Summit Biosciences seeks tax break tied to jobs creation
Lexington-based Summit Biosciences COO Greg Plucinski hopes the Urban County Council can weigh a tax break's long-term benefits to the community against the city's short-term desperation for operating revenues.
Summit develops intranasal medicines and vaccines and could soon receive a tax incentive from the city to help keep the business growing. A first reading of a resolution to offer the company a 1 percent tax incentive was heard at a meeting of the Urban County Council on May 6. That tax incentive isn't, however, a freebie.
"That doesn't kick in until we create 22 new jobs with a minimum average salary of $50,000," Plucinski said. The company must create 11 full-time and nine part-time jobs in order to receive the incentive.
So far the company has created several positions and is looking to fill in the remaining vacancies.
"As we hire people, we pay very well. We need to pay well to attract the right kind of employee," Plucinski said.
As new employees relocate to Lexington, they pay taxes into the tax base. They also buy homes, contributing further to the city's economy, he noted.
"We just generate a lot of economic activity, especially during an expansion. We'll hire local engineering, electrical, heating and air conditioning firms. Although the city invested a little bit of money, they could get a huge return," Plucinski said.
Currently, Summit is working with "a publicly traded drug company" to develop a new intranasal drug, Plucinski said.
- By Emily Burton, contributing writer
LBX (Link-Belt) acquired by Sumitomo
Sumitomo (S.H.I.) Construction Machinery Co., Ltd. (SCM), a leading manufacturer of hydraulic crawler excavators headquartered in Tokyo, Japan, has acquired full ownership of LBX Company (LBX), headquartered in Lexington, Ky.
LBX was originally formed as part of a global alliance between SCM and Case Corporation and holds the manufacturing rights to SCM's excavator products in North and Latin America. LBX has been marketing and selling Sumitomo excavators, forestry, material handling and demolition products under the Link-Belt excavator brand name since the company's formation.
LBX spokesperson Lisa Bemis said jobs of the 47 LBX employees in Lexington were not affected by the company's sale to Sumitomo.
NGAS reports 1Q results
Lexington-based NGAS Resources (Nasdaq:NGAS) reported first quarter 2010 total revenue of $11.3 million compared to $17.2 million for the comparable quarter in 2009.
For the quarter, the company reported a net loss of $4.8 million, compared to a net loss of $1.4 million in first quarter 2009.
Results for the quarter reflect the impact of lower production, decreased partnership funding and third-party ownership of the Appalachian gas gathering system, partially offset by higher average realized prices.
An NGAS press release attributed most of the quarter's loss to non-cash and one-time charges related to the company's recent debt exchange.
Foreclosures, mortgage delinquencies in Lex-Fayette on rise
The rate of foreclosures among outstanding mortgage loans in the Lexington-Fayette area is 1.76 percent for the month of March, an increase of 0.50 percentage points compared to March of 2009 when the rate was 1.27 percent, according to new data from CoreLogic. Foreclosure activity in Lexington-Fayette is lower than the national foreclosure rate, which was 3.23 percent for March 2010, representing a 1.47 percentage point difference.
The Lexington-Fayette mortgage delinquency rate has increased, according to CoreLogic. Data for March 2010 shows 4.56 percent of mortgage loans were 90 days or more delinquent compared to 3.07 percent for the same period last year, representing an increase of 1.49 percentage points.
Pew backs Kentucky preschool expansion
The Prichard Committee for Academic Excellence has won the support of the Pew Center on the States for a fourth year in its work to expand access to quality preschool programs.
The organization has received a $200,000 grant from Pew, $25,000 of which is contingent on raising matching funds, for work in 2010 to bring advocates, policy and business leaders and service providers together to develop strategies for expanding quality early education programs through their "Strong Start Kentucky" initiative.
Strong Start Kentucky advocates for quality, voluntary pre-K for all three- and four-year-old Kentucky children through collaborative efforts that involve public community-based and Head Start programs.
Lexington Center brings back Food Show
Following up on a successful 2009 debut, the Kentucky Proud Incredible Food Show will return to Rupp Arena and the Lexington Center on Oct. 23-24.
Emmy Award-winning personality and acclaimed chef Giada De Laurentiis will offer two presentations.
The two-day consumer food show and marketplace will feature approximately 120 exhibitors, including Kentucky Proud producers and growers, specialty food companies, purveyors of cooking-related equipment and wineries.
Organizers anticipate approximately 10,000 food enthusiasts will attend. Tickets go on sale Friday, August 6.
For more information, call (859) 233-4567 or www.incrediblefoodshow.com
Japan/America Society of Kentucky to host 3rd annual business summit
The Japan/America Society of Kentucky is hosting its third annual
Japan/Kentucky Business Summit.
The summit, to be held at the Hilton Hotel in downtown Lexington on May 28, will address the question: "How can we build on our firm foundation?"
Featured speakers include New York Times senior business correspondent Micki Maynard and Jim Navolio, a veteran of Japan/Kentucky trade and Kentucky's commissioner for business development.
Learn more about the Summit by visiting
http://jask.org/summit.
Spotlight 'Fest schedules info meeting for businesses
Organizers of the Spotlight Lexington Festival, scheduled for downtown Lexington during the 16 days of the World Equestrian Games, will host two informational meetings for businesses and restaurants on Monday, May 17. The sessions will be held at 9 a.m. and 6 p.m. in council chambers of the second floor of the Government Center at 200 E. Main Street.
Speakers include Host Committee Chair Carolyn Richardson, LFUCG World Equestrian Games Liaison Krista Greathouse and representatives from Brown Forman. The agenda will include a brief update on Spotlight Lexington planning and new sponsors; ways businesses can get involved; and a Brown Forman and Spotlight Lexington partnership for an iphone application.
Businesses with events planned during WEG will be able to obtain information on how to get a free listing in the Official Event Guide being provided by Smiley Pete Publishing.
City pool schedule could change; financial savings to city projected
Several of Lexington's city pools are slated to open this month. However, the date at which they close could be altered, if a proposed resolution passes the Urban County Council.
At a regular meeting on May 6, Ninth District Council member Jay McChord introduced a motion to hear the first reading of a resolution that would close all city pools, with the exception of the city's four family aquatic centers, on Aug. 1. The family aquatic centers would close as scheduled on Labor Day.
Previously, council had considered a proposal to close Berry Hill and Douglas Park pools permanently.
"Having these two pools to close causes the people to say, 'Why us?'" McChord said. "I'm trying to find options that get us to the savings in a simplified way that's easier for people to understand."
Jerry Hancock, parks and recreation department director, said closing the five other pools in August wouldn't hurt the department's overall bottom line.
"In all candor, we do half of our swimming business in the month of June, we do a third of it in July and one-sixth of it in August," Hancock said. " Two things happen: kids get tired of swimming because they've been doing it for 10 weeks, but more importantly, the schools begin to open and the high schools kids have an opportunity to go back for band and football practice."
"August is our slowest time of the year. While you and I may think it's the hottest, they've already had an opportunity to do swimming for 10 weeks, and it's our least important month," Hancock said.
McChord said while closing Berry Hill and Douglas Park pools permanently would save the city $42,000, closing most pools on August 1 would save the city $135,000.
The closure of Berry Hill and Douglas park pools had been recommended due to low attendance numbers, he said.
McChord's resolution would keep these two pools open until August 1.
The aquatic centers - Woodland, Southland, Tates Creek and Castlewood - would open May 29, and the other city pools would open June 5. This is no deviation from what was originally scheduled.
The proposed resolution includes a $1 increase in admission prices previously considered by commissioners.
Council member Linda Gorton said time is needed for the public to have a say before the resolution comes to a vote. Gorton made a successful motion to schedule a public hearing on the fee increases. That hearing will be held at 7 p.m. on May 20 in council chambers at the Government Center in downtown Lexington.
In addition, a special Committee of the Whole budget work session will be held at 9 a.m. on May 11 to discuss budget issues, including the closing dates and increases in fees at pools, as well as a proposed fee increase at the city's public golf courses. - Emily Burton, contributing writer