Tag: Philanthropy

In FoodPort’s sudden failure, a rare defeat for Louisville’s blue-chip philanthropists: the Brown family

FoodPort rendering 600
An aerial rendering of 24-acre site at 30th Street and Muhammad Ali Boulevard.

By Jim Hopkins
Boulevard Publisher

For the past two years, developers of the West Louisville FoodPort worked mightily to bring urban farming and as many as 250 good jobs to the heart of a neighborhood yearning for a better future. Mayor Greg Fischer said the project would “change the look and feel of Russell forever.” Their ambitious, $35 million plan was going so well, one of the world’s foremost advocates of organic food paid a headline-grabbing visit last year: Prince Charles, heir to the British throne.

Stephen Reily
Reily

But yesterday, the entire enterprise collapsed when the non-profit developers, Seed Capital Kentucky, abruptly announced they’d lost a linchpin partner, and without enough time to find a replacement. “We don’t have a way to put it together,” Seed Capital co-founder Stephen Reily said. “We are deeply disappointed.”

Many, many other people were disappointed as well: the mayor, who’d pushed the project as a centerpiece for revitalizing the Russell neighborhood, only to see it steadily scaled back amid community infighting; some 150 residents who helped shepherd the project past months of political hurdles, and the Russell councilwoman, Cheri Bryant Hamilton, “heartbroken” last night over its failure, The Courier-Journal said.

But less publicized was the distress almost certainly felt by a high-profile Louisville family who had invested heavily in its development: the Browns, founders of the spirits giant Brown-Forman. It was an unusual defeat for a family that’s often in the vanguard of high-profile causes ending in resounding success.

Christy Brown
Brown

The Browns were there at critical junctures for the FoodPort, including last year’s goodwill tour by Prince Charles and his wife Camilla, the Duchess of Cornwall. In a speech at the Cathedral of the Assumption on that overcast Friday in March, the CJ reported at the time, “the prince credited his visit to the persuasive powers of Louisville philanthropist Christina Lee Brown, matriarch of the family that controls Brown-Forman.”

Indeed, in 0ne photo with the newspaper’s online story, the unidentified woman in an orange coat and strands of pearls, beaming in the royal couple’s wake during one of their walkabouts, is Christina, known to many in Louisville as Christy.

Augusta Brown Holland
Holland

As one of the city’s best-known philanthropists, she and her immediate family have formed the core of the extended Brown family’s support of Seed Capital. Her daughter, Augusta Brown Holland, an urban planner and investor, is one of the non-profit’s six board members. Another daughter, Brooke Brown Barzun, has a more direct line to Buckingham Palace: Her husband, Matthew Barzun, is U.S. Ambassador to the United Kingdom.

A tale of IRS tax returns

The Browns donate multimillions of dollars annually to charities from coast to coast, although especially in Louisville. But they don’t often seek attention for their contributions.

Prince and Christina 300
On the CJ: Camilla, Christy and Charles.

In fact, Seed Capital only hints at the family’s hefty financial support,
on a difficult-to-find page of its website with a barebones alphabetical roster of “funders.” Of the 16 names listed, six are Brown family members or their personal charitable foundations. A seventh is the source of their $6 billion fortune: Brown-Forman, the nearly 150-year-old producer of Jack Daniel’s and other well-known brands. And an eighth, the Community Foundation of Louisville, is home to at least 10 individual Brown donor-advised funds.

Brown family foundation public IRS tax returns fill in details. In 2012-2015, six of the foundations donated a combined Continue reading “In FoodPort’s sudden failure, a rare defeat for Louisville’s blue-chip philanthropists: the Brown family”

Roadhouse whiffs Q2 sales, and shares plunge 8%; McD done with antibiotics-fed chicken; Kindred closes $39M Arkansas deal; and Pizza Hut workers in S.C. score $50 touchdown

A news summary focused on 10 big employers; updated 8:11 p.m.

TEXAS ROADHOUSE said today it missed second-quarter revenue estimates, and also disclosed that same-store sales in the current quarter had slowed vs. Q2. The results were released after markets closed. In after-hours trading, shares tumbled 7.9% to $43.94. The Louisville-based steakhouse chain said earnings were 47 cents per share on revenue of $508.8 million. Wall Street had forecast EPS of 45 cents and $509.8 million in revenue (Investors Business Daily and press release). Today’s report came less than a week after several analysts downgraded Roadhouse’s stock, sending shares down 6%.

KFC bucket of chickenKFC: Raising pressure on KFC to follow suit, McDonald’s said today it’s completely stopped buying chickens raised with antibiotics meant for humans, a step completed months ahead of schedule. The chain previously estimated the change would be completed by March 2017 (CNBC). The longtime KFC critic on the issue, the Natural Resources Defense Council, reiterated its call for the Yum unit to stop buying from chicken suppliers using antibiotics. “KFC,” the group said today, “stands out as the signature chicken purveyor that is far behind” (NRDC).

KINDRED and the Arkansas Department of Health said they had completed a previously announced agreement for the Louisville hospital and nursing company to buy the state agency’s in-home health care operations for about $39 million. The deal includes licenses to provide home health, hospice and personal care services throughout the state. Kindred won the award through a bidding process (press release).

AMAZON shares shot up to a new record high today — $770.50, up 1.5% — before closing lower at $767.74. The retailer’s stock is now up 43% from a year ago vs. a much smaller 3% for the broader S&P 500 index (Google Finance). Amazon employs 6,000 workers in the Louisville area at mammoth distribution centers in Jeffersonville, and in Bullitt County’s Shepherdsville. (More about Amazon.)

Ford DAV car
One of the newest DAV vans.

FORD received a city building permit today to proceed with $14 million of planned improvements at its Kentucky Truck Plant on Chamberlain Lane (Courier-Journal). Also today, the automaker said it donated another eight vans to the DAV Transportation Network, a volunteer group that takes ill and disabled veterans to VA medical centers across the country. The automaker said today it has now given 207 vehicles to the group over the past 20 years; the program dates back 94 years to when founder Henry Ford provided Model Ts as transportation for disabled vets (press release). In Louisville, Ford employs nearly 10,000 at its truck and vehicle assembly factories; more about its local operations.

Cam Newton
Newton

PIZZA HUT employees in Spartanburg, S.C., didn’t learn the mysterious customer in black who showed up 15 minutes after closing time for a cheese pizza was Carolina Panthers quarterback Cam Newton until after he’d driven away. But he did leave a big tip last Thursday, paying $50 for the pie. “It definitely came in handy,” manager Amanda McCluney told WCNC, “because I was actually short $50 because I’m moving and I needed that to go towards my U-Haul and my storage unit” (WCNC).

In other news, U.S. Senator Mitch McConnell said there’s a “great likelihood” that he’ll seek a seventh term in 2020. “I’m at the top of my game,” McConnell, 74, told WKYT in Lexington. “I think I’ve been effective in serving our people, and there’s a great likelihood I’ll run again” (Associated Press via ABC). In office since 1985, the Republican is Kentucky’s longest-serving U.S. senator (Wikipedia).

Kosair’s 40-year affiliation with Norton-run children’s hospital ends bitterly

Kosair Children's Hospital logoUnder a new settlement of a suit it brought against Norton Healthcare in 2014, the Kosair Charities foundation will make a multimillion-dollar payment to Norton, and lose naming rights to Kosair Children’s Hospital downtown. Still, Kosair’s payment will only a fraction of the $117 million it had pledged to Norton over 20 years, according to The Courier-Journal.

Kosair and Norton teamed up in the late 1970s as long-term care for children became more complex. In 1981, Kosair merged its 58-year-old children’s hospital with Norton’s, creating Kosair Children’s Hospital. Kosair then expanded its support of children’s health care to what is now more than 90 agencies statewide.

In the year ended Sept. 30, 2015, it donated $6 million to dozens of charities, according to the group’s IRS tax return for the year. The single-biggest grant went to Kosair Children’s Hospital: $3.6 million. On the surface, the vast majority of its grants went to charities with a clear health-care focus. A handful of unexpected recipients stand out, including the Kentucky Center for the Performing Arts ($10,000) and Kentucky Friends of the NRA Foundation ($7,500). More about Kosair Charities.

Updated 4:55 p.m.: The return’s Schedule O says the NRA grant was for gun safety lessons for children. (And thanks to a Facebook friend for pointing that out.)

Fund for the Arts raises $9 million, but campaign illustrates risk of shifting Louisville economy

The Fund for the Arts said it received $8.7 million in contributions during its fundraising campaign ended last month, up slightly from last year’s $8.6 million. The money will be distributed to more than 100 charities, schools and other nonprofits to support arts programs, according to The Courier-Journal.

Fund for the Arts logoBut in announcing the figures, the 67-year-old organization warned Louisville’s economy has made it harder to raise more money, especially when big contributions from companies such as GE Appliances and Humana may be threatened by ownership changes.

The Humana Foundation is one of the fund’s biggest supporters. Of the $8.3 million it gave to charity in 2014, $366,000 went to the arts fund, according to the foundation’s most recent IRS tax return. Only six other charities got more:

With $179 million, the Humana Foundation is the fourth-largest foundation in Louisville, according to Boulevard’s database of richest nonprofits. While it’s legally separate from the company, their leadership overlaps. The foundation’s five directors are Humana CEO Bruce Broussard; General Counsel Christopher Todoroff; board member David A. Jones Jr.; his father, company co-founder David A. Jones Sr., and Chairman Michael McCallister, a retired Humana CEO and former chairman.

Michael McCallister
McCallister

It’s unclear whether Aetna would change any of those officers — and the foundation’s giving, too — assuming the Hartford insurer completes its $37 billion purchase of Humana. That deal is subject to final regulatory approval, a hurdle that’s recently grown higher within the Department of Justice’s antitrust division.

Related: As GE Foundation gets new chief, its Louisville ties are less certain after Haier deal.

Top U.S. health official: competition key to insurance markets in Humana-Aetna deal; British Pizza Huts are 😋 about their 🆕 menus; and Amazon adds 10th Calif. center

A news summary focused on 10 big employers; updated 5:23 p.m.

Pizza Hut emoji menu
An emoji expert wrote the new menus.

HUMANA: The Obama administration’s top health official highlighted the importance of competition to insurance markets, as the Justice Department is poised to decide on two massive deals among four of the health-plan industry’s biggest players: Humana-Aetna’s $37 billion tie-up, and Anthem-Cigna’s $48 billion. But Health and Human Services Secretary Sylvia Mathews Burwell declined to comment on her department’s view of the two massive deals. “When there is competition, that creates downward price pressure, and it also creates upward quality pressure,” Burwell said in a brief interview in Fort Dodge, Iowa (Bloomberg).

PIZZA HUT: Six British Pizza Huts have unveiled menus written entirely in emojis, all in time for Sunday’s World Emoji Day. “Many of the items look easy enough to translate, with one pizza option including pictures of a tomato, basil plant, a green heart and a mushroom with the vegetarian ‘v’ sign next to it,” says the Daily Mail. “A crown, chicken and drumstick is slightly more obscure.” But if it all gets too difficult for some customers, there’s a traditional menu on hand (Daily Mail). Here’s an English-to-emoji translator.

YUM: Financial news site Seeking Alpha has published a transcript of Yum’s second-quarter conference call with analysts on Wednesday (Seeking Alpha).

AMAZON today disclosed plans to open its 10th California distribution center, in Sacramento. It’s the fourth center the retailer has announced for California alone over the past four months, and is expected to create more than 1,000 full-time jobs (press release). Amazon has more than 120 centers worldwide, including two in the Louisville area with a combined 6,000 employees, in Jeffersonville and Shephardsville.

FORD posted its best first-half for total European vehicle and passenger car sales since 2010, and best commercial vehicle sales since 1993 in its 20 traditional European markets (press release). The company’s philanthropic arm, the Ford Motor Company Fund, said it would award $400,000 in scholarships and grants to support programs encouraging Latino students to graduate from high school (press release).

And the U.S. Postal Service started selling first-class “forever” stamps today that commemorate four pickup trucks, including the 1948 Ford F-1 — the first F-Series truck — and the 1965 Ford F-100:

pr16_056

Ford’s Kentucky Truck Plant employs 5,100 workers, producing F-250 and F-550 Super Duty pickups, plus Expeditions, and Lincoln Navigators.

KFC: In the U.K.’s Plymouth, a 46-year-old man branded “too fat to work” on national television has vowed to chain himself to land set aside for a new KFC, in protest of the plans. Stephen Beer, who once gorged on three takeaways a day and weighed more than 420 lbs, is on a mission to raise awareness of childhood obesity, and says he’s “disgusted” by the thought of more fast-food chains in the city (Plymouth Herald).

In other news, presumptive GOP White House nominee Donald Trump Continue reading “Top U.S. health official: competition key to insurance markets in Humana-Aetna deal; British Pizza Huts are 😋 about their 🆕 menus; and Amazon adds 10th Calif. center”

Roadhouse stock hits new record high; Yum shares climb 3% on second-quarter earnings report; and Trump reportedly picks Indiana’s Pence for VP

A news summary, focused on 10 big employers; updated 5:02 p.m.

Texas Roadhouse vs S&P
Texas Roadhouse stock (blue) outgunned the S&P 500 index over the past year.

TEXAS ROADHOUSE shares traded at a new record high today: $47.33, before closing slightly lower at $47.02, up 36 cents, or less than 1%. The company’s stock is up 24% from a year ago vs. a much smaller 4.2% gain in the broader S&P 500 index.

YUM‘s stock closed moments ago at $88.27 a share, up $2.53, or 3% on a better-than-expected second-quarter earnings report, released after markets closed yesterday afternoon. The fast food restaurant giant also raised its profit outlook for all of 2016 to 17% from an earlier 12%. Shares have been roaring so far this year, jumping 17% vs. a smaller 5% gain in the broader S&P 500 index (Google Finance).

KFC: The Kentucky Fried Chicken Foundation will award $1.2 million in college assistance to 600 hourly restaurant employees across the country this month (Portsmouth Daily Times).

FORD declared a regular quarterly dividend of 15 cents per share, payable Sept. 1 to shareholders of record July 28 (press release). The automaker also said it will release second-quarter financial results at 7 a.m. ET on July 28 (press release). Ford shares closed at $13.59, up 11 cents, or less than 1%. The current dividend yield is generous 4.4%.

AMAZON said it will hold a conference call to discuss its second-quarter results July 28 at 5:30 p.m. ET; the report itself will be released shortly after markets close that day (press release).

Smaller noose

UPS: About 15 people gathered yesterday outside the shipper’s Maumee, Ohio, distribution center to protest two nooses (photo, left) found hanging in the building, after photographs circulated widely on Facebook and Twitter.

“We want justice. We want accountability,” Julian Mack told WTVG. “There’s no place for nooses in Lucas County.”

Company spokeswoman Susan Rosenberg said UPS had confirmed the nooses’ presence, and fired the worker responsible when he arrived for work Tuesday evening. Maumee is 18 miles southwest of Toledo. (Blade and WTVG).

Trump and Pence
Trump and Pence.

In other news, presumptive GOP White House nominee Donald Trump will choose Indiana Gov. Mike Pence as his running mate, multiple media outlets are now reporting, including The New York Times and The Wall Street Journal. The New York billionaire’s choice of Pence had been widely expected in recent days in advance of the start of the Republican National Convention in Cleveland, starting Monday.