LSU chancellor O’Keefe resigns

Sean O'Keefe on Wednesday morning submitted his letter of resignation as LSU chancellor. O’Keefe will relinquish his administrative duties to an interim chancellor on Feb. 1, and he will continue as a professor of public administration until June 1.

The move comes only a couple of weeks after it became public that LSU System President John Lombardi had reportedly told O'Keefe to start looking for another job.

O'Keefe, the former head of NASA and Secretary of the Navy, was hired by the LSU Board of Supervisors in a unanimous vote January 2005. While board officials have spun it as O'Keefe's fate being in Lombardi's hands, it seems more likely that O'Keefe's troubles with the board began long before Lombardi's arrival.

Board Chairman Jerry Shea said O'Keefe's fate depended on Lombardi's evaluation and the board had no business trying to micromanage the process. Other board members, such as Charlie Weems, said it was the board's duty to undertake a careful evaluation of O'Keefe and, ultimately, to decide his fate.

Emmet Stephenson, an LSU alumnus who in 2007 pledged $25 million to LSU, says there's plenty of evidence that O'Keefe's predicament has fingerprints other than Lombardi's. "I'm willing to say there's an awful lot of smoke in this situation that seems to have been there from some time." Stephenson says. The idea that O'Keefe lacks the support of the business community at large—as alleged in a mass email from LSU donor Jonathan Martin supporting O'Keefe—isn't factual, Stephenson says. "It's just flat wrong, and wrong to say it."

Others say O'Keefe's problems started with a negative job review in 2006. LSU officials refuse to comment on details of the review other than to acknowledge that it took place. Sources say a small group of key LSU board members is behind the move to oust O'Keefe, and that Lombardi was essentially handed the job of hatchet man upon his arrival as system president.

Stephenson says that without O'Keefe's help and influence, he wouldn't have given LSU $25 million, $11 million of which went to create the Stephenson Disaster Management Institute. "I have a lot of respect for him," Stephenson says. "I don't see why good people can't work together for LSU's benefit. By helping LSU we're going to help the whole state. I think the black eye that LSU's going to get from this if they succeed in running Sean off is going to be there for a long time."

Former LSU board member and past chairman Stewart Slack says O'Keefe's departure is "very disappointing. I think it's going to slow the momentum of the flagship agenda and the capital campaign. I hate to see that. It's a poor reward for great work."

To read O'Keefe's resignation letter, click here. To read LSU’s news release, click here. --Steve Clark

BREC recommends site for first pathway

BREC’s Planning and Engineering Committee has unanimously recommended a 2.8-mile corridor from Siegen Lane to Bluebonnet Boulevard along Dawson and Ward creeks as the site for East Baton Rouge’s first "linear park." The concept will be presented to the BREC Commission for possible approval at its next public meeting, scheduled for 5 p.m. on Jan. 24 at BREC’s offices. If the first trail is successful, BREC hopes to create a network of pedestrian and bicycle pathways that would connect the parish’s various parks. The corridor was selected because it's in a visible location that links many destinations with potential for future growth, landowners support the project and construction can be accomplished quickly, BREC says. More information is available at capp-online.org.

Shaw awarded contract for Chinese chemical plants

The Shaw Group's Energy & Chemicals division has been awarded an engineering and procurement contract for two plastics plants in China. The company will work on the acrylonitrile butadiene styrene (ABS) plants in Tianjin for the Tianjin Dagu Chemical Industry Co. Once the work is completed, the plants will produce 200,000 tons per year of ABS, which is used to make piping, musical instruments and auto body parts. The value of the contract was not disclosed.

ExxonMobil to mark opening of $20 million plant

ExxonMobil Chemical will commemorate the completion and start-up of its new $20 million Baton Rouge Specialty Compounding plant Thursday. The expansion created 60 new jobs. The high-tech plant is producing polymer products such as exterior door panels, bumpers and engine components for the automobile industry. The plant, which joins ExxonMobil Baton Rouge’s seven-facility group in the Baton Rouge area, will initially have a 40,000-ton production capacity a year. It is located adjacent ExxonMobil’s Exel warehouse, where the company houses its overall products for shipping.

EBR schools physically crumbling

The condition of Baton Rouge Magnet High School has gotten most of the attention, but the East Baton Rouge Parish School System is looking at spending $488 million to replace and renovate decaying schools. How did the schools get in such poor condition? What can be done to repair them? Read the Business Report cover story here.

Inside the Republican race for Louisiana

The process for selecting Louisiana Republican delegates, the folks that will eventually help nominate the next GOP candidate for president, is officially under way. More than 600 people have registered to run as delegates, with about a third of that total applying on Saturday’s deadline. By most accounts, the most aggressive push came from U.S. Sen. John McCain of Arizona and former Massachusetts Gov. Mitt Romney. But Jason Dore, political director for the Louisiana Republican Party, says there were a few surprises. While official numbers are not yet available, a small slate of delegates did come forward for former Tennessee Sen. Fred Thompson, the well-known actor. “But I think a lot of those people are still waiting to see what happens in South Carolina, and they could end up being a pro-life conservative slate if things don’t work out for the Thompson campaign,” Dore says. The biggest surprise, though, may have come from Ron Paul, the Texas congressman mounting a quasi-libertarian campaign on the GOP side of the ticket. Dore says the Paul campaign dropped off a “whole slate” of delegates last week, which wasn’t expected. “We’re being watchful, though, because we want to make sure all of the delegates were registered Republicans before the Nov. 30 deadline,” Dore says, adding there was a great deal of interest expressed by nonparty voters about switching to the GOP in support of Paul. “We started contacting registrars of voters in 17 parishes yesterday about roughly 90 people, the vast majority of which were signed up for Ron Paul.” The delegates still have to clear a caucus-like election process later this month before anything is official. All of the national delegates, once chosen at the upcoming Louisiana Republican Convention, will be uncommitted unless one of the Republican candidates receives 50% of the vote or more in Louisiana’s presidential primary on Feb. 9. If that happens, 20 of Louisiana’s delegates will be assigned to that candidate for the first round of balloting at the national convention. --Jeremy Alford

Former Catholic High QB expected to join Texas coaching staff

Major Applewhite, a former quarterback at Catholic High, is expected to be named as an assistant coach at the University of Texas, The Birmingham (Ala.) News reports. Applewhite, who was a standout quarterback for the Longhorns from 1998-2001, is currently the offensive coordinator at Alabama. If Applewhite takes the job, he'll be Texas’ second hire with Baton Rouge ties. Will Muschamp, who was defensive coordinator of LSU's 2003 BCS Championship team, was named the Longhorns’ defensive coordinator last month.

News roundup: Most expensive, least expensive vehicles to insure announced; Super Bowl advertisers lining up; Mortgage money available

High, low premiums: A survey of the best-selling cars and small trucks in the U.S. found that the Dodge Ram pickup truck was the most expensive vehicle to insure, and the Chrysler Town & Country minivan was the least expensive to insure. Insure.com, which released the report, says a variety of factors determine insurance prices, including how frequently a vehicle is stolen, the cost of repairs and the rate of passenger injuries. Other expensive vehicles to insure include the Chevrolet Silverado C/K pickup truck and the Toyota Prius. The Ford Escape SUV and the GMC Sierra pickup were among the cheapest to insure. Big money on the big game: Pro football fans will have to wait until Sunday to find out who's playing in Super Bowl XLII, but the advertising lineup is already taking shape. As of Monday, only one ad spot was left for the Feb. 3 game in Glendale, Ariz., The Wall Street Journal says. Under Armour, which makes athletic wear; Cars.com, an online auto dealer; and Tide detergent will make their Super Bowl ad debuts alongside regular sponsors such as Pepsi, FedEx and Anheuser-Busch. Annual program gets new funding: The East Baton Rouge Mortgage Finance Authority announced today it has $20 million available in mortgages for eligible low- and middle-income residents who purchase houses in the parish. For more information, call Astrid Clements or Vickie Theriot at 922-5111.