2012 neworleansnewopportunities
2012 neworleansnewopportunities
ACKNOWLEDGEMENTS
The New Orleans Business Alliance would like to acknowledge the following individuals and organizations for their assistance in the production of the 2012 New Orleans New Opportunities Guidebook. LEADERSHIP SUPPORT IN ECONOMIC DEVELOPMENT The City of New Orleans Louisiana Economic Development GNO, Inc.
CONTENT CONTRIBUTORS BioDistrict Downtown Development District Entergy New Orleans New Orleans Public Belt Railroad New Orleans Redevelopment Authority (NORA) New Orleans Regional Planning Commission Professor Richard Campanella, Tulane University The Port of New Orleans The Idea Village
EDITOR, DESIGN AND PRINTING Heather Estay Patricia Quinn Stokes of P.S. Creative Studios, graphic design Adam Stross of Direct Mail Plus, printing
2012 EXECUTIVE LEADERSHIP TOUR HOST COMMITTEE Michelle Craig, Co-Chair, Partner, Adams and Reese, LLP Ronnie Burns, Co-Chair, Owner, BMG Enterprises Victoria Adams, Network Relations Manager, The Idea Village Mark Boucree, Vice President Community Development Banking, Capital One Bank Tracee Dundas, Fashion Editor, New Orleans Magazine Patricia Hightower, President and CEO, Bayou Equity Chadrick Kennedy, Senior Vice President, The Kennedy Financial Group Virginia Miller, Co-Owner, Beuerman Miller Fitzgerald Toni Rice, President, New Orleans Multicultural Tourism Network Jade Russell, Counsel of Regional Operations, Caesars Entertainment We would also like to acknowledge the following New Orleans Business Alliance staff for making this book possible: Rodrick Miller, Kim Marchand, Melissa Ehlinger, Emilie Tenenbaum, Brenda McNary, Hyma Moore, Jr., Gee Lauder, Brenda Canada, Max Vorhoff, Tre Rials, Michael Martin, Brandi Hebert, and Antonia Holden.
Statistical information contained in this document has been obtained from sources believed to be reliable but such accuracy cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Cover image courtesy of the Mercedes-Benz Superdome.
CONTENTS
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LETTER FROM ROD MILLER
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L E T T E R F R O M M AY O R L A N D R I E U
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N E W O R L E A N S N E W O P P O RT U N I T I E S O V E RV I E W
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N E W O R L E A N S H I S T O RY By Richard Campanella
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LIFESTYLE
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FLOOD PROTECTION INFRASTRUCTURE
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ABOUT NOLABA
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R E A L E S TAT E
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I N N O VAT I O N E C O S Y S T E M
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D I G I TA L M E D I A & E N T E RTA I N M E N T
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A D VA N C E D M A N U FA C T U R I N G
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TRADE AND LOGISTICS
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NEW ORLEANS IN THE NEWS
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APPENDIX
Culture // Climate // Crime // Education
List of Incentives Map of New Orleans Historic Districts Map of New Orleans Neighborhoods Contact NOLABA NOLABA Investors NOLABA Board of Directors
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LETTER FROM ROD MILLER
Dear Friend,
The 2012 New Orleans, New Opportunities Guidebook seeks to heighten the trajectory of the new New Orleans.
The 2012 New Orleans, New Opportunities Guidebook aims to fully depict the successful rebuilding of a truly great American City. New Orleans has grown from an oil and petro chemical dependent economy to a diversified business mecca that is attracting highly-educated residents of all ages to an environment rich with cultural amenities. The broad range of jobs provided in administration, healthcare and educational institutions and in hotels and cultural institutions has made New Orleans a place of opportunity for residents with all educational and skill levels from around the world. New Orleans is truly a world class city. The New Orleans Business Alliance is the City’s official economic development organization. The organization was formed on August 13, 2010 as the first public-private partnership for economic development in the 300 year history of the City. The Business Alliance’s work spans corporate relocation, business retention and expansion, and retail attraction. The organization has taken the lead in reshaping New Orleans’ business environment by working with local leaders in both business and government in a sustainable, transparent, and structured manner. This guide is a comprehensive look at all aspects of the New Orleans market, including industry profiles and opportunities, medical and educational advances, real estate and retail expansion, and employment and residential trends. It highlights how these sectors have reinforced each other and buffered New Orleans and this region from the worst of the national recession. Each chapter contains both previously released, industry-specific data as well as a great deal of original research and analyses performed by our staff, particularly as it relates to industry cluster development, real estate and retail trends and opportunities for growth in each. The global economy has presented us with new opportunities and New Orleans is well-poised to take advantage. The 2012 Guidebook is designed to be of use to those who own, develop, market, or invest in business. It seeks to provide useful information for employers who are seeking to expand or relocate to New Orleans. It contains a wealth of information about those intimate-scale details that make New Orleans such a viable market: area demographics, maps, case studies, significant opportunity sites as well as incentives relative to each industry and/or cluster. The 2012 Guidebook celebrates success. But it also looks at challenges we will need to overcome in order for New Orleans to continue to thrive as a dynamic and growing employment hub. Competitive cities in the 21st century are ever changing; they are more with the times— and they don’t constrain themselves with the old way of doing things. The 2012 New Orleans, New Opportunities Guidebook seeks to heighten the trajectory of the new New Orleans. The research and data gathered for this report were directed by Kim Marchand, Vice President of Business Development and Marketing and Melissa Ehlinger, Director of Strategy, Policy and Research, with assistance of staff members Hyma Moore, Jr., Brenda McNary, Gee Lauder, Max Vorhoff, Tre Rials, and Brenda Canada. Additional support was provided by the Business Alliance team of interns. Professor Richard Campanella, Tulane University Professor in the School of Architecture, authored the section entitled New Orleans: A Timeline of Economic History. The 2012 Guidebook was designed by Patricia Quinn Stokes with P.S. Creative, and edited by Heather Estay. The entire document, as well as individual sections, can be downloaded at www.NOLABA.org.
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Onward and Upward,
R O D R I C K T. M I L L E R President and CEO, New Orleans Business Alliance
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L E T T E R F R O M M AY O R L A N D R I E U
Sincerely,
M AY O R M I T C H L A N D R I E U City of New Orleans
New Orleans is an international city, and we are quickly becoming a world class business epicenter.
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Thank you for your interest in New Orleans. This guidebook is a further indication of our commitment to continuing New Orleans’ economic development momentum. New Orleans is an international city, and we are quickly becoming a world class business epicenter. National news outlets, business investors, local and national developers, entrepreneurs, film producers, digital media programmers and advanced manufacturers are all citing New Orleans for our “open to business” mantra. Forbes Magazine recognized New Orleans as one of the country’s Biggest Brain Magnets. Jim Coulter believes New Orleans is one of the best cities for entrepreneurs. The Wall Street Journal has spoken about our improved and rapidly improving business climate. People are taking notice. We will continue to attract new businesses, grow and diversify local economic drivers, bring in new retail, and attract strong talent pools to marry with our current workforce. This guide gives you an understanding of where we are headed. You, too, will understand why New Orleans is the New Opportunity. I commend the work done by the New Orleans Business Alliance for producing and compiling the information used to create the 2012 New Orleans, New Opportunities Guidebook. Creating both an innovative and sustainable business climate continues to be a priority as we shape our economic future.
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N E W O R L E A N S N E W O P P O RT U N I T I E S // O V E RV I E W
A growing number of companies and entrepreneurs are discovering the energy and promise of New Orleans.
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he City has undergone a major revitalization since the devastation of Hurricane Katrina, yet this renaissance has gone beyond just rebuilding. New Orleans has established a transformational culture, a thriving hub of innovation, and fresh economic initiatives that compete with cities such as New York, San Francisco and Austin. Several factors have contributed to New Orleans’ successful rebirth, including lower operating costs, aggressive state tax credits, exceptional quality of life for young professionals and families, and strong cooperation among city, state and federal leaders. Alongside its fascinating history, lively artistic culture, and robust traditional sectors of tourism, energy and shipping, the new New Orleans is now known as a breeding ground for collaborative innovation and entrepreneurism, a hub for cutting-edge discoveries in bioscience, and a destination point for advanced manufacturing. Over the past six years, the federal government and the City have poured millions of dollars into renovating the storm protection system and enriching the City’s public school system. City leaders have focused on building and attracting a vibrant pool of highly-skilled and talented
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#1 BRAIN MAGNET Forbes Magazine
40 PERCENT HIGHER THAN THE NATIONAL AVERAGE FOR ENTREPRENEURIAL ACTIVITY The Brookings Institute
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BEST CITY IN THE NATION TO RAISE A FAMILY Parenting Magazine
workers and revitalizing the City’s physical infrastructure to 21st century standards. The community has continued to celebrate its history while cultivating innovation and change. All of these efforts have combined to create a New Orleans that preserves and nurtures its human, economic and natural resources. People no longer have to make the choice between a thriving business culture or an attractive quality of life, both are present in New Orleans. In 2011, Forbes declared New Orleans to be the “#1 Brain Magnet” in the US and The Wall Street Journal pronounced New Orleans as “Most Improved City for Business.” The Brookings Institute reported that entrepreneurial activity in New Orleans was 40% higher than the national average, and Forbes.com ranked New Orleans No. 2 among the Best Big Cities for Jobs. In 2011, Parenting magazine ranked New Orleans the 16th-best city in the nation for raising a family, based on schools, jobs, crime rates, parks and affordable homes. New Orleans also earned the No. 1 ranking in the Thomas B. Fordham Institute’s 2010 report on “America’s Best Cities for School Reform.” New Orleans is being reborn and the world is beginning to take notice.
NEW ORLEANS DEMOGRAPHIC OVERVIEW POPULATION
348,878
FEMALE POPULATION
53.1%
MALE POPULATION
47%
AVERAGE HOUSEHOLD INCOME
$63,812
MEDIAN HOUSEHOLD INCOME
$46,084
AVERAGE AGE
36.6
POPULATION WITH SOME COLLEGE
53.8%
Source: 1990-2010 Census, 2011 Estimates
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NEW ORLEANS: A TIMELINE OF ECONOMIC HISTORY B Y R I C H A R D C A M PA N E L L A , T U L A N E U N I V E R S I T Y
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rench colonials founded New Orleans in 1718 as a headquarters for a commercial land-development scheme for their 1682 claim of the Louisiana territory, and as a bulwark against English and Spanish expansion into the lower Mississippi Valley. The city floundered in the colonial era but developed into a major
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1718 NEW ORLEANS FOUNDED by French Colonials
mercantilist node after the Louisiana Purchase in 1803, as Americans moved westward and needed a downriver transhipment port to which they could export their agricultural surpluses, and from which new steamboats could return with imports. Vast sugar and cotton plantations near New Orleans, with their insatiable
“ The city floundered in the colonial era but developed into a major mercantilist node after the Louisiana Purchase in 1803.
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demand for enslaved labor, made New Orleans the premier slave-trading city in the United States, as well as the legal, financial, and commodities-handling capital of the South. Throughout the antebellum era, the port ranked second only to New York in traffic, while the city’s population doubled roughly every fifteen years, making New Orleans the largest city in the South and at one point the third-largest in the nation. But the concurrent development of manmade waters like the Erie Canal (1825), plus a network of railroads (1830s-1850s) linking the trans-Appalachian West directly with the Northeast, increasingly gave shippers alternatives to the Mississippi River route to market. While New Orleans’ western commerce increased in absolute numbers, its relative share diminished. Coupled with the Civil War and the ensuing economic, social, and racial upheaval, New Orleans found its trajectory of metropolitan ascendency reversed by the late 1800s. The city reinvented itself at the turn of the twentieth century by modernizing its port, investing in municipal improvements in drainage, water distribution, transportation, and electrification, and encouraging the development of a manufacturing sector. Institutions of higher education formed and developed national reputations, particularly in the area of medical research. River traffic revived during World War I, as the nation upgraded its inland waterways system and barge fleet and the Mississippi River enjoyed a rebirth of domestic traffic. New Orleans especially boomed during World War II, when major ship-building and armaments industries brought tens of thousands of rural workers into the city and the port became the point of embarkation for hundreds of thousands of troops. The 1940s also saw the conversion of the sugar cane
fields along the lower Mississippi to petroleum processing and chemical industries, abetted by ocean-going shipping and the growth of Louisiana’s onshore, nearshore, and later off-shore oil-and-gas extraction industry. With manufacturing in decline after the war, New Orleans rebounded with oil-and-gas related employment. Technological changes in the shipping industry, meanwhile, replaced thousands of dockworkers with containerization technology, to which the city responded by developing its service sector for the leisure and business tourism industry. The city that came onto the world stage as a river/ ocean shipping port specializing in agricultural commodities entered the twenty-first century resting primarily on the tourismdominated service sector, port industries, and the oil and gas sector. The deluge triggered by Hurricane Katrina in 2005 brought great tragedy and great change. The postdiluvian city bustled with recovery investments and witnessed an influx of young, educated creative people who have introduced entrepreneurial energy to the city, adding to the local cultural renaissance. Employment rates have remained consistently well below the national average since 2008, and housing values have seen none of the flux of markets like California and Florida. The city’s media and entertainment sector, particularly the film industry, has gone from negligible to national-class in less than a decade, earning the region the moniker “Hollywood South.” With an improved public education system and a new hurricane risk-reduction system complete as of June 2012, New Orleans finds itself wellpositioned for an economic resurgence. The following timeline supplements the above summary with additional details on the economic history and geography of New Orleans, from prehistoric times to the present.
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PREHISTORY Prehistoric Indigenous peoples occupy Mississippi delta and discover key shortcuts between Gulf of Mexico and Mississippi River; future New Orleans site, lying on one such portage, becomes trading site and encampment. 1600s 1682 La Salle claims Mississippi Valley and deltaic plain for France; names it Louisiana in honor of his king. 1699 France colonizes Louisiana for military, imperial, and economic reasons. 1700s 1712-1717 French crown cedes struggling Louisiana colony as commercial monopoly to Antoine Crozat and later John Law, who establishes Company of the West, launches international campaign to lure settlers, and resolves to establish New Orleans. 1718 Bienville establishes New Orleans at the present-day French Quarter. It becomes Louisiana capital and company headquarters in 1722. 1719 First large group of Africans arrives to New Orleans, commencing fourteen decades of slavery. 1762-1769 French and Indian War costs France most of its New World colonies; dominion of New Orleans passes to Spain. 1791 Market is founded along lower-city riverfront; “French Market” becomes keystone of extensive municipal food-retailing system and birthplace of American tropical-fruit industry; today serves as node in tourist economy.
1793-1795 Eli Whitney’s cotton gin and Etienne Boré’s granulation of Louisiana sugar help launch Southern plantation economy. Both commodities enrich New Orleans while entrenching slavery in region. 1800s 1800 Spain secretly retrocedes Louisiana to militarily powerful France. 1803 Slave revolt in SaintDomingue, impending war, and need for money inspires Napoleon to sells entire Louisiana colony to U.S.; New Orleans, now in progressive American hands, is foreseen to become one of richest and most important cities in nation, hemisphere, and world. 1809 Over 9000 SaintDomingue (Haitian) refugees arrive to New Orleans via Cuba. 1812 Louisiana admitted to Union as eighteenth state. 1812 First Mississippi River steamboat arrives; with hinterland under intensive cultivation, new transportation technology positions New Orleans to become principal Southern city.
Canal and Carondelet Streets circa 1860.
city for lighting and other purposes.
command of Mississippi Valley trade.
1835 New Orleans and Carrollton Rail Road installed on present-day St. Charles Avenue, precipitating uptown development.
1851 A peak of 52,011 immigrants arrive to New Orleans, making city primary immigration port in South and second only to New York for most years between 1837 and 1860.
1836-1838 Municipal market system begins steady expansion.
1825 Erie Canal connects Great Lakes with Hudson River; gives New York City access to West, suddenly challenging New Orleans’ monopoly on Mississippi Valley trade.
1840 New Orleans, by one measure, ranks as fourth busiest commercial port in Western world, exceeded only by London, Liverpool, and New York.
1825-1830 Louisville and Portland Canal circumvents waterfalls on Ohio River; benefits New Orleans by providing uninterrupted shipping to Pittsburgh.
1840s Destrehan Canal dug to connect Mississippi River with Bayou Barataria and Barataria Bay.
1830s Pontchartrain Railroad and New Basin Canal give city access to lake trade. 1834 First successful gas company brings new fuel to
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1850 New telegraph lines speed city’s communication links with adjacent cities and points downriver. 1850s New railroads in Northeast introduce new competition on New Orleans’
1850s “Cotton District” forms around Gravier/Carondelet intersection; becomes New Orleans’ Wall Street. 1861-1865 Louisiana secedes from Union. War ends early for New Orleans as federal troops occupy city in May 1862. Region’s slave-based plantation economy collapses forever; era of human enslavement ends after 143 years. South and Southern agriculture is devastated; shipping commerce to New Orleans interrupted; federal presence and post-war racial tensions alter social landscape. 1860s-1870s Ice manufacturing and refrigerated shipping
abets food industries; expands list of commodities transhipped at New Orleans.
wealthy demographic to area. Loyola University follows in 1910
1860s-1870s Railroads connect city with Biloxi, Mobile, Pensacola, and points east.
1890s-1900s Purification and distribution plant is constructed in Carrollton, bringing city into modern age of municipal water systems.
1875-1879 With sedimentation delaying shipping traffic at mouth of Mississippi, Capt. James Eads constructs parallel jetties at South Pass. Structures deepen channel and allow ocean-going vessels to enter river promptly. Coupled with development of Mississippi River barges and new Southern railroads, Eads’ jetties help city rebound from post-war slump. 1877 Federal troops withdraw; New Orleans’ turbulent occupation and Reconstruction era ends. Postwar attempts toward legislating civil rights for emancipated peoples are derailed in favour of white supremacist state and local government; Confederacy essentially loses the war but wins the peace. 1879 Mississippi River Commission ends era of localism in the construction and maintenance of levees; commences modern era of federal authority over flood and navigation control of Mississippi River and major tributaries. 1870s-1910s Remarkable era of innovation, particularly in electrification, transportation, and communications, transforms New Orleans and other American cities. 1884-1885 World’s Industrial and Cotton Centennial Exposition, held at Audubon Park, fails financially but succeeds culturally and accelerates uptown urbanization. 1894 Tulane University relocates uptown, eventually attracting well-educated and
1890s-1900s Steel-frame construction and concrete pilings are introduced; first generation of high-rises erected in CBD and upper French Quarter transforms city’s skyline. 1893-1898 Streetcar lines are electrified throughout city. 1896-1915 World-class drainage system is installed to remove runoff and groundwater in low-lying backswamp; urban development begins to spread toward lake. 1896 Plessy v. Ferguson establishes “separate but equal” legal precedent, entrenching segregation in South for next half-century; public facilities and accommodations in New Orleans are legally segregated by race. 1899-1902 Sicilian-born Vaccaro brothers and Russianborn Samuel Zemurray independently start importing bananas from Central America through New Orleans, advancing city’s long-time domination of tropical fruit industry. 1900s 1900s-1920s Dock Board modernizes port facilities, constructing riverside warehouses, grain elevators, canals, and new dock space. Mayor Martin Behrman oversees important civic improvements, including new drainage, sewerage, and water systems; expansion of city services and public education; and creation of Public Belt Railroad.
1905-1910 New home construction commences in recently platted Lakeview subdivision, drained from marsh only a few years earlier. 1910s-1940s Gentilly is developed on and near Gentilly Ridge topographic feature in Seventh and Eighth wards. 1917 Xavier University founded. Nation’s only black Catholic institution of higher learning reflects New Orleans’ distinct Creole heritage; consistently leads nation in production of African-American scientists and Ph.D.’s. 1918-1923 Dock Board excavates Industrial Canal to connect river and lake, provide shortcut to gulf, and create new private deep-water wharf space. Port activity shifts to Industrial Canal area by mid-1900s. 1920s Association of Commerce Convention and Tourism Bureau promotes New Orleans as tourism destination; modern tourist industry comes into form, with new luxury hotels and first night clubs on Bourbon Street opening. 1926-1934 Ambitious Lakefront Project protects city from storm surges while creating high, scenic acreage for residences, parks, facilities, and airport. Project radically alters city’s geography and accelerates population shift toward Lake Pontchartrain. 1927 Great Mississippi River Flood inundates valley, threatens New Orleans, and inspires controversial (and ultimately unnecessary) dynamiting of levee in lower parishes. Disaster transforms federal river-control policy from “levees-only” to one of massively augmented levees, floodwalls, spillways, control structures, reservoirs,
canals, revetments, and other devices. 1937-1943 Housing Authority of New Orleans clears selected historic neighborhoods to construct subsidized housing projects. 1940 Moisant Airfield is established in Kenner to supplant Lakefront Airport; later becomes Louis Armstrong New Orleans International Airport. 1941-1945 As nation fights World War II, New Orleans serves as major ingress and egress for matériel and troops, base for ships and aircraft, and manufacturing center for Higgins landing craft and a wide range of other armaments. 1940s Federal government encourages development of petrochemical refining capability along River Road. 1946-1961 Mayor de Lesseps “Chep” Morrison oversees post-war modernization of city’s infrastructure, including unification of passenger rail lines into Union Station and new Duncan Plaza civic complex on Loyola Avenue. 1954 Brown v. Board of Education Supreme Court decision reverses 1896 Plessy v. Ferguson ruling on “separate but equal” public schools. City and state drag their feet for six years before slowly and reluctantly commencing integration process. 1954-1962 Old River Control Structure is built to prevent Mississippi from abandoning channel and jumping into Atchafalaya, by allocating flow at government-approved 70-to-30 ratio. 1950s-1960s Containerization technology radically alters port, diminishing labor needs and altering riverfront land
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use while empowering smaller ports like Mobile and Gulfport to compete with New Orleans. 1955 Pontchartrain Park becomes city’s first modern suburban-style subdivision in which black citizens may purchase homes. 1956 Federal Aid Highway Act commences immense effort to build interstate highway system; New Orleans is eventually connected to nation via I-10 and I-610 plus nearby I-12, I-55, and I-59. 1958 First downtown Mississippi River Bridge opens. 1958-1968 Mississippi River-Gulf Outlet Canal excavated in St. Bernard and Plaquemines parishes. “MRGO” gives ocean-going traffic shorter alternate route to Port of New Orleans and helps develop Industrial Canal / Gulf Intracoastal Waterway as new center of port activity. But 75-mile-long waterway also causes coastal erosion and salt-water intrusion, requires constant dredging, and provides storm surge pathway to reach populated areas. 1959 After 107 years at historic Lafayette Square, City Hall relocates to new Duncan Plaza complex. 1960 New Orleans population peaks at 627,525, fifteenth largest American city. 1960-1964 Civil rights movement, court orders, and Civil Rights Act of 1964 hasten end of de jure segregation. City finally passes its own public accommodations ordinances at end of decade. White flight, followed by general middle-class flight, sends New Orleans population into its first decline, which ensues for decades to come. 1960s Oil and gas industry rises; port economy
A view of the Central Business District from New Orleans’ industrial canal. mechanizes. Oil industry brings outside investment and professionals to New Orleans; triggers construction of downtown skyscrapers and “Houstonization” of city. Containerized shipping technology replaces many longshoremen and sailors; requires less waterfront space and frees up riverfront for recreational use. As oil industry rises, port-related employment declines. 1960-1968 Construction of seven major hotels introduces 3000 new rooms into French Quarter; commences era of large-scale tourism and nightly pedestrian-mall carnival on Bourbon Street. Boom precipitates moratorium on any new Quarter hotels, in attempt to balance commercial and residential use. 1963-1972 Coast-to-coast I-10 and affiliated interstates are constructed through New Orleans, including Claiborne Overpass through Faubourg Treme. But additional plan for Riverfront Expressway fronting French Quarter is defeated after intense opposition. 1965 Hurricane Betsy strikes New Orleans region in early September.
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1966 Competition with Houston inspires widening of Poydras Street as showcase corporate corridor. Plan foresees need for major trafficgenerating anchors at each end of Poydras: Rivergate Exhibition Hall (1968) at river end, Superdome (1975) at lake end.
1983-1984 Worldwide oil crash hits city; devastates Gulf Coast and other petroleumbased economies.
1966 Simultaneous erection of International Trade Mart and Plaza Tower, city’s first modern skyscrapers, symbolizes rising oil-related wealth and new piling technology.
1985-1986 New Orleans East land development company, poised to urbanize over 20,000 acres of marsh, fails amid oil bust; area becomes Bayou Savauge National Wildlife Refuge.
1967 Saints NFL franchise brings professional football to New Orleans, making it a “big league city.” 1970 Jazz and Heritage Festival is held at present-day Congo Square; soon grows into flagship event in city’s cultural economy.
1984 Louisiana World Exposition fails financially but helps spark economic development in Warehouse District and reintroduces citizens to riverfront.
Mid 1990s-early 2000s Tourist and service economy replaces port and oil as lead job producer. Hotel capacity skyrockets to 37,000 rooms, accommodating ten million annual visitors. 2000s
1975 Louisiana Superdome is completed, transforming skyline and breathing new life into CBD.
2000 New Orleans population declines to 484,674, thirtyfirst largest city in nation.
1976 Promenade “Moonwalk” opens on French Quarter riverfront; signifies change from port activity to recreation, as containerization and Industrial Canal docks relocate shipping facilities off Mississippi.
Early 2000s Federal government’s HOPE program seeks to end concentration of poverty in isolated public-housing projects by replacing them with New Urbanism-inspired settings,
while integrating poor families paying subsidized rents with modest-income families paying market rates. St. Thomas Development is first to undergo experiment. 2003 Tourists spend over $4B annually in Orleans Parish, generating over 61,000 jobs. Visitors to New Orleans account for 44 percent of state’s tourism economy. 2004 New Orleans, population 462,269, is now home to 35 percent of seven-parish metro-area population, down from 80 percent a century earlier. 2004 Major new containerized shipping facility at Napoleon Avenue wharf, coupled with environmental problems on MR-GO and bottleneck lock on Industrial Canal, returns river to position of prominence in local port industry. August 29, 2005 Hurricane Katrina strikes region; surge ruptures federal levees and floodwalls at multiple points, leading to catastrophic flooding of eighty percent of urbanized East Bank. Over 1500 people eventually perish; nearly entire city population is displaced for weeks and months, some for years. 2006-2007 City’s population, reduced from about 455,000 in July 2005 to a few thousand after Katrina, climbs back to 200,000, then to 300,000 range. 2006-2012 Louisiana “Road Home” Program offers $150,000 per flooded homeowner, minus insurance settlements and FEMA grants. Homeowners suffering greater than 50 percent damage opt to (1) repair or rebuild in place; (2) sell to state and purchase another home in Louisiana; or (3) sell to state and choose not to remain
a homeowner in Louisiana. Complex transactions were mostly completed by 2011; today, lots that were bought out by state and held in Louisiana Land Trust (LLT) are being transferred to New Orleans Redevelopment Authority (NORA), which is currently returning them to citizen ownership through auctions, Lot Next Door programs, and park space. 2006-Present First wave of early-career professionals move to New Orleans in the low thousands, to participate in the recovery; so-called “brain gain” (or “YURPS”— young urban rebuilding professionals) is replaced around 2008-2009 with second wave of newcomers in the digital, finance, media, entertainment, and cultural economy, many of whom have long-term plans for the city. 2007-2012 Army Corps builds $15B worth of improvements to ensure protection from storms with 1-percent chance of occurring in any given year. “Hundred-year protection plan” entails gating of outfall and navigation canals, barricading GIWW/MRGO funnel with Netherlands-style barrier, raising of existing levee heights to account for rising seas and subsidence, constructing new levees, installing new pumping stations, and reinforcing weak spots in existing floodwalls and levees. Completed June 2012. 2008 Hurricane Gustav gives region first post-Katrina test of rebuilt levees, improved evacuation system, and first-responder capabilities, and comes out with mostly successful results. 2008-2012 B. W. Cooper, C. J. Peete, St. Bernard, and Lafitte housing projects are
demolished and prepared for mixed-income redevelopment. New developments reflecting New Urbanist design sensibilities are now nearly complete and taking in tenants and homeowners, some paying subsidized rates, others market rates. 2008-Ongoing New Orleans proves remarkably resistant to nationwide real estate bust and ensuing Great Recession; local employment rates have remained consistently well below national average, and housing values have seen none of the declines of those markets that boomed previously. 2009-Ongoing Amid years of planning and civic debate, site is cleared for new University Medical Center and Veterans Affairs Hospital, appending to existing Tulane Avenue medical district. Area promises to become bioinnovation district as well as health-care mecca for South. 2010 New Orleans Saints’ Super Bowl victory brings civic spirit to an apex; public exalts in citywide cultural and economic renaissance only five years after catastrophe. 2010 U.S. Census enumerates 343,892 residents of New Orleans proper. After adjusting for 2011-2012 growth, city now has roughly 100,000 fewer people than in July 2005 but nearly double the population of July 2006.
highly trained existing workforce and good river, canal, and interstate access. 2012 Louisiana becomes third most-productive state for film industry, following much bigger California and New York, thanks to 2002 tax credit. Boom movie and television filming has dovetailed into parallel growth of digital media, software, and entertainment sector. Bountiful office space and infrastructure built during oil and gas real estate boom of 1970s-early 1980s leaves space for new industries, such as the old Chevron Building which now hosts the Receivables Exchange and several start-up and emerging tech firms. TO BE CONTINUED
RICHARD CAMPANELLA, a geographer with the Tulane School of Architecture, is the author of “Bienville’s Dilemma,” “Geographies of New Orleans,” “Lincoln in New Orleans,” and other books. The only two-time winner of the Louisiana Endowment for the Humanities Book of the Year Award, Campanella has also received the Williams Prize for Louisiana History, the Tulane Mortar Board Award for Excellence in Teaching, and the Monroe Fellowship from Tulane’s New Orleans Center for the Gulf South. He can be reached through richcampanella.com.
2011 Shipbuilding operations at Avondale and Space Shuttle-components manufacturing at NASA Michoud Assembly Facility enter conversion phase as old contracts expire. Both megastructures, located at opposite ends of metropolis, bring to bear turn-key opportunities for industrial tenants with
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LIFESTYLE
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New Orleans is well known for its diverse culture, unique traditions and distinctive food and architecture.
M
ardi Gras, The New Orleans Jazz and Heritage Festival, and ESSENCE Music Festival® are world-renowned and many other festivals fill the calendar throughout the year celebrating food, music and neighborhoods. The food choices in New Orleans also continue to diversify and expand with more restaurants existing in New Orleans than ever before. While the traditional Cajun and Creole cuisine is still the dish dujour, many other restaurants have opened providing a mix of regional and ethnic menus as well. Most communities worry about losing their unique quality of life, but New Orleans continues to nurture and preserve its history and culture. With hundreds of theatre, art, live music, sports, festivals, and recreational events each year, life in New Orleans is a perpetual celebration. CLIMATE New Orleans’ climate is subtropical and humid, featuring mild winters, warm summers, and overall pleasant temperatures year-round. Spring is a remarkable season for its warm days and cool evenings. Many of New Orleans most well-known cultural events and festivals occur during this season thanks to the fine weather. Summer months in New Orleans are very warm, with temperatures averaging in the 90’s. Rainfall provides a respite from the heat, and the summer months are the wettest in New Orleans with an average of 6 inches of rain falling each month.
PERFORMING ARTS & MUSIC VENUES: Louisiana Philharmonic Orchestra Joy Theater Mahalia Jackson Theater Preservation Hall UNO Lakefront Arena New Orleans Arena House of Blues Tipitina’s Mercedes Benz Superdome MUSEUMS & ARTS: Louisiana Children’s Museum Louisiana State Museum National World War II Museum New Orleans African American Museum New Orleans Museum of Art Ogden Museum of Southern Art Art for Art’s Sake Contemporary Arts Center New Orleans EVENTS & FESTIVALS: Allstate Sugar Bowl Bayou Classic Creole Tomato Festival Crescent City Blues Festival ESSENCE Music Festival® French Quarter Festival Mardi Gras New Orleans Jazz & Heritage Festival Oak Street Festival Satchmo Summerfest Tales of the Cocktail Voodoo Music Experience White Linen Night 2013 Super Bowl 2014 NBA All Star Game
Fall months are drier and cooler. A fantastic time of year to enjoy outdoor activities, festivals, and the beginning of Football season. Winters in New Orleans are cool but mild, where temperatures rarely drop to freezing. Snow is a rarity in New Orleans, with frosts occurring mostly in the first few months of the year. Avgerage Avgerage Avgerage Percent Sunshine High Low Rain Winter Spring Summer Fall
63oF 79oF 90oF 70oF
43oF 59oF 73oF 50oF
4.9 4.5 6.0 4.1
49 65 63 62
Courtesy of NOCVB
CRIME As with any major urban city, crime reduction is a huge priority. While New Orleans has a lower than average violent crime rate for large cities, City officials are tackling the specific issue of murder under the banner of “NOLA for Life,” a comprehensive murder reduction strategy which entails 31 distinct programs geared towards resolving the many root causes of this trend. The NOLA for Life plan includes five simple pillars: stop the shooting; invest in prevention programs; promoting jobs and opportunities; improving the New Orleans Police Department; and getting the community involved to help and to rebuild neighborhoods.
13
L I F E S T Y L E // E D U C AT I O N
NEW ORLEANS SCHOOLS ARE AT THE TOP OF THEIR CLASS PRIMARY AND SECONDARY EDUCATION Touted nationally by education advocates nationwide as a laboratory for innovation, the New Orleans school system has undergone a transformation unlike any other urban district in the country. In most school districts, school choice is not an option; by contrast, New Orleans citywide school choice is nearly universal. As nearly all of the city’s attendance zones have been eliminated, parents may now apply to a school or multiple schools that best suit their child’s needs. New Orleans offers one of the nation’s most promising models for sweeping education improvement via an ecosystem of primary and secondary schools and a network of supporting nonprofits. Currently, the New Orleans school system includes 125 schools: 23 traditional public, 46 charters and 56 private. Studies have shown that student performance has sharply increased in New Orleans schools since 2005. School performance in New Orleans increased by 18.5 percent from 2005 to 2010, outpacing the overall state gain by two to one. Even New Orleans schools with the poorest records showed significant gains. In 2006, just 23 percent of New Orleans students in the state-run Recovery School District performed at a level considered basic or above. By 2011,
123 NUMBER OF SCHOOLS New Orleans School System
44,000 NUMBER OF UNDERGRADUATE APPLICATIONS FOR ADMISSION, 2010
Tulane University received the highest volume of applications of any university in the nation
94 PERCENTAGE OF GRADUATING SENIORS New Orleans School System
that performance increased to 47 percent. From 2007–11, New Orleans RSD charter schools more than doubled the percentage of all tests passed by their students—from 23 percent to 48 percent.1 Critical educational improvements have occurred in New Orleans high schools in recent years; in 2011 94% of seniors graduated—a 4 percentage point increase from 2010 and 15 points from 2005. One of the key goals of K-12 education is to give students the educational foundation they need to be college or career ready. In Louisiana, a good benchmark to measure this preparedness is what percent of students qualify for TOPS, a program that provides two- and four-year merit-based scholarships to Louisiana public colleges and universities. The percent of Orleans Parish public school students eligible for TOPS scholarships (two- or four-year) has grown from 24.9% in 2005 to 37.2% for last years’ graduates – a gain of 12.3 percentage points. During this same time, the state average grew only 5.2 percentage points, from 37.3% in 2005 to 42.5% in 2011.2 Overall K-12 education in New Orleans is on a steep upward trajectory thanks to the infusion of innovative teaching techniques and a consistent focus on improvements. National foundations and education-focused nonprofits are taking notice and investing in New Orleans
Scott S. Cowen Institute for Public Education Initiatives at Tulane University, “Transforming Public Education in New Orleans: The Recovery School District 2003-2011.”
1
Statistics courtesy of Educate Now!
2
14 neworleansnewopportunities
schools. New Schools for New Orleans, Teach for America and New Leaders for New Schools have all received significant grant funding to expand their work in New Orleans. Programming includes new school incubation, educator recruitment services and educator training. HIGHER EDUCATION There are nine colleges and universities in Orleans Parish. A number of these schools are nationally recognized for their outstanding graduate and undergraduate programs. In 2010 Tulane University received 44,000 applications for admission—more than any other private college in the country. Xavier University regularly ranks first in the nation in placing African American students into medical school as well as first in awarding African Americans baccalaureate degrees in the physical sciences. Additionally, the Loyola University College of Business has been recognized as one of the nation’s best business schools by The Princeton Review. Each year, graduates from these schools join the local workforce. In addition to great business and academic programs, some schools feature special training programs in high-growth industries such as shipping and advanced manufacturing.
DELGADO COMMUNITY COLLEGE Delgado Community College’s Workforce Development and Education Unit provides local employers with a way to retrain, advance, and attract talented professionals, through their continuing education courses and Incumbent Worker Training Program. Total Enrollment: 18,767 Rankings: Delgado and the LTC Region 1 combined enrollments make them the largest provider of workforce training with more than 9,500 individuals receiving services. (Source: Delgado Community College website).
DILLARD UNIVERSITY Dillard University is a private four-year historically black liberal arts college located in the Gentilly area of New Orleans. Dillard University is made up of four academic schools, including General Studies, Arts and Sciences, Professional Studies and Business. Total Enrollment: 1,187 Rankings: 25th- Liberal Arts Colleges–Washington Monthly 2011 9th- Historically Black Colleges and Universities–U.S. News (Source: Dillard University website).
LOUISIANA SOUTHERN UNIVERSITY HEALTH SCIENCES The Louisiana Southern University Health Sciences center consists of six schools of medical practice, which include: Allied Health Professions, Dentistry, Graduate Studies, Medicine, Nursing, and Public Health. Rankings: LSU Health Sciences operates the only Level 1 Trauma Center in New Orleans. (Source: LSU Health Sciences website).
LOYOLA UNIVERSITY Loyola University is a Jesuit college located in the Uptown area of New Orleans. The University is made up of five colleges focusing on Business, Humanities and Natural Sciences, Law, Music and Fine Arts, Social Sciences Total Undergraduate Enrollment: 2,965
Total Graduate Enrollment: 2,017 Total Enrollment: 4,982 Rankings: Ranked #26 by Washington Monthly as a Top College That Gives Back To Communities in 2011 The College of Law moot court program was ranked one of the top 10 advocacy programs in the country in the September 2011 edition of The National Jurist. Princeton Review ranked the College of Business among the nation’s Best Business Schools for 2012. (Source: Loyola University website).
OUR LADY OF HOLY CROSS COLLEGE Our Lady of Holy Cross College is a regionally accredited 4 year institution located in Algiers on the west bank of the Mississippi River. Total Undergraduate Enrollment: 997 Total Graduate Enrollment: 263 Total Enrollment: 1,260 (Source: Our Lady of Holy Cross College website).
SOUTHERN UNIVERSITY AT NEW ORLEANS The Southern University at New Orleans is a historically black public four-year undergraduate and graduate university. Total Undergraduate Enrollment: 2,590 Total Graduate Enrollment: 575 Total Enrollment: 3,165 Rankings: #159- 2008 Best Social Work Grad School U.S. News (Source: Southern University at New Orleans website).
TULANE UNIVERSITY Tulane University is a prestigious private research university located in the Uptown area of New Orleans. Schools and colleges include: School of Architecture, A.B. Freeman School of Business, School of Continuing Studies, School of Law, School of Liberal Arts, NewcombTulane College, School of
Public Health and Tropical Medicine, School of Science and Engineering, School of Social Work. Total Undergraduate Enrollment: 8,388 Total Graduate Enrollment: 5,021 Total Enrollment: 13,359 Rankings: 50th- U.S. News & World Report America’s Best Colleges 2012 14th- A.B. Freeman School of Business Princeton Review Top Graduate Programs for Entrepreneurs 30th- Bloomberg Business Week Ranks the MBA program 30th in the nation 32nd overall and 17th among private universities in income received through technology transfers. (Source: Tulane University website).
UNIVERSITY OF NEW ORLEANS The University of New Orleans (UNO) is a 195 acre research university located on the south shore of Lake Pontchartrain. Schools and colleges include: College of Business Administration, College of Education and Human Development, College of Engineering, College of Liberal Arts, College of Sciences, Graduate School and Continuing Education. Total Undergrad Enrollment: 8,263 Total Graduate Enrollment: 2,640 Total Enrollment: 10,903 (Source: University of New Orleans website).
XAVIER UNIVERSITY Xavier University is a private liberal arts college located in New Orleans. The university is recognized for its programs in the fields of physics, biology & life sciences, and physical sciences. Total Enrollment: 3,391 Rankings: 5th- Historically Black Colleges and Universities Top three producers in the nation of African Americans with Doctor of Pharmacy degrees. (Source: Xavier University website).
15
F L O O D P R O T E C T I O N I N FA S T R U C T U R E
T
he flooding of New Orleans following Hurricane Katrina resulted not from the storm itself, but from an outdated levee system that failed to keep high water at bay. The 2005 catastrophe caused local, state and federal officials to launch a levee system project providing New Orleans with unprecedented protection. In response, New Orleans immediately tapped the brightest minds in engineering and implemented a $15B Hurricane and Storm Damage Risk Reduction System project which includes 350 miles of flood walls as well as outfall canals, pump stations and storm proofing. To complete this project, $165M was spent for a barrier across the shipping canal that links Lake Pontchartrain, the Mississippi River and
16 neworleansnewopportunities
100 YEAR FLOOD PLAIN PROTECTION SINCE JUNE 2012 New Orleans
350 MILES OF FLOOD WALLS New Orleans
the Gulf Intracoastal Waterway. The $1B West Closure complex features the largest drainage pump station in the world; two lift gates were constructed that can be lowered to block the waters of Lake Pontchartrain as well as a massive navigation gate whose curved sides weigh 220 tons apiece that can be swung into place. Also the Inner Harbor Navigation Canal Surge Barrier was constructed, the largest surge barrier of its kind in the world with the largest continuous placement of concrete since construction of the Hoover Dam. These projects are now substantially complete and 100% of the New Orleans Metro region has had 100-year flood plain protection since June 2012.
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A B O U T // NEW ORLEANS BUSINESS ALLIANCE
Our mission is to unite a diverse community of stakeholders to catalyze job growth, create wealth, and build an equitable and sustainable economic future for the new New Orleans. ECONOMIC DEVELOPMENT TACTICS
CORPORATE RELOCATION
Attraction
Job Creation Increased Wages Industry Diversification
BUSINESS RETENTION & EXPANSION
Keeping and Growing Jobs
Industry Stability Corporate Commitment
Cluster Development
Lifestyle Amenities Sales Tax Growth Value Chain Solidified
NICHE OPPORTUNITIES (Retail & NODE)
18 neworleansnewopportunities
ECONOMIC DEVELOPMENT ECOSYSTEM VARIOUS FEDERAL DEPARTMENTS/ AGENCIES
FEDERAL
LED
STATE
Incentives State-level Marketing
GNO INC.
REGIONAL MAYOR LANDRIEU Spokesperson Deal Closing
LOCAL
NEW ORLEANS BUSINESS ALLIANCE
CITY OF NEW ORLEANS Regulations Licenses & Permits Incentives
As the City’s official economic development partnership, and the hub of the New Orleans business community, the New Orleans Business Alliance can help inform, educate, and inspire you to take advantage of all that the new New Orleans has to offer. The New Orleans Business Alliance was created to lead the charge in this new business environment: a place abundant with new ideas, creativity, profitability and growth. Working with local leaders in business and politics, the New Orleans Business Alliance strives to integrate all business activities, large and small, into a network with an open
External Marketing Prospect ID & Recruitment Public Policy Retention (w/NOLA BA)
Strategic Planning Business Retention & Expansion Corporate Relocation Retail Attraction Prospect Management
The question is no longer why do business in New Orleans, but why not?
OTHER ED PARTNERS SUCH AS ...
Entergy DDD WTC Port of New Orleans Michoud Assembly Facility
invitation to join. The global economy presents us with new opportunities, and New Orleans is well-poised to take advantage. With the collaboration of our partners, we seek to promote and grow local businesses and provide them with the resources to expand and compete regionally, nationally, and globally. New Orleans has always had an approachable, creative and dynamic identity. It is this creative capital that is now viewed as a core asset that no amount of invested capital can replicate. It is the recognition of New Orleans’ innate competitive advantage that has changed the conversation.
19
The New Orleans Multicultural Tourism Network is a proud sponsor of the 2012 New Orleans New Opportunities Guidebook.
www.soulofneworleans.com
RESTORE PROPERTIES RESTORE PROPERTIES RESTORE PROPERTIES TO COMMERCETO COMMERCE TO COMMERCE
NORA empowers residents and developers to residents and developers to NORA empowers
vibrancy to formerly blightedvibrancy properties. NORArestore empowers residents and developers to restore vibrancy to properties. restore to formerly blighted The Lot Next Door program enables residents The Lot Next Doorprogram programenables enables residents formerly blighted properties. The Lot Next Door to buy and beautify adjacenttovacant properties, buy and beautify adjacent vacant properties, residents buy auctions and beautify adjacent vacant properties, while public while topublic and agreements withauctions while public and agreements with auctions and agreements with developers spur and restoration developers spur the construction and restoration developers spur the the construction construction and of housing and commercial properties. restoration of housing and commercial properties. of housing and commercial properties.
LOT NEXT DOOR +
LOT NEXT DOOR +
properties
properties
1,000
FO SA R LE
1,000
INDIVIDUAL SALE +
properties
properties
550
DEVELOPMENT +
450
DEVELOPMENT LOT NEXT DOOR +
+ TOTAL PROPERTIES: TOTAL PROPERTIES: since 2006
20 neworleansnewopportunities
0
450
1
2 MILES
550
properties
2,000
Sold to Individuals
Sold to Developers
Sold to Developers
Sold through Lot Next Door
INDIVIDUAL SALE + FO SA R LE
Sold to Individuals
UPDATED 6/2012
INDIVIDUAL LOT NEXT DOOR SALE
DEVELOPMENT INDIVIDUAL SALE
properties
2,000+ since 2006
Waggonner & Ball Architects; Integrated Water Management Strategy Waggonner & Ball Architects; Integrated Water Management Strategy
Sold through Lot Next Door 0
1
2 MILES
UPDATED 6/2012
DEVELOPMENT
I N D U S T RY P R O F I L E S
21
R E A L E S TAT E
22 neworleansnewopportunities
Immediately after Hurricane Katrina, New Orleans leaders realized that the storm’s devastation had left New Orleans many critical problems to solve—and a rare opportunity—the opportunity to reinvent a historic city.
The city has experienced record tourism and repopulation since 2005.
“
H
ow could New Orleans position itself to enter the 21st century? Could the City maintain its legacy of success with tourism, manufacturing and trade and logistics while creating innovative, fresh strategies and opportunities to revitalize its economy? The real estate community has answered these questions with a resounding “yes,” and has generated a robust pipeline of industrial, commercial and retail projects throughout the city. Demographic shifts and the need to rebuild are catalyzing new developments in New Orleans. The city has experienced record tourism and repopulation since 2005. Often recognized by national media for its influx of educated, young professionals, New Orleans has become a fertile environment for new business investment and the expansion of existing industries. This rapid growth has created a tremendous need along many of the City’s corridors for commercial redevelopment.
“
For example, New Orleans annually experiences over $400M in retail sales leakage.1 These trends have positioned New Orleans as a target market for national retailers. Some retailers will be opening in the city for the first time, and local and national developers are taking note of the shortage of shopping centers and evaluating the possibilities for new developments. Diverse commercial and industrial redevelopment opportunities exist throughout the city, as well. Downtown New Orleans is a locus for biosciences, arts & entertainment and an emerging digital and technology sector. Readily available space for industrial development is largely concentrated in New Orleans East; and the city offers unparalleled access to transportation and manufacturing infrastructure. The following is an overview of the diverse real estate tenant and redevelopment opportunities.
City of New Orleans Neighborhood Market Drilldown – Catalyzing Business Investment in Inner-City Neighborhoods, presented by Social Compact & the O.C. Haley Boulevard Merchants and Business Association, May 2010, 1
23
R E A L E S TAT E // PRIORITY INVESTMENT AREAS
ALGIERS ALGIERS FEATURES: n Proximity to city center nS table, affluent neighborhoods n Traffic count of over 107,000 cars per day on General DeGaulle n Algiers Point Historic District n $22M overhaul of storm drainage system
Algiers is one of the oldest neighborhoods in New Orleans. As an alternative to the traditional commuter via the Mississippi River Bridge, the Algiers ferry provides easy access to the Central Business District and the French Quarter. The excellent golf courses, new soccer fields, proximity to the River, as well as the expanded system of bike trails make Algiers a community designed for living, working and playing. With family-friendly residential neighborhoods, historic buildings, bustling commercial corridors and quality schools, Algiers is an emerging market with retail and office development opportunities in areas such as the General DeGaulle corridor (Algiers Plaza, Azalea Plaza, Woodland Drive) and Federal City (a mixed use redevelopment project). ALGIERS AT A GLANCE TRADE AREA: 32.1 SQ. MI
Algiers Point Historic District
0–3 miles
0–5 miles
POPULATION
87,401
107,903
256,932
MEDIAN AGE
37.2
37.3
37.1
HOUSEHOLDS (HH)
35,150
44,758
110,412
AVERAGE HH SIZE
2.5
2.4
2.3
AV. HH INCOME
$62,392
$56,715
$56,400
OPPORTUNTIES IN ALGIERS n Federal City is a 155-acre redevelopment of the former Naval Support Center. It will be a
mixed used development consisting of over 375,000 s.f. of retail space, as well as office, civil/municipal buildings, hotels and residential units. The nearly 3,000 military jobs created in the first phase of the project are expected to grow to approximately 10,000 federal and civilian jobs in later phases.
n Algiers Point is designated an Historic District and it offers excellent opportunities for boutique
retail and restaurants. Its location at the base of the ferry terminal makes it a favorite shopping and dining destination for both local residents and tourists.
COMMUNITY IMPROVEMENTS Algiers Plaza
NEW ORLEANS R E A L E S TAT E VA L U E S
n General DeGaulle Street Improvements: The $22M overhaul of the drainage system along General DeGaulle, scheduled to be completed in summer 2012, will alleviate future flooding issues. The completion of the project will make this popular commercial corridor an even more desirable shopping destination for local residents.
PROPERTY TYPE
AVG. VALUE
Commercial Class A
$16.32 s.f. leased
Commercial Class B
$14.69 s.f. leased
Retail
$8.40 s.f. leased
Industrial
$4.05 s.f. leased
Residential
$179,000 sales
Source: New Orleans City Business
24 neworleansnewopportunities
CENTRAL BUSINESS DISTRICT (CBD) / DOWNTOWN NEW ORLEANS The CBD is the center of commerce for New Orleans, as well as the main economic hub for the region. Tourism has reached record breaking numbers and businesses are pursuing opportunities to set up shop in the area. An influx of well-educated young professionals moving into the CBD ensures the new condo and apartment conversions are leased before the paint is dry. The New Orleans Arena, the Ernest N. Morial Convention Center and the recently rebranded Mercedes Benz Superdome are often filled to capacity as the city hosts a continuous stream of sporting events and conventions. The city is already gearing up to host Super Bowl 2013. Prime retail opportunities have opened along Canal Street and the South Market District and 1031 Canal will provide exciting new shopping destinations. CENTRAL BUSINESS DISTRICT AT A GLANCE: TRADE AREA: 1.1 SQ. MI
0-3 miles
0-5 miles
POPULATION
2,844
173,318
340,971
MEDIAN AGE
39.6
37
37.2
HOUSEHOLDS (HH)
1,740
80,637
152,945
AVERAGE HH SIZE
1.4
2
2.1
AV. HH INCOME
$71,128
$60, 306
$65,125
CBD FEATURES: n Estimated daytime population of 120,000 n 8.75 million tourists who spent $5.49B in 2011 n Annual events such as Mardi Gras, French Quarter Fest, ESSENCE Music Festival® n Professional sports teams: Saints Football, Hornets Basketball n Primary location for high rise offices, with approximately 28 million s.f. of office space1
S P O T L I G H T CBD / DOWNTOWN NEW ORLEANS CANAL STREET // Canal Street is the quintessential example of New Orleans’ commitment to entering the 21st century
with style and business savvy, embracing the future while celebrating the past. The historic theater district and Canal Street retail corridor were devastated by flood waters and then largely ignored for redevelopment as retailers moved to the suburbs. By employing Smart Growth principles of mixed use development, Canal Street is resurrecting itself as one of the City’s most vibrant areas.
1031 CANAL RETAIL PROJECT // The former Woolworth’s building at 1031 Canal is being redeveloped as a 19 story, mixed-
use project that will bring over 80,000 s.f. of retail shops and dining to Canal Street adjacent to the Theater District. The location at the intersection of two of the city’s busiest streetcar lines will provide easy access for shoppers citywide. The proximity to the Saint and Ritz Carlton hotels, as well as the French Quarter and CBD will make it a convenient shopping destination. The property will include 280 apartments and condominiums on the upper levels as well as two (2) levels of self-contained parking. The development is projected to open in early 2014.
SOUTH MARKET DISTRICT // South Market District is a five block transit-oriented project located in the heart of New Orleans’
Central Business District. The project boasts a pedestrian-friendly thorough-fare on historic Girod Street that will include more than 218,000 s.f. of retail, 559 apartments and 1,124 parking spaces. A strong incentive for this growth has been the streetcar expansion up Loyola Avenue to the Union Passenger Terminal. In addition to the installation of the streetcar line, a major reconfiguration of the Union Passenger Terminal is underway, putting the South Market District directly adjacent to the city’s most important transit hub. Over $500M of new development and transportation connections have been completed or are in process.
Source: 2011 New Orleans City Business “Real Estate Trends”
1
25
R E A L E S TAT E // PRIORITY INVESTMENT AREAS
CENTRAL BUSINESS DISTRICT (CBD) / DOWNTOWN NEW ORLEANS cont. RECENT PROJECTS (COMPLETED AND UNDERWAY): n The Joy Theatre: One of four historic theaters in downtown New Orleans, it has reopened after a $5M renovation as a live music and entertainment venue hosting private events.
n Saenger Theatre: The former flagship of the Saenger Theater chain is eagerly anticipated to re-open for the 2012-2013 Broadway season in New Orleans.
n Saint Hotel: Built in 1909 and closed since 1997, this building received a $45M makeover as a
boutique luxury hotel with 166 rooms and a restaurant created by Coquette’s Michael Stoltzfus. It was named one of the world’s best new hotels in 2011 by Conde Nast Traveler magazine. The Joy Theatre
n Krauss Building: 1201 Canal housed department stores for more than 90 years until it closed in 1997. It underwent a $60M renovation to reopen as luxury condominiums.
n The Exchange Centre: This newly renovated office building features state of the art facilities such as a fiber optic network and on site secure data center. It is home to the New Orleans Business Alliance.
n Benson Tower: Another newly renovated office building located next door to the Mercedes-Benz Superdome, Benson Tower counts over 50 state government agencies as office tenants.
n BioInnovation Center: This 66,000 s.f. state of the art facility featuring wet labs, office and
conference space is designed to incubate leading scientists and engineers as they commercialize their research.
OPPORTUNITIES: n 1100 Tulane Avenue: 110,000 s.f. commercial office redevelopment opportunity in the CBD located along the new Tulane Avenue streetcar line.
n 234 Loyola Avenue: 120,000 s.f. commercial office redevelopment opportunity in the CBD located BioInnovation Center
adjacent to the Tulane Avenue streetcar line.
n The Galvez Research Neighborhood: This development will provide amenities and housing
options to those who work in the adjacent VA and University Medical Center complexes of the BioDistrict. In addition to housing, research and development businesses will be encouraged to open and expand in the neighborhood.
n Tulane Avenue: Tulane Avenue is slated for major public investment in the form of streetscape improvements and university expansions that integrate with the urban fabric, and plans for mixed-use with ground-floor retail.
n BioDistrict Canal Street: In addition to the BioInnovation Center, Canal Street hosts the Tulane
School of Tropical Medicine. The street also has multiple properties available for sale and lease.
n 2475 Canal Street: Vacant land totaling 42,074 s.f. zoned for commercial development. Owner will 1031 Canal Street
26 neworleansnewopportunities
consider a joint venture with a developer/owner.
NEW ORLEANS EAST New Orleans East is a neighborhood experiencing significant growth since Hurricane Katrina. This community offers large tracts of land available for development plus vacant buildings ready for renovation and leasing. Opportunities exist for retail, office, industrial and residential real estate development along major corridors. Close proximity to economic drivers such as the Michoud Assembly Facility and spacious suburban neighborhoods may support office space/parks and retail to the area. Public and private investments in New Orleans East of over $3.2B are positioning the area for rapid growth and development. Enhanced community assets such as new parks and libraries serve as catalysts for continued real estate development in the area. NEW ORLEANS EAST AT A GLANCE: TRADE AREA: 27.1 SQ. MI
0–3 miles
0–5 miles
POPULATION
66,720
57,947
78,529
MEDIAN AGE
35.7
35.8
35.7
HOUSEHOLDS (HH)
25,233
22,186
29,952
AVERAGE HH SIZE
2.6
2.6
2.6
AV. HH INCOME
$46,100
$46,554
$46,529
NEW ORLEANS EAST FEATURES: n Vacant retail, office, industrial, and residential sites n High visibility and easy access from I-10 n Army Corp Flood Protection: recently completed $15B system of flood protection including floodgate, levees, and new pump stations n New Hospital: $40M – City has purchased and plans to renovate former Methodist Hospital n Public Belt Railroad Rail Improvement: $6M –Track rebuilt to handle more rail traffic
OPPORTUNITIES (BY CORRIDOR): n Crowder Boulevard: Features a mid-size vacant shopping strip, and has the capacity to support big box retail. Access to I-10 makes retail opportunities more attractive. Office space is also available for redevelopment and leasing.
n Lake Forest Boulevard/Plaza Drive: Large parcels are available which support several redevelopment types and have the capacity to support big box retail and offices. There have been significant infrastructure improvements to the corridor including improved roads and streetscapes. n Read Boulevard: This corridor is undergoing a transformation thanks to public investment in projects such as a new library; the Joe Brown Park sports complex which is an $18M project co-sponsored by Nike, the Brees Dream Foundation, AllState and the City of New Orleans; and a new hospital complex. Land is available for development, especially retail.
East New Orleans Regional Branch Library
n Bullard Avenue: Located along I-10, this corridor is a focal point for a variety of new retail projects including a Walmart Supercenter. Over 175,000 s.f. in vacant big box locations is readily available for redevelopment and leasing.
n Almonaster-Michoud Corridor: Created in 1979 by the Louisiana Legislature as an industrial
park to attract business and industry into the City of New Orleans, this area is home to several industrial and manufacturing firms, such as Folgers, who recently invested $70M in expanding its facilities, and Textron Marine.
n Six Flags Site: The former Jazzland/Six Flags theme park site is presently being evaluated for redevelopment as an upscale outlet center with a theme park component. Current plans also include hotels, athletic fields and a music venue that will become a “super regional draw.”
NASA
27
R E A L E S TAT E // RETAIL ATTRACTION
28 neworleansnewopportunities
MAJOR SHOPPING MALLS Shops at Canal Street: One of New Orleans’ most sophisticated shopping destinations, the Shops at Canal Street is within walking distance to the French Quarter, hotels and attractions including the Convention Center, Aquarium of the Americas and Harrah’s Casino. Retailers include: Saks Fifth Avenue, Ann Taylor, Anthropologie, Banana Republic, BCBGMAXAZRIA, Coach, Francesca’s Collections, French Sole, Georgiou, J. Crew, Brooks Brothers, L’Occitane, Michael Kors, and White House Black Market. Riverwalk Marketplace: A uniquely scenic shopping center and entertainment destination situated along the Mississippi River featuring a mix of local and national retail tenants such as the Gap, Ann Taylor Loft, Chico’s and Foot Locker. Ownership is currently evaluating the opportunity for a muli-million dollar upgrade to the shopping center. RETAIL OPPORTUNITIES: 1031 Canal: A 19-story, $70M mixed-use project that includes 307 apartments, 486 parking spaces, up to 80,000 s.f. of retail and restaurant spaces.
RECENT WIN NEW ERA //
The international headwear and apparel retailer, best known as the manufacturer of the official on-field cap for Major League Baseball (MLB) and official licensee for National Football League (NFL) headwear, has joined the retail surge along Canal Street and will open in time for New Orleans’ 2013 Super Bowl.
South Market District
South Market District: This $185M development includes residential apartments and over 120,000 s.f. of retail space available for lease. Algiers Plaza is the former Village Aurora shopping center being redeveloped into a 250,000 s.f. regional center bringing the popular Ross Dress for Less to Orleans Parish. The Winn Dixie anchor will be undergoing a major remodel and the new center will include Petco, Burke’s Outlet and Office Depot. Notable retail attraction opportunities located throughout the other five neighborhoods within the City position New Orleans for significant retail development. The neighborhoods include the French Quarter, Gentilly, Bywater / Marigny / Lower 9th Ward, Lake Area, Mid-City and Uptown.
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R E A L E S TAT E // RETAIL ATTRACTION
F R E N C H Q U A RT E R Dynamic and picturesque, the French Quarter is the oldest settlement in New Orleans and is central to the history and culture of the city. Home to New Orleans’ best-known restaurants, attractions, and events the French Quarter is a national treasure filled with vibrant retail activity and beautiful scenery year round. The “Quarter” enjoys a prominent status as the “must see” and shop area of New Orleans. As an established Historic District, the French Quarter’s architecture is a protected asset—providing retailers the opportunity to occupy buildings of great historic and visual interest. With record setting tourism focused on the French Quarter, it has become a magnet for upscale boutiques, art galleries and entertainment venues. FRENCH QUARTER AT A GLANCE TRADE AREA: 0.05 SQ. MI
0–3 miles
0–5 miles
POPULATION
4,059
153,169
330,574
MEDIAN AGE
36.9
37
37.1
HOUSEHOLDS (HH)
2,980
71,261
147,966
AVERAGE HH SIZE
2.1
2
2.1
AV. HH INCOME
$87,962
$51,374
$65,554
FRENCH QUARTER FEATURES: n Established in 1718, the French Quarter is a national Historic landmark n The French Quarter’s 4,000 permanent residents earn an average household income of $87,962 n A pedestrian-friendly environment: 43% of French Quarter residents walk to work n The main attraction for over 8 million visitors annually who spend well over $5B every year
G E N T I L LY The Gentilly neighborhood is becoming a magnet for new retail. As one of the areas hardest hit by Katrina, the Gentilly residents are rebuilding and reinventing themselves as a “go to” area for shopping. Gentilly is home to several educational institutions including the University of New Orleans, which was recently ranked 17th most popular University in the United States and has an enrollment of over 10,000 students. An additional 5,000 students are enrolled at nearby Dillard University and Southern University at New Orleans. The primary retail corridors of Gentilly Boulevard, Elysian Fields Avenue, St. Bernard Avenue and Chef Menteur Highway are among the most frequently traveled roads in New Orleans. While there has been much effort put into rebuilding this solidly middle class neighborhood and the area has experienced exceptional retail growth, there are still multiple vacant shopping centers that provide prime redevelopment opportunities. GENTILLY AT A GLANCE: TRADE AREA: 8.1 SQ. MI
0–3 miles
0–5 miles
POPULATION
31,589
77,297
202,533
MEDIAN AGE
36.4
36.3
36.5
HOUSEHOLDS (HH)
13,493
33,476
90,212
AVERAGE HH SIZE
2.3
2.3
2.2
AV. HH INCOME
$58,572
$56,070
$59,008
30 neworleansnewopportunities
GENTILLY FEATURES: n A diverse, family oriented neighborhood n Easy accessibility from Interstates 10 and 610 and multiple high traffic corridors n A dense student population n A state of the art library and high performing public schools
M A R I G N Y, B Y WAT E R A N D 9 T H WA R D The Marigny, Bywater and 9th Wards are historic and lively communities, bursting with creative and artistic energy. Visitors and residents enjoy the live jazz and second line dancing on Frenchmen St. as they explore art galleries, restaurants and vibrantly painted shotgun styled houses. Despite tragic destruction after Hurricane Katrina, the Lower 9th Ward’s 76 new LEED certified homes built by the Make it Right Foundation are symbols of the vibrant new opportunities for redevelopment in this neighborhood. Other new developments in the neighborhood include the New Orleans Healing Center, a multi-use community center featuring a gym, coffee shop, grocery cooperative, bookstore and performance space. The New Orleans Food Coop, offers organic and fresh foods, and has attracted over 2500 member-owners since opening in 2011. MARIGNY, BYWATER AND 9TH WARD AT A GLANCE: TRADE AREA: 5.5 SQ. MI
0–3 miles
0–5 miles
POPULATION
24,239
102,007
292,912
MEDIAN AGE
36.6
36.7
36.8
HOUSEHOLDS (HH)
11,368
47,236
129,074
AVERAGE HH SIZE
3.1
3
3.1
AV. HH INCOME
$36,271
$46,846
$56,081
MARIGNY, BYWATER AND 9TH WARD FEATURES n Home to a unique, artistic community supported by the New Orleans Center for Creative Arts, the Ellis Marsalis Center, and Musician’s Village n The historic artists’ neighborhoods feature a monthly art walk of local galleries n A growing community of restaurants and small businesses are transforming the St. Claude Avenue corridor: Maurepas Foods, the Joint BBQ, and the New Orleans Healing Center represent new retailers in the area
LAKE AREA Known for its breathtaking views of Lake Pontchartrain, quaint harbor and proximity to the beautiful sprawling City Park, Lake Area is known for its established, well-kept neighborhoods and civically engaged residents. A majority of Lake Area residents are college educated and own their homes. The neighborhood’s proximity to top schools, Lake Pontchartrain, parks and Downtown New Orleans have made it a popular spot for homebuyers, both existing New Orleanians and young professionals from out of state. Lake Area supports a variety of businesses, including local and national retailers, dining and professional services. Harrison Avenue is the main corridor for neighborhood shopping. Lake Area’s adjacency to City Park and Lake Pontchartrain offers opportunities to sporting goods and lifestyle retailers. LAKE AREA AT A GLANCE: TRADE AREA: 9.5 SQ. MI
0–3 miles
0–5 miles
POPULATION
34,155
86,455
252,444
MEDIAN AGE
36.8
37.1
37.6
HOUSEHOLDS (HH)
15,775
41,330
114,627
AVERAGE HH SIZE
2.9
2.1
2.1
AV. HH INCOME
$94,626
$84,125
$68,025
LAKE AREA FEATURES: n Residents have an average household income of over $94,626 n 63.4% of residents have some college education or higher n 77% of residents live in single family homes n Lake Area is heavily populated with families with children
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R E A L E S TAT E // RETAIL ATTRACTION
MID-CITY One of New Orleans’ largest neighborhoods, Mid-City features a great mix of historic residences, retail shopping, and famed city landmarks such as City Park, the Fair Grounds Race Course (home to the world renowned New Orleans Jazz Fest), and Bayou St. John. Mid-City is a middle-class residential neighborhood with rapidly expanding retail along major commercial arteries such as Carrollton Avenue, Canal Street, Tulane Avenue and Broad Street. Mid-City restaurants and retail shops are heavily supported by local clientele, complimenting the unofficial theme of the neighborhood, “Stay Local.” A major transit hub for New Orleans, Mid-City’s close proximity to the 610 and I-10 freeways generates significant automobile traffic. Recently announced major retail developments in Mid City include Costco and the Mid City Market shopping center, featuring multiple national tenants such as Winn-Dixie, Pinkberry, Pei Wei and Five Guys Burgers.
MID-CITY FEATURES:
MID-CITY AT A GLANCE:
n Designated Historic Districts include Esplanade Ridge and the Treme neighborhood
TRADE AREA: 9.3 SQ. MI
0–3 miles
0–5 miles
POPULATION
55,049
160,445
321,572
MEDIAN AGE
36.7
37
37.2
HOUSEHOLDS (HH)
23,786
74,591
147,589
AVERAGE HH SIZE
2.9
2.0
2.1
AV. HH INCOME
$49,026
$59,255
$68,584
n Planned Laffite Greenway offers three miles of public park space, biking and walking trails n 21,000–23,000 vehicles per day along major traffic corridors n Home to New Orleans Bio-District anchored by VA hospital and Louisiana Cancer Research Center
n Multi-cultural attractions: City Park, New Orleans Museum of Art, Fair Grounds Racetrack, New Orleans Jazz and Heritage Festival
UPTOWN CORRIDOR The Uptown Corridor neighborhoods feature beautifully preserved historic buildings, upscale restaurants and hotels, boutique shopping, and a variety of historic landmarks. The neighborhood is popular with tourists and residents alike. Riding the St. Charles streetcar to the acclaimed Audubon Zoo is a favorite local pastime. Uptown Corridor is home to New Orleans’ famous Commander’s Palace restaurant, plus other acclaimed restaurants such as Boucherie and Jacques Imo’s. The area is vibrant and alive all year round, but especially during Mardi Gras when New Orleans’ famous parades roll down the main avenues of the neighborhood. Uptown is also home to Tulane University and Loyola University, whose collective student populations exceed 18,000. UPTOWN/CENTRAL CITY AT A GLANCE: TRADE AREA: 11.1 SQ. MI
0–3 miles
0–5 miles
POPULATION
89,658
144,026
326,491
MEDIAN AGE
37.1
37.3
37.2
HOUSEHOLDS (HH)
43,012
65,762
145,206
AVERAGE HH SIZE
2.8
2
2.2
AV. HH INCOME
$83,199
$70,542
$65,254
32 neworleansnewopportunities
UPTOWN CORRIDOR FEATURES: n Famous Uptown Historic Districts such as St. Charles Avenue, Lower Garden District, and Garden District are well known for their beautiful architecture n Uptown is the heart of upscale and specialty boutique shopping— with a variety of local and national retailers n Residents of the Uptown Corridor have an average household income of $86,202 n Magazine Street serves as the major shopping area in the Uptown Corridor and features an eclectic mix of national retailers and locally owned boutiques, including Whole Foods, Chico’s, Free People and Fresh Market.
R E A L E S TAT E // INTELLECTUAL CAPITAL & INCENTIVES
E D U C AT I O N
INCENTIVES
TULANE
REAL ESTATE þ Restoration Tax Abatement
n Sustainable Real Estate Development n City Center n Regional Urban Design Center n URBANBuild
þ Façade Improvement Grant (Downtown
Development District)
UNIVERSITY OF NEW ORLEANS
þ Brownfields Program
n Hotel, Restaurant and Tourism n Urban and Regional Planning n Engineering
þ Private Property Graffiti Removal Program (Downtown
DELGADO COMMUNITY COLLEGE
Development District)
n Architectural/Design Construction Technology n Hospitality Management
þ Economic Development Award Program (EDAP)
WORKFORCE
þS tate Rehabilitation Historic Tax Credit
OCCUPATIONAL EMPLOYMENT AND WAGES IN NEW ORLEANS METRO AREA MAJOR OCCUPATIONAL GROUP
PERCENT OF TOTAL EMPLOYMENT
AVERAGE (MEAN) HOURLY WAGE
Business and Financial
3.9
44.13
Architecture and Engineering
2.2
38.42
Installation, maintenance, and repair
4.9
20.09
Construction and extraction
5.3
18.25
Source: Bureau of Labor Statistics
The City of New Orleans may consider additional incentive support to spur project development to further City economic development goals. These incentives include but are not limited to:
RETAIL þ Cultural Product Districts þ Façade Improvement Grant (Downtown
Development District)
þ Fresh Food Retailer Initiative þ Private Property Graffiti Removal Program (Downtown Development District)
n Infrastructure Support n Payments in lieu of taxes through the Industrial Development Board The New Orleans Business Alliance serves as the point of entry to assess project viability and public ROI and assist developers and retailers in investing in the City.
33
R E A L E S TAT E // NOTES
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I N N O VAT I O N E C O S Y S T E M S
Image courtesy of the Bioinnovation Center
36 neworleansnewopportunities
Pair an exciting, vibrant cultural environment that attracts intelligent, motivated young people with a business infrastructure that nourishes innovation—and watch the sparks fly.
“ Forbes
magazine ranks New Orleans #1 as ‘America’s Biggest Brain Magnet’ for recent college graduates and Inc. Magazine called
“
This is the story of New Orleans over the past 24 months – and the stats prove it. The Brookings Institute reports that New Orleans entrepreneurial activity is 40% above the national average. Forbes magazine ranks New Orleans #1 as “America’s Biggest Brain Magnet” for recent college graduates and Inc. Magazine called New Orleans the “Coolest Start-Up City in America.” Within the innovation ecosystem that is New Orleans, entrepreneurs can enjoy the lifestyle they want while competing successfully on the transnational stage. Returning New Orleanians and newly determined natives have been joined by newcomers to build an exciting, progressive business culture open to risk and innovation. Savvy investors are infusing the area with seed stage and long-term capital, attracted by New Orleans’ growing reputation for spawning young companies in fields like digital technology, education technology and bioscience. Innovative co-working spaces have been established in New Orleans to provide fledgling businesses with low-cost rent, high-speed connectivity, a creative and communal atmosphere, and proximity to other entrepreneurs and mentors. Entrepreneurship has spiked post-Katrina,
New Orleans the ‘Coolest Start-Up City in America.’
from 218 individuals starting businesses out of every 100,000 metro area adults in 2003-06 to 427 in 2008-2010, and remains well above the national average of 333. New Orleans’ innovation eco-system nurtures ventures at every stage of development with capital resources, tax credits and incentives, low cost of doing business, talented and motivated workforce, and private/public programs that create opportunity and promote sustainable growth. RECENT NEW ORLEANS HONORS #1 metro-city as “America’s Biggest Brain Magnet”—Top 10 Cities for recent college graduates : Forbes Magazine, February 2011 Top 20 “Best Cities for Minority Entrepreneurs”: Forbes Magazine, March 2011 Coolest Start-Up City in America: Inc. Magazine, April 2011 #4 of “Seven Cities That Have Caught Start-Up Fever”: Details Magazine New Orleans entrepreneurial activity is 40% above the national average: Brookings Institute’s Katrina After 5 report, July 2010 New Orleans Companies Take #1, 2, 3: Startup Weekend at EDU NYC, February 2012 #1 IT Job Growth: Forbes Magazine #2 Best City for a Job: Forbes Magazine #1 Major Market for the Year (tie) : Southern Business & Development
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S TA RT- U P S TA G E Over 90% of new start-ups fail and many great, creative ideas die before they have a chance to develop. What does an innovative concept need in order to make sure it gets that first breath of life? Mentoring, guidance, legal and accounting expertise, and access to financial and intellectual resources. New Orleans’ entrepreneurial ecosystem provides a robust infrastructure specifically designed to support start-ups through resources such as: THE IDEA VILLAGE Founded in 2000, The Idea Village is a 501(c) (3) non-profit organization with a mission to identify, support and retain entrepreneurial talent in the New Orleans region. The Idea Village has solidified its position as a leading driver of entrepreneurship. Over the last 12 years, the organization has provided direct support to 1,798 local entrepreneurs by engaging 2,028 professionals to allocate over 56,949 consulting hours and $3.1M in capital. Collectively, this portfolio generates over $100M in annual revenue and has created nearly 2,000 jobs for the New Orleans community. The Idea Village fosters the entrepreneurial ecosystem by executing an annual Entrepreneur Season™ that engages a collaborative network of partners, including government, universities, corporations, non-profits, and individuals, to support New Orleans startup ventures through five (5) key initiatives: 1. IDEAxcelerator™: Supports 15–20 high-impact entrepreneurs through an intensive six-month business accelerator program managed by a team of Entrepreneursin-Residence [EIRs]. The goal of the program is to address key business challenges and identify strategic opportunities to accelerate the growth of these select ventures. 2. IDEAinstitute™: The Idea Village’s entrepreneur education program provides over 75 free workshops, roundtables
and speaker series conducted by well-known local and national business thought leaders focused on a variety of topics critical to startups. 3. IDEAcorps™: Nationally recognized MBA service learning program that connects university resources to provide direct strategic consulting to New Orleans entrepreneurs. 4. Capital Village™: The Idea Village works with New Orleans entrepreneurs
LAUNCH PAD Recently featured in The Wall Street Journal, privately owned Launch Pad was established in 2009 to offer affordable collaborative workspaces in Downtown New Orleans for entrepreneurs, freelancers and creative professionals as well as the service providers who support them. Especially popular with tech start-ups, Launch Pad has expanded twice since opening its doors and offers programs such as:
38 neworleansnewopportunities
during the Entrepreneur Season to develop, refine, and strengthen their investor pitches and hosts numerous innovative capital access opportunities for equity capital, grants and debt. Idea Village managed capital access programs include: Venture Capital (Coulter IDEApitch); Angel Capital (Power Pitch, Angel Investor Dinners); Grants (The Big Idea, Speed to Seed, Industry Pitch Competitions); and Debt (Banker Client Roundtable).
5. New Orleans Entrepreneur Week™: The Idea Village’s annual Entrepreneur Season culminates each March with New Orleans Entrepreneur Week (NOEW), the nationallyrecognized celebration of entrepreneurship that has become the foundation for New Orleans’ effort to be nationally recognized as a hub of entrepreneurship and innovation. The 5th annual NOEW is scheduled March 16–22, 2013.
n Ignition: a 12-week program focused on refining product concept, business model and 8-minute pitch for Launch Fest
n National Exposure: Launch Pad sends graduates of Ignition to national conferences such as TechCrunch Disrupt in NYC which showcase entrepreneurs to investors
n Launch Fest: a daylong conference that brings business leaders and investors together with Ignition companies and the New Orleans startup community
S P O T L I G H T BIOSCIENCES In the quest to reinvigorate and reinvent its economic culture, perhaps no initiative has been more important than the City and State’s commitment to advancing the biosciences in New Orleans.
BIOINNOVATION CENTER
There was brilliant research
Located in New Orleans’ growing BioDistrict, the BioInnovation Center, a non-profit established in 2011, is at the forefront of New Orleans’ biotechnology surge. With 66,000 s.f. of state of the art wet lab, office and conference space, the Center offers pre-startups, startups and growing life science companies unparalleled access to the area’s leading researchers and business resources to commercialize and expand product reach to ensure sustainability. BioInnovation programs include:
being done in the city, but
n Commercial Awareness for Researchers: a seminar series targeting academic bioscience researchers to educate faculty on IP-awareness, institutional technology transfer policies and biotech entrepreneurship. n Bridging Louisiana Bioscience: an event series targeting existing Louisiana bioscience companies to promote collaboration and awareness of biotech activity in the area. n New Orleans BioInnovation Networking Group (NOBING): a non-profit initiative founded to support and facilitate biotech entrepreneurship in New Orleans and southeast Louisiana by hosting social events to provide a relaxed forum in which
BIODISTRICT AND HEALTHCARE BioDistrict New Orleans is projected to generate $24B for the local economy over the next 20 years. This 1,500 acre project in the Downtown and Mid-City neighborhoods of New Orleans is anchored by the new University Medical Center and Veterans Administration (VA) Hospital. In addition to BioDistrict facilities, plans include a sustainably built surrounding environment featuring housing, retail, office and alternative transportation. This activity is not only enhancing the health care available for the local population but also positioning New Orleans as a health care hub that offers highly specialized services that will attract patients from outside of Louisiana.
none was being brought to market. Historically, the technologies were either leaving the state or just sitting in filing cabinets. A ARON MISCENICH
President of New Orleans’ BioInnovation Center,
scientists/entrepreneurs, business facilitators, lawyers, and venture capitalists can network and share knowledge. n Bioscience Angel Capital in New Orleans: a commercial awareness seminar for researchers that explores issues of capital investment and securing funding in the biotech industry. n Innovation and Technology Leadership: a commercial awareness seminar for researchers that covers a variety of business issues at various stages of company growth.
n The $995M U.S. Department of Veterans Affairs complex, which broke ground in 2012 will house specialties in neurology, cardiology and orthopedics. n Construction of Louisiana’s new University Medical Center (UMC) also began this year, a $1.09B project. Affiliated with LSU, UMC will be a 424bed teaching hospital and academic medical complex; it is scheduled for completion in 2015.
n The Louisiana Cancer Research Consortium’s new home, a state of the art 150,000 s.f. research center, houses researchers and staff from Tulane, LSU, Xavier, the Ochsner Health System and other cancer research institutions to create a collaborative environment in which they can share resources and research.
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I N N O VAT I O N E C O S Y S T E M S
Several biosciences companies are taking advantage of the BioInnovation Center. n IntelliCell BioSciences is a pioneer in regenerative medicine, focused on expanding regenerative medical markets using stromal vascular fraction derived from adult adipose tissue. Recently, the company opened an Adipose Stem Cell Processing Center in New Orleans to make adipose derived stem cells available for local physicians, healthcare centers and researchers. n NuMe Health, a tenant of the BioInnovation Center, is a New Orleans-based biotech
startup that develops food compounds to promote the growth of healthy microbes within the gastrointestinal tract. Recently, NuMe announced the initiation of a clinical trial of its lead cobiotic product targeted toward the pre-diabetic population to support healthy blood glucose levels and metabolic fitness. These clinical trials will be conducted locally at LSU’s Pennington Biomedical Research Center, which has a global reputation for its clinical research in obesity and metabolic diseases.
n Another tenant, InnoGenomics, was founded by Sudhir Sinha who had already founded and sold a biotechnology company and planned to retire—until he heard about the opportunities developing at the BioInnovation Center. Receiving help from MBA students and interns, he won a $150,000 grant from the US National Science Foundation to develop specialized techniques for extracting forensic information from trace amounts of degraded DNA samples found at crime scenes.
n An energy-technology
company ReactWell, has also taken advantage of the BioInnovation Center’s non-profit status, state of the art laboratory facilities and access to Tulane’s office of technology transfer. Using $20,000 in start-up capital from the Tulane Business Plan Competition and the Domain Companies New Orleans Entrepreneur Challenge, ReactWell is developing ways to use underground geothermal reactors to create synthetic crude oil from algal biomass.
S TA RT- U P S TA G E // CAPITAL RESOURCES Access to capital at various stages of business growth is key to success. New Orleans has established a capital infrastructure for entrepreneurs through various public/private partnerships and non-profit funding sources while attracting profit-seeking investors from all over the world.
DEBT
EQUITY
SEED Pre-revenue/ up to $1M in funding
EARLY Revenues/ up to $5M in funding
BIO Fund NO Startup Fund South Coast Angel Fund Louisiana Fund BVM Capital National VCs Advantage Capital Stonehenge Capital HOPE Enterprise Corp. Accion Community Banks KIVA
40 neworleansnewopportunities
GROWTH $5M–10M in funding
MID-MARKET $10M–$100M in funding
Proud to call New Orleans home for over 65 years In 1946, J.M. Lapeyre invented the world’s ďŹ rst automated shrimp-peeling machine, revolutionizing the shrimpprocessing industry and setting the foundation for the Laitram Corporation. Over 65 years and 573 patents later, Laitram, L.L.C. and its family of companies employ over 1,000 people locally, an additional 500 globally, and persists in its commitment to innovation, integrity, and continuous improvement in every aspect of its work.
www.laitram.com
I N N O VAT I O N E C O S Y S T E M S
R A P I D G R O W T H S TA G E // CAPITAL RESOURCES The rapid growth stage of a young company can be as daunting as the start-up phase. In this stage, a strong operational platform and reliable systems become critical to support continued market penetration, timely production, clear brand identity and cultivation of customer goodwill and loyalty. The New Orleans community offers young companies at this rapid growth stage several resources to ensure success such as the South Coast Angel Fund and the New Orleans Startup Fund. NEW ORLEANS STARTUP FUND
The South Coast Angel Fund
A nonprofit venture fund focused on business creation and innovation in the Greater New Orleans region, the fund focuses on companies that have completed the “angel” round and have high growth potential (approximately $20M over 5 years), have generated revenue or have depth of business experience, and are located within the 10-parish region of New Orleans. The New Orleans Startup Fund provides:
is a member-managed angel venture capital fund designed to utilize the capital, resources, and expertise of its members to profit from its investments
n Up to $75K convertible debt or equity
in entrepreneurial, early-stage companies,
n Up to $250K debt (U.S. Department of Housing and Urban Development Community Development Block Grant funds)
primarily within Louisiana and
n Access to additional outside funding at 10:1 ratio
the Gulf Coast community.1
n Technical / operational assistance
The following companies illustrate the type of success that many rapid growth companies in New Orleans have achieved: ISEATZ
THE RECEIVABLES EXCHANGE
Privately-owned iSeatz was established in 1999 as a global provider of customized online travel and entertainment solutions, offering immediate access to more than 200,000 leading service and product providers. iSeatz empowers global companies such as Air France, Mastercard and Orbitz to increase revenue at point of sale by presenting complimentary offerings during online purchasing.
Privately-held, The Receivables Exchange was founded in New Orleans in 2007 as the world’s first online marketplace for trading accounts receivable. Since its inception, the Exchange has successfully connected thousands of businesses seeking working capital to a global network of accredited institutional investors.
n In August 2008, iSeatz was ranked No. 494 on Inc. Magazine’s list of the 5,000 fastest-growing private companies ($8.1M revenue in 2007 and sales growth of 636.3% prior three years) n In April 2009, iSeatz established permanent headquarters in New Orleans and co-founded the IP (Intellectual Property) Building, the City’s first entrepreneurial cluster. iSeatz leads efforts to rebuild the City’s economy and create a flourishing tech community. n In April 2010, iSeatz and Orbitz struck an exclusive distribution partnership. iSeatz continues to serve industry leaders including Air Canada, Amtrak, CitiBank, Delta Air Lines and Eurostar. Source: http://southcoastangelfund.com
1
42 neworleansnewopportunities
n In February 2010, The Receivables Exchange secured $17M in Series C funding from Bain Capital Ventures. n In 2010, receivables trading volume on The Receivables Exchange’s market-based platform increased 466%. n In September 2011, the company launched Corporate Receivables Program in association with NYSE Euronext, and NYSE took a minority ownership position in The Receivables Exchange.
E S TA B L I S H E D S TA G E Mature companies have their own challenges: risk management, control of costs, investment in infrastructure, maintaining competitive edge via new product development, stabilization of financial resources, systems integration and managerial development and strengthening. The New Orleans business environment offers mature companies a stable environment within which to grow while providing the creative, entrepreneurial spirit that keeps these companies on the cutting edge of their industries. GE CAPITAL
GE chose New Orleans over
Publicly-traded GE Capital is the financial services unit of General Electric which was established in 1892. GE Capital offers commercial and consumer loans worldwide. In the summer of 2012, GE Capital set up its information technology offices in New Orleans and plans to hire as many as 300 people in the next three years, at salaries ranging from entry level to six figures.
about one dozen other cities,
n The key reason to move, per company management, was the city’s growing talent pool. n Tech companies in the region have been doggedly pro-active in working with schools to produce graduates with skills firms like GE Capital need. GE Capital is collaborating closely with the University of New Orleans, as well as private universities such as Tulane, and also intends to recruit staff from across the south to New Orleans.
including finalist Indianapolis. We were not without people who wanted us to locate this technology center in their city and state. This place is what’s best in America. We saw it in this competition.2 BRACKETT DENNISTON
Senior Vice President and General Counsel of GE
Image courtesy of the Bioinnovation Center 2
Source: The Times-Picayune, published February 17, 2012, updated
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I N N O VAT I O N E C O S Y S T E M S
T R I P L E B O T T O M L I N E C O M PA N I E S Over the past decade, the US has seen a strong paradigm shift toward corporate responsibility. In June 2012, Louisiana became the first state in the South—and the eighth across the nation—to pass legislation allowing companies to incorporate as Benefit Corporations (B Corporations), which are for-profit companies that have made a strong commitment to “doing good” based on the three pillars of people, planet and profits. Due to this legislation and, more significantly, due to the inherent civic commitment of the community, New Orleans has attracted a strong base of social entrepreneurs and developed resources to support them. The New Orleans Business Alliance is working with the non-profit Propeller (formerly Social Entrepreneurs of New Orleans) and Life City, a local organization that supports the development of “impact” businesses in New Orleans, to assemble an initial roster of companies who will apply to become Louisiana’s first Benefit Corporations. One of the key elements of Benefit Corporation legislation is to provide a secure business structure for social impact investors to place their capital. JP Morgan Chase and the Rockefeller Foundation released a report in 2011 that suggested the impact investing class will represent as much as $1 trillion in investment over the next decade. “A flood of capital from institutional and high net worth investors who want their investments to make a difference has been sitting on the sidelines waiting for clear legal and performance standards,” said Andrew Kassoy, co-founder of B Lab. “In the past five years, Louisiana has become a hotbed of social enterprise activity that generates high quality jobs that are good for the community. The state’s passage of Benefit Corporation legislation will enable the investment floodgates to open and support these budding entrepreneurs.” “Impact investing has tremendous potential. The Benefit Corporation legislation further supports Louisiana’s growing reputation as a great place for entrepreneurs,” said Liza Cowan, Vice President for Global Philanthropy in Louisiana at JPMorgan Chase & Co.
n People: fair and beneficial business practices toward labor, the community and the region.
JOULE ENERGY
n Since inception, Joule’s experienced team has collectively installed over 1 megawatt of solar panel systems in New Orleans and Baton Rouge, creating substantial savings for homes and businesses.
Since 2009, Joule energy has helped people, and businesses increase the value of their real property, dramatically lower their utility bills and positively impact the environment by installing high quality solar energy systems. Joule is a certified B Corporation, meeting rigorous, independent standards of social and environmental performance. The company focuses on creating greater economic opportunity, strengthening local communities, and preserving the environment.
44 neworleansnewopportunities
n Planet: sustainable environmental practices that reduce the company’s ecological footprint. n Profit: including the economic benefit and impact the organization has on its economic environment.
n Being a Benefit Corporation allows Joule to focus not only on bottom line growth, but also the happiness of its employees, its customers, and its environmental impact. In doing so, Joule has grown from a team of 5 employees at the start of 2010 to 45 employees as of the end of May 2012.
PROPELLER Established in 2011, the non-profit Propeller (formerly SENO, Social Entrepreneurs of New Orleans) supports individuals to start and grow innovative, sustainable, results-focused solutions to social and environmental problems, and in doing so, systematically solve some of New Orleans’ toughest social problems. Propeller has recruited and built a pipeline of social innovators and has identified sectors of systemic issues to target: public education, healthy food access, blight/housing and economic development. Its programs include:
Whitney Bank
and you.
At Whitney Bank, we are committed to building a lasting relationship with our customers based on strong personal service. A relationship that
n PitchNOLA: a city-wide social innovation elevator pitch competition to source good ideas
will stand the test of time. In the future, you can
n Monthly training workshops: Finance 101, HR, Proof of Concept, PR & Marketing, Legal, etc.
look forward to continued strength, increased
n SENO Accelerator: to help social entrepreneurs reach financial sustainability and social impact
services and a continued commitment to the
n SENO Consultants: experienced professionals to complement the social entrepreneur’s strengths
Moving forward together. For more information,
convenience, a broader range of financial communities we call home. Whitney and you. visit whitneybank.com.
n SENO Mentors: high-level strategic feedback and access to networks/introductions n SENO Pro Bono Professional Network: pro bono professionals donate in-kind services
A member of Hancock Holding Company. Member FDIC.
W12-56_Evergreen_Whitney_3.5x10_v2.indd 1
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I N N O VAT I O N E C O S Y S T E M S // EDUCATION & INCENTIVES
E D U C AT I O N
New Orleans boasts nine universities with a variety of programs that support our innovation ecosystem. Among them: TULANE UNIVERSITY n Strategy and Entrepreneurship n Medicine n Biomedical Engineering n Bioinformatics; Biostatistics n Levy-Rosenblum Institute for Entrepreneurship n Tulane/Xavier Center for Bioenvironmental Research XAVIER UNIVERSITY n Pharmaceuticals n Computer Science n Biology UNIVERSITY OF NEW ORLEANS n Biological Sciences n Film Production LOYOLA n Film and Digital Media n Southern University of New Orleans n Biology n School of Business and Public Administration DELGADO COMMUNITY COLLEGE nG oldman Sachs runs a 10,000 Small Businesses program in partnership with Delgado.
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INCENTIVES þ The Research and Development Tax Credit þ Angel Investor Tax Credit þ Technology Commercialization Credit and Jobs Program þ Digital Media Incentive
The Kennedy Financial Group is a proud sponsor of the 2012 New Orleans New Opportunities Guidebook
www.thekennedyfinancialgroup.com 47
I N N O VAT I O N E C O S Y S T E M S // NOTES
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D I G I TA L M E D I A & E N T E RTA I N M E N T
Interior of a soundstage under construction at Second Line Stages.
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Digital Media is an exciting, rapidly evolving sector that combines entertainment and technology. “These tax credits are not found anywhere else in the U.S. We’ve created a level of stability here that is very appealing to the entertainment industry.”
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T
he industry has evolved over the past 10 years as the internet established itself as a distribution medium, inspiring consumer demand for new forms of entertainment. Prior to 2005, New Orleans was host to a handful of companies in the technology, design, production and post-production services sectors which laid the foundation for the current base of digital media and creative enterprises. These early web design, visual effects, audio and visual production, and computer services and support companies have now expanded to include full-service digital agencies, mobile application developers, and game and software developers. New Orleans’ reservoir of creative talent is a natural asset for creative industries: “In comparison with other economic sectors viewed as important to New Orleans future, the cultural sector (which was defined to include a range of creative professions including art, design, and media) is the second largest employer after the tourism sector, and is almost two times larger than the city’s life sciences and energy sectors in terms of employment.”1 These creative workers make up the raw talent pool for the digital entertainment workforce, and the New Orleans community has developed programs to make
C H R I S S T E L LY
Executive Director of Louisiana Economic Development’s Office of Entertainment
sure they have the technology skills and training employers like premier video game developer Gameloft require. The State of Louisiana has taken an aggressive approach to attracting investment in entertainment production primarily through tax incentives administered by Louisiana Economic Development. These tax incentives have ushered in unprecedented levels of investment from the entertainment and media industry, including $1.5B in film production in Louisiana in 2011 alone. Much of this production has taken place in New Orleans, where digital media sound recording and live performance incentives have simultaneously sparked a boom attracting premier video game developers like Gameloft; major production studios; recording and scoring studios; live state-of-the-art performance venues that can host major acts. The State of Louisiana’s tax incentive policy is driving investment in both traditional and new forms of entertainment. These incentives provide a major competitive advantage for the digital entertainment industry cluster, encouraging innovation and investment in digital entertainment along the entire value chain from content creation to distribution.
2010 New Orleans Cultural Economy Snapshot, Mt. Auburn Associates, commissioned by the Mayor’s Office of Cultural Economy
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D I G I TA L M E D I A & E N T E RTA I N M E N T // CASE STUDIES
The following companies have chosen to locate in New Orleans based on its vibrant creative culture and its economic advantages and robust media and technology infrastructure: n Gameloft n Audiosocket n TuttiDynamics n Factory VFX n LiveSet
AUDIOSOCKET Audiosocket is a privately-held boutique music licensing agency that was established in 2007. The company has 35,000 songs in its catalog from more than 2,100 emerging bands, composers and record labels from around the world. Audiosocket is a next-generation content provider, and they thrive at the intersection of music and technology. The CEO of Seattle-based Audiosocket created a dual-headquarters office in New Orleans due to favorable tax credits. n In April 2012, Audiosocket announced its partnership with MOFILM, the world’s leading crowdsourcing agency, which will enable Audiosocket’s artists to have exposure to new global distribution channels and visibility within the world’s leading brands. n Audiosocket’s CEO and CTO mentor entrepreneurs through the Launch Pad Ignition program.
n Second Line Stages
GAMELOFT
n WWOZ n Deltree n Bayou Tremé Center n TurboSquid n Trumpet n Canary Collective n Cathedral Creative
Publicly-held Gameloft was founded in Paris in 1999 as a computer and video game developer offering games localized in 12 languages and available in more than 100 countries. Gameloft is the #2 mobile game developer in world. In 2011, Gameloft chose New Orleans for its first major studio expansion in North America due to several factors: n Gameloft was approached by the Louisiana Economic Development (LED) team, which offered the company a generous incentive package including the State’s Digital Media and Software Incentive Tax Credits and a discretionary incentive package. n Gameloft also cited New Orleans’ extensive talent pool and vibrant culture as compelling motivations to expand within the area. LED implemented an online recruitment effort on Gameloft’s behalf and agreed to work with Delgado Community College to create a program (“Digi Delgado”) to build the talent pipeline further.
Spring 2012 Economic Quarterly, Louisiana Economic Development
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Gameloft Studio Manager David Hague said New Orleans wasn’t an original contender, but a visit to the area and a close look at LED FastStart™, the state’s acclaimed workforce solutions program, convinced company officials.
Throughout the search process, we went to a lot of the gaming technology hubs. I quickly realized this was a city where we would be able to pull a workforce and have a great cost of living.1 DAVID HAGUE
Studio Manager, Gameloft
The 2012 ESSENCE Music Festival® is proud to support the New Orleans Business Alliance.
OUT I N F R O N T
Proud to support the New Orleans Business Alliance
Working together, we make it happen! Adams and Reese knows that a diverse business environment is the cornerstone of a progressive business environment. Adams and Reese supports new business in New Orleans. Photos include: our signature event, “Women to Women: Conversations Between Women of Color” designed to foster an open dialogue between women of color in the profession and the challenges they face; Howard University Law Student Reception hosted for students returning annually to continue to help rebuild New Orleans; firm hosted events during Essence Music Festival, New Orleans Jazz and Heritage Festival and the Bayou Classic; and various award presentations.
www.adamsandreese.com One Shell Square | 701 Poydras Street, Suite 4500 | New Orleans, LA 70139 | 504.581.3234
ALABAMA | FLORIDA | LOUISIANA | MISSISSIPPI | TENNESSEE | TEXAS | WASHINGTON, DC No representation is made that the quality of the legal services to be performed is greater than the quality of the legal services performed by other lawyers. Author: Charles P. Adams, Jr. FREE BACKGROUND INFORMATION IS AVAILABLE UPON REQUEST.
D I G I TA L M E D I A & E N T E RTA I N M E N T // CASE STUDIES
S P O T L I G H T ENTERTAINMENT FILMED IN NEW ORLEANS A total of 121 feature films and T.V. series have been filmed in New Orleans since 2009. Over 15 feature films and T.V. series are currently in production in 20121. Recent film highlights include: n True Blood Season 5, 2012 n Contraband, 2011 n 21 Jump Street, 2011 n G.I. Joe: Retaliation, 2011 nT remé Seasons 1–3, 2009–2011 n The Green Lantern, 2010 nT wilight Saga: Breaking Dawn Part 2 (2nd Unit) 2010
MUSIC New Orleans’ creative culture, and specifically its musical tradition, continues to be a magnet for locals as well as tourists around the globe. Millions of music lovers flock to legendary venues such as Tipitina’s, Preservation Hall and the Howling Wolf, and the annual Jazz & Heritage Festival. Live entertainment is also thriving in New Orleans thanks to the recent restoration of several historic downtown theatres including the Mahalia Jackson Theater for the Performing Arts, the Joy Theater and the Saenger Theatre. These projects were supported in large part by Louisiana’s unique incentives for live performance productions and theater infrastructure spending. Special tax incentives also inspired the development of live performance facilities in conjunction with other entities, such as the National World War II Museum’s USO-style Stage Door Canteen. As these venues are being restored, developers are conscious of honoring our historical heritage while incorporating the technology and production capabilities of the 21st century. The City’s rich live music tradition continues to draw millions of music lovers, however, New Orleans musicians historically have not had access to the capital and resources necessary to export their content to the global marketplace. In 2002, Louisiana initiated tax incentives administered by Louisiana Economic Development. Initially geared toward film production, these entertainment tax credits were expanded to include sound recordings and live performance production and infrastructure projects. As a result, the State of Louisiana is attracting fresh, unprecedented investment in entertainment and media production. Much of this production is taking place in New Orleans, where sound recording and live performance incentives have drawn in major production studios, recording and scoring studios as well as live state-of-the-art performance venues capable of hosting major acts. FILM In the past 10 years, Louisiana has become an increasingly popular destination for film production, trailing only New York and California in number and value of annual projects. Filmmakers invested $1.4B in Louisiana projects in 2011, a substantial increase from the $900M invested in 2010, and projects based in New Orleans—“Hollywood of the South”— were a substantial part of that investment.
S E C O N D L I N E S TA G E S Established in 2010 as a state of the art, full service media production company and first green independent movie studio and soundstage in the country, Second Line Studios’ success caused it to expand in 2012. The company renovated a neglected, historic warehouse in the Lower Garden District, creating 200 construction jobs and 1200 direct and indirect permanent jobs. For this project, Second Line Studios received benefits such as: n Financing through New Market Tax Credits, Historic Tax Credits, state-provided Film Infrastructure Tax Credits, risk equity and leveraged loans Source: Film New Orleans
1
n Louisiana Film Tax Credits for film producers who use Second Line’s services
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D I G I TA L M E D I A & E N T E RTA I N M E N T // OPPORTUNITIES & WORKFORCE
O P P O RT U N I T I E S Consumer patterns have shifted over the last ten years. Traditional film and television viewing is making way for accessing and viewing entertainment content via online and social media platforms, smartphone and tablet applications, and gaming devices. Digital distribution has altered the overall economics of the film industry significantly. Rather than multiple large productions, the trend is to produce “franchises” with a plethora of spin-off content and products. For example, The Green Lantern (released summer of 2011 and filmed in multiple locations around New Orleans in 2010) didn’t just debut at the box office. It launched with a full array of digital brand extensions: promotional websites, casual, console and online games, and mobile applications as well as multimedia content for DVD and BluRay releases. In response to this trend, entertainment companies have initiated aggressive product development efforts—and “Hollywood South” is keeping pace with these trends. New Orleans’ vibrant and innovative entertainment, media and technology sector is poised to lead the charge in these initiatives with its talented workforce, supportive infrastructure and lucrative incentives, especially in areas such as: n Film production n Digital distribution n Pre- and Post-production (special effects, et. al.) n Film scoring n Video game development n Digital distribution n Live performance
400 MEMBERS IN THE NEW ORLEANS AREA The International Alliance of Theatrical Stage Employees
$1.4 BILLION INVESTED IN LOUISIANA FILM PROJECTS in 2011
23% ANNUAL EMPLOYMENT GROWTH in the Louisiana film industry
WORKFORCE While the entertainment industry has expanded throughout the state, New Orleans in particular has flourished because of its existing entertainment culture and pipeline of talent for productions. The International Alliance of Theatrical Stage Employees reports that the Greater New Orleans region currently boasts over 400 members. This large crew base allows productions to hire locally, and Louisiana’s film industry has experienced an annual employment growth rate of 23% each year—the highest in the nation. New Orleans has also developed a strong workforce equipped to manage the more technical aspects of filmmaking and digital content creation: sophisticated post-production tools, skills in 3D animation, engineering, software development, web design, gaming content creation, and mobile application development. This talented, skilled workforce paired with creative combinations of tax credits and incentives has made New Orleans the destination for 21st century digital entertainment.
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D I G I TA L M E D I A & E N T E RTA I N M E N T // EDUCATION & INCENTIVES
E D U C AT I O N
INCENTIVES
New Orleans is also home to several high-quality entertainment production educational and vocational training programs, as well as workforce partnerships with four-year universities and community and technical colleges that develop relevant curricula and training. Many of New Orleans’ colleges and universities offer specialized creative media and fine arts degrees for students focused on careers in the entertainment industry. LOYOLA UNIVERSITY
TULANE UNIVERSITY
n English, concentration Film and Digital Media n Graphic Design
UNIVERSITY OF NEW ORLEANS n Film Arts n Graphic Design n Music Studies
n Graphic Design n Musical Composition, B.F.A. n Musical Performance, B.F.A. n Digital Media Production n Music Science and Technology DELGADO COMMUNITY COLLEGE n Website Design n Film and Video Production
þ Louisiana FastStart™ þT he Louisiana Quality Jobs Program
þ Technology
Commercialization Credit and Jobs Program
þ Motion Picture
Investor Tax Credit
þ Digital Media Incentive
þ Sound Recording
Investor Tax Credit
þ “Broadway South” Tax Credit
þ Live Performance Tax Credit
NEW ORLEANS VIDEO ACCESS CENTER (NOVAC) Now in its 40th year of operation, NOVAC is the longest continuously operating media-arts 501(c) (3) nonprofit in the Southeastern US. NOVAC’s mission to cultivate a sustainable film community by providing access to resources, education and locally generated content through education, career development, community outreach, independent productions, and special events. Programs include:
n Independent Filmmaker
Educational Series: seminars and panel discussions designed to give indie filmmakers sophisticated training they need to produce their own projects
n NOVAC’s Job Referral
Program: gives local and outside film companies referrals to graduates of NOVAC’s training programs
n Creative Industry Training
Program: a no-cost intensive, hands-on training program designed to prepare students for entry-level work in the local creative industry. Students receive technical training along with soft-skills development and workforce ready skills in an applied learning environment
n Pop-Up Classes: short,
intensive affordable workshops designed to provide training in a
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short period of time to budding film professionals
n Equipment Rental Program: offering low-cost access to production equipment and editing software and facilities
n Fiscal Sponsorship: for
a low fee, individual artists or groups can partner with NOVAC to apply for grants and receive tax-deductible contributions available only to 501(c)(3) nonprofits
þ Modernization Tax Credit
þ Brownfields Program
Boh Bros Construction Company, LLC is a proud sponsor of the 2012 New Orleans New Opportunities Guidebook.
www.bohbros.com
Clear Channel Media and Entertainment is a proud sponsor of the 2012 New Orleans New Opportunities Guidebook.
www.clearchannel.com
D I G I TA L E N T E RTA I N M E N T // NOTES
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A D VA N C E D M A N U FA C T U R I N G
Image courtesy of Michoud Assembly Facility
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New Orleans entered the advanced manufacturing arena in 1868 as one of the first ice manufacturers in the nation. New Orleans is home to premier NASA facilities, major high-tech manufacturers, and a highly-skilled workforce ready
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ce and refrigerated shipping enabled food industries to reach customers across the nation and expanded the types of commodities that could be shipped out of New Orleans. We’ve come a long way since the ice age. Historically, New Orleans has had a rich, diverse manufacturing culture that ranges from aerospace to food products. New Orleans offers the elements required for a strong manufacturing industry: low cost of doing business, transportation to foreign and domestic markets, and a quality workforce. These resources create an optimal business climate for new manufacturing enterprises as well as existing local companies ready to expand operations and modernize facilities to remain competitive globally. Beyond the basics, New Orleans also offers extremely attractive tax rates and incentives, access to high-tech research & development, and premier
to embrace the opportunities of the 21st century.
manufacturing facilities such as NASA’s Michoud Assembly Facility (MAF). Other fully-equipped advanced manufacturing facilities include the nearby Stennis Space Center, HuntingtonIngalls’ Avondale Shipyard, Bollinger’s ship building and repair facilities, and Textron’s two manufacturing operations. This local access to large defense contractors and connection to NASA allows our region’s advanced manufacturers the ability to leverage government procurement contracts and take advantage of regional technology expertise. Programs in New Orleans such as NCAM (National Center for Advanced Manufacturing) ensure an ever-expanding local population of qualified manufacturing professionals. New Orleans’ advanced manufacturing sector has higher-than-average output, and 56% of our manufacturing workers have at least some college.
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A D VA N C E D M A N U FA C T U R I N G // ASSETS
With premier NASA facilities, major high-tech manufacturers, a seasoned and highly-trained workforce, and a world-class incentive package, New Orleans is one of the few areas in the world equipped to manufacture advanced, technologically complex products. Resources available to incoming and existing manufacturers include: n 832 acres total, 300+ acres undeveloped n 2.2 million s.f. of manufacturing space, 900 ,000 sq.ft. available n 900,000 s.f. of office space, 300,000 s.f. available n 37 structures on-site, 40 foot ceilings n Extensive crane network (5–15 ton) Image courtesy of Michoud Assembly Facility
MICHOUD ASSEMBLY FACILITY (“MAF ”) For four decades, MAF (a NASA-owned facility operated by Jacobs Technology) manufactured aerospace systems for NASA, including fuel tanks for the Space Shuttle program. NASA ended the Space Shuttle program in 2011 and its new space programs required much less manufacturing capacity. At that point, MAF and the State of Louisiana collaborated to transform the facility from a single-tenant facility to multi-tenant site that could accommodate other advanced manufacturers. “We found ourselves with space we didn’t need, and it evolved into a business model that will help us cover costs by attracting other public and private entities,” said former Michoud Director Steve Doering, who led the three-year transition.1 Today, Michoud continues to do work for NASA, but now it houses other advanced manufacturing businesses, such as Blade Dynamics, an international maker of wind turbine blades. Other new tenants include B-K Manufacturing Inc. (providing products and services for the defense and aerospace industry) and Big Easy Studios (a film production company). This world-class manufacturing facility now has the capacity to accommodate other advanced manufacturing operations on a turn-key, build-to-suit basis. Features of the facility include: Spring 2012 Economic Quarterly, Louisiana Economic Development
1
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n Deep water port (36 ft. deep, 250 ft. wide), highway (less than 1 mile from Interstate), air (9 miles away from Lakefront Airport), and rail (six Class 1 rails nearby) n Proven hurricane protection ($178M in hardening projects following Hurricane Katrina) n Highly-skilled workforce available includes researchers, engineers, technicians, mechanics, skilled machinists and ship-builders with more than 2,000 federal, state, academic, and technologybased industry employees on-site
ADVANCED TECHNOLOGY CENTER (ATC ) The “brainchild” of the University of New Orleans Research and Technology Foundation, Inc., ATC is a five story 79,600 square foot commercial multi-tenant center that also houses several research-oriented and technologicallyadvanced firms who cooperate with the university on research, student internships, faculty consultations and adjunct faculty appointments. In 2008, the Advanced Technology Skills Alliance introduced the Advanced Technology Center of Excellence initiative with the goal of training 1,000 individuals for various manufacturing occupations including certified manufacturing specialist, welding, pipe fitting, electrical, maintenance, mechanics, press process and CAD/CAM. Tenants of ATC include: n Axonn, L.L.C.: a provider of spread spectrum radio frequency data links whose receivers and transmitters are used in industrial control applications for measuring temperature, pressure, and liquid levels. n CDM: an international environmental engineering and design firm. n Solutient: an information technology services and consulting firm that offers performance-enhancing solutions by increasing inter- and intra-enterprise collaboration. Clients include the manufacturing, financial services, healthcare, government, and professional services industries. n University of New Orleans Metropolitan College, Computer Technology Training Center : offers the state of the art computer instruction facilities, non-credit courses in popular computer applications and training for technical certifications such as Microsoft, Oracle, Sun and Cisco/Novell. n PMOLink: experts in business process engineering, program and project management, knowledge management and decision support. n GCR Inc.: develops and implements technology in aviation, public safety, urban planning and chemistry data management for the nuclear power industries. n ISS - RioMar L.L.C.: an international shipping and logistics expediter that handles more than 6,000 ships annually through the Port of New Orleans. n Novonics: engineering and management services for Naval command, control and communication systems, simulation-based training and readiness systems, testing and evaluating networks, and information technology. n APOGEN Technologies, Inc.: a Louisiana based, employee-owned company, specializing in engineering, software and systems integration, environmental planning and compliance services. APOGEN is the management and integration contractor for the Defense Integrated Military Human Resources System, a Department of Defense initiative to develop a joint-integrated pay and personnel management system.
NATIONAL CENTER FOR ADVANCED MANUFACTURING (NCAM ): Located at MAF , the mission of NCAM is to maintain and enhance world class manufacturing capabilities to support space transportation systems and strengthen U.S. competitiveness in aerospace commercial markets. To do so, NCAM has partnered with the State of Louisiana, NASA and the University of New Orleans to provide leadership in technology, combining education, applied research and advanced manufacturing technologies. Louisiana’s longstanding commitment to fund state-of-the-art equipment at NCAM has consistently kept the region on the cutting edge of advanced technologies and research. The State’s recent commitment to fund the expansion of equipment offerings guarantees that this program will maintain the lead in advanced manufacturing over the next several decades. An example of NCAM’s many achievements: n Between 2002–2003, engineers at NCAM pioneered a technique called friction stir welding. This technique allows metal pieces to be welded together without melting them, causing less damage to the welded materials. The longest of NCAM’s “friction stir” welds is over 16 feet, more than twice as long as the previous record for a continuous titanium friction stir weld. This project is being financed by a three-year $4.8M dollar grant from the Office of Naval Research to advance titanium shipbuilding.
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A D VA N C E D M A N U FA C T U R I N G // CASE STUDIES & INCENTIVES
REPRESENTATIVE COMPANIES INCLUDE n Lockheed Martin n Jacobs Technology n Blade Dynamics n Boeing n Folgers n B-K Manufacturing n Crescent Unmanned
NEW ORLEANS ADVANCED MANUFACTURING SECTOR Source: ICIC Number of Jobs (2011) Share Relative to the U.S. (2011) Output (2009) Relative Share Job Growth (2000-2011) Average Wages % of Workers w/ High School Degree or Less % of Workers w/ Some College or More
2,502 0.7 $800,100,000 13% $55,200 44% 56%
n Textron Marine & Land n Dynamic Industries
BL ADE DYNAMICS
n Zatarain’s n Reily Foods n Turnbull Bakeries
INCENTIVES þL ouisiana FastStart™ þT he Louisiana Quality Jobs Program þT he Industrial Tax Exemption Program
Privately-held Blade Dynamics was founded in 2007 to manufacture next generation wind turbine rotors, blade components and surface coatings. These new technologies are a paradigm shift in performance and reliability from prior technology. In 2010, this U.K. founded company announced plans to set up operations in the Michoud Assembly Facility as part of a $13M capital investment plan. n Louisiana Economic Development offered a customized incentive package of up to $30M to Blade Dynamics, including performance-based incentives of: $5.4M to offset MAF lease costs, $6M to offset equipment purchases, and $0.5M to reimburse projected relocation costs. Blade also took advantage of the hiring and training support of LED’s FastStart™ Program and had access to the state’s Quality Jobs Program. n Dow Company through its venture capital group, made a minority equity investment in Blade Dynamics and American Superconductor Corporation, a global power technologies company, acquired a 25% stake. n In 2011 Blade Dynamics rolled out its first New Orleans-made blade at the new manufacturing facility.
þT he Research and Development Tax Credit þH istorically Underutilized Business Zone (HUB Zone) þT ax Equalization Program þM odernization Tax Credit þE conomic Development Award Program
TEXTRON MARINE & L AND Established in 1969, Textron Marine & Land manufactures specialty equipment and armored vehicles for military and commercial use, such as the M1117 Armored Security Vehicle (ASV) for the U.S. Army, the Landing Craft, Air Cushion (LCAC) for the U.S. Navy, the Motor Lifeboat (MLB) for the U.S. Coast Guard, and Cadillac Gage turret systems. Textron Marine & Land operates in New Orleans, LA and Slidell, LA and currently employs approximately 1,000 people. n In April 2012, Textron Marine & Land unveiled a prototype of its Common Unmanned Surface Vessel, (CUSV), a 39-foot vessel that can detect mines and patrol waterways without a pilot on board. n If contracted by the U.S. Navy, the company will commence production in the New Orleans area, creating up to 200 new jobs.
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Good business should be more than just a balance sheet. To me, giving back means making a real and positive difference in people’s lives today and tomorrow. Entergy New Orleans has a long history of investing in our communities through employee volunteer programs, community grants and economic development leadership that helps encourage and fund new business and job opportunities. Charles Rice President and CEO, Entergy New Orleans, Inc.
I’m proud to work for a company that believes in supporting its employees and the community, and a company that takes responsibility for helping to make the world a better place. Learn more about our community and economic development activities at entergyneworleans.com. Giving back to the community. That’s The Power of People.
A message from Entergy New Orleans, Inc. ©2011 Entergy Services, Inc. All Rights Reserved.
A D VA N C E D M A N U FA C T U R I N G // NOTES
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TRADE & LOGISTICS
Image courtesy of the Port of New Orleans
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New Orleans is home to the most integrated national waterway, railroad, and highway infrastructure systems in the nation.
THE PORT New Orleans has been a center for international trade since 1718 when it was a colony founded by the French. Today, companies with global markets choose to locate in New Orleans thanks to its phenomenal port
The expansion of the Panama Canal ensures a long term competitive advantage for the US Gulf region … the Port of New Orleans Gateway will be a route that must
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ew Orleans’ prime location at the Mississippi River delta makes it a key hub for logistics, national and international trade, and distribution. With its world-class port and regional airport, efficient rail infrastructure, and interstate highway access, New Orleans is the optimal choice for any company involved in national and international trade. Ranking seventh in exports in the US, New Orleans’ role in the global marketplace continues to expand. In 2011, Louisiana’s worldwide merchandise exports increased by 33.3 percent over 2010. “Our success is a reflection of cooperation between our great ports and transportation system, our economic development agencies, our agriculture industry and food producers and all the businesses, large and small, which are growing their companies through international trade,” said Dominik Knoll, CEO of World Trade Center New Orleans.
be considered. DAV I D K E A R N E Y
Vice President The Kearney Companies, Inc
system. Connected by a 14,500-mile inland waterway system, six Class I railroads and the interstate highway system, the Port of New Orleans has long been the most desirable port for moving cargoes throughout the American Midwest. The Mississippi River moves over 500 million tons of cargo each year, cargo that includes more than half of the nation’s grain exports as well as coal, timber, iron, steel, rubber, coffee and manufactured goods. In the last five years, the Port of New Orleans’ container volume has almost doubled as the result of increased demand from the petrochemical and agribusiness sectors. This constant activity makes the Port of New Orleans America’s natural entry point to the global market. The 2014 completion of the expansion of the Panama Canal will open the Port of New Orleans to even more new sources of trade with Asia and the west coast of South America. The $5.2B Panama Canal expansion project will build a new lane of traffic along the Canal through the construction of a new set of locks, which will double capacity, allow more traffic and accommodate longer, wider ships.
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T R A D E & L O G I S T I C S // RESOURCES
160,500 JOBS SUPPORTED THROUGH ACTIVITY AT THE PORT OF NEW ORLEANS Amounting to $8B in economic impact State-wide
736,908 CRUISE PASSENGERS handled by the port in 2011.
477,363 TEUS MOVED AT THE NAPOLEON AVENUE CONTAINER TERMINAL IN 2011 Represents a 46% increase over 2009.
PORT FEATURES The Port of New Orleans is at the center of the world’s largest port complex on the Mississippi Delta—carrying over 8.6 million tons of cargo each year. Due to its impressive capacity, the Port of New Orleans has produced impressive results, including the nation’s top market share for imported steel, natural rubber, plywood and coffee. n $400M in Improvements: Over the past 10 years, the Board that governs the Port has invested in state of the art terminals, marshaling yards, wharves, cranes and transportation infrastructure. Improvements also include two new container Gantry Cranes. n World’s Most Active Waterway: Every year, over 6,000 ocean-going vessels move through New Orleans on the Mississippi River and Mid-America inland waterway system. n World’s Longest Wharf: The quay between the Henry Clay Avenue and Milan Street terminals is over two miles long and can accommodate up to fifteen vessels simultaneously. n America’s Most Intermodal Port: The Port of New Orleans boasts over 50 ocean carriers (including Maersk, Trans Sea Transport, China Ocean Shipping Company), 16 barge lines, 75 truck lines, and superior rail service. n Diverse Cargo: The Port of New Orleans has the capacity
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to handle diverse containerized cargoes such as apparel, food products, and consumer merchandise. General cargo volume averaged 8.6 million tons from 2003 through 2007. n Napoleon Container Terminal: This 61-acre $100M state of the art terminal opened in 2004 with a marshaling area of 48 acres. Features include four dockside gantry cranes and six rubber tire gantry cranes with annual capacity of 366,000 teus. n Foreign Trade Zone: Port of New Orleans’ defined Foreign Trade Zone allows foreign cargo to be brought into the US without being immediately subject to normal U.S. Customs regulations. n Dockside Cold Storage: Operated by New Orleans Cold Storage, this 160,000 s.f. dockside cold storage facility at the Port’s Jourdan Road Terminal houses ten “super blast” freezing cells. n Rail Access: The only seaport in the U.S. served by six Class I rail carriers — Burlington Northern/Santa Fe, Canadian National, CSX,
Kansas City Southern, Norfolk Southern, and Union Pacific. The Port of New Orleans has superior access to rail service. n Imported Steel: The Port of New Orleans is a prime port for the transport of imported steel from countries such as Japan, Brazil, Russia and Mexico. n No. 1 in Natural Rubber: The Port is the leader in handling imported natural rubber from countries such as Indonesia, Malaysia and Thailand. n Coffee: The Port of New Orleans has 14 warehouses, more than 5.5 million s.f. of storage space and six roasting facilities in a 20 mile radius making it the top coffee handling port in the country. n Advanced Bulk Processing: Dupuy Storage and Forwarding Corp. (first in U.S.) and Silocaf of New Orleans, Inc. (world’s largest) are two of the most modern bulk processing operations in the country.
RAILROAD New Orleans is the fourth-largest hub for America’s rail traffic, and freight traffic is expected to double by 2020. Six Class I railroads (KCS, CNIC, UP, BNSF, CSX and NS) serve the area representing a 132,000-mile network which ties the port community and local industries directly to every major North American market. In 2011, an estimated 420,000 rail cars passed through New Orleans each day, with cargo specializing in rubber, wood, paper, metals, building materials and food products.
PUBLIC BELT RAILROAD The New Orleans Public Belt Railroad is unique among the railroads of the United States as a publicly owned and operated terminal switching railroad. The Public Belt is owned and operated by the Public Belt Railroad Commission (NOPB). The NOPB has recently completed a major rehabilitation, completely rebuilding its bulk storage yard with steel cross ties and turnouts, and providing an additional 100 rail car storage spaces. In total, an estimated 4.5 million tons of freight travel through New Orleans Public Belt Railroad each year.
NEW ORLEANS INTERNATIONAL AIRPORT Louis Armstrong New Orleans International Airport (MSY) provides daily passenger and commercial service to major airports domestically and abroad, and handles approximately 80% of the State’s air traffic. Every year, approximately 8 million passengers fly into or out of this busy airport, along with approximately 10 million pounds of air freight and mail each month. MSY provides over 12,450 direct and indirect jobs and facilitates over $2.6B in tourism spending. MSY is currently modernizing its existing airport campus to be completed by 2013. Consultant teams are also investigating a $1B expansion including a new state-of-the-art airport terminal.
CLARENCE HENRY TRUCKWAY New Orleans has ensured that commercial trucks can transport freight efficiently and conveniently via 5.5 miles of secured highway, the Clarence Henry Truckway, which links the port to the Pontchartrain Expressway, a parallel 6-lane section of Interstate 10 (I-10) and U.S. Route 90. Open to commercial vehicles or preapproved vehicles on port-related business, the Clarence Henry Truckway gives truckers speedy and dedicated access, avoiding traffic lights and residential streets, to the Port’s Mississippi River terminals.
ROADS & HIGHWAYS
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CLASS I RAILROADS Serve the New Orleans Area
8 MILLION PASSENGERS FLY THROUGH The New Orleans International Airport annually
5.5 MILES OF SECURED HIGHWAY
To ensure trucks can transport frieght efficiently
U.S. Highway 90 Business (officially U.S. Highway 90-Z[4]) is a business route of U.S. Highway 90 in and around New Orleans. Anticipating heavy traffic, over half of the road was built to freeway standards and designated as Interstate 910. Interstate 910 crosses the Mississippi River on the Crescent City Connection and runs along the Westbank Expressway and part of the Pontchartrain Expressway in the New Orleans Central Business District. U.S. 90 runs along surface streets through New Orleans, crossing the Mississippi on the older and narrower Huey P. Long Bridge. Interstate 10 is a major transcontinental Interstate Highway in the South which runs across the southern part of Louisiana. It passes through the cities of Lake Charles, Lafayette and Baton Rouge before angling south of Lake Pontchartrain to the New Orleans area.
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T R A D E & L O G I S T I C S // CASE STUDIES
NEW ORLEANS TRADE & LOGISTICS Source: ICIC Number of Jobs (2011) Share Relative to the U.S. (2011) Output (2009) Projected Job Growth Average Wages % of Workers w/ High School Degree or Less % of Workers w/ Some College or More
7,969 0.7 $860,800,000 16% $51,600 49% 51%
FOLGERS A subsidiary of publicly-traded J.M. Smucker Company established in 1850, Folgers is a popular brand of coffee in the U.S. with annual sales of approximately $840M. With facilities already located in Louisiana, Folgers chose to implement its modernization/ expansion program here due to the benefits offered. n Folgers received a $2.1M tax credit through Louisiana’s new Modernization Tax Credit program, a 5% refundable state tax credit on capital expenditures to upgrade existing Louisiana manufacturing facilities. n In addition Folgers received $3M in relocation costs and $500,000 in infrastructure improvements provided by other Louisiana Economic Development programs to help upgrade its Orleans and St. Tammany parish facilities. n These infrastructure investments were part of a $70M capital redeployment program that solidified New Orleans as Folgers’ exclusive roasting and distribution hub. n The Folgers investment serves as a prime example of the value-added strategy, where the company took advantage of the existing coffee transport through the Port of New Orleans and ultimately shaved a total of $60M from its expenses n The company’s expansion resulted in the retention of 450 jobs and the creation 120 new, indirect jobs, and a $69M capital investment in its Louisiana facilities.
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T R A N S P O RTAT I O N C O N S U LTA N T S I N C . ( T C I )
Privately-held TCI was established in 1981 as a consulting firm specializing in fleet management consulting, transportation, fleet logistics / distribution, information systems, and logistics management. TCI relocated to New Orleans due in large part to the city’s logistical assets: the Port of New Orleans, six Class I railroads, and the New Orleans Public Belt railroad. n In 2012, TCI formed a public-private partnership with the New Orleans Public Belt (NOPB) to complete a rail infrastructure expansion project to accommodate approximately 300 new rail cars per month for the NOPB andover 1980 new TEU exports per month from the port. n The current expansion represents a $20M private sector investment, and will create 20 new direct permanent jobs. The new rail infrastructure will enable nearly $1.2M in incremental annual revenues to the NOPB from increased rail traffic. n With this expansion, TCI is increasing the level of value-added production handled within Greater New Orleans, and specifically, at the Port of New Orleans.
NEW ORLEANS COLD STORAGE (NOCS) Established in 1886, privately-held NOCS is the oldest cold storage company in North America. The company provides cold storage and logistics solutions for inbound and outbound refrigerated cargo. Supported by local incentives, NOCS was able to position itself to respond to the needs of the twenty-first century: n In 2009, NOCS was awarded $23.5M in Community Development Block Grant funding from the State of Louisiana to construct a new 147,000-square-foot refrigerated terminal at New Orleans’ uptown riverfront cargo complex. n The assistance provided by the state ultimately retained NOCS in Louisiana, increased port productivity and saved approximately 380 jobs.
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T R A D E & L O G I S T I C S // OPPORTUNITIES & INCENTIVES
O P P O RT U N I T E S AT T H E P O RT
Over 226 acres are available for lease along the Inner Harbor Navigation Canal in New Orleans. This industrial channel connects to the Mississippi River and Lake Pontchartrain. REPRESENTATIVE COMPANIES Representative companies in the Trade and Logistics sector include: n Agility Logistics n Canal Barge Co. n Con-Technical International n FedEx n Folgers n Intermarine n Kearney Companies n New Orleans Cold Storage n New Orleans Public Belt n Ports America n Transportation Consultants, Inc. n Tidewater n Westway Holdings
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INCENTIVES þL ouisiana FastStart™ þT he Louisiana Quality Jobs Program þE nterprise Zone Tax Credit Program þF oreign Trade Zone þR estoration Tax Abatement þP orts of Louisiana Investor Tax Credit
MOVING FREIGHT FORWARD > International freight forwarding > Import customs house brokerage > Commodity warehousing > Retail deconsolidation > State-of-the art supply chain management software > Over 700,000 sq. ft. of rail-served warehouse capacity > Over 45 acres of yard capacity in the New Orleans area > Locally owned & operated
THE KEARNEY COMPANIES, INC 4000 France Road Parkway | New Orleans, LA 70126-6153 USA | 504.831.0266 | Fax: 504.831.7669
www.KearneyCompanies.com
T R A D E & L O G I S T I C S // NOTES
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NEW ORLEANS IN THE NEWS
06.10.2012 // Times Picayune
NEW ORLEANS IS BEGINNING TO ATTRACT NATIONAL RETAILERS With a few recent retail wins, economic development officials and real estate professionals say that the prospect for getting more national stores into New Orleans is looking up. In May, after months of speculation that the shopping club Costco Wholesale Corp. would come to New Orleans, the city officially announced the retailer’s plans to open at the former Carrollton Shopping Center in 2013. 04.20.2012 // Forbes
AS FILMMAKING SURGES, NEW ORLEANS BECOMING SERIOUS CHALLENGER TO L.A. New Orleans and the state of Louisiana have managed to turn the region’s creative energy into something of an economic driver. Aided by generous production incentives, the state has enjoyed among the biggest increases in new film production anywhere in the nation. 4.13.2012 // Forbes
BILLIONAIRE INVESTOR JIM COULTER ON WHY NEW ORLEANS IS ONE OF THE BEST CITIES FOR ENTREPRENEURS A few weeks ago, an entrepreneur incubator in New Orleans called Idea Village held it’s annual Entrepreneur Week, a week-long festival of celebrating all things startup. One of the biggest figures involved was TPG group founder, prolific investor and Forbes billionaire Jim Coulter. 3.27.2012 //Times Picayune
NEW ORLEANS TOURISM BREAKS RECORD IN 2011 Tourism officials on Monday said 2011 was a banner year for New Orleans, with 8.75 million visitors spending a recordbreaking $5.47B.
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MAJOR MARKET OF THE YEAR
TOP INCENTIVES IN THE COUNTRY
427 Per 100k people
INDIVIDUALS START UP A NEW BUSINESS EVERY YEAR Per 100k people
4.8 MILLION CITY VISITORS IN 2011
#1 FOR LIVE MUSIC AND CONCERTS
COOLEST
CITY IN AMERICA FOR START-UPS
531 MILLION
in film production
MOST AFFORDABLE CITY FOR DINING
3.16.2012 //Wall Street Journal
THE BIG EASY’S BUSINESS LEAP FORWARD New Orleans has been reborn as a tech town. Really. 1.27.2012 //Bloomberg Businessweek
BUILDING STARTUP CULTURE IN NEW ORLEANS New Orleans has reinvented itself as a bit of an entrepreneurial hub, replete with incubators and accelerators and an Entrepreneur Week now in its fourth year that draws visitors from Google, Stanford, and venture capital firms. 12.29.2011 // NPR
IN KATRINA’S WAKE, NEW ORLEANS ENJOYS STARTUP BOOM New Orleans has long been known as one of America’s hardest luck cities…but the city’s darkest days have sparked a surprising new entrepreneurial spirit. 12.13.2011 //Wall Street Journal MarketWatch
NEW ORLEANS BUSINESS: MOST IMPROVED IN 2011 Once worst in MarketWatch study, Big Easy now in top third of class. 11.22.2011 // Forbes
THE BEST STATES FOR BUSINESS Louisiana was a big climber on the list as it ranked No. 30, up from No. 44 last year. 2.10.2011 // Forbes
THE U.S.’ BIGGEST BRAIN MAGNETS College graduates are heading in droves to Raleigh, Austin and, surprisingly, New Orleans.
A P P E N D I X // LIST OF INCENTIVES STATE LOUISIANA FASTSTART™ is a turnkey workforce-training program that provides customized recruitment, screening, and training to new and expanding companies at no cost. Louisiana FastStart is available at no cost to any manufacturing, corporate headquarters, warehouse and distribution, research and development or other strategic facility that commits to creating at least 15 new jobs, or any service-related operation that commits to creating at least 50 new jobs. Louisiana FastStart has been named the #1 Workforce Training Program by Business Facilities magazine. THE LOUISIANA QUALITY JOBS PROGRAM offers a refundable tax credit that provides up to a 6% rebate of wages for qualifying jobs for up to a 10-year term. Additionally, the program rebates the 4% portion of state sales/use taxes on capital expenditures. THE INDUSTRIAL TAX EXEMPTION PROGRAM abates property (ad valorem) taxes for up to a 10-year term. THE RESEARCH AND DEVELOPMENT TAX CREDIT provides up to 40% refundable tax credit for expenditures relating to R&D activity. HISTORICALLY UNDERUTILIZED BUSINESS ZONE (HUB ZONE) designations are available in many areas enabling federal bid preference. The federal government requires that 3% of contracts be awarded to HUB Zone certified small businesses. TAX EQUALIZATION PROGRAM: If your advanced manufacturing company is planning an expansion, this program equalizes the overall taxes between a Louisiana site and a competing site in another state. ENTERPRISE ZONE TAX CREDIT PROGRAM: provides a one-time $2,500 tax credit per certified net new job, and either a 4% sales/use tax rebate on capital expenditures or an investment tax credit equal to 1.5% of qualifying expenses.
FOREIGN TRADE ZONE: makes it possible to import materials and components into the U.S. without paying duties until they enter into the U.S. market. PORTS OF LOUISIANA INVESTOR TAX CREDIT provides private sector investors a credit of up to 100% of their capital expenditures for qualifying projects of $5M or more at a Louisiana public port. ANGEL INVESTOR TAX CREDIT: Provides up to a 35% tax credit for individual investors who invest in early stage, wealth-creating businesses. TECHNOLOGY COMMERCIALIZATION CREDIT AND JOBS PROGRAM: Provides up to 40% refundable tax credit on costs related to the commercialization of Louisiana technology and a 6% payroll rebate for the creation of new jobs MOTION PICTURE INVESTOR TAX CREDIT: A transferable credit of 30% of the investment greater than $300,000 is available for motion picture production and an additional 5% on Louisiana labor. DIGITAL MEDIA INCENTIVE: Louisiana provides a tax credit of up to 35% for payroll and 25% for qualified expenditures for Digital Media productions. SOUND RECORDING INVESTOR TAX CREDIT: The Louisiana Sound Recording Investor Tax Credit is a 25% tax credit designed to boost record production development by reducing the cost of new master music recordings —whether distributed by CD, digital download or as part of a soundtrack. “BROADWAY SOUTH” TAX CREDIT: For live, Broadwaybound productions – including theater, opera, ballet, jazz, comedy revues and variety entertainment – Louisiana provides a 25% state tax credit on base investment and construction costs and a 10% tax credit on payroll for Louisiana residents.
LIVE PERFORMANCE TAX CREDIT: This initiative provides up to a 25% tax credit on live performance production or infrastructure. Additionally, Louisiana has a transportation tax credit for the shipment of live performance-related property. CULTURAL PRODUCT DISTRICTS: Provide for tax free sales of original works of visual art, as well as tax credits for commercial and residential renovation within the specified district. MODERNIZATION TAX CREDIT: Provides a 5% refundable state tax credit for manufacturers modernizing or upgrading existing facilities in Louisiana STATE REHABILITATION HISTORIC TAX CREDIT: Provides a 25% state income tax credit to investors for renovations to income producing certified historic properties. ECONOMIC DEVELOPMENT AWARD PROGRAM (EDAP): Assists publicly owned infrastructure for industrial or business development projects that promote targeted industry economic development and that require state assistance for basic infrastructure development.
LOCAL RESTORATION TAX ABATEMENT: this property tax abatement provides five-year 100% abatement for the rehabilitation of an existing structure based on assessed valuation of property prior to beginning of improvements. FAÇADE IMPROVEMENT GRANT (Downtown Development District): The Program will provide a matching grant of 50% of eligible project costs, up to a maximum of Twenty Thousand Dollars ($20,000). Applicants must be able to document total project costs that the matching grant amount will apply to, and the construction contract and related documents must clearly delineate the costs associated with the Façade Improvement project, separate and apart from any other construction or
renovation costs. The DDD may request up to three bids for the planned work. Documentation of total costs and applicants’ other sources of funds must be provided before payment of the matching grant amount is paid. FRESH FOOD RETAILER INITIATIVE: This program provides direct financial assistance to to supermarkets, grocery stores, and other fresh food retail businesses through forgivable and/ or low-interest loans. The city is committing a total of $7M in D-CDBG funds to the program, with a 1:1 matching contribution also provided by Hope Enterprising Corporation. BROWNFIELDS PROGRAM: The New Orleans Office of Environmental Affairs maintains a database of potential Brownfield development sites and is willing to provide financial grants to facilitate the redevelopment of these sites. With the help of the United States Environmental Protection Agency (EPA) and the Louisiana Department of Environmental Quality (DEQ), the City of New Orleans has the tools necessary to assist in the clean up and redevelopment of Brownfields sites. PRIVATE PROPERTY GRAFFITI REMOVAL PROGRAM (Downtown Development District): To combat graffiti on private property, the DDD has instituted a program where private property owners can receive a 50% reimbursement up to a maximum of $1,000 to offset the expense of graffiti removal from their property including repainting cost. PAYMENT IN LIEU OF TAXES: Provides property tax exemption to bond-financed projects during the period where the issued bond is outstanding. NATIONAL REHABILITATION HISTORIC TAX CREDIT: Provides 20% federal tax credit to investors for renovations to income-producing certified historic properties.
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A P P E N D I X // CONTACT NOLABA
As the official economic development organization for the City of New Orleans, the New Orleans Business Alliance assists existing businesses interested in relocating or expanding to the New Orleans market. Our dedicated staff can offer you the following support: n Site Selection Assistance n Market Intelligence n Fiscal and Economic Impact Analysis n Municipal Liaison Support n Project Management Support n Connection to key leaders, companies, academic institutions and other resources in New Orleans
Please contact us for more information about opportunities in New Orleans or for any of your business needs. We look forward to working with you soon. NEW ORLEANS BUSINESS ALLIANCE 935 Gravier Street, Suite 2020 New Orleans, LA 70112
TELEPHONE
504.934.4500.
info@nolaba.org
WEBSITE
www.nolaba.org
@NewOrleansBA
NewOrleansBusinessAlliance
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A P P E N D I X // NEW ORLEANS BUSINESS ALLIANCE BOARD MEMBERS 2012
HENRY COAXUM, Chair
HONORABLE MAYOR MITCHELL LANDRIEU, Mayor of the City of New Orleans
PATRICIA HIGHTOWER, President and CEO, Bayou Equity Mortgage
CHARLES RICE, President and CEO, Entergy New Orleans, Inc.
LESLIE JACOBS, Vice Chair Executive Vice President of Strategic Comp
DWAYNE BERNAL, Owner and President, Royal Engineers and Consulting
DARLENE KATTĂ N, Executive Director, Hispanic Chamber of Commerce of Louisiana
JUSTIN T. AUGUSTINE III, Treasurer
HAL BROWN, Partner, Paladin Capital Group
Vice President, Veolia Transportation; CEO, New Orleans Regional Transit Authority
ANDREA CHEN, Chair, Propeller
MICHAEL W. KEARNEY, SR., President and CEO, Kearney Companies, Inc.
RONALD J. SHOLES, President, New Orleans Jazz and Heritage Foundation; Partner, Adams & Reese LLP
President, Coaxum Enterprises, Inc.
JOHN C. HOPE, III, Secretary Former Chairman and CEO, Whitney National Bank and Whitney Holding Corporation
HONORABLE JACQUELYN BRECHTEL CLARKSON, Councilmember-At-Large, New Orleans City Council President
ANDREW WONG, CEO, Jazzmen Rice LLC
RITA BENSON LEBLANC, Owner and Executive VicePresident, New Orleans Saints
A P P E N D I X // NEW ORLEANS BUSINESS ALLIANCE INVESTORS
LEADERSHIP INVESTORS: $25,000+
FOUNDATIONAL INVESTORS: $10,000 - $25,000
Adam & Reese AT&T Barrerie Construction Company* Boh Bros * Capital One Canal Barge Coaxum Enterprise Crescent Crown Distributing Companies Georges Enterprises Goldring Family Foundation Helis Oil & Gas Company, LLC. * IMTT Kennedy Financial Laitram* Leslie Jacobs * New Orleans Board of Trade Veolia Transportation*
PARTNER INVESTORS: $5,000 - $10,000
Iberia Bank Dian Winingder Durr Heavy Construction First NBC Heavon Company HRI Properties Jeff & Stephanie Hayes Jones Walker Kailas Companies Kearney Properties * Manning Architects River Parish Disposal Royal Engineers & Consultants Transoceanic Trading & Development Woodward Design + Build
SUPPORTING INVESTORS: UP TO $2,500
Derbes Tatje Relators Laurel Outdoor Bourgeoius Bennett Citizens for 1 Greater New Orleans In The Event NewCorp, Inc. Ochsner Raymond James Morgan Keegan & Company, Inc. Andrew Wong Andrea Chen Bayou Equity * Darlene Kattan John Hope, III
* Indicates 2011 & 2012 Investor
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935 Gravier Street, Suite 2020 New Orleans, LA 70112 Phone: (504) 934-4500 Fax: (504) 265-8232 info@nolaba.org www.nolaba.org