To those who wait…
This has been a good year for downtown development with one hotel, several bars, an art gallery and new residential real estate.
You know the saying about good things coming to those who wait? That’s what downtown developers and stakeholders must have been telling themselves for the past five years. There are issues of obtaining property, parking, customers and, of course, financing.
Financing probably is the single biggest issue, especially in wake of the international market collapse almost one year ago.
“Persistence will get you everywhere,” says Downtown Development District Director Davis Rhorer, who for more than a decade has been working to make downtown Baton Rouge a thriving city center.
It’s all about continuing to push and talk through projects with the stakeholders, he says. “You plan the work, and then you work the plan.”
Derek Fitch, vice president for Cyntreniks, which developed the newly opened residential project Kress at Third & Main, says the past few weeks have been promising for downtown.
“It confirms that vibrant urban centers are important for the overall city and parish,” he says.
While the rest of the nation has come to a screeching halt over financial woes, downtown is a sign that Baton Rouge still is building. That helps it live up to recent rankings from The Brookings Institute that lists the city has having the nation’s sixth-strongest economy.
That might mean a lot of the waiting is finally over.
Here’s a look at what’s happened downtown in September:
One Eleven
City Year, the young adult volunteer service corps, is moving out of its home at Third and Convention streets and into sleek, modern digs at the Baton Rouge Area Foundation and Commercial Property Realty Trust’s add-on to the Shaw Center for the Arts. City Year will join the Arts Council of Baton Rouge in the office space just below the 12 residential units on the third and fourth floors, most of which are occupied.
Police and art
Across Convention Street from the planned pharmacy will be a new City Police substation and an art gallery proposed by the Arts Council. The space, which will be leased out by the State Office of Facilities Corporation, has been vacant since the Third Street Parking Garage on top of the space was built—a long-awaited deal.
Lucy’s Retired Surfer Bar
Construction has started on the former D’Agostino’s/Café Mediterranean building on Third Street next to The Roux House. Lucy’s also will be the first dog-friendly bar downtown, complete with menu options for four-legged friends. Downtown residential developer and architect Norman Chenevert says more entertainment downtown is good for the city. “It draws down the younger generation.”
Rocking Coca-Cola
It’s gone through many manifestations over the years, including lives as The Shelter, Richoux’s, Parrot Beach and Dante’s. But now, the vacant building with the iconic Coca-Cola sign is being renovated into a “House of Blues-style” music club.
Downtown pharmacy
Out with the old—City Year—and in with the new—a national drugstore chain in the BRAF- and CRPT-controlled property at Third and Convention streets. The pharmacy, which has long been sought by downtown residents, might even be helpful for developers in securing financing for more residential development. “It is certainly something that we need,” Chenevert says. “That kind of drugstore would have a certain amount of groceries.”
Hotel Indigo
Truly something that has been a long time coming. The former Hotel King, with its aging façade and defunct interior, will become Hotel Indigo, part of an upscale boutique hotel line. Developers Brace Godfrey and John Schneider waited 39 months for financing on the project.—Olivia Watkins
The instigator
The Commission on Streamlining Government has been charged with a miserable task to save Louisiana from the brink of fiscal failure. If it sounds treacherous and dramatic, that’s because it is. The state’s five-year budget outlook forecasts a $1 billion shortfall in Fiscal Year 2011, which begins next July, and a $2 billion reduction in money for Louisiana government in Fiscal Year 2012.
Aside from a very general, feel-good, unspecific goal to reduce costs by hundreds of millions of dollars, and despite the challenge at hand, there hasn’t been anything earth-shattering to come out of the streamlining group yet, unless you want to consider the outside-the-box recommendations of State Treasurer John Kennedy, who serves on the commission and oversees a sub-committee. Some of the ideas floated by Kennedy, a Republican, have helped create—or rather play into—the image of a GOP governor who’s thinking too inside the box. Of course, Kennedy was once a Democrat sharing party ties with former Gov. Kathleen Blanco, and he gave her the same kind of hell, in his own wonkish, budget-hawkish way.
When the process first got into high gear last month and members eagerly awaited information to work with, Kennedy fired off letters to several different parties involved in the process requesting information on 25 areas of interest, from the five-year average turnover rate of state employees to attempts by the Louisiana State Police to buy gas in bulk. Kennedy has even suggested cutting state government’s bloated workforce by 15,000 over the next three years and eliminating the pork queue nonprofit groups stand in during the budget process [old hat for the treasurer; he attacked Blanco on earmarks as well].
If that wasn’t enough, Kennedy also has dipped his toes into the Postsecondary Education Review Commission, on which he does not serve in any capacity. It’s the other major streamlining group. While it has only met once since being formed this summer, Kennedy already is providing the group fodder.
Earlier this month, Kennedy penned an op-ed on why Louisiana needs a single board for higher education. In doing so, he showed once again that the quill can indeed be mightier than the sword, especially when you compare the Bayou State’s educational system to the religious factions of Iraq: “We are one state, but we have three systems of higher education—the LSU System, the Southern System and the University of Louisiana System. Each has its own board of supervisors. Consequently, the higher education boards in Louisiana resemble the factions in Iraq: just as the Sunnis fight the Shiites who fight the Kurds for political power and natural resources, the three systems of higher education in Louisiana scrap over turf and scarce taxpayer dollars in a political free-for-all that plays out every year in the Louisiana Legislature.”—Jeremy Alford
Here comes the pitch
He isn’t selling a ShamWow or OxyClean, but Mayor Kip Holden is playing the role of pitchman for his $901 million capital improvements package. He is pitching a millage increase that would pay for drainage, public safety and economic development projects—including the contentious Alive.
But East Baton Rouge residents aren’t taking the issue lightly, which means Holden has wheeled and dealed in front of numerous audiences this year. Rannah Gray, who is managing the media campaign, says Holden isn’t the only city official preaching the bond’s praise.
“Mike Futrell, Walter Monsour, Sheriff [Sid] Gautreaux, Chief [Jeff] LeDuff and others” are out there, she says.
And they aren’t just hitting up organizations that favor the mayor’s proposal—such as the Baton Rouge Area Chamber and Forum 35—they are talking to “civic associations, homeowners associations, rotaries, realty groups,” Gray says. “They’ve spoken to Associated General Contractors and an engineering group.” It’s just the big ones like BRAC and Forum that get big press.
But until the sale is made, there’s no way to tell if the product works. [For the record, OxyClean really does make your whites brighter.]—O.W.
Out of this world
AT&T is showing Baton Rouge residents the U-Verse.
The latest service from the telecommunications company allows customers to specialize their television-viewing experience. Among the offerings: Record and watch up to four different shows, download online photos, play video games and customize weather, news and other information.
Is U-Verse competition for cable?
AT&T Director of Home Sales Bonnie Denson says it is.
“This is the future of television,” she says. “U-Verse is entertainment how you want it when you want it, for customers at home and on the go.”
Cox Communications spokesperson Ann Ruble says the cable company already competes with AT&T in both phone and Internet service. The AT&T U-Verse won’t change how Cox competes in the Baton Rouge market.
“Cox still plans to invest in both people and the product,” she says. “We will continue to focus on our on-demand and HD channel services because that’s important to our customers.”
AT&T U-verse is available in 100 markets and has 1.6 million subscribers nationwide. AT&T officials won’t say exactly where U-Verse is available in Baton Rouge. Customers can check for availability by entering their address at the AT&T Web site.—Emma James
ExecutiveSpotlight
C. Cammack Morton
President, CEO
Ashby Hospitality
Hometown: Birmingham, Ala.
The lush green grass of the outfields. The neatly drawn chalk lines between the bases. The lucky foul ball posts pointed out to visitors as they tour the park, listening to stories of great ball players, imagining what it was like to hear the pop and the break of the wooden bat that sent a tightly stitched baseball flying overhead of the defensive team. Maybe that’s what Camm Morton thinks of when he’s tending to his own lush garden—of his dream job as head groundskeeper for the Baltimore Oriel’s baseball park in Camden Yard. That doesn’t mean he loves his own grounds any less; it’s still a sanctuary away from the daily hustle of life. Morton also heads up Ashby Hospitality, which runs the Hilton Capitol Center—a renovation project completed during his tenure at Commercial Properties Realty Trust. It must have something to do with a knack for cultivation, the cultivation of things historic and things green.
What to read more of Morton’s Q&A? Click here.
SavingGreen
Green grows the carpet
Sometimes a noble idea can be found right underfoot—literally.
“Green” carpeting is a low-profile aspect of the sustainable design movement. Yet modular carpet squares that use recycled material are gaining ground in office buildings that seek Leadership in Energy and Environmental Design [LEED] certification.
Because the tiles are easily movable, a stain doesn’t mean re-carpeting an entire room. And when a company does decide to renew its old décor, green carpet makers offer a recycling option for passé shag that is often cheaper than dumping it.
Charles Chartier Jr. of Mandeville, whose Chartier & Associates represents flooring manufacturers, says when he was involved in renovating the Capitol Annex, the 78 cents per square yard that it cost to recycle the old material was less than the “tipping fee” that a landfill would have charged.
“Ten, 15 years ago, you would burn the carpet for energy in Alabama,” he says. “Today we can take it apart and create new carpet.”
Chartier says some insurers will cut a break to businesses in green buildings that are considered safer for employees. He is on the board of the U.S. Green Building Council’s Louisiana chapter, alongside James Bourgeois, a Baton Rouge-based account executive for Tandus, a floor-covering firm.
“Most folks don’t think of carpet as being ‘green,’” Bourgeois says.
He points to his company’s Powerbond, carpet that uses a recycled yarn and vinyl backing. Other modular tiles that the company makes are almost 60% recycled.
Ross Leonard, director of architecture and design marketing for Tandus, says green carpet isn’t less expensive than traditional material, but it is at least cost-neutral. He says the industry is driving the trend to conserve manufacturing resources and make sustainable design the norm.
“Fifteen years ago if you told a contractor to segregate out recyclable materials,” he says, “they’d look at you like you’re from Mars. Now it’s ubiquitous.”
He compared the shift with the value now placed on reusing copper salvaged from bulldozed buildings. “People would be crazy to throw that away now.”—Todd R. Brown
FastForward
Cut off
When Business Report first wrote about the American Recovery and Reinvestment Act of 2009 in its May 4, 2009 issue, the focus was on what it would take to lure first-time homebuyers into the housing market during a national recession. “Taking the bait” found that there were plenty of people willing to take the federal government up on a tax credit of up to $8,000 for qualified first-time homebuyers purchasing a principal residence on or after Jan. 1 and before Dec. 1.
But time is almost up. While there has been talk about extending the program into next year, new homeowners must close on a home before Nov. 30 to get the credit. That means potential homeowners need to try to get under contract by Oct. 20.
“There’s been a slowdown since the tax credit was put into effect, but I’m expecting a flood of people before the deadline,” says Mike Anderson, president of Essential Mortgage.
Financing is still difficult, especially since new mortgage rules took effect in July that may make closing more of a headache. But for first-time homebuyers with the right credentials, the deal is just as good now as it was at the beginning of the year, Anderson says. Interest rates are hovering around 5% and the average sale price of a home has remained fairly stable. The January average sale price in the Baton Rouge Multiple Listing Service was $186,916 and increased to $189,608 in August.
“It’s good timing now, just like it was good timing then,” Anderson says. “For a first-time homebuyer, this is $8,000 worth of free money, no strings attached. Who would want to pass that up?”—E.J.
NonprofitSpotlight
Louisiana Family Recovery Corps
Total assets: $15,400,496
Income: $43,508,627
Expenses: $43,603,029
2009 Board members:
Rev. Chris Andrews
Madlyn B. Bagneris
Randy Ewing
Anthony Laurent
Gregory N. Rattler Sr.
Ralph Stephens
Catherine Thomas
Number of full-time employees: 13
Highest-paid contractors:
Survey Communications: $653,965
Diane Allen & Associates: $245,999
Carrollton Technology: $124,564
Key projects: Providing services and resources to Louisiana families [like those pictured here] impacted by natural or man-made disasters, including housing, furnishings and restoration services. LFRC also serves on the National Commission on Children and Disasters, providing recommendations on how the federal government can better assist people in need.
SOURCE: 2008 Form 990, Louisiana Family Recovery Corps
BusinessOfPolitics
Slim edge
The highly anticipated U.S. Senate contest between Congressman Charlie Melancon (top left) and incumbent David Vitter (bottom left) is still more than a year away, but an internal poll shows how the two men stack up. As expected, Melancon, a Napoleonville Democrat, enters the race as the underdog, with name recognition of only 48%, compared to Vitter’s statewide recognition of 86%. That alone is enough for the poll to put Vitter in the lead overall, 47% to Melancon’s 37%. The poll was conducted in May by the Washington, D.C.-based Anzalone Liszt Research, a Melancon vendor, and distributed throughout the Democratic campaign earlier this month. While the GOP welcomes Vitter’s lead, pollsters John Anzalone and Jeff Liszt contend the survey offers several bright spots for Melancon. For instance, Vitter’s 47% lead is below the 50% threshold—“a very troubling sign for an incumbent,” they comment in a memo on the poll. When participants [800 likely voters] were given only positive information on the two candidates, such as party affiliation, background and future goals [about 100 words each, with Vitter listed first and no reference to the prostitution scandal], Melancon pulled ahead 49-41. Moreover, the poll revealed a net-negative re-elect rating for Vitter, which is a fancy way of saying that nearly half [45%] of the participants preferred “someone new,” as opposed to another term from Vitter. The numbers aren’t earth-shattering and pretty much mirror those produced by a July poll from Public Policy Polling [44-32] and another from March by Research 2000/Daily Kos [48-41].
Cowboy up
Maybe he just wanted to look like a better fit for the job. Or maybe it was time to show folks the real him. Whatever the reason, Agriculture Commissioner Mike Strain (right) has updated his profile picture on the department’s Web site at ldaf.state.la.us, and it’s certainly worth a hoot and a holler. In the photograph, Strain sports a large white cowboy hat, which might be the norm for Texas politicians, but certainly a novelty in Louisiana. It’s a country-fried persona coming from a down-home fella, to be certain. It’s just too bad the photo wasn’t taken to include Strain’s usual cowboy boots as well.
—J.A.
Fortnight Sept. 23 – Oct. 6
On this day in 2008? – September 23 – Business Report released “Weathering the storm,” a look into how small-business owners were faring post-Hurricane Gustav. Just one year later, most small businesses say they are prepared to handle any downtime and loss of electricity.
September 24 – Race, gender and division are again topics of discussion at the Kean Miller Diversity Council’s Louisiana Diversity Forum at the Baton Rouge Marriott. The forum includes speakers from ACLU, NAACP, business leaders and education and media representatives. For more information, e-mail rsvp@keanmiller.com.
On this day in 2007? – September 25 – Baton Rouge enjoyed a stable real estate market as detailed in a Business Report story, “From bust to boom.” Since then, however, the market has slowed as a result of the economic downturn. Still, the city’s economy ranks No. 6 nationally according to a study by The Brookings Institute—an indication the Capital Region is somewhat insulated from the problems affecting many parts of the country.
September 25 – After a tumultuous start to the year, evidenced by budget cuts from the governor’s office, the Louisiana Art and Science Museum pushes forward with its annual gala, “Swing Upon a Star.” The event, which features a Galilean theme, is scheduled from 7:30 to 10:30 p.m. For more information, call 344-5272.
On this day in 2006? – September 26 – Business Report wrote about Pinnacle Entertainment’s proposal for a casino resort along the Mississippi River and its challenges to receive approval from the Louisiana Gaming Control Board. Earlier this month, Pinnacle returned to the board to request a third extension on its plans.
October 2 – National political expert James Carville will speak at the Istrouma Area Council Boy Scouts of America’s Annual Business & Industry Leaders Lunch at the Hilton Capitol Center. Carville is scheduled to talk at noon. For more information, call 247-9974.
General practitioner
Baton Rouge General Medical Center and Tulane University have signed a letter of intent that could lead to third- and fourth-year medical students training at the hospital as early as next summer. Dr. Flip Roberts, chief medical officer at Baton Rouge General, says discussions are “very much in the conceptual phase,” but the medical staff has strongly endorsed the idea. Roberts says the plan is to start small, with 10 or so Tulane students training at the hospital. Tulane has been forced to change its training patterns for students because of Hurricane Katrina, and the university wants to increase the number of medical students. An agreement with Baton Rouge General would give the university another place to train students and supply the medical center with a potential source of new doctors. “Training new physicians is a place where your future manpower comes from,” Roberts says. “Attracting physicians to Baton Rouge from somewhere else in the U.S. is much harder than actively training future physicians in your own community.” Roberts says he expects both sides will decide on the potential and size of any training by the end of the year.—Timothy Boone
Affirmative action
Affirmative Insurance Holdings will consolidate its retail agency operations in the Bon Carré Business Center, a move that will add 56 jobs over the next nine months and retain about 200 more. Affirmative, which bought USAgencies for $200 million in a deal that closed in February 2007, has applied for a permit to build a 52,000-square-foot office in Bon Carré. Louisiana Economic Development says Affirmative will invest $1.2 million on the office. The company, which sells auto insurance policies, considered consolidating its retail agency operations in Chicago or Dallas, where it also has a major presence, but decided on Baton Rouge because of the business climate and quality of workforce. “The fact that this Chicago-based operation is relocating to Baton Rouge proves again that we can compete with any city in America for new business and jobs for our city and parish,” says Mayor Kip Holden. The new hires will boost Affirmative’s payroll by $1.5 million, to more than $9.5 million.—T.B.
ONTHEBEAT
Rapid expansion: Ascension Parish economic development officials are trumpeting new figures that show the parish’s civilian labor force has passed the 50,000 mark. The civilian labor force is made up of all the people in a parish who are working or actively looking for work. According to the Louisiana Workforce Commission, the Ascension civilian labor force was 50,275 in June and 50,060 in July.
Fast fail: A report that graded major U.S. cities for their fast-food consumption gave Baton Rouge a “B-.” Men’s Health based the grade on the number of McDonald’s, Burger King, Wendy’s and Taco Bell restaurants per capita, the percentage of residents who ate fast food seven or more times a month and the obesity rate.
Cancer killer? Esperance Pharmaceuticals started Phase 1 clinical studies of a drug designed to seek and destroy cancer cells. The Baton Rouge-based biotech firm is testing EP-100 in patients with advanced solid tumors. Preclinical studies have shown the drug selectively kills cancer cells without hurting healthy tissue, says Hector Alila, Esperance president and founder.
Besting them: A new report says Baton Rouge, Lafayette, Lake Charles and Monroe are four of the U.S. real estate markets expected to perform the best in the upcoming year. Local Market Monitor, which produces the Home Price Forecast for more than 300 cities, says home values should remain level in those cities over the next 12 months. Officials with Local Market say home prices in those cities are lower than the national average, and the effects of the recession have been slight.
Hello Tigers! Hello Sushi is bringing a new kind of Tiger bait to the LSU campus. The restaurant has three booths in Tiger Stadium this fall, offering rolls and edamame to football fans. Angela Finch, one of the owners of Hello Sushi, says the chain has been looking to get involved with LSU for more than five years. The booths have the same Anime look as Hello Sushi’s two locations, on Burbank Drive and Highland Road.
Good growth: The number of people on nonfarm payrolls in metro Baton Rouge went up by 700 in July over the year before, making the Capital Region one of the few metro areas to add jobs. According to figures released by the U.S. Department of Labor’s Bureau of Labor Statistics, there were 372,200 people on payrolls in metro Baton Rouge in July, a 0.2% increase from the year before. The city was tied for 11th in terms of percentage growth.
Paging the doctor: The health care industry is the biggest employer in the state, based on total payroll expenditures, according to a report released by the Louisiana Hospital Association. There were 11,179 health care businesses in the state during 2006, with nearly 253,000 employees and an $8.3 billion payroll. Hospitals accounted for the largest share of workers and salaries. In metro Baton Rouge, more than 43,000 people worked in the health care industry in 2006, earning $1.35 billion. The nearly 16,500 hospital workers earned almost $565 million.
