Expert: Don't be disappointed by bond issue’s failure

A New York-based development expert urged attendees of a redevelopment workshop today not to be discouraged by the narrow failure of the $989 million bond issue, and said making connections is as important as creating destinations. John Alschuler, a partner in the real estate advisory firm HR&A and a member of the Plan Baton Rouge Two consultant team, says the most important—yet underdeveloped—connection in the city is between LSU and downtown. “It’s not very far,” he said. “It’s what’s there that makes it seem far.” The Baton Rouge Area Foundation hosted the workshop with Alschuler, Frank Alexander of the Emory University School of Law and former Pittsburgh Mayor Tom Murphy. Several Metro Council members attended. Councilman Mike Walker, who is expected to become mayor pro tem, urged attendees to be excited about the new council, which he expects will be more progressive and less embarrassing. Murphy said concerns about climate change and access to oil will change the rules for developers in the near future. “I think every city needs to plan as if gas is $10 a gallon,” Murphy said.—David Jacobs

November home sales down 38%

The number of houses sold in the Capital Region was down 38% in November, while the average sale price dropped by 5.3%. According to figures from the Greater Baton Rouge Association of Realtors Multiple Listing Service, there were 405 homes sold in the area last month, compared with 658 in November 2007. The average sale price was $186,129, compared with $196,521 one year ago. East Baton Rouge Parish saw the smallest drop in average sale prices, a 2.7% decrease from $196,521 to $190,413. The average dropped 10.6% in Ascension Parish, from $245,127 to $219,164. In Livingston Parish, the average was down 9.1%, from $158,120 to $143,632. And in the other category, which includes MLS sales in West Baton Rouge, East and West Feliciana, Iberville and Pointe Coupee parishes, the average was down 11.2% from $193,285 to $171,705. Year to date, the number of houses sold in the Capital Region is down 25%, from 8,926 sales as of November 2007 to 6,821 in the first 11 months of this year.

Melancon 'disappointed' how banks using bailout funds

U.S. Rep. Charlie Melancon, a Napoleonville Democrat, is "disappointed" that banks aren't using funds from the $700 billion financial bailout to help businesses and individuals get loans. Robin Winchell, Melancon's press secretary, says the Congressman thought the bill would "help average people. That hasn’t materialized." Melancon and U.S. Rep. Jim McCrery were the only members of the state's Congressional delegation to vote in favor of the bill both times it came before the House in the fall. "It's unfortunate that this money isn't being used for the things it should be used for," Winchell says. Melancon voted for the bill, even though it was far from perfect, because he wanted to keep the financial crisis from becoming worse.

Earlier this month, IberiaBank said it plans to ask for a $90 million share of the bailout funds to expand and acquire financially troubled banks. The Lafayette-bank has been quick to say that it is financially healthy. Bob Taylor, chief executive officer of the Louisiana Bankers Association, says IberiaBank is playing by the rules, since the Treasury Department has said it will only give bailout funds to fiscally strong banks. Taylor says he doesn't expect many other Louisiana institutions will follow IberiaBank in asking for bailout funds because of murkiness about the Treasury's rules and that the department hasn't come out with paperwork to cover how one-third of state banks are set up.

"There are disagreements on what the intent of this package is," Taylor says. He blames part of the problem on passing the package at the end of one presidential term and at the start of another. "The new administration has their own idea how they want to approach this economic distress," he says. "I think there will be more clarity in January."—Timothy Boone

Officials hope to use federal stimulus to extend I-49

After years of pushing to complete Interstate 49, state officials hope to advance or complete the project with some of the billions of dollars that President-elect Barack Obama will spend on public works projects. “We’re on the front seat of the bus here,” says Rob Guidry, president and CEO of the Greater Lafayette Chamber of Commerce. “The chamber is laser focused on I-49.” Gov. Bobby Jindal and other local and state officials agree upgrading U.S. 90 from Lafayette to New Orleans would make a good economic stimulus project for the state. Guidry says they’ve been meeting with local and state officials to re-energize project support, which they will announce at a news conference next week.

The project cost and specifications are still being worked out. But Guidry says they intend to finalize the project quickly because the president-elect intends within the first six months of his term to award funding for public works projects that are ready for construction. The Louisiana Department of Transportation and Development earlier estimated the I-49 connector, a proposed six-lane, elevated freeway through Lafayette, would cost about $700 million. It isn't known if the Baton Rouge Area Chamber of Commerce will participate in the push for I-49 funding. Mike Odom, a BRAC spokesman, says the organization has been "very vocal" about addressing the state's $14 billion backlog in transportation infrastructure projects. —Anna Thibodeaux

LaPolitics by John Maginnis: Disunity costly to Democrats

A snowy morning in south Louisiana puts an exclamation point on a late-ending election season, in which storms, both natural and political, combined for a strong finish for Republicans and a historic opportunity blown for Democrats. The one-month delay in the election schedule caused by Hurricane Gustav aided Republican victories in the 2nd and 4th congressional districts last week. But also playing a significant role was disunity among Democrats, the likes of which also cost the party a newly won seat in the 6th District on Nov. 4. Democrats did win the big one, re-electing Sen. Mary Landrieu, but problems with black elected officials that surfaced in House races cannot be ignored if the party is to compete for those seats in the future.

—Gary Graphia issued a statement this week that he would not run in the special Senate election to replace Congressman-elect Bill Cassidy. The Shaw Group executive says he would rather stick with the business that is embarking on major new initiatives. That leaves software CEO Lee Domingue, a Republican, as the only declared candidate. Scott Love, a CPA, and Laurinda Calongne, a consultant, are eying the race, along with Rep. Steve Carter. All are Republicans.

—Following his fundraiser in Washington this week, co-hosted by Gov. Bobby Jindal, Sen. David Vitter e-mailed a plea to supporters for contributions before the year ends. It begins, "Just two seats are all that stands between President-elect [Barack] Obama and a filibuster-proof Democrat majority in the U.S. Senate." He writes that it is essential for him to show a strong balance in his campaign account in the 2008 report due early next year. Vitter acknowledges he might already top the Democrats' target list, stating, "But behind the scenes, President-elect Obama and national Democrats are already plotting and planning to try to defeat me. What's worse, they have the funds and organization to do so—unless we gain an early advantage."

(John Maginnis publishes LaPolitics Weekly, a newsletter on Louisiana politics, at LaPolitics.com.)

White House considers help for automakers after bailout fails

Under mounting pressure to act, the Bush administration said this morning it was ready to step in and prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by the White House and congressional Democrats. The Wall Street bailout fund was one of the few remaining options for General Motors Corp. and Chrysler LLC, which have said they could run out of cash within weeks. President George W. Bush had originally refused to use the bailout fund to help the automakers, insisting that help come from Congress. But the White House said it must reconsider after the Senate failed to agree on a $14 billion rescue plan. About $15 billion from the first half of the $700 billion financial bailout remains uncommitted. Treasury in the past two months has pumped out about $335 billion to banks and insurance companies. To begin tapping the second half of the bailout, the administration would first have to notify Congress, which could block it or put new conditions on how the money is used. The Senate rejected the bailout 52-35 on a procedural vote Thursday night—well short of the 60 required—after the talks fell apart.

Sen. Mary Landrieu, D-La., voted in favor of the Senate proceeding to a debate on the legislation. “I was prepared to stay in Washington through the holidays if needed to hammer out a responsible, bipartisan compromise. A ‘no’ vote on proceeding to this debate is a vote to go home, risking the jobs of thousands of workers in Shreveport and elsewhere, as well as hundreds of locally owned dealerships across our state.” Sen. David Vitter, R-La., applauded defeat of the plan. “We killed the really bad bailout that passed the house. Negotiations on a real restructuring plan failed for one reason only—the unions and Democratic leadership wouldn’t agree to any wage concessions by a date certain. None. It’s just a shame.”

New York Times editorial praises Louisiana teacher preparation

First it snows in Baton Rouge, now this: An editorial in today's New York Times praises Louisiana's efforts to reform teacher training and says it should serve as a model for the federal government and states. The Times says the most striking change is a system that measures teacher-preparation programs based on how much graduates boost student performance in important areas. This allows school districts to know which programs are producing high-quality teachers. The University of Louisiana at Monroe and the New Teacher Project got high marks. "Louisiana should be especially commended for pressing ahead with these reforms despite the trauma and destruction caused by Hurricane Katrina," says the editorial. "Students throughout the country deserve a chance to learn from teachers who are truly prepared." Read the full item here.

Vines makes list of most powerful women in cable

Jacqui Vines, senior vice president and general manager for Cox Greater Louisiana, has made CableFAX: The Magazine's list of the 100 most powerful women in cable. The magazine notes that Vines heads a business unit with 309,000 customers, 1,200 employees and a payroll of more than $50 million. During her tenure as head of Cox's local operations, the company has invested or plans to invest $500 million in infrastructure upgrades.

LSU co-coordinator finalist for Northwestern State vacancy

LSU co-defensive coordinator Bradley Dale Peveto, a former Northwestern State assistant, is one of six finalists for the Demons’ head coaching vacancy, the Louisiana Gannett News reported today. Peveto served as Northwestern State’s defensive coordinator from 1996-98. Under co-coordinators Peveto and Doug Mallory, LSU allowed 50 or more points in a game twice for the first time in 115 years of football and finished near the bottom in the Southeastern Conference in several major defensive categories that it has dominated since 2002. The Tigers finished No. 81 in the nation in pass defense and 12th in the SEC out of 12 teams while also finishing No. 66 nationally and No. 11 in the SEC in scoring defense. In total defense, LSU was No. 9 in the SEC and No. 37 nationally. The other finalists for the Northwestern State opening are Steve Campbell, the head coach Mississippi Gulf Coast Junior College; Kevin Corless, the co-defensive coordinator at Arkansas State; Brad Laird, the Northwestern State defensive coordinator; and Dan Werner, a former offensive coordinator at Ole Miss. Meanwhile, LSU Coach Les Miles says any changes to his staff will come after the Dec. 31 Chick-fil-A Bowl against No. 14 Georgia Tech.

Poll: Christmas bonuses in short supply

Bah humbug. Sixty-four percent of respondents to a Daily Report survey say they will not receive a Christmas bonus this year. Six percent of the people who responded to the poll say they received a bonus that was bigger than last year's, while 5% received a bonus that was the same as last year and 2% received a bonus that was less than last year. Ten percent say they haven't gotten their bonus yet but will, and 13% aren’t sure if they will receive a bonus. Nearly 1,600 people participated in the survey.

Today's question: How did you spend the day of the earliest snowfall in Baton Rouge history?

News roundup: Mall parent still in debt talks … Moret to speak at Press Club … Jackman chosen to host Oscars

Refinances loans, working to extend debt repayment deadline: General Growth Properties, which owns the Mall of Louisiana, says it is still trying to negotiate an extension on $900 million in debt that is due to be repaid Friday, but warned there can be "no assurance" it will get a reprieve. The mortgages cover two Las Vegas malls. Earlier this month, Chicago-based General Growth received a two-week extension on the loans. General Growth, the country's second-biggest mall owner, says it refinanced a separate $896 million worth of loans, retiring a $58 million bond that matured Thursday and $814 million of debt scheduled to mature next year.

LED Secretary to speak Monday: Louisiana Economic Development Secretary Stephen Moret will speak Monday at the Baton Rouge Press Club meeting Monday. The public is invited to attend the meeting, which will be held at noon at De La Ronde Hall on Third Street. Lunch is $12 for members and $15 for nonmembers.

And the winner is … : Actor Hugh Jackman will host the 81st Academy Awards, the Academy of Motion Picture Arts and Sciences announced this morning. Jackman, an Australian who has starred on Broadway and in such movies as X-Men and The Prestige, is seen as a way to attract international viewers. With new producers, a new set director and even a new music director, the Academy has been hinting at an all-new look and feel for this year's Oscars telecast on Feb. 22.

Are you the fittest exec in the Capital Region?

Monday is the deadline to enter Business Report’s first Fittest Execs competition, in which Capital Region business executives compete in four categories (men under 50, men over 50, women under 50 and women over 50). The competition is limited to C-level, president, vice president, owner, partner, executive director or retired executives of companies or corporations with more than five employees. Fitness appraisals will take place at Bally Total Fitness Baton Rouge through Friday, Dec. 19, with the results to be announced in the Jan. 13 issue of Business Report. Click here to register or for more information.