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Smith & Nephew Sues Fired Engineers for Breach of Contract, Other Alleged Offenses

By Lindsay Jones

Orthopedics giant Smith & Nephew is suing nine former employees for $56 million or more over breach of contract, misappropriation of trade secrets, civil conspiracy, and other allegations related to a knee replacement instrument. The company also has filed a temporary restraining order against them.

In its 29-page complaint, S&N accuses David T. Mehl, Luke Gibson, Megan Rumery, Andrew J. Wald, Ashley M. Deken, Carey L. Bryant, Kaleigh Ross, Patrick Conway, and Bonnie Walker of trying to use their insider knowledge to form their own entity. All nine were fired last week.

“The recently uncovered conspiracy involves several engineers, their managers, the department supervisor, and a director who committed overt acts with the collective intent to use S&N’s trade secrets and confidential information to start a competing business and intentionally and maliciously interfere with and disrupt S&N’s ongoing business,” according to the court documents.

Most of the defendants are Memphians and two have Mississippi addresses. Attempts to reach them were unsuccessful, and an attorney for Smith & Nephew referred all inquiries to the company, which issued a statement.

“Smith & Nephew takes intellectual property rights seriously and always seeks to protect it for the benefit of our patients and customers,” the statement reads.

At issue in the case is Smith & Nephew’s patient matched instrumentation program for knee replacement surgeries. Marketed under the name Visionaire, it allows surgeons to fit knee replacements more accurately using a customized molded guide, or template, that shows them how much bone to remove.

This increases surgical efficiency and shortens the amount of time patients are under anesthesia. Smith & Nephew engineers customize the guides based on preoperative images of patients’ bones.

Smith & Nephew contends that Mehl and his colleagues, who were in charge of working on patient cases at the company’s Brooks Road facility, felt it was trying to gain their knowledge and eliminate their jobs.

“Mehl stated that S&N wanted to keep the Visionaire group as a case processing group, learn what the group knew, and then outsource all of the Visionaire processing, essentially leaving the group without a purpose,” court documents say.

To circumvent this, Mehl and the others planned a “mass resignation” to start their own business using the technology they helped develop and improve since around 2008. Their idea was to act as consultants for Smith & Nephew at first and later sell the bootleg technology to the London-based company’s competitors.

“We can now communicate in ways other than whispering or texting,” says an e-mail from Walker dated March 8.

The e-mail goes on to request that recipients update their resumes and create resignation letters so they could follow through on their plans to leave the company.

Andrew Burns, S&N’s media relations manager in Memphis, said he could not disclose how much revenue Visionaire generated since it began being marketed in 2009. But the court documents say harm from the proprietary information getting out would be “immediate and irreparable.”

It’s also not clear how quickly patient cases are being fulfilled with nine team members off the job. The average product development engineer is expected to work about five cases a day, according to the court documents.

“Despite [the former employees’] attempts, there has been no disruption in service to our physician customers or the patients they serve,” the company statement says.

Smith & Nephew recently made news when rumors spread of its possible acquisition by an American equity consortium, and when it made known its intention to create 100 new jobs in Memphis during the first quarter.

Smith & Nephew already employs more than 2,000 people in Memphis.

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Cover Feature News

Fired Up

It’s only about seven miles from City Hall, but Fire Station 17 at Summer and National is a world away from the machinations that so often — some might say too often — underlie the decisions made downtown. For the men and women who spend their 24-hour shifts at No. 17 or any other of Memphis’ 57 fire stations, budget issues are an ever-present but indistinct threat that recedes the moment a call comes in.

At that point, it’s about moving fast. Nothing else matters.

“It can go from nothing to 90 real quick,” says 23-year-old Jeff Pannell, a recent Memphis Fire Academy graduate who’s been working as a firefighter for 10 months now. “It can be very easy or very hard.”

Easy is taking a nap or watching TV, maybe cutting grass or cramming for the next hazardous materials certification. It’s cooking steaks with your buddies and actually getting to eat without being interrupted by a call.

Easy (but certainly frustrating) is a fussy old man calling an ambulance over a stubbed toe or an uninsured mom looking for a smoother ride to the emergency room. The fire department is required to handle it all.

But hard? Hard is being wrenched from a sound sleep to the scene of a crash where the victim’s body is so entangled with the remains of his car that jaws of life are useless to extricate him. Hard is pulling a dead child from a backyard pool.

Hard is watching a woman die from smoke inhalation who could be breathing still if only you’d arrived a minute earlier. Hard is continuing to do your job, sometimes for hours at a stretch, after one of your co-workers has collapsed inside a burning building and probably won’t live to tell the tale.

And the real kicker? It’s never knowing when all of the above might leap out at you, snapping and snarling for your jugular. Death in the afternoon or the boredom of an endless night?

“When that alarm comes in, they’re full-speed, 100 percent,” says Larry Anthony, president of the local firefighters union and a 40-year retired veteran of Memphis Fire Services. “They might fall down, but they don’t slow down.”

Anthony has been a regular at City Hall lately, either in person or by proxy. He and other members of International Firefighters Association Local 1784 are voicing their displeasure with a fire department proposal to buy eight alternative response vehicles, or ARVs, instead of what firefighters insist are badly needed: larger and better-equipped trucks.

Their main argument since the proposal first surfaced January 4th has been one of safety, since the ARVs can only handle medical calls but can't transport victims to the hospital. Additionally, firefighters in ARVs are the first on a scene to stabilize patients and calm family members or neighbors until reinforcements arrive. However, they have to leave their multipurpose trucks at the station with limited personnel, effectively putting the trucks out of service.

Once on the scene, firefighters can't leave until they've addressed the problems they encounter. That's not a big deal if a medical call is simple, but it becomes more of a challenge when medical calls are complicated or when other pressing emergencies are announced over the radio.

Sometimes, the ARV team has to call for help from a neighboring station that might be dealing with its own emergencies. Union members contend this extra layer of red tape can slow response times and be dangerous for firefighters and the public. “There’s a lot more to it than just changing a procedure in the fire department,” Anthony says. “When you start changing a procedure such as this, you’re talking about safety.”

Alvin Benson, director of the Memphis Fire Department, disagrees and to dispel the safety perception cites a 2007 study by Deloitte & Touche that found the chance of department personnel exceeding a standard nine-minute response time for all calls is about 16 percent in Memphis. Most first-due response times occur in five minutes or less, according to fire department data, and responses to life-threatening emergencies happen within nine minutes a little more than 90 percent of the time.

“The odds are that there will always be some truck available in any given emergency,” Benson says.

Underlying the safety issue is a concern about jobs. Up to 96 fire department employees could be affected if even eight trucks are taken out of service, Anthony says. That kind of loss, if it happened — and Benson has maintained it’s not likely — could translate directly to citizens.

“Is Lindsay Jones going to suffer?” Anthony asks this reporter rhetorically. “I don’t think the dollars they’re trying to save are worth your son’s life. Could that ever happen? It wouldn’t have to happen but one time.”

Anthony and union spokesman Robert Kramer, a fire department driver, have stressed on several occasions that 100-foot aerial trucks are stocked to confront any issue and allow firefighters more options when the worst happens. They’ve also admitted that the worst doesn’t happen all the time. But when it does, they say it is best to be prepared.

“I’m here on behalf of 1,800 other men and women who do this job every day,” Kramer said during a recent Public Safety & Homeland Security Committee session. “We put our life on the line every single day. It would be a tragedy beyond what had to be if somebody died that didn’t have to because you’ve got firemen pulling up to their house [without the equipment they need].”

Benson took that to mean he’s focusing too much on budget constraints and not enough on safety.

“I am almost offended that somebody would suggest that perhaps this director cares less about firefighters or family members,” he responded. “I would never have brought [the ARV proposal] to the table if I thought it would jeopardize firefighters and their families, period.”

Currently, the city has 27 aerial trucks, 56 engines, or pumper trucks, and 33 fully functioning ambulances in its fleet, according to information provided to the city council. Five additional aerial trucks are kept in reserve, although union members question the age and condition of those vehicles. Plus it can take months for repairs to be completed on trucks that break down.

Buying the ARVs would cost about $500,000, or $62,500 per vehicle. Buying ladder trucks — the ones that help firefighters punch ventilation holes in roofs to draw out smoke and toxins during fires — would cost millions. The average ladder truck costs about $800,000. Pumper trucks or engines run about $500,000 apiece. Both kinds are expected to last at least 20 years before being replaced, if they are able to make it that far.

No matter how much Benson himself also might want to buy such equipment — and he’s said as much publicly — the money just isn’t there, especially not in a city facing a $70 million or more budget shortfall next fiscal year.

The fire department’s 2011 capital improvement budget designated $4.5 million for vehicle purchases. Aside from the $500,000 for the ARVs, the rest of the money would be used for four fire trucks. The latter request was granted by the council last month.

Next year’s citywide budget is projected to be about $65 million, but that doesn’t guarantee any trucks can be bought, Benson says.

The idea behind the ARVs, at least from Benson’s perspective, is to have something more maneuverable and less costly that will still serve citizens. For example, the average fire truck is able to go two miles per gallon of diesel fuel, whereas an ARV (similar to a sports utility vehicle) gets about 16 miles per gallon.

Benson often refers to a four-month pilot program conducted last spring on vehicles similar to the ARVs.

“In April 2010, a pilot program was conducted to determine the feasibility of using an ARV instead of a fire truck on EMS calls,” says a report handed out during a council committee session. “After four months, fire companies indicated that the concept of using an ARV was supported and met department expectations.”

Originally, Benson wanted to buy 20 SUVs, but changing priorities made the eight ARVs more feasible.

“I believe, still believe, this is an opportunity to save money,” Benson says.

But how much might be saved in the short or long terms has been questioned. As it stands now, the ARV proposal won’t be decided until the city council meets again on March 15th, if then. As usual, the item will start out in committee before going before the full council. That almost happened last month, but the proposal was sent back to committee for further consideration.

The fire department’s ARV proposal has been kicked down the road for about two and a half months, sometimes because of disagreements over financial projections and sometimes because city council members have hesitated to make a decision until they’re sure what they’re hearing is true.

How common is it for firefighters to go straight from one emergency call to another, they asked? Will ARVs really save up to $17,000 per vehicle per year? Councilman Jim Strickland, chair of the council’s Public Safety & Homeland Security Committee, calculated about $4,500 of savings a year per vehicle, which raised the question of whether it’s wiser to buy more expensive equipment upfront and save more over time.

Some faulty information from Memphis’ General Services Department initially riled union members, who felt they were being misled by an already scandal-rocked organization. General Services is in charge of repairing fire and other vehicles in the city’s fleet. It recently came under scrutiny for allegations of corruption and mismanagement.

Numbers provided to Local 1784 after a series of Freedom of Information Act requests showed truck parts costing hundreds or thousands of dollars. In one instance, a work-order cost summary showed a more than $44,000 charge for a truck that went in for repairs in April and returned to its station in June. The problem? A faulty temperature gauge that supposedly took almost 282 labor hours to fix.

Martha Lott, who became General Service’s new director in October, called the faulty numbers a software glitch and later provided more reasonable figures to the union representatives. Even so, they still found fault with the information and complained that their presentations to the council were limited by these questionable numbers.

“The things they gave us were still not the way it’s supposed to be,” Anthony says. “It does not take 220 quarts to change the oil in a piece of equipment. Maybe 30, 40 quarts, something like that. Two-hundred-twenty quarts is a whole barrel of oil.”

During the Public Safety & Homeland Security’s most recent meeting on March 1st, Kramer presented a counterproposal that asks the council to approve $4 million for trucks that carry all equipment but ladders. He said doing so could save between $7.2 million and $11 million over 15 years. But the counterproposal still wouldn’t solve the department’s growing medical emergency needs, which account for the majority of calls it handles. And that’s why Benson called the counterproposal flawed and something he couldn’t support. He said the union’s counterproposal is a reaction to fears about losing jobs. “This was just a strategy to have a more cost efficient, effective department,” he says. “My position remains the same.”

But back at Station 17 and others like it, such discussions come in a distant second to the tasks at hand. Those tasks might be as mundane as answering the phone or as momentous as reviving a dying infant. One thing is certain: The experiences firefighters share can forge a bond stronger than family.

“I don’t think anybody can understand unless they had to do it themselves,” Lt. Matt Harris says.

Imagine missing your first wedding anniversary or the birth of a child because of a fire call. Imagine having to concentrate on an ambulance run when your mother has been hospitalized for chest pains.

“You either love [this job] or you hate it,” Harris says.

But ultimately, no matter what happens with ladder trucks or ARVs, Harris knows his people will pull together and do what they can with what they’ve got. Or haven’t got.

“We’re just like a family,” says battalion chief Keith Smith, who’s been in the department for almost 26 years.

And Pannell, that 23-year-old rookie who just completed his training? He hopes to be in it at least that long. “Definitely,” he says. “I love this job.”

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News The Fly-By

Random Acts of Happiness

Throughout the winter of 2008, Angelique Williams and her brother, Johnny, helped their elderly mother pay her utilities.

Then, out of nowhere, they started receiving notices from Memphis Light, Gas, and Water that the bills had been paid. This happened during the three coldest months of winter and the three hottest months of summer, when usage tended to be most expensive at the elder Williams’ South Memphis home.

“We thought it was a joke,” Angelique said.

So she went to MLGW to determine what was going on. Sure enough: Someone had paid her mother’s bills. Who that someone was — and why they did so — remained to be seen. The only clue was a handwritten note on the utility receipts that said, “Happiness Happens.”

“Then we started getting the sweetest little notes from Nana Pearl and Nana Mary Jane,” Angelique said.

The “Nanas” didn’t volunteer their identities, but they did give the Williamses a post office box in Germantown for any future requests they might have.

Angelique said she didn’t want to impose on their generosity whoever they might be. She and Johnny were just grateful for the help. How the Nanas even heard of their mother’s situation is something the Williams family probably will never know.

“It’s like angels,” Angelique said. “They show up, give you what you need, and then poof!”

And that’s exactly the way Happiness Happens members prefer it, said Nana Helen Bowman, the group’s new ambassador. She was hired just last week to serve as the public face for the nonprofit organization, whose members’ identities are closely guarded. Where (or if) they’re headquartered is anyone’s guess, and that secretiveness even extends to Bowman.

“They want to be anonymous,” she said. “I don’t know who they are.”

But she does know enough about them to feel a kinship with their mission. Happiness Happens members range from ages 50 to 70 and operate primarily in the Memphis area. All nine of them are grandmothers, four of whom are sisters.

The sisters, in particular, have a soft spot for abused or battered women, which is why they’re planning to donate bedding and other items this week to a local YWCA shelter.

“They called one day and asked what our needs were,” said Kathy Ivey, an executive assistant for the YWCA. “We’ve chosen to be a recipient, and we’re excited about that.”

Roughly 30 years ago, the women decided to pool their resources to commit what would come to be known as random acts of kindness — paying utility or grocery bills, helping single mothers buy their children school clothes, making car payments, or sending cakes and other goodies to people in the hospital.

“They decided to take a different path. People were just looking on and complaining, and they wanted to do something different,” Bowman said.

The women find recipients by scanning birth announcements and obituaries or by choosing names at random from the phone book. Sometimes they overhear conversations that inspire them to give. On average, the group gives about 10 gifts every week.

“They randomly select strangers and surreptitiously send them a happy package [with] one of their homemade cakes, citrus curd, a T-shirt or bag, and a note signed by one of the Nanas,” said Sarah Hughes, the group’s media relations specialist. “Many people are taken aback that someone who doesn’t know them would do something so nice.”

Said Bowman: “It makes you feel like you’re stepping into Santa’s boots and giving gifts to children. It’s like being a fairy godmother.”

Or maybe the Publishers Clearinghouse prize squad. That’s how it felt for Jolena Campbell and her family, who received an unexpected Christmas gift last year.

“Out of the blue, we get this Visa gift card for $300 with a short note that said something like, ‘Spend this if you need it, but share it if you don’t,'” the Olive Branch resident wrote in an e-mail. “Me and my husband were absolutely floored! With the tough economy, we were planning to cut back on Christmas gifts for the kids. To say it couldn’t have come at a better time is an understatement.”

And how it got to the Campbell family — nobody knows. Recipients never learn how they were found or who decided to help them. They just know the happiness that happens when someone cares, even if that someone is anonymous.

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News News Blog

Fire Department’s Vehicle Request Saga Drags On

By Lindsay Jones

Technical jargon and a mind-numbing array of numbers flustered city council members Tuesday morning, again delaying Memphis Fire Service’s two-month-old request to buy eight alternative response vehicles (ARVs).

At a Memphis City Council committee meeting Tuesday, Robert Kramer, a spokesman for International Firefighters Association Local 1784, presented a counterproposal that would require a $4 million budget allocation to buy eight ladder-less fire trucks instead of $500,000 for the ARVs.

While he acknowledged the much greater front-end cost, Kramer said his counterproposal could save the city millions in maintenance and other expenses over time. He said the city could save about $2.4 million to $3.4 million during every eight years of the trucks’ service, or $7.2 million to $11 million over 15 years.

Under the department’s current model, it forecasts spending $700,000 in maintenance when trucks reach a certain age, usually from 15 to 32 years. Then another truck is bought for about $800,000.

“Why commit $700,000 in maintenance over a 15- or 16-year time frame when you could just buy another [truck]?” he said.

However, fire department director Alvin Benson was far from convinced and said he couldn’t support the counterproposal from an EMS perspective. About 75 to 80 percent of the fire department’s calls involve injuries, not fires.

“It’s totally flawed, what they’re presenting here, and I think we should go with my original plan,” Benson said.

When city councilman Bill Boyd asked Jim Strickland, chair of the council’s Public Safety and Homeland Security Committee, if he still had any reservations about approving the fire department’s $500,000 purchase request, Strickland responded in the affirmative.

“I don’t know if I understand it enough to have a question,” Strickland answered.

The item, which went to the full council two weeks ago but was punted back to committee, will be considered again in committee on March 15th. It first came up at a committee session on January 4th.

Meanwhile, Benson remained as tactful as he could muster Tuesday morning, although his usually pleasant demeanor showed a few cracks here and there.

“This has drug on for a long time,” Benson told the council. “The longer we postpone this, the longer it takes to get any solution.”

The two main sticking points since the department first raised its proposal have revolved around money and safety.

Benson’s position, which he reiterated Tuesday, is that buying the smaller, more maneuverable ARVs would save on fuel, maintenance, and other costs.

The union’s position, on the other hand, is that putting 100-foot aerial trucks, or trucks with ladders, out of service in favor of first responses to EMS calls, creates a danger because it limits what firefighters can do during emergencies.

Kramer and others’ arguments from day one has been that trucks can respond to a greater variety of emergencies than ambulances, and any cost savings might not be worth the risk of deaths or injuries to firefighters or the public. Although the eight trucks he proposed Tuesday would not be equipped with ladders, they would have everything else a normal truck would have. That would leave 19 ladder trucks in the fire department’s fleet.

However, with the city budget facing a $70 million shortfall, Benson said there’s no guarantee any money will be available for trucks. And he remains certain that having ARVs instead of trucks will not pose a danger to anyone.

“I would never have brought this to the table if I thought it would jeopardize firefighters and their families, period,” Benson said.

He added: “We don’t have $4 million to invest in a project like this.”

Benson also reminded the council that San Antonio does fine with its 16 ARVs, so why can’t Memphis chug along with eight?

“I think there’s fear of job cuts with the [union] and that drives their position on this,” Benson said after the meeting.

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Protestors Stage One Last Hurrah Against Planned CVS

Foes of a CVS pharmacy to rise at the intersection of Union and Cooper were in full battle array this morning, holding signs and asking for honks of support as they mourned the impending demolition of Union Avenue United Methodist Church.

The group’s leader, Gordon Alexander of the Midtown Action Coalition, conceded that the protest was symbolic. Since the demonstration was already scheduled, he and others decided to proceed even though hope of preserving the historic building is all but lost.

Gordon Alexander led a protest Saturday morning against CVS for its coming demolition of Union Avenue United Methodist Church.

  • Gordon Alexander led a protest Saturday morning against CVS for its coming demolition of Union Avenue United Methodist Church.

“We have no alternative,” he said. “They’re going to tear the church down.”

Friday, Chancellor Arnold Goldin upheld an earlier decision that essentially clears the way for the historic structure to be razed. It will be replaced by what protestors consider a bland, suburban-style retail pharmacy that doesn’t fit with the neighborhood’s quirky bohemian character.

Once built, the new CVS will sit directly across from a large Ike’s Pharmacy and variety store. CVS bought the building for more than $2 million from St. Luke’s UMC — almost $1 million more than a Presbyterian church would have paid to reuse the building as a church, Alexander said.

He called CVS’ rebuff of about 1,500 signatures against its acquisition of the building “stubborn” and “arrogant.”

“They basically bought their way in,” he said.

Although company representatives have argued their new store will create jobs and fit as much as possible with the neighborhood’s overall look, the protestors weren’t buying it. And if Alexander has his way, plenty of people in Midtown won’t be buying it either. He fully envisions an all-out boycott.

“Lots of people won’t shop at CVS,” he said.

The demolition could proceed in a few weeks.

Protestors gave one last-ditch effort to save the historic church at Union and Cooper, even though they acknowledged their gathering was symbolic only.

  • Protestors gave one last-ditch effort to save the historic church at Union and Cooper, even though they acknowledged their gathering was symbolic only.
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News The Fly-By

Money Pit

If the Mallory-Neely mansion in Victorian Village were a woman, she’d look darn good for her age. But even this grand dame of Memphis’ past isn’t immune to time.

Built in 1852, the 25-room structure at 652 Adams is in dire need of a new roof and restoration work to about a third of its 70 windows, said Wesley Creel, administrator of programs for the Pink Palace Family of Museums.

The carriage house/visitor’s center, situated behind the main house, is also out of compliance with the Americans with Disabilities Act (ADA). The Mallory-Neely mansion will remain closed to the public until the repairs and ADA-upgrades are complete.

“I’m hoping that we will have a new roof by Christmastime,” Creel said. “That’s usually how long it takes for all the processes to work. But we still can’t open until we’re ADA compliant.”

Though Creel hesitated to set a date, he said the ADA upgrades might not be completed until spring 2012.

For years, the city-owned Mallory-Neely mansion was open to the public as a museum of Victorian culture, but it was shuttered in 2005 because of city budget cuts. That same year, the city of Memphis and the U.S. Department of Justice agreed that all city-owned facilities would have to become ADA compliant.

As far as Creel is concerned, the roof takes top priority this fiscal year. It isn’t leaking yet but has “major potential for some damage.” About $268,000 is available to replace the roof, but Creel is hoping prospective contractors will bid the job for less.

That would allow for at least some of the windows to be repaired and weatherized — a custom restoration that could cost about $4,000 per window. To put that figure into perspective, Creel said some windows in the house are seven and eight feet tall.

Meanwhile, the city’s capital improvement budget for 2012 allocates $36,000 for architectural engineering fees and $150,000 for construction, renovation, and repairs at Mallory-Neely. Those amounts could go a long way toward shoring up more damaged window casings and funding the ADA requirements, which include producing audio/visual tours for people with mobility impairments and improving the area outside the carriage house to make it wheelchair-accessible.

But first, a cash-strapped Memphis City Council must approve those amounts. Right now, the city anticipates a $70 million budget shortfall in fiscal year 2012 that could lead to layoffs and other sweeping austerity measures.

Cynthia Buchanan, the city’s director of Parks Services, appeared last week before a city council committee to submit a preliminary design schematic for the work. It was approved, so the next step involves a full council review on March 1st. After that, a bid package can be issued to contractors.

“We intended to open [Mallory-Neely] this year, but when we realized how massive the improvements were going to be, we didn’t want to bring in the public when we might have to be doing things that were dangerous,” Buchanan said.

Although frustrated by Mallory-Neely’s dormancy, Scott Blake, executive director of Victorian Village Inc., looks forward to the day when the mansion finally reopens for tours.

“Our little area needs that kinetic energy [that will be created] when the Mallory-Neely House is open,” Blake said.

Right now, amenities in the area, which lies between the downtown core and medical district, are limited. The Woodruff-Fontaine House at 680 Adams is the only continuously open museum in Victorian Village. The Goyer-Lee House sits empty and in need of extensive restoration work.

Blake is hoping a private developer will buy the Goyer-Lee House, which is for sale, and repurpose it as a bed-and-breakfast or some other tourist attraction. Whatever it becomes, the Goyer-Lee House, like Mallory-Neely, will have to be repositioned within historical guidelines.

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News News Blog

Memphis Allowed Into Electric Vehicle Demonstration Project

Youll be able to charge one of these in Memphis someday.

  • You’ll be able to charge one of these in Memphis someday.

It’s official: Memphis is on the grid.

On Tuesday morning, representatives from San Francisco-based ECOtality North America hosted a partner forum at The Peabody to welcome the Bluff City into a five-state embrace of electric vehicles and charging stations called “The EV Project.”

“Electric vehicles are coming, and we want to make sure businesses in Tennessee are as EV-friendly as possible,” said ECOtality’s Stephanie Cox.

Previously, only Nashville, Chattanooga, Knoxville, and about 20 smaller towns in East and Middle Tennessee were included in the state’s piece of the federally funded effort to help Americans depend less on fossil fuels and clean up the environment.

The EV project’s purpose is to develop a $230 million commercial and residential charging network to coincide with the continuing release of electric or hybrid vehicles, particularly the all-electric Nissan LEAF. That car is expected to help consumers save about $1,800 a year on fuel costs.

Production for the LEAF, which has a lithium ion battery and can go 100 miles between charges, will be moved in 2012 to the Nissan plant in Smyrna just outside of Nashville. The plant is expected to manufacture 150,000 electric cars a year, along with 200,000 battery packs. Many of the car’s components are made from recycled materials such as plastic water bottles.

“It’s not a question of if; it’s how fast we’re going to see reliance on electric vehicles,” said Mayor A C Wharton.

To supplement the LEAF and other vehicles’ relatively short charging range, high-voltage charging stations are going to be installed around the state to help drivers with longer trips.

Since quick charges take about 30 minutes, the charging stations are going to be put where people tend to stop and spend an hour or more — shopping centers, libraries, hotels, hospitals and other attractions. That way, the inconvenience of having to stop and juice up is more “bearable,” as Cox put it.

Anyone who orders one of the five-passenger sedans is eligible for a $2,500 tax incentive from the state. The zero-emission cars will be priced at about $22,500. About 100 of them are already on the road since their December release, and more will be rolling out during the spring and summer.

“The message is, let’s become less dependent on foreign oil,” said Jerry Collins, president and CEO of Memphis Light, Gas and Water Division.

As the Tennessee Valley Authority’s largest power distributor, MLGW has a vested interest in ensuring the infrastructure necessary to support electric cars comes to the Memphis area.

ECOtality will be hosting two more informational forums in Knoxville on Thursday and Chattanooga on March 22nd.

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News

The Memphis Addys Winners

Marketing/advertising agency archer>malmo took home the most awards at Saturday’s ADDY Awards at Minglewood Hall, with 27 gold certificates and 22 silver. At one point, the disembodied voice announcing the award winners quipped that she was getting tired of calling out the same names.

But other agencies took home many of the top honors, including Harvest, which followed closely on archer>malmo’s heels with 14 gold awards and eight silvers.

Here are the winners of the evening’s top honors:

Best of Show: Harvest, for its “321 Oil Relief Dinner — Wooden Sign,” for Andrew Michael Italian Kitchen.

Best of Print: Oden, for the Festival 2 (Clanjamfry) poster featuring the Scotty McSurly dog character for Evergreen
Presbyterian Church.

Outstanding Art Direction: Harvest, for the “321 Dinners for Relief” menu.

Best of Out-of-Home: Harvest, for its “Swine & Wine” wooden sign for Andrew Michael Italian Kitchen.

Best of Web: the Greater Memphis Chamber for “The Soundtrack Project.”

Judges Choice Award: Oden, for its “Open Holiday Message.”

People’s Choice Award: Harvest, for 321 Oil Relief.

Other top winners at Saturday’s event included Combustion, CS2, Red Deluxe, Tactical Magic and others. Winners in the top categories will advance to a district competition and possibly to the National Advertising Federation’s ADDYs. Entries were judged on originality, creativity and strategy.

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News News Blog

Opportunity Challenge Ends, But Work Just Beginning

This morning concluded the three-day Opportunity Challenge that brought together influential people from the local business and civic communities to brainstorm about improving Memphis.

The nonprofit CEOs for Cities and Mayor A C Wharton’s Office of Talent & Human Capital staged the event at the Memphis Bioworks Foundation. Its first day was spent listening to national experts make suggestions, and most of the rest of the time involved idea sessions. The session’s main objective was to come up with ways to help even the most unemployable or vulnerable citizens put their talents to work.

Charlie Cannon of the Rhode Island School of Design, who facilitated Opportunity Challenge, broke the group’s ideas into two main categories. The first was finding ways to make Memphis a learning city, where lifelong learning and civic engagement are encouraged regardless of financial reward, and the other was to make it into a venture city where new ideas are embraced and supported.

“We are in a moment of urgency and opportunity,” he said, referring to a PowerPoint slide. “We need to redefine the American dream.”

One way is by making education more accessible to the poor or other marginalized groups. Although it’s not usually identified as such, Memphis is a college town that often draws the best and brightest to learn and teach, but many of its own citizens languish. Meanwhile, those who come from outside often feel disconnected.

“Barbecue is great, blues is great, but there are so many more faces to this city,” Wharton said.

He also admitted that just getting a group of “well-intentioned people together with great vision” at an Opportunity Challenge conference isn’t enough. Talent development has to be intentional — and sustained — to improve the city’s economic destiny. And as was expressed earlier in the week, education is one of the pillars of any such initiative. A good place to begin is in cities, where population is already dense.

Whereas the dollar used to be everyone’s currency of choice, brain power is most important locally, nationally, and internationally, Wharton said. Brain power begins (and ends) with people. He cited a well-known nursery rhyme to make his point.

“There’s the church, there’s the steeple,” Wharton said, “Open the door and see the people.”

Without the people, there is no church. There is no city.

Ideas generated from the Opportunity Challenge will be written in a grant-sponsored book.

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News The Fly-By

Raleigh Redux

As she browsed through clothing racks at the Sears in Raleigh Springs Mall, Cordova resident Brenda Williamson lamented the fact that the store will be closing by April.

“Really and truly, I hate to see the mall go down,” Williamson said.

Admittedly, it had been a while since she visited. If not for the discounts, Williamson said she probably wouldn’t have bothered.

That, in a nutshell, is what Raleigh supporters have been struggling against since at least the mid-1990s. Some of it has to do with a general decline in the area, but much of it has to do with the mall itself — and malls in general.

“Malls are changing all over the country,” said Bill Morrison, the city councilman whose district encompasses Raleigh and parts of Frayser and Cordova.

Since he was elected to his District 1 post about four years ago, Morrison has been working not only to add amenities in Cordova but to boost prospects in North Memphis. He said he’s looking forward to working with Antonio “2 Shay” Parkinson, who recently was elected to fill the Tennessee House District 98 seat left vacant after the death of longtime representative Ulysses Jones. Already, Parkinson is working on the kind of anti-blight legislation that will force owners of vacant commercial properties to shape up or ship out.

“We’re also working on [forming] the Raleigh-Frayser Business Alliance,” Parkinson said.

That organization is likely to operate under Parkinson’s nonprofit community empowerment organization, ABetterMemphis.com Inc. Its offices will be in the Raleigh mall, which Parkinson said is about 98 percent occupied despite the Sears closure.

“I understand the Sears situation is a corporate decision,” Parkinson said. “They closed four different locations in four different markets.”

Another blow to Raleigh’s retail scene is the closure of the A.J. Wright store across the street from the mall. That, too, is part of a corporate restructuring also affecting stores in Whitehaven and Hickory Hill.

Kevin Brooks, president of the Raleigh Community Council, expressed the group’s dismay during its February meeting.

“If we can get some businesses in here, that’s what we need,” Brooks told the 35 members who attended the evening meeting at Raleigh United Methodist Church. “If we can’t, it’s going to be a ghost town.”

But not all is doom and gloom. A long-vacant Schnucks that sat at the corner of Austin Peay and Yale Road is in splinters, making way for a Memphis Traffic Bureau location that’s moving from Union Avenue in Midtown. It will be operational in Raleigh by 2012.

In the meantime, Morrison is still working with Looney Ricks Kiss architects on redesigning the look of Austin Peay. Morris said now that Memphis Motorsports Park is reopening under new ownership, he expects more traffic through the Austin Peay area. Along with Austin Peay improvements is Looney Ricks Kiss’ vision for how the mall might be reused if it can be sold to a single owner or ownership group.

But the brightest aspect of Raleigh’s retail outlook is a new use for a former Applebee’s at 3954 Austin Peay. The vacant building is being converted to an El Patio Mexican restaurant, Morrison and others have said, although they’re not sure when it will reopen. It’s across the parking lot from a Walmart that recently was converted into a Supercenter.

Public records show the more than 5,000-square-foot Applebee’s building on Austin Peay sold for $420,000 in October to One-Two-Three Corp. of Chattanooga. However, no one could be reached at the company, which was cited in a 2007 article in The Decatur Daily News in Alabama for acquiring a similar restaurant and letting it collect weeds and trash during a so-called renovation period.

If the El Patio restaurant does open in the Applebee’s building, Morrison said it could spur other new businesses.

“We have not given up [on Raleigh],” Morrison said. “We are not going to give up.”