THE BIG STORY
Out of the loop?
With only the ink from his pen, Gov. Bobby Jindal created a major road bump for the Capital Region’s much-ballyhooed loop project. Inside the state’s capital construction plan, found in House Bill 2, there was a $5 million line item for further engineering and design work for the highway plan meant to circle the city and provide relief for interstates 10 and 12. But Jindal, citing a lack of support by neighboring parishes, vetoed the appropriations.
The week-by-week struggle pitted lawmakers from East Baton Rouge Parish against those from Livingston, Iberville and Ascension, as the money was added to the legislation, then removed, and then reinserted again. But, as with most bills, the governor had the final say. “The state has scarce capital outlay and general fund dollars available to meet the capital outlay needs of our state,” Jindal wrote in his official veto letter. “It is therefore important that major projects such as this have the widest support possible and the consensus of the legislative delegation in the area.”
Jindal added “that consensus has not thus far been achieved,” and suggested local officials need to get their act together before advancing such an ambitious project. The loop project started as a cohesive effort, but now it’s a divided brawl. “Without the consensus of the public and the legislative delegation, the success of the project is in question,” Jindal wrote. “It would therefore be premature to fund the planning of such a large and controversial project until a consensus can be achieved. Therefore, I am vetoing this item.”
Republican Rep. Steve Carter, chairman of the Baton Rouge delegation, said HB 2 wasn’t a complete loss this year. “Fortunately, there were dollars available for infrastructure projects, and we appreciate the administration working with us to fund our key priorities,” he said. That includes $48 million for widening I-12 from Range to Walker, $11 million for the I-10/Pecue Lane interchange and $12 million for the La. 1/I-10 connector at La. 415. Most of the cash, however, will not be made available during the current fiscal year, which launched July 1 and ends on June 30, 2011.
But as much as opponents would like to pronounce the loop dead, Walter Monsour, Mayor Kip Holden’s former top administrator and a loop spokesman, says the work goes on. The loop authority still has money to continue an environmental impact study, he says, adding that the $5 million would have been used to complete the study, engage potential private partners and create an agreement to submit to the Louisiana Transportation Authority.
Monsour says the project should be a state priority, and says the northern bypass, the most feasible portion of the project, could be built for $750 to $800 million and would essentially pay for itself through tolls.
“This will delay us a bit, but we intend to go back to the Legislature next year,” he says. “We believe this is a minor setback, but by no means is the loop dead, nor are our efforts.”—Jeremy Alford and David Jacobs
IN SHORT
Rainbow coalition
What difference does a word make?
For Mayor Pro Tem Mike Walker, one word means the difference between voting against a proposal and sponsoring it.
Walker and Metro Council member Alison Cascio are reintroducing the One Baton Rouge resolution to the council at its July meeting. The measure would welcome people of “all colors, religions, sexual orientations, nationalities and people from all walks of life” to the city.
One important change has been made to the resolution, which failed three years ago: the substitution of the word “recognition” for the word “acceptance.” The previous resolution died by one vote in October 2007 after an outcry from the public over the “acceptance” of gay relationships and lifestyles into the community. The new measure seeks “recognition” of same-sex relationships and lifestyles.
Walker, who previously voted against the original resolution, believes the change will make a difference when the council votes on it in August.
“Everyone exists, and, therefore, they have a right to be recognized,” he says. “People may not accept certain lifestyles, but they have to recognize that they exist. We need to all exist together.”
Joe Traigle, president of Sterling Studios and a member of One Baton Rouge, says the reintroduction was a “positive step.” He does not believe the changed wording harms the basic intent of the measure.
Traigle has pushed for a reintroduction of One Baton Rouge on the grounds that the Baton Rouge Area Chamber has taken canvass trips to places such as Austin, Texas, and Portland, Ore., which have passed anti-discrimination laws.
“It’s saying to ourselves and the outside world that we are a place that is open and welcomes people of all walks of life, respecting them and treating them with dignity,” he says.
Walker and Traigle believe the switch from “acceptance” to “recognition” will negate some of the backlash that occurred three years ago. Walker expects opposition from some conservative religious groups, but says people in the community and some religious organizations support the resolution.
Traigle is optimistic about One Baton Rouge’s passage and doesn’t expect much pushback from the Metro Council or the community.
“We lost by one vote last time,” he says. “I am confident and positive the council will pass it and that it will make Baton Rouge a better place in the future.”—Emma James
Making progress
Economic recovery? Check. Progress? Check. Sustainable growth? We’re not there yet.
That’s the message Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, gave last month to the Rotary Club of Baton Rouge.
There have been some economic high points in the past six months—a boost in consumer activity, increased business spending and rising manufacturing production—but Lockhart also cautions each of those factors could be “transitory” and that the economy has not reached a point where “healthy and sustainable final demand is underpinning growth.” Until that changes, he says, don’t look for more capital spending or hiring.
Economic uncertainty and risk are other factors impinging on the recovery. Lockhart says there are four primary causes of more economic uncertainty: European debt, ongoing state and local government budget tightening, bank exposure in commercial real estate and the Deepwater Horizon oil spill. Lockhart did not rank the oil spill as the least important of those factors; he noted that the first three are already national in effect, while the oil spill has impacted the economy mainly on a regional level.
“In my view, these circumstances suggest caution in moving away from policies designed to give the economy the best possible prospect of recovery with full employment,” he says. “Adjustment to monetary policy will be needed eventually, but now is not the time.”—E.J.
Sounds of B.R.
Red Stick Sounds, a benefit album to support the Arts Council of Greater Baton Rouge, is now available. The album is a compilation of new and unreleased tracks from musicians with ties to Baton Rouge, covering a range of styles from blues to pop and folk to rock. Artists featured on the album include Henry Gray, Chris Thomas King, Wess Anderson and Generationals.
More than pleasing sounds, Red Stick Sounds is a love letter to our city, complete with personal stories from the artists themselves. From Gray reminiscing about learning to play his first blues licks to Harlan’s John Norris testifying to the impact of Baton Rouge’s tight-knit artistic community, each artist has written a short essay specifically for this collection.
Red Stick Sounds was produced by 225 magazine Entertainment Editor Jeff Roedel, and the cover was designed by one of the magazine’s designers, Nathan Calhoun. Red Stick Sounds is available as a digital download, including 13 tracks and a 16-page digital booklet with band photos and liner notes, at 225batonrouge.com/redsticksounds. Physical copies of the album also are available at Arts Council events and at the Compact Disc Store on Jefferson Highway.
For more information, including a review of the tracks, visit 225batonrouge.com.
The joy of six
Business Report won six awards, including first place for best body of work by a single reporter, best feature, best overall design and best feature layout, at the Alliance of Area Business Publications’ annual summer conference June 24-26 in Indianapolis.
Writer Stephanie Riegel received first place for best body of work by a single reporter for her Feb. 24 story on the Americana TND, her May 19 story on developer Tommy Spinosa’s legal issues at Perkins Rowe, her Sept. 22 story on Spanish Town’s battle against a proposed apartment complex and her Oct. 20 story on Baton Rouge’s difficulties implementing smart growth. Her Spinosa story also received first place for best feature.
“Her engaging story relies on court documents, former employees and outside experts on real estate and banking to provide context for understanding the project’s troubled history,” said judges from the University of Missouri’s School of Journalism. “And, even though developer Tommy Spinosa declined to be interviewed, Riegel provides a balanced story that also illustrates the development project’s successes.”
Business Report’s first place for best overall design was based on three entries, the dates of which were mandated by AABP. And production designer Carolyn Valentine Blakley received first place for best feature layout for her design of the June 30 “Young Entrepreneurs” cover package.
Writer Penny Font won second place for best personality profile for her March 10 story on State Superintendent Paul Pastorek; and Executive Editor JR Ball, Managing Editor Scott Gremillion and Art Director Hoa Vu received second place for best front page for the Aug. 25 cover of a smoking gun depicting the impact of crime on economic development in the Capital Region.
BUSINESS OF POLITICS
CNG all the rage
Make no mistake: Gov. Bobby Jindal is on the CNG bandwagon. That’s compressed natural gas, and with an economic depression settling over the Gulf Coast in terms of exploration, energy interests are generating a lot of buzz about it. For his part, Jindal approved a $1 million budget earmark this session for Lafayette Parish Consolidated Government to move forward with CNG infrastructure, construction, fueling stations, pipelines and the purchase of CNG vehicles. Baton Rouge already has several CNG filling stations.
Jindal also endorsed Senate Bill 103 by Sen. Nick Gautreaux, an Abbeville Democrat, which creates the Alternative Fuel Vehicle Revolving Loan Fund. In theory, the fund would provide financial assistance to local governments to help them convert their current fleet of vehicles.
Rep. Michael Jackson, a Baton Rouge independent, also passed a resolution during the session directing the departments of Environmental Quality and Transportation Development to study the feasibility of using CNG buses in mass-transit applications in Louisiana. The results are expected by the end of the year.
Cash for colleges
The Capital Region Legislative Delegation zeroed in on major funding requests from LSU and Southern University. When Jindal issued his line-item vetoes earlier this month, both survived. That includes $10 million for new water lines at Southern and $10 million for LSU to acquire additional land in the South Campus area.
On the rails again
Funding for a Baton Rouge-New Orleans passenger rail study originally was on the delegation’s priority list for the regular session. The study, however, was funded by other means, so that goal became unnecessary to pursue. The rail project remained a priority throughout the session, and lawmakers passed a bill creating the Louisiana Intrastate Rail Compact. Jackson was the point man on the compact for Baton Rouge. He says it’s the first step toward bring the rail vision into reality. “This is the enabling legislation needed for the parishes along the proposed GBR-GNO route to come together to establish passenger rail service,” Jackson says.—J.A.
EXECUTIVE SPOTLIGHT
Robert Craig Israel
President
Louisiana Automobile Dealers Association
Hometown: Bogalusa
You wouldn’t expect the president of the Louisiana Automobile Dealers Association to know much about horseback riding. But that’s one of Bob Israel’s favorite activities, and just one way in which he is full of surprises. Take Israel’s stance on public schools in Baton Rouge. His desire to improve them is a common theme in the community, but he draws on experiences that include having a father who served as a superintendent. Israel’s greatest fear for Baton Rouge is that “the sins of the past and the failures of the present will continue to block progress. Let’s just all make one big apology and get on with it.”
To read more of Israel’s Q&A, click here.
ON THE BEAT
Complex deal
Siegen Village, a 312-unit development, sold last month for $12 million to a group doing business as Siegen Village Apartments. Bluebonnet Ridge, a 112-unit complex, was sold for $3.8 million to a group doing business as Bluebonnet Ridge Apartments and had the same address as Siegen Village.
Mr. Popularity
Gov. Bobby Jindal has seen his approval ratings from Louisiana voters climb even higher than before the Deepwater Horizon disaster. Seventy-four percent of Louisiana voters say they approve of the job the first-term Republican is doing, according to a study released by Rasmussen Reports. Jindal had a 64% approval rating in April.
Over the ‘Moon’
Parts of the final two Twilight movies will be shot in Louisiana as their makers take advantage of state tax incentives for film productions. Producer Wyck Godfrey told the online movie website collider.com that production of both parts of Breaking Dawn will take place in Louisiana and Vancouver, British Columbia. For more on the film industry’s effect on the local economy, please see page 16.
Low quality
Baton Rouge ranks No. 56 on a list assessing quality of life in the 67 largest U.S. cities. The report, by Portfolio.com/bizjournals, looked at 20 categories, including economic health, education, cost of living, traffic and housing. The top-ranked large city was Raleigh, N.C., while Bakersfield, Calif., finished last.
Brace for impact
Institutions in the LSU System will need to cut 23% for the next fiscal year, President John Lombardi says. Louisiana higher education is expected to lose an additional $300 million in funding next year when federal stimulus money runs out. LSU System institutions have taken nearly a $150 million cut in the past 18 months. For more on LSU budget cuts, please see page 26.
Go west, young men
Walk-On’s Bistreaux and Bar is scheduled to open a Lafayette location early next year. The location, on Kaliste Saloom Road, will be the third Walk-On’s. Owners Brandon Landry and Jack Warner had been scouting the Lafayette market for about two years before selecting the spot for their first entry outside of Baton Rouge.
Renaissance man
Developer Mike Wampold filed a building permit this week to turn the partially completed Jimmy Swaggart Ministries dormitory into a hotel. Even though the permit has been filed, Wampold says, there’s nothing definite about the project, which would convert the Bluebonnet Boulevard structure into a 260-room Renaissance Hotel. “We should get the financing straightened out in the next couple of weeks,” he says, adding he wanted to initiate the process because the project is moving closer to becoming a reality. The project has been stalled by the recession and the credit crisis. Last year, the Legislature passed a bill to allow for tax-increment financing, which allows projected sales tax revenue from the hotel to back bonds to pay for construction or renovation costs. Plans for the hotel include 15,000 square feet of meeting space, a restaurant, and a spa and fitness center.—Timothy Boone
Boo!
Baton Rouge already has Mardi Gras, St. Patrick’s Day, Fourth of July and Christmas parades. Now organizers are working to put a Halloween parade on the schedule for 2011. Kelley Criscoe has started organizing plans for a downtown parade, which would be held the Saturday before Halloween. Criscoe, who has a background in marketing and event planning, says she was talking with a friend about how much they enjoyed parades. “The next thing, we were saying we should start our own parade and that a Halloween parade would be awesome,” she says. Criscoe has set up the appropriately named 10/31 Consortium, which would plan the parade. Plans are to hold the parade toward Beauregard Town, centered around downtown destinations such as the Pastime Lounge, George’s Place and the 13th Gate, which Criscoe says already has shown interest in sponsoring the parade, along with Gerry Lane Enterprises. “I’ve gotten a very, very positive response to this,” she says.—T.B.
Mortgage fears
The federal financial regulatory overhaul could be just what this country needs to prevent recession catalysts like the housing bubble and the subprime lending meltdown. But lenders warn that increased regulation could make it more difficult for buyers to get a mortgage.
Under the new regulation, lenders will have to verify a borrower’s income, credit history and employment status. Lenders might also be required to put aside 5% of loans for risk retention.
“Small community banks are not going to be able to participate. They won’t be able to afford that,” says Terry LeBlanc, who is president of the Louisiana Mortgage Lenders Association. “They’re issuing millions of dollars of loans a month, and that’s going to translate into $50,000 to $100,000 they’re going to have to start setting aside.”
He says the 3% compensation cap, which covers fees associated with obtaining a mortgage like underwriting and tax services, could be passed on to the consumer as higher interest rates.
“The bottom line is that competition is going to be reduced. It reduces the options that a consumer has,” LeBlanc says. “Worst-case scenario is that four or five banks are loaning money for everyone. I don’t think that’ll really happen, but we’re very concerned about this.”—Rebekah Allen
School makeover
Lanier Charter Elementary School is receiving a facelift and, with that, perhaps a little fame.
The school, which is more than 50 years old, has been chosen for a full renovation by NBC’s alternative series, School Pride. The charter school, located on Lanier Drive east of Airline Highway and north of Prescott Road, is run by Advance Baton Rouge.
All but one of Lanier’s 293 students last year were black, and 93% qualified for free or reduced-price lunches, an indicator of poverty. The school was taken over by the state in 2009 because of chronic low academic performance and converted into a charter school. It has continued to struggle academically.
“The building is old and needs a lot of attention,” says Denise Cramsey, who also serves as the executive producer for True Beauty and Extreme Makeover: Home Edition. “The teachers, students and parents are already doing good work academically and just need the facility to catch up to them.”
Unlike other makeover shows, School Pride calls on the community to provide the labor under the guidance of the show’s staff. The school provides some resources, but it relies heavily on volunteers and donations.
During its pilot episode in Compton, Calif., Cramsey says, 4,500 volunteers showed up. She is hoping for at least 1,000 volunteers, skilled and unskilled, to help with the Lanier renovation. School Pride also has reached out to local construction groups for materials.
“This is an awesome opportunity, not just for us but for Baton Rouge,” Advance Baton Rouge spokesman Matthew Broussard says. “Things like this will affect our school and the community around us.”
After visiting Lanier and meeting with the teachers and students, Cramsey says, she saw clearly that the school needs more and better areas for recreational use.
“This is an elementary school. We need to add areas where kids can play,” she says. “We need outdoor spaces. We’re looking at the gymnasium for improving. We want to lighten and brighten it up a little bit with fun colors for the kids.”
Each teacher and class will be able to paint and personalize their own classroom.
But a camera crew isn’t the only thing NBC is bringing to Baton Rouge. Lanier also will be outfitted with new technology after the renovation is complete.
Construction began July 12 and will continue throughout the week. A ribbon-cutting ceremony is scheduled for July 17.
Six schools across the country, including an elementary school in Tennessee and a high school in Michigan, also will receive makeovers. School Pride will air at 7 p.m. Fridays this fall on WVLA-TV, the local NBC affiliate.—R.A.
