Developer drops out of Capitol Lofts; project on hold

The proposed Capitol Lofts apartment complex in Spanish Town that has ignited a firestorm of controversy in the historic neighborhood is dead, at least for the time being. Developer David Slaughter—who signed a purchase agreement with property owner Richard Preis last summer to buy 1.2 acres for the project, including seven houses that would have to be torn down—says he pulled out of the deal because of resistance from the Historic Spanish Town Civic Association. Slaughter says the guidelines that the civic association and the city's Historic Preservation Commission wanted him to follow would not allowed him to reach an acceptable profit level. Preis says he will decide early next year whether to keep the rental properties, sell them or partner with another developer. Preis says he has been approached by three or four interested parties, but so far has no specific plans. In August, the HPC cited Preis for effectively demolishing the houses by neglect because of their dilapidated condition, a citation that if upheld by the Metro Council would require him to fix them up. Preis appealed the demolition-by-neglect citation to the Metro Council last night, but the Council voted to send the issue back to the HPC for a full hearing. If the HPC rules against him at its Dec. 1 meeting, he can go back to the Metro Council and appeal.—Stephanie Riegel

This story has been changed since it was first published.

James Construction sold to California firm

A California-based contractor says it has reached a deal to buy James Construction Group, one of the biggest employers in the Capital Region, for about $135 million. Primoris Service Corporation says it will buy James with a mix of stock, cash and a promissory note. The plan is to make James, which has 1,700 employees locally, a wholly owned subsidiary of Primoris. James CEO Mike Kilgore would continue to run the firm. Primoris, which specializes in construction and engineering for the power and energy sector, says the deal will build up its business in Florida and Texas as well as allow it to enter the Louisiana market. In a statement, Brian Pratt, chairman, president and CEO of Primoris, says the purchase allows the firm to expand its portfolio of services to include heavy civil construction and add a good team of professionals. James posted $410 million in revenues in 2008. Projects the company has worked on include Shintech's PVC plant in Iberville Parish, the Interstate 10-Mall of Louisiana Boulevard interchange and rebuilding a runway at Metro Airport. The sale is expected to close before the end of the year.

LaPolitics by John Maginnis: Streamlining friction

In a confrontation building up for weeks on the Streamlining Commission, Treasurer John Kennedy's agitation of the Jindal administration resulted in a clash with Commissioner of Administration Angele Davis over state contracts and the proposed LSU teaching hospital in New Orleans. At Wednesday's meeting of the advisory group, Kennedy pressed for the Office of Contract Review, under Davis, to rein in questionable contracts by conducting cost-benefit analyses of pacts over $50,000. Davis argued against what she called "a new layer of bureaucratic micromanagement" that would second-guess policy decisions made by the Legislature and agency heads. No vote was taken, but the conflict could escalate Monday when Education Superintendent Paul Pastorek comes to the commission to explain and defend the thousands of professional services contracts his agency lets.

—The advisory commission reviewing higher education is steadily building an agenda of recommended changes for the Board of Regents, the governor and the Legislature to address. Now a coalition of chambers of commerce and local business groups is forming in aims of building a consensus of local support for the reforms. A source involved says the state's largest chambers and Blueprint Louisiana have signed onto the effort that will be unveiled in the coming weeks.

—Even if U.S. Sen. Mary Landrieu votes with Democrats Friday or Saturday to take up the health-care bill, she has yet to commit to support it in the end, according to her staff. She is widely reported to be among the last three Democratic holdouts that Senate Majority Leader Harry Reid is courting. The Washington Post reported, "Landrieu has lobbied for additional benefits for the state." It didn't elaborate, but congressional sources say the need to fix Louisiana's post-Katrina Medicaid match problem, amounting to $700 million over two years, is at the top of her wish list.

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

Publisher: Time for leadership in higher education

Opportunity is knocking for changes in higher education, says Business Report Publisher Rolfe McCollister. If higher ed is to survive and flourish in Louisiana, the new higher ed commission and the Legislature must make many tough decisions and set priorities. "Expectations are high for the higher ed commission," he says. "The ominous budget deficits our state faces dictate that there must be tough decisions and bold action. We cannot simply play with the margins." Plus, a Times-Picayune series shows power of school choice, more good news for Baton Rouge and thanks for the honors. Read the full column here. Send comments to editors@businessreport.com.

Poll: SIPC should cover Stanford losses

Fifty-eight percent of people who responded to a Daily Report poll say the Securities Insurance Protection Corporation should cover some of the losses from Stanford Financial Group investors. Thirty-four percent say the nonprofit agency shouldn't cover the losses suffered by people who invested with Stanford and 8% were unsure. Nearly 1,100 people participated in the poll. The Louisiana congressional delegation has asked the Securities and Exchange Commission to force SIPC to cover Stanford investors.

Today's question: What should Richard Preis do with his Spanish Town properties?

New U.S. jobless benefit claims unchanged at 505K

The number of newly laid-off workers seeking unemployment insurance was unchanged last week, remaining above the level that would indicate the economy is adding jobs. Still, new claims—which are considered a gauge of the pace of layoffs and an indication of companies' willingness to hire new workers—are down about 22% from this spring. The Labor Department says that first-time claims for jobless benefits were a seasonally adjusted 505,000, the same as the previous week's revised figure and matching analysts' expectations. A year ago, there were 533,000 initial claims. The four-week average, which smooths out volatility, fell for the 11th straight week to 514,000, the lowest level in almost a year. While the steady decline in claims is evidence that firings are decreasing, most economists say weekly claims would have to fall to about 425,000 for several weeks to signal that the economy is actually adding jobs. Some economists put the number higher, around 475,000.

News roundup: LSU students part of prize-winning team ... Americans watching more TV

First place: Marcelle Boudreaux and Jonathan LeJune, two LSU architecture students, were part of a team that took first place in the 2009 Chase Community Development Competition. Boudreaux and LeJune teamed up with students from the University of New Orleans, DePaul University, and the Lower Ninth Ward Center for Sustainable Engagement and Development to create a business plan and architectural renderings for a grocery store in New Orleans' Lower Ninth Ward. Getting a grocery store in the historic neighborhood, which was devastated by Hurricane Katrina, has been a long-term project. The winning team, which collected a $25,000 prize, included UNO urban planning students Rosanna Ballinger, Melissa Ehlinger, John King and Lucas Lilly.

Still the king: Americans are watching more television than ever, despite competition from the Internet, DVDs and advanced video game machines. Americans spent 4 hours and 49 minutes a day watching TV during 2008-09, reports the Nielsen Company. That's up four minutes a day from the 2007-08 season and nearly an hour from 1997-98. Nielsen said there were several factors, including more televisions in the household, a greater selection of channels and programming and the fact that there are more unemployed people staying at home, watching television.