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Suit settled

A long-running federal lawsuit by the parent company of Baton Rouge General Medical Center against Adventist Health System has been settled, General Health System officials confirm. Baton Rouge General spokeswoman Terri McNorton says board members are “very pleased” to have the matter resolved, though she wouldn’t divulge the settlement amount, citing a confidentiality agreement between the parties. Other sources have placed the figure at around $52 million. General Health had originally sought $68 million.

Adventist, based in Winter Park, Fla., ran General Health for three years in the late 1990s. General Health filed suit against Adventist in 2001 in response to a suit by Adventist against General Health claiming nonpayment of fees. General Health claimed Adventist mismanagement and questionable accounting practices drove Gulf South Health Plan—General Health’s now defunct insurance subsidiary—into the ground, leaving the organization with millions of dollars in losses. —Steve Clark

Behind the numbers

The Baton Rouge region’s booming growth may be slowing.

The latest U.S. Census estimates indicate that in 2007, the nine-parish Capital Region lost 2% of its population—that’s 15,284 people—from the year before, when it experienced a temporary surge from those displaced by hurricanes Katrina and Rita. During the same period, East Baton Rouge Parish lost nearly 1,000 people; Ascension and Livingston gained 4% and 3%, respectively.

Shreveport demographer and political analyst Elliott Stonecipher says it’s safe to assume those numbers indicate that people temporarily displaced by the storm have returned to their homes, particularly given that Orleans and St. Bernard parishes together gained an estimated 34,877 people during that time. “Quite frankly, it’s well within the margin of error for a whole nine-parish region to move that much, given the surge to that region after the storm and the expected abating of that migration because of Road Home and other things. It makes perfect sense to me,” he says. “A lot of people were there during previous Census reporting cycle post-storm. A year later, a bunch of them have gone back.”

Stonecipher predicts the region—Baton Rouge in particular—already is returning to its pre-storm problem of outmigration. “The storm dislocations, relocations, returns and so on masked a lot of trends that were well in place for many, many years before the storms, and now as the water recedes we see that those trends are intact and we’re not going to get an escape from that,” he says. “If anything, they have worsened, particularly in the context of birth and death ratios.”

But Mike Odom, a spokesman for the Baton Rouge Area Chamber, says the organization’s research indicates instead that the nine-parish region actually grew by 15,000 to 17,000 people between 2006 and 2007. He says BRAC remains in contact with the Census Bureau offering its own statistics, which take into account traffic counts, new capacity for housing and occupancy rates, among other things.

The latest Census numbers do not represent an actual population count, but rather estimates based on births, deaths, government records and surveys. Nor are the numbers current; they reflect migration only through July 1. —Penny Brown

Fast money

How long does it take a new governor and Legislature to spend a whopping $1.1 billion surplus? If the recent special session is any indication, only five days are needed. Even seasoned lawmakers were surprised by the land-speed record. “We made some amazing accomplishments in such a short period of time,” said Senate President Joel Chaisson, a Destrehan Democrat.

While it was originally floated as a session for business interests—removing state sales taxes from machinery, equipment, debt and utilities—Jindal’s assembly was also expanded greatly to benefit parents, coastal communities, road projects, ports, universities and others. There were even pet projects, like $50 million for the locally operated Pennington Biomedical Research Center and $57 million for Shreveport’s Cyber Innovation Center.

Yet despite the spending storm, business interests are already looking ahead. For instance, Dan Juneau, president of the Louisiana Association of Business and Industry, notes that his membership still favors pushing the tax break on machinery and equipment even further. Other states exempt additional items in the manufacturing process from state sales taxes and even force local governments to drop their levies, he says. Maybe the governor and Legislature will use their newfound momentum to “address another area where Louisiana is at or near the bottom—tax policy,” Juneau says. —Jeremy Alford

Here comes Junior

If you’re into boudin pizza, then get ready for some lip-smacking news.

A second Pastime Restaurant & Lounge is tentatively scheduled to open in the Drusilla Shopping Center in May. The new location, to be called Pastime Jr., will also have the LSU theme and popular menu—including the novel boudin pizza that’s hooked the taste buds of celebrities like Brad Pitt, says co-owner Jamey Travis. Unlike the original location, Pastime Jr. will offer food delivery.

“Everyone knows the name, and we can grow it into something special,” says Travis, who along with co-owner Randy Travis decided it was time to expand.

A third Baton Rouge location is being discussed, possibly on Coursey Boulevard, in one to two years. Two more locations in Hammond and Lafayette could follow in the next five years.

The Wesley family owns the original location, a traditional hangout on South Boulevard underneath the Interstate 10 Mississippi River bridge that has been open since 1941. —Anna Thibodeaux

BUSINESSofPOLITICS

Board of Contractors drama: According to a recent Inspector General report, there has been a flagrant abuse of power taking place on the Louisiana State Licensing Board for Contractors. “After reviewing available documentation and conducting interviews,” state investigators concluded that board member Donald G. Lambert Sr., a Kenner contractor, delayed the group’s handling of an examination waiver because the applicant owed his son money. The report states that Lambert “personally requested that a staff member remove [Bruce Dalrymple’s] application” and later left a voice mail for Executive Director Charles Marceaux that the debt had been paid and he “would not object to the board granting Mr. Dalrymple’s request.” Because Lambert’s actions “may have circumvented state law and circumvented board procedure,” the Inspector General’s Office recommended that the case be forwarded to the state Board of Ethics for further investigation. In a lengthy written response, Lambert denies the allegations and says “at no time did I ever take any action which could be deemed unethical and/or improper.”

With a bit of insider knowledge …: Commissioner of Administration Angele Davis is making department heads justify every penny. Many were even asked to make a list of budget items they could live without. “In terms of policy, this executive budget marks a stark departure from the status quo,” Davis says. One of the loudest yelps might have come from Lt. Gov. Mitch Landrieu, who is facing a proposed $10.6 million cut in his Office of Culture, Recreation and Tourism. Landrieu contends the massive decrease in state dollars will impact parks, libraries and other public services. “The new budget puts us in a precarious situation,” he said. The polite tit-for-tat is amusing—and revealing—because of the major players’ previous relationship. Before joining Jindal, a Republican, Davis was the head of culture, recreation and tourism, the No. 2 post under Landrieu, a Democrat.

French-fried Louisiana politics: When former Gov. Kathleen Blanco hasn’t been defending her administration’s last-minute decision to boost Road Home manager ICF’s pay by $156 million [with no public notice], she’s been attending public-speaking engagements and doing a bit of globetrotting. Earlier this month, she gave the keynote address at a European Conference crisis-response convention in Aix-en-Provence, France. Blanco was invited to address the topic of what Europe could learn from Hurricane Katrina. “We believe that her insight is valuable to other government leaders, in Europe and around the world, who may one day have to face a worst-case scenario in their own jurisdiction,” Richard Biagioni, CEO of CIREEX Training Center, said in a news release. In some respects, Blanco says she is playing an ambassador’s role. “As we saw during Katrina, we must all work to create more compatible systems and better coordinated response plans,” the former governor says. “I look forward to strengthening Louisiana’s relationship with France and to celebrating our shared heritage.” —J.A.

The toast of Louisiana

Take two heavy-bottomed 3 1/2-ounce bar glasses. Fill one with cracked ice and allow it to chill while placing a lump of sugar with just enough water to moisten it. Crush the saturated lump of sugar with a bar spoon. Add a few drops of Peychaud’s Bitters, a jigger of rye whisky and several lumps of ice and stir briskly. Empty the first glass of ice, dash in several drops of Herbsaint, twirl the glass rapidly and shake out the absinthe. Strain into this glass the rye whisky mixture prepared in the other glass. Twist a lemon peel over the glass, but do not put it in the drink. And what do you have?

If you’re Democratic Sen. Edwin Murray of New Orleans, you have what he hopes will become the official state cocktail, the Sazerac. In advance of the regular legislative session, which starts Monday, Murray has filed Senate Bill 6, which seeks official state status for what he claims is the first cocktail invented in New Orleans and one of the first cocktails invented in the U.S.

“We will probably have a little fun with this bill,” he says. “There will be a very aggressive effort to get it done.”

The Sazerac dates to the 1830s, when Antoine Peychaud, a Creole immigrant, operated a pharmacy on Royal Street. With his background as an apothecary, he was a natural mixologist. When his friends gathered for late-night revelry at his pharmacy, Peychaud would mix brandy, absinthe and a dash of his secret bitters.

Murray’s bill asks that the state use the official cocktail on “official documents … and with the insignia of the state.”

Taking names

Nominations are now open for Business Report’s annual salute to Women in Business. The awards go to women business owners or managers who are making a noticeable influence in the Capital Region. Winners will be spotlighted in a special issue of Business Report. All nominations must be made online here. The deadline for nominations is 5 p.m. on Friday, April 25.

ONTHEBEAT

Mr. O’Keefe goes to Washington: Former LSU Chancellor Sean O’Keefe will take over GE Aviation’s Washington, D.C., operations, effective June 2. O’Keefe replaces Thomas Cooper, who has held the job for 21 years.

Gill dies at 64: Richard Gill, the president of Shaw Group’s power group, died on March 20 after a short illness. He was 64. Before joining Shaw Group, Gill founded Merit Industries, which included Merit Environmental Services and Merit Industrial Constructors.

Boxed out: Cox Communications has been forced to limit the number of high-definition cable boxes it leases to each household because of a temporary shortage in supply. Motorola, which manufactures the HD boxes and the combo digital video recorder/HD boxes, has not been able to keep up with the surge in households with high-definition sets.

Health care Rx: The Louisiana Business Group on Health announced it is putting together a legislative program for 2009 that includes big changes in how employees can access coverage through their employers—even if the employer doesn’t offer a group health plan.

Pastorek’s pay: State education superintendent Paul Pastorek is the highest-paid public school leader in the Gulf Coast. Pastorek’s compensation is nearly $350,000 annually and includes a housing and a car allowance. That’s nearly twice what the Texas education superintendent earns.

Flournoy’s farewell: Melissa Flournoy is leaving the Louisiana Association of Nonprofit Organizations, the network she founded 11 years ago, to become head of the RAND Gulf States Policy Institute, a group committed to the long term rebuilding and development of the Gulf Coast. Flournoy will leave LANO at the end of April.

Stepping down: Eddie Ashworth is leaving his job as CEO of the Louisiana Technology Park to become undersecretary of the state Department of Social Services. Ashworth, who has led the Research Park Corporation since 2000, will join DSS on April 7.

Small business champ: Baton Rouge businessman Bob Breaux has been named 2008 Small Business Champion in Louisiana by the National Federation of Independent Business. Breaux started Total Computers Systems Inc. in 1983.

BRAssets: The Baton Rouge Area Foundation says its assets grew by 5.2% in 2007 to an estimated $568 million. The assets grew because of donations and an increase in the investment portfolio, foundation officials said. BRAF made more than 2,800 grants last year, with a total value of $18.8 million.

Brown out

Plans to build The Brownstones, a 70-unit downtown apartment building at Laurel and Fifth streets, are being reworked because of cost concerns.

Commercial Properties Development Corp., the Baton Rouge Area Foundation’s real estate development division, still expects to build housing on the site, but the details won’t be known for several months, says Mukul Verma, the foundation’s spokesman. “Both the construction and financing part of that project got so expensive, because of what’s going on,” Verma says. “We’re trying to make things more affordable.”

Commercial Properties had planned to open The Brownstones by the end of 2009, but Verma says the new timetable hasn’t been determined. Demolition of the New Richmond Place apartments, located on the site, is continuing. Commercial Properties has been attempting to redevelop the site for a few years now; at one point there were plans for a mixed-use office/retail/parking building on the site. Verma says the latest delay isn’t a setback. “We continue to be on track for this. It will just have a new look,” he says.

Commercial Properties’ two other downtown developments, the One Eleven apartment complex and the Stroube’s Chop House restaurant are both set to open within the next nine months or so. —Timothy Boone

Walk about

Walk-On’s, the popular bar and grill located just south of LSU at Burbank and Nicholson drives, will open a second location on Coursey Boulevard west of Sherwood Forest Boulevard in the two-story building that previously housed O’Henry’s. Walk-On’s will open in mid- to late summer, co-owner Jack Warner says, adding there will be little difference between the Burbank and Coursey restaurants. “The menu will remain the same and the look and feel will be the same,” he says. “It won’t be all LSU because of the location. We’ll tailor it a little more for the high school programs that are out there.”

After O’Henry’s closed in January, the building was supposed to be leased to Brandon Lee, who owns the Lafayette sushi restaurant Raw Addiction. But the owners of the property bought Lee out and leased the building to Walk-On’s. Lee is now looking for a new site, says Chad Ortte, an agent with Donnie Jarreau Real Estate. The Coursey site is a “great location,” says Warner, because of the neighborhoods and businesses around there. “The Chimes East is doing ridiculous business out there,” Warner says. “People are hitting that place up three or four times a week because there’s nothing out there like that.” —T.B.

Downtown deals

Two potential residential/commercial developments just outside of downtown are a “natural progression,” says Davis Rhorer, head of the Downtown Development District.

Moreno Properties, a firm owned by Lafayette oilman Mike Moreno, bought 10 acres on Nicholson Drive across from Magnolia Mound Plantation. Moreno would not disclose the sale price, but court records show 25 separate deals to buy land in the area, with a total value of nearly $13.2 million.

Landscape architect Steve Oubre is working with Moreno Properties to develop a smart-growth, mixed-use project that could combine residential, commercial and government space. Oubre stopped short of calling the development a TND, but said it would be a “smart-growth, new urbanist community”.

Developer Donnie Jarreau announced he has bought 11.26 acres on Spanish Town Road, east and south of Interstate 110 near Spanish Town Park, for $2.2 million. Jarreau is still deciding what he’ll do with the property and is said to be speaking with office and high-density residential developers.

“It’s great news to see this activity and investment spilling out of downtown,” Rhorer says.

Plans for both properties are being developed. “This is a great property, and we’re excited about downtown and its prospects,” says Sage Roberts, a spokeswoman for Jarreau. —T.B.

Home expensive home

Louisiana housing appreciated 4.1% according to a fourth-quarter report by the Office of Federal Housing Enterprise Oversight. The Baton Rouge metropolitan area had 5.71% appreciation. The Houma-Thibodaux area had 12.1% appreciation, Lafayette 7.55%, Shreveport-Bossier City 2.31%, Monroe 1.95% and New Orleans 1.01%.

Louisiana also ranks among the nation’s stronger property-value states at 4.1%. California had a 6.6% depreciation, and Nevada had a 5.9% drop. —A.T.

Giving birth

Woman’s Hospital unveiled renderings of its new campus to be built on the site of Briarwood Golf Course at Airline Highway and Pecue Lane. The new facility will consist of three buildings: a 300-bed hospital, a 260,000-square-foot medical office building and 69,105 square feet of support services facilities. The budget for the project is approximately $299 million, and a grand opening is set for 2011. —S.C.