Day, MAPP in dispute over construction project

R.W. Day and Associates, a Baton Rouge development company, and MAPP Construction are headed to arbitration over the Southgate Towers condo project near LSU. In a demand for arbitration filed in July 2006, MAPP alleges that Day owes money for building the condos. In a counterclaim, Day alleges that MAPP’s failure to complete units and solve problems with moisture penetration and electrical defects has made sales impossible. According to court documents filed by Day with the 19th Judicial District Court, "organic growth" has occurred in the interior of the building as a result of moisture getting in, and sheet rock, molding, floor and studs in the condos have been damaged. Day’s attorneys say the moisture problems might have been caused by installing sheet rock before the building was weather tight, improper installation of air-conditioning units and roof drains or other factors. MAPP plans to coat and caulk the affected units, but Day wants all of the stucco, exterior skin, walls, felt and metal studs to be replaced and the units to be repaired. The cost differential between the two plans was not available. The arbitration, before a group of architects in Dallas, is scheduled to start Sept. 3, says Gray Sexton, an attorney for MAPP. Day declined to discuss specifics of the dispute, but says he’s working with contractors, subcontractors and insurance agencies toward reaching a resolution. --Timothy Boone and Anna Thibodeaux

Plenty of interest in Advocate’s former site

Banks and companies looking for high-quality office space have expressed interest in the old Advocate site downtown, but there is no timetable for developing the property, says the attorney who is spearheading the development. Charles Landry says the Manship family is interested in doing a special project on the Lafayette Street site, something that adds to downtown. "No one is interested in doing another office building or an ordinary residence," Landry says. Right now, plans are to build a mixed-use development, with condominiums, offices and retail, but the exact mix of parts has not been determined. There had been talk about the Baton Rouge Area Chamber moving its offices into the building, but Landry says those plans are up in the air, now that BRAC President Stephen Moret left to head Louisiana Economic Development, and his interim replacement, Steven Grissom, will join LED next month. It's still a possibility BRAC will move into the building, but Landry says it will be up to the new leadership. The Manships are also taking their time with another prime piece of real estate—the vacant Advocate printing facility on Bluebonnet Boulevard. The lot offers rail access and is close to Baton Rouge General, Mall of Louisiana, Perkins Rowe and the Jimmy Swaggart Ministries complex. The family is patiently considering all of the offers they've received for the land. "They're not going to take the first offer that comes through the door," Landry says. --Timothy Boone

Principal certification hits snag with DOE

Advance Baton Rouge, a nonprofit organization championing major change in EBR public education, is running into resistance from the Louisiana Department of Education in ABR's push for authorization to provide an intensive alternative certification for principals. The certification proposal is contained within ABR's overall principal training program, called Redesigning Lessons, Re-envisioning Principals. The aim is to get more qualified principals—not necessarily those with traditional academic backgrounds—into EBR public schools. The program already has $300,000 in startup funds pledged from the Wilson Foundation. DOE's certification division is refusing to recommend approval of the proposal to the state Board of Elementary and Secondary Education that the proposal be approved, says ABR executive director Kristy Hebert. Neither has DOE informed BESE that such a proposal exists. The board vote is in two weeks. Not approving the certification program now would effectively delay it by a year, Hebert says. "We want to start systematic change and I think it's ridiculous that the state department of education is putting up all these obstacles," Hebert says. A message left this morning with the head of DOE's certification division was not returned. For the full version of this story, click here. --Steve Clark

Baton Rouge, New Orleans engage in power struggle

Baton Rouge and New Orleans have always maintained a rivalry, because the two cities, while only 80 miles away, are worlds different. But that rivalry has gotten worse since Hurricane Katrina and some people fear the struggle for economic supremacy could hurt Louisiana at a time when all areas need to pull together. Read the Business Report cover story here.

Shaw awarded two Navy contracts

The Shaw Group's Environmental & Infrastructure division has been awarded two task order contracts from the Navy. The first contract is for constructing landfill caps at the decommissioned Marine Corps Air Station El Toro near Irvine, Calif., and the second contract is for cleaning, inspecting and repairing fuel tanks at three fueling facilities in California. The value of both contracts was not disclosed.

Study: More homeowners upside-down on mortgage

More than 30% of homeowners who bought a house in the past two years now owe more on their mortgage than the house is currently worth, according to Reuters. A report from Zillow, a housing market research company, found that 39% of the people who bought homes in 2006 now have a negative equity and 30% of those who bought houses last year are in the same situation. The situation may get worse, says Stan Humphries, a Zillow vice president. Housing prices have dropped for five consecutive quarters.

Metairie investors buy auto parts store for $1.48 million

An Advance Auto Parts building on Florida Boulevard between Sherwood Forest Boulevard and Flannery Road has been sold to a group of Metairie investors for $1.48 million. Ford of Louisiana bought the 7,000-square-foot store and the .77-acre site in a deal that closed Tuesday. Bob Parker, a vice president with GBR Properties, the Tulsa, Okla.-company that developed and sold the site, says Ford bought the store as a long-term investment. The store opened last year and the auto parts dealer has a 15-year-lease on the building. GBR plans to develop and sell more Advance Auto Parts locations across Louisiana.

Clemens pressed by Congress in steroid hearings

Roger Clemens struggled to find the right words under questioning during a congressional hearing this morning and denied new accounts of drug use made against him by former teammate and close friend Andy Pettitte. Using words like "misremembered" and mispronouncing the last name of his chief accuser, Brian McNamee, Clemens rambled and stumbled during his early remarks on Capitol Hill. Clemens' reputation and legacy were on the line, and there was the possibility that criminal charges could follow after the seven-time Cy Young winner testified. "I have never taken steroids or HGH," Clemens said, his voice rising. "No matter what we discuss here today, I am never going to have my name restored. McNamee told baseball investigator George Mitchell that he injected Clemens 16 to 21 times with steroids and human growth hormone from 1998-01.

Meanwhile, Clemens’ friend and teammate Andy Pettitte, who was born in Baton Rouge, admitted using human growth hormone in 2004, saying it was supplied to him that time by his father, The Associated Press reported this morning.

Poll: Readers interested in outdoors superstores

Good news for Cabela's and Bass Pro: Daily Report readers want to check out your outdoors superstores. According to an online survey, 35% of readers say they have been to the Cabela's in Gonzales since it opened in October. Three percent of readers have been to the Bass Pro in Denham Springs, which opened a week ago, while 6% have been to both stores. While 27% plan to visit one or both stores soon, 29% say they have no plans to shop at either store. More than 2,200 people participated in the survey.

Today's question: Are you planning on spending more on your special someone this Valentine's Day than in previous years?

News roundup: Sluggish economy won't hurt Valentine's Day; Lickable ads to make debut; More Americans taking more drugs

Love isn't free: Americans are expected to spend about $17 billion on Valentine's Day gifts, flowers and cards, The Palm Beach (Fla.) Post reports. The National Retail Federation says consumer spending on the romantic holiday has increased by 53% over the past five years, with shoppers spending an average of $123. Wanna lick? Move over scratch and sniff: A full-page ad to run in People magazine next week will allow readers to sample Welch's grape juice by licking the ad. The Wall Street Journal says marketers are excited by the technology, but are concerned about the "ick" factor since many magazines are passed from reader to reader, like in doctor's offices. One Welch's official says "a lot of people won't lick a magazine no matter how good it tastes." Got the prescription: The number of Americans with at least one prescription has increased to 74% in 2006, up from 67% in 2000, according to a study. Express Scripts, a pharmacy benefits manager, says the number of prescriptions per person rose 32% over that period, from 10.8 in 2000 to 14.3 in 2006. Rising obesity rates are fueling much of the pill-popping, with increased purchases of antidiabetic and antihypertensive medication.