This Afternoon's Headlines / Wed, Feb. 03, 2010
News Alert: Judge refuses to stay foreclosure suit against Perkins Rowe
One day after hearing oral arguments on the issue, a federal judge has refused to stay the foreclosure lawsuit against Perkins Rowe while its attorneys appeal an earlier ruling to the 5th Circuit Court of Appeals. Lawyers for Tommy Spinosa’s mixed-use development asked U.S. Judge James Brady on Tuesday to stay, or suspend, the case while they appeal a ruling he issued in November refusing to dismiss the case from federal court. Spinosa’s lawyers have tried to argue the foreclosure proceedings more appropriately belong in state court. At Tuesday’s hearing, attorneys for KeyBank National Association, which heads the group of banks collectively owed some $170 million by Spinosa, argued that staying the case while the matter works its way through the appellate system could delay proceedings for up to a year and wouldn’t be fair to lenders or to tenants and residents of the development. In his ruling today, Brady said Spinosa’s attorneys had failed to show that his November ruling "involves a substantial difference of opinion over a controlling question of law." —Stephanie Riegel
Economic development agencies, legislators, DOTD talk high-speed rail
Members of the Baton Rouge Area Chamber, Greater New Orleans Inc. and local legislative delegations met this morning with Department of Transportation and Development Secretary William Ankner to discuss potential commuter and high-speed rail between Baton Rouge and New Orleans. Ankner says this was the first in a series of meetings to discuss ways the state can position itself to land federal money for high-speed rail service. Connecting Baton Rouge and New Orleans with high-speed rail has been a goal of local economic development groups. "We recognize the fact there are a number of hurdles, such as how to pay for the operating costs," says Ankner. The price tag for commuter rail service has grown from $300 million to $450 million. That includes a multi-step system that would eventually be capable of average speeds of 110 miles per hour; the stretch over the Bonnet Carre Spillway, however, would average 79 miles per hour. While the Obama administration recently announced $8 billion in grants for establishing rail service, Ankner says there are opportunities for other federal money. "There's funding included for rail in the budget the president just put forth," he says. The group plans to meet again in six to eight weeks. —Timothy Boone
Downtown to get police storefront, Roly Poly
A deal for the state to buy a parking garage at Third and Convention streets clears the way for a downtown police office and a Roly Poly restaurant. Plans are to open the office and the restaurant in the next three or four months, says Brad Way, an agent with NAI/Latter & Blum, who represented the state and Roly Poly in the parking garage purchase. This will be the fourth Roly Poly in Baton Rouge. Establishing the downtown police office has been a longstanding project for city and police officials. Sgt. Don Kelly, a police spokesman, says the office will be a place where officers can work when they’re handling downtown events as well as a place to store equipment. Kelly says the office won't be a substation, since there won't be officers on duty round the clock. "It may evolve into a fully staffed station, but for now, this will be a place police can go in and out of," he says. —Timothy Boone
Holden: Keep lights downtown
Mayor Kip Holden says he wants the blue lights along Third Street to remain, even though the holidays are over. Holden says he's looking to light up other parts of downtown, such as the Louisiana Art & Science Museum. "Not to use a pun, but we feel like this highlights all of the activity going on downtown," he says. Holden got the idea for the lights after a trip to Chicago several years ago. He says the lights create a festive atmosphere, whether it's a holiday season or not. —Timothy Boone
Central School Board committee to make recommendation on PBK
A Central Community School Board committee will receive a report by attorney Sheri Morris on Monday that should influence what recommendation it will make to the full board in determining whether Houston-based PBK Architects retains the bids for new elementary and middle schools. The firm is currently under investigation by the Louisiana State Board of Architectural Examiners and may face fines for not having a license from the state when they bid for the projects in July and beat out two other firms. LSBAE cannot forbid the school board from entering into a contract with PBK, which was issued a license by the state in October.
The board voted to purchase a $2.4 million, 83-acre site for the two proposed schools on Sullivan Road at Gurney Road last week, but Superintendent Michael Faulk says the board is in a holding pattern on PBK until they hear Morris’ report. “We haven’t decided on a course of action yet,” he says. “Once we do that, then we can put this into its proper perspective. We want to do what’s in the best interests of the public.” —Emma James
Flood watch issued for southeast Louisiana
The National Weather Service’s New Orleans/Baton Rouge forecast office has issued a flood watch for southeast Louisiana, including the Capital Region, from Thursday morning through late Thursday night. Another low-pressure system moving from the western Gulf of Mexico is expected to bring two-to-three inches of rain, with isolated totals in excess of 5 inches possible by Friday morning. The Baton Rouge forecast calls for 100% chance of rain tonight, 100% Thursday and 60% Thursday night. Click here for the local NWS Web site.
LSU gets late commitments on National Signing Day
LSU has signed 27 football players on National Signing Day, a class that ranks among the best in the country. The Tigers’ signees were bolstered by a number of late commitments, including receiver Kadron Boone of Ocala, Fla.; defensive tackle J.C. Copeland of LaGrange, Ga., who had committed to Tennessee; receiver Jarrett Fobbs of Shreveport, who had committed to Texas A&M; and defensive lineman J.R. Ferguson of Frederick, Md. LSU’s class is ranked No. 6 by Rivals.com, No. 6 by Scout.com and No. 7 by ESPN. The Tigers missed on Thibodaux High School athlete Trovon Reed, who signed with Auburn, and Evangel defensive lineman Brandon Jackson, who signed with Texas A&M. For more information on LSU’s signees, click here.
Meanwhile, Florida has, by consensus, the No. 1 recruiting class, highlighted by defensive end Ronald Powell of Moreno Valley, Calif.; defensive tackle Dominique Easley of Staten Island, N.Y.; safety Jonathan Dowling of Bradenton, Fla.; and running back-linebacker Matt Elam of Palm Beach Gardens, Fla. For ESPN’s rankings, click here. For Scout.com’s rankings, click here. For Rivals.com’s rankings, click here.
Civil service panel, Jindal at odds
The Civil Service Commission is at odds with Gov. Bobby Jindal over how to revamp the way pay raises are given to thousands of state government workers. The commission agreed today to send out a compromise proposal for public comment, with a possible vote in March. Jindal rejected the commission's first plan. But several commission members said they will not back a proposal that Jindal wants, which would give near-total discretion to agency managers on the amounts given in pay raises. The issue is how to change the current pay raise system to a "pay-for-performance model" that includes a sliding scale of salary increases tied to performance. About 61,000 workers deemed "classified" under the Department of Civil Service would be affected by any changes.
Naked Pizza signs franchise deals for Florida, Colorado
In a success story for the Greater New Orleans region that tastes good—and is good for the economy, too—Naked Pizza has awarded area development rights for 58 units in central and south Florida and in Boulder, Colo., in its first stage of expansion. Cofounded by anthropologist Jeff Leach and investment banker Randy Crochet, the New Orleans–based firm seeks to offer a healthy, functional alternative to the traditional pizza chain. "Fast food is arguably the most successful commercial enterprise in the world in terms of marketing, product, distribution, and economies of scale," Leach says. "We're hijacking that with a pizza that is physiologically aligned with the way people should eat: that offers health instead of harm that's contributing to epidemics of obesity, cardiovascular disease, and unsustainable health-care costs." Since its inception in 2006, Naked Pizza has operated from a 498-square-foot shop near Tulane University. Despite its simple and unadorned furnishings, the restaurant has been widely covered in the media. The company’s unique concept and popularity have attracted investments from billionaire Mark Cuban and the Kraft Group, and plans for expansion were unveiled in September 2009. Read the rest of the story in 10/12 Corridor Weekly here.
LaHood says he misspoke in advice to Toyota owners
Transportation Secretary Ray LaHood now says he misspoke when telling owners of recalled Toyotas to stop driving them. LaHood revised his advice, urging owners to take realled vehicles to dealerships to get them repaired. LaHood told reporters it was "obviously a misstatement" when he told a House panel earlier today that he would advise owners not to drive recalled vehicles. The remark came during testimony to the Appropriations subcommittee on transportation. Toyota's most recent recall in the United States affects 2.3 million vehicles with the potential for sticking gas pedals.
News roundup: Construction begins on new sugar refinery ... High court will not rehear case affecting crawfish farmers
Sweet deal: One of the largest sugar cane refineries in the country is scheduled to begin operations in 2011. Construction officially began today on the Louisiana Sugar Refining plant at Gramercy. The $190 million project is a joint venture between Cargill Inc., Imperial Sugar Co. and Louisiana sugar growers. The refinery is being financed partially with $100 million in special bonds issued for projects in areas hit by the 2005 hurricanes. Louisiana sugar industry officials say the project will combine one of the largest agricultural sectors in the state with the refining and marketing experience of Cargill and Imperial, providing a needed boost to farmers. The plant will refine about one million tons of sugar annually.
$1.75 million judgment overturned: A $1.75 million judgment against a pesticide producer was overturned last year by an appellate court, and the Louisiana Supreme Court will not reconsider the matter. Adams & Reese's appellate team represented Bayer CropScience, which was charged by Louisiana crawfish farmers with adversely affecting their crops. A 2007 trial led to a $1.75 million verdict against the company, which was overturned by Louisiana Third Circuit Court of Appeal in April 2009. The State Supreme Court refused to hear a motion for a rehearing.