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Jindal on the road [again]

Gov. Bobby Jindal spent the first week of July in Houma bragging about workforce development and in Monroe touting new sex offender laws. An exclusive interview was also granted to WAFB-TV, the CBS affiliate in Baton Rouge. The second week of the month brought with it a trip to New Orleans to highlight reforms in mental health care and an actual Q&A with the Press Club of Baton Rouge.

Jindal, a Republican, has kept himself busy in the aftermath of the legislative pay raise fiasco. Bending to public pressure, he vetoed the salary increase to limited fanfare and then took to the road giving speeches about his other accomplishments. In political terms, he entered campaign mode—yet again.

If anything, the Jindal brand is bolstered by its “constant campaign,” a strategy made popular by another Southern wunderkind governor, Bill Clinton: Never let up. Never say die. Always stay on message and hit the road as much as possible.

Voters might be willing to give Jindal the benefit of the doubt after hearing from him in person, but lawmakers are still struggling to make heads or tails of the new governor who promised not to veto their pay raise, among other broken pledges. Any reconciliations that may currently be under way, though, are surely off to a rocky start.

For starters, Tommy Williams has resigned as Jindal’s legislative director. At 68, Williams was previously the chief Louisiana lobbyist for BellSouth and arguably the most experienced member of Jindal’s young administration in dealing with the House and Senate. “No one wanted to listen to him,” says one lawmaker in Jindal’s leadership team. “Every time Tommy would bring something to the table, they would stop him short. They have no interest in historical perspectives.”

Jindal also failed to reach out to lawmakers during his trips around the state. As for legislative affairs, it’s only worsening relations. Rep. Damon J. Baldone, a Houma Democrat, says Jindal’s team needs to focus on damage control. The hit Jindal took during the session, at his own hands, is being understated in most cases. “You lose respect when you say one thing and do another,” Baldone says. “And trust is difficult to build back.”

Understating the damage may be part of Jindal’s recovery strategy. He’s drawing a line, with the Legislature on one side and the voters [with him] on the other. Jindal has made targeted vetoes of bills that water down ethics laws and slashed money earmarked for wasteful projects. When doing so, he has made sure to sweep blame in the right direction—away from him and his administration. Of course, there will be payback on some level, which Jindal knows. He has even discussed the likelihood with reporters. But he has framed the fight coyly when addressing lawmakers in the press: “Direct anger at me, not at the citizens of Louisiana.”

While Jindal is on the mend, at least in voters’ eyes, the pay raise issue itself isn’t likely to die any time soon. Politicos have seen what kind of charge it sends through the electorate and many are trying to find ways to tap into the anger. For instance, in Louisiana’s 7th Congressional District, Sen. Donald R. Cravins Jr., a Democrat from Opelousas, is attacking the incumbent for—what else?—pay raises. Cravins, who voted against the legislative raise, says GOP Congressman Charles Boustany of Lake Charles is guilty of accepting public salary boosts through cost-of-living increases. It’s a sure sign for incumbents facing re-election this fall: Beware. —Jeremy Alford

Ethics exodus

Louisiana residents are left with the echo of slamming doors as more than 250 members of the state’s boards and commissions have walked out on their commitments.

A number of boards are all but completely defunct for the time being, including the Board of Ethics, Louisiana State Arts Council, Louisiana Geographic Information Systems Council and the Louisiana Emergency Response Network Board, as at least half of their members bid farewell to public service.

Although most do not cite recent financial disclosure laws as the reason for their absence, the prospect of opening their personal and family finances to the public undoubtedly had an impact on the decision to leave. Financial disclosure rules now mandate that any business of which a board or commission member owns 10% or more [including business ownership of their spouses] must be disclosed for public record. It would also require members to admit any conflict of interest they might have with the nature or responsibilities of their position.

While the state may take a while to recover from the exodus, what seemed to be a severe loss to the state may be the perfect opportunity for the birth of a new generation of leadership.

For a full list of resignations, click here. —Olivia Watkins

Homecoming party

As the Republican Party of Louisiana gears up to support John Kennedy for the seat currently held by New Orleans Democrat Mary Landrieu, it has selected a new leader of its own. Charlie Davis was recently appointed as the state director of Victory 2008.

While Davis seems to have been out of the political spotlight for a few years, he currently serves as president of Liquid Ventures, a consulting firm that specializes in campaign management, fundraising, event management, public relations and project management. From 1995-1998, he also held numerous positions with the Republican Party of Louisiana, including deputy director, finance director and director of technology.

State Chairman Roger F. Villere Jr., says Davis “has extensive political and business experience that makes him the right person to lead our efforts to elect John McCain as president of the United States, elect John Kennedy as the next U.S. senator from Louisiana and to coordinate the party’s support for our congressional candidates.”

Davis certainly faces a full to-do list with only a few short months with which to create victories for Republican Party candidates. —O.W.

BUSINESSofPOLITICS

Workforce money vetoed: Gov. Bobby Jindal vetoed $750,000 dedicated to a “master plan for a workforce facility” for the Louisiana Community and Technical College System. The veto led to double takes as it was in contrast to Jindal’s commitment to workforce development during the recent session. The veto also was surprising since it impacts the system’s critical role in Jindal’s plan. LCTCS will be at the forefront of the initiative since it will be training the targeted workforce and placing people back into the labor market. Kizzy A. Payton, the LCTCS Director of Public Information, says the money was needed to conduct an analysis of classrooms, buildings and other structures on the state’s various campuses. The money is still needed, she says, and “we’re going to keep working with [the administration] to work something out.” The governor, Legislature and LCTCS are all “still committed” to workforce development, Payton adds.

Property tax laws still adjusting: Jindal endorsed a set of bills earlier this month that seek to address perceived weaknesses in Louisiana’s property tax laws that chiefly came about as a result of the destruction wrought by Hurricane Katrina in 2005. Act 488 by Rep. Damon J. Baldone, a Houma Democrat, reverses a schedule for late payments that was implemented in the wake of that tumultuous hurricane season. His legislation changes the day in which interest begins to accrue on delinquent property from 30 days after the payment deadline to Dec. 31 of the year that the taxes are actually due. Interest currently accrues at a rate of 1% per month, which is a figure that will not change under the revised law that takes effect Aug. 15. Jindal also signed into law Act 506 by Rep. Jerome “Dee” Richard of Thibodaux, who has no party affiliation. Playing off a concept that is related to Baldone’s bill, Richard’s legislation allows assessors to permit the postponement of property tax payments when a declaration of emergency is issued by either a governor or parish president. The new Louisiana Homeland Security and Emergency Assistance and Disaster Act allows declarations for overflow, general conflagration, crop destruction, hurricanes or “other public calamity.” Assessors can also postpone payments, in certain cases, for residents who have lost their homes to an emergency or calamity, or for those who would suffer a “substantial hardship” if they were to pay. Richard’s law takes effect on Jan. 1, 2009.

Well-deserved pay: During the final days of the recent regular session, GOP Rep. Jane Smith of Bossier City pushed through House Concurrent Resolution 105, which possibly sets the Legislature up to adopt a bonus pay program for veterans in 2009. It requests the Louisiana Department of Veteran Affairs and the Veterans’ Affairs Commission to study and make recommendations regarding an “Afghanistan, Iraq, Global War on Terror Bonus.” The state has a long, honored tradition of establishing bonus payments to veterans, dating back to World War II, for honorable service during wartime. Smith wants to re-establish such a fund next year—and she surely won’t be alone in her sentiment, considering the Legislature’s recent track record of increasing the pay of men and women who serve the public. —J.A.

Geaux green

Beneath white tents and paper fans on July 9, Project Chair Claudette Reichel welcomed visitors to a preview of the Louisiana House—Home & Landscape Resource Center. The ribbon-cutting ceremony and reception heralded the completion of the project, which began in response to Hurricane Katrina in 2005.

Partnering with organizations such as the Louisiana Department of Natural Resources, U.S. Department of Energy, Louisiana Office of Homeland Security and Emergency Preparedness and FEMA, the LaHouse team designed and constructed a showcase home and seven acres of educational landscape exhibits. Local professionals such as Remson-Haley-Herpin Architects and structural engineer Bill Coulbourne were also involved in the project. The house and exhibit space serve as a community outreach center to demonstrate smart, sustainable building.

Reichel says that the new facility “pulls together all of the various materials, which the AgCenter already produces, into a real facility in a permanent way.” The house is “designed to sustain 130 mph winds and is resistant to natural hazards of the region, such as mold and termites. All of this was done with Hurricane Katrina in mind. We’ve learned a lot since the storm,” Reichel says.

Rather than building to EPA Energy Star standards, designers and architects designed the home to meet the US Department of Energy’s Building America Program standards—which have strict requirements for energy use and sustainability.

The preview resumes July 15 from 9 a.m. to 4 p.m. Wednesday through Friday. More information can be found at lsuagcenter.com/lahouse. —O.W.

Fill up in paradise

Hotels along the Gulf Coast are offering a slew of incentives to draw visitors, including gas rebate cards.

New Orleans’ Renaissance hotels have begun offering $25 gas rebates for every room booked for groups of 10 or more rooms through Sept. 1. Michael Touchy, director of sales and marketing for Renaissance Pere Marquette and Renaissance Arts Hotel, says “gas prices are headline news and strong budgetary considerations in today’s world. We know it’s a competitive environment and we want to stay on top of what’s timely and top of mind for our clients.”

Travelers are finding deals along the Florida Panhandle. Chain hotels, such as the Courtyard by Marriott at Sandestin, have similar offers such as a $50 gift card for any consecutive five-night stay.

Corporate hotels aren’t the only destination getaways making the gas offer. Mom-and-pop establishments like the Emerald Sun Beach Renters, which only has two beach-access houses for rent, is offering a $200 gas card to its guests through Nov. 1. While the gas card may pale in comparison to the almost $4,000-per-week summer rental rates, it might help offset the cost of gas as you make the drive to and from the sandy paradise. —O.W.

Living faith

In the wake of Sen. Barack Obama’s promise to expand President Bush’s faith-based initiatives if elected, comes a study from LSU Associate Professor Troy C. Blanchard that finds the types of religious congregations in a community might have a direct impact on mortality rates.

Blanchard, along with co-author John Bartowski from the University of Texas at San Antonio and researchers from the University of West Georgia and the University of Alabama at Birmingham, conducted a study to examine types of religious congregations in communities and their link to community outreach efforts. The study, recently published in Social Forces’ June issue, claims that communities with higher numbers of Catholic and mainline Protestant churches have lower mortality rates.

Blanchard says “these types of churches have what’s known as a ‘worldly perspective.’ Instead of solely focusing on the afterlife, they place a significant emphasis on the current needs of their communities.” In focusing on community needs, Catholic and mainline Protestant churches tend to develop programs to aid the homeless, improve the infrastructure of their environments and openly participate in public charity.

The study brings awareness more to the concept of what Blanchard calls “social cohesion among citizens,” which might be the real message behind the study—communities that care for one another create the possibility for longer life expectancies. —O.W.

Welcome to the machine

Baton Rouge General’s Pennington Cancer Center is a little busier lately thanks to a new attraction: a Siemens ARTISTE Solution “next generation” radiation therapy machine. At a cost of roughly $3.5 million, the equipment is so cutting-edge that Baton Rouge is the first site in the United States to get one.

As such, Pennington is entertaining visitors from cancer centers around the country who want to learn about the machine and see first-hand whether it lives up to the hype before investing in one themselves. The Food and Drug Administration only cleared it in December 2007.

The big deal about the ARTISTE is that it’s a major leap in the precision, accuracy and effectiveness of cancer-fighting technology in its ability to pinpoint tumors with radiation while leaving healthy tissue undamaged.

“There’s a lot of interest,” says Zack Smith, director of the Pennington Cancer Center. “A lot of people are jockeying to come and see us.”

It’s an extremely versatile machine, and it’ll be some time before the center figures out all of its capabilities. They’re starting out with basic cases at first and will gradually move on to more complex treatments. Only in the last few weeks have the center’s first patients been treated with the ARTISTE.

“It’s doing everything we hoped for and fulfilled its promise,” Smith says, “and now we’re just upping the ante to get every claim verified.” —Steve Clark

ONTHEBEAT

Inspector gadget: Former East Baton Rouge Parish Sheriff Greg Phares has been hired as an investigator for the Inspector General’s office. Inspector General Stephen Street says Phares was hired because of his more than 30 years in law enforcement.

High cotton: The college football season is still two months away from kicking off, but ESPN.com analyst Mark Schlabach already is making bowl predictions. Schlabach predicts LSU will face Texas in the Cotton Bowl, a repeat of the 2003 game in which the Longhorns rallied for a 35-20 victory.

Not high cotton: U.S. cotton acreage dropped by 30% in the past year, reaching its lowest level in 20 years. But a report from Rabobank Food & Agribusiness Research and Advisory says the long-term outlook for the crop is favorable because major growers are shifting cotton acreage to food production.

Black gold: Baton Rouge-based Petroplex International says it plans to apply for a permit to build a $300 million oil storage facility in St. James Parish. The storage facility would be capable of holding 4 million barrels of petroleum products.

Power up: The Shaw Group’s maintenance division has been awarded a $50 million contract to upgrade a West Virginia power plant. The project at Appalachian Power’s Amos Power Plant in Charleston will assist American Electric Power’s program to cut emissions from its coal-fueled generating fleet.

Cox expands local calling: Cox Communications digital telephone customers will now be able to make unlimited calls to anywhere in their area code without paying long-distance charges. Existing customers will see no change to their base rates.

Buckeye state: Area Vinyl Distributors, which has locations in Gonzales and Walker, has been purchased by Norandex Building Materials Distribution of Ohio, one of the largest distributors of siding, windows and doors. Both Area Vinyl locations will change their name to Norandex, and all employees will remain with the company.

No false alarm: Alarm Center Security has purchased a .6-acre tract at Airline Highway and Siegen Lane for $400,000 and plans to build a central monitoring facility on the property. Alarm Center Security plans to start building the office on the site of a former Exxon gas station within the next six months.

The deal’s off: A $6.1 billion deal by Fortress Investment Group and Centerbridge Partners to buy Penn National Gaming—which owns Hollywood Casino Baton Rouge—is off. Fortress and Centerbridge agreed last summer to buy Penn National at $67 a share, but the casino company’s stock plunged earlier this year; it’s now trading at $27.65 a share.

It takes a Little Village

The owners of the popular Little Village restaurant are planning to open a second downtown fine-dining spot this fall in the refurbished Kress at Third & Main building. A letter of intent is in place for the Little Village Fish House to move into a spot along Third Street, says John Schneider, president of Cyntreniks of Baton Rouge, which is redeveloping the Kress building.

Cyntreniks is negotiating with several other retail tenants, including a deli that would sell breakfasts and light lunches and then serve desserts and cordials at night, a movie theater and a regional women’s clothing store. The plan would be to have the restaurants, women’s store and theater on Third Street. On the Main Street side, potential tenants include a pharmacy, an urgent care clinic and a credit union, Schneider says. “That would take up the whole first floor,” he says.

Cyntreniks is talking with several tenants about the 12,500 square feet of office space on the second floor; Schneider says the developers would like to see one tenant take up all that space, but if that doesn’t happen, the area would be divided up among smaller businesses. —Timothy Boone

Banking on business

After more than a year of work, South Louisiana Business Bank officially opened its location on La. Highway 42 in Prairieville. The bank received approval to open from the state Office of Financial Institutions on July 1 after raising $12.6 million in capital.

CEO Ron Wilson says South Louisiana Business Bank was formed because investors wanted a local institution to serve the business community. “They didn’t want decisions about loan approval being made in Baton Rouge or parts beyond,” says Wilson, who has more than 35 years of experience with banks in Arizona, Washington and California.

South Louisiana Business Bank will offer several services to bring in customers, such as the Southern Diamond Savings, which pay at a CD rate but offer total liquidity, including the ability to transfer funds to checking accounts up to six times a month, and remote capture services, which allow customers to deposit checks and credit card sales instantly from their business without having to make a drop-off at the bank. —T.B.

Moving up?

The Center for Planning Excellence could be moving out of the Baton Rouge Area Foundation building and into its own offices on Main Street. Chenevert Architects has been hired by Commercial Properties Realty Trust, the for-profit arm of BRAF, to renovate 442 Main and 438 Main, two buildings next to Dimensions in Design that are a combined 18,000 square feet, according to documents on file with the city-parish building permit office. One of the buildings, 442 Main, is known as the Saltz Building because it was once home to Saltz the Tailor.

CPEX Vice President Rachel DiResto says the planning organization is considering moving into the new building because it has outgrown its space. Mukul Verma, a spokesman for BRAF, says Commercial Properties is busy with ongoing projects, so the Main Street buildings won’t be addressed until the end of the year. —T.B.

Pay up

Teresa and Manuel Sanchez, owners of J&M Painting Contractors, picketed at Perkins Rowe earlier this month, saying they are owed more than $7,800 since March. J&M was working as subcontractors for Omega Construction, which was working for MAPP Construction on the Fish City Grill restaurant. The couple says they plan to protest until they get paid for their work.

“We need this money to live on,” says Teresa Sanchez, who was holding a sign that read, “Where is our money?”

Mike Polito, who owns MAPP Construction, says his company was waiting on payment from Fish City Grill. Paul Carlson, general manger of Perkins Rowe, says J&M’s problems are “entirely between them and Fish City Grill” and don’t involve developer JTS.

There are liens on file against JTS, which developed the mixed-use project at Bluebonnet Boulevard and Perkins Road. The problems stem from the national credit crunch, which dried up some of the funding sources for JTS. The contractors contacted by Business Report didn’t want to discuss their problems on the record, saying that they were hopeful a resolution could be reached.

Carlson says the amount of liens was not unusual and are part of doing a project the size of Perkins Rowe. Also, not every liens was filed because of nonpayment; in some cases they involved disputed work that had to be resolved. The project is working toward getting a new source of funding for the permanent loans. “Everybody is going to get paid,” he says. “This has nothing to do with Perkins Rowe running out of money. That isn’t the case.” —T.B.

New kid on the Block

Block Construction, which started three years ago as a commercial builder, is expanding its focus. A new parent company, BlockCompanies, has been formed to oversee Block Construction and a new multi-family housing division, Block Builders.

Jason Keller, Block president, says the company set up the division to meet the increasing need for apartments and condominiums. Block Builders has started its first project, an $8 million apartment-to-condominium conversion of Tiger Manor on July Street. The conversion of 233 LSU-area apartments should be completed by October 2009.

Block Companies has more than $30 million in projects set for this year, including New River Center, an office park in Gonzales, and an office expansion for Cajun Constructors. —T.B.