Hi Josh McCullough,
You cannot set templates like this, because you also create declaratively items which are lost after the panelbar is databound. I've attached a modified version of your code to demonstrate how to achieve the needed approach. If you need a more complicated template, you should create it in the code behind.
Please try the attached file and let us know what you think.
Greetings,
Yana
the Telerik team
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