THE BIG STORY
A culture of giving
They said it couldn’t be done.
At least that’s what the consultants said when former LSU Chancellor Sean O’Keefe suggested setting a $750 million goal for Forever LSU, a joint fund-raising effort of the LSU Foundation, LSU Alumni Foundation and Tiger Athletic Foundation.
“Sean O’Keefe believed in stretching goals,” says former Congressman Henson Moore, the campaign’s volunteer chair. “He said, ‘Let’s triple what we raised last time.’ That was his leadership style.” According to a Nov. 12 announcement, Forever LSU raised $753 million, plus $34 million in state matching funds.
Private universities always have raised money from private sources, but state universities were late to that game—LSU later than many. Businessman and philanthropist Milton Womack led the first campaign about 10 years ago, Moore says, raising about $255 million in “low-hanging fruit” from obvious targets like Turner Industries founder Bert Turner.
That campaign was the start of LSU’s first endowment, which now hovers in the neighborhood of $350 million. To be even marginally competitive with other flagship universities, Chancellor Mike Martin hopes to raise that number to at least $1 billion, though the foundations likely will take a breather after Forever LSU officially ends Dec. 31. A large endowment would help insulate the university from state budget cuts.
Louisiana culture has long held that education ought to be free, and LSU until recently never made a particularly strong effort to stay in touch with its alumni. Today, LSU has a list of about 3,100 names of qualified investors who are at least 55 years old and capable of giving $25,000. People like that rarely just say no, but it often takes 18 months to two years of conversations before someone decides how much they’re comfortable giving and how large the gift should be.
Moore wants to create a “culture of giving,” in which everyone with any connection to the university—from state pensioners to recent graduates—feels an obligation to donate what they can.
“Even if they can only give five bucks,” he says, “we have to go after everybody that ever graduated to be able to raise the kind of money we’re talking about.”
Some LSU officials were hesitant to make an announcement, fearing legislators and the public would think LSU has $750 million lying around. In reality, however, donors have dedicated almost all of the money to specific purposes, and not a single donation has been made to offset budget cuts. In many cases, the gift is written into a will, so the university won’t see the money until the donor dies.
But there will be plenty of time to worry about budget cuts and the next fund-raising campaign; Nov. 12 was a day to celebrate.
In the campaign’s final weeks, the focus will be on increasing funds for need- and merit-based student scholarships, including Pelican Promise, an award that makes attending LSU possible for nearly 1,500 needy students.
“From the beginning of my tenure at LSU, I had complete confidence in our university community’s ability to surpass our own expectations,” O’Keefe says. “The Forever LSU campaign is the most significant fund-raising effort in LSU’s history.”—David Jacobs
FOREVER AND EVER
The Forever LSU campaign has been wholly or partially responsible for:
• 426 professorships, 38 chairs and 794 endowed scholarships
• The Shaw Center for the Arts, Equine ICU at the School of Veterinary Medicine, Rural Life Museum Visitors Center and University Lab School gymnasium
• Ongoing projects like the business education complex, band hall and chemical engineering building
• Athletics facilities like the football operations center, baseball and softball stadiums, basketball practice facility and renovation of the west side of Tiger Stadium
SOURCE: LSU
IN SHORT
Taking off
Pleased with the progress it’s made in attracting U.S. companies over the past five years, the Baton Rouge Area Chamber now is preparing to go global, BRAC President/CEO Adam Knapp says.
“Our competitors aggressively pursue foreign direct investment,” he says. “It is time for the Baton Rouge area to do so as well.”
The global ambition was unveiled as part of BRAC’s new $18 million, five-year economic development campaign at a kickoff event dubbed “Ready for Take-off,” held at Metro Airport on Nov. 10.
Attracting multinational corporations will require, among other things, a global brand that identifies, unifies and tells the story of the nine-parish region BRAC represents, Knapp says.
The brand it’s come up with is the “Creative Capital of the South,” and it will be the cornerstone of the “Creative Capital Agenda” through 2015. The brand will be launched early next year.
“The idea is to do something that few, if any, regions have done, which is align all of the aspects of marketing under one brand,” Knapp says.
BRAC is wrapping up its first five-year, corporate-sponsored economic development initiative, “The Campaign for a Greater Baton Rouge”; 120 sponsors contributed $15 million.
Between January 2006 and April 2010, BRAC reports assisting 51 businesses with relocations and expansions, which created 6,177 new jobs, $1.95 billion in capital investment and a $2.1 billion total economic impact.
Knapp says $15.4 million of the $18 million for the new campaign has already been secured in commitments from sponsors of the first campaign.—Steve Sanoski
Take me higher
When Metro Council member C. Denise Marcelle entered the House District 61 race earlier this month, she joined a long line of city-parish officials aspiring to a higher office.
But her decision to run also means taking on what is known as the Metro Council curse, which previously claimed members David Boneno, Lorri Burgess, Wayne “Spider” Carter, Joe Greco, Darrell Ourso, Byron Sharper and, most recently, Ulysses “Bones” Addison.
Addison lost in a May runoff to retired businessman Dalton Honoré for the House District 63 seat. Addison also unsuccessfully ran for the same seat in 2002.
Why do Metro Council members typically fail to win state positions? Political consultant Roy Fletcher suggests it’s difficult for candidates to establish credentials for solving broad issues. Televised broadcasts of council meetings allow the entire parish to understand members’ positions and philosophies long before they run for higher office.
Representing a specific constituency might be positive on a council level, but it might not build support with enough voters in a legislative election.
“[Being a Metro Council member] is a tough job,” Fletcher says. “It doesn’t really lend itself to dealing with the higher issues of the world. There’s some kind of judgment being made there, but I’m not sure what it is.”—Emma James
BUSINESS OF POLITICS
Barrow seeks a balance
Even though the state constitution calls for all boards and commissions to be balanced with members representative of Louisiana’s diverse population, Rep. Regina Barrow (left), a Baton Rouge Democrat, argues that it’s “not clear” whether officials are making sure there’s a mix when it comes to race, gender and other factors.
Barrow filed bills during this year’s legislative session that altered the makeup of the Park Forest East Crime Prevention and Improvement District as well as the Greenwell Springs-Airline Economic Development District, among others. More recently, the Legislature’s Governmental Affairs Committee backed a resolution from Barrow late last month to investigate the “composition of the membership of boards and commissions.”
The report is due to lawmakers prior to the 2011 regular session. The committees also are compiling reports on access to public records and limiting mishandled public money, not to mention preparing for the heavy-duty task of redistricting next year.
Another small biz bill
U.S. Sen. Mary Landrieu (right), a New Orleans Democrat who chairs the Senate Committee on Small Business and Entrepreneurship, has introduced the Small Business Investment and Innovation Act of 2010. The legislation aims at expanding access to broadband technology, strengthening counseling and technical assistance programs, revising disaster assistance, addressing regulatory concerns, and building contracting and international trade initiatives for small businesses.
Landrieu’s effort comes on the heels of her success in getting passed the Small Business Jobs Act of 2010, which President Barack Obama signed into law in September. In contrast, Landrieu is couching the new bill as Main Street legislation.
“The Small Business Jobs Act was a step in the right direction for America’s job creators, but much more needs to be done,” she says. “Our small businesses need programs to help expand broadband technology in rural and underserved areas. Our entrepreneurs need help when disaster strikes the heart of their community. And without counseling and assistance, our entrepreneurs could never learn how to expand and grow successfully.”
Rate question
The Louisiana Municipal Association recently established a special committee to seek solutions for and make recommendations about increasingly exorbitant employer contribution rates paid by municipal employers to the statewide public retirement systems.
The LMA committee will be working directly with the Funding Review Panel, which was re-created through state law this year by Rep. Kevin Pearson, a Slidell Republican who chairs the House Retirement Committee. This panel was originally created prior to Hurricane Katrina but lost momentum in the aftermath of the storm.
Pearson says the panel, and groups like the LMA committee, will help ensure that the state retirement systems are solvent, so benefits will remain for current and future retirees without the necessity of a state bailout. “The Funding Review Panel, with the help of the LMA, is addressing areas of need by seeking wise stewardship of public tax dollars, while also maintaining commitments our state has made to employees who spent their careers working on the state’s behalf,” he says. “Although revenues are tight, all Louisianans are in this together.”
A full report from the Funding Review Panel, including an overview of the challenges faced by municipal retirees, is expected in March.—Jeremy Alford
IN MEMORIAM
Remembering Price LeBlanc [1922-2010]
Price LeBlanc, the car dealership founder known for television ads that ended with his catchphrase “Dahlin,’” was a person who “loved people and loved the car business.” LeBlanc died Nov. 19 at his home in St. Gabriel. He was 88.
“There are a lot of characters around, but no one was quite like him,” says Bob Israel, president of the Louisiana Auto Dealers Association. “He really backed up in his personal life what he put out in his public life.”
LeBlanc was a cattle farmer-turned-auto dealer; he swapped livestock for vehicles after a short stint at Standard Motor Co., in 1954, and he went on to found the two highest-performing dealerships in the state.
He was recognized as Business Report’s Hall of Fame laureate in 2005, saying he would like to be remembered as a man who took care of his friends. LeBlanc contributed to the Louisiana tradition of lagniappe by giving his country sausage to customers. And he introduced “Dahlin’” to his commercials in honor of his mother in 1980.
Dealership owner Gerry Lane describes LeBlanc as a tough competitor who was willing to “climb a tree to beat you out of a deal.”
More than that, Lane says, LeBlanc was a magnet for others; the two met in 1957. “Everywhere he went, people gathered around him. We’ve suffered a tremendous loss.”—E.J.
EXECUTIVE SPOTLIGHT
Maj. Gen. John Basilica Jr.
Vice president/Gulf Coast district leader
HNTB Corporation
Hometown: New London, Conn.
Maj. Gen. John Basilica Jr. is an imposing figure in full uniform. He has more than 31 years’ military experience, which serves him well as vice president and Gulf Coast district leader for HNTB Corporation, where he is responsible for the operation of multiple projects. Basilica’s greatest professional accomplishment is commanding the 4,500-soldier 256th Brigade Combat Team of the Louisiana Army National Guard in Baghdad from 2004-05. As a result, it’s not surprising that Basilica enjoys the challenge of “building and leading teams of people to accomplish difficult missions.” His prescription for life? “I am a very optimistic person and think that things could always be worse. I do the very best I can every day and do not live with regret.”
Click here to read his Q&A.
BOOK REVIEW: Black Faces in White Places
Authors: Randal Pinkett and Jeffrey Robinson with Philana Patterson
Year: 2010
Publisher: Amacom
Pages: 268
In Black Faces in White Places, authors Randal Pinkett and Jeffrey Robinson say black business owners can achieve success in any [board]room and can pave the way for others to succeed, too.
Blacks, they explain, have been “confronted with a challenge related to [their] race” at some point in their lives. It might have been a public one, such as Pinkett experienced within seconds of his victory on The Apprentice, or it might have been a private one. Either way, though opportunities for blacks are improving, they’re far from equal with their white peers, especially in business.
How can blacks overcome stereotypes and the feeling of life in a fishbowl? The authors say there are 10 ways to reach the top, stay there and forge a path for others: Establish a strong identity. Know where you’ve been so you know where you’re going. Reach beyond your comfort level for exposure to different people and situations. Build relationships that are solid and diverse. Forget about prestige and job title, and focus on excellence. Ask others for wisdom. Learn the power of a cohesive crowd. Know when to fight for an issue and when to acquiesce. Act like an entrepreneur. Work with synergy.
Black Faces in White Places has been written from private points of view and includes many been-there-done-that stories. Pinkett and Robinson provide step-by-step methods for achieving success in the workplace. It’s an insightful book for blacks who seek a career.—Terri Schlichenmeyer
THE GOOD LIFE
Edible metals
Gold and silver have long been the standard for luxurious holiday gifts. In a sluggish economy, however, you might think precious metals are a little too expensive or presumptuous for that executive on your shopping list.
Then again, if you’ve ever shopped for a boss, coworker or client, you’re probably not eager to reenter the labyrinth of mundane corporate gifts, such as gift baskets, personalized stationery, business card holders and gimmicky desk gadgets.
Swiss company DeLafée offers a unique gift option that falls in the middle. Since 2004, the company has been receiving international attention by adorning fine chocolates, truffles and candies with flakes of edible gold and silver.
The company even offers hand-rolled Dominican cigars with silver or a 24-karat gold leaf wrap. Each cigar comes in an engraved stainless steal tube and gift box. The boxed cigar sells for about $100.
If the executive on your list isn’t into cigars, there’s also Swiss chocolate pralines rolled in 24-karat gold flakes, gold- or silver-coated lollipops, and gold-infused sparkling wine or green tea. Chocolate packages range from $40 to $300, and sparkling wines and teas sell from $50 to $100.
You can create your own gold-coated concoctions with the company’s edible gold flakes, sold in 0.3- and 1-gram jars. All of the gold and silver products are safe to consume by U.S. standards, the company says.
DeLafée doesn’t have Baton Rouge retailers, but the company offers two- to three-day shipping to the U.S. For more information, visit delafee.com.—S.S.
ON THE BEAT
Not back in business
The Caterie, a live music landmark destroyed in a New Year’s Day fire that severely damaged the Acadian-Perkins Plaza, will not reopen in the shopping center. Bob Claitor, the center’s co-owner, is negotiating with other taverns to move into the Caterie’s former space. Burgersmith, an upscale Lafayette hamburger restaurant, is expected to move into the former AT&T space.
Central casting
Through the first three months of the current fiscal year, sales tax collections in Central are running nearly 2% ahead of the budgeted amount. The city collected nearly $1.3 million in sales and motor vehicle taxes in July through September, compared with $1.27 million that was budgeted for that period.
Best and worst
Baton Rouge continues to hold the distinction of being Louisiana’s best place to live as well as its worst, according to the American Human Development Project. The “best” rating for Baton Rouge cited a suburban swath of southern East Baton Rouge Parish combined with West Baton Rouge Parish. The “worst” rating came for sections of downtown and north Baton Rouge.
Showing improvement
Louisiana had the biggest improvement in residents’ average credit score, rising 8 points since January. Nevertheless, the statewide average score of 647 is well below the U.S. average of 666, according to data released by Credit Karma, which tracks credit scores and household debt. The national average has dropped from 669 in January.
Breaking bread
Panera Bread, the fast-growing sandwich chain, plans to open its first Louisiana location in Baton Rouge. Company officials are looking at potential sites in Baton Rouge and plan to have a restaurant open in 2011. Panera Bread, based in St. Louis, has more than 1,400 bakery-cafés in the U.S. and Canada. The chain bakes various breads in-house and uses them in sandwiches and as bowls for soups.
Numbers game
Foreclosure actions aimed at Louisiana homeowners dropped from September to October, although the count was nearly 50% higher than a year ago, says Irvine, Calif.-based RealtyTrac. There were 1,897 foreclosure-related actions statewide in October. That count was down 6% from September, but up 48.9% from October 2009.
Now hiring
A quarterly survey of large and small Louisiana businesses says an increasing number of companies plan to hire additional workers in the next six months.
Of the large businesses polled in the Capital One survey—companies with more than $10 million in annual revenue—49% plan to add to their payrolls in the next six months. That’s up nine percentage points from the second quarter, Capital One says.
Small businesses, those with less than $10 million in annual revenue, saw a similar increase. Thirty-six percent plan to hire in the next six months, up 10 percentage points from the second quarter.
That’s welcome news, because 58% of the more than 400 Louisiana residents polled say jobs are “hard” or “nearly impossible” to find. Despite the Deepwater Horizon disaster and drilling moratorium, 36% of large businesses say economic conditions are getting better, while 28% of small businesses say their outlook is improving.
The results of the survey were based on a poll of 300 large businesses and 200 small companies.
By the book
Gov. Bobby Jindal’s book Leadership and Crisis is moving at local bookstores. The book went on sale earlier this month, although some copies trickled into stores early.
An employee at Barnes & Noble at Perkins Rowe says the book is selling “pretty well” and that about half of the store’s stock is sold. At Borders in The Boulevard, an employee says Leadership and Crisis is selling as well as former President George W. Bush’s memoir Decision Points, which also came out earlier this month. Jindal’s book wasn’t selling as many copies as Decision Points at the Books-A-Million in Marketplace Siegen Lane, according to an employee, who says he expects sales of the governor’s book will pick up as the holidays approach.
Nationally, Jindal’s book also is doing well. Earlier this month, Leadership and Crisis ranked No. 1 on amazon.com’s best-seller list in political leadership and No. 106 on its overall best-seller list.—E.J. and T.B.
What am I bid for this property?
Robert Burns is a real estate broker and an auctioneer. If you have a property you want to sell as quickly as possible, you might call him.
Quite a few people have been recently calling Burns. He estimates he’s had more calls in the past six months from people looking to unload properties than in the previous five years. But he hasn’t done many auctions over the past 15 months, when he used to do seven to 10 per year.
“Everybody thinks when times go bad, auctions flourish,” he says.
But like a typical agent, he does better when things are blowing and going. He recalls more than 30 properties selling in one night at an auction he worked in September 2006.
“Back then, if you could fog a mirror, you could get a loan,” Burns says. “Today, if we had those same 36 properties lined up for auction, I wouldn’t expect to sell any.”
Burns’ firm, Auction Sells Fast, received a big visibility bump earlier this year with the announcement of its joint venture with Beau Box Commercial Real Estate, a firm with name recognition in the Capital Region.
The agreement gives Box a way to move foreclosed properties quickly, and gives Burns a source of properties to sell. The firms can combine their mailing lists and marketing efforts.
Box couldn’t be reached for comment. But in an interview with Daily Report earlier this year, he said several hundred million dollars’ worth of distressed real estate was expected to hit the market over the next two years, and an auction was a good way to approach that market.
Auctions aren’t exclusively made up of properties in danger of foreclosure. Auctioneers sometimes say their industry is driven by the three Ds: debt, death and divorce. An accumulation of the first D, combined with difficulties obtaining refinancing, has led experts to predict a coming wave of commercial foreclosures to rival the housing crisis seen in some markets.
That wave might still be coming, but it hasn’t crashed ashore, which Brian Andrews of Andrews Commercial Mortgage finds surprising but not shocking.
Andrews says he would have expected lenders by now to have been under pressure from regulators and stockholders to show some activity and prove they were concerned about their credit quality. Instead, he says, banks seem to be taking what he considers to be a more prudent approach.
“The banks are just saying, ‘We’re going to continue to work with the customers as long as the customers are continuing to work with us,’” he says.
At the moment, Andrews says, the few potential buyers are looking for “trophies” or “train wrecks.” Baton Rouge doesn’t have any properties that are trophies on the national level, he says, and people here aren’t desperate enough to sell for pennies on the dollar.
He says banks might still have one more year of low expectations, when they can let people slide. But he suspects owners and stockholders might want to see cleaner balance sheets after 2011.
“My sense is, in 2011, that’s when the banks are going to start saying, ‘You’ve either got to fix this or I’m taking it back, I’m selling it for what I can and I’m just going to get the deficiency out of your hide,’” he says.
Dave Gilmore of Gilmore Auction & ?Realty is starting to see more commercial properties in the pipeline. Owners who bought at the top of the market might be able to refinance, he says, but they might have to come up with 30% of the value. He doesn’t expect a sudden flood of foreclosures.
“They’re doing the ‘extend and pretend,’” he says; in other words, lengthening the term of the note and hoping economic conditions improve.
The majority of calls to people like Burns and Gilmore are about residential properties. Even then, the owners don’t seem all that desperate, and Burns often doesn’t try to set up an auction because he’s not confident of a sale. Auctions are unconditional sales, and they work best when there’s a highly motivated seller.
“What auction does, it stops the bleeding,” he says. “The old saying is, ‘I’m no longer after the cheese, just get me out of the trap.’”—D.J.
