Shaw to create 2,900 new jobs in Louisiana

Calling it one of Louisiana’s largest economic announcements in its history, Gov. Bobby Jindal today announced a 15-year agreement to keep Shaw Group’s headquarters in Baton Rouge and to build a $100 million nuclear module production facility at the Port of Lake Charles that is scheduled to open next summer. Jindal says the investment “will position Louisiana as a major player in the nuclear industry” as well as further the state’s economic diversification. Shaw President/CEO Jim Bernhard says Louisiana’s productive workforce and strong work ethic were incentives for choosing a Louisiana site for the plant. Shaw is expected to add 1,500 corporate jobs in Baton Rouge and 1,400 manufacturing jobs in Lake Charles. Louisiana Economic Development Secretary Stephen Moret says the state provided a $210 million incentive package to secure both projects. Jindal announced last week that a video game testing center coming to LSU will generate a payroll of $6 million a year.—Anna Thibodeaux

Former Saban house back on the market

If former LSU football coach Nick Saban feels like sticking around Baton Rouge after the Tigers' home game against Saban's Alabama Crimson Tide on Nov. 8, he might be in luck: His former Highland Road estate is back on the market with a $2.995 million price tag. Developer Jim Tanner originally bought the home three years ago for $2.75 million, and then exchanged the property in December 2007. In April, Tanner bought the house back again for $2.8 million. Tanner and his family have found a home in the Country Club of Louisiana they want to make as their primary residence, says Landon Petty, a Tanner spokesman. "He's in the real estate business, and when there's an opportunity to sell such a desirable home, he's going to make a move," Petty says. The home, which sits on 5.22 acres, features amenities such as limestone floors, a heated and cooled garage and a guesthouse. Tanner is holding on to 14.78 acres behind the Highland Road estate. "That land in the rear has so many applications," Petty says.—Timothy Boone

ABR wants to open schools to serve emerging industry

Advance Baton Rouge, the nonprofit group that took over Prescott and Glen Oaks middle schools and ruffled feathers on the East Baton Rouge Parish school board in the process, wants to open two new college prep schools to meet the Capital Region's need for talent in emerging and existing industries. Charlotte Frugé, ABR's director of economic development initiatives, says her group is seeking corporate sponsorship for two schools it has in the works: a science, technology, engineering and math high school and a digital media high school. BP America has already given $500,000, half of which will be used to hire principals for the new schools and the other half to be used by the LSU College of Education to study the schools' performance with an eye toward possibly incorporating best practices into the college's own curriculum. Frugé says the plan is to hire principals in 2009 and open both schools in 2010, though sites have not been selected. Students at the new schools should be able to get college course credit their junior and senior years, and ABR would like to locate them convenient to LSU, though the university has not committed space, Frugé says.—Steve Clark

La. students improving, but still below average in math, science

A new report from the nation's largest technology trade association found that less than 24% of Louisiana fourth- and eighth-grade students are proficient in math and science. AeA says this is a bad sign, because elementary and junior high students who lack skills won't have the foundation to pursue math, science or engineering degrees in college or to compete for jobs in the technology industry. According to AeA, 24% of Louisiana fourth-grade students scored at or above proficient in the NEAP math test, and 20% were proficient in science. Scores were even worse for eighth-graders, with 19% reaching proficiency in math and the same percentage in science. Nationally, 39% of fourth-graders were average or above in math, and 31% were proficient in science. Twenty-seven percent of eighth-graders were proficient in math and the same number passed the science exam. For the full report, click here.

‘Forty Under 40’ nominations now open

Business Report is presenting its annual "Forty Under 40" awards to the young men and women who are making the Capital Region a better place to live, work and play. You can nominate someone or submit your own applications. Nominations/applications will be accepted through Oct. 10. All nominations must be made online here.

Real Estate Weekly: Realtor conference scheduled for next week

Real Estate Weekly previews the state's largest Realtor conference, the Industry Edge Convention and Expo, which is scheduled for Sept. 3-5 in New Orleans. The newsletter also has details on which local Zip codes are the hottest real estate markets, an endorsement from the Louisiana Home Builders Association and the latest columns from Brian Andrews and Tom Cook. To read the newsletter, click here.

Forecasters warn Gustav could become ‘extremely dangerous’ Gulf hurricane

Hurricane Gustav grew rapidly as it closed in on Haiti this morning, and sent global oil prices soaring on fears it could become an "extremely dangerous" storm in the Gulf of Mexico. Oil investors reacted sharply, fearing the hurricane could threaten the Gulf's many drilling platforms. Prices jumped by about $5 a barrel after the Miami-based National Hurricane Center projected that Gustav would gather strength over the Gulf's warm waters. "Most indications are that Gustav will be an extremely dangerous hurricane in the northwestern Caribbean Sea in a few days," the hurricane center said. At 10 a.m., the hurricane was centered about 50 miles south of Port-au-Prince, Haiti, with sustained winds near 90 mph. Gustav was moving northwest near 9 mph. For the National Hurricane Center’s Web site, click here.

S&P: Home prices drop nationally by record amount in second quarter

A widely watched index released this morning showed home prices dropping by the sharpest rate ever in the second quarter, but the data for June suggest the severity of the housing slump may be waning. The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a record 15.4% during the quarter from the same period a year ago. The monthly indices also clocked in record declines. The 20-city index fell by 15.9%in June compared with a year ago, the largest drop since its inception in 2000. The 10-city index plunged 17%, its biggest decline in its 21-year history. The rate of single-family home price declines slowed from May to June, a possible silver lining, the index creators said.

Meanwhile, sales of new homes posted an unexpected gain in July as heavily discounted properties enticed cautious house hunters to become homebuyers. The Commerce Department reported that sales of new single-family homes rose by 2.4% last month to a seasonally adjusted annual rate of 515,000 units, the most since April. Even with the over-the-month increase, new-home sales are down a whopping 35.3% from last July, underscoring just how much the housing market has eroded. Home prices also continued to sag.

Blanco vs. Kennedy just like old times

Former Gov. Kathleen Blanco supports U.S. Sen. Mary Landrieu “without hesitation,” according to the Alexandria Town Talk. The triviality of one Democrat supporting another was greatly overshadowed, however, by Blanco’s published suggestion that GOP state Treasurer John Kennedy “should stay home and concentrate on being state treasurer” rather than challenging Landrieu this fall. The Town Talk did not treat the statement as a direct quote in the story, but it was attributed to Blanco nonetheless.

That was enough for Kennedy Communications Director Leonardo Alcivar to fire off this response: “John Kennedy stood up to Kathleen Blanco on everything from wasteful spending to her anemic hurricane recovery plans—the very recovery plans that were praised by Mary Landrieu. Voters know the failed Blanco-Landrieu legacy almost ran Louisiana into the ground. Taking potshots against John Kennedy will do nothing to change that.”

Even though there was no official “Blanco-Landrieu” recovery plan in the wake of hurricanes Katrina and Rita, Kennedy’s campaign team still pounced at the opportunity to link Landrieu with Blanco. When asked about the exchange, Scott Schneider, Landrieu’s press secretary, dredged up Kennedy’s unsuccessful attempt in 2003 to become governor, a contest the treasurer dropped out of following a slow start and Blanco eventually won. “Somebody needs to remind Mr. Kennedy that he is running for U.S. Senate against Mary Landrieu, not for governor,” Schneider says. “He quit that race five years ago.”

But it wasn’t the first time Blanco and Kennedy have traded barbs. When Blanco was governor and Kennedy was still a Democrat, the treasurer opposed Blanco at nearly every turn. One of the more memorable clashes came in 2006 when reporters asked Blanco how much pork she was planning to cut from that year’s $26.7 billion operating budget. Kennedy had been hounding the administration about making “smart cuts” at the time, and Blanco told reporters that he should pick up an ax to help with the cutting. A few days before Blanco announced her limited cuts—$3 million slashed from more than $31 million in pet legislative projects—Kennedy issued to reporters a multimillion-dollar laundry list of items he says he would have eliminated. The move resulted in a solid three weeks of positive media coverage for Kennedy, including editorials.—Jeremy Alford

News roundup: Beer keg thefts on the rise … Number of uninsured drop … Lottery sends $10.4 million to the state in July

Not just for college students anymore: Scrap metal prices have more than doubled in the past five years, and that's led to an increase in the number of people stealing beer kegs, USA Today reports. Sierra Nevada Brewing Co. says the number of kegs stolen has doubled in the past year. In some parts of the U.S., scrap dealers are paying $30 and up for empty stainless steel keg. Sierra Nevada says the same keg costs them $150 to replace. Read the story here.... Got coverage? The Census Bureau reported the number of people lacking health insurance dropped by more than one million in 2007, the first annual decline since the Bush administration took office, reports The Wall Street Journal. The nation's poverty rate held steady at 12.5%, not statistically different from the 12.3% in 2006. That meant there were 37.3 million people living in poverty in 2007. The median, or midpoint, household income rose slightly to $50,200, marking the third consecutive annual increase.... Cumulative impact of $2 billion: The Louisiana Lottery Corporation transferred $10.4 million in July revenue to the state treasury, bringing its total cumulative contribution to the state to $2 billion since it began in 1991. The Lottery brought in $29.8 million in revenue during July.