesses, not just expect to work for someone else. And the state needs to emphasize entrepreneurship and business development, not just attracting employers from elsewhere.

“Kentucky people who start companies will stay in Kentucky,” Todd said. “We’ve got to create our own jobs.”

Kentucky Educational Television videotaped the Shakertown Roundtable and will show an edited version on Nov. 23 at 8 p.m. and at other times.

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We won’t fix economy unless we can change

October 25, 2009

Paul Volcker, who was chairman of the Federal Reserve under presidents Jimmy Carter and Ronald Reagan and is a top adviser to President Barack Obama, has earned a reputation as one of the rarest of creatures: a straight-talking economist.

Volcker was true to form Thursday, when he came to Kentucky to speak at the Shakertown Roundtable, a gathering of about 60 of the state’s most influential leaders in business, government, education and philanthropy.

The 82-year-old economist was blunt in his assessment of what caused this economic crisis and what’s needed to fix it. And he brought things back into focus when some executives tried to point fingers, shift blame and complain about recovery strategies.

“We spent, as a nation, more than we were producing,” Volcker said. Mix that with a real-estate bubble, reckless financial manipulation and too little government oversight, and it was a recipe for disaster.

“We were leveraging the economy … and then it all unraveled,” he said, adding that the recovery will be a “considerable slog” that could take years.

Volcker has advised Obama to restore legal restrictions, enacted after the Great Depression but repealed in the 1990s, that separated investment and commercial banking and prevented banks from becoming “too big to fail.”

The Obama administration has balked at Volcker’s suggestions amid industry opposition. But Volcker warned that without such reforms the nation could face a repeat of its current crisis in a few years.

After Volcker’s remarks, the 11 other panelists gave their views on the economy and the proper relationship between business and government. They included Gov. Steve Beshear, Louisville Mayor Jerry Abramson, the presidents of the universities of Kentucky and Louisville and several business leaders.

David Grissom, president of Mayfair Capital in Louisville, said he was depressed at the quality of national leadership. He complained about the huge amounts of money government is using to try to rescue the economy.

Julie Janson, president of Duke Energy in Kentucky and Ohio, lamented new government regulations on energy and utilities.

Churchill Downs Chief Executive Robert Evans warned this was a bad time to raise taxes and increase government regulation of business.

U of L President Jim Ramsey cited sobering statistics about Kentucky’s economic “blood bath,” such as the decline in manufacturing jobs in the past decade from 310,000 to 200,000 and the fact that Kentucky spends $9,000 a year on each public school student, $6,000 on each college student — and $19,000 on each prison inmate.

As each panelist took his or her turn, things turned gloomier. Then the last panelist, the governor, spoke.

Beshear said he thinks Kentucky is in better shape economically than many states and, with smart strategy and investment, the state could position itself to take advantage of future economic opportunities, such as advanced manufacturing.

“Until I heard from the governor, I was in a state of desperation,” Volcker deadpanned, adding that he agrees with Beshear’s optimism.

But, Volcker said, Kentucky and the nation must see the economic crisis as a “wake-up call” and make some fundamental changes.

Volcker also agreed with comments by UK President Lee Todd, who emphasized the need for more rigorous math and science education and more technology research that can be commercialized to create jobs.

Todd criticized the recent emphasis on the service economy: “We can’t create wealth by serving hamburgers to each other.”

In the best line of the day, Volcker said Americans need to shift away from “financial engineering” and focus once again on civil, mechanical and electrical engineering.

We need to regain our leadership in technology development and manufacturing, he said, rather than churning out so many business school graduates who are focused on making big, quick and easy profits by manipulating money.

If there’s one thing this year’s Shakertown Roundtable made clear, it is this: Economic recovery will require us to figure out how to prosper in a new and different global economy, rather than simply trying to get back what we have lost.

Centre College President John Roush, commenting from the audience, perhaps said it best: “I think we are going back to a place of well-being. But it’s a different place.”

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Human resources are Kentucky’s future

October 18, 2009

I’ve always found it ironic that Kentucky was considered more innovative and successful in the early 1800s, when it was on the edge of the American frontier, than during the past century, when it was at the geographic center of a booming nation.

Maybe success isn’t so much about where you are physically as where you are mentally.

The Kentucky Long-Term Policy Research Center’s annual conference in Louisville on Thursday looked at the usual problems that vex this state: health, education and economic development.

But much of the discussion focused on new ways of thinking about and tackling those problems.

Doug Henton, a Versailles-born author and consultant who heads a California company called Collaborative Economics, said Kentucky’s economic future could be much different than its past.

Natural resources, such as rivers and mineral wealth, will be less important in the future. What will be much more important is how human resources are developed.

Globalization of the economy is changing the importance of place and the strategies that states must use to create economic success.

Economic development strategies that focus on tax breaks, cheap labor and low-cost energy will no longer work. That’s because industries that depend on those things have either moved work offshore or eventually will.

What will be important is “quality of life” — creating a place where the best and brightest people want to live and the most innovative companies want to set up shop.

That makes a clean environment important, as well as smart land use and growth strategies, good urban planning and good transportation systems.

The most successful businesses now tend to be small- and medium-size companies that embrace change and are good at networking. Because collaboration is important, companies tend to cluster in areas where ideas can feed off one another.

Local and state governments are often either too little or too big to effectively address issues that will be important in the future, such as growth strategies and transportation, Henton said.

Breaking down old political barriers and promoting regional collaboration will become essential.

Northern Kentucky has had some success with regional cooperation, as has the Louisville area since metro consolidation. Central Kentucky? Not so much.

From his work around the country, Henton said, he has observed that the most successful regional initiatives are bottom-up and collaborative. They are ones in which leaders from government, business, universities, non-profits and citizen groups work together across traditional political boundaries.

“Focus on people and relationships, and not organizations and structures,” Henton said. “It’s about group creativity and regional stewardship, and the regions around the country where this happens seem to have more vibrant economies.”

The basic foundation for any region’s success in the future will be a well-educated population that is able to seize economic opportunities.

“We need well-rounded people who are creative as well as having the basic skills,” he said.

Kentuckians must become more comfortable with change, and more innovative in how they deal with it. One good example is in the way Kentuckians approach energy and the environment.

Peter Meyer, an environmental expert and University of Louisville professor, said climate change is real, and further worldwide restrictions on the burning of coal are inevitable, whether we like it or not.

But while Kentucky faces many challenges, it also has some opportunities.

Kentucky state government is doing good work in improving energy efficiency, especially with the construction of new public schools. The state’s first “net zero” energy use school building will open in Bowling Green next fall.

But state government could be doing more to promote those projects as examples, he said.

Rather than pledging $300 million in state funds for a coal-liquefaction demonstration project, Kentucky officials should put that money toward conservation efforts.

Home electricity consumption is 24 percent above the national average, which means we have a lot of opportunities to do better.

But it will involve a mental shift from Kentucky’s devotion to coal — and to doing things the way they’ve always been done.

“We need to become risk-takers in this environment,” Meyer said.

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Discussing health care reform, without the hysterics

October 5, 2009

It’s no wonder people are frustrated by the debate over health care reform.

The issues are complex. None of the proposed solutions is perfect. And, more often than not, the arguments seem to dissolve into emotional oversimplification.

Besides, there’s a lot of money at stake. Whole business models have been built around the inefficiency of America’s health care industrial complex.

Last Thursday, the Lexington Forum hosted one of the better discussions I’ve heard on the subject.

The panelists were Dr. Michael Karpf, the University of Kentucky’s executive vice president for health affairs; Dr. John White, president of the Kentucky Medical Association; and Melodie Schrader, executive director of the Kentucky Association of Health Plans.

Some points of view weren’t represented, and the discussion lasted only an hour — not nearly long enough to do the subject justice. Still, it was enlightening.

Here’s what I took away:

The key issues are access, cost and quality. Some people want to change the entire health care system. Others want to preserve the status quo — or at least their current coverage or company’s profits.

But the key is figuring out how to control costs, maintain the quality of care and provide access to more of the millions of Americans with little or no access to affordable health care.

Karpf noted that a significant portion of uninsured Americans are young working people. That’s because employer-sponsored health insurance is becoming more scarce because of costs.

America has too few doctors, especially in small towns and rural areas. White estimated that Kentucky needs 2,300 additional doctors to meet national standards.

Many of us will have to give up something. Increasing access and controlling costs will mean people who have insurance now will have less freedom to choose expensive procedures that have little proven effectiveness.

They also won’t be free to forgo coverage. Schrader said the only way to guarantee that everyone can get access to insurance is to require everyone to have it.

Health care companies and insurers must give up some profits. For example, White said, Medicare Advantage programs — enacted during the Bush administration and criticized as government subsidies for insurance companies — should be eliminated, with the money going directly to pay for more Medicare patient care.

Malpractice litigation must be addressed. Republicans see tort reform as a panacea; Democrats dismiss it as insignificant. But the fact is many doctors feel compelled to order expensive tests and treatments of questionable value for fear they’ll be sued if they don’t.

A better balance must be found between protecting patients from medical malpractice and forcing doctors to practice costly “defensive” medicine.

We can’t be distracted by sideshows. For example, some reform critics warn that government bureaucrats will overrule doctors’ medical judgment. White said that is done too often now by insurance-company bureaucrats.

Another sideshow is the debate over coverage for illegal immigrants. As Karpf said, they’ll be treated one way or another to some degree — and somebody will pay for it. They’ll come to emergency rooms after accidents, when they are about to deliver babies or when suffering with serious illnesses or communicable diseases.

We must take more personal responsibility. Karpf noted that the health care economy now is based on fee-for-service, rather than prudent management. That encourages more spending.

Plus, he said, there’s not enough incentive for patients to live healthy lifestyles and make wise choices.

One key to lowering health care costs is to make the cost structure more transparent — and personal. People will use health care services more wisely if they see it’s in the best interest of their own pocketbooks.

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Bluegrass destroys growth, but not forever

October 2, 2009

I returned to Lexington this week after a long vacation to find that CentrePit had been transformed into a grassy meadow, and workers were installing a classic horse-farm fence around the perimeter.

The past half-century of Lexington’s growth has been defined by grassy meadows and horse-farm fences giving way to homes, office buildings and shopping centers.

Dudley Webb may go down in history as the only Lexington developer to do just the opposite. And he did it in the center of town, on a block that has been developed urban space since the 1700s.

Seriously, though, I have to give Webb credit. I’ve always thought his CentrePointe development was poorly conceived and not in the community’s best interests. The fact that he can’t seem to find financing for the $250 million project speaks to some of its issues.

But in this instance, Webb is doing the right thing: Making his demolition site look attractive until he and landowner Joe Rosenberg decide the block’s ultimate fate.

Other local developers of stalled projects, such as at the corner of Richmond Road and Man O’ War Boulevard, and abandoned eyesores, such as Lexington Mall, should follow his lead.

Thank you, Dudley Webb.

Photo by David Perry

Fencing is installed around the CentrePointe block. Photo by David Perry

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Old Governor’s Mansion becomes guest house

September 12, 2009

FRANKFORT — Margaret Robinson Robertson lived in the Old Governor’s Mansion in the early 1840s, when son-in-law Robert Letcher was the governor. Legend has it that her ghost appears whenever evil befalls the house.

The way the place looks now, don’t expect to see her any time soon.

The 211-year-old mansion has just undergone a privately financed $1.5 million face lift so it can take on a new role as the state’s guest house and official entertainment space for the governor.

The magnificent renovation was a statewide, all-volunteer effort involving more than 300 people, including designers, decorators, contractors and donors who each adopted small parts of the mansion.

The renovation will be unveiled later this month with a series of big-ticket events, proceeds from which will benefit the Kentucky Executive Mansions Foundation and Kentucky Equine Humane Center. The home will then be open for $10 public tours Sept. 19 to Oct. 3.

“We wanted the house to be a welcoming spot for people who come to Kentucky,” said David Buchta, state curator and director of the Division of Historic Properties. His office oversaw the renovation with the mansions foundation and Kentucky Historic Properties Advisory Commission.

“It’s a great shrine to Kentucky’s history,” said Steve Collins, chairman of the commission and son of former Gov. Martha Layne Collins.

The home was first occupied in 1798, two years before the White House. For many years, it was the nation’s oldest executive residence.

The mansion housed 33 Kentucky governors until 1914, when the current governor’s mansion was built beside the “new” Capitol. From 1956 to 2002, the old mansion housed 10 lieutenant governors.

Eight U.S. presidents have visited the mansion, from James Monroe to Bill Clinton, as well as such notables as Henry Clay, Aaron Burr and William Jennings Bryan.

“There’s no other house in Kentucky that has been used like this one — that has the stories and history and reputation,” said Collins, a Shelbyville lawyer and funeral director.

The General Assembly put up money to build the governor’s mansion in 1795 after the state’s first governor, Isaac Shelby, convinced lawmakers that a rented log cabin just wouldn’t do. It was completed in 1798.

Although the mansion’s federal-style exterior was rather plain, it was called the Palace when Shelby’s successor, James Garrard, became its first occupant. It was the first home in Frankfort with carpet. A crowd gathered when the city’s first piano was delivered to its parlor.

Two men who helped build the house later lived there: Thomas Metcalfe, a stonemason who helped lay the foundation, was governor from 1828 to 1832; and Letcher, who helped lay the Flemish-bond brick, was governor from 1840 to 1844.

The house hasn’t been occupied since 2002, when then-Lt. Gov. Steve Henry moved out to make way for a renovation. Last year, the idea emerged to turn the home into a state guest house, like Blair House in Washington.

(Francis Preston Blair, by the way, was a Frankfort journalist who moved to the nation’s capital in 1830. Seven years later, he took up residence in the Pennsylvania Avenue house that now bears his name.)

First lady Jane Beshear, former first lady Phyllis George and Meg Jewett, owner of the L.V. Harkness & Co. gift shop in Lexington, led the renovation effort. They and others recruited volunteers and donors from all over.

Longwood Antique Woods of Lexington donated flooring for the downstairs powder room. The wood came from the Lexington barn of 1937 Triple Crown winner War Admiral.

Louisville artist Sandy Kimura donated nine weeks of her time to paint a mural around the main hall in the style of early 19th-century Zuber wallpaper. It incorporates Kentucky scenes, such as Daniel Boone looking across the Cumberland Gap and the gentlemen on the state seal shaking hands, for which Buchta and Collins posed in period wigs.

“I’m going to get it out and wear it to some of the events,” Collins joked.

The house now contains a treasure trove of Kentucky furniture and art. There’s a rare 1815 cherry Sheraton sideboard in the dining room, thought to be the work of a Maysville cabinetmaker. Other items include chairs from Henry Clay’s law office, and modern Appalachian furniture and crafts that furnish a third-floor bedroom.

Other furniture and art has been donated or is on loan from the state, the Kentucky Historical Society, the Speed Museum, the Filson Club, the Art Museum at the University of Kentucky, the Rebecca and Jay Rayburn Collection and several individuals.

Recognizable to many Kentuckians will be four original paintings by Paul Sawyier, whose Kentucky landscapes from a century ago remain popular as prints.

“Every room has something significant,” Buchta said. “Without the generosity of a lot of people, this project wouldn’t have been nearly as successful.”

As a former resident of the mansion, Collins said he is especially appreciative of all of the people who have made it a showplace.

Collins was a student at Georgetown College when his mother was elected lieutenant governor in 1979. He lived in a third-floor bedroom and remembers the mansion as a busy place that was used for many public functions.

Collins said he encountered many people in the mansion, but not the ghost of Margaret Robinson Robertson.

“We never saw her,” he said. “But we felt very safe when we lived here.”

  • If you go

    Kentucky Mansion Celebration

    ■ First Ladies’ Luncheon, noon, Sept. 15, $110.

    ■ Brunch in the Garden with Jon Carloftis, 11 a.m. Sept. 16, $110.

    ■ Governor’s Barbecue & Unbridled Spirits, 7 p.m. Sept. 17, $210.

    ■ Preview Gala, 7 p.m. Sept. 18, $300.

    ■ Public tours, Sept. 19-Oct. 3. $10.

    For tickets and more information, go to www.kymansioncelebration.org or call (502) 226-6440.

    Click on each thumbnail to view complete photo:

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Obama speech flap: Did adults learn anything?

September 8, 2009

With all of the public attention focused on President Barack Obama’s speech to the nation’s school children, I had to wonder: Did the adults learn anything?

Obama urged kids to study hard and not give up, even if they don’t like some classes or things are tough at home. He reminded students that each of them has special abilities, and it’s their responsibility to develop them.

The president acknowledged that, like many of us, he was “a little bit of a goof-off” when he was young. He told kids that success takes hard work, and nobody else will do it for them.

It was a speech that could have been delivered by any responsible leader, Republican or Democrat, liberal or conservative.

AP Photo by Stew Milne

AP Photo by Stew Milne

It was a pep talk about personal responsibility, not politics. But from the way the right-wing fringe and some Republican Party officials reacted to it beforehand, you would have thought Obama was planning to sprout horns and advocate devil worship.

There was a lot of bluster about Obama “overstepping his authority,” even though previous presidents have made similar speeches. Timid school officials offered opt-outs for students whose parents objected. Cowardly school officials skipped the speech all together.

Steve Robertson, chairman of the Republican Party of Kentucky, last week called Obama’s plan to speak to children “very concerning and kind of creepy” and an attempt “to circumvent parents” and “gain direct access to our children.”

Robertson and some talk radio entertainers focused on an ill-chosen phrase that federal education bureaucrats used in material prepared for teachers. The phrase, suggesting teachers could have students write letters to themselves about how they can “help the president,” was reworded to how they “can achieve their … education goals.”

It seemed like a lame excuse for objecting to a presidential speech, because that’s exactly what it was.

Some GOP leaders have no interest in working with Obama and other Democrats, whether it’s rebuilding the economy, reforming health care or anything else. They just want to see Obama fail.

The talking heads of the right-wing media relentlessly bash Obama. They shamelessly distort facts, incite fear and call anyone who disagrees with them radical, socialist or even communist. It’s a profitable business model, because gullible listeners lap it up.

Obama is no radical, unless you think “middle of the road” means the right shoulder. But there are radicals out there, on both sides of the political spectrum, and this episode is a good reminder that responsible people should be wary of them.

American politics has always been messy, but it works pretty well. In robust, fact-based discussions among responsible people, ideology usually gives way to artful compromise and practical solutions. One of history’s best examples was Lexington’s own Henry Clay.

On the other hand, history’s ills can usually be traced to political or religious ideology and extremism, from Mao’s China and Hitler’s Germany to the Spanish Inquisition and modern Islamic terrorism. Those perpetrators believed they were right and their opponents were evil, and they had no reservations about saying or doing whatever it took to win.

Obama’s agenda and proposals should be carefully studied and vigorously debated. Thoughtful discussion could lead to good compromises, better ideas and ultimately solutions for the nation’s problems, some of which can be traced to past examples of ideology trumping common sense.

That has become more difficult, though, because modern communications technology amplifies the voices of irresponsible extremists, ideologues and the willfully ignorant people who follow them.

The best lesson to take away from the president’s speech to school children is that personal responsibility is a good concept for adults, too.

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A world view on America’s health care debate

September 1, 2009

The national debate over health care reform is clouded by ideology, distortion, old myths and misinformation, especially when it comes to the way health care works in other countries.

T.R. Reid, who for many years was a foreign correspondent for the Washington Post, tries to cut through some of those with solid reporting in his timely new book: “The Healing of America: A Global Quest for Better, Cheaper, and Fairer Health Care.”

Click here to read a Washington Post op-ed piece by Reid that gives an overview.  Click here to read Business Week magazine’s review of the book. Click here to listen to an extended interview Reid did with National Public Radio.

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Take dueling out of oath; but don’t stop there

August 30, 2009

State Rep. Darryl Owens has a good idea; he just hasn’t taken it far enough.

The Louisville Democrat proposed legislation last week that would end a 160-year-old requirement that Kentucky state officers, legislators and lawyers swear they haven’t been dueling.

The state constitution requires them to swear that: “… (I) have not fought a duel with deadly weapons within this State nor out of it, nor have I sent or accepted a challenge to fight a duel with deadly weapons, nor have I acted as second in carrying a challenge, nor aided or assisted any person thus offending, so help me God.”

The oath never fails to elicit giggles and snickering at otherwise dignified swearing-in ceremonies, and Owens thinks that is bad for Kentucky’s image. Besides, the state’s last known duel was fought in 1867.

I’m for anything that improves Kentucky’s image. And there’s a lot about our 1891 constitution that needs changing. But this issue is worth a closer look.

The Kentucky Encyclopedia says there were 41 duels fought in the state between 1790 and 1867. Sixteen men died, but there were never any prosecutions. In an attempt to end the illegal practice, the oath has been part of Kentucky’s constitution since 1849.

When you think about it, the oath was a smart idea that worked pretty well. That’s because duels were generally fought by ambitious men, the same men who wanted to be Kentucky’s lawyers, legislators and state officials.

So instead of just deleting the archaic anti-dueling language, as Owens wants to do, let’s think about modern illegal activities that persist among the ambitious men and women who now seek to be Kentucky’s lawyers, legislators and state officials.

With that idea in mind, here’s my proposed rewrite of Section 228 of the Kentucky Constitution:

I do solemnly swear (or affirm, as the case may be) that I will support the Constitution of the United States and the Constitution of this Commonwealth, and be faithful and true to the Commonwealth of Kentucky so long as I continue a citizen thereof, and that I will faithfully execute, to the best of my ability, the office of …. according to law.

And I do further solemnly swear (or affirm) that since the adoption of the present Constitution, I, being a citizen of this State, have not lined my pockets nor enhanced my political standing by any of the following means:

■ Paving constituents’ driveways and private roads; buying votes; conspiring with highway contractors to rig or award bids; arranging sweetheart deals to lease or sell my property to public agencies;

■ Accepting money, favors or jobs from lobbyists and special interests; giving government jobs or huge taxpayer-funded raises to my friends, relatives or supporters; steering public work to my businesses; doing special favors for my friends, relatives and campaign contributors; eating high on the hog at fancy restaurants or visiting strip clubs on the public tab; so help me God.

My proposed oath would narrow the field of potential lawyers, legislators and state officials, perhaps urging more honest men and women to get involved in the law and public life. Plus, can you think of a more effective system for term limits?

OK, so maybe it wouldn’t eliminate giggles and snickering at public swearing-in ceremonies. But, like the once-useful dueling ban, it would do a lot to improve Kentucky’s image — and a whole lot more.

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Newtown Pike shows we should insist on excellence

August 25, 2009

After announcing Tuesday that the state would find money to bury power lines along the Newtown Pike extension, Gov. Steve Beshear remarked that if we hadn’t done this project right, we would have regretted it for decades.

He’s right about that. And it’s scary how close it came to being done wrong.

Many people deserve credit for quickly changing the course of this project and saving it from mediocrity, including Beshear, Mayor Jim Newberry and several Urban County Council members.

But after city officials take their bow, they need to take a hard look at why this sort of thing happens too often in Lexington.

The Newtown Pike Extension has been on the drawing board in one form or another since the 1930s. As dreams turned into designs over the past few years, city officials promised the project would create a beautiful new gateway into Lexington, complete with a “signature” bridge.

Somehow, though, those dreams and promises didn’t make it into the state Transportation Cabinet’s blueprints.

Many people — including Urban County Council members — just assumed the power lines would be buried, rather than strung up on poles like those that clutter much of Lexington’s skyline. Not so.

Architects Graham and Clive Pohl, brothers who own property along the Newtown Pike corridor, sounded the alarm after Kentucky Utilities contacted them about buying an easement to string lines.

That created public outcry, prompting Newberry to ask Beshear for state help in paying to bury utilities and the governor to shake loose some Transportation Cabinet contingency money.

“Citizens got our attention on this issue,” Beshear said.

It was a good save all around. But the bigger issue is why the save was needed.

Lexington has come a long way recently in creating a vision for excellence in downtown development. Part of it is a desire to “clean up for company” before the Alltech FEI 2010 World Equestrian Games. Part of it is the realization that quality of life is a key component in economic development.

But if Lexington is to stop settling for second-best, we need to find the missing link that too often keeps vision from becoming reality.

Settling for second-best is how we get buildings like the suburban-style High Street Post Office and the federal prosecutors’ building on Vine Street, which looks like a cheap suburban hotel. It’s how we allow the city’s historic core to be demolished for ego-driven, pie-in-the-sky projects like CentrePointe and the World Coal Center.

We’re getting better with vision, but we often seem to lack the structure, leadership and will to make it happen.

The Downtown Development Authority has traditionally seen its mission as facilitating the plans of private developers, although, since the CentrePointe fiasco, Chairman David Mohney has talked about the need to serve a broader public interest. Still, the DDA has limited power.

Great cities seem to find ways to make developers, businesses, government agencies and utilities build in ways that are good for the whole city and not just themselves.

These cities don’t do it by trying to write rules for everything, or creating dense bureaucracies that discourage development. They do it by requiring that major projects undergo public scrutiny and professional review by people with expertise in urban design and planning.

Last winter, I wrote about how the nine-member Downtown Commission has guided the revitalization of Columbus, Ohio’s urban core. Many other cities also have effective design review boards to make sure new parts of the urban landscape fit in and contribute to the whole. Those boards have broad authority, and they don’t settle for mediocrity.

Distillery District developer Barry McNees said the ability of officials to find a way to bury power lines along the Newtown Pike extension is a promising sign for future development in Lexington.

“It begins to define the kind of urban DNA we want for downtown,” McNees said. “A lot of the concern was, if we’re willing to compromise at the beginning, where will we end up?”

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Fear “socialized” medicine? We’ve had it for decades

August 20, 2009

There’s a fascinating audio clip on YouTube. It’s from a 1961 phonograph record in which a politically ambitious entertainer named Ronald Reagan tries his best to scare people about “socialized medicine.”

The threat he warns about is legislation to create the program we now know as Medicare.

So here we are, nearly a half-century later, with talk radio entertainers and some Republican politicians trying their best to scare people about “socialized medicine.”

They see a threat in almost any meaningful reform of America’s inadequate health care insurance system.

Some of their scare tactics, such as baseless claims about plans for “death panels,” are truly outrageous. Former Alaska Gov. Sarah Palin might actually believe some of the crazy things she says, but other GOP leaders who lend legitimacy to such hogwash are simply seeking political advantage. They seem to have no interest in improving health care; only in seeing President Barack Obama fail.

What makes the recent tone of the national health care debate so ridiculous is that Americans have had “socialized medicine” for decades, and it has worked pretty well.

The popular Medicare program that Ronald Reagan warned against — and later tried to deny he ever opposed — covers 43 million people who are disabled or age 65 and older. Then there’s government health care for veterans and insurance for public employees. Members of Congress have especially good government health care plans.

My biggest fear about health care reform is that we won’t get any. My biggest concern about Obama’s approach is that it isn’t ambitious enough, especially now that he seems willing to give up on a government insurance option.

There are many improvements that can be made in our current system with electronic medical records and various cost-containment strategies. But I think the long-term solution is some form of single-payer health insurance involving privately delivered medical care — like Medicare.

Why wouldn’t it work to open Medicare, or something like it, to more people? That could provide a safety net. Then, individuals or groups could buy supplemental private insurance if they wanted more coverage and could afford it, as Medicare recipients often do.

Every major industrialized nation except ours has some form of universal health care. Are the “socialized medicine” systems in Canada, Australia, Britain and other European nations perfect? Of course not.

But here’s what you see in the United States that you don’t see in those countries: millions of people with no health care coverage. That includes nearly 600,000 Kentuckians, or 14 percent of the state’s population, according to U.S. Census estimates.

Here’s what else you don’t see in those countries: Millions more people who are scared of losing health insurance coverage if they get sick or lose their job. People who can’t get coverage because of “pre-existing” conditions. And people who see their life savings depleted because they get sick.

You also don’t see businesses struggling to pay spiraling health care costs for employees and retirees while trying to compete in an increasingly global economy with foreign businesses that don’t bear such burdens.

Talk show entertainers and Republican partisans have done an effective job of whipping up the frightened, ill-informed citizens we see at public meetings and protests across the country.

But if they want to rant about “socialized medicine,” they should put their money where their mouths are.

Members of Congress who oppose a government health insurance option for citizens should give up their own government coverage. Let them try to buy a similar plan in the private market.

Then they, the media hacks and other self-described “freedom-loving conservatives” should march down to their local Medicare office and renounce their “socialized medicine” benefits, now and in the future.

Yes, I know. Fat chance.

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You had to look hard for substance at Fancy Farm

August 2, 2009

FANCY FARM — The governor was vacationing in Florida. Members of Congress were working in Washington. The audience was smaller and less rowdy than usual. Even the traditionally oppressive heat stayed away from this year’s Fancy Farm Picnic.

With no statewide elections this year, the best reason to make the long drive to Graves County on Saturday was the barbecue, fresh vegetables and homemade pies prepared by the families of St. Jerome parish.

The focus of this year’s political speaking was the 2010 U.S. Senate race, which turned into a wide-open contest last week, when Republican incumbent Jim Bunning, 77, became the last person in Kentucky to realize it was time for him to retire.

Three Republicans and four Democrats who are seeking their parties’ nominations for the seat next May spoke to the crowd. I found them all disappointing. Click here to hear the speeches.

Democrat supporter Thomas Kirby of Clinton was among those at the 129th annual Fancy Farm Picnic. Photo by Tom Eblen

Democrat supporter Thomas Kirby of Clinton was among those at the 129th annual Fancy Farm Picnic. Photo by Tom Eblen

When they weren’t beating up on each other, the Democrats were blaming eight years of Republican government for the nation’s economic problems. The Republicans were stoking fear about what might happen as a result of Democrats’ efforts to solve those problems.

The sharpest words came from the two Democratic frontrunners, Lt. Gov. Daniel Mongiardo and Attorney General Jack Conway.

Mongiardo, a Hazard physician and coal industry advocate, tried to portray himself as the candidate of the common man. He attacked Conway, of Louisville, for his Duke University education and alleged “silver spoon” background.

Then Mongiardo tried to link Conway to President Barack Obama’s “cap-and-trade” legislation, which is designed to reduce pollution from burning coal. It was a stretch. Besides, Fancy Farm seemed like an odd place to argue, in essence, that concerns about man-made climate change are unfounded.

Western Kentucky’s trees remain bent and broken from last fall’s bizarre hurricane winds and last winter’s crippling ice storm. It’s usually about 100 degrees at the Fancy Farm Picnic. This year, temperatures never left the low 80s, while, across the country, usually balmy Seattle is gripped by a heat wave.

Conway, whose supporters held up signs that said “Mongiardo doesn’t know Jack,” took a few verbal swipes at the doctor and showed he knows how to cuss. The attorney general talked about how much he has worked on consumer-protection issues.

Secretary of State Trey Grayson’s speech was straight from the conservative playbook, complete with sneering references to Obama, Senate Majority Leader Harry Reed and House Speaker Nancy Pelonsi.

Grayson needed to play to the GOP’s conservative base. His main challenger is Bowling Green eye doctor Rand Paul, son of Texas congressman and former presidential candidate Ron Paul, the darling of libertarians.

Paul attacked Republicans and Democrats alike. He talked about balanced budgets and held up a thick stack of paper, saying senators shouldn’t vote on any bill they haven’t fully read. At one point, somebody in the GOP cheering section behind me yelled, “You’re boring!”

Three virtual unknowns cast themselves as alternatives to politics as usual: Democrats Darlene Fitzgerald Price, a former U.S. Customs agent from McCreary County, and Maurice Sweeney, a businessman from Jefferson County; and Republican Bill Johnson, a Todd County businessman.

The Fancy Farm crowd is always more interested in heckling than listening, so it’s hard to tell which candidates’ messages might resonate with average voters. For me, the most relevant words came from State Auditor Crit Luallen, once you filtered out her obligatory Democratic partisanship.

Crit Luallen

As citizens have seen jobs disappear, Luallen said, “they have watched banking scandals unfold, the meltdown on Wall Street, the disclosure of extravagant corporate perks and irresponsible spending of their tax dollars by public leaders. The American people have had it up to here. They’ve said enough is enough.”

What voters want is accountability, and she said it is not a partisan issue.

“These are times that demand leaders with integrity to restore trust, leaders with principles to act responsibly, leaders with the courage to take on powerful interests and leaders who will insure accountability for your hard-earned money,” she said.

“It’s time to honor the public’s demands for greater accountability. Every public leader is a guardian of the taxpayer’s trust. And we must all recommit ourselves to honor and hold sacred that trust.”

It was a good speech. But I couldn’t help but think Luallen should have delivered it facing the stage rather than the audience.

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Hear the speeches from 129th Fancy Farm Picnic

August 1, 2009

Listen to the Fancy Farm Picnic speeches of the three Democrats and three Republicans running for their parties’ nominations to the U.S. Senate in 2010. They’re listed here in the order they spoke to the crowd in Graves County on Saturday. (Click on the link to hear each candidate’s speech.)

Lt. Gov. Daniel Mongiardo (Democrat)

Attorney Gen. Jack Conway (Democrat)

Secretary of State Trey Grayson (Republican)

Darlene Fitzgerald Price (Democrat)

Bill Johnson (Republican)

Maurice Sweeney (Democrat)

Rand Paul (Republican)

In addition to the 2010 Senate candidates, here are remarks from State Auditor Crit Luallen (Democrat)

Attorney Gen. Jack Conway, left, and Secretary of State Trey Grayson chat on the stage before the speaking began Saturday at the 129th annual Fancy Farm Picnic in Graves County. Conway, a Democrat, and Grayson, a Republican, are seeking their parties' nominations for the U.S. Senate in 2010. Photo by Tom Eblen

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Neighborhoods should welcome, not fear trails

July 26, 2009

One of the biggest obstacles faced by communities trying to develop bicycle and pedestrian trails is the attitude of NIMBY: Not in my back yard.

Some people fear trails will bring crime into their neighborhoods, even though common sense would tell them that criminals prefer to travel in vehicles on their already plentiful roads.

Some homeowners worry that trails will hurt their property values, even though the experience nationwide is that trails actually raise property values. Why? Because, once built, trails become a popular neighborhood amenity.

A great example of NIMBY is playing out in the Madison County city of Berea. Since the 1970s, there have been plans for a trail linking the city to Indian Fort Mountain, site of some great hiking trails and an outdoor theater.

The Indian Fort Shared Use Trail would be about four miles long and restricted to pedestrians and non-motorized vehicles. It would be built on land owned by the city or Berea College, which is donating an easement. No private land would be used.

However, a 4,000-foot section of the proposed trail has become controversial because, although it would be on college-owned land, it would pass near some suburban homes.

Berea’s City Council was to vote on the trail last week, but there wasn’t a quorum. For more than an hour, though, citizens commented on the trail. Most lived in the suburban homes, and they opposed the trail.

There were many reasons: They wanted the money spent on other things. They didn’t want strangers near their homes. They didn’t want any development that might disturb wildlife on the college-owned land.

“They’ve had this uninterrupted view and, you might say, use of the college property, and now some other use might be made of it,” said Paul Stolte, a Berea resident who supports the trail.

In addition to helping people get from Berea to Indian Fort, the trail would help residents in that growing suburban area have a way to get into town that doesn’t require a motor vehicle.

“I think it’s going to be an important transportation network,” Stolte said.

Neighborhood trail opponents have proposed an alternative route that would take the trail on the other side of the college property — near other homes instead of theirs.

“That is not the solution; I’ve already started getting calls from those people saying ‘we don’t want it behind our back yard,’” said City Council member Violet Farmer.

“I don’t think (the trail) would be the problem people perceive it to be,” Farmer said, although she understands the concerns.

“I would like to see a network of bike and pedestrian shared paths in town and throughout town,” she said. “It’s a really good project. I don’t know if we can find a solution or not.”

It’s clear that the successful cities of the future will be those that provide residents with safe places to exercise as well as environmentally friendly alternatives to driving cars.

The Indian Fort Shared Use Trail will be back on the Berea City Council’s agenda on Tuesday. Will council members give in to the “not in my back yard” sentiment? Or will they vote for the greater good and the community’s future?

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Cell phone driving bans only a matter of time

July 21, 2009

In the blink of an eye, I could become a killer.

You could, too.

Not intentionally, of course, but a killer just the same.

In the back of our minds, we’ve always known it. But the news this week has focused attention on the dangers of talking, texting and e-mailing while driving.

Two consumer groups, Public Citizen and the Center for Auto Safety, released documents Tuesday showing that since 2003, federal officials have suppressed research showing the dangers of drivers using either hand-held or hands-free cell phones.

Officials were concerned about angering Congress, even though cell phone distraction was thought to have caused 240,000 accidents and 955 fatalities in 2002.

“We’re looking at a problem that could be as bad as drunk driving, and the government has covered it up,” Clarence Ditlow of the Center for Auto Safety told The New York Times.

Of course, it doesn’t take a scientist to know that talking, texting and e-mailing while you’re driving could be dangerous.

It’s common sense, even if we hate to admit it.

In our multi-tasking world, it’s just too tempting to use drive time to make business calls or chat with friends.

Who, even while barreling down the highway, can resist the blinking red light of a BlackBerry daring you to look at your latest e-mail?

It’s an addiction. I know, because I’m an addict.

This is a good week to think about highway safety, and not just because of news reports.

On Monday, the Kentucky State Police launched Blue Lights Across the Bluegrass to crack down on dangerous driving. The campaign, which runs through July 31, is focused on Fayette and 36 other counties that have had four or more of Kentucky’s 405 traffic fatalities this year.

State police say 85 percent of Kentucky traffic accidents are caused by driver distraction of some kind.

But Kentucky troopers, like those in most other states, can’t do much about cell phone-distracted drivers.

Only five states and the District of Columbia prohibit the use of hand-held cell phones while driving, although 21 states ban it for novice drivers.

No state bans drivers from using hands-free cell phones, even though studies show that the mental distraction of a conversation is almost as great as the physical distraction of operating a phone.

Only 14 states prohibit drivers from texting.

Kentucky bans only cell-phone use by school bus drivers. Plus, it is one of eight states that prohibit local governments from passing their own stricter laws.

Reps. Reginald Meeks and Tom Burch of Louisville have introduced legislation for years that would ban the use of hand-held cell phones while driving.

“We’ve gotten hearings, but it has never gone anywhere,” Meeks said Tuesday. His interest in the issue was prompted by “two near mishaps I had while talking on the cell phone,” he said.

Meeks said some lawmakers have objected to limiting drivers’ “freedom.”

It’s the same lame argument that slowed the adoption of common-sense seat belt laws and made it legal for people to ride motorcycles without wearing helmets.

The New York Times reported that 170 bills were introduced in state legislatures this year to address distracted driving, including cell phone use. Fewer than 10 of those bills became law, in part because lawmakers like to talk on their cell phones while they drive.

But I suspect it’s only a matter of time before things change.

Remember when drunken driving was treated with a wink and a nod? It took high-profile campaigns by Mothers against Drunk Driving and other groups to make it socially and legally unacceptable.

What will it take to make us acknowledge the danger of gadget-impaired driving?

“Unfortunately, it might take a severe, highly visible accident,” Meeks said. “But why should we have to wait for somebody else to die?”

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Lyric Theatre’s rebirth a long-awaited dream

July 16, 2009

Sometimes a dream deferred can come true.

You could see that dream in the faces of many of the 200 people who gathered Thursday morning at the corner of East Third Street and Elm Tree Lane to break ground for the long-delayed Lyric Theatre and Cultural Arts Center project.

The crowd included community leaders and city officials, some of whom had worked for 18 years to restore the Lyric, an icon of Lexington’s African American community.

It also included many longtime Lexingtonians who have been waiting 46 years for their Lyric to reopen.

They’ll have another year to wait before the cavernous shell of a theater is rebuilt as a city-owned performing arts and community center.

“It means a number of years of frustration are over,” said Robert Jefferson, a former Urban County Council member who helped start the long crusade. “This is a very emotional time for me.”

After a 1987 fire damaged the Kentucky Theatre on Main Street and the city announced plans to restore it, Jefferson urged then-Mayor Scotty Baesler to appropriate $250,000 for the Lyric.

It was only fair, Jefferson said: “As a native Lexingtonian, I hadn’t had the right to go to the Kentucky Theatre because of segregation.”

But it would take years of struggle and legal disputes before Mayor Jim Newberry, the Urban County Council and a dedicated group of community activists would succeed in putting together the Lyric’s $9 million renovation and operating plan.

Many of those who came out remembered the Lyric as the place where black Lexingtonians came to see movies, vaudeville shows and jazz musicians from 1948 until the theater closed in 1963.

Tassa Wigginton said her childhood Saturdays were spent at the Lyric, visiting with friends, eating popcorn and watching cartoons and movies.

“We came with a quarter; 10 cents to get in and 15 cents to spend,” she said. “One day when I was a teenager my daddy let me come with him to see a stage show and I thought I was in seventh heaven.

“This was really the community center,” Wigginton said. “This and Dunbar High School were the pride of the black community.”

Don Garrison said he began working at the Lyric selling tickets and ended up as its last manager. “I was here the night we shut it down,” he said, noting the irony that desegregation ruined the Lyric’s business.

Julian Jackson Jr., another early supporter of the Lyric’s restoration, said he hopes the new facility will preserve the East End’s colorful history.

Many people know the area was once home to Lexington’s pre-Keeneland race track and the famous black jockeys Isaac Murphy and Jimmy Winkfield. But Jackson said they may not know of other neighborhood greats, such as the opera singer William Ray and the inventor Joseph Bailey Lyons.

As with the Lyric, desegregation led to decline in the historically black East End — a decline that has been in rapid reverse over the past decade, thanks to work by the Urban League, city government and many others.

S.T. Roach, the legendary basketball coach at the old all-black Paul Laurence Dunbar High School, was thrilled to be able to attend Thursday’s ceremony.

“I’ve been waiting for this for many years,” said Roach, 93, who once worked at the Lyric and ran an ice cream bar next door.

Roach recalled the vitality of the old East End and thinks the Lyric’s restoration could kick the neighborhood’s renaissance into high gear.

Former councilman George Brown agreed.

“I think the new Lyric will become a meeting place, a community place, a place for new artists to be discovered,” Brown said. “Who knows what could be spawned here, from Third and Elm Tree Lane? Only the mind can imagine.”

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Biking to Washington to speak up for the planet

July 14, 2009

How’s this for a summer adventure: Dozens of young people are riding bicycles across the country and meeting in Washington. There, they plan to lobby their members of Congress and Interior Secretary Ken Salazar on climate-change and environmental sustainability issues, such as bicycle transportation.

Six of the travelers, ages 16-21, arrived in Lexington from Shelbyville on Monday afternoon. They had started in Pueblo, Colo., a month ago, averaging about 50 miles a day with all of their gear loaded on their bikes.

The trip is called The Trek to Reenergize America, www.trektoreenergize.org, and this group is chronicling its trip on its own Web site, www.fromthesaddle.org.

“We’re excited to be here,” said Remy Franklin, 18, of Taos, N.M., who will be starting Dartmouth College as a freshman in the fall.

Franklin and his five companions were camping Monday night in the Southland neighborhood, in the yard of Tim Buckingham, a staff member of Kentuckians for the Commonwealth and a member of Lexington’s Bike Polo league. Buckingham invited some of his cycling friends over and put on a cookout for the visitors.

The travelers planned to meet up with other groups Saturday in Charleston, W.Va., and together make their way to Washington by July 26.

Franklin said the group planned many of its overnight camping stops, but not all of them. “A number of times, we’ve rolled into towns and just met people,” he said. “We’ve been pretty well taken care of. Everyone has been so friendly when they find out what we’re doing.”

The group found itself in Louisville last weekend during the annual Forecastle Festival, which featured Widespread Panic, The Black Crowes and other musicians interested in environmental activism. The travelers didn’t know about the festival, but a Louisville host called the promoter, who gave them free tickets.

“People are so generous to us,”  said Lucy Richards, 20, of Durango, Colo., who will be a freshman at Stanford University in the fall. “We meet tons of people every day and tell them about what we’re doing. There’s so much interest in the environment and climate change.”

Travelers Lucy Richards and Remy Franklin do a video interview with Shane Tedder, sustainability coordinator at the University of Kentucky. At right is Brad Flowers of Lexington. Photo by Tom Eblen

Travelers Lucy Richards and Remy Franklin do a video interview with Shane Tedder, sustainability coordinator at the University of Kentucky. At right is Brad Flowers of Lexington.

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CentrePointe update: Timing is everything.

July 8, 2009

Today’s meeting of the Courthouse Area Design Review Board offered a few updates on CentrePointe, the massive downtown development project that 16 months after its announcement remains a mirage.

Darby Turner, the attorney for developer Dudley Webb, said Webb is in Europe working to secure financing for the $250 million project from the estate of a mysterious, unidentified investor who is said to have died last fall, leaving the hotel-condo-office tower in limbo.

“We hope to have that (financing) in 30-to-60 days,” Turner said. But he quickly acknowledged, “We’ve been saying that, frankly, for some period of time, but all in good faith.”

The three review board members present seemed understandably skeptical. A year ago, they accepted Webb’s argument that he needed quick permission to demolish a dozen buildings on the block, including one dating to 1826, because his development was too important to delay.

Turner said today that once financing is secured, excavation work could begin within a month. Digging down three stories for an underground parking garage will take about three months. Then, foundations must be built before the proposed 35-story tower can begin rising from the ground.

The big issue, of course, is financing. The global economic meltdown has stopped similar projects worldwide dead in their tracks. The demand for big four-star convention hotels and luxury condos just isn’t what it used to be.

Because CentrePointe sits inside the historic overlay district of the old Fayette County Courthouse (now the Lexington History Museum), the review board had to give permission for the old buildings to be demolished and CentrePointe to be built.

The board gave that one-year permit last November. The permit won’t expire until November, but Turner was appearing to ask for a one-year extension. Now.

The board was confused. Why would Webb want an extension that would expire in July 2010 rather than asking in the fall and getting one that wouldn’t expire until November 2010?

Turner said having more lead time would “give assurance to our investor that this project is still doable in Lexington.”  He also said he wanted to avoid someone trying to challenge an extension in the fall.

What Turner didn’t say — but several people were thinking — was that it also would move the next renewal request, if there is one, to July 2010 instead of November 2010, when the mayor and Urban County Council members must stand for re-election. CentrePointe’s public credibility isn’t what it used to be.

Asked about that after the meeting, Turner said politics had nothing to do with his request.

Review board Chairman Mike Meuser, a lawyer, wanted to delay action on Turner’s request until the board’s next regular meeting in October. But a staff attorney told him that wasn’t allowed under city ordinance.

“It just doesn’t make any sense to me, either for the applicant or the community or the board to reauthorize these permits now,” Meuser said.

Still, the board ended up approving the extension request. Legally, it seemed to have no other choice.

In other news, Turner said J.W. Marriott, which Webb says plans to put a luxury hotel in CentrePointe, wanted interior design changes that will require some architectural revisions, such as moving elevators.

But Turner said the exterior design hasn’t been changed. I guess that means it still looks like some of those developments I saw going up around Atlanta in the 1980s.

While the review board was meeting at city hall, a bulldozer was rumbling around the CentrePointe site, three blocks west on Main Street. It was spreading fill dirt recently brought in so grass can be planted.

Despite the latest “30 or 60 days” estimate, I’m not holding my breath. CentrePointe may defy the global economic odds. Construction may really begin in a few months.

But I think a better bet might be on who will get next summer’s mowing contract for the empty block in the center of Lexington.

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Internet success story with a Lexington link

July 8, 2009

One of the November election’s big stories was how Barack Obama and other Democrats used the Internet to raise hundreds of millions of dollars in small contributions and connect with their supporters.

Much of that strategy and technology was developed by Blue State Digital, a company founded by four young guys who experimented with what the Internet could do for politics during the 2004 presidential campaigns of Howard Dean and Gen. Wesley Clark.

One of those guys, Ben Self, is a Lexington native. Not only that, he still lives here, although that seems to be a relative term these days. Last week he was in Portugal. Before that, Brazil, Mexico, Italy, Australia and the Dominican Republic.

Business is booming for Blue State Digital. Politicians and parties, businesses, universities, unions and non-profit organizations around the world are hiring the company to try to get some of Obama’s online magic for themselves.

“It seems non-stop these days,” Self said when I first met him at a downtown coffee shop in April. “We’ve never done any marketing. All of our clients are people who come in through our Web site and say, ‘Can you help us with this?’ It’s overwhelming.”

In the past year, Blue State Digital has doubled its staff to more than 100 people. It has headquarters in Washington, D.C., a technology center in Boston and offices in New York, Los Angeles and London.

Self, who earned bachelor’s and master’s degrees in electrical engineering and computer science from the Massachusetts Institute of Technology, said he spends several days each week on the road, but always tries to get back to Lexington for the weekend.

Even when he’s here, Self has conference calls at odd hours with clients around the world. Earlier this week, there was an evening conference call to Australia, where one of his clients is the prime minister.

Self lives in an old house in the Aylesford neighborhood with his wife, Rebecca. They met as students at Paul Laurence Dunbar High School. A former teacher who also has a degree from MIT, she is the education director for Seedleaf, a local non-profit that develops sustainable food sources for people at risk of hunger.

“We love Lexington,” Self said. “We would never leave.”

After studying in Boston and living in Madison, Wis., founding Blue State Digital gave the Selfs the flexibility to move back to Lexington and be close to their families.

Self knew the election campaign would be all-consuming. While partner Joe Rospars worked as the Obama campaign’s new media director, Self was technology director for the Democratic National Committee, where he managed an overhaul of its Web site, computer infrastructure and national voter file database.

Blue State Digital’s pace hasn’t slowed much since November. The company continues to work for the DNC and Obama’s Organizing for America arm, as well as a growing list of progressive politicians and parties worldwide.

Blue State Digital also is developing other lines of work, such as helping universities build fund-raising relationships with alumni. The company’s 200 clients include the University of Florida, the American Red Cross, the Carter Center, the Tony Awards, the Prince of Wales’ Rainforest Project, the Sundance Film Festival and Wal-Mart Watch, which criticizes the retailer’s employment practices.

Clients are interested in Blue State Digital’s technology and expertise in building online communities.

“Technology is enabling people to organize quicker, more effectively and cheaper … and (public) engagement is tearing down all the walls,” Self said. “It’s about talking to people honestly and making them feel a part of your organization instead of customers of your organization, no matter what it is.”

As the name implies, Blue State Digital’s political and commercial work reflects the progressive values of its partners and employees, Self said. Several politicians and companies have approached the company and been rejected because they weren’t compatible with those values.

Eventually, the whirlwind will subside. But Self thinks Blue State Digital has a bright future as people’s use of the Internet matures. He finds the work fascinating, and he hopes he can continue doing it from Lexington.

“I feel like I got a fantastic education here in the public school system,” Self said, adding that Dunbar’s math, science and technology magnet program prepared him well for MIT.

If Lexington wants to keep and attract more smart people like Ben Self, it must continue to focus on the infrastructure and quality-of-life issues that technology entrepreneurs and workers look for in a city.

“I do wonder what would happen if I didn’t have this company,” Self said. “Would I be able to stay here? For a technologist, there’s not a huge number of opportunities here.”

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Would slots at tracks be long-term cure or poison?

June 25, 2009

I’ve had several seriously ill friends and relatives suffer through chemotherapy. They do it because it is a short-term poison that often results in a long-term cure.

With the General Assembly now meeting in special session, I can’t help but wonder if the proposal to allow slot machines at horse-racing tracks doesn’t amount to chemotherapy in reverse: a short-term cure that could turn out to be long-term poison.

It’s easy to dismiss some of the arguments for slot machines, such as balancing the state budget and funding new school buildings. Expanded gambling won’t pay for state government and education in the long run any more than it has in other states.

The proper way to do that is a modern tax system that raises enough money so Kentucky can invest in creating a successful 21st century economy and society. The only way to create that modern tax system is for citizens and politicians to be honest with themselves and one another, and make some tough choices.

The problem I have with gambling as a substitute for honest taxation is that it’s based on the myth of easy money.

Sure, slot machines at racetracks would prompt some Kentucky gamblers to lose their money here rather than in other states. It also might attract some out-of-state gamblers.

But a lot of that money would go into the pockets of gambling interests, soak up discretionary income now spent elsewhere in Kentucky’s economy and create more social costs. If slot machines at racetracks were a panacea, the states that now have them wouldn’t be struggling with many of the same problems Kentucky faces.

The only reason to even consider slot machines, in my view, is to preserve Kentucky’s horse industry. It is one of Kentucky’s claims to fame and a vital piece of an agricultural economy that protects irreplaceable rural land from development.

As the Herald-Leader’s John Cheves reported last Sunday and Monday, the horse industry’s arguments for slot machines may be overstated, but the problems are real. Kentucky’s race purses and breeder incentives are no longer competitive with other states. No business can survive if it’s not competitive.

While the horse industry’s public face may be the wealthy owners of Central Kentucky’s showplace farms, its heart and soul are the small breeders and owners, merchants, farriers, veterinarians and others who make their living in the industry. They will follow the money, and who can blame them?

For Kentucky’s horse industry to be healthy, racing and breeding must be economically competitive. Other states have become more competitive with money generated by expanded gambling. That might be a quick cure for Kentucky’s horse industry, but could it be a long-term poison?

The danger, as Cheves’ articles pointed out, is that slot machines at racetracks can go from subsidizing horse racing to crowding it out. Kentucky’s long-term economic interests aren’t tied to the owners of racetracks so much as to the horse breeders, owners and workers who depend on them.

Horse racing thrived during the 20th century because it was the only way many people could gamble. That’s no longer the case. There are now many quicker, cheaper and more accessible ways to gamble — and, it seems, new ones are being invented every day.

The only way for horse racing to survive is for the industry to build a fan base around the enjoyment of watching and wagering on competition among equine athletes.

Putting slot machines at racetracks would clearly be in the best short-term interests of both state government and the horse industry. But what about the long term? That’s the real issue the General Assembly must face.

In the long run, will slot machines improve Kentucky’s economy and quality of life or detract from it? Will they help save the horse industry or hasten its demise?

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