StartUp

Monday, January 11, 2010

THE BIG STORY

Remembering [and rebuilding] an icon

Darrin Dominguez says he came to The Caterie as a doorman while in college in 1991 and became owner about a decade ago. He says familiar acts such as Quiet Riot and Vanilla Ice graced the well-worn venue, as well as locals Dash Rip Rock, The Molly Ringwalds and Allison Collins Band.

Yet a New Year’s Day blaze that started above the club at the Acadian-Perkins Plaza shopping center rendered the iconic restaurant and live-music venue as obsolete as the 8-track players in car stereos during the club’s early ’70s debut.

“The only thing still standing in The Caterie is the front façade,” Dominguez says. “When you look in the front door, you see the back train tracks and the sky. It’s such a landmark for the city. It’s kind of heartbreaking. A lot of local bands started there. We want to rebuild.”

Dominguez was about to settle in New Year’s Day to watch Penn State and LSU in the Capital One Bowl when an employee at neighboring Southdowns Discount Liquor and Cigarettes dialed 911 to report smoke. “Same time my phone started lighting up from my security company,” Dominguez says, notifying him that his club’s fire alarms were going off.

The blaze claimed several businesses and caused plenty of smoke and water damage. Officials say the cost may reach $10 million.

Collins says she got her start playing The Caterie on Thursday nights from the mid-’90s through about 2001, when she took a hiatus from club shows. “It had a cool vibe,” she says. “The people who worked there were really nice. The food was good. It was kinda like my home. It was pretty slamming back in the day.”

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Although she fondly remembers the club’s half-pound Cheeseburger in Paradise, she says her usual order was the grilled-cheese sandwich with fries. “I didn’t eat there too much, because I would have been as big as a house if I did,” she says with a laugh.

After her stint as a Jimmy Swaggart Ministries singer ended last year, Collins and her group played a reunion show at The Caterie in March. She says numerous bands’ equipment that was stored in an upstairs practice area was a crucial loss to local music-makers. “They’re pretty bummed out,” she says. “They had some good gear that is gone, and they have no place to practice now.”

Dan Claitor, general counsel for the Claitor family, which owns most of the shopping center, says Claitor’s Law Books and Publishing Division set up a temporary sales location in the former Major Video store, not far down from the original bookstore, whose inventory of 1 million volumes was destroyed. Southdowns residents reported burned shreds of law books in their yards. “It looks like Hiroshima,” Claitor says.

The family has about a half-year to repair the damage to the tenant businesses before they are freed of their leases, he says. “Plan No. 1 is to remove the debris and finish the demolition. We’re evaluating all of our options,” he says.

Robert Claitor, the family patriarch, says the shopping center could get a serious makeover during rebuilding. “The Caterie wants to remodel in a more modern fashion,” he says. “We’re in quite a state of flux.”—Todd R. Brown

IN SHORT

Ocean’s Twelve

Yes, the recession stinks. But the recession isn’t the biggest problem.

The biggest problem, Louisiana Economic Development Secretary Stephen Moret believes, is the state’s reliance on industries with shrinking employment—like agriculture, paper and petrochemicals—while other Southern states are creating jobs much faster than this one. If Louisiana keeps muddling along, it’ll end up even further behind than it is.

“Just being the best in the South doesn’t get us where we want to go,” Moret says. “We need to be exceptional.”

Enter “Blue Ocean.” Named after the 2005 bestseller Blue Ocean Strategy, the initiative seeks ways to position Louisiana as a force in emerging high-growth industries, including:

• Next-generation digital media and software development

• Automobile manufacturing

• Green building and manufacturing

• Renewable energy

• Parts and modular production for nuclear power plants

• Specialty hospitals

• Obesity and diabetes research and treatment

• Pharmaceutical manufacturing

• Coastal restoration and protection

• Unconventional natural-gas production

• Ultra-deepwater oil-and-gas exploration

• Enhanced oil recovery

Moret says Louisiana has a plausible chance to compete in each of these sectors based on its current strengths and resources. Importantly, none are dominated by another state, meaning the field is still wide open. Blue Ocean is more forward-looking than some of the state’s previous efforts, which chased after other states’ crumbs. At one time, some government officials thought Louisiana could become “Silicon Bayou,” as if the state could somehow replicate California’s Silicon Valley.

Gov. Bobby Jindal’s economic-development team is all about Blue Ocean; it’s their baby. But one governor’s priorities aren’t always shared by the next. Barry Erwin, director of the Council for a Better Louisiana and a Louisiana Innovation Council member, says his group might be able to bridge administrations and keep everyone’s “eyes on the prize.”—David Jacobs

Getting’ saucy

Pizza, pizza?

Little Caesar’s is among seven pizza joints that have recently opened their doors or announced plans for Baton Rouge locations. Others include Shreveport-based Pieworks Pizza By Design, New Orleans-based health-conscious Naked Pizza and Hungry Howie’s.—Emma James







Jazzed up

Discriminating cooks have been using imported Thai Jasmine rice for years, enjoying its soft, sticky texture and distinctive nutty smell. The LSU AgCenter, which has been working since 1996 to perfect a Louisiana-friendly variety, succeeded, and at least two companies are already bringing the new product to market. Jazzmen Louisiana Aromatic Rice and Cajun Country Jasmine Rice should be available at your favorite grocery store soon.—D.J.

















NOTABLE QUOTABLE: "The opportunities fornetworking and cross-fertilization of technologiesare the advantages for businesses operating in anincubator environment."—Charles D’Agostino, executive director of LSU’s Louisiana Business & Technology Center, on collaboration and innovation efforts between startups

NOTABLE QUOTABLE: "The opportunities fornetworking and cross-fertilization of technologiesare the advantages for businesses operating in anincubator environment."—Charles D’Agostino, executive director of LSU’s Louisiana Business & Technology Center, on collaboration and innovation efforts between startups

BUSINESS OF POLITICS

Landrieu shilling for Boxer

In an e-mail during the recent holiday break, U.S. Sen. Mary Landrieu, a New Orleans Democrat, asked supporters to donate money to Sen. Barbara Boxer, a fellow Democrat from California facing reelection this year. Landrieu wrote that “Barbara Boxer is a friend to me” and that a donation to her campaign would be considered “as a personal favor to me.”

Boxer made history as the first woman chair of the Environment and Public Works Committee, but she also played a key role in the aftermath of hurricanes Katrina and Rita by leading tours of the stricken area and fast-tracking legislation.

For conservative supporters of Landrieu, the appeal might be a bit jarring. Boxer is staunchly pro-choice; she authored the Freedom of Choice Act of 2004 and was strongly critical of the Stupak-Pitts Amendment, which placed limits on taxpayer-funded abortions in the recent Senate health-care bill.

Mayoral race on iPhone

To be certain, there aren’t any bills pending debate in this year’s regular session that seek to tackle the dangers of politicking while using a smartphone. That’s good news for the New Orleans-based PolicyPitch, which has launched a free iPhone application called “ElectionHub.” In a nutshell, the app allows anyone to follow the ongoing drama that is this year’s Crescent City election cycle, including the race for mayor and the city-council seats.

Zach Kupperman, president of PolicyPitch, says the app will include up-to-the-minute stats, facts, news and information on each candidate. There will also be a comments section for users to exchange ideas and once-a-week polls.

Session ’09 redux

Some special interests already are beginning to shake the bushes on issues that failed to gain passage during last year’s regular session. In particular, a Louisiana company is circulating data on the dangers of driving while fumbling around with a smartphone, and a national nonprofit is playing defense on the topic of concealed weapons on college campuses.

The Baton Rouge-based cellcontrol, a “leading supplier of driving while distracted solutions,” has released a self-financed study that shows a majority of drivers still their use cell phones while on the road. The study was conducted in mid-December and, from a pool of 100 respondents, 88% of drivers admitted to using their cell phone to text, e-mail, surf the Web or have a conversation in the past 12 months.

Lawmakers last year also killed a bill that would have allowed concealed weapons to be carried on college campuses. The Campaign to Keep Guns Off Campus issued a news release earlier this month stating that roughly a dozen other states have shot down such proposals since it was formed about a year ago. Executive Director Andy Pelosi admits, though, the issue is far from dead and likely will be brought back up.—Jeremy Alford

BY THE NUMBERS

73% Louisiana residents who say religion is very important in their lives, ranking the state as the fourth-most religious state, according a survey conducted by the Pew Research Center’s Forum on Religion & Public Life.













Photo by Brian Baiamonte

EXECUTIVE SPOTLIGHT

Leigh Harris

Executive director

Keep Louisiana Beautiful

Hometown: Greenwood, Miss.

Leigh Harris appreciates beauty. During most weekends, she can be found knee-deep in dirt, keeping her garden orderly and flourishing. It should come as no surprise that Harris’ penchant for the outdoors and the beautiful scenery that comes with it feeds into her passion for keeping litter at bay throughout the state as executive director of Keep Louisiana Beautiful. While there is much to be done to illustrate the detrimental impact of litter, Harris hopes “that as a community we achieve the pride and respect for our environment such that ultimately Baton Rouge becomes as clean as it is beautiful.”

Want to read more of Harris’ Q&A? Click here.

SAVING GREEN

Gray skies, green savings

The chill of winter officially has arrived, but gray weather doesn’t have to mean bleeding green in order to stay comfortable in your home. To encourage energy savings, the federal government provided a 15% stimulus-bill tax credit last year that rises to 30% for 2010.

That means a customer who purchases $5,000 of Energy Star-qualified windows could receive a tax credit this year of $1,500. Such windows can reduce energy bills by almost one-fourth.

The key is keeping hot air in and spending less to create that warmth. Carl Rogers, owner of Southeast Heating and Air Conditioning in Baton Rouge, says another federal-tax credit will give furnace buyers 12% of their purchase price back.

Moreover, an energy-efficient furnace saves a chunk on utility expenses. Rogers says a 95%-efficient furnace that burns just 5% of its fuel on nonheating operation is not cost-effective. But an 80% efficient furnace that has a variable-speed blower will net the tax credit and use less electricity.

A two-stage heater adds another level of savings. Most people are familiar with a single-stage furnace that heats up to a certain temperature and blows at a certain speed; the advanced version uses less gas and a lower fan speed to blow “a softer, more gentle heating air flow,” Rogers says. “The only time I’ve heard it ramp up to full blast was early in the morning when it was really cold out, like when it gets down to 20 degrees.”

Brrr. Sounds like as good a reason to winterize as any.—T.R.B.

Photo by Brian Baiamonte

NONPROFIT SPOTLIGHT

Cinderella Project of Baton Rouge

Ruling year: 2008

Mission: To collect donated prom dresses and wedding dresses to give to women who are otherwise unable to afford them.

Programs: “We host dress drop-off events to collect donations of new and nearly new donations. We then stage a dress-giveaway event where high-school students can select a free dress. In 2008, we collected nearly 1,000 dresses and distributed 400 dresses to students at 14 Baton Rouge-area public high schools.” The winter drop-off event is Jan. 16-24 at any Capital Area YMCA.

Photo by Brian Baiamonte

Founders: Shelton Jones, Sarah Dupree

Number of compensated employees: 0

Number of volunteers: 101-500

Directors: Ted Jones, Jason Dupree

Total revenue: $121,994

Total assets: $73,213

Total expenses: $48,781

Dresses: $43,092

Supplies: $1,266

Advertising: $2,831

IT: $690

Licenses: $300

Storage: $602

SOURCE: 2008 Form 990 and cinderellaprojectbr.org

FAST QUOTE

Do you share your company’s financial information with employees? Why or why not?

Patricia Welther
President/CEO, HELP Solutions
“We do. We have a profit-share plan, so it’s important we share financial information with our employees so they understand where we are as an organization and where they can contribute to profits and reduce costs.”

Al Schof
Sales manager, Hyatt Place
“Partially. Some salaries are bonus-driven depending on the revenue growth of the property. When an employee does not receive a bonus, it’s important to explain and show them where revenue fell short, then review and create action plans to build revenue. The opposite is also true; when the hotel hits budget, everyone wins.”

Kristin Wall
President/CEO, Louisiana Workers’ Compensation Corp
“We do share LWCC’s financial information from the past year with our employees. We do so in various venues, ranging from a company-wide meeting to departmental updates to our intranet Web site. We believe in letting our workforce know where the company stands fiscally and in terms of annual goals accomplished.”

ON THE BEAT

State business

Al Ater, the former Secretary of State, has returned to the Louisiana Department of Insurance as chief deputy commissioner. Ater held the same position from July 2004 to July 2005, when he became secretary of state after the death of Fox McKeithen. He served as interim secretary until November 2006. Ater replaces Denise Brignac, who will become the department’s chief of staff.

Changing gears

The Perkins Crossing shopping center, which includes several south Baton Rouge restaurants, has sold for $5.18 million. Rathborne Properties, a Harvey-based investment group, purchased the 33,000-square-foot shopping center at Perkins Road and Essen Lane from Perkins Crossing as a long-term investment. Perkins Crossing tenants include Sushi Yama, The Original Italian Pie and Roman’s Café.

Behind closed doors

Romano’s Macaroni Grill, one of the first tenants in the CitiPlace retail-office development, closed its doors at 3 p.m. on Friday, Jan. 8. The chain has been battered by the recession and by bad publicity over its calorie-laden menu. Also, the f.y.e. music and video store in Cortana Mall will shut down by Jan. 31, one of 125 stores to go dark nationwide as a result of slow sales and weak economic conditions.

Priceless

LSU ranks No. 7 in Forbes magazine’s list of the most valuable college football teams, pegging the value of the Tigers at $86 million. After expenses for running the football program, LSU had a $39 million profit left for academics or for nonrevenue generating sports. This was a step down from last year, when the Tigers ranked sixth. Texas topped the list for the first time; the Longhorns had a value estimated at $111 million and turned a $59 million profit.

Population rising

Louisiana’s population rose 0.91% to nearly 4.49 million people in 2009, just a few thousand shy of what it was in 2005. By comparison, the nation’s population grew by 0.86% over the same period. The state has gained an estimated 40,563 new residents since 2008, restoring population levels that existed before Hurricane Katrina drove out an estimated 257,364 people. Louisiana’s population now is slightly higher than it was in 2000, when the actual Census count put the number of residents at 4.46 million.

Holding steady

The Louisiana Workforce Commission says the Capital Region lost 8,000 jobs from November 2008 through last month, many of them in the service sector. For the month of November, however, the commission reports a gain of 1,800 nonfarm jobs in the Baton Rouge area and 1,500 in the Crescent City region when compared with October. The group says the state unemployment rate decreased from 7.1% in October to 6.3% in November.

Helping hands

Jon Fels, a former hotel owner in Baton Rouge and New Orleans, has come out of retirement to reactivate his distressed hotel advisory practice. Fels, who spent more than 40 years in the hotel industry before semi-retiring several years ago, says the current downturn is the worst he’s seen in the industry, adding the Baton Rouge market overbuilt as a result of GO Zone-financed activity after Hurricane Katrina.

Barfield’s answer

When Tim Barfield abruptly announced just before Christmas he was stepping down as Gov. Bobby Jindal’s executive counsel to return to the private sector, the speculation started. To which company would the former Shaw Group president and COO go? The answer turned out to be Amedisys, which had approached Barfield about becoming its chief development officer. Barfield accepted the newly created position, saying it gave him a chance to stay in Baton Rouge and work for an impressive company.

“Amedisys has a unique business and platform in Baton Rouge,” he says. As CDO, Barfield will be in charge of growth strategies, including mergers and acquisitions. That’s a key job with Amedisys, which has grown rapidly thanks to an aggressive acquisition strategy. Just before Barfield’s hiring, Amedisys announced it had entered the metro New York market after purchasing the home-health operations of Hackensack University Medical Center in New Jersey.

Stock analysts say the company is poised to rebound in 2010, after Amedisys took a pounding over fears that national health-care reform would cut into Medicare reimbursements. “There’s a value for chronic care management, home health and hospice services,” Barfield says.

At first glance, Barfield’s background at Shaw and his work as an attorney make health care look like a new field for him. But he says the new job will be similar to the work he did for Jindal as head of the Louisiana Workforce Commission. “So much of what I did for the governor focused around economic development,” Barfield says, “so it fits in with my experience.”—Timothy Boone

State of the art

The Brunner Gallery is moving out of the Shaw Center for the Arts as part of what owner Susan Brunner says is a “part of a natural transition.” Plans are in the works to make some changes to the space, which is located near the Manship Theatre. John Spain, executive vice president of the Baton Rouge Area Foundation, says the organization is looking at a number of ideas for the property now that the gallery’s lease has expired. Brunner says the gallery is shifting its sales and inventory to the nearby Hilton Baton Rouge Capitol Center, where it has operated for nearly two years. The gallery will continue to host art shows in the Hilton and Shaw Center. Brunner will continue to curate the annual Art Melt, but a location for the popular event has not been confirmed. She is exploring further expanding her gallery’s presence in the downtown arts district. “We’re sort of looking for other buildings downtown,” she says. “It might be good to have the Brunner Gallery out on the street.”—T.B.


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