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Editor’s Note
10 Years Later I
t’s inescapable. For months now there has been all types of coverage leading up to the fact that this month is the 10 year anniversary of Hurricane Katrina. On our end, there’s no way we couldn’t honor the anniversary of the devastating event that changed every aspect of this city forever, including the business community. Originally published in 2003, Biz New Orleans was one of the casualties of the storm. It wasn’t until 9 years later that the magazine was brought back to life in October of last year. We have since done our best to celebrate the growth and rejuvenation of virtually every industry, and the introduction of a few new ones. In this issue we mourn our losses — restaurants that never returned, homes and businesses destroyed, industries forever changed. A majority of these pages, however, are dominated by hope and success — the story of a city that’s bounced back stronger than ever thanks to the determination and drive of not just locals, but people from around the world that, thanks to a horrible disaster, were introduced to this city, so unlike any other. This is the New New Orleans, and while a great success story, the work is far from over. Industries struggling to boost our economy, like biotechnology and film, are fighting for funding, while the cost of living increases and the gap between rich and poor widens, placing homeownership in many areas out of reach for so many. We’ve come so far and have so much to be proud of. I have every confidence that these challenges, like all the others, are soon to be just another success story.
Happy reading.
Kimberley@BizNewOrleans.com
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AUGUST 2015 | volume 1 | issue 11
Publisher Todd Matherne Editorial Editor-in-chief Errol Laborde Managing Editor Kimberley Singletary Art Director Antoine Passelac Photographer Cheryl Gerber Web Editor Kelly Massicot Assoc. Multimedia News Editor Leslie T. Snadowsky Contributors Ryan Delaney, Robert Edgecombe, Ginny LaRoe, Lucie Monk, Jason Perry, Chris Price, Peter Reichard, Kim Roberts, Anne Roderique-Jones, Judi Russell, Jennifer Gibson Schecter, Erin Shaw, Melanie Spencer, Keith Twitchell, Bonnie Warren advertising Vice President of Sales Colleen Monaghan Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Account Executive Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 Account Executive Courtney Andrée Courtney@bizneworleans.com (504) 830-7225 PRODUCTION Production/Web Manager Staci McCarty Production Designers Ali Sullivan, Monique DiPietro, Claire Geary Traffic Coordinator Jessica DeBold administration Chief Executive Officer Todd Matherne President Alan Campell Executive Vice President Errol Laborde Vice President of Sales Colleen Monaghan Director of Marketing & Events Cheryl Lemoine Administrative Assistant Denise Dean Distribution Manager John Holzer Subscriptions Manager Sara Kelemencky
110 Veterans Blvd., Suite 123, Metairie, LA 70005 (504) 828-1380 Biz New Orleans is published monthly by Renaissance Publishing, LLC, 110 Veterans Blvd., Suite 123, Metairie, LA 70005; (504) 828-1380. Subscription rate: one year $24.95, two year $39.95, three year $49.95 — foreign rates vary call for pricing. Postage paid at Metairie, LA, and additional mailing entry offices. POSTMASTER: Send address changes to Biz New Orleans, 110 Veterans Blvd., Suite 123, Metairie, LA 70005. Copyright 2015 Biz New Orleans. No part of this publication may be reproduced without the consent of the publisher. The trademark Biz New Orleans is registered. Biz New Orleans is not responsible for unsolicited manuscripts, photos and artwork, even if accompanied by a self-addressed stamped envelope. The opinions expressed in Biz New Orleans are those of the authors and do not necessarily reflect the views of the magazine or owner. 6
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Contents
80
42
36
Features
From the Lens
36 10 Years By the Numbers
70 Great Offices
A look at the state of the city with data
compiled before and since Hurricane Katrina
80 Why Didn’t I Think of That?
42 BioTech Battles
The successes and uncertainty surrounding
Canal Street’s BioInnovation Center
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Katrina inspired inventions CrankCase and CrankBox
88 Behind the Scenes
Wm. Raymond “Ray” Manning of Manning Architects
New Orleans Streetcars
On the Cover 10 years, 5 categories — Biz New Orleans takes a look at the city’s recovery post-Katrina.
Contents
26
30
74
Columns
Perspectives
News
18 Dining Biz
52 Oil & Gas 56 Healthcare Innovation
16 Calendar
60 Real Estate & Construction
Remembering the restaurants lost to Katrina
20 Tourism Biz
White and Dirty Linen nights boost summer sales at local art galleries.
22 Sports Biz
The Saints’ “Billy Joe” era pre-Katrina is nothing to reminisce over.
24 Film Biz
The calm is here following the tax credit storm.
26 Entrepreneur Biz
Time to brush up on your storytelling skills.
28 Biz Etiquette
What not to say in various business settings
30 Tech Biz
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Are robots poised to take over?
August 2015 BizNewOrleans.com
Sometimes down, but far from out
A decade of change and new faces
The reconstruction and rejuvenation of New Orleans
66 Guest Viewpoint
What employers need to know, and do, following the recent same sex marriage ruling
Upcoming events not to miss
32 Biz Bits
Industry news
74 Biz Person of the Month
Q&A with Jim Pate, executive director of New Orleans Habitat for Humanity
86 Around Town – Events
Industry gatherings
BizNewOrleans.com August 2015
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Publisher’s Note
Recognition
L
ast month our Renaissance Publishing editorial team took home more awards than any other print media company at the Press Club of New Orleans’ 2015 Excellence in Journalism awards ceremony. My partner and EVP — Editor in Chief Errol Laborde, and his team were finalists and won an impressive 26 awards.
Renaissance Publishing is a very diverse media company, publishing not only business news in Biz New Orleans, but also lifestyle stories in our flagship title New Orleans Magazine and in many other niche and regional titles. All of these titles can be found online at MyNewOrleans.com, along with our award-winning bloggers. Among the 26 Press Club finalist awards were some of our custom publishing titles, New Orleans Saints Game Day, the Official New Orleans Jazz Fest program, New Orleans Opera & Ballet programs, Port Record for the Port of New Orleans and Souvenir for the New Orleans Hotel Collection. We are so proud to publish for these organizations and so many others. We have a dynamic team of editors, graphic designers, writers and photographers and the entire company is so proud of our editorial team and their award-winning work. Great Job! PS. Hope to see you at New Orleans Sushi Fest, sponsored by Royal Honda on August 16 — NewOrleansSushiFest.com Todd Matherne
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Calendar Thursday, August 6 New Orleans Chamber of Commerce Monthly Women’s Business Alliance Riverview Room with the New Orleans School of Cooking 5 – 7 p.m. Riverview Room 600 Decatur St., 4th level NewOrleansChamber.org
Wednesday, August 26 Jefferson Chamber of Commerce Prosper Jefferson Seminar: Marketing - Branding 9 – 10 a.m. JEDCO Conference Center 700 Churchill Parkway, Avondale JeffersonChamber.org
Wednesday, August 26
Saturday, August 9 NOLA Marketplace Expo 10 a.m. – 4 p.m. Lakeside Shopping Center WGNO.com
Tuesday, August 11 New Orleans Chamber of Commerce Power Breakfast 8 – 9:30 a.m. Chamber Office Building 1515 Poydras St., 5th Floor Free for members, $10 non-members RSVP at NewOrleansChamber.org
Thursday, August 13 ABWA Crescent City Connections Monthly luncheon featuring Dr. Laura Badeaux, Director of Louisiana Center for Women and Government 11 a.m. – 1 p.m. Heritage Grill by Ralph Brennan 111 Veterans Memorial Blvd., Metairie ABWANewOrleans.org
Tuesday, August 18 St. Tammany Chamber of Commerce Small Business – BIG POTENTIAL A showcase of leading business opportunities coming to the state By the Louisiana SBDC at Southeastern Louisiana University 11 a.m. – 1 p.m. Causeway Branch Library 3457 Hwy 190 Mandeville, LA StTammanyChamber.org
August 20-21 2015 LABI Workers’ Comp Conference L’Auberge Casino 777 L’Auberge Ave., Baton Rouge LABI.org
Friday, August 21 Jefferson Chamber of Commerce Business & Breakfast 7:45 – 9:30 a.m. Holiday Inn Metairie Airport 2261 N. Causeway Blvd., Metairie JeffersonChamber.org
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New Orleans Chamber of Commerce Learn How to Do Business With NASA 7:30 a.m. – 4 p.m. NASA Michoud Assembly Facility 13800 Old Gentilly Road, New Orleans RSVP Required Neworleanschamber.org/events
Friday, August 28 SMH Lunch & Learn Series Free monthly educational series on current health care issues and treatments 11:30 a.m. – 1 p.m. SMH Founders Building, 1st Floor Conference Room 1150 Robert Blvd. To register, call (985) 280-2657
Tuesday, September 1 BRAC Signature Speaker Oh the Places We Will Go: Transportation Infrastructure and Regional Growth 11 a.m. – 1 p.m. Manship Theatre — Shaw Center for the Arts 100 Lafayette St., Baton Rouge BRAC.org
We’d love to include your business-related event in next month’s calendar. Please email details to Editorial@BizNewOrleans.com.
BizNewOrleans.com August 2015
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Columns | Dining Biz
10 Years Gone Remembering restaurants that disappeared with Katrina
M Peter Reichard is a native New Orleanian who has written about the life and times of the city for more than 20 years, including as a former newspaper editor and business journalist.
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emories are long in this town, and that goes for restaurants as much as anything else. I never had a chance to dine at Anything Goes, Bali Ha’i, Chez Helene, Eddie’s, Fitzgerald’s, Kolb’s, LeRuth’s or T. Pittari’s, but I can tell you where they were and why people remember them. File under: “Is not there anymore.” A decade ago, Katrina swung her scythe across the New Orleans restaurant field. Restaurants had closed their doors as the disaster approached, thinking they’d be back to flip on the lights in a week. But there were some remarkable casualties. Barrow’s Shady Inn off Earhart Boulevard was an icon in Hollygrove and part of the
Creole-soul pantheon in New Orleans. Some argued it had the best catfish in town, if not the universe, and Bill Barrow’s restaurant fried its fillets to perfection for more than half a century. Bruning’s was the oldest of the batch; it opened the year before Abraham Lincoln was elected president. It was also, in a sense, the first to die. Situated on the lakefront at West End, it was the hurricane, rather than faulty levees, that blew it to bits. The late Chef Gerard Crozier ran Chateaubriand on Carrollton and Bienville. The place married the grand feeling of appeasement that comes with a good steak to the elegance and refinement of Crozier’s French cuisine. Crozier had been a
fixture on the restaurant scene for decades, with eponymous restaurants in New Orleans and Metairie. Right around the corner from Chateaubriand, in a former church on the corner of Iberville and North Scott streets, was Christian’s. A spinoff of Galatoire’s, it was owned by a scion of the family and helmed by a former Galatoire’s chef. It brought Mid-City cuisine to its zenith. Restaurant Mandich was one of those quietly great neighborhood restaurants. Located on St. Claude Avenue in the upper Ninth Ward (aka Bywater), it had the sort of feel that a sophisticated transplant to the area today would laud as “authentic.” It was, in short, a regular New Orleans restaurant. Some people might prefer to spit upon the grave of the original Ruth’s Chris steakhouse on North Broad Street, where it had a nearly 80-year run. Almost immediately after the levees broke in 2005, the Ruth’s Chris corporate empire relocated its national headquarters from New Orleans to Orlando. Passers-by saw a giant sign posted on the abandoned corner of Broad and Orleans. It read: “Remember: When the bodies from Katrina were still being collected, when we needed faith and heroism, Ruth’s Chris fled.” Ow. Founded in the 1940s, Weaver’s on Navarre Avenue was one of Lakeview’s oldest institutions, and it looked the part. With its old-timey décor, it had virtually everything you wanted in a poor-boy joint – with roast beef gravy on top. For me, two dead restaurants hold unusual meaning. Purple Roses sold Vietnamese pho in the erstwhile Chinatown near the intersection of Tulane and Loyola avenues. One day in October 2002, a buddy of mine – who went on to become a prominent food critic in town – shot me an email at lunchtime, asking to meet at Purple Roses. When we arrived at the counter, I noticed a lovely girl in line behind me. After lunch, I went up to say hello to her. “I like your shirt” were my first words to the future mother of our children. (Don’t laugh. It worked.) Two and a half years passed, and that girl and I were having dinner at Indigo. The restaurant overlooked a garden next to the ancient Benachi Mansion on Bayou Road. Indigo transported you to another, more romantic time. This is what I was banking on as I slid an engagement ring across the tablecloth. A few months later, the levees broke. n Photo Thinkstock
BizNewOrleans.com August 2015
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Columns | Tourism Biz
Laundry Service Whitney White Linen Night and Dirty Linen Night showcase art galleries in August.
F Jennifer Gibson Schecter was
once a tourist in New Orleans herself and is now proud to call NOLA home. Prior to New Orleans, she wrote for publications in the Midwest and New York City. She advises travelers to ask their cab/pedicab/ gondola driver for their favorite restaurant and taking a chance.
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ashion and art are inextricably linked, and New Orleans knows how to highlight both. August brings not one but two nights of gallery hopping and revelry in your summer finest, and then dingiest. Whitney White Linen Night, produced by the Contemporary Arts Center (CAC), kicks off the month on Aug. 1. This year marks the 21st for the annual block party that celebrates the CAC and art galleries along Julia Street and in the vicinity of the Warehouse District. The crowd is encouraged to wear white linen to honor the Southern tradition of wearing the kind of clothing that kept you as cool as possible in the days before air conditioning. Local stores like Rubenstein’s and Perlis carry
linen clothing to suit the needs of any Southerner or visitor in our hot summer months. But buy your linen early. According to Pat McCausland of Perlis Magazine Street, “We carry white linen suits for spring and summer weddings, and the more casual linen shirts, pants and shorts for White Linen Night. The week before the event we have a full stock, but the day of the event it’s always a frenzy, and the stock gets bought out.” Attendance at White Linen night has been measured at 45,000 by the New Orleans Police Department, and the crowds flow from gallery to food vendor to mobile bar and back again as the night progresses. There will be three music stages and over 20 local restaurant and food truck
vendors participating. While White Linen Night is a free block party, the after party inside the Contemporary Arts Center is always a spectacular event and an important fundraiser for the CAC. This year the center will open a group show of Louisiana artists that explores how the art world has shifted in the 10 years since Hurricane Katrina. Special access to their exhibits, not to mention the air conditioning, caps the night off. After giving yourself a week to recover and hang your new art purchases, you can do it all again wearing the same outfit. Dirty Linen Night follows on Aug. 8 and takes an irreverent twist on White Linen Night by encouraging participants to wear the same clothes they wore the previous week, without laundering them first. Taking place in the French Quarter along Royal Street, Jackson Square and Dutch Alley, this evening highlights not only the art galleries in the Quarter, but the antique shops and boutiques along that historic stretch. Street musicians accompany shoppers, and many of the participating gallery and shop owners offer dirty martinis and dirty rice to playfully enforce the event’s theme. Visitors should also watch out for dirty laundry baskets decorating the sidewalks. Gallery Burguieres, located at 736 Royal St., will take part in Dirty Linen Night. “This will be our sixth year participating,” says resident artist Ally Burguieres. “It was basically our grand opening six years ago, and we do it every year.” One thing Burguieres observed about this event is that while she typically gets a lot of tourists in the gallery, during Dirty Linen Night “we see a lot of locals. It gets the locals down into the Quarter, and it’s a nice event for summer.” Many gallery and shop owners have come to rely on the event for an uptick in profit in the typically slower summer months. “We see a lot in sales, with a focus on our original paintings as opposed to our prints,” Burguieres says. “We will be premiering five new pieces at Dirty Linen this year.” The first two Saturdays of August truly celebrate artists and small business owners who support the arts in New Orleans. And like so many New Orleans traditions, white linen never goes out of style. For more information on White Linen Night, visit CACNO.org. Details on Dirty Linen Night can be found at facebook.com/ DirtyLinenNight. n Photo Cheryl Gerber
BizNewOrleans.com August 2015
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Columns | Sports Biz
Ode to the Billy Joes Brees’ brilliance causes darkest days of Saints football to be laughable
A
chris price is an award-winning journalist and public relations principal. When he’s not writing, he’s avid about music, the outdoors, and Saints, Ole Miss and Chelsea football.
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s the dog days of summer arrive and the sports world seemingly stagnates, hope is in full bloom as NFL teams begin their preseason regimen. The New Orleans Saints opened training camp at The Greenbrier resort in White Sulphur Springs, W.Va., on July 29, with a goal of improving on a lackluster 2014 season, which saw them get knocked out of the playoffs in the second to last game of the season by the archrival Atlanta Falcons. For most of the Saints’ 48-year history, last season’s 7-9 record would be considered palatable. But for the past 10 years, it has become simply unacceptable. The main reason for that is Saints captain and quarterback Drew Brees. Like much of New Orleans after Hurricane Katrina and the flood that followed the storm, the Saints have served as an embodiment of the city’s recovery. The waters that filled the city when levees and floodwalls crumbled washed away much of the leth-
argy that previously plagued the city. Looking back on the prestorm Saints, fans can now lightheartedly joke about the team that was assembled in our city’s name. Think back to the end of the last millennium. In the late ’90s, the Saints’ offense was lead by not one, but two Billy Joes. Both had New Orleanians thinking about jumping off the Mississippi River bridge. With all due respect to Mr. Hobert and Mr. Tolliver, I think I can speak for the entire Who Dat Nation in saying I’m glad those days are over. As starters, the Billy Joes led the Saints to a 6-17 record, winning just 35 percent of the time. In 1997 and 1998, the Saints finished 6-10 in the old NFC West. In 1999, they dropped to 3-13. In his three years in New Orleans from 1997-1999, Hobert went 4-8
in 12 starts, completing 50.2 percent of his passes for 2,031 yards, 13 touchdowns, 14 interceptions and a 66.1 quarterback rating. Tolliver played for the Saints for two seasons. He started 11 games, going 2-9, completing 53.3 percent of his passes for 3,343 yards with 15 TDs, 20 picks, and a QB rating of 69.2. Those teams were lead by head coach Mike Ditka, a Hall of Fame player and coach of Super Bowl XX winners the Chicago Bears. While Ditka had the pedigree, it was obvious that the game had bypassed him by the time he paced the sidelines of the Superdome. Ditka was followed by Jim Haslett, who led the Saints to a division crown with a 10-6 record in 2000, but the team was mediocre for the next four seasons — winning as much as they lost. In the flood-ravaged 2005 season, the Saints went 3-13. Haslett was shown the door, and neither he nor Ditka have been a head coach since. The Saints’ fortune turned forever in 2006 with the hire of head coach Sean Payton and his insistence on signing quarterback Drew Brees. Having been released by the San Diego Chargers and passed on by the Miami Dolphins due to a perceived bum shoulder, Brees came to the Saints with something to prove. It was the best hire the Saints have ever made. Brees’ run in New Orleans has been magical. He immediately made the Saints a competitor, leading the team to the NFC Championship in his first season and a Super Bowl title in his fourth. He has been a bright spot for New Orleans, as well as the NFL. The 36-year-old QB has two years remaining on his contract. He’s due $26.4 million this season and $27.4 million in 2016. In the “Billy Joe” era, a Saints fan could buy a ticket for $5. Now 77,000 people are on the waiting list for season tickets. Much of that should be credited to Brees. A year ago, he said he feels like he can play until he’s 40. I’d like to see the greatest Saint retire in New Orleans. I wouldn’t be surprised to see the Saints and Brees work on an extension that would reduce his salary cap hit and keep him in New Orleans until he retires. He deserves it. And so do the fans. n
QB
Years
Starts
Record
Completion %
Yards
TDs
Ints
Rating
Hobert
3
12
4-8
50.2
2,031
13
14
66.1
Tolliver
2
11
2-9
53.3
3,343
15
20
69.2
Brees
9
143
87-56
67.5
43,685
316
141
98.8
Photo Rusty Costanza
Columns | Film Biz
It’s Not As Bad As We Thought The film industry takes a deeper look at the tax incentive cap and starts to breathe again.
W
Kimberley Singletary is the
managing editor of Biz New Orleans magazine. A 20-year Southern California veteran, she has been surrounded by the film industry for most of her life and is thrilled to be covering its emersion in her newly adopted home.
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hen news broke that the Louisiana film industry tax credits were going to be capped, and at $180 million — $70 million less than what was redeemed in 2014 — concern was immediate and profound. After a few weeks, however, talks of lawsuits are gone and the industry seems to be settling in and trying to be patient. “August is typically a slow month for film here every year,” says George Steiner, president of Film Works New Orleans, a 37-acre film studio that opened in New Orleans East in March. “But we were scheduled to have a project start filming here last week for six months and they canceled because of the credit changes. I think it spooked them.” Although he says the studio
is about to go into its first “dead zone” since it opened, Steiner says he’s optimistic. “Those people that moved to Atlanta missed the boat,” he says. “All four candidates for governor say they want to work to fix this. There’s no doubt it’s created bad PR, but I think there’s hope.” Herbert Gains, founder of Big Easy Studios, also in New Orleans East since 2011, shares Steiner’s positive view. “It’s still a good program, but it’s going to be contingent of the studios’ ability to sell tax credits,” he says. “We’re in a wait and see period right now.” Leonard Alsfeld, president and CEO of FBT Film, the largest film credit broker in Louisiana, says the cap may even prove to be good for the industry. “Sixty percent of the credits
issued in the last five years were to the big studios — Paramount, Disney, MGM,” he says. “I think that with the cap those $100 million-plus movies probably won’t be coming back in the next three years but I don’t read that as a bad thing. Those studios import so much of their work that local workers are often given the lower level jobs, not the high paid jobs we want.” Alsfeld says that instead the cap opens up “a tremendous amount of room for independent movies, especially without big studios tying up locations for months and months at a time.” As of Jan. 1, all tax credit brokers in the state will also have to register with the Office of Financial Institutions, a change Alsfeld welcomes. “That’s going to clean out the questionable folk and just leave the experienced brokers like us,” he says, noting that FBT Film is the only bankowned tax credit broker in the state, which is something he feels will really be an asset with the new changes. “Everybody is talking about the cap,” he says, “but the real issue is how the credits are issued.” Alsfeld explains that among the changes are the fact that credits will no longer be issued when the money is spent, but on the state’s timetable. “Right now the state website says that it will be about 180 days before a refund is looked at after it’s filed,” he says. “Which means a project that could have filed for their refund in their 2015 taxes can now easily get pushed to 2016. And then of course if the cap is met for the year, the credit is not valued and instead gets numbered and put in place for next year. Alsfeld says his company, however, can eliminate the entire cap issue and any worries of a timely refund by buying a production’s credits. “We’re owned by a bank so we are literally the only company that can say that capital is not a problem.” While this advantage will likely be good for business, he has concerns about the process. “It’s mid-July and we still don’t know the outstanding balance [amount left on the cap] and we’ll only be able to check it once a month.” Overall, the consensus among the industry seems to be hopeful optimism focused on 2016’s governmental changes. “Hopefully the next governor will be able to install the confidence we’ve lost,” Gains says. “I think that once the dust settles, we’ll be fine.” n Photo Thinkstock
BizNewOrleans.com August 2015
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Columns | Entrepreneur Biz New Orleans Ranked in Top 10 Percent of Entrepreneurial Cities in U.S A recently released study by the personal finance website WalletHub ranked New Orleans in the top 10 percent of American cities for entrepreneurism. A total of 150 cities were included in the rankings. The city scored well in its access to resources such as employee availability, office space affordability and financing accessibility. Not surprisingly, New Orleans lagged in areas such as workforce education level. And they didn’t even consider the music, food and joie de vivre!
Once Upon A Time... An entrepreneur must be a storyteller.
F Keith Twitchell
spent 16 years running his own business before becoming president of the Committee for a Better New Orleans. He has observed, supported and participated in entrepreneurial ventures at the street, neighborhood, nonprofit, micro- and macrobusiness levels. 26
August 2015 BizNewOrleans.com
rom the dawn of language, storytelling has been a revered art form. Everybody loves a good story. Today, storytelling is an essential business art form. An entrepreneur who cannot tell his/her story (or get it told) is doomed. Before we go any further, let’s make it clear that we are referring to nonfiction stories – myths and fables won’t get you far in the business world. Starting with their first business plans, entrepreneurs have to be able to translate the visions in their heads into compelling storylines. Investors absolutely need
numbers, facts and research, but they also want the narrative from startup to success. Storytelling is equally vital to attracting customers. Almost all advertising is storytelling: automobile commercials are miniromance novels, beer ads are 30-second buddy f licks, allergy medicines spin tales of the great outdoors, and on and on. When it comes time to turn your startup idea into a story, here are a few key pieces that will help you land on the business bestseller list: Distinguishing variables: What sets your widget (or widget repair service) apart
from the rest in a meaningful way? Being red when all the competitors are blue is unlikely to resonate, but being faster or less expensive or lasting longer are variables that will grab attention. Benefits, not features: Talking about what your product does has some value. Talking about how your product makes someone’s life better will actually sell it. One useful tactic here is to think about why you came up with the idea in the first place – what problem were you trying to solve? Connect to people: Place your story in the context of your target audience’s daily life. What are their priorities? Their emotions? Their dreams? Connect your product or service to what matters to your customers – this is why beer ads sell partying and car ads sell romance. Every successful idea has a great story associated with it, but not everyone is a great storyteller. If you’re struggling to communicate, there’s plenty of professional assistance available. And if you are a great storyteller, that’s a business opportunity right there. As a writer, I admit to being a little biased when I say that pictures can certainly help – but they’re seldom worth a thousand words. There’s nothing like a well-told story to connect your idea to investors, customers and success. n Photo Thinkstock
BizNewOrleans.com August 2015
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Columns | Biz Etiquette
Don’t Say That … From inappropriate comments to illegal questions, some things are better left unsaid.
T Melanie Warner Spencer is editor of
New Orleans Bride Magazine. Her writing has appeared in the Austin American-Statesman, the Houston Chronicle, the Chicago Tribune and Reuters. Spencer’s ever-expanding library of etiquette books is rivaled only by her everready stash of blank thank-you notes. Submit business etiquette questions to Melanie@ MyNewOrleans.com.
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his month I received a few questions regarding what to say, or not to say, in business settings from boardrooms to bars. Q: What’s the correct response to an inappropriate comment at a business function? Without going into specifics, I was at a networking event and a male business acquaintance commented on a certain area on my body. I always make it a point to dress and behave professionally and expect the same from others, but this happens more often than I’d like to admit. It makes me feel uncomfortable and frankly a bit offended at times. Considering I’ll continue to work with the person, what’s the most professional, appropriate and non-offensive way to respond in this type of situation? A: Unfortunately, this type of behavior is still far more common
than it should be, and often the other party doesn’t realize their comments or behavior are at best inappropriate for a business setting and at worst sexist. Rather, they believe they are just paying a nice compliment. For the record, the workplace or a networking function — even those held at a watering hole, restaurant or some other casual locale involving alcohol — is not a singles bar. This goes for people of all genders, sexual orientations and marital statuses and applies to the office, the golf course and happy hour. It’s important to address the offensive comment, but since this is a business acquaintance or potential client, it’s key to proceed with caution. In the South especially, but really no matter where you are, it’s often best to make your point with a healthy dose of humor tossed into the mix. A fellow journalist
friend of mine from Texas often says something to the tune of, “Well, thank you, Mr. Smith! I bet you say that to your beautiful wife all the time, don’t you?” Then change the subject to a relevant business topic. If the person isn’t married, or you aren’t sure, and you want to be more direct, say with a combination of seriousness and levity (which usually can be accomplished with a smile and a raised eyebrow), “Can we please stay focused here?” Again, move past it quickly with a subject change to keep the conversation flowing and avoid dwelling on the misstep. Q: Recently, I was promoted into a management position at my company. I know there are certain questions it’s illegal to ask when interviewing a job candidate, such as inquiring about his age. What other questions should I avoid when conducting interviews? A: Congratulations on your promotion! Yes, there are several questions that are off the table when conducting interviews. Not only is it potentially offensive to ask about certain subjects, but it could result in a lawsuit filed against you and your company. Essentially, federal law makes it illegal for employers to base employment decisions on someone’s “protected characteristics,” for example, marital status, plans to have children, drug and alcohol use, and national origin. Some states have additional protections, outlawing questions that could reveal things like the applicant’s sexual orientation. “An employer’s interview question about a protected characteristic can be evidence of discrimination,” cautions the website XpertHR.com. Watch questions about social media as well. As of Aug. 1, 2014, employers in Louisiana are prohibited from asking questions that would allow them to access or observe someone’s personal social media accounts. When in doubt — in a meeting, a networking event over cocktails or during an interview — keep personal matters out of the conversation. If you have to make small talk, brush up on your New Orleans Saints news. Who (could be offended by) dat? n Photo Thinkstock
BizNewOrleans.com August 2015
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Columns | Technology
Jobs? We Don’t Need No Jobs! And I, for one, welcome our new robot overlords.
I Jason MICHAEL Perry is the director
of the Drupal Practice at Fig Leaf Software. I’m too lazy to vacuum so I’ll just trigger my Roomba from my iPhone and maybe it can also write next month’s column… While I nap, tweet me at @ jasonmperry or email me@jasonmichaelperry. com.
30
August 2015 BizNewOrleans.com
t’s kind of scary when you think about technology and innovation. With all the greatness it brings, it also slowly forces us to ask a really scary question: Why do we need humans? That sentence may sound a tad provocative, but the more you look at the pipeline of technologies the quicker you realize that they have simply bulldozed industry after industry. Heck, I would say that the majority of us are not in competition with each other but in competition with increasingly more intelligent robots and computerized systems. Think about it. Right now every car manufacturer is researching cars that drive themselves — bye-bye taxis and car sharing. Travel sites decimated travel agents. Tollbooth operator? Last tollbooth I drove through, I tossed coins into a bin or slid a few dollars into a machine. Work in a factory? Well, you know firsthand that modern factories look more like a sci-fi movie than the blue-collar iron mills of old. The reality is that bit by bit, technological advances are quickly eroding jobs. In our age, white-collar workers have long felt that they were
immune to this trend. Go to school and get a degree or focus on something creative and then you, too, can avoid the continued encroachment of technology on the bluecollared class. It turns out, however, that nothing is sacred. These days we have computers trained to do in-depth reporting and journalism; IBM has a machine named Watson that cooks up imaginative new recipe ideas (and also beat the world’s best chess player); and one group at the University of Malaga in Spain has taught computers to compose new music and paint magnificent pieces of art. Even the majority of stock trade decisions are handled by advanced computers trained to watch trends and make decisions in a nanosecond. Recent plane crashes and disappearances have left some to question the need for pilots. The majority of a flight happens on autopilot, while drones have taught us that planes can easily be controlled remotely from the ground. Why not have a mission room of pilots controlling all flights vs. a weary handful in the cockpit? Why not centralize the activities of an airport’s ground control into one location? The arguments against can be
broken down to two simple things. An unwillingness to deal with an unemotional computer and the fear of what ifs. I, like many people, curse under my breath whenever the automated customer service bot exclaims it has no idea what I want. I, like many, wonder what if something happens that simply requires the thinking of a human brain? Yet, when Google released information on all the accidents its automated cars have had so far (all fender benders), the human drivers were at fault, not the driverless cars. So, maybe we are the problem? But could robots work for all industries? In New Orleans, known for tourism and service, could we replace a hotel concierge with know-it-all kiosks or our local bartenders with one of the many robots capable of making a perfect drink on demand? Waiters with tablets? Maybe that has already started. Many national restaurants have adopted or at least tested table-side tablets capable of taking orders, making waiters simply delivery people. Hotels and airlines offer seamless checkin and checkout from your phone or a computer. As for hotels, minus the higher-end brands, kiosks or computer bays capable of printing maps have replaced the know-it-all concierges. Thankfully, my bartender is still human. As a technologist, I find this amazing, but also very scary. The trend of constant disruption of industries begs the question stated above. Do we really need humans? Larry Page, CEO of Google said in an interview that slowing the advances of technology to keep jobs or making technology less effective is a bad idea. He also predicted a future where most jobs become part-time. On a slightly separate end of the spectrum, Bill Gates, Stephen Hawking, and Elon Musk, among others, have increasingly warned that developing super-smart artificial intelligence is something to be feared. But they also imagine a world where the definition of a “job” is vastly different than what we see today. Let’s all hope Gene Roddenberry had it correct with “Star Trek,” and in the future jobs are not something we do for need, but something we do because we love. A world where money or income has no meaning. Otherwise, I’m hoping our new robot overlords leave me in the matrix. n Photo Thinkstock
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Biz Bits - Industry News Around town Hurricane Katrina’s aftermath has been a story of both triumph and loss. It has challenged us to not only addresss the physical destruction, but decades-old systemic issues that have disproportionately impacted the African-American community. - Erika McConduit-Diggs, president and CEO of the Urban League of Greater New Orleans. The Urban League will release their report, “State of Black New Orleans: 10 Years Post Katrina during the organization’s upcoming Hurricane Katrina commemorative conference, titled “RISE: Katrina 10,” August 26-28 at the Hyatt Regency, New Orleans.
Construction Begins on Cobalt Medical Center in Mid-City On July 10, construction officially began at Cobalt Medical Center, a new 64,000-square-foot medical facility designed to treat various conditions including traumatic brain injuries, Parkinson’s Disease and concussions. Conveniently located near the burgeoning medical complex, the $24 million project has already generated 160 jobs with its contractors and expects to employ nearly 180 people.
JEDCO Celebrates Success In its recently-released 2014 annual report, JEDCO celebrated its successes in support of the business community in Jefferson Parish. Included were JEDCO’s Business Retention & Expansion Program, which assisted 59 projects, helping to create 1,044 new jobs and retain 3,088 additional jobs. Total efforts represented an investment of more than $538 million. JEDCO’s finance committee also approved 14 loans totaling more than $6 million. Greg Jordan, 2014 JEDCO chairman, highlighted the organization’s work on the Fairfield Vision, a strategic plan to develop 8,000 acres on the West Bank of the parish. To download a copy of the report, visit JEDCO.org.
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IdeaVillage Kicks Off 2016 Entrepreneur Season
Port of New Orleans Earns Green Port Certification
On Sunday, August 30 at the NOLA Brewing Tap Room, Idea Village will launch its 2016 Entrepreneur Season with the 2nd Annual Entrepalooza. The event will feature successful local entrepreneurs sharing their stories as well as details on the highlights of the upcoming season. Applications are now open for 100 free, one-on-one strategy sessions for local startups, along with a variety of 10-week and 12-week accelerator programs. For more information, visit IdeaVillage.org.
The Port of New Orleans recently became only the 8th port in the United States to be certified as a Green Port by Green Marine, a North American environmental certification program for the marine, port and terminal industry. Pictured above are port employees and tenants who picked up over 200 bags of trash during the Port’s Annual Earth Day Cleanup on April 22, 2015.
August 2015 BizNewOrleans.com
NEW ORLEANS’ LATEST ACCOLADES “Second Best City in America”
– Travel + Leisure’s World’s Best Awards 2015
“No. 1 U.S. City for Business Travelers”
– Condé Nast Traveler
“52 Places to Go in 2015”
– New York Times
“Fastest Growing Place for Dining, Snoozing and Boozing”
– SelfStorage.com Moving Blog – (cites the New Orleans Convention and Visitors Bureau data that the number of restaurants in New Orleans grew from 800 in August 2015 to 1,349 as of August 2013.)
Recent Openings Drizly As of July 9, New Orleans has its first on-demand alcohol delivery service — Drizly. Partnering with Brady’s Wine Warehouse and Pearl Wines, Drizly allows consumers to order beer, wine and spirits via the Drizly app or at Drizly.com and receive their delivery in under an hour. The service is currently available in the French Quarter, Treme, the Garden District, Metairie, Mid-City, Gentilly, Audubon, Elmwood and Gretna.
At Home Texas-based home décor superstore At Home opened its first Louisiana store July 9 at 1000 W. Esplanade Blvd in Kenner. The 90,00-square-foot store brings 25 jobs to Kenner and its surrounding communities and adds to the national chain’s more than 90 stores spread across 25 states.
US Foods
University Medical Center New Orleans
On July 17, US Foods opened a new distribution center in Flowood, Miss., designed to service more than 4,000 chefs, restaurant owners and foodservice operators throughout Louisiana and Mississippi. The 272,000-square-foot facility will include a state-of-the-art demonstration kitchen for training and product testing, temperature controlled zones, a significantly increased selection of produce and products and two produce ripening rooms.
On August 1, University Medical Center New Orleans officially opened its doors to patients. The largest teaching hospital and training facility in the state, the 2.3 million square-foot complex at 2000 Canal Street is the only Level 1 Trauma Center in the region. Built over the past three years at a cost of $1.1 billion, UMC employed 15,000 construction workers who logged approximately 6.5 million hours. The facility employs approximately 2,600 people, including 600 physicians.
We’d love to include your business-related news in next month’s Biz Bits. Please email details to Editorial@BizNewOrleans.com. BizNewOrleans.com August 2015
33
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August 2015 BizNewOrleans.com
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Arnaud’s Restaurant
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813 Rue Bienville | (504) 523-5433 ArnaudsRestaurant.com
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Arnaud’s Restaurant offers classic Creole cuisine and exemplary service in the heart of the French Quarter. Turn an ordinary business lunch into a reason to celebrate with our award winning menu including both classic and inventive dishes. At Arnaud’s you’ll enjoy the traditions and history of one of New Orleans’ top fine dining restaurants.
At Fausto’s Bistro we offer a carefully crafted menu that will suit any palette. Centrally located at 530 Veterans Blvd, Fausto’s can make your business lunch a memorable event with an affordable price and exceptional Italian and Sicilian food! Proudly serving for 26 years!
10 years by the numbers In an effort to provide a general overview of how the New Orleans region has changed since Hurricane Katrina, Biz New Orleans partnered with urban planner Robert Edgecombe at GCR Inc. The following pages provide a high-level profile of the area’s population, demographics, employment, industry and education pre-Katrina and today.
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August 2015 BizNewOrleans.com
Population
we are almost back. In 2014, the population of the New Orleans metro area was 1.23 million — about 91% of pre-Katrina figures.
Comparable Cities Then and Now
St. John the Baptist 44,822
St. Tammany 201,405
St. Tammany 245,829
St. Charles 49,939
Jefferson 456,602
2004
Jefferson 435,716
St. Bernard 70,547
2014
St. Charles 52,745 St. Bernard 44,409
Plaquemines 29,390
Orleans 493,765
City Population (2004) Portland, OR........................536,636 Oklahoma City, OK..............530,508 Tucson, AZ...........................499,583 New Orleans, LA............... 493,765 Albuquerque, NM................489,868 Long Beach, CA..................468,781 Fresno, CA...........................460,601
St. John the Baptist 42,745
Orleans 384,320
The city of New Orleans has gained over 40,000 residents since 2010, growing at a rate comparable to Davidson County (Nashville, TN), Prince George County, MD (suburban Washington, D.C.), and Osceola County, FL (suburban Orlando).
Race and Ethnicity
City Population (2014) Tulsa, OK..............................399,682 Cleveland, OH.....................389,521 Wichita, KS..........................388,413 New Orleans, LA............... 384,320 Arlington, TX........................383,204 Bakersfield, CA....................368,759 Tampa, FL............................358,699
Plaquemines 23,447
Source: U.S. Census Bureau Population Estimates Program
White
African-American
Asian
Other
Hispanic/Latino
“Hispanic/Latino” is a demographic category reported as ethnicity, as opposed to race (with race including white, African-American, etc.)
WE ARE MORE DIVERSE. While the African-American population has decreased, white, Hispanic/Latino, and Asian residents now comprise a greater percentage of the region’s population.
New Orleans Metro Area 2 012
70
70
60
10
%
%
%
%
Data for Metro Area is only available through 2012. Source: American Community Survey
65,0759 5%
20
10
38,346 3%
20
10
30,439 2%
20
10
487,464 38%
20
736,525 57%
30
20,849 6%
30
11,540 3%
30
11,508 3%
40
30
224,787 59%
40
130,880 35%
40
13,679 3%
40
8.650 2%
50
210,655 2%
50
295,259 68%
60 50
122.622 28%
60 50
98,993 8%
70
60
51,602 4%
70
2005
30,439 3%
2013
416,161 35%
2005
704,333 58%
Orleans Parish
BizNewOrleans.com August 2015
37
Employment UNEMPLOYMENt rates are slightly higher. The Metro Area is leading the state in job creation and wages are up.
T
he metro area weathered the recession durably and continues to see steady growth in overall employment. According to federal statistics, the area gained over 38,000 jobs between 2010 and 2014, about half of those within Orleans Parish. Employment growth in the metro area has outpaced the rest of state substantially; 38% of new statewide jobs between 2010 and 2014 were added within an area that comprises about a quarter of the state’s overall population.
Total Employment
NUMBER OF PEOPLE LIVIng and working in the same area
Orleans Parish 2004: 245,403 2014: 187,179
Source: Bureau of Labor Statistics Quartery Census of Employment & Wages
Unemployment Rates 2005 2015
Jefferson Parish..................................4.9%.................5.8% Orleans Parish.................................. 6.3%................ 6.6% Plaquemines Parish...........................5.5%.................5.7% St. Bernard Parish..............................5.6%.................6.9% St. Charles Parish...............................5.1%.................5.7% St. John the Baptist Parish...............6.2%.................7.6% St. Tammany Parish............................4.4%.................5.5% New Orleans Metro Area...................5.4%.................6.1% Louisiana.............................................5.7%.................6.2% United States.......................................5.4%.................5.5% Source: Bureau of Labor Statistics Local Area Unemployment Statistics 38
August 2015 BizNewOrleans.com
2011
Area
Percent of Jobs in Parish Filled by Parish Residents
Jefferson Parish
Commuting In 99,941
Live/Work in Parish 111,198
Commuting Out 85,182
Orleans Parish
95,571
111,969
60,305
54%
Plaquemines Parish
9,582
4,216
4,414
31%
St. Bernard Parish
6,543
8,067
18,155
55%
St. Charles Parish
13,338
6,837
13,660
34%
St. John the Baptist Parish
6,099
4,669
13,400
43%
St. Tammany Parish
19,692
38,072
39,711
66%
New Orleans Metro Area
71,412
464,382
55,473
87%
Jefferson Parish
93,677
87,681
78,005
48%
Area
2004
Metro Area 2004: 591,103 2014: 536,897
Additionally, increases in wages in the metro area have outpaced increases in the number of new jobs. Overall, unemployment rates in the metro area are slightly higher — 6.1% — than their pre-Katrina level of 5.4%. Notably, however, the rate has increased from 5.3% in 2014 to 6.1% in 2015, even as the national rate dropped significantly during the same period.
53%
Orleans Parish
84,442
62,640
50,083
43%
Plaquemines Parish
8,394
3,212
8,689
28%
St. Bernard Parish
6,587
2,933
10,585
31%
St. Charles Parish
17,540
6,112
15,365
26%
St. John the Baptist Parish
9,404
4,363
14,804
32%
St. Tammany Parish
30,428
40,083
44,428
57%
New Orleans Metro Area
99,227
358,269
70,714
78%
Source: U.S. Census Bureau Longitudinal Employer Household Dynamics
Employment By Industry Greatest gains seen in education and health services. Overall, the composition of the region’s economy has not changed dramatically, but even relatively small shifts tend to reshape perceptions.
F
or example, the rate of start-ups in the New Orleans area has more than doubled since Katrina, and although these startups may not account for a material percentage of overall employment, they are high-profile indicators of economic recovery and revitalization. The largest portion of the region’s employment comes from the Trade, Transportation, and Utilities sector, which includes both wholesale and retail establishments. Leisure and Hospitality workers account for a larger percentage of all employment now than before the storm, as do workers in the Professional and Business Services sector.
The only sector experiencing an absolute increase in jobs between 2004 and 2014 was Education and Health Services; employment in the metro area in this sector is nearly 5,000 higher than in 2004. Importantly, regional economic development agencies are developing active strategies around the growth of foundational and emerging employment sectors, including advanced manufacturing, transportation, bionnovation and health sciences, digital media, and sustainable industries.
Orleans Parish
0.1% Unclassified
Trade Transportation & Utilities
State Government
5.1%
2.9% Other Services
Professional & Business Services
2.2%
1.9% Information
Financial Activities
14.0%
15.1%
19.0% 4.7% 4.4%
3.0% Construction
Education & Health Services
0.1% Unclassified
Trade Transportation & Utilities
State Government
Federal Government
13.7% 7.9%
3.0% Other Services
Professional & Business Services
1.7%
3.1% Manufacturing
Natural Ressources & Mining
8.9% Information
Local Government
5.3%
2.0%
Financial Activities
Leisure & Hospitality
5.1% Federal Government
Construction
Unclassified
Trade Transportation & Utilities
0.0%
0.8% State Government
2.5%
2.9% Other Services
Professional & Business Services
5.2% Manufacturing
Natural Ressources & Mining
0.7%
9.1% Local Government
5
14.8%
17.4%
14.2%
10
1.7% Information
Leisure & Hospitality
Financial Activities
15
15.3%
12.6%
13.5% Federal Government
Construction
Education & Health Services
Unclassified
Trade Transportation & Utilities
0.1%
0.7% 6.4%
6.5%
13.3% State Government
0.8%
3.1% Other Services
1.0% Manufacturing
Natural Ressources & Mining
Professional & Business Services
8.5%
9.2% Local Government
Leisure & Hospitality
6.8%
1.7% Information
Financial Activities
Federal Government
0.8%
6.3% Construction
Education & Health Services
5
11.0%
10
12.2%
15
20
1.4%
24.6%
20
Manufacturing
25
Natural Ressources & Mining
25
4.3%
30
25.1%
30
2014
22.0%
2004
Local Government
2014
Education & Health Services
2004
Leisure & Hospitality
Jefferson Parish
2014 Employment by industry and change from 2004 Industry
Plaquemines
St. Bernard
Construction 8.1%
3.4%
9.1%
Education and health services
3.9%
0.7%
10.0%
Federal Government
4.4%
1.2%
0.4%
Financial activities
0.9%
St. Charles
St. John the Baptist
St. Tammany
Metro Area
14.2%
2.5%
9.3%
0.2%
5.7%
0.6%
5.9%
5.6%
1.1%
8.4%
0.9%
15.1%
0.9%
15.3%
2.9%
0.3%
0.6%
0.2%
0.8%
0.1%
0.6%
0.3%
2.3%
0.4%
5.5%
0.7%
5.1%
0.2%
2.9%
0.7%
2.0%
1.4%
2.9%
0.6%
4.6%
0.6%
5.2%
0.5%
Information 0.1%
0.3%
0.6%
0.1%
0.3%
0.2%
0.7%
0.3%
1.0%
0.8%
0.0%
1.7%
Leisure and hospitality
6.5%
0.4%
12.8%
1.4%
5.2%
0.3%
8.4%
1.1%
14.3%
1.3%
16.1%
2.1%
Local Government
11.7%
0.4%
18.5%
3.0%
13.7%
0.8%
12.0%
0.8%
14.8%
1.9%
9.4%
1.1%
Manufacturing 11.5%
1.2%
13.3%
3.0%
18.3%
4.6%
18.6%
0.7%
4.6%
1.7%
6.0%
0.5%
Natural resources and mining
11.2%
0.6%
0.1%
0.3%
0.4%
0.2%
4.3%
1.8
1.6%
0.1%
0.0%
2.9%
2.0%
2.3%
Other services
2.0%
0.2%
1.6%
2.8%
Professional and business services
7.4%
1.8%
4.7%
0.5%
11.0%
0.7%
7.9%
0.6%
10.8%
1.7%
14.1%
1.8%
State Government
0.3%
3.9%
2.0%
1.8%
0.1%
0.2%
2.2%
0.8%
1.0%
1.0%
2.5%
1.6%
Trade, transportation, and utilities
27.7%
6.7%
24.1%
3.3%
27.3%
2.8%
22.5%
0.4%
22.6%
2.1%
21.6%
1.1%
0.0%
0.1%
0.0%
0.1%
0.0%
0.1%
0.1%
0.1%
Unclassified 0.1%
1.3%
1.7
0.0%
2.6%
Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages BizNewOrleans.com August 2015
39
Incomes
THE AREA IS BOTH WEALTHIER AND POORER. As incomes have risen in the area, poverty has as well, and income inequality is a major social and economic concern.
Median household income 2005
2013
Percentage of Household by Income Brackets
2013 (in 2005 Dollars)
$20,000 $15,000
Orleans Parish New Orleans Metro Area 2005 2013 2005 2012 Less than $10,000............. 16%............16%....................11%.......... 11% $10,000 to $14,999........... 11%.............8%......................8%............ 7% $15,000 to $24,999........... 17%............14%....................14%.......... 12% $25,000 to $34,999........... 11%............10%....................11%.......... 11% $35,000 to $49,999........... 14%............12%....................15%.......... 13% $50,000 to $74,999........... 12%............14%....................16%.......... 16% $75,000 to $99,999............ 6%..............8%.....................10%.......... 11% $100,000 to $149,999........ 7%..............9%......................9%........... 11% $150,000 to $199,999........ 2%..............3%......................2%............ 4% $200,000 or more............... 3%..............5%......................3%............ 4%
$38,165
$25,000
$31,036
$30,000
$30,711
$35,000
$36,631
$40,000
$39,879
$45,000
$44,379
$50,000
$10,000 $5,000
Orleans Parish
25%
Percentage of people living in poverty in New Orleans in 2005
New Orleans Metro Area
Data for Metro Area is only available through 2012
27%
Percentage of households in New Orleans with income greater than $100,000 in 2005
12%
Percentage of people living in poverty in New Orleans in 2013
T
he common perception that New Orleans is a “wealthier” city than before Katrina is both true and misleading. On the one hand, median household incomes have risen at a greater rate since 2005 in the city than they have nationally, where median incomes are lower in 2013 than in 2005 when adjusted for inflation. Additionally, a larger percentage of the city’s residents are higher-income than before the storm. On the other hand, the rise in median income is both an indication of greater wealth in the city and the comparative
Education
difficulty low-income residents continue experience in returning. Additionally, the rising cost of living, especially in the housing sector, has continued to impact residents across the income spectrum; the fair market rent of a two-bedroom apartment has risen 41% since the year before the storm, and more than half of all renters in the city spend above 30% of their monthly income on housing costs. Source: U.S. Census Bureau American Community Survey
EDUCATIONAL OUTCOMES HAVE IMPROVED. Our region’s revamped schools, overall, have shown progress in test scores and long-term prospects for students.
Percent of Residents Ages 25+ with Bachelor’s Degree or Higher Orleans Parish 2005: 31% 2013: 36%
New Orleans Metro Area 2005: 26% 2012: 27%
During this time period, the percentages of residents with a bachelor’s degree or higher rose from 21% to 23% throughout the state of Louisiana and from 27% to 30% in the United States. 40
August 2015 BizNewOrleans.com
17%
Percentage of households in New Orleans with income greater than $100,000 in 2015
Percent of Students in Orleans Parish Enrolled in Charter Schools
2004
1%
2014
92%
The identity of New Orleans’ public schools have been transformed since Katrina, gradually becoming a system dominated by charter schools. In terms of the overall number of pupils, the system has gained an average of approximately 1,000 new students each year over the past four years, compared to the period between 2000 and 2004, when the system’s enrollment decreased by about 15%.
Source: U.S. Census Bureau American Community Survey and Louisiana Department of Education
BizNewOrleans.com August 2015
41
An incubator for biotechnology startups, the NOBIC includes 66,000 square feet of laboratories and office space at 1441 Canal St.
BIOTECH BATTLES Funding cuts threaten the future of the New Orleans BioInnovation Center. by Lucie Monk
A
t the core of a thriving business, you’ll find an idea. It’s the glimmer that attracts a hardworking team, confident investors and, ultimately, a horde of consumers. But an idea alone won’t roll out the red carpet for an innovatorturned-entrepreneur. In the field of biotechnology, especially, an intriguing concept is just the first step to entering the marketplace. Further development requires time, capital and a keen business sense. Enter the New Orleans BioInnovation Center (NOBIC). Located on 1441 Canal Street in the city’s growing biomedical corridor, the nonprofit center provides a small business incubator for enterprising scientists in New Orleans in search of legal advice, funding opportunities, workspace and an emerging, engaged local community. The center opened in its current location in June 2011, encompassing 42
August 2015 BizNewOrleans.com
four stories and 66,000 square feet of space of laboratories and offices. The close proximity to Tulane and LSU’s health science centers has made NOBIC an obvious destination for infant technologies growing out of the universities. The New Orleans BioInnovation Center stimulates a broad range of companies and their products, from venture capital funds and mobile healthcare platforms to nanotechnology and dietary supplements. “But we’re in a precarious position,” says President Aaron Miscenich. “[Gov. Bobby Jindal] zeroed our budget as part of his 2015-16 funding.” According to Miscenich, a third of NOBIC’s budget came from state assistance. Other sources of revenue include federal grants, market rent for the facility, and private sponsors such as J.P. Morgan Chase & Co. (In November 2014, the bank awarded NOBIC a $200,000 grant as Photo courtesy of Eskew+Dumez+Ripple
part of a nationwide small business growth initiative.) “We can’t survive with this,” says Miscenich of the cuts. Citing an overall reduction of $1.2 billion in his Fiscal Year 2016 Executive Budget, Governor Jindal states in the introduction to the budget proposal: “To get to this point, we worked closely with department heads and officials to identify opportunities that would further reduce the size and scope of government. Our approach required each agency to take a critical look at every expense in the budget to prioritize what is essential and target what is not.” The cost cutting doesn’t end with the center’s overall budget. July 1, 2015 marked the beginning of the new fiscal year with the sunset of several state tax credits, including the Research and Development (R&D) Tax Credit and the Angel Investor Tax Credit (for individual investments in early-stage startups), both reduced and made nonrefundable by the new state budget—signed into order by Governor Jindal on June 19—which aimed to offset Louisiana’s $1.6 billion deficit while limiting unpopular cuts in higher education. But where does that leave the evidently inessential New Orleans biotech community?
IN THE BEGINNING Plans for NOBIC began as early as 2002, when Gov. Mike Foster’s Louisiana Vision 2020 action plan identified the life sciences as a targeted growth industry for the state. “At the time, they allocated $30 million for the construction of three wet lab incubators [specially designed to handle drugs and chemicals] in Baton Rouge, Shreveport and New Orleans,” says Miscenich. The New Orleans incubator operated out of an existing facility on Canal Street until 2004, when construction began for a new center to be built in place of the 1950s-era Wirth Building. Hurricane Katrina arrived shortly after the demolition of the Wirth Building and delayed construction until 2008. “At that point we decided to take a step back,” says Miscenich. All three incubators received additional funds for construction from the state, with New Orleans securing a full $47 million to create a new facility from the ground up. “The city’s done a good job since the storm developing different Photo courtesy of Eskew+Dumez+Ripple and Greg Miles
LEFT: A colorful entryway adorned in glass panels welcomes visitors to the center. RIGHT: NOBIC President, Aaron Miscenich
economies,” says Miscenich. “And all the strategic plans recognize the life sciences as a place for development.” Inaugurated in September 2011, the New Orleans BioInnovation Center works closely with Tulane Health Sciences Center, LSU Health Sciences Center, and Xavier University, as well as the University of New Orleans, to provide wet laboratories and commercialization assistance for local startups. “We’ll get a call from [the schools’] Office of Technology Transfer,” says Miscenich. “They’ll bring us in and help us understand the validity of the intellectual property. We look at the competitive area with them, and then they’ll decide to move forward. We help them with a full business plan, introducing them to different capital sources. We help them form partnerships with local law firms for legal advice, license agreements, shareholder agreements, and so on.” On June 15, NOBIC received the Tibbetts Award from the White House, one of three organizations in the country recognized for advocating for Small Business Innovation Research (SBIR) grants, which award R&D funding to young companies. The center assists startups in applying for SBIR grants and other federal assistance, as well as securing any state tax credits that bolster small businesses during their development. In addition, NOBIC operates the New Orleans BioFund, a loan program providing capital for startups that have struggled to secure more traditional investments. “We’ve developed a community between all of these different pieces,” says Miscenich. “That’s the whole point of an incubator.”
WHERE DO WE GO FROM HERE? “We’re going to outgrow our space in the next year,” says Miscenich. “After the storm, we knew we couldn’t bring mature companies. We had to seed and start up. But now we’re at the point where we can attract mature companies.” The pipeline of ideas and technologies from the nearby universities BizNewOrleans.com August 2015
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remains stronger than ever. “But can we retain these companies?” asks Miscenich. NOBIC is working with the city to create another space for the growing field. “What we’re doing now also is helping to bring in resources to help add value to research,” says Miscenich. “If we can bring lab operations [and clinical research] to New Orleans, that’s more reason for these companies to stay. I’d like to keep as many dollars spent in New Orleans as possible.” At Delgado Community College, an associate’s degree program prepares students for lab technician jobs in just two years. “The jobs we’ve created have an average [salary] of $60,000,” says Miscenich. “With just a twoyear degree, you get a great job with upward mobility.” Delgado’s program has even extended to the high school level. “They started last summer, getting familiar with the lab environment,” says Miscenich. “Now these kids see career paths in the life sciences.”
NOBIC Tenant: Better Day Health — Revolutionizing medical documentation In July 2011, just a month after the BioInnovation Center opened its doors, Better Day Health took up residence as one of the first tenants. “We were originally located elsewhere,” says Dr. Peter Ragusa, founder of the web-based healthcare platform. “But we moved to New Orleans—partly because of the BioInnovation Center and the spaces being provided, plus the entrepreneurial community at the facility. But also because Louisiana is home.” Ragusa’s experiences in medical school, when electronic record keeping methods were mandated in healthcare practices, inspired the software at the heart of Better
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Day Health. “I’ve long loved technology,” says Ragusa. “But I found that it would take me an hour to document a 15-minute encounter. The computer was a physical and emotional barrier between the patient and physician.” Ragusa reached out to his brother, Rand, whose entrepreneurial experience (including a founding role in both Tribe magazine and Alpine Investments) helped Better Day Health come into focus. Using voice recognition, mobile devices, and multiple modules for clinical documentation, the proprietary software significantly reduces the number of clicks a doctor must make when inputting patient data, effectively streamlining care and improving the patient experience. The system, an add-on to a clinic’s existing health records programs, activates when the healthcare provider walks into the exam room. “Our system listens to the conversation— there’s no recording, we want to be extremely clear about that,” says Ragusa. “It’s more like a phone call; there’s no permanent record. But in the meantime, our system has pulled out key words and phrases. “When the provider walks out of the room, it stops listening and proposes the most likely diagnoses for that patient’s presentation. Once [the provider] selects a given diagnosis,
it intelligently triggers our system to provide a limited, specific range of options.” Factors for that specificity extend from presented symptoms and the coded level of the patient’s visit to treatment plans. “What used to take hundreds of clicks, we’ve gotten down to three or four to make your diagnosis,” says Ragusa. “This puts technology in the background, where we feel it belongs.” Better Day Health hosts its business operations at the center, while the software receives hands-on testing by doctors in clinics. “[NOBIC] isn’t a lab space for us,” says Ragusa, “but it’s right across the street from the Tulane Medical Center, LSU Health Sciences Center, and the new VA Center. All of which are huge for us as a fledgling healthcare company.” The entrepreneurial brothers both see a momentum in New Orleans, extending beyond biotechnology into the business community as a whole. “I’d call it the renaissance of New Orleans,” says Ragusa. “You can see with the construction and all the energy and enthusiasm. It’s a wonderful place. It’s always been a wonderful place, and I think it just gets better every year.”
Photo courtesy of Eskew+Dumez+Ripple
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NOBIC Tenant: InnoGenomics Another of NOBIC’s first tenants, InnoGenomics, already had significant roots in the New Orleans biotechnology community, as well as small business incubators, at its conception. In 1991, Innogenomics CEO and President Sudhur Sinha, Ph.D., founded ReliaGene Technologies in the Jefferson Parish Economic Development Commission (JEDCO) incubator. The accredited DNA testing laboratory, operating out of Harahan, was renowned for forensic, paternity, and molecular DNA testing. In 2003, ReliaGene used fingernail scratches, as well as technology developed by the lab for testing male DNA, to link serial killer Derrick Todd Lee to one of his victims, Geralyn DeSoto. After Hurricane Katrina, the state contracted with Sinha to identify casualties from the storm with DNA testing. “I had a lot of problems getting results,” says Sinha. “Because of the saltwater, the DNA got degraded. I had to go back to older technology to look at the bones.” Dr. Sinha continued to think about this problem. How can we get results from badly degraded samples? His solution — a technology patented in 2010 that focuses on the analysis of Retrotransposable Elements, repeating DNA sequences that comprise 40 percent of the human genome but have been difficult to use as biomarkers before now — has applications from forensic testing and genealogy to molecular diagnostics. Currently, the company is developing a way to both detect and monitor cancer through a simple blood test. Sinha sold ReliaGene in 2007; as InnoGenomics, he and his team — including Vice President Jonathan Tabak — have worked with NOBIC in securing SBIR funding, National Science Foundation grants, and the refundable R&D state tax credits as the revolutionary technology edges toward the marketplace. But the sunset of the refundable R&D credit, upon which Innogenomics relied for
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40 percent of its operating budget, has Sinha and Tabak unnerved. “[The credit] was enabling the company to get to [the marketplace],” says Tabak. “We would be starting to generate revenue and last long enough to develop our cancer diagnostic technology. But without the R&D tax credit, I don’t know if we’ll get there.” “The expense is not much for the state, but it is huge for us,” adds Sinha. “We have received almost $400,000 in tax credits from the state, then another $250,000 from the National Science Foundation as a match. Now we’re not only losing state money, but we’re losing the federal match.” Incubation periods for biotechnology companies can extend up to several years as ideas are cultivated into products and developers await regulatory approval. InnoGenomics and its fellow tenants have thrived in partnership with the New Orleans BioInnovation Center. But, according to Sinha and Tabak, the loss of state assistance sends a sharp message. “The timing is very baffling,” says Tabak. “Companies like us have struggled and fought up to this point. I hope it’s a temporary setback, because biomedical is such a good
Innogenomics CEO and President, Sudhur Singa, Ph.D.
catalyst here. Things are really happening, and the state needs to support it.” With Louisiana’s gubernatorial seat up for grabs come 2016, frontrunners Senator David Vitter and Lieutenant Governor Jay Dardenne have both released statements regarding Governor Jindal’s new budget. While neither candidate addressed the R&D tax credit specifically, both have stressed the negative impact of rescinding tax credit refundability in such a manner. “I would apply an objective cost-benefit analysis to all state tax credits, exemptions, and deductions,” said Vitter, in a statement responding to the repeal of the inventory tax credit’s refundability, a similar adjustment to that of the R&D tax credit. “I’d propose getting rid of those that don’t pass that test and keeping those that do.”
Photo Greg Miles
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CURRENT NOBIC TENANTS AAAneurysm Outreach aims to raise awareness of abdominal aortic aneurysms with early-detection screenings and support networks for at-risk families and individuals. findtheaaanswers.org. Beginning Families Louisiana’s only program for human egg donation and gestational carriers. Better Day Health uses voice recognition, web-based technologies, and mobile devices to streamline patient care and improve the overall doctor-patient experience. betterdayhealth.com. Bioceptive specializesin women’s healthcare, innovating products for intrauterine procedures. bioceptive.com. Carondelet Labs manufactures fluorescent dyes for widespread use throughout the scientific community. carondeletlabs.com. GenoFAB streamlines the design, characterization and creation of DNA molecules with a software suite marketed to the life sciences field. genofab.com. GetHealthy a mobile platform for health and wellness that connects insurers and employers to employees and policyholders in order to educate them on an individual level and personalize each policy. gethealthy.com. InnoGenomics focuses on genetic testing solutions for forensic scientists. innogenomics.com. LaCell produces quality stromal/stem cells for the scientific community, advocating the use of such cells in regenerative therapies. lacell.wpengine.com. Louisiana Funds a venture capital fund focused largely on healthcare in Louisiana. louisianafund.com. LouisianaBio supports the growth of the biotechnology industry in the state as a member-driven trade organization. Medical Executive Partners customizes business solutions and strategies for hospitals, medical centers and clinical research facilities. medicalexecutivepartners.com. Meredian aims to reduce dependence on petroleum-based polymers by manufacturing biopolymers from renewable, biodegradable, nonpetroleum resources. 48
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MiniVax produces specialized therapeutics and vaccines, including an antibody-based therapeutic against pneumocystis pneumonia. MobileQubes markets high-capacity battery packs, called “Qubes,” rented out via a network of self-automated kiosks. NanoFex formulates sustainable microparticles that break down groundwater contaminants. National Independent Review Organization provides web-based, independent medical reviews from board-certified physicians. ReactWell a clean tech company that works with chemical, oil and gas, energy and petrochemical companies. Renaissance Rx helps physicians develop customized treatment plans using a patient’s health history, environment and genetic makeup. ResourceWorks Inc. offers training and consultation to nonprofit organizations and their leaders. Servato provides industrial solutions for remote DC power management. Simmons and White a professional management company that partners with promising young companies. Solid Ground Innovations offers consulting and management services “a la carte” to other businesses. The South Coast Angel Fund, LLC a venture capital fund focused on early-stage companies in Louisiana and across the Gulf Coast. Theodent markets a revolutionary toothpaste that strengthens enamel using a naturally occurring extract found in chocolate. TMS Bioscience provides specialized laboratory testing for transplant patients to monitor immunosuppression. Transcendent Legal an innovative law practice combining technology with legal services using a state-of-the-art web platform. Zenas Technologies a contract research firm specializing in data on the cardiovascular and central nervous systems.
Photo courtesy of Eskew+Dumez+Ripple
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Perspectives A closer look at hot topics in three southeast Louisiana industries
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Perspectives | Oil & Gas
Going the Distance After a decade of one hit after another, oil and gas continue to rebound. By phil mccausland
H
urricane Katrina was not a surprise to gulf residents, nor did it blindside the oil and gas industry in the region. As the storm grew in power and began to wind its way toward the coast, the industry prepared by evacuating its personnel from the 819 manned production platforms and 134 drilling rigs. Meanwhile, on the shore, evacuations orders stretched from Venice to New Orleans. From a safe distance, CEOs and oil rig workers watched, equally helpless, as Katrina moved north,
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roughly 10,000 oil and natural gas wells in its path. By the time the storm made landfall on Aug. 29, 2005, approximately 90 percent of the offshore oil and natural gas wells in Louisiana had been shut down — an impressive feat since at the time Louisiana produced 1.5 million barrels of oil a day or 28.5 percent of the entire country’s oil production and 10 billion cubic feet of natural gas per day, about 19 percent of U.S. daily natural gas production.
Photo Thinkstock
The 10 years since Katrina have not been kind to the industry. “Look at what happened since Katrina,” says Al Petrie, senior partner of Al Petrie Advisors, a consultancy group that works with both public and private energy companies. “In 2005 we were not able to do business very well here, and then things started to work their way back. But in 2008 we had a financial crisis, which forced oil prices down for a period of time and had an impact on any growth in the city from an energy standpoint. Finally, along comes[the Deepwater Horizon explosion and subsequent oil spill] in 2010, which had a significant impact yet again.” But lessons learned with each disaster have led to changes and innovations in the industry. “When you have any disaster you want to learn a lot from it, and the industry certainly has,” says Don Briggs, president of the Louisiana Oil and Gas Association.
Lessons learned The gas and oil industry has seen rampant change in the past 10 years. After Katrina, a number of oil and gas companies with offices in New Orleans could no longer operate in the city. Some moved their operations to Houston, which currently functions as the de facto capital of the industry. Even before Katrina, some corporations moved their headquarters and the bulk of their management teams to Houston, but the storm accelerated those moves from New Orleans.
“The worst is behind us and Louisiana will still remain a significant operational center,” – Al Petrie, Senior Partner, Al Petrie Advisors
Petrie says the good news is the likelihood of southern Louisiana and New Orleans losing many more companies to Houston is very low, as this state already has infrastructure in place to support the oil and gas industry. “The worst is behind us, and Louisiana will still remain a significant operational center,” Petrie says. “Much of the equipment that is used offshore has to be located here because we have the best ports for that. We have Venice, Port Fourchon — we have all those areas where there is significant infrastructure.” Petrie adds that moving the service industry portion elsewhere isn’t feasible. “They can’t take all of our boats and put them in Houston,” he says. “That just doesn’t work because the facilities we have at Port Fourchon is a city. You have all this major area where all of the E&P companies and service companies have all of their docks from which they service the deep water Gulf of Mexico and the shallow water. That’s not going to change.” While some might believe the moving of corporate headquarters might be a bad thing, their loss has a silver lining, as it is allowing BizNewOrleans.com August 2015
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a number of small entrepreneurial energy companies to emerge in their absence. This is what Petrie calls the cycle of life in the energy industry. “It happened with a variety of companies that were here,” Petrie says. “If they got bought out or their offices moved somewhere else, some of those people said, ‘I’m staying in New Orleans, and I can do this here. I’m not going to be as big a company, but I will start another company based here.’ We see that happening again.”
The recession as an educator – 2008 The recession and the accompanying low supply of oil and natural gas taught the Louisiana industry much about its drilling practices, causing gas and oil prices to skyrocket. In 2008, natural gas ran as high as $13 per thousand cubic feet and oil went for $147 a barrel.
“...even though economic development likes to say they brought all this business here, what brought all this business here is the Mississippi River and cheap natural gas.” – Don Briggs, president of the Louisiana Oil and Gas Association To use natural gas as an example, its high price was the result of its shortage, and the country struggled to pump enough to run and fuel the nation. To begin combating the issue, the industry began drilling in the Haynesville Shale in northwest Louisiana. This discovery turned out to be one of the biggest ever, and helped along the rise of hydraulic fracturing and horizontal 54
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drilling, which has become a popular — if controversial — new technology for the industry. Some call it a game changer. “That natural gas changed the whole energy market,” Briggs says. “Now we’re going to start exporting natural gas. Natural gas prices are down to $2.80 [per thousand cubic feet], which is too damn low as far as the oil and gas industry is concerned.” But this is also a good thing, as natural gas has helped create an industrial renaissance for the petrochemical industry. These American companies can now produce products cheaper than China because China’s fuel and energy costs are much greater. “We now have all this industrial construction and manufacturing going on that’s going to bring so much business to Louisiana,” Briggs adds, “and even though economic development likes to say they brought all this business here, what brought all this business here is the Mississippi River and cheap natural gas.” The recession forced the industry to reexamine its practices, which has allowed for hydraulic fracturing and horizontal drilling. Since their inception, Louisiana has doubled its oil production, from 5 million barrels a day to 10 million, and natural gas’ price crash has led many natural gas rigs to switch to oil. “We have once again become the victim of our own success,” Briggs says. “Because we drilled, found all this oil and gas, got all this
In only 10 years, the industry has survived not just Katrina, but the 2008 recession and 2010 BP oil spill.
new technology with hydraulic fracturing and lateral drilling, today we’ve driven prices too far down.”
What the Macondo well blowout taught the industry – 2010 The Deepwater Horizon blowout (or BP oil spill) was another disaster that challenged the energy industry in Louisiana tremendously. It developed into a perfect storm of a public relations nightmare and environmental catastrophe that the oil and gas companies were not ready to deal with. Government regulations have also strengthened, leading to the development of three bodies: The Center for Offshore Safety, The Bureau of Safety and Environmental Enforcement, and The Joint Industry Task Force. All three are used in the development of more advanced procedures, inspections and investigations, and to focus on critical portions of the Gulf of Mexico. “What happened in Macondo is not typical,” says Petrie. “When was the last time you heard something like that happen? That was something we think is a fairly specific incident that they have put a lot of inquiries into and found out more
Hydrolic fracturing for shall gas extraction
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for these federal penalties, helps resolve nearly all outstanding claims for the Gulf oil spill. Oil and gas companies have also found new procedures and technologies to help combat future problems and give potential energy investors in the area peace of mind. “We learned so much from the BP blowout through technology and being able to develop a containment system that our companies now have all partnered up to build these systems so if there is a blowout, we have the equipment to fight it — something that we didn’t have before,” says Briggs. “That gives companies that are sitting out there saying they don’t want to be a BP some relief.”
Today GROUNDWATER
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what has occurred — but a lot of the companies would say they don’t expect that to happen to them because they feel like they have different safeguards in place, and certainly the government is making sure the new regulations are being abided by.” Though nearly five years have passed since the incident, BP only settled with the federal government and the Gulf Coast states on July 2 for $18.7 billion. This enormous price, the highest totals ever
Photo Thinkstock
The oil and gas industry continues to grow in Louisiana, and even more investment has been placed in fracturing and lateral drilling — two recent technologies and techniques that have changed the industry forever. While there continues to be debate about their pros and cons, it is irrefutable that companies are producing more gas and oil than ever before, as oil prices sit at $57 a barrel and gas rests at an all-time low. “Just seven years ago we didn’t have enough gas in the country to do squat with,” says Briggs. “We were only producing 5 million barrels of oil a day, and now we’re producing 10 million. Now we’re exporting, and we have so much natural gas that I wish we didn’t have so much. It’s amazing, but that technology changed everything.” n
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Perspectives | Healthcare Innovation
Open Aug. 1, 2015, University Medical Center New Orleans employs approximately 2,600 people as the region’s only Level 1 trauma center.
Healthier Than Ever Ten years post-Katrina, metro healthcare has a whole new look. By JUDI RUSSELL
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he winds and water of Hurricane Katrina didn’t spare any portion of the New Orleans economy. The area’s health care sector took a beating, as hospitals and clinics were flooded and practitioners fled. But today, 10 years after the storm’s widespread destruction, the city’s health care picture is strong and getting stronger.
New Orleans East Hospital One of the most visible signs of rebirth is the newly built New Orleans East Hospital, an 80-bed facility that opened a year ago at the site of the old Methodist Hospital. After the hurricane and Methodist’s destruction, people returning to eastern New Orleans had to look elsewhere for hospital care, says city Health Director Charlotte Parent. In addition to bringing surgical and cardiac care, the hospital offers gastroenterology, neurology and rehabilitation services as well as diagnostic services for women. Parent is most proud of the fact that the new hospital has already been accredited by the Joint Commission, which evaluates hospitals for quality of care. Conveniently located near a Daughters of Charity Health Center, Joe Brown Park, a new library and a police station, New Orleans East Hospital should serve as “a catalyst for job growth and economic stability,” Parent says. Since its July 2014 opening, the hospital has attracted 56
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a growing number of patients. With no hospital in the area for nine years, people formed relationships with providers in other parts of town, Parent points out. But she expects more and more residents to switch back to a community hospital as they get used to the ease and safety of having a one nearby. LCMC Health manages New Orleans East Hospital for the city, which owns the property.
University Medical Center New Orleans LCMC also manages the billion-dollar University Medical Center New Orleans, slated to open August 1. It will replace the Interim LSU Hospital (ILH), which itself sought to fill the void created when Hurricane Katrina flooded Charity Hospital. UMC New Orleans will be staffed with 2,000 employees and 600 physicians. Dr. Peter DeBlieux, who served as interim chief medical officer of ILH, says people will immediately notice the new medical center’s emphasis on patient care and comfort. “Every single bed will be a private bed, with the exception of 20 beds in the Behavioral Health Unit designed to be shared rooms,” he says. “Every patient care room has windows that face the outside.” UMC New Orleans has a Level 1 Trauma Center that DeBlieux calls Photo courtesy of University Medical Center New Orleans
“a gem.” The hospital has all the services necessary to bring patients to an operating room within five minutes of their arrival at the Trauma Center. “This is life-altering,” he says. Many of the hospital’s doctors and other clinicians trained at Charity, which had a reputation for expert handling of trauma cases. The new hospital will also be a regional hub for patients with pulmonary hypertension, which can lead to heart failure, DeBlieux says. Services that won’t be offered at the new hospital include obstetrics and gynecology, and pediatrics. LCMC offers these services at Touro and Children’s Hospital, respectively. Recruiting health care practitioners to UMC has been easy. “Everybody is very excited to work in that new environment.”
Slidell Memorial Hospital Slidell Memorial Hospital has also ramped up its services recently. In 2011, the hospital realized it was outgrowing its emergency room facilities. After much analysis, the hospital decided to adopt a radical new design that staff members believed would create a better experience for patients and practitioners alike, says Chief Operating Officer Bruce W. Clement. The hospital sent a team to Tampa, Fla., to look at the design. Today, Slidell Memorial’s ER has as its central core an oblong space that holds all of its clinicians (doctors, nurses, techs, etc.) Surrounding this oblong are 31 patient rooms. Outside of the patient rooms is another corridor. “Patients enter from the outer door, and clinicians enter from the inner door,” Clement says. Surrounding the patient and family corridor are a series of reception areas, triage rooms and support services, including a CT scanner. The new addition includes a 38-bed cardiology unit as well. The new system “has been incredibly successful for us,” Clement says. “We have seen an increase (in patients) of 17 percent in the first 12 Photo courtesy of University Medical Center New Orleans
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months.” The hospital is on track to see 35,000 patients in the ER in 2015. Another popular feature of the new ER is the staff’s use of radios to keep in constant contact with one another. Clement expects ER patronage to climb as the baby boomers age and require more medical care. He also attributes growth to the hospital’s convenient location and the fact that it has the largest emergency department in St. Tammany Parish. “We’ve become a regional destination for emergency services,” he says. The renovation project cost $30 million, paid for by a millage that residents voted to continue.
West Jefferson Medical Center West Jefferson Medical Center never closed during Hurricane Katrina and its aftermath, so it was well positioned to meet the needs of West Bank residents as they returned to town. “We didn’t skip a beat,” says Angela Greener, chief strategic officer. The medical center realized that there would be a big need for primary care, Greener says, so it expanded its primary care network, increased the number of primary care doctors in its clinics and beefed up the number of clinics it offered. The hospital has also increased its number of emergency room beds and improved its outpatient services. Like many other medical centers, West Jeff has seen its number of inpatients decline and shift to outpatient services, Greener says, attributing some of the change to the Affordable Care Act. “We’ve adapted accordingly,” she says. For example, West Jefferson’s congestive heart failure management program features a clinic especially designed to keep CHF patients out of the hospital and in their own homes. A proposed lease transaction between West Jefferson Medical Center and LCMC Health is pending approval by the state’s attorney general. Greener expects the announcement to come soon. 58
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West Jefferson Medical Center has expanded its primary care network and increased the number of emergency room beds over the past 10 years.
Health Professionals Flee, Return One drawback to reconstituting the city’s health care sector was the fact that a goodly number of medical professionals fled with their families as Hurricane Katrina loomed. Like so many residents, doctors, nurses and other practitioners found themselves stranded in a variety of cities and states, unsure whether they had an office or hospital back home in which to practice. Dr. Daniel Bode, an audiologist and owner of Associated Hearing in Metairie and Covington, stayed in town during the hurricane and then evacuated to Baton Rouge, where he worked with the American Red Cross helping to process people who needed medical attention. He returned to town in September 2005 and restarted his practice, making “field trips” to see patients around Louisiana who couldn’t come to New Orleans. Today, Bode has rebuilt his practice, specializing in making sure the sophisticated technology in hearing aids is applied correctly to each patient’s individual needs. “The patient care has to precede the technology,” he says. The audiologist needs to find out what situations the patient is coping with — such as the inability to hear grandchildren, follow TV programs, or talk in restaurants — and then match that handicap with the appropriate technology. Of course, not all hearing deficits can be corrected 100 percent, Bode says. But if the audiologist works closely with the patient, usually some improvement happens. “If you can’t run 100 miles, let’s get you to run two, or three,” he explains. People with hearing issues often become depressed. That can result in stress, which in turn can lead to heart involvement. Getting help can Photo courtesy of West Jefferson Medical Center
Dr. Daniel Bode, owner of Associated Hearing, works in the lab with sophisticated hearing technology.
alleviate that stress and depression, Bode says, resulting in an overall improvement in a patient’s health.
Skin Body Health Anti-Aging Institute Hurricane Katrina also interrupted Dr. Kelly Burkenstock’s thriving Metairie practice. She moved her practice to Mandeville, where she opened her Skin Body Health Anti-Aging Institute. Gradually, patients who had left the area after the hurricane began coming back, so Burkenstock reopened a smaller practice in Metairie. Burkenstock says she’s always been interested in pioneering antiaging techniques and often studies abroad to learn about the latest advancements. She offers therapies such as platelet rich plasma therapy, which tightens the skin, and radiofrequency laser therapy, which results in “an overall re-plumping of the skin as well as skin tightening.” She also treats women whose breast implants have hardened and shifted, leading to an asymmetrical appearance. She offers a nonsurgical technique to correct the problem. Because weight loss can be such a challenge, Burkenstock has a fivepart DNA weight loss plan that uses results to determine whether the type of weight-loss program a patient has been following is effective. Everything from your blood sugar to your thyroid gland operation to your hormones and vitamin and mineral deficiencies influences your ability to lose weight, Burkenstock says. Her tests can also determine whether you will fare better with aerobic exercise or lower, slower endurance exercise, or a combination of both. Knowing her patients’ strengths and deficiencies, Burkenstock says, can help them avoid the frustrating yo-yo pattern of losing and gaining that turns so many dieters off. n Photo courtesy of Associated Hearing
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Perspectives | Real Estate & Construction
Rising Above It All Hurricane Katrina radically changed New Orleans’ commercial and residential landscape, for the better. By Kim Roberts
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en years after Hurricane Katrina flooded 80 percent of the city and displaced 400,000 of its residents, New Orleans has risen from the destruction to become one of the fastest-growing commercial real estate markets in the country. Home sales also remain strong. According to Southern Title online, in June 2015, 215 houses were sold in the city with a median selling price of $420,424. General contractor Abry Brothers Inc. is celebrating 175 years in the region this year and CEO Greg Abry says Katrina had a profound impact on his business. “Before Katrina, our work was about 90 percent residential and 10 percent commercial,” he says. “And the residential work was pretty much focused on Uptown, Lakeview and Metairie, doing things like stabilizing, adding foundations and putting in new pilings.” 60
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When the storm hit, Abry says the company’s offices were flooded and trucks and equipment were destroyed. Joining with friends and colleagues, he says the company rallied soon after the storm to help their customers. “We had people calling us from out of town asking if we could go in and gut their house,” he says. Chris Perdomo is the owner of Augustino Brothers Inc. General Contractors. In business since 1995, Augustino Brothers handles both residential and commercial jobs. He says he, too, remembers the cleanup. “Katrina literally brought our city to its knees,” he says. “We had to start completely from scratch to rebuild homes and businesses. Immediately following the hurricane, our company spent most of Photos courtesy of Abry Brothers Inc.
OPPOSITE PAGE: Built in 1941, the red brick colonial at 6319 Willow Street now serves as Tulane University’s Be a Field Alumni House. The building was shuttered following damages sustained in the wake of hurricanes Katrina and Rita. In April of 2008, Abry Brothers, Inc. was contracted to elevate and restore the building. It currently houses the University’s Office of Alumni Affairs. ABOVE: Abry Brothers CEO Greg Abry, doing some quality control.
our time putting tarp on roofs and gutting homes and businesses. And that smell – that smell from the buildings stayed with me for months. It seemed to linger forever.”
Putting back the pieces “Simply put, the neighborhoods with the most money came back the fastest,” Perdomo says. “The Uptown area from St. Charles to the river flooded and had wind damage not as severe as other areas, and came back quicker than other areas. We had a lot of contract work in Metairie and Kenner and from the Jefferson Parish line to the 17th Street Canal area.” Abry says it was during the cleanup phase in the first few years following Katrina that his company’s footprint expanded. “We were doing a lot of leveling and fixing foundations for homes before people could renovate,” he says. “This really opened us up to other areas of the city. And then in 2009 the Road Home grant went through and even people who didn’t have insurance were getting money and we began to work in areas we’d never worked in before, like New Orleans East and the upper 9th Ward.” According to Road2la.org, the Road Home Homeowner Assistance Program, as of 2013 more than $8.9 billion had been distributed to over 130,000 Louisiana residents to help them rebuild and protect homes and rental properties. Adding to the assistance was the State of Louisiana Hazard Mitigation Grant Program, which, to date has paid residents of the coastal area of the state over $621 million to elevate 9,595 homes. “That grant alone could pay a homeowner up to $100,000,” Abry says. “Then you have another $30,000 from Road Home and $30,000 from flood insurance and that means homeowners could be receiving about $160,000 to elevate their home.” Abry says the rapid cash flow generated a new booming business. “Suddenly you had all these people doing home elevation — even Photos courtesy of Abry Brothers Inc.
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somebody who was, say, an electrician,” he says. “We did some elevating during that time but we were selective, just working for people we knew. I didn’t want to give my whole business over to it because I knew the program would end at some point.” In December 2013, the elevation programs ended, but their effects remained. As homes reached higher, solar panels also started popping up around the city, both in neighborhoods and commercial establishments. “Post Katrina, solar panels seriously increased in popularity in the metro area,” Perdomo says. “They’re a great way to not have to depend on traditional electricity. As an added bonus, both residential and commercial owners have the opportunity to sell energy back to the grid and receive significant tax credits.” Perdomo says another noticeable change in the past decade has been spray insulation. “There has been a shift from the traditional insulation that is rolled out and installed to spray insulation,” he says. “The new stuff works really well.”
While commercial and residential sales have increased, the rental market has remained strong. 1st Lake Properties recently completed its first new construction on the Southshore — Bella Ridge in River Ridge.
What’s old is new again According to the U.S. Census Bureau, New Orleans is the fastestgrowing city in America, but it doesn’t just represent the return of residents to a city that lost more than half its population. According to a study conducted by the Kaiser Family Foundation, one in nine current New Orleans residents were not living in the area prior to Hurricane Katrina. And many of those, Abry says, are looking for that old New Orleans charm. “What’s really exciting is to see all these people coming in from 62
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out of town and investing their money in fixing up older homes,” Abry says. “Thanks to them, these old neighborhoods in Central City and the Marigny that may have been bulldozed before the storm are really coming back.” “If you think about it, Katrina was the worst and best thing that has happened to our city,” Perdomo says. “The worst, obviously, because of the destruction and loss that the city experienced, and on the other Photos courtesy of 1st Lake Properties
Quick facts According to Trulia (Trulia.com/real.estate/New_Orleans-Louisiana), as of June 2015, the most popular neighborhoods in New Orleans are as follows: n
French Quarter: average listing price $902,272
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Lower Garden District: average listing price $597,854
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Little Woods: average listing price $123,596
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Audubon: average listing price $990,421
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Central City: average listing price $242,570
side, the best because it put us on the map, made people take notice of our city, and it became a chance for a fresh start.” Abry says that thanks to the federal historic tax credit program (which offers tax credits of up to 20 percent of qualified rehab costs), commercial developers have also been in the preservation business. “We’re seeing tons of work Downtown on buildings that are at least 50 years old,” he says. “Old warehouses and factories are now becoming residential and retail spaces. For our part, we go in and replace foundations and do the shoring and structural repair.” Abry says the company’s business mix is now quite different from pre-Katrina. “We’re at about 60 percent residential now and 40 percent commercial.”
RENTALS STAY STRONG While New Orleans loves to celebrate the old, the new is always exciting. For example, spurred by the city’s resurgence in the last 10 years, the New Orleans metro area has also seen the emergence of new national retailers, including Costco, Arhaus, Tiffany & Co., H&M and West Elm, and most recently, Trader Joe’s. It’s in part because of the boom in new commercial construction — including the growing medical corridor on Canal Street, and revitalization of streets such as Freret and Oretha Castle Haley — and its resultant job creation, that Michele Shane L’Hoste, president of 1st Lake Properties, says the market for apartments has been and remains strong. “We had 3,000 units that were damaged during Katrina,” she says. “Some endured minor damage, and some that were so damaged that they had to be gutted completely down to the studs…Now we have 65 properties and have a waiting list for most, if not all, of them.” 1st Lake Properties recently completed its first new construction from the ground up on the Southshore in River Ridge. “The complex is named Bella Ridge, and it has all of the new amenities that tenants are looking for now – a resort pool, bike sharing, dog park, movie rentals, dry-cleaning dropoff and cabanas with food delivery,” Shane L’Hoste says. “The trend now is toward being able to provide upscale amenities to tenants.” While it is true that Hurricane Katrina gave the city a huge, unforgettable black eye, New Orleans and the metro area have diligently fought back and rallied all of their resources to create a thriving city that has experienced unprecedented growth over the last 10 years. “It feels good to be onto another phase of growth for our city,” Perdomo says. “The focus is on now and the future.” n
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Guest Viewpoint
Same Sex Marriage: What Employers Should Know
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Ryan Delaney is a founding partner of Delaney & Robb Attorneys at Law. The firm was established in June 2013 and is the first law firm in Louisiana to openly focus on LGBT legal needs.
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n June 26, 2015, the U.S. Supreme Court struck down state constitutional bans on same-sex marriage across the nation, ending years of national debate, activism, and litigation pertaining to the issue of marriage equality for same-sex couples. This decision theoretically puts samesex married couples on equal footing with opposite-sex married couples in a multitude of ways. I emphasize “theoretically� in that same-sex couples are bound to run into hurdles while the new law is fully implemented through all aspects of society, including the workplace. Domestic Partnerships
Long before the Obergefell decision, many large corporations were sympathetic to same-sex couples and made domestic partnership benefits available to people who could not legally get married. Now that anyone may marry in any state, companies may eliminate domestic
partnership benefits and require same-sex couples to get married just as opposite-sex couples would to be eligible for benefits. Religious Freedom Issues
Opposition to same-sex marriage correlates most with freedom-of-religion rights and the fear that same-sex marriage violates and threatens individual religious freedom, which includes employers. While the latest legislation to enact a Religious Freedom Act failed to pass in Louisiana, Gov. Jindal issued an executive order to achieve the same results of the proposed bill. It is unlikely this order is truly enforceable, and the order is the subject of a pending lawsuit against the governor. This issue is more of a business owner/ customer issue than employer/employee matter, though in light of the marriage ruling, business owners should be cautious when it comes to using religious views as a justification to discriminate, as that is a defense unlikely to hold up in court.
Social Security Benefits
There were disputes over Social Security benefits following the Defense of Marriage Act Supreme Court ruling in 2013. While the federal government began recognizing same-sex marriage, Social Security benefits for married couples were determined by the marriage rules in the state where a couple lived. So this meant that if a couple got married in New York but lived in Louisiana, they weren’t eligible for Social Security benefits. This is all now moot because all same-sex married couples nationwide are now eligible for Social Security benefits. These benefits include spousal survivor benefits, retirement benefits and lump-sum death benefits. Health Insurance
There are a number of issues that pertain to spousal health insurance benefits. Employers should offer these benefits to same-sex married couples if they are giving these benefits to straight couples since there is no difference between a same-sex spouse and opposite-sex spouse now. Technically there is no requirement for a self-insured company to offer same-sex spouse benefits; however, if an employer chooses to go this route, they are opening themselves up to potential lawsuits in the future. Religious objections won’t likely cut it either if the employer is offering benefits to straight couples. Work Environment
Employees come from all walks of life and backgrounds and surely have different upbringings and backgrounds. Employers should do all they can to create a friendly work environment
where everyone respects one another. Implementing policies through employee handbooks is a good way to educate and foster a work environment where all employees treat each other with respect and understand that families come in many different forms. This can help avoid potential issues of employees having issues with gay and lesbian co-workers, especially when they realize that they are truly no different than themselves. Sexual Orientation is not a Protected Class
This issue is the next battle for LGBT equality. As it stands now, there is no protection under federal law nor Louisiana state law that keeps people from being fired from on the basis of sexual orientation. An employer can fire someone for being gay. So when an employee discloses to his or her employer that he is married to someone of the same sex for the purpose of employee benefits, he could be vulnerable to be fired, and there’s no legal remedy in Louisiana. There are efforts to push for legislation to include sexual orientation as a protected class, which already includes the categories of gender and race. We are in the early stages of this new legal landscape where same-sex couples are finally afforded the same marriage rights as their opposite-sex counterparts. It is going to take some time to iron out all the issues, and there will continue to be legal hurdles and obstacles to face. The answers to many questions haven’t been fully developed yet, and there will certainly be more questions raised as society adjusts to same-sex marriage across the nation. n
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PUBLISHER’S NOTICE: All real estate advertised herein is subject to the Federal Fair Housing Ace and the Louisiana Open Housing Act, which make it illegal to advertise any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. For more information, call the Louisiana Attorney General’s Office at 1-800-273-5718.
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R E A L
$995,000
SHAUN TALBOT
5774sf Main House
sktalbot@talbot-realty.com 504.525.9763 OFFICE www.talbot-realty.com
with 5 bedrooms, 3 full baths, 2 half baths
E S T A T E
504.975.9763
Covington estate on rolling landscaped grounds (3.66 acres) w/ frontage on the Bogue Falaya. Large main house w/ open living & dining areas w/ 2 sided brick fireplace, massive glass walled great room with vaulted ceiling, stone fireplace, huge ground flr. master w/ 500sf closet! Heart pine flrs, wraparound balconies afford wonderful views of the grounds & mature hardwood trees. 1718sf guest house w/ 2 beds/2.5 baths, pool & cabana, dock and boat launch
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Great Offices
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The Work is in The Art By Bonnie Warren | Photography by Cheryl Gerber
Leading architect Wm. Raymond “Ray” Manning showcases the space where his firm has helped rebuild new orleans post-Katrina.
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rchitect Wm. Raymond “Ray” Manning, FAIA, looks out of the window of his 12th-floor office near Lafayette Square and Gallier Hall and considers New Orleans today – 10 years since Hurricane Katrina. “As the person who spearheaded the Bring New Orleans Back Commission’s Neighborhood Recovery Planning effort and a prime member of the team that developed the New Orleans Master Plan, I believe that New Orleans has seen a number of areas which point not only to its recovery, but to a real emphasis on the nature and quality of life throughout the city,” Manning says.
“I have seen examples of progress in the vibrancy of every neighborhood in New Orleans,” he continues. “From New Orleans East to Uptown, there are infrastructure improvements and a host of private and public buildings which bookmark the recovery and vision of a city which is not just recovering but is on a path to its greatest self.” Manning has made his mark in New Orleans for more than 30 years. Today he is one of the leading architects in the city; his firm, Manning Architects, employs 30 people, 15 of whom are architects.
LEFT: Wm. Raymond “Ray” Manning in his office RIGHT: Lobby of the 650 Poydras building, home to Manning Architects since 1995.
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“I am proud of the work Manning Architects has done since the storm, including the recent collaboration with Cesar Pelli on the new North Terminal at the airport; the New Orleans East Hospital, along with the local firm Eskew+Dumez+Ripple (EDR) and in association with Baton Rouge firm WHLC; the Convention Center Mixed-Use Neighborhood Plan, also in collaboration with EDR; and working with Waggonner and Ball Architects on the Greater New Orleans Urban Water Plan, which was recently honored with the National Planning Excellence Award for Environmental Planning from the American Planning Association. Located in the heart of the Central Business District at 650 Poydras St., the Manning office is a beehive of activity with major projects in the planning stages, including the Tulane Freeman School of Business expansion and renovation, Poland Avenue Cruise Ship Terminal, and the Dallas–Fort Worth Airport Terminals B and E redevelopment. Why did Manning select a Downtown location for the company’s office? “When we started our business in 1985, it was just after the 1984 Louisiana World Exposition, 72
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3 5 4 1: A display wall features Manning Architects projects. 2: Manning Architects is located on the twelfth floor of the 650 Poydras Building. 3: Resource room 4: The open floor plan captures maximum light from the wall of windows. 5: Resource room with extensive laminate samples on display.
and I wanted our firm to be Downtown,” he answers. “A family friend had a small office building on Baronne Street, and we moved into that space in the summer of 1985. Then in 1995, we went looking for new space and watched the development of our current location on Poydras Street, between St. Charles and Camp streets, and I thought it was a great location. I had worked on Gallier Hall and was project architect for the development of Lafayette Mall, so this felt like the right place to be.” When the company originally moved into the space as the first occupants, the layout was a blank slate. “I had the idea to create
a plan where light would flood the entire space,” Manning says. “In 2003, as the firm went through a major change in its leadership, the private offices and separation of the principals from the studio where the design collaborations take place was seen as an opportunity to shift the culture of the design studios. At that point, as the sole owner of the firm, I moved into the studio and turned the once executive offices into conference rooms … to allow for constant interaction.” It is somewhat surprising that Manning’s office is not behind closed doors. The amazing 10,000-square-foot space, with its open work stations, encourages creativity. “The display
of a variety of graphics; the conference rooms where a group can come in and pin up their work, leave it there and later return, work well for an efficient work climate,” he says “Clients, consultants and vendors can join in these sessions, and projects are developed in a real spirit of collaboration. The work is the art.” Then he goes on to explain, “The smallest conference room is outfitted with a glass conference room table and sofa. We often use it to have a more relaxed meeting over a cup of tea or coffee. The environment is just another office to allow for fluid and varied communication styles. The entire office is a statement about how we do our business. Clients and consultants have said that the office presents a great first impression. In the end it is the committed and dedicated staff who execute our client’s vision of their projects, who are the real success. “I have spent a lot of time thinking about what architecture is, how architects work, and how best to create a set of habits around crafting buildings and spaces. In the end, the space we work in is a reflection of that process. Future office designs will expand those ideas further.” n BizNewOrleans.com August 2015
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Q&A - Biz Person of the Month
Executive Director Jim Pate has led the New Orleans Area Habitat for Humanity in the construction of over 460 new homes in the past 10 years.
A Healthy Habitat Jim Pate, executive director of New Orleans Area Habitat for Humanity, discusses the impact the organization has had in the city’s recovery and what still needs to be done. By Ginny LaRoe - Photos by Cheryl gerber
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ong before Hurricane Katrina, home ownership remained elusive for a high percentage of New Orleanians. The devastation from the floodwaters only made the New Orleans Area Habitat for Humanity’s role even more crucial. Over the last decade, Jim Pate, executive director of the affordable housing nonprofit, has led the organization through a dramatic expansion, growing from four employees immediately after the storm to nearly 60 during the peak rebuilding period in 2009. In the past decade, approximately 150,000 volunteers from 74
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around the world have worked alongside locals to hang drywall on hundreds of new homes, sledgehammer dozens of decrepit buildings, build wheelchair ramps and new fences for elderly residents, clean up blighted blocks and even plant fruit in a growing number of urban gardens. As rebuilding continues, Pate says Habitat now enjoys a stronger relationship with the business community and is forming new partnerships with advocacy groups to continue to aid some of the city’s most vulnerable residents.
elderly-friendly duplex units. Two units are used by The Ellis Marsalis Center for Music because, frankly, they are so successful they are oversubscribed and needed the space. The village has 72 homes. And we’ve built about 150 in other areas of the upper 9th Ward, some of those are also occupied by musicians. Biz: What were your biggest challenges after Katrina?
JP: Like everyone else, we had the challenges that were directly due to the failure of the levees and flood walls. We lost both of our recently finished AmeriCorps housing projects. We lost every tool we owned and all of our vehicles. We also had the challenge of dealing with the severely damaged human infrastructure. Everyone talks about the loss of roads and buildings and homes, and all of that is incredibly poignant, but we so often forget about the loss of so many workers. To give you an example, the (City of New Orleans) building permit department was totally relocated and was at one point in the convention center and operating with 25 percent of its pre-Katrina employees. Like hundreds of other people, we had a run-in with the corrosive Chinese drywall. So we had to go back and totally remediate almost 200 homes. We had no legal obligation to do so, but we knew our families did not have the resources to do their own rehabilitation. Biz: There were well-documented setbacks to rebuilding initiatives during Mayor Ray Nagin’s administration. What was the most frustrating?
Since Katrina, 150,000 volunteers from around the world have joined in the organization’s efforts.
Biz: How many homes has Habitat built in New Orleans since Katrina?
JP: Habitat has built in excess of 460 new construction houses and done a handful of rehabs. These have been scattered across mostly the Orleans area, but we’ve got about 50 to 55 in St. Bernard Parish and about 50 to 60 in Jefferson Parish. The bulk of the new construction has been in six or seven neighborhoods in Central City, Mid-City, and our key area has been the upper 9th Ward. We have a number of houses in the larger Hollygrove area — which we call the Carrollton Corridor. In eastern New Orleans, we’ve been building in the Pecan Grove neighborhood. Biz: What post-Katrina projects are you most proud of?
JP: The Musicians’ Village was a signature project, but not for the simple reason that it’s a notable project, but because it was so critical as a symbol of our resiliency and our return. And it focused upon the city’s rich musical heritage. We actually started (building out) that project in March of 2006. We have recruited and deployed over 150,000 volunteers, and roughly 40,000 worked on the village project. At that point in the recovery, seeing those numbers of volunteers coming in was emotionally and spiritually uplifting for all of us local people working on the recovery. The fact that we had people traveling from all over the world to stand by our side and help us rebuild – that imagery was so important to the community. Biz: Where does that project stand today?
JP: Musicians’ Village residential units are completed, and roughly 98 percent of the houses are owned by musicians. We also have 10
JP: Probably the greatest frustration during the Nagin administration’s response to the recovery efforts was the reliance on Ed Blakely, who I personally thought was totally ineffective. Even if he did not have direct supervisory authority, he had impact up and down the line. I think he chose neighborhoods more or less on a whim and from an academic ivory tower. Doing that, he totally ignored ongoing solid efforts. We were building many more houses than anyone else who had returned and when Ed Blakely was carving out where city resources would be focused, he had talked with me. He then carved us out of the budget because basically — the mayor confirmed later — the feeling was we were so successful that the city could put their resources elsewhere. Biz: Is there a particular neighborhood or single block where Habitat has made the greatest impact?
JP: We built 14 to 16 houses on a one-block-long area named Ferry Place in the Riverbend area of Hollygrove, and that street became a project of an organization called Rebuilding Hope in New Orleans, RHINO, that was sponsored, organized and nurtured by St. Charles Avenue Presbyterian Church. Church members sometimes participated, but they also hosted, recruited and deployed mission groups from Presbyterian (churches?) all over the country. RHINO volunteers exclusively did all but two of the houses. That one I’m very proud of because of the partnership with the St. Charles Presbyterian Church. Ferry Place is a notable achievement because it so exquisitely shows how a focused effort by a group of volunteers can have an impact. Biz: New Orleans has made an amazing comeback, but part of that includes high rents and purchase prices in certain neighborhoods. How has Habitat responded to this?
JP: Because of the generosity of our donors and sponsors, we are able to both build the house and provide the permanent financing to our partner families. These families are not only building the house with 350 hours of what we call “sweat equity” — working on their own and other Habitat houses — but they also take out a mortgage with us that covers the hard costs of their home — the land, material and work of licensed subcontractors. There’s nothing built in to charge for the overhead of my staff, equipment and tools. BizNewOrleans.com August 2015
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Future Habitat homeowners invest “sweat equity,” building their own home, as well as others.
Habitat bases its financing model on Exodus 22:25. I’ll paraphrase because I’m not a preacher: When you sell or lend to a brother or sister in the community, make no profit and make no interest. So every mortgage is at 0 interest. The average rent for a three-bedroom unit in New Orleans right now is approximately $1,100 a month. The total monthly payment for a Habitat homeowner in the last four to five years is between $600 and $700 a month (that includes principal payment, real estate taxes, homeowner’s insurance, flood insurance and an annual termite contract). This means people are able to buy their own home at literally half the cost of renting. We have also initiated a transitional incubator program. This means that if we have an applicant who is almost qualified (for a newly constructed home) we can actually rent them a home at a very reasonable rate, and when they are ready, transition them into full Habitat home ownership. Biz: How has Habitat’s relationship with the business community changed since Katrina?
JP: We were a modest nonprofit that had a fairly light footprint in the affordable housing area. Post-Katrina, there has been a much closer relationship. For example, of our 450 homeowners, over 40 of them work in the hospitality industry. We have a very close relationship with the (Greater New Orleans) Hotel and Lodging Association, and they have put out almost $250,000 in financial support and tens of thousand of volunteer hours building Habitat homes. It’s workforce housing for them. When hotel employees become a Habitat 76
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homeowner, their reliability and stability as employees is vastly improved. We’re also now strong and active members of the homeowners association and have seen tremendous support out of the homebuilders. Now, when they are building a house and have excess material, builders are actively donating that material to our ReStore, where we sell it, and those funds go to build Habitat houses. Biz: Tell me about lesser-known programs such as A Brush with Kindness and Attack the Block.
JP: Everyone knows New Orleans is a city of neighborhoods. If we saw somebody in a wheelchair with no wheelchair ramp, it was not uncommon for us to go down and ask if they needed a ramp. But it was not organized. It was ad hoc. As we have had an increasingly larger presence in specific neighborhoods, we felt there was much more we could do to help the entire neighborhood rebound, rebuild and get better. Part of that is introducing new homeowners, but the other part is to help people with aging in place and accessibility issues. A Brush with Kindness will paint up, fix up, do weatherization, and alter an interior door for a wheelchair to get through. We have also tried to address public spaces — streets, sidewalks, parks — with Attack the Block, which is largely focused around our alternative spring break period. Biz: What are some projects we haven’t heard of?
JP: We have some pilot programs we’re not ready to announce — some strategic alliances and partnerships with other nonprofits that provide services to a needy population. We’re
going to be expanding into, not rental per se, but rental options that address transitional and supportive housing with other nonprofits. We’ve also got a program with the cutest acronym: HUGS initiative, which stands for Habitat Urban Gardens. Through this program we create urban gardens and sell the produce to several prominent restaurants, including MoPho. We currently have 39 urban gardens on Habitat lots scattered throughout the city. We may be the largest urban garden program around. We can only accept volunteers age 16 and over on a job site, but sometimes we have mission groups or school groups. With this program, we can now put them in touch with our gardeners, who are delighted to welcome younger volunteers. It provides an alternative experience for volunteers, and is a valuable opportunity for both them and our local restaurant industry. Biz: Habitat International’s AmeriCorps Build-A-Thon just finished up its blitz building project with a goal of 10 homes in 10 days to mark the 10th anniversary of hurricanes Katrina and Rita. Were you able to meet that goal?
JP: Yes, we did meet the goal. Families have already started moving in. The project was titled “Rebuilding a Street with AmeriCorps” because six of the 10 houses were on America Street in New Orleans East, and the others were within a block. We had 400 volunteers a day every day for 10 straight days, and they were successful in completing the houses. Biz: What unfinished business from Katrina still needs to be addressed by Habitat and the community?
JP: We’ve got so many exciting advancements in the educational system — the opening of the V.A. system, the new Charity Hospital (project), expansion of the streetcars — so many things going the right way. But one of the great injustices that arose was an inequitable distribution of recovery funds between wealthy neighborhoods and poorer neighborhoods. The storm didn’t care if you were black or white, rich or poor, but when the federal government came in to distribute recovery funds it did make a difference. If you had a 2,000 square-foot house in Lakeview and 2,000 square-foot house in the Lower 9th Ward, the amount of funding was related to your property’s assessed value. A person in the Lower 9th got considerably less than someone in Lakeview.
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So one of the big challenges remaining is to restore equity in some of our poorer neighborhoods. The exciting thing is, the State Office of Community Development, Louisiana Housing Corp., and a lot of local neighborhood organizations are banding together to find an equitable way to do that. Getting through the bureaucratic challenges of getting that done remains a very big challenge but it needs to be done. Biz: What other lasting impacts have you seen from the outpouring of volunteer efforts post-Katrina?
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JP: One of the incredible things that has taken place in the last 10 years is the influx of creative, typically young, entrepreneurial folks who are taking our city to new, interesting areas. And I’m proud that many of those young people who have remained and made New Orleans their home and are working hard with whatever they are doing came through New Orleans Habitat or AmeriCorps. Many from AmeriCorps and people who came down with college groups or faith groups to help with the recovery have chosen to stay and give us in the New Orleans area a very bright and exciting future. n
Habitat for Humanity New Orleans Completed projects Habitat Urban Gardens Completed homes after Hurricane Katrina Completed homes before Hurricane Katrina A Brush With Kindness projects Homes currently under construction
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Why Didn’t I Think of That? | Creative Businesses Taking Hold in Southeast Louisiana
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Always in Charge With AMPware’s CrankCase, the power is, quite literally, in your hands. By Anne Roderique-Jones - Photography cheryl gerber
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hile Hurricane Katrina left behind a wide path of destruction and devastation, for some, like Mark Gabriel and Erik Durr, it was a motivating force. Gabriel and Durr are the founders of AMPware, a Baton Rouge-based charging technology company whose products — CrankCase and CrankBox — are both seemingly simple but revolutionary tools for today’s technological world. Billed as the “world’s first power-generating case for smartphones,” CrankCase is a protective smartphone case with a built-in generator. Just unfold the handle and crank to charge the phone. It’s simple. Well, sort of. AMPware has engineered a rare-earth magnet, dynamo generator that produces 23 times more power than solar technology and works any time of day — or night. For the user, 1 minute of simple “cranking” will generate up to 30 minutes of music playback or 5 minutes of talk time. Gabriel and Durr’s other product, CrankBox, is a charger for USB-charged
mobile devices. The USB port is conveniently placed under the handle; just provide a cable. The mechanism is similar to the CrankCase and charge times are the same. With Crank Box, you can essentially charge any USB-powered device like a smartphone, Bluetooth headset or Fitbit — anywhere and anytime. “Our technology is similar to your car’s alternator, but the challenge here was to make it slim and small,” he says. Both AMPware items are still in production and will be available in October.
How it Began Gabriel, a native New Orleanian, was in his first semester at LSU when Hurricane Katrina hit. He evacuated, forgot his cellphone charger, and had no way of reaching friends and certain family members to check in after the battery died on his phone. “You hear different stories and see that people didn’t have communication; I knew it was a problem, but I didn’t know what to do,” he says. “There was no way to charge a phone,
even though you could crank power a radio.” Gabriel later finished his degree at LSU and worked on a few startups before the idea of how to make a self-powered phone came to him from a flashlight. “A little while after the storm, I literally took apart a crank flashlight and stared at the guts like a deer in the headlights. I knew there was a way to make this all work; I just didn’t know how at the time,” he says. After working for a startup beverage company and managing production at a Fortune 500 spice company, his business savvy started to improve. Later on, he says “things started to click.” While the impetus for CrankCase came from disaster, Gabriel says both products are invaluable to everyday life. “For the most part, you’re going to use your home charger overnight, but there’s a gap at the end of the workday and you want to meet friends for drinks, and you’re at 1 percent charge and just want to text them,” he says. “If you have this case, it’s never a concern.”
AMPware co-founder Mark Gabriel testing out a prototype of the CrankCase, a cell phone case that allows users to turn a crank and charge their cell phone. BizNewOrleans.com August 2015
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The Design Gabriel’s philosophy is that products should be of the very best quality, and he wants his company to use the most durable and reliable materials possible. This could mean that they’ll be spending a bit more on screws or using tough materials like polycarbonate for the case. “We know as a startup, we’re depending on good reviews and we need to give the consumer the best possible version of this technology,” he says. For CrankCase, this means making sure the case is slim, pocketsize and lightweight. Currently designed for iPhone 5/5s and 6, the CrankCase handle doubles as a kickstand so that users can watch movies, too. When not in use, the crank tucks neatly away and the entire device resembles a Mophie or other battery-charging cases that are popular. The main difference is that those cases charge only for a short time, while this case is meant to make power forever. The device is also intended to be water resistant. CrankCase and CrankBox will be offered in more color choices in the future, but for now, Gabriel jokes, “It’s available in any color your want—as long as it’s black. “We’re working with a world-class design firm to help improve the look and feel of our products,”he continues. “We just need to find the right partners to help us take this to the next level.”
The Cost It’s important for Gabriel and Durr to keep the price of their products within reach of the average consumer. They’ve calculated that $129 for the CrankCase will help them grow sustainably “without being greedy.” The CrankBox is less expensive at $69, and
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Advanced orders for the CrankCase and CrankBox are being accepted now on AMPware’s Indiegogo site. Both products will be available in October. (Prototypes seen here.)
according to Gabriel, “still ranks as one of the best investments that you could make.” At the very least, you’ll never find yourself at the gas station buying a charger because you left yours at home.
The Competition Gabriel doesn’t hesitate to admit that there’s competition in the crank-charging market, but he and Durr are convinced of their product’s quality. “What sets us apart [from the competition] is that we come in slimmer and more lightweight; but we’re still the most powerful charger that works the best … If the product is heavy and needs its own bag or sling, then people won’t buy it,” he says. “I’m confident that on a product-to-product basis, we’re the best out there.”
Customer Base Initially, Gabriel and Durr envisioned a younger crowd buying CrankCase – one that would immediately grasp the utility. But after the developmental stages, they learned that CrankBox and CrankCase appeal to a wide customer base. For younger people, active on social media or constantly on their phone—it’s a tool to keep their device charged nonstop. For business owners, it’s a way to keep employees “plugged-in” at all times. He adds that CrankBox, especially, can serve as a peace-of-mind purchase for parents to put in the glove compartment or in a kid’s backpack just in case of car troubles or other emergency situations.
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Inspired by a crank flashlight, one minute of “cranking” with a CrankCase equals approximately five minutes of talk time.
The Financials
The Future
In a crowd-funding campaign on Indiegogo, AMPware raised over $60,000 for its initial product. Gabriel is matching those funds, plus more. He adds that the company is also looking to work with local investors to grow CrankBox and CrankCase to its full inception. Both products are sold only on Indiegogo. “We don’t have sales outside of Indiegogo at this point because we want to make sure our customers are satisfied with the product, and what they are getting should be working to the fullest potential,” he says. At this time, the company is focused on finishing product development on schedule and adding new team members. Right now, Gabriel and Durr oversee the production. In fact, the two-member team oversees everything. This helps to keep costs low in the initial phases of the startup. Later, they plan to bring on a full marketing and PR team.
Durr recently moved to California to help the company gain access to more tech resources. As for Gabriel, he says, “Louisiana is my home, and I intend to stay here. We really want to grow organically, focusing on the place that really needs this technology.” He believes that if more people would have had access to AMPware products, that perhaps there could have been fewer casualties from Katrina. “Just being aware in a crisis situation is huge—being able to call or text out for help could really make a difference.” He and Durr want to hit the market with something people will be able to use every day, but also when they need it, so that it can literally be a lifesaver. Currently, AMPware is focused on finishing development for these two products, but plans to grow the company into a well-known brand. Customers can still order their products on Indiegogo before the campaign is closed. They expect to officially launch their products by the end of 2015, but may make some special edition items available locally before the official launch. For Gabriel and Durr, AMPware is about much more than just charging phones; it’s about empowering people. “If people had these phone cases during Katrina, then maybe more people could have kept up with the news or have been able to call out for help,” he says. “It seems everyone is looking for green, renewable power and zero emissions; as an engineer I’ve always been told that was the goal. To literally bring power to the people, in a practical and eco-friendly way, is a dream come true.” n
Achievements and Goals Gabriel and Durr aren’t strangers to startups. The duo met at the LSU Biological & Agricultural Engineering machine shop, and soon found they had a knack for science and entrepreneurship. Their impressive list of inventions includes a machine that can remove oil from protective marsh swamps without destroying the environment. They’ve also invented a revolutionary gun safety. “These inventions have been pretty noble, but my crowning achievement would be to make the never-ending power supply — even Isaac Newton said it couldn’t be done,” Gabriel says, adding that at the increasing rate we’re using our mobile devices, the charts they’ve seen show a huge growth for this industry in the foreseeable future.
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Events New Orleans Chamber Second Quarter Business Luncheon June 16, 2015
BGR Breakfast Briefing June 18, 2015 IBERIABANK
Hyatt Regency New Orleans Keynote speaker Patrick Scheuermann, center director of the NASA Marshall Space Flight Center, discussed the future of the NASA space program and the partnership between NASA and Michoud and the impact it has on the local economy.
Speaker Michael S. Harrison, New Orleans Police Department superintendent, discussed the public safety challenges facing the city and his plans to make the NOPD more effective.
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1. Sr. Astronaut Charles Teamer, Rick Arnold and Roderic Teamer 2. Patrick Scheuermann 3. Mark Shays, Amanda Swift, Sarah Somerville and Billy Soltz 86
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1. Dennis Woltering and Bob Brown 2. NOPD Superintendent Michael S. Harrison 3. Kelly Duncan, Leslie St. Germain and Mark Mayer Photos by Jeff Strout and Cheryl Gerber
Prosper Jefferson Seminar
East St. Tammany Chamber Luncheon
June 24, 2015
July 8, 2015
East Bank Regional Library
Northshore Harbor Center
Prosper Jefferson: Technology to Help Grow Your Business, presented by JEDCO and the Jefferson Chamber of Commerce, featured presentations by Brian Vandegrift of Venyu, Chuck Mutz of Level3 Communications and Kerry Kirby of 365 Connect.
July’s luncheon, titled “News from the Capital” featured guest speakers State Representatives Kevin Pearson and Greg Cromer, along with an update from the Northshore Legislative Alliance (NLA) by Dino Paternostro.
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1. Anthony Viskovich, Lindsey Andry and Chuck Mutz 2. Kerry Kirby 3. Nancy Harmann and Katie Hymel
Photos by Cheryl Gerber and Jeff Strout
1. Linda Crowe, Elizabeth Schneider and Peggy Cromer 2. Dino Paternostro 3. Kevin Pearson, Dawn Sharpe and Slidell Mayor Freddy Drennan BizNewOrleans.com August 2015
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Behind the Scenes
Clean Lines
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As New Orleans as beignets and jazz, the city’s streetcar system began in 1835 and now includes four lines and 66 vehicles, all of which are run every night through a wash at the Regional Transit Authority of New Orleans’ SIS Facility at 2817 Canal St. In an effort to reduce environmental impact, the system is designed to recycle wash water after use and uses more eco-friendly aqueous-based solvents in place of petroleum solvents. Fresh and clean and ready to go each morning, these streetcars continue to serve as a daily reminder that New Orleans is home to one of the first passenger railroads in the country and the oldest continuously operating street railway in the world.