Editor’s Note
Cheers to Your Health! F
ly through the air with the greatest of ease or catch a few invisible waves, all while working off that Poor boy you took down for lunch. Finally, end the day with a nice, cold beer made just steps from your seat at the bar. How’s that for a way to spend a hot summer night in Southeast Louisiana? While the outdoor living is…well, not so great right now, that doesn’t mean there aren’t plenty of options for having a good time and getting a good workout. In this issue we explore the national craft beer craze and how it’s slowly making its way to Southeast Louisiana. Given New Orleans’ reputation as a good time city packed with creativity and individuality, it seems surprising that we are lagging on an industry that thrives on both these qualities. Plus, it’s beer. Cheers to catching up! If, like me, you commonly spend your mornings on a nice run through Audubon or City Park and now it’s gotten so hot you’re having to reluctantly retreat indoors, check out our second feature this month — it gives you plenty of creative options to get fit while also having something fun to post on Facebook. In this issue we’re also excited to bring you the story of a company that’s challenging the norm of a male-dominated industry (Q&A on page 82) and another destined to be a household name in portable power (Why Didn’t I Think of That on page 90). As always, if you know of a great person, company or industry we should be covering, please drop us a line. Is there a topic you’d like to know more about? A particular problem plaguing your business? A great office or new hire you’d like to see celebrated? Let us know. We’d love to give it the coverage it deserves. Happy Reading!
Kimberley@BizNewOrleans.com 4
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juLY 2016 | volume 2 | issue 10
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 Andrew Alexander, Kate Brownlee, Brooke Duncan III, Robert Edgecombe, Steven Ellis, Suzanne Ferrara, Pamela Marquis, Sergy Odiduro, Chris Price, Peter Reichard, Kim Roberts, Jennifer Gibson Schecter, Mark Spencer, Keith Twitchell, Melanie Warner Spencer advertising Vice President of Sales Colleen Monaghan Colleen@myneworleans.com (504) 830-7215 Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Senior Account Executive Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 Account Executive Carly Goldman Carly@BizNewOrleans.com (504) 830-7225 PRODUCTION Production/Web Manager Staci McCarty Senior Production Designer Ali Sullivan Production Designer Monique DiPietro Traffic Manager Terra Durio 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 Event Coordinator Margaret Strahan Administrative Assistant Denise Dean Distribution Manager John Holzer Subscription Manager Sara Kelemencky Subscription Assistant Mallary Matherne AABP 2016 Award in Excellence Best Feature Layout: Magazine | Bronze
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 2016 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
90
48
40
Features
From the Lens
40 The Rise of Craft Beer
78 Great Offices
There’s been big growth, and we’re just getting started.
48 Boutique Fitness Boom
When it comes to exercise options, creativity is king.
The Historic New Orleans Collection
90 Why Didn’t I Think of That?
MobileQubes puts mobile power in the palm of your hand.
96 Behind the Scenes WWL Radio
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On the Cover Nola Brewing Company (3001 Tchoupitoulas Street) has been selling its craft beers in New Orleans since 2008. Since 2011, the Southeast region has seen nine more craft breweries pop up, with more on the way. Photo by Jeff Johnston.
Contents
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26 Columns
20 NOLA By the Numbers
Keeping the water out: We can definitely do better.
22 Dining Biz
The sudden resurgence in local distilleries
74
24 Tourism Biz
It’s not the heat or the humidity, it’s the fun.
26 Sports Biz
Perspectives
News
28 Film Biz
60 Healthcare
18 Calendar
30 Entrepreneur Biz
66 Law
Niko Marley readies to start a promising senior year as a Tulane linebacker.
Summer update
There’s hope for more investment capital in the Crescent City.
32 Biz Etiquette
Want to be successful? Listen to George Washington.
34 Tech Biz
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Office 365: What it is, and isn’t, good for.
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Aging isn’t cheap or easy, but there’s ways to ease the transition.
At least half of law firms don’t have a formal succession plan. Here’s why they could face trouble.
Upcoming events not to miss
36 Biz Bits
Industry news
82
Q&A Courtney Davis-Herbert, CEO of
70 Banking & Finance
Bart’s Office Moving
74 Guest Viewpoint
Industry gatherings
Credit unions are cashing in.
New overtime changes explained
94 Around Town – Events
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Publisher’s Note
Wall Candy
E
arly this year, Biz New Orleans was accepted into a national association of business publishers called the Alliance of Area Business Publishers (A ABP). This organization sets the standard for business journalism. In June, the AABP held their annual meeting and summer conference in Des Moines, Iowa, where the organization presented its annual Excellence in Editorial Awards. I am proud to say that it is here that Biz New Orleans took home its first national award. Our editorial team — led by my partner, Errol Laborde, EVP of editorial and editor-inchief, Kimberley Singletary, managing editor and Antoine Passelac, art director — do an outstanding job and I have to say that it feels great to receive this level of recognition. AABP represents over 70 business publications across the United States, Canada and even Australia. Our award was in Best Feature Layout of a Business Magazine and it is now proudly hanging on our office walls. Not yet two years in print, Biz New Orleans continues with each issue to strive to bring this region a great publication and business network of news. Now, with the No. 1 local news website title from the Press Club of New Orleans in 2015 and this national award from AABP, it’s clear we’re on the right track. Great job team! Todd Matherne
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Meet the Sales Staff
Maegan O’Brien Sales Manager (504) 830-7219 Maegan@BizNewOrleans.com
Caitlin Sistrunk Senior Sales Executive (504) 830-7252 Caitlin@BizNewOrleans.com
Carly Goldman Account Executive (504) 830-7225 Carly@BizNewOrleans.com
Colleen Monaghan Vice President of Sales (504) 830-7215 Colleen@BizNewOrleans.com
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Calendar July 1-3
Thursday, July 21
Essence Festival
Hispanic Chamber of Commerce
Mercedes-Benz Superdome
Tri-Chamber Networking Event
Essence.com/festival
5:30 – 7:30 p.m. Elmwood Self-Storage and Wine Cellar 1004 S. Clearview Pkwy., Harahan
Thursday, July 7
HCCL.biz
New Orleans Chamber of Commerce
Thursday, July 21
2016 Women’s Business Alliance 5 – 7 p.m. Barcadia
St. Tammany West Chamber of Commerce
601 Tchoupitoulas Street
State of Education Breakfast
NewOrleansChamber.org
7:30 – 9 a.m. Benedict’s Plantation 1144 N. Causeway Blvd., Mandeville
Tuesday, July 12
StTammanyWestChamber.org
New Orleans Chamber of Commerce
Wednesday, July 27
2016 Power Breakfast sponsored by First NBC 8 – 9:30 a.m. 1515 Poydras Street
Jefferson Chamber of Commerce
5th Floor Auditorium
Prosper Jefferson Series: Workplace Safety
NewOrleansChamber.org
9-10:30 a.m. JEDCO Conference Center 700 Churchill Parkway, Avondale
Tuesday, July 12
JeffersonChamber.org
St. Tammany West Chamber of Commerce Business In a Box — Franchising for Entrepreneurial Success
July 28-30
SBDC Sponsored Seminar 9 – 11 a.m.
Festigals
610 Hollycrest Blvd., Covington
JW Marriott New Orleans
StTammanyChamber.org
Festigals.org
Sunday, July 31
Wednesday, July 13 Jefferson Chamber of Commerce
Jefferson Chamber of Commerce
5th Annual Jefferson Chamber Grand Prix
Young Professionals Service Project: Bridge House/Grace House
5-9 p.m.
11 a.m. – 1 p.m.
Nola Motorsports Park
Bridge House/Grace House
11075 Nicolle Blvd., Avondale
1160 Camp Street, New Orleans
JeffersonChamber.org
JeffersonChamber.org
July 20-24 Tales of the Cocktail Various locations around New Orleans TalesoftheCocktail.com
We’d love to include your business-related event in next month’s calendar. Please email details to Editorial@BizNewOrleans.com.
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BizNewOrleans.com JULY 2016
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Columns | NOLA By The Numbers NEW ORLEANS WATER FACTS
$15.2 Billion
Total amount of NFIP* payments in New Orleans metro area since 1978
50%
$14.5 Billion
Approximate cost of post-Katrina perimeter risk reduction upgrades
59,218
The maximum capacity, in cubic feet per second, of the city’s stormwater pumps
62
In a natural landscape
What happens to storm water?
40%
10%
Absorption Evaporation
15%
Runoff
Average annual rainfall in New Orleans, in inches
55%
In a “hardened” urbanized area
$10.2 Billion
30%
Projected cost of local flooding and subsidence over next 50 years
* National Flood Insurance Program
Water Everywhere When it comes to keeping it out, we can definitely do better.
I Robert Edgecombe is
an urban planner and consultant at GCR Inc. He advises a wide range of clients on market conditions, recovery strategies, and demographic and economic trends.
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n the spring of 1719, as Bienville was managing the nascent settlement of New Orleans, the Mississippi River overflowed its banks and saturated his project for months. In response, he oversaw the construction of the first levees along the river, thus beginning our region’s centuries-long and still ongoing tension between its greatest resource and its intractable nemesis: water. The city’s location between the Mississippi River and Lake Pontchartrain was chosen specifically for its advantages in commerce and defense. In nearly every other respect, however, the management of water has been one of the defining and most difficult efforts of engineers, political leaders, and residents along and around the river’s crescent. We struggle constantly with water from the river, from the lake, and from the sky, with effects ranging from the inconvenient to the devastating. Indeed, since 1978, approxi-
mately $15.2 billion in claims from the National Flood Insurance Program (NFIP) have been paid to property owners in metropolitan New Orleans. That’s 29 percent of all NFIP claims paid nationwide during that period to a region with less than one-third of 1 percent of the country’s population, obviously in large part as a result of damage inflicted from Hurricane Katrina. In the 10 years since Katrina, the U.S. Army Corps of Engineers has engaged in an unprecedented re-fortification of the region. The upgrades to our storm surge risk reduction system, consisting of new or upgraded levees, flood gates, pumps and other infrastructure, provide 350 miles of enhanced storm protection at a cost of roughly $14.5 billion. These efforts have significantly improved our area’s level of vulnerability from even relatively severe storms, as evidenced in the revised flood zone maps, released after years of protracted discussions between local leaders and FEMA.
On the other hand, the New Orleans area receives an average of 62 inches of rain every year, and when storm water appears in large quantities in short periods of time, our system of drains and pumps are often not up to the formidable task of removing it. The results of localized flooding have long plagued us. In 2010, the Department of Housing and Urban Development funded an effort to reimagine how the New Orleans region lives with water, focusing primarily on how to manage storm water more holistically and efficiently. The result, the Greater New Orleans Urban Water Plan, provides some fascinating data about water in our area, the consequences of how we have controlled it, and proposals for thinking and acting differently. For example, our primary approach to removing storm water has been to “pave, pipe and pump,” through a network of drains and canals. Our system’s pumping capacity of 59,218 cubic feet per second is often inadequate to avoid temporary but significant flooding, and more importantly, it deprives our ground of much of the water it needs and can absorb naturally. In a natural landscape, the ground can and should absorb roughly half of rainwater; instead, it currently is able to absorb about 15 percent. As the plan points out, this deprivation has caused tremendous levels of subsidence—by some estimates, portions of Kenner and eastern New Orleans have lost about 10 feet in elevation over the past 50 years. And, of course, it leads to an uphill and virtually futile battle to maintain road quality and solid housing foundations. All in all, the plan projects that in the next 50 years, the current approach to managing storm water will result in over $10 billion in costs associated with flooding and subsidence alone. The plan’s recommendations—a portfolio of interrelated projects consisting of repurposing canals, developing large storm water retention areas, retrofitting streetscapes, and building requirements for new properties—is ambitious and expensive, but also forward-thinking. At a time when we hear and read so much about sea level rise, the state’s $50 billion Coastal Master Plan, and the threats of storms, it is worth our effort to do what we can within our floodwalls to cope with a daily reality that will not improve on its own. n
Sources: Lawrence Powell, The Accidental City; The Greater New Orleans Urban Water Plan; FEMA
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Columns | Dining Biz John Keife, co-owner of Keife & Co. wine and spirits shop on Howard and Carondelet, has seen a rise in local distilleries over the past few years.
Still Alive Local distilleries are making a comeback. BY Peter Reichard
O
ver the past decade, the old Crystal, Blue Plate, Falstaff and Dixie buildings have become Potemkin factories that actually contain apartments or offices. Given this shift, it may look like we don’t manufacture food and drink around here anymore. Look twice. With words like “locally sourced” now taking up ink on menus, and with being a farmer or maker of things suddenly cool again, it makes sense that there’s a rebound in the local manufacture of food and drink. And it makes sense that restaurants and cocktail bars would feature locally sourced spirits. But while the local beer-brewing trend has been afoot for a good while, there’s a sudden and significant resurgence in these parts when it comes to distilling. John Keife, co-owner of the eponymous Keife & Co., recently gave me an inventory of the newbies. His wine and spirits shop on Howard and Carondelet is filled with little surprises. On a recent visit, one of those surprises was a locally produced gin I 22
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hadn’t noticed before. Artist James Michalopoulos was way ahead of the local distillery trend; his Celebration Distillation began barreling Old New Orleans Rum back in the 1990s. But Keife has seen a new wave of Louisiana distilleries in just the last few years. He identified six of various sizes. Among the largest is Louisiana Spirits Distillery in Lacassine. It focuses solely on the increasingly visible Bayou Rum. The varieties include the standard brown, a satsuma rum liqueur, a spiced rum and a clear rum. Another big player is Donner-Peltier Distillery in Thibodaux. It produces a dark rum, a clear rum and a “praline” rum under the Rougaroux label. It sells a rice vodka and an 11-botanical gin under the Oryza label. It also makes a high-end rye whiskey called LA1. In New Orleans, Atelier Vie makes two gins — one of them a golden colored “barrel-finished reserve” gin — called Euphrosine #9. Atelier Vie also makes two
absinthes, Toulouse Green and Red. The company’s “Buck 25” vodka is, as the label suggests, a potent 125 proof. And it makes Riz whiskey, using Louisiana rice. Despite its name, Cajun Spirits is also located in New Orleans. Its makes Crescent Vodka and 3rd Ward Gin using sugarcane. With all that sugarcane lying around, Cajun Spirits has put together a new rum called Tresillo. Keife identified two other distilleries whose products are not in wide circulation. One is New Orleans’ Soc Au Lait Distillerie, maker of Seersucker Vodka. The other is Rank Wildcat Spirits of Lafayette, which makes Sweet Crude Rum (white) and Black Gold (brown). Among the factors driving the distillery trend, Keife says, are a loosening of state regulations, “increasing consumer interest in locally sourced food products” and “the renaissance of the American cocktail.” The public wants “unique, artisanal spirits,” he says. Keife knows of four additional startup distilleries set to open in the next couple of years. “As restrictions are eased and the vestiges of prohibition continue to wane, we’ll only see more startups,” he says. But they’ll have to compete. The Crescent City has a limited market, Keife adds, “even as libatious as New Orleanians and its guests are.” In the meantime, quality should improve “as distillers find their rhythm” and they experiment more with Louisiana products such as sweet potatoes, pecans and chicory, Keife says. He also looks forward to a time when longer-tenured manufacturers have kept spirits in barrels longer: “I’d really like to see what some 10-year-old barrel-aged Louisiana whiskeys and rums could do.” n
Photo Cheryl Gerber
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Columns | Tourism Biz
Summertime in NOLA We don’t beat the heat, we embrace it.
S 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.
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ummertime brings a different state of being in New Orleans. The good times still roll, but they do so at a slower rhythm. Leisure is truly the order of the day, and July is a perfect time to pace yourself. Traveling to New Orleans over the summer is often more affordable, with airlines and hotels offering deals to entice those intimidated by the heat. It’s easier to book rooms and upgrade your options. It’s even more likely you’ll get a coveted restaurant reservation and won’t have to contend with a crowded Frenchmen Street for afterdinner music plans. If all of that isn’t reason enough to vacation in NOLA in July, here are a few highlights this month. Essence Festival arrives every July 4 weekend and brings not only incredible musical acts, but also seminars that
range from small-business development to fashion styling. Their Empowerment Stages speakers offer more than 50 free events and feature experts addressing issues in the music industry, education, spiritual health, and civic engagement, just to name a few. Some heavy hitters include: Misty Copeland, Faith Evans, Melissa Harris-Perry, Soledad O’Brien, Terry McMillan and Rev. Al Sharpton. The musical lineup is stellar as well, with headliners like Kendrick Lamar, Mariah Carey, Maxwell and Puff Daddy & the Family, while smaller stages and lounge areas bring throwback talent like Digable Planets and newer artists like Leon Bridges. If running with the bulls is on your bucket list but Spain is out of reach, then San Fermin in Nueva Orleans on July 9 should be on your radar. That Saturday
you can participate in the Running of the Bulls fundraiser, but rather than risk being gored by a bull, you will likely be hit with a whiffle ball bat wielded by a roller derby skater. Sound insane? It is. There are also events before and after the bull run and this year marks its 10th anniversary. What would a trip to New Orleans be without an adult beverage? So why not plan an entire trip around our world-famous Tales of the Cocktail? Running July 19-24, it features seminars and trainings primarily for people working in the bar industry, but it also features “Dining & Drinking” events that are open to the public. At its website, www.talesofthecocktail.com, you can choose ether Industry Professional or Cocktail Enthusiast and plan your participation from there. Award-winning bartenders from around the world will be moonlighting with local talent, and special fixed-price menus are available at participating restaurants. And if you want to try your hand at crafting some exotic cocktails, Tales’ website also has recipes and insider tips for success. But if you really want to slow things down and avoid crowds on your trip, I recommend staying in town during the week. The true character of a place is most easily revealed during the week. What feels better than eating brunch in f lip-f lops while seated next to people wearing suits for a business lunch? That juxtaposition is common around the French Quarter and Warehouse District, although of course I recommend checking a restaurant’s dress code prior to arriving. No f lip-f lops at Galatoire’s! Traveling in New Orleans during the week is made even easier with resources like #HappyTuesday (GoNola.com/happytuesday). You can get great deals on midweek hotel stays and discounts at stores and events. Have you ever tried staying at a larger hotel during the weekend for lower rates, but then booking rooms at a boutique hotel during the week? Just because you are in the same city for a week doesn’t mean you have to rest your head at the same place every night. So pack your linen shirts and sunblock, listen to some Anders Osborne on WWOZ, and explore the pace of life and culture the humidity brings out in New Orleans. n
Photo Jared Howerton
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Columns | Sports Biz Nico Marley at a glance Name: Nicolas Marley Position: Linebacker Experience: 3L Height / Weight: 5-10 / 208 DOB: Jan. 5, 1995 Class: Senior Major: Business, marketing Hometown: Weston, Fla. High School: Cypress Bay Career stats: 37 games with 36 starts, 231 career tackles (145 solo, 86 assisted), including 36.5 tackles for loss, 3.5 sacks, three interceptions, five pass break-ups, three forced fumbles and four fumble recoveries Accolades: 2015 All American Athletic Conference First Team selection; 2014 All American Athletic Conference Honorable Mention honors; 2013 Conference USA Co-Freshman of the Year, C-USA All-Freshman Team
Get Up, Stand Up With a strong senior year, Nico Marley is hoping to improve Tulane football and his prospects for a professional career.
O 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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ne of Bob Marley’s more famous lyrics says, “One good thing about music is when it hits you feel no pain.” The same thing can’t be said about the reggae legend’s grandson, Tulane linebacker Nico Marley. Entering his senior year, Marley is the most recognizable player on Tulane’s squad. He has been a starter since the day he arrived on the Uptown campus, and will be a linchpin in new head coach Willie Fritz’s defense this season. “I’m looking forward to more wins, most importantly,” Marley said. “Also looking forward to having the best year I’ve had yet at Tulane. I want to finish out my career strong and not leave anything on the field.” That’s an exciting prospect for
the Green Wave, who finished 3-9 the past two seasons. Marley was named an All American Athletic Conference first-team selection last season, after leading the Green Wave defense with 82 tackles, 13 tackles for loss, one forced fumble, one interception and one sack. Listed at 5 feet, 10 inches, and 208 pounds, Marley is undersized, but his speed, athleticism and knowledge of the game have made him exceptional despite his relatively small stature. This offseason he’s been working on developing his leadership skills as an extra attribute to help him make it to the next level. “I’ve been a guy who our team has looked to as a leader. I’ve led by example, but I need to take a larger step in providing vocal leadership,” he said. “I want to
do my best to live out my dream. I’ve wanted to play pro ball my whole life. I’ll have to do things I haven’t done yet.” Marley has learned a lot about football and defenses from his father, Rohan, who played linebacker at the University of Miami from 1992-1994, alongside future NFL Hall of Famer Ray Lewis and Dwayne “The Rock” Johnson, and later in the Canadian Football League. Marley and his style of play have drawn comparisons to beloved former New Orleans Saints defensive captain Sam Mills (5 feet, 9 inches, 232 pounds). He is hoping the characteristics he shares with Mills will help him reach his goal of playing professional football. “Sam Mills was a great player on the field and off the field,” Marley said. “I’m honored to be compared to him.” For now, though, he’s focusing on wrapping up his marketing degree and getting his teammates ready for the coming season. “I love seeing our players grow and get molded into who and what they’re supposed to be and want to be,” he said. “Not everyone is able to start right away. Some are redshirted. I’ve been ahead of the pack, but to see other players have the opportunity to do what I know they are capable of is an awesome feeling. “I’m looking to do great things with these guys.” n
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Columns | Film Biz says Vosbein in his June letter. “Local economies enjoyed an average infusion of $6-$9 for every $1 the state spent to encourage film and television production. LED experts believe that for every direct job created by film production, two indirect jobs are created.” In light of the recent good news, the LFEA is determined to spread the word to Hollywood. “Over the summer, LFEA plans to lead a delegation with LED officials, local leaders and key legislators to visit Hollywood and meet with producers and studios executives one-on-one,” Vosbein said in his letter. “Our goal is to educate them further about the developments that kick in on July 1 and encourage them to bring film productions back to Louisiana.” Meanwhile, production continues.
Some Good News As the weather heats up, the film industry is getting some relief.
S 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.
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ummer is in full swing, which means the film industry, like many of us, slows down for a while. This summer, however, there is some much-needed good news — the first being that the state is again buying back film tax credits at the rate of 85 percent of face value. The suspension that started July 1 of last year officially ended June 30 — welcome news for an industry struggling for some sense of stability. Unused tax credits also roll over and — according to the president of the Louisiana Film & Entertainment Association (LFEA), Robert Vosbein, in his president’s letter last month — this could result in over $50 million added to the annual $180 million tax credit cap for the upcoming fiscal year. Efforts have also been made to clarify language from last year’s changes that has been particularly detrimental
for local film crews. Due to murky language, 6 percent of all payments to film crews, including things like housing, per diems and other nontaxable items, have been withheld. The change brought grief to not only crews, buy payroll personnel. Thanks to work from the LFEA to change the language of the tax to apply to only taxable income, relief on this issue is expected in the near future. As of press date, the legislation had passed the House and Senate and was waiting on the Governor for approval. Though not called into the second special section, LFEA continues to fight for the industry. “Even though anti-film legislators often refuse to acknowledge it, the economic impact from film productions is estimated by the state’s experts to be between $1 billion to $1.6 billion per year,”
Beginning Production On June 27, principle production began on two feature films, “Supercon” and “Girls Trip.” Set in the colorful world of comic book conventions, “Supercon” stars a group of comic book artists and former stars who conspire to rob a crooked promoter. The comedy is written and directed by Zac Knutsen (co-founder of ChopShop Entertainment out of Newport Beach, California) and is set for a 2017 release. Universal’s “Girl’s Trip” — produced by Will Packer (“Ride Along,” “Think Like a Man”) and directed by Malcolm D. Lee (“Barbershop: The Next Cut”) — chronicles the adventures of four friends who travel to New Orleans for Essence Festival. Expected release is August 11, 2017. Wrapping This Summer “Mudbound” a feature film set after World War II in rural Mississippi that features, among others, famed singersongwriter Mary J. Blige and Oscarnominated actress Carey Mulligan (“An Education,” “Suffragette”) wraps July 9. On July 14, principle production wraps on a new TV series for the Oprah Winfrey Network called “Queen Sugar.” Co-created by Winfrey, the series — based on the novel by the same name by Natalie Baszile — tells the story of two sisters who inherit an 800-acre sugarcane farm. “Juarez” a new medical drama for FOX, wraps August 19. n Photo Thinkstock
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Columns | Entrepreneur Biz
Solving the Shortage Village Capital aims to bring more investment capital to New Orleans.
H 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.
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ere’s today’s fun fact: according to the Village Capital investment firm, “78 percent of venture capital in the U.S. goes to just three states.” Louisiana — you will not be shocked to hear — is not one of them. As a result, “we are missing out on a lot of opportunities,” points out Jared Marquette, manager of VilCap Communities, a new enterprise aimed at addressing this imbalance. “There are a lot of solutions to global problems that are not getting off the ground.” “Entrepreneurs across the U.S. can solve society’s greatest problems, building their communities in the process,” adds Ross Baird, executive director of Village Capital, “yet most entrepreneurs don’t have
a shot at the resources they need to grow.” Investment capital presently concentrates in three cities: Boston and New York — large markets with substantial financial resources — and San Francisco, also a wealthy city with the added advantage of proximity to Silicon Valley. To break through this financial barrier, Village Capital has designated 16 cities throughout the United States as VilCap Communities — and hopefully you will not be shocked to hear that New Orleans is one of them. VilCap’s approach is to partner with individuals and organizations in each of these communities (Propeller and the New Orleans Start-Up Fund are the New Orleans partners), then find, train and
invest in startup companies in each city. Each community commits to providing a minimum of $50,000 in local capital. Peer review is another key component of methodology, with VilCap bringing together successful entrepreneurs to analyze, mentor and even invest in the startups identified through the program. As Baird pointed out in a presentation during Entrepreneur Week, this leads to much greater willingness to invest in truly innovative ideas and also to break through the additional barriers of gender and ethnicity. As this column has noted before, new business owners are still overwhelmingly white and male. Marquette also sees the disinvestment in women- and minority-owned businesses as a major impediment to building a better world. “If we are going to solve big world problems, like food distribution or global health, we need to look to a larger group than white men in big cities.” In service of this objective, VilCap looked beyond the most common types of startup businesses, such as tech and service, in selecting the participating cities. The press release announcing the VilCap launch cited industries such as “health, education, water and energy, food and agriculture,” among other fields of opportunity. According to Marquette, the postKatrina rise of entrepreneurism landed New Orleans a spot among the VilCap Communities. “New Orleans was rebuilt by entrepreneurs, which makes it a good place to develop and get support for early ideas,” he observes, adding that factors like the large number of charter schools also contribute to the local entrepreneurial ecosystem. Marquette also notes that the new program seeks to increase local entrepreneurs’ knowledge of national and even global investment and entrepreneurial systems as a way to build capacity within the city and region. “We want to create self-awareness of New Orleans as its own entrepreneurial system,” he says. While building a local investment architecture and supporting individual startups — especially women- and minority-owned businesses — is the methodology, Village Capital clearly has the big picture in mind. “We can’t complain about not solving world problems,” he adds, “if we don’t put people in a position to solve them.” n Photo Thinkstock
BizNewOrleans.com JULY 2016
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Columns | Biz Etiquette
Want to be a Success? All you have to do is follow the rules.
A
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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t 14, George Washington — known for his impeccable manners — wrote down 110 rules from the English translation of a French book of maxims designed to improve manners, moral virtues, social interactions and self-control. This list became “George Washington’s Rules of Civility and Decent Behaviour in Company and Conversation.” It’s one of many etiquette books on my shelf. In 1922, “Etiquette in Society, in Business, in Politics, and at Home,” by Emily Post, provided the newly rich and immigrants alike with tools needed to navigate a confusing system of rules. Countless etiquette books came before and after “Etiquette,” now in its 18th edition, but even Washington’s doesn’t hold a candle in popularity. The topic of exactly what habits and maneurisms will
lead to success, however, is still hotly debated, as evidenced by “Rich Habits: The Daily Success Habits of Wealthy Individuals,” the latest book by speaker and author Tom C. Corley, in which he outlines five etiquette habits always employed by successful people. Corley studied the wealthy via his Rich Habits Institute for five years to uncover the secrets to their success. Corley pinpoints exactly which rules that, if you only learned a handful, would make the biggest difference. “When kids enter the real world and begin their job search they will face a tremendous etiquette learning curve that could result in being passed over for a job for some minor faux pas they never learned at home,” Corley writes on his blog at RichHabits.Net. Corley advises parents to
teach the following to their children. For those who never learned, however, my philosophy is that it’s never too late. (Note: This is available in more detail on his website.) n Introduce yourself. Give a proper handshake, smile, make eye contact and ask questions. n Remember birthdays, interests, spouses’ names and other little details. Corley says a cornerstone habit of wealthy people is that they build relationships with other successful people and maintain them via engaging, learning about them and following up with phone calls to just say hello or offer birthday greetings. n Dress for the occasion. The wealthy know how to dress for work, formal and casual dinners, interviews, and every other social or business occasion. Master it. n Table manners matter. Learn basic dining etiquette rules, such as waiting until everyone has their food before you eat. Successful people know how to eat and so should you. n Send thank you notes. If someone does you a favor or refers a client to you, send a thank you card. Corley cautions against emailing or thanking the person on social media, asserting that the card is more personal and indicative of your character. Basically, it’s all about relationship building. People don’t gain success in a vacuum. Every job, promotion, business contact made or referred comes about because another person thought highly enough of you to offer an opportunity. Remembering a birthday or sending a thank you note goes a long way toward nurturing relationships, which so often are relegated to Facebook friendships and nothing more. In Washington’s list of 110 rules, No. 1 states: “Every action done in company ought to be with some sign of respect to those that are present.” You could easily remove “in company” and “to those that are present,” and craft a philosophy for life that will set you up for success: Every action done ought to be with some sign of respect. It’s never too late to develop new habits and polish old ones. Just listen to George. n
BizNewOrleans.com JULY 2016
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Columns | Tech Biz
A Look at Office 365 What it is, and isn’t, good for.
I Steven Ellis
has spent the last 16 years working at the intersection of business and technology for Bellwether Technology in New Orleans, where he serves as the company’s vice president.
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believe that Software as a Service (SAAS) — when vendors provide fully functional software to end users over the Internet on a subscription basis — will be the dominant model for delivering applications to small businesses for a long time. As Microsoft’s main SAAS offering, Office 365 is something that all small-business managers should understand, but I find that many are still confused about what Office 365 is and what it is and isn’t good for. I will try to answer those questions, tackling the major components of Office 365 one at a time. Microsoft Office When licensed via Office 365, Microsoft Office comes in two fundamentally different styles: Office Pro Plus and Office Online. Many people don’t realize that Office Pro Plus delivered via Office 365 is virtually undistinguishable from the traditional volume license and retail versions. Once installed, it works just like any other Windows
application, with the added benefit that each user subscription includes licenses for five computers and five mobile devices. Office Online, on the other hand, is a version that runs in a web browser and lacks many features. It’s akin to Google Apps, meaning that it may work fine for basic word processing and spreadsheet tasks but is not yet ready to replace the installed version for power users or for those requiring integration with other software. Exchange Online Exchange Online is the email component of Office 365. With features like unlimited mailbox size, archiving, and encryption for a reasonable cost and good performance, it makes the reasons for hosting one’s own email few and far between. Unless your requirements are unusual, if you want to use Outlook and organize email using folders, host with Office 365; and if you want to use a web browser and organize via tags and search, host with Google. It’s that simple.
Skype for Business Skype for Business is a component of Office 365 that includes web conferencing, instant messaging and voice calling. In my experience, it works quite well when the other party is already set up but is a little more cumbersome than other options when dealing with third parties who are not on Office 365. Microsoft recently released a feature called Cloud PBX with PSTN Calling, which allows Skype to completely replace a traditional phone system. It currently lacks key features like an auto-attendant, and its pricing is not disruptively low like Exchange Online’s, so I’m not yet too excited, but it’s worth keeping an eye on. SharePoint Online SharePoint Online is an Office 365 platform for building web applications like corporate Intranets, discussion boards and document repositories. While it is quite easy to get basic functionality up and running quickly, I have found it to be relatively difficult to customize and somewhat buggy when you push its features beyond the basics. For those reasons, I don’t often recommend it — with one notable exception. I find SharePoint to be a great solution for centrally storing Microsoft Office documents that involve a lot of collaboration. Because of the way that Office integrates with SharePoint, you don’t have to use the SharePoint website — you can just open and save the documents directly within the Office applications. And having the documents stored in SharePoint makes it easy to share links that open directly in Office, avoiding the usual email attachment or download processes that sharing often entails. OneDrive for Business OneDrive for Business is Office 365’s solution for syncing files from the cloud to a personal computer. It’s a perfectly good place to store personal documents, as it comes with the same collaboration functionality as SharePoint documents. It also can be used to sync documents stored in SharePoint to personal computers for offline access or better performance. The main catch is that it doesn’t sync to a server or shared computer, so if you have more than a few people working in one location, there may be better options. n
BizNewOrleans.com JULY 2016
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Biz Bits - Industry News Around town
For every one dollar that the state of Louisiana spends on UNO, the university generates about another $17. Quite simply, that is a staggering rate of return UNO President John Nicklow, speaking about the university’s new economic impact study, conducted by its Division of Business and Economic Research. The study found UNO’s impact on the eight-parish New Orleans metro area during the 2014-2015 fiscal year to be $470.1 million.
Jefferson Parish in 2015 Population: 433,401 Median Household Income: $46,302 Civil Labor Force: 220,772 Average Annual Wage: $47,758 Unemployment Rate: 5.8% Residential Construction Permits Issued: 2,158 Value: $105,266 Commercial Construction Permits Issued: 926 Value: $145,816 SOURCE: JEDCO 2015 Annual Report
Louisiana cities with access to the Best 401(k) Benefits PlanS
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COMING SOON (According to a recent SmartAsset study)
UNO Digital Animation Studio The University of New Orleans has received a $94,728 grant from the Louisiana Board of Regents to build a digital animation studio. The studio — an 11-station laboratory housed at Earl K. Long Library — is expected to be available to students in the spring of 2017 and will serve to better equip them for jobs in animation and special effects. In the New Orleans metro area, the annual mean wage for people working in that field is nearly $73,930.
Employer Contribution Percentage
Investment Performance
Administrative Fees
Best 401(k) Plans Index
57.5%
5.6%
0.1%
84.48
2 Marrero
66.9%
5.0%
0.3%
82.53
3
31.5%
10.1%
0.1%
81.34
4 Mansfield
52.7%
3.1%
0.1%
80.28
5 St. Gabriel
46.1%
5.4%
0.1%
80.25
New Destinations from MSY
6 Harvey
58.4%
4.4%
0.2%
79.89
7 Springhill
38.8%
5.3%
0.1%
77.99
Clearwater, Florida (Allegiant Air) service currently underway twice weekly
8 Monroe
26.9%
8.1%
0.1%
77.25
9 Covington
36.9%
6.2%
0.1%
77.07
10 Zachary
37.7%
4.7%
0.1%
76.85
Rank
City
1
Belle Chasse
New Orleans
JULY 2016 BizNewOrleans.com
Frankfurt, Germany (Condor) twice weekly from May 3 to September 27, 2017 Destin-Fort Walton Beach, Florida (GLO Airlines) daily service begins June 24
Recent Openings
Pontchartrain Hotel
SVN | Graham, Langlois & Legendre
On June 17, the famed Pontchartrain Hotel at 2031 St. Charles Avenue in New Orleans’ Garden District reopened. A project of AJ Capital Partners and John Besh’s Our House Hospitality, the 106-room hotel was built in 1927 and played host to prominent figures including Frank Sinatra and Tennessee Williams, the latter of which wrote “A Streetcar Named Desire” while living in the hotel.
Commercial real estate brokerage firm SVN | Graham, Langlois & Legendre, out of Baton Rouge, opened its first office location in New Orleans June 1 at 139 Enterprise Drive in Gretna. Having quadrupled in size in less than two years, this past April, SVN became the third largest CRE firm in Baton Rouge.
California Building On June 28, Malin Construction celebrated the grand opening of the California Building at 1111 Tulane Avenue. Among the oldest International Style buildings in New Orleans, the former 10-story office building has been revitalized as a mixed use building with retail space on the first floor and 167 luxurious residential units.
Select Laboratory Software On June 6, North Carolina-based Select Laboratory Software announced the company’s expansion into New Orleans with an office on 650 Poydras Street. SLS develops cloud-based medical laboratory software used in toxicology and clinical laboratories across the country. The company is expected to hire up to 25 people, with the first five to 10 to start by the close of this year.
We’d love to include your business-related news in next month’s Biz Bits. Please email details to Editorial@BizNewOrleans.com. BizNewOrleans.com JULY 2016
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BizNewOrleans.com JULY 2016
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In 2012, there were 2,401 craft breweries in the United States. By the end of 2015, that number had grown to 4,225. 40
JULY 2016 BizNewOrleans.com
Tippling
Point The Craft beer boom is finally hitting the Crescent City
By Mark Patrick Spencer
Photo Jeff Johnston
BizNewOrleans.com JULY 2016
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I
n New Orleans, we sit around bars — some of us talking to our neighbors, some of us staring at a random sport or episode of “Jeopardy!” on TV. We like to crowd into the hot spots downtown or the quieter joints just down the street. There are many variables to entertain, but usually one constant: beer. For a city synonymous with drinking, festivals and always being ready for a good time, New Orleans has surprisingly been behind the drinking curve when it comes to the ever-growing craft beer movement that has swept the nation. The national numbers are astounding, harkening back to the buzz of coffee shop openings in the late ’90s, when it seemed like Starbucks were opening up inside other Starbucks. In 2012, there were 2,401 craft breweries in the United States. Over the next three years, that number skyrocketed, hitting 4,225 by the end of 2015. Denver has more than 50 breweries in its city limits alone. Seattle, and the surrounding King County area, is dotted with 91 craft breweries. Even smaller cities such as Cincinnati and Charleston, have breweries in the double digits. Yet you, dear New Orleanians — sitting here reading this, enjoying your pint — only have four microbreweries and two brewpubs in the Crescent City to enjoy that delicious, locally made hoppy IPA or smooth ale. And even though New Orleans — a town fiercely loyal to uniqueness and individuality — prides itself on bucking national trends, in this instance, the city is poised to follow a path that is steadily becoming well worn.
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“Louisiana can support 40 to 45 breweries statewide,” says Kirk Coco, founder and CEO of NOLA Brewing. “Only one out of every 10 beers sold in-state is a craft beer. In Washington state, about 45 percent of sales are craft.”
BACK IN THE DAY
New Orleans was once known as the brewing capital of the South. The late 1800s saw an explosion of local beer production as the city had 30 breweries in operation. You still see some of the names —Jax Beer, Regal Brau — in faded paint, dotting the city landscape. Falstaff Brewing, though not a local brewery, was a major local employer, opening its doors in 1936. The building and its smokestack still tower over South Broad Street as a reminder of the city’s brewing heyday. Dixie Brewing Co. began operations in the city in 1907, and Abita Brewing Co. would open up shop on the Northshore in 1986. Those two outfits were the only local beers one could find in a city dominated by the ubiquitous lagers made by Anheuser-Busch and Miller. After Hurricane Katrina ravaged Dixie’s production facility on Tulane Avenue, the brewery would move its operations north.
A NEW DAY
The re-emergence of the New Orleans brewery scene all started at the Mayfair Lounge in Uptown. Whereas a lot of folks find their inspiration in a bottle, Kirk Coco, founder and CEO of NOLA Brewing Co., found his on the side. Coco, though not the biggest fan of Dixie beer, was drinking the famous lager because it was local. Or so he thought. “After awhile I looked down and read the label of the beer, as Photo Jeffery Johnston
1- The team behind Urban South Brewery — Assistant Brewer Oliver Phillis, Founder and President Jacob Landry, Brewmaster Wes Osier and Vice President Kyle Huling. 2- Kristin and Justin Boswell will open Wayward Owl Brewing in Central City late this summer.
you do,” Coco says. “And even though, to this day, it still says ‘New Orleans beer’ on the label, on the side it said, ‘Brewed in Wisconsin.’ I had another one, but once I knew it wasn’t from New Orleans, it just didn’t taste as good.” Coco, who served 11 years in the Navy, had returned to town after the storm with a little bit of Uncle Sam’s money burning a hole in his pocket, and he was looking to start a business. “Most of our ideas came from that first night at Mayfair,” Coco says. “We drew out the logo on napkins.”
LET’S START A BREWERY
Sometimes the plans you make at bars with your friends actually work. Nola brewery opened its doors in 2008 and has never looked back, with sales increasing every year. But even with its early success, it sat alone. However, in 2015, legislation was passed allowing taprooms to sell Photos Cheryl Gerber
up to 250 barrels a month, or 10 percent of the monthly production, whichever was greater. “I think that piece of legislation will singlehandedly change the local beer industry,” says Jacob Landry, CEO of Urban South Brewery, which opened in March. Sitting at a wooden picnic table in the 20,000-square-foot facility, he continues, “Under the previous law you had to immediately go big volume-wise and equipment-wise to make any money. Being able to sell 10 percent of your monthly production makes sense if you’re Abita, but it doesn’t really help the small craft 1 brewer.” But with the change, craft brewers could sell beer directly to consumers from their 2 taprooms, and develop a vital, second line of revenue with high margins. This allows a brewery to start off, as Landry puts it, “taproom-focused, and distribute your beer slowly. The retail margins subsidize your wholesale stock.” The change in the law spurred interest and new breweries looked to join the New Orleans scene, and become part of a statewide industry ranking 49th in the country for breweries per capita. Parleaux Beer Lab in Bywater, Port Orleans Brewing Co. on Tchopitoulas, and Brieux Carre Brewing Co. in the French Quarter are on the horizon, where they will join local breweries Second Line Brewing in MidCity, and 40 Arpent Brewing Co. on the Westbank in an ever-expanding roster of local labels. Coco, sitting in front of a chalkboard showing NOLA’s footprint across the South, postulates, “Louisiana can support 40 to 45 breweries statewide. Only one out of every 10 beers sold in-state is a craft beer. In Washington state, about 45 percent of sales are craft.”
THE PASSION
In Central City, Justin and Kristin Boswell, co-owners of Wayward Owl Brewing, have taken over the historic Gem Theater and plan for a late summer opening. Justin, emblematic of the dedication and passion needed to exist and thrive in this industry, began his brewing career after Kristin insisted they max out a credit card to send Justin to brewing school. That move, along with a series of interviews, helped Justin land a job at Black Raven Brewing in Redmond, Washington, in 2010, where he started at the bottom, “scrubbing floors and not making a lot of money.” But he was happy with his work for the first time in a long time. “It’s amazing what following your passion can do for you,” Justin says. He would work his way up to being one of the main brewers BizNewOrleans.com JULY 2016
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for the company, but the Lafayette-born Justin had bigger plans. He wanted to come home to open his own brewery. “There’s a big difference between being a brewer and being a brewery owner,” Justin says. No longer just concerned with making good beer, but making good business decisions — and paying a lot of bills. The cost of admission to the craft brewery game comes with a large price tag. Boswell rattles off the prices of bright tanks, a mash kettle, hot and cold water tanks. “The brewhouse alone costs $365,000,” Justin says. Kristin, in charge of the money side of the business, adds that the shipping cost was another $20,000. As always, you have to work for opportunity and it pays to have the help of some friends. Justin says, “If it wasn’t for the help of Scott Wood [co-owner of Courtyard Brewery with Lindsay Hellwig] a lot of voices would have been lost.”
A DIFFERENT KIND OF PLACE
The Courtyard Brewery holds a unique position on the local beer scene. As a craft brewery that doesn’t offer wholesale, craft beer fans can not only imbibe in Courtyard’s creations at the brewery, but also drink beer from other breweries across the nation. It’s a model Co-owner Scott Wood is comfortable with, after having watched Ballast Point Brewing and Pizza Port Brewing in his hometown of San Diego become wildly successful. But it didn’t come easy. In the face of negativity and people telling him he couldn’t open a new type of brewery, Wood dug into the Alcohol and Tobacco Control law book, to see exactly what it said. “It didn’t say that we can’t [open up this type of brewery],” Wood says. “We just had to get them to agree it’s OK.” 44
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San Diego native Scott Wood (left) opened Courtyard Brewery — a taproom and brewery that serves its own, and other craft beers — at 1020 Erato Street in Central City in October of 2014.
Craft Beer: In the Beginning There Was… n
1907 – Dixie Brewing – New Orleans
n
1986 – Abita Brewing – Abita
n
1991 – Crescent City Brewhouse – New Orleans
n
2005 – Heiner Brau Brewing – Covington
n
2005 – Gordon Biersch Brewpub – CHAIN
n
2008 – Nola Brewing – New Orleans
Then the Boom Hit… n
June 2011 – Chafunkta Brewing – Mandeville
n
2011 – 40 Arpent Brewing – Arabi
n
2012 – Heiner Brau rebrands itself Covington Brewhouse
n
July 2013 – Old Rail Brewing – Mandeville
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May 2014 – Gnarley Barley – Hammond
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October 2014 – Courtyard Brewing – New Orleans
n
July 2015 – Second Line Brewing – New Orleans
n
March 2016 – Urban South Brewery – New Orleans
n
Summer 2016 – Wayward Owl Brewing – New Orleans
And More are on the Way… n
Spring 2017 – Brieux Carre Brewing – New Orleans
n
TBD – Port Orleans Brewing – New Orleans
n
TBD – Parleaux Beer Lab – New Orleans
Photo Cheryl Gerber
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And yet another overnight success story — which took two and a half years — was underway. Working with City Hall and the zoning office, Wood helped shape a new ordinance. “I would call the ATC lawyers and ask, ‘Am I allowed to do this?’ Every time they said ‘Yes,’ I would have them put it in writing,” he says. “With the new Comprehensive Zoning Ordinance there is almost a blanket ‘OK’ to pop up any size of brewery within the city limits, within reason.” In a tip of the hat to the unity of the New Orleans brewing scene, Wood says, “The battles that NOLA Brewing fought made this possible. The battles that we fight will make other breweries possible.”
NEIGHBORHOOD IMPACT
A craft brewery, big or small, does not exist in a vacuum. It touches the community surrounding it and beyond. Courtyard Brewery is a vital link in the burgeoning scene on Erato Street, connecting Barrel Proof and French Truck Coffee on Magazine Street to the newlyopened Bakery Bar on Annunciation Street. Instead of drab buildings drivers pass without a thought, folks look forward to and bring their friends to another piece of the city. Tchoupitoulas, a road that stretches along the river for miles with its bustling wharfs and rows of warehouses, is never going to be mistaken for Miami’s glitzy Ocean Drive, but being inhabited by NOLA Brewing and Urban South has added some sexiness to the area. But it’s not just real estate — they work with other local companies as well. NOLA Brewery now houses McClure’s Barbecue restaurant. Urban South’s website was created by RapJab, and their embroidered shirts are made by Orleans Embroidering. Wayward Owl works with Go Mango Neighborhood Restoration.
CRAFT VERSUS BIG BEER
Nationally, craft beer saw a 16 percent sales growth in 2015, totaling $22.3 billion in sales. On the other hand, “big beer” a.k.a. AnheuserBusch InBev and MillerCoors sales growth has gone stale. As craft beer has chiseled in on big beer’s market share, the empire 46
JULY 2016 BizNewOrleans.com
Nationally, craft beer saw a 16 percent sales growth in 2015, totaling $22.3 billion in sales. On the other hand, “big beer” (a.k.a. Anheuser-Busch InBen and MillerCoors) sales growth has gone stale.
has responded on a couple of different fronts. The most surreptitious example is the purchase of once-independent craft breweries like Goose Island, Breckinridge Brewery and Leinenkugel. Budweiser also owns 32 percent of the publicly traded and craftily named Craft Beer Alliance, which owns popular titles such as Kona Brewing and Redhook Ale Brewing. Just like Coco’s realization that night at the Mayfair, the craft beer you’re enjoying might not be so crafty at all. After big beer snaps up a craft brewery, Landry says, “They take out the high-volume beer and brew it in St. Louis. So it’s no longer local. The jobs aren’t local.” “They’re targeting regional breweries that have a large footprint — it’s success by acquisition,” says Wood. “They’re not going out of business, but they’re in a long, slow decline.” AB InBev has struck on another front to prevent that decline, by offering incentives to its distributors to amp up sales of Budweiser products. The mega-brewer sent a chill through the craft-brewing ranks after it introduced a plan that could pay independent distributors up to $1.5 million annually if 98 percent of yearly sales are AB InBev products. With a touch of defiance, and a large dose of common sense, Wood says, “Without linking arms with your brothers and sisters, we’re all going to get destroyed by Budweiser and MillerCoors.”
SUPPORT YOUR LOCAL
That brotherhood and sisterhood of craft beer making is upon New Orleans. Kirk Coco’s scribbles at the bar reignited, however slowly, an industry that at one time ruled the city. And Coco, in the pervading spirit of the scene, lent a helping hand to the newcomers to the local scene. The Boswells, standing inside the Gem Theater, put it best. Kristin says, “In a city this size, it could be dog eat dog.” Picking up on her thought, Justin adds, “But that’s just not craft beer.” n Photos Jeffery Johnston and Cheryl Gerber
BizNewOrleans.com JULY 2016
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T h i n k i n g
Outside t h e
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G y m
Boutique fitness options are cashing in with millennials and are widely recognized as being the future of the fitness industry. By Kim Roberts | Photography Cheryl Gerber
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Mark Berger, co-owner of Higherpower Cycle | Yoga with Brian Baum, oversees two studios in New Orleans (514 City Park Avenue and 1000 Girod Street). The studios combine the popular indoor cycling trend with yoga.
ver the past few years, New Orleans has seen an increase in new, innovative exercise programs offered in ordinary and out of the ordinary locations. These options pay homage to the performing arts, circus acts, hula hooping, indoor surfing, rock climbing, paddleboard yoga, martial arts, and pole dancing, to name a few. New Orleans, however, is only indicative of a growing nationwide trend. Included in the American Council on Exercise’s “10 Fitness Trends to Look Out for in 2016” was that “Experiences, not simply workouts, will become the norm … Boutique studios thrive because they create a catered fitness experience that surpasses the expectation of normal health club patrons.” According to research from the International Health, Racquet & Sportsclub Association (IHRSA) most of the growth in the $24.2 billion (in 2014) fitness industry has come from boutiques and small, specialized studios, the clients of which tend to be largely millennials. Barre fitness is one example of this growing movement toward boutique options. Taking the nation by storm over the past few years, barre cleasses have spread to and been embraced by the Crescent City. While New Orleans has about a dozen different facilities offering barre classes most days of the week, it boasts two gyms that are part of well-established franchises –Pure Barre and Barre3. Each has two locations (as of the opening of Barre3’s Metairie location July 11) in the New Orleans area, but Pure Barre has close to 300 locations nationwide and Barre3 has almost 90 locations across the country. Barre classes are not only meant for dancers; they are intended for anyone, regardless of age, weight or fitness level. As the name implies, the classes are ballet-inspired workouts that intertwine elements of Pilates, dance and yoga. Most barre classes follow the same basic structure, starting with a mat-based warm-up, then a series of arm exercises, and then a lowerbody workout at the barre. The class often finishes with a series of corefocused moves at the barre or a short session on the mat. “Barre 3 has been open in the New Orleans market since 2013 and we are about to open our third studio,” says Owner Kendall Carriere. “We keep expanding to meet and accommodate the growing interest of our clients. Each studio we open has been larger than the last. Our first studio was built to hold 24 people per class, our second studio was built to hold 26 people per class and our newest studio will handle 30 people per class. The interest is definitely here in this city for Barre exercises.”
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CITY SURF FITNESS When one thinks of activities to do in New Orleans, surfing is not typically at the top of the list…actually, it isn’t on the list at all. Luckily for all those beach bums wanting to catch a ride on a wave, Becky Hardin has brought surfing to 5924 Magazine St. Last November she opened the independently owned, 2,000-square-foot City Surf Fitness studio — one of five of its kind in the country. “We aren’t a conventional city, so why should the way we work out be?” says Hardin, who explains her growing client base by the fact that what she offers is something both unique and enjoyable. “Exercise shouldn’t feel like a chore, so when you find something that’s fun and that you can enjoy doing, you tend to stick with it,” she says. “An unconventional workout can do just that, by keeping your attention and making you forget that you’re working out. We have so many clients that say they normally hate working out but love City Surf.” The surf-inspired workouts incorporate balance, yoga, barre, Pilates, strength training and cardio, all executed on a 6-footby-22-foot-wide stability surf board. The SURFSET RipSurfer X boards used during 50
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workouts were actually featured on the TV show “Shark Tank.” It was there where City Surf founders Mitchell Brown and Lauren McHenry saw them and came up with the idea of developing classes. Just like surfing, however, there is definitely skill involved. “There is a learning curve for sure,” says Hardin. “Working out on a surf board takes getting used to. It is a bit harder than it looks, but it is a lot of fun. You don’t have to be a surfer to participate, and everyone can work at their own pace.” City Surf offers six types of classes seven days a week — Beach Body Boot Camp, Big Kahuna, Buddha Board, City Surf and City Surf Circuit, Pipeline and Rip Core. The studio houses 14 boards and employs 11 instructors, including Hardin. “Each class and trainer has its own vibe to keep it interesting,” Hardin says. “The challenge has been educating the public in general. I mean, what is exercise on a surf board? We need to let people know the benefits of this workout in developing different muscles; we have to make it clear who and what we are and how this workout can help tone and shape your body.”
“We have so many clients that say they normally hate working out but love City Surf,” says Owner Becky Hardin. Hardin is shown here working out at the chain’s 2,000-square-foot location on Magazine Street that opened November 2015.
Sessions range in price from $22 for one to $360 for 20; a one-month unlimited membership runs $120; and a threemonth unlimited membership is $315. Surf boards can be reserved before class at citysurffitness.com. Private sessions are available by contacting the studio. Surfing is not just for the young, Hardin says. “Our typical clientele are young professionals,” she says, noting the studio’s large following from Tulane and Loyola universities and that they rely heavily on social media for their marketing. “But we have our fair share of 40- to 50-year-olds as well.” W hile Hardin says the studio is too young to be able to share any solid growth numbers, she says, “We are comfortable with the level of people that are coming in to work out and feel that we are on pace to be where we want to be.”
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CRESCENT CITY AERIAL ARTS With an extensive background in ballet, yoga and Pilates, along with a passion for aerial fitness, Alexandria White founded Crescent City Aerial Arts two years ago. Due to its overwhelming popularity, the facility recently moved to a new upgraded studio with higher ceilings and more floor space at 4430 Euphrosine St. “I have been performing for two years in theatrical productions, community events, festivals and corporate events,” White says. “I got started in the aerial arts with a friend 52
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six to seven years ago when I went to my first class and loved it. So I started training and became an instructor. I am passionate about aerial arts and love sharing that passion with people and seeing them spark with learning something new.” White explains the classes as “a combination of dance and theatrical movements executed while being suspended above the ground on apparatuses.” She says that aerial workouts are designed to build core strength, flexibility and enhance aerobic endurance. “When most people think of this genre, what immediately comes to mind is Cirque du Soleil acts, or more recently the singer Pink’s Grammy performances,” she says. “The best thing about that kind of recognition is that people can experience firsthand what the stars and performers are doing while getting fit.” Crescent City Aerial Arts has four instructors who teach a variety of suspended, anti-gravity classes that include an introduction to aerial arts, trapeze, aerial hammock and silk, aerial yoga, aerial hoop, and aerial jam. The center also offers kids classes for ages 7 to 13, as well as private and semi-private parties. Again, unlike just walking into a gym and hopping on a treadmill, there is some training involved. White said that students are strongly
LEFT: “People can experience firsthand what the stars and performers are doing while getting fit,” says Alexandria White, who founded Crescent City Aerial Arts on 4430 Euphosine Street two years ago. TOP: The classes are a combination of dance and theatrical movements, all conducted while being suspended above the ground.
encouraged to take an introductory class prior to scheduling any of the other classes they offer. Students can register online for classes. Three classes run $70; five classes are $110; and 10 classes are $200. One month of unlimited classes is $200. For the kids, a drop-in fee of $25 per class applies or $80 per month. White says educating the public about the studio’s existence and its fitness benefits is the company’s main struggle. “We’re not only for gymnasts, we’re for anyone, any size or shape,” she says, but notes that a majority of her clientele is currently women in their 20s through 40s. “We use social media and our website to market ourselves quantitatively, but qualitatively speaking it is best to let those who experience it spread the word to others,” she says. “Currently, we have about 1,000 people in our database and see anywhere from 8 to 10 people on average per class on the weekdays, depending on the instructor.”
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NEW ORLEANS BOULDER LOUNGE Just like City Surf, New Orleans Boulder Lounge is finding success by introducing a form of outdoor recreation not naturally possible in the city. Last August, Eli Klarman, Daniel Bressler, Garret Mortensen, Kelsey Confreda, Andrew Weekes and Andrew Dreis decided to bring the mountains to the Big Easy. The crew opened New Orleans Boulder Lounge in a 125-year-old warehouse located at 1746 Tchoupitoulas St. The facility serves as the first and only climbing gym in the city in more than 10 years. New Orleans Boulder Lounge is an indoor bouldering gym, fitness center and community space whose mission is to create an environment that appeals to everyone. “NOBL was developed to provide a climbing destination in New Orleans and a home for the local climbing community,” says Confreda. “We decided to do an all-bouldering gym in order to make climbing more accessible and more social as we reintroduced the sport to New Orleans.” Confreda says that prior to NOBL, the rock-climbing community had to drive five to six hours away for a place to climb. “We had an underground community here that traveled great distances to climb, so we took a shot in the dark and opened a location here to fill that void. “Climbing is a great way to stay in shape and add another component to cross training or other fitness activities,” she adds. “Climbers are passionate about this sport, and we want the sport to grow in the community and to enrich the lives of the people who want an alternative fitness option.” Because climbers scale walls between 12 and 14 feet tall without harnesses or ropes, the prospect of bouldering for the first time can be quite daunting. As such, this sport requires a considerable amount of focus, patience and dedication to ensure a safe, fun and rewarding experience. “Before anyone climbs for the first time, we have them go through a safety orientation so they are familiar with everything,” Confreda says. “Really, anyone can climb. there is no prior experience needed.” Again, millennials are the primary clientele. “We get a lot of kids at NOBL in their 20s and 30s, both male and female, but anyone is welcome,” she says. “Right now we have over 400 members, and we look forward to continued growth.” Day passes and memberships are available at NOBL and range in variety and price based on activity and duration. A one-day usage fee is $16 for adults and $12 for students and kids, and a prepaid membership may cost $70 per month, $195 for three months, and $330 for six months. Family memberships are also available. Climbers don’t need much equipment. Rock-climbing shoes are required and can be purchased at the gym for $75 to $125 or can be rented for $4 a day. In addition to regular workout classes, NOBL offers specialized programs such as climbing school, youth teams, private trainers, a boulder league (competition teams), student night, summer camps and climbers happy hour. They also offer a yoga program and have a small fitness facility on-site. “People don’t naturally think of New Orleans as a fitness destination because of all of the food and beverages and partying that it is known for,” Confreda says. “But in reality there are a lot of fitness options here – something for everybody. The thing with climbing is that people either love it or hate it – it is challenging but worth it. People stick with it because of the whole ambiance and camaraderie.” 54
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TOP: New Orleans Boulder Lounge (NOBL) at 1746 Tchoupitoulas Street is the first and only climbing gym in the city in more than 10 years. BOTTOM: (Left to right) Kelsey Confreda, Garret Mortensen and Eli Klarman are three of the six founders behind NOBL, which currently has more than 400 members.
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HIGHERPOWER CYCLE/YOGA If you want to know how popular indoor cycling is right now, take a look at SoulCycle, the company that started the trend over 10 years ago in New York City. Led by 38-year-old CEO Melanie Whelan, the company’s cultlike following includes multiple celebrities like Nicole Richie, Kelly Ripa and Lady Gaga, and topped $112 million is sales in 2015. As of this reporting, there are currently 62 studios in the United States, but none in Louisiana. Higherpower studios, opened in 2014 by co-owners Mark Berger and Brian Baum, offers a little twist on the cycling craze — combining yoga and cycling together to bring New Orleans a new workout option. The combination pairs high-intensity pedal sessions with the mental and physical discipline of yoga postures. Today, the duo oversees two Higherpower studios, the first located at 514 City Park Ave. and a brandnew location downtown at 1000 Girod St. “We stress the importance of not only physical health, but mental and spiritual well-being,” says Berger. “Our philosophy implements an East-meets-West approach that combines rigorous physical activity with yoga and meditation. We strive to create a welcoming atmosphere that brings balance to people of all ages and skill levels.” Berger says he’s witness to the fact that the industry as a whole is moving away from large, 56
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impersonal gyms and toward specialized studios like his, and he’s betting heavily that the trend will continue. “Brian and I put our last penny into starting this venture,” he says. “We didn’t have any investors in the beginning and just kept putting everything back into the business for improvements — that’s how much we believed in what we were doing. We feel strongly that it is important that there is consistency at the studio, that all of the instructors teach the way that we want them to, and that everyone that comes through the door feels welcome.” Higherpower offers classes for beginners to more advanced students in yoga, cycling, TRX E.P.I.C. (a training system that combines interval training concepts with full-body strengthening) and Bicycling Buddha (the signature fusion workout combines 30-35 minutes of heart-pumping indoor cycling with 30-35 minutes of Power Vinyasa Yoga). “Everyone can do yoga, and it is so beneficial on so many levels,” he says. “Whether you are a beginner or an experienced yogi, Power Yoga is an all-level, full-body, heated workout. And our high-energy, fun and euphoric cycling classes are a mix of nightclub atmosphere and a real outdoor cycling experience. Each bike is equipped with a console displaying your metrics, a smooth carbon belt drive, and light fly wheel. Our leader board will give
LEFT: Erin Huber, cycle instructor RIGHT: Co-owner Mark Berger says that approximately 4,000 people have passed through Higherpower’s doors since its 2014 opening.
you real-time statistics that are all sent back to you via email to better help you track your workout performance.” Berger estimates that approximately 4,000 people have come through Higherpower’s doors since its 2014 opening. To date, the studio has marketed itself primarily through social media and has worked diligently to build and maintain a client list that they stay in touch with through weekly emails. Drop-in rates for a cycling class are $20; a five-pack of classes is $90; and a 20-pack is $320. For yoga classes, a drop-in class is $16, five-pack is $70; and a 20-pack is $240. Monthly packages start at $65 per month. “We are all about attracting all demographics from in and around the city to come to the studio; we do not cater to one age group or gender — we are an equal opportunity workout center and want to encompass New Orleans in its entirety,” Berger says, adding, “Our clientele is currently 75 percent female and consists of mostly young professionals to baby boomers. Yet, don’t let that stop anyone: My mom is in her 70s and she is here weekly for yoga classes.” n
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Perspectives A closer look at hot topics in three southeast Louisiana industries
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& Finance BizNewOrleans.com JULY 2016
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Perspectives | Healthcare
Preparing for the Inevitable It may not be comfortable, but planning for aging and death now can prevent financial disaster later. By Andrew Alexander
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hen it comes to aging, Father Time is undefeated, but that does not mean you should sit idly by and enter your twilight years unprepared. “We plan for weddings, we plan for graduations, and we plan for vacations,” says Richard Briede, sales manager for Lake Lawn Metairie Funeral Home & Cemeteries. “All these different things that you plan for over time. Why wouldn’t we plan for something that will happen?”
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Photo Thinkstock
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Don’t Wait, Get Educated The worst strategy when planning for aging is to have no strategy. Early steps need to be taken to educate one’s self on the many aspects of the aging process, either for yourself or your parents. From financial planning, to selecting potential assisted living or nursing home accommodations, to preparing funeral arrangements, it’s important to begin researching as early as possible. “Truthfully, I think it’s good for people to get the information before they really need it,” says Tracy Gonzales, director of business development at Chateau de Notre Dame. Gonzales encourages potential residents to ask a lot of questions to fully grasp the differences between independent living and assisted living or nursing-home care. “Financially, people don’t realize that Medicare does not pay for you to live in a nursing home,” Gonzales explains. “You either have to be private pay, you have to have a long-term care policy that’s going to pay for it or you have to be Medicaid or Medicaid pending.” It’s never too early to consider signing elderly parents up for the waiting list of your desired assisted living facility, and Gonzales recommends people in their 40s and 50s consume as many presentations on the topic as possible.
Save Early, Save Often Financial planning for one’s geriatric years can seem daunting, especially when you consider the high costs of long-term care in assisted living facilities or a nursing home, potential hospice expenses and eventual funeral costs. According to the Genworth Cost of Care Survey, which provides average rates for a variety of long-term care services, including assisted living and nursing homes, the average annual cost of adult day health care in the New Orleans area is nearly $16,000. Annual costs for assisted living facilities top $45,000, and a private room at a nursing home will run north of $68,000. Tack on an additional $7,000 to $10,000 in funeral costs, per Parting.com, and aging can be quite an expensive proposition. Michel Legrand, wealth management advisor for Northwestern Mutual, advises clients to “save early, save often.” “People who systematically set aside 20 to 25 percent of their gross income on an annual basis, and do that over their working lifetime — it’s hard to fail financially in retirement if you consistently do that,” Legrand explains. Planning to “save early, save often” is especially important in this day and age when you consider that, according to Northwestern Mutual’s 2016 Planning & Progress Study, “one-third of Americans believe there is some chance that they will outlive their savings, with one in three (34 percent) saying the likelihood is 51 percent or better.” Furthermore, “only a quarter of Americans (24 percent) say it’s ‘extremely likely’ that Social Security will be there when they retire.” Legrand believes that while most people begin thinking about retirement when they enter the work force, or at least by their early 30s, they are also unlikely to consider preplanning for aging until their 50s unless they have experienced the aging process with a family member who needed long-term medical care. “It’s kind of all part of the aging process,” Legrand says. “We’re helping them address the risks of aging, which are primarily people outliving their assets and having an event requiring a need for long-term care, which is extraordinarily expensive and can leave one or both spouses destitute if not properly planned for.” 62
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“You’re going to have to be planning this for your parents,” Gonzales says. “It’s not necessarily that the patient needs to go listen to it, it’s the siblings, and it’s the children that need to hear it.” In New Orleans, many people have family members who have already purchased cemetery property that can accommodate multiple generations, but choosing a cemetery is only part of the funeral equation. “A lot of people get lulled into the thinking ‘I already have something, I don’t need to preplan,’” Briede says. “Well, they may not need to talk about the cemetery end of things, but the services or the aspect of what they want to do when the death occurs, that still needs to be done.” Briede has watched the number of preplanning clients grow tremendously during his 38 years in the funeral business, drawing nearly even with the non-planners. Currently the median age of funeral preplanning at Lake Lawn is 78, but Briede recommends people begin planning during their 50s or 60s. “In the 50s and 60s, people are talking about it a whole lot more because we’re going to more and more funerals,” he says. Photos Thinkstock
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Emotional and Physical Toll Facing one’s own mortality is a tough realization to grasp, and the aging process can be an emotional time, not only for one’s self, but for loved ones. Fear, anger, frustration and confusion can all come together to create a combustible force of emotions during these stressful times, and that is why preplanning is vital. “If they have a current experience of providing care for an aging family member and that’s required a considerable amount of time or even some of their own resources, that itself can be an emotional impact, but it’s a trigger that causes people to think about their own planning,” Legrand explains. Even the physical toll of aging can have an emotional impact on a family. Dr. Daniel Bode, audiologist at Associate Hearing, says hearing loss can lead to anger, frustration and fighting between family members. “We know that hearing loss negatively impacts a spouse to the point they can have emotional anxiety and even heart issues,” Bode says. According to Bode, hearing loss is often a precursor to other ailments in aging. “Hearing loss does not stand alone,” Bode says. “The first signs of difficulty are with the hearing, so if you’re having hearing difficulties there may be other medical concerns that are concurrent with something you may have inherited by genetics or been exposed to with noises.” As hearing deteriorates to the point of affecting a patient’s balance, Bode says he can be forced to wade into the uncomfortable waters of discussing a patient’s limitations of living on their own. To help spark conversations about assisted living between parents and children, Bode walks the patient through a few exercises. “I’ll have them stand up, close their eyes and just put their arms out, and you can see their propensity to the right or left,” he explains. “You can see the imbalance being created. Usually it’s an indication of the hearing loss being stronger on one side versus another.” The exercise results are a starting point, as patients and their families begin to truthfully assess what actions to take moving forward. “I give them concrete evidence as to what the future might be,” Bode says. 64
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Variables to consider while planning for aging: Will you be caring for children, grandchildren or even your own aging parents?
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Give a Gift Lake Lawn Metairie lists many compelling reason to preplan your funeral arrangements, including eliminating the guesswork for your family, avoiding emotional overspending and personalizing your service. For Richard Briede, the decision to preplan his funeral was based in love. “For myself, it was giving my children a gift so they don’t have to do that,” Briede says. Michel Legrand helped his parents setup a plan for their longterm care. “[My father] realized this was a smart thing to do, and if they hadn’t done that, the burden of providing care for one of both of them would have fallen on their children. At the end of the day, he said, ‘I really don’t want to have that happen.’” Peace of mind can be the most loving and thoughtful gift a person can leave behind for a child or spouse, and putting a plan in place is the first step toward securing that peace for your family. “It really helps the children if you do have a plan, and then to honor what your parents’ plan is,” Gonzales says. “It puts a lot of burden on the children to have to say, ‘I hope that’s what my dad would’ve wanted.’” n
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Perspectives | Law
An Uncertain Future Anywhere from 50 to 75 percent of law firms have no formal succession planning process in place. By Pamela Marquis
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t is an unwavering certainty: Time moves on. Though it is hard to conceive, one day Drew Brees will be on the sidelines and his successor will be taking the snaps as he begins to try and break Brees’ sterling records. It’s life, the way of the world. No matter how brilliant the leader, he/she will inexorably fade into the 66
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background as the young inevitably take their seats in their leather executive chairs in the corner office. While this is certainly not a problem unique to law firms, depending on which report you read, anywhere from 50 to 75 percent of law firms have no formal succession-planning process in place. Photo Thinkstock
According to legal industry consultant Altman Weil, in his report Law Firms in Transition, in 2015 nearly two-thirds of the biggest law firms had partners age 60 and older who controlled at least one-quarter of the firm’s revenue. Weil’s research found that only 31 percent of such firms had a formal succession-planning process. Many experts believe that if law firms fail to implement succession strategies now they may well find themselves with a leadership gap in just a few years’ time. Law firms today are made up of lawyers with almost 50 years of generational differences working together under one roof. As such, moving a firm from the first to the second generation, or even third generation of leadership can prove to be a difficult task. But some local firms are moving forward with their strategies. Those such as Bruno and Bruno, a family firm that began in 1950, know the importance of carrying on their traditions of excellence. Managing partner Joseph M. Bruno says his strategy grew out of his own aging process and the passing of his father, Frank Bruno, two years ago. “While, the end is not near, I hope, the loss of my father has put into perspective its reality,” says Bruno. “So in my desire or hope to keep what our family has built, I am motivated do what I can to keep it going.” When Bruno was a first-year law student, his father approached him with a proposal . “He told me that if I refused, he would never make a similar offer,” Bruno says. “I would never work for him. The proposal was that I would be his partner, but as each of my five brothers graduated law school, if they did, each would become a partner with the goal that we would all be equal partners, at which time my father would
In 2015, nearly two-thirds of the biggest law firms had partners age 60 and older who controlled at least one-quarter of the firm’s revenue. withdraw. Four of my five brothers became lawyers and all joined the firm. It was a very tough experience for me, but in time all of my brothers/partners became excellent lawyers. I cannot recommend this method, and in the case of my son, we did not use it. Rather he had to earn his partnership.” He believes one of the most important things to have in place in a successful succession is having the right people to train. The firm looks for associates who can move into positions of power, making sure they fill the firm’s needs. “First, I try to identify what skills the associates have or don’t have,” he says. “I try to steer them into the direction which best ref lects their talent. In the law business, there are three — and this, of course, is an overgeneralization — distinct talents necessary to sustain a law firm in these extraordinarily competitive times,” Bruno says. “First, you need a rainmaker or marketer. Second, you need an administrator, and finally — and this is just me — you need a litigator, or if transactions are the mainstay, a person with the temperament to handle detail. I say ‘just me’ because a millennial may see the litigator as a dinosaur.”
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Steve Lane, managing partner with Herman Herman & Katz, a three-generation firm founded in 1942, agrees that having the right people is key to a smooth succession and that his firm primarily hires from within. “We rarely hire from other firms,” he says. “Almost all of our new hires are our former law clerks,” he says. “We have worked with them for a year or more, so when we hire them we have a good handle on the candidate’s strengths and weaknesses.” Establishing a mentoring system is another way to ensure the associates selected will have a smooth transition. “Having had the best mentor, I cannot say enough about the fact that anyone who wants to be the best should have a mentor,” says Bruno. “You cannot find all of the skills you need in a book, you have to experience them. Trading on someone else’s experience is therefore invaluable.” At Kean Miller, one of the largest full-service law firms in Louisiana, and the largest in the capital region, Steve Boutwell, director of client services, also believes mentoring is key. “Our mentoring system pairs a partner with an associate to oversee individual cases and clients,” he says. “Each case is different, but we like to have associates shadow a partner for a year so they get hands-on experience. We pair them up with a partner who is handling things they are interested in doing.” Mentoring works exceedingly well for many law firms, making sure clients have a seamless transition of services. “Preparing for the future is very important to our clients who want continuous service,” says Boutwell. “They want the next lawyer to have the same level of leadership as the first. We talk to the clients often and regularly to make sure the succession is successful, because we want to continue to build relationships. 68
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Relationships are very important at our firm.” “We have had so many clients who appreciate, whether we won or lost, how the whole team fought for them,” says Lane. “They’ve appreciated the successful transition and have thanked us for doing a good job. This law firm has more than 100 years of experience, and there isn’t a situation we haven’t seen.” Another strategy used by law firms is to offer ongoing training and involving associates into the inside workings of the firm. This strategy provides ongoing leadership training to appropriate personnel. “We also mentor through our monthly meetings with all associates,” says Boutwell. “One or more partners will go through all of our current cases. They will also choose a legal topic, such as how to prepare for a deposition, how to manage an appeal or how to do the initial interview and then open it up for discussion. We also find it important to have associates serve on committees such as technology, marketing or facility. That way they continue to learn about the in and outs of the firm on all levels.”
Habits By Generation With generational gaps that can extend to over 50 years, there are natural issues. Along with the diversity of these generations comes diversity in value systems, motivators and reward mechanisms. Thus, a one-size-fits-all approach to these topics may not necessarily work as well as in the past. In a 2008 report from the University of Minnesota entitled “Generational Differences in the Workplace,” Anick Tolbize described the generations, noting that Baby Boomers, born between 1943 and 1965, “started the workaholic trend,” and believe in “paying their dues and step-by-step promotion.” They value
teamwork, the chain of command, and can be technologically challenged. The Generation X employee, born between 1968 and 1979, on the other hand, is more comfortable with technology, and are more independent and self-reliant — valuing freedom and versatility in their careers. The ability to balance career and family life is often included in their definition of success.
“Preparing for the future is very important to our clients who want continuous service. They want the next lawyer to have the same level of leadership as the first.” - Steve Boutwell director of client services, Kean miller The Generation Y employee — also known as a millenial — born after 1981, is techno-savvy, born with an iPhone in one hand and an iPad in the other. They expect nothing less than a high level of diversity within the firm’s work force as measured by race, gender, ethnicity, sexual orientation, disability and religious beliefs. They value training and seek f lexibility with their work. “In a profession where nearly one-third of new associate hires leave their first law firm within three years, management can only benefit by understanding the impact of generational differences,” says Tolbize. “Firms must be innovative and unafraid to try new and bold approaches to managing the generations.” The report goes on to state that organizations that acknowledge the experience of older workers and respect the talents and contribution of new workers may experience higher retention rates. Employers who accommodate their employees’ desire to balance work and personal goals may also have higher retention rates. Suggestions to achieve this goal include providing better cafeteria benefits, f lexible work schedules, quality-of-life programs, on-site day care and even elder care. Bruno understands the differences in the generation but also believes it remains important to reward the old-fashioned way. “I try to teach them the connection between work and a dollar,” says Bruno. “Most assume that the firm grows money, and if they show up they get a piece. I try to get them to understand overhead and the connection between their work, overhead, and what they are able to take home. The associates earn a fee on all cases they refer to the firm in addition to their salary. The referral has to be the result of their own effort.” The good news is that firms can navigate the leadership transition and change-management processes if they have focused intent. Experts believe to ensure success, law firms need to keep the topic high on their agenda. Even though a founding partner may understand the importance of developing a succession plan, it still may be hard to let go of the power over a firm he or she built from the ground up. “The issue is not relinquishing control per se,” says Bruno. “ It is knowing that the baby is in good hands. The person who has difficulty relinquishing control never should have had it in the first place.” n BizNewOrleans.com JULY 2016
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Perspectives | Banking & Finance
Credit Unions are Cashing In $2.1 billion — that’s the combined assets of credit unions in Greater New Orleans. With loan growth at an all-time high and extensive effort being focused on millennials, the future is looking bright. By Suzanne Ferrara
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t’s considered a “democratic” way of banking. Conceptually, it’s been around since the mid-1800s, when farmers pooled their money to help each other during economic hardship, but to say credit unions have come a long way since then is an understatement.
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Credit unions today have more than 100 million members nationwide, with 351,000 New Orleans-area members, whose assets total $2.1 billion. Kristie Daspit, chief operating officer with Campus Federal Credit Union, is not surprised by the numbers. “We have great members who see the value in credit unions and remain loyal,” she says.
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“Since the consumer has a say in how their credit union is run, they transition from the customer mindset to an owner mindset. This in itself builds loyalty, and loyalty dictates where consumers do business.” - Mia Perez, chief administrative officer, Louisiana Federal Credit Union These members, or “owners” who save and lend with each other, have a voice (one member, one vote) in decisions made in a unique not-for-profit financial cooperative. “Since the consumer has a say in how their credit union is run, they transition from the customer mindset to an owner mindset,” says Mia Perez, the chief administrative officer for Louisiana Federal Credit Union. “This in itself builds loyalty, and loyalty dictates where consumers do business.” According to local and national credit union representatives, since there are no external stakeholders, coffers are returned in the form of both better rates and cheaper fees. “When it comes to rates, credit unions consistently charge less, often saving the consumer hundreds of dollars each month on a loan payment,” says Perez. Ashley Gambino, marketing manager for Jefferson Financial Credit Union, weighs in on the benefits. “Credit union accounts tend to have fewer strings attached. Our products have minimal requirements and fewer fees.” In fact, credit unions have been enjoying an all-time high in loan growth as consumers loosen the purse strings postrecession. “We are seeing record loan requests for automobiles and firsttime home buyers,” says Perez. According to the Credit Union National Association’s (CUNA) year-end Economic and Statistics results, credit union loans increased by 10.5 percent in 2015 the biggest jump in 10 years. “We are now seeing an increase in loans as a result of positive growth in jobs and incomes, along with the need to replace items purchased prior to the recession,” explains Gambino. Cooperative representatives say their personalized service is also behind this increase. “Our core mission is ‘people helping people,’ and this remains constant,” adds Daspit. That loan growth is expected to continue next year. The National Credit Union Administration (NCUA), which regulates and supervises credit unions, unanimously approved a change in the rules affecting member business loans (MBLs), including lifting the personal guarantee requirement under certain circumstances. Beginning January 1, 2017, this new rule will make it easier for credit unions to sell business loans to other credit unions, which in turn will expand their lending capabilities beyond the legal cap dictated by the legislature.
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“It will help credit unions manage more effectively to the cap,” says Ryan Donovan, CUNA’s chief advocacy officer. While enjoying all these successes, credit union leaders and their advocacy groups have been lobbying hard on Capitol Hill to maintain a crucial part of its identity. CUNA, the National Association of Federal Credit Unions (NAFCU) and other groups are fighting a myriad of issues including what watchdog leaders call a “choke-hold” from mounting regulatory burdens.
“We didn’t contribute to the financial crisis, yet we are forced to comply with the same banking rules as megabanks.” - Ryan Donovan, CUNA’s chief advocacy officer Cooperatives, like small banks, are having a tough time keeping up with the constant changes of federal regulations stemming from the Dodd-Frank Act. “We didn’t contribute to the financial crisis, yet we are forced to comply with the same banking rules as megabanks,” says Donovan. CUNA and NAFCU are also pushing for relief legislation to lift the dated 1998 business lending cap from 12.25 percent to 27.5 percent of total assets. At the same time, the groups are fighting to preserve credit unions’ federal corporate income-tax exemption status. Credit union advocates are hoping for the passage of new legislation that would spread cyber security responsibilities to merchants as well. “We want Congress to hold merchants that accept payment cards to the same security standards as the credit unions and the banks that issue the cards,” explains Donovan. Adding to that momentum to ward off security threats, Armand 72
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Parvazi, the marketing manager for Xplore Federal Credit Union, says cooperatives are ever-vigilant when it comes to protecting members. “We take a proactive approach and try to catch fraud before it becomes a larger problem. We have services in place to detect suspicious transactions on accounts and alert members and our credit union.” At the same time, credit union market strategists are trying to build their membership and target a larger audience, particularly millennials, the nation’s largest consumer. But therein lies a major challenge: According to research from the nation’s leading credit union service organization, Public Service Credit Union, 71 percent of millennials say they don’t know what a credit union is. But even with this challenge, credit union strategists are looking at millennials as an opportunity. “One of the most prominent characteristics of this demographic is the desire to align oneself with organizations and businesses that are purpose-driven,” says Perez. “Nearly 2 million millennials became members of credit unions between 2013 and 2014, a 2 percent increase, according to the Credit Union National Association.” And those numbers are expected to increase as more funding is put behind digital advertising instead of traditional marketing. “Young adults aren’t reading papers, newsletters or using the traditional channels credit unions have used in the past to disseminate information,” says Gambino, who believes evolving with technology isn’t only smart, it’s crucial for effective generational marketing. “The ability to deliver marketing messages, interact with members, and facilitate information sharing about your credit union 24/7 at the member’s convenience is becoming standard,” he adds. Promoting brand awareness and educating consumers about how committed cooperatives are to helping members is imperative for continued success. “They know what a financial institution does; the important part is letting them know that we are ready to help them in whatever way we can,” says Parvazi about millennial customers. Photo Thinkstock
Daspit mirrors that sentiment. “We adjust our message and content, making it relevant to a given channel while integrating our brand,” she says. And what tools will come into play? “Our marketing strategy now includes online, behavioral-targeted email and social media marketing,” explains Daspit. Over the past decade, meanwhile, credit union marketing strategists have made huge strides in keeping up with the times, and specifically keeping up with the pace of digital banking. From mobile apps to mobile-friendly websites , cooperatives are offering more to meet the demands of today’s tech-savvy consumers. “We’ve transitioned from ‘visit a branch’ to open an account to being able to open that account online, and even closing loans without ever stepping foot in a branch,” says Perez.
“Attracting and retaining members, engaging with them, and creating relationships — not just as account holders and as a financial institution — is paramount,” - Ashley Gambino, marketing manager, Jefferson Financial Credit Union
Daspit describes how Campus Federal Credit Union has implemented technology such as its ‘Campus Connect Teller Machines.’ “This allows members to complete transactions with the assistance of a teller via video conferencing.” And she says that concept extends to the simple act of putting money into your account. “We have also implemented ‘Campus Click,’ which is our mobile deposit feature, allowing members to deposit checks from anywhere via a mobile device.” In addition to online and mobile banking, Xplore’s Parvazi explains how members can walk into almost any credit union branch nationwide to do their banking through the CO-OP Shared Branch Network. “The network gives us access to over 5,000 branches across 50 states, making sure you are never too far from your account,” says Parvazi. So what does the future hold for the ‘people helping people’ financial institutions? According to CUNA’s Economic and Statistic projections, in 2016 credit union memberships will continue to increase by 3 percent and loan balances by 10 percent. In order to maintain that momentum, Gambino believes credit unions must continue to add value for its members. “Attracting and retaining members, engaging with them and creating relationships — not just as account holders and as a financial institution — is paramount,” says Gambino. Parvazi says the credit union movement will prevail. “Looking over the past 20 years, how much we’ve grown, how many members we’ve helped save money and get on the right path, it keeps me excited to see the future of our industry,” he adds. Part of that future success means preserving the credit unions’ unique identity and philosophy for generations to come. “Our core principles of people helping people and personal, friendly service will not go away,” says Daspit. Perez agrees. “If we keep telling our story and adding value to the consumers we serve, we will be poised for success today and in the future.” n BizNewOrleans.com JULY 2016
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Guest Viewpoint
Overtime Regulation Change As of December 1, salaried workers making under $47,476 will have to be paid for overtime. How will this effect local business?
O Brooke Duncan III
Kate Brownlee is
is a partner at Adams and Reese LLP and member of the firm’s Labor and Employment Practice Team. Duncan joined the firm in 1992 and was instrumental in helping build the firm’s well-established Labor and Employment practice.
an associate at Adams and Reese LLP and member of the firm’s Labor and Employment Practice Team. Brownlee joined the firm in 2013 after receiving her J.D. from Loyola University New Orleans College of Law.
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n May 23, 2016, the U.S. Department of Labor (DOL) formally issued the muchanticipated changes to the Fair Labor Standards Act’s overtime regulations and, in particular, the updated white collar exemption’s salary level test. The new rules take effect on December 1, 2016. Slightly lower than the department’s original proposal, the salary threshold was still doubled for executive, administrative, and professional exemptions — moving from $23,660 to $47,476 a year, or from $455 to $913 a week. As expected, the existing duties test for the executive, administrative, and professional exemptions remains unchanged. The new salary threshold is based
on the 40th percentile of full-time salaried workers in the lowest income region in the country (currently, the South). To ensure the salary threshold is maintained at this 40th percentile, the new rule mandates an update to the salary threshold every three years. The threshold may rise to more than $51,000 with the first update on January 1, 2020. The new rules also raise the salary threshold for the highly compensated employee exemption from $100,000 to $134,004. In the face of this daunting new rule, there is one employer-friendly change — the salary basis test was amended to allow employers, for the first time, to use nondiscretionary bonuses and incentive payments (including Photo Thinkstock
commissions) to satisfy up to 10 percent of the new salary threshold. To credit nondiscretionary bonuses and incentive payments, the new rule requires the payments be paid on a quarterly or more frequent basis. In other words, each pay period an employer must pay the exempt employee on a salary basis at least 90 percent of the requisite salary threshold. Do note, however, that the use of nondiscretionary bonuses and/or incentive payments cannot make up the requisite salary threshold for highly compensated employees. The DOL estimates the new rules will affect 4.2 million workers nationwide. This includes more than 370,000 workers in Texas, 330,000 workers in Florida, 100,000 workers in Tennessee, 66,000 workers in South Carolina, 60,000 workers in both Louisiana and Alabama, and 39,000 workers in Mississippi. Likewise, the new rules will affect employers across a substantial number of industries. Many nonprofit organizations are expressing concern. During the comment period after the DOL’s proposed rules, many nonprofit organizations expressed concern that “they are constrained in their ability to increase salaries for their staff because funders evaluate them based on their ability to keep overhead, including salary costs, low, or because the terms of their grants may strictly limit how much of the grant can be allocated for overhead.” For those reasons, nonprofit organizations requested the DOL implement special relief from the new rules. But the DOL did not. The DOL noted that the white collar exemption has never had special rules for nonprofit organizations and relied on a study from the National Compensation Survey that showed the average hourly wage of fulltime management employees in the not-for-profit sector exceeds the new rule’s required salary level. However, approximately 39 percent of the affected employees work more than 40 hours per week. More than that, many nonprofit organizations operate with budget years ending on June 30; thus, these organizations must immediately consider the increased salary level and develop new budgets for the next fiscal year. According to the DOL, America is getting a raise. In reality, many businesses may not be able to afford the costly impact. For example, the National Retail Federation estimates that the new rules will cost retail and restaurant businesses $745 million. Thus, businesses will be forced to eliminate manager/assistant manager positions, scrupulously monitor overtime, switch to part-time labor, and/or increase the price of goods to help absorb the added costs. For those businesses that cannot afford to pay these (now) non-exempt employees overtime pay and/or raise employees’ salaries to maintain the exemption, they should consider reorganizing workloads, adjusting employees’ schedules and/or spreading work hours among employees. With the new rules effective December 1, employers now have approximately six months to prepare and avoid misclassifications of these employees.
The White Collar Exemption Unchanged under the new rules, Section 13(a)(1) of the FLSA provides the “white collar exemption” that exempts from these minimum wage and overtime pay requirements “any employee employed in a bona fide executive, administrative, or professional capacity.” An employer may utilize the white collar exemption if the employee meets the salary basis test, salary level test and duties test: Salary Basis Test: The employee is paid a predetermined and fixed salary that is not subject to reduction.
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Salary Level Test: The employee’s salary meets the minimum specified amount.
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Duties Test: The employee’s job duties primarily involve executive, administrative or professional duties.
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We recommend employers:
What Industries Will Be Hardest Hit?
Conduct an internal audit with the assistance of qualified counsel of all the positions within your organization and identify all current employees classified as exempt with an annual salary below $47,476. n Develop the proper strategy for (A) presenting a tailored message to all employees (whether affected or unaffected), (B) managing employees’ conversions to nonexempt status and/or continued exempt status, and (C) implementing comprehensive policies regarding nonexempt employees’ hours. These strategies are crucial to avoid potential litigation later. n
The Economic Policy Institute reported that the industries facing the biggest impact – in terms of the greatest share of salaried workers in the industry who will be affected by the new rules – include the following:
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Agriculture, Forestry, Fishing, and Hunting (39.7 percent)
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Leisure and Hospitality (37.3 percent)
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Construction (32.6 percent) and
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Public Administration (32.5 percent)
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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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L U X U R Y
R E A L
E S T A T E
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Great Offices
Preserving the Past
By melanie warner Spencer Photography by Cheryl Gerber
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The Historic New Orleans Collection offices inspire staff to connect and protect.
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The expansive Destrahan Boardroom is the showpiece of The Historic New Orleans Collection’s executive office space and features a grand chandelier and wide plank pine floors. The French doors can be closed off by green shutters or opened up to welcome views of the French Quarter.
n the light-filled French Quarter executive offices of The Historic New Orleans Collection on Chartres Street, deputy director Daniel Hammer notes his view of Conti Street and the historic plaque in front of the nearby courthouse. Hammer admits that before moving into space in 2012, he questioned the usefulness of such plaques. “I can’t tell you how many people stop to read that thing,” says Hammer. “Sometimes they are holding a Hand Grenade. Even those here to have a good time are interested in the history. It has informed my outlook on our future.” In fact, it seems everything in the wellappointed suite of offices and meeting rooms — located in the three-story Perrilliat House — is designed to inform the outlook of the staff at THNOC. Surrounded by furnishings and artwork from the museum, which was founded in 1966 by Gen. L. Kemper Williams and Lelia Hardie Moore Williams, the offices serve as both a practical space to conduct dayto-day business and an extension of the galleries used to display the collection. The museum’s vast holdings — more than 1 million items — comprise objects depicting the history, culture and evolution of New Orleans, the Gulf South and Louisiana. In addition to the organization’s galleries, the William Research Center is also open to both scholars and the public, in keeping with its mission to share the region’s history with the masses. “I love to have people come and meet here, because it’s beautiful,” says THNOC Executive Director Priscilla Lawrence. “[Chairwoman] Mary Louise Christovich has been on the board for close to 40 years. She set the standard for the spaces being as beautiful as we can make them. Not just the offices, but also the galleries, reading room and courtyards. She taught us to pay attention to the aesthetics.”
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The property, built by François Marie Perrilliat in 1825, is made up of four connected row houses, a courtyard and additional buildings in the back. Koch & Wilson renovated the building, bringing it back to its original grandeur, featuring “Paris green” shutters, wide-plank pine floors and the arched bays in the front exterior. The designers also outfitted the space with shelving and cabinetry to serve the needs of its users, while at the same time staying true to the building’s architecture and residential feel. “Historic spaces make one feel connected to all of those who’ve been there before, and the progression of the use of space is always a fascinating story,” says Lawrence. “I believe this was a warehouse and shops downstairs and a house upstairs in the early 20th century. Then it was an apartment upstairs and a restaurant and shops downstairs. Now, it is offices and meeting spaces and galleries.” Light floods the expansive rooms, which feature transom-topped French doors leading to balconies overlooking Conti and Chartres streets. A grand chandelier hangs in the Destrehan Boardroom, which can be closed off by green shutters, or opened to allow a view of the French Quarter. “So much of our mission is about being here in the French Quarter,” says Hammer. “When we are having a meeting and a second-line goes by, we chuckle and go on about our business. When a truck goes by and is too big but somehow got in, and the building shakes, that’s not so amusing. “The French Quarter is endangered. It reminds me how important it is to promote programs that allow people to enjoy the French Quarter for years to come. Furtherance of the mission of our founders and bringing people to the French Quarter to learn about our history and culture is central to all we do.” n 80
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The property housing the executive offices of The Historic New Orleans Collection was built by François Marie Perrilliat in 1825. It is made up of four connected row houses, with a courtyard and additional buildings in the back.
AT A GLANCE Company Name: The Historic New Orleans Collection Address: 400 Chartres Street Office completed: June 2012 (The original structure dates to 1825) Architect: Koch and Wilson Architects Interior Designer: In-house Furnishings: From The Historic New Orleans Collection’s holdings Square footage: Approximately 1,750 square feet Main goal: An expansion of THNOC’s Williams Research Center, this space provides designated meeting space plus additional room for the institution’s growing staff and collection. Biggest Challenge: Meeting the needs of a modern office environment in a 19th-century building Standout Feature: Striking spiral staircase and vast Destrehan Board Room with views of the French Quarter.
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1- Deputy Director Daniel Hammer’s office has a view of Conti Street and the nearby courthouse. French doors with leaded glass and transom windows lead out to the balcony. 2- The offices are furnished with artwork and pieces from the museum’s collection, which is made up of more than 1 million items. 3- Located on Chartres Street, the building underwent a complete renovation in 2012 by Koch and Wilson Architects. 4- Executive Director Pricilla Lawrence’s office is outfitted with custom, built-in cabinets and shelves. “Historic spaces make one feel connected to all of those who’ve been there before, and the progression of the use of space is always a fascinating story,” she says. BizNewOrleans.com JULY 2016
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Q&A
“Once we get in there and start working, that’s when they realize that these girls got it going on.”
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Pink Power New Orleans’ only female-run commercial moving company is racking up the accolades, in part because of their focus on sustainable practices. By Sergy Odiduro Photography by Cheryl Gerber
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team of big burly men is what most people have in mind when it comes to seeking help for an office move. Such is not the case with Bart’s Office Moving, a female-run commercial moving company. At Bart’s helm sits four close-knit sisters who, along with their mother, have developed a reputation in their industry not only for performance and customer service, but sustainability and giving back to their community. It’s been a big year already for the 38-year-old company, headquartered at 2540 Industry Street in New Orleans. Bart’s took home this year’s LifeCity Green Games People’s Choice Award, the Emerging Leadership Award for Building and Energy Services and was named Small Business of the Week by the U.S. Senate Committee on Small Business and Entrepreneurship. First-born daughter to founder Bart Thibodeaux, CEO Courtney Davis-Herbert joined the family business six years ago and has since successfully overseen Bart’s expansion from five to 30 employees while increasing service throughout South Louisiana.
CEO Courtney Davis-Herbert joined the family business (co-owned by her mother andww three sisters) six years ago and has since overseen Bart’s expansion from five to 30 employees while increasing sales in South Louisiana. BizNewOrleans.com JULY 2016
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Biz New Orleans: What led you on the path to sustainability?
Courtney Davis-Herbert: It’s one thing having an appreciation for environmentalism and another to actually implement it as a business practice. Sustainability is not always easy and it’s not always as cost effective, so for you to truly stay on that path it has to be something you feel passionate about. When we were younger, our father drilled it into us — this is our only world. The one world that we have to live in. If he saw a bottle or anything that he knew he could recycle he would take it and make sure that it ended up in its proper place. For us to get spending money we would have to go outside and crush cans. It was just a way for him to show us that it took hard work to really get whatever it is that you want in life, but also it takes hard work to make sure that you’re doing what’s right for your community. Biz: What advice would you give to companies that may want to pursue a more sustainable route, but are on the fence due to lack of information or concerns about cost?
CD: Along the lines of it being maybe not cost effective, there is still a cost and that cost is the future. So you have to look at the bigger picture and not just the quarters and dimes that you might be spending. I strongly recommend reaching out to companies like LifeCity. They’ll do an assessment and see ways that they can help you with saving money while still being green. They’ll also figure out ways that maybe it doesn’t cost you anything at all. 84
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Some of the Bart’s Team: Logistics Coordinator Ashley Renard, Project Manager Adam Gorman, COO Ashley Herbert, CEO Courtney DavisHerbert, CAO Kasie Thibodeaux and Bookkeeper Judy Messina
Biz: There are several charities that you can donate to when you are pursuing a sustainable route. Why did you choose schools and Habitat for Humanity?
CD: We chose schools that my daughter and my [nieces] go to. When we were younger, my father always donated to the schools that we attended. It was quick and easy. That’s not to say that if a school reached out to us and said, “Hey look these are what our needs are,” we wouldn’t definitely make a huge effort to try to figure out how we can help them. Habitat for Humanity happened to be just around the corner from us. One day Ashley [Herbert] realized that they were there and we gave them a call. We had a truck load of furniture we were trying to get rid of. We didn’t want it to end up in a landfill. Before then, we would try a resale but then it got to the point that our warehouse, because our business has grown so much, did not have the storage capability that we had in the past. We were also breaking down furniture and just recycling. But then we felt guilty because this is furniture that maybe isn’t right for the customer who had it previously, but it didn’t mean that there wasn’t someone else out there who couldn’t put it to good use. When the guys come back with a truck load of furniture they
know now that their first stop is Habitat for Humanity. Not only are we keeping it out of landfill but now we’re helping to build homes for people in need.
Not just a moving company, Bart’s Office Moving also provides installation, furniture repair and inventory control and management.
Biz: What led to your company’s expansion, particularly since some companies don’t survive one?
three sisters — with the same mindset. And I hate to ever put out there the differences between men and women, but what I will say is that sometimes our egos aren’t as large and we know that in order for us to be successful we have to put egos aside when we come through the door, which is probably hardest for me because I’m the oldest and I’ve been bossing them around, or at least trying to, for a very long time.
CD: The driving force behind it was we looked at our community and ways to help. It’s not just about sustainability; It’s also about people in that community and feeding their families. Growth is extremely painful and as much as business owners want it, when it finally happens, there is a point in time when you’re like, “What did I just get myself into?” The great thing is the fact that we are a family business and so I had at least three other people that I can turn to to keep ourselves as sane as possible. Biz: How does it feel to work with such close family members? Would you advise others to do the same?
CD: It truly depends. We’re a close knit family. When we were younger our parents always told us that we always have to look out for each other. That’s not to say that we didn’t have our arguments. But I will say that I feel like growing up in that manner knowing that at the end of the day we were there for each other has really helped us in our business lives. I believe that being a family owned business makes us stronger. We have five owners — me, my mother and my 86
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Biz: What unique challenges have you encountered as a femalerun company in a male dominated industry?
The biggest is when we’re out on a job and the customer is trying to “help” us. They’re trying to put their hands on the furniture. They think that, “Oh I have to help this woman who is trying to move these items.” Our youngest sister especially, who is 25, Alexie, basically tells the customer please step out of a way. I know what I am doing here and you’re kind of getting in the middle of things. Another, is that sometimes customers feel that because we are woman owned that maybe we’re not as capable. But once we get in there and start working, that’s when they realize that these girls got it going on. And if there is an item that is a little bit too heavy or cumbersome we have other crew there to help. And even the crew will tell you that they are impressed with Alexie, who will
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grab a piece of furniture and she gets it out the door. She doesn’t even think twice. She makes it happen.
After 37 years in business, Bart’s has a long list of distinguished clientelle, including Entergy, East Jefferson General Hospital and GNO Inc.
Biz: Was it a smooth transition back to the company after college?
CD: I didn’t come back after college. I took the long way. [My father] started the company in August 1978, which was the month that I was born. At that point, he kept on trying for a boy. He just thought that he was going to have a boy and he would take over. [My father] kept on trying and they kept having girls. Through all of that, my father developed a chronic liver disease and so we knew at some point he was going to have a transplant. Growing up he always showed us the ropes, how the company was run. He didn’t treat us like little princesses. I cut the grass. Every single weekend I was out there with a little push lawn mower. We played every single sport imaginable. He made us understand that we were capable of so much more than maybe what we were told outside of our homes. He had his first liver transplant about 16 years ago. At that time I had just started my career with Planet Beach and I ended up being one of their youngest franchisees. I was also a general manager for Raising Cane’s. So those opportunities gave me a real view of how corporations are run. At that time, Ashley was instrumental in making sure that we actually had a business. When he was in the hospital she was out running jobs. She made sure that operations stayed sound while my mother was running the office. My mother ended up having to get a job with the government because their health insurance got too high, so my sister Kasie took over while Ashley was out in the 88
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field. So about six years ago is when I finally came [to Bart’s]. They had seen what I had done for other companies, and they had been asking for me to provide that sort of service for them. But I really didn’t understand what my role would be. I knew that Ashley was handling everything and she was doing it very well. After many late-night conversations with Ashley, I finally agreed to come on board. What I was able to bring to the table, which is something you don’t normally see in a family-run business, is that we run like a corporate office. We don’t run like a mom-and-pop. But on the other end, if you ask my employees they feel like it’s a family business. If they have a problem we have a problem. So if I can help them in any way shape or form, help them manage outside issues, I am more than happy to do that. So it’s the best of both worlds where everything is run like a well-oiled machine and has that family feel for our employees’ sake. Biz: With the success of your company, do you think your father still wants a boy?
CD: My father is definitely very grateful that he has four girls, and that every single one of us has now come into the family business and that we are doing everything that we need to do to make sure that the business stays successful. This company is his namesake. He really gave us an amazing opportunity for our life by starting this company and we’re grateful. n
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Why Didn’t I Think of That? Creative Businesses Taking Hold in Southeast Louisiana
“Mobile power is the No. 1 consumer demand. If you think about it, not that long ago our phones were just phones. But now, with all the apps and features, they literally run every aspect of our lives.” - Sean Carrigan, CEO of MobileQubes
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Cut the Cord
No need to carry around an emergency phone cord when there’s a MobileQubes nearby. By Kim Singletary Photography by Cheryl Gerber
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ean Carrigan was waiting in a bar one night for his friends when he noticed his phone was dying. “I asked if I could charge my phone behind the bar, but the bartender said no,” he says. “So I was stuck. I just sat there thinking, ‘I bet there’s gotta be like five or six other people in here who’ve asked to do the same thing, and they’re sitting here stuck like me.’” That is when inspiration struck for the experienced entrepreneur. “All I wanted was something where I could pay a couple of bucks, charge my phone quickly and be on my way,” he says. “So I came up with a business model and found the smartest guy I knew, Jason Palmer, an engineer by trade, and together we founded MobileQubes.”
CEO Sean Carrigan (foreground) and CTO Jason Palmer stand inside the BioInnovation Center in New Orleans, the current headquarters of MobileQubes. BizNewOrleans.com JULY 2016
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MobileQubes are small, cordless battery packs that are dispensed from automated, self-service kiosks, much like Redbox DVDs. For $4.99 for a day and 99 cents for every additional day, a user can rent a battery, plug it right into their phone, and charge it on the go. If a user keeps the battery more than seven days, they are automatically charged the purchase fee of $39.99. “When we looked at what was currently out there as far as options for mobile charging, there were really only a couple of things — charging polls that would lock your phone away while it charged, or cradles that would sit on a bar and charge your phone, but again, you were stuck to that spot,” he says. Currently headquartered at the BioInnovation center on Canal Street, MobileQubes, on the other hand, enables customers to charge not only their phones, but any item with a USB port — including tablets and iPads — and be on their way. “You can return the pack at any kiosk in the U.S., where it is then recharged and put right back into inventory,” he says. Like Redbox, however, the concept depends on a prevalence of locations. There are currently 110 kiosks nationwide, but Carrigan plans to have up to 500 locations by the end of this year. “We launched our pilot in 2014 with 12 units, partnering with key locations like the New Orleans airport, Hyatt Regency, Harrah’s Casino, Ochsner, Walk-On’s, the Superdome and Smoothie King Center,” he says. “We needed to see how the technology worked in the real world.” Getting the companies to agree to host a kiosk, he says, wasn’t difficult. “For big venues, mobile power is the No. 1 consumer demand,” he says. “If you think about it, not that long ago our phones were just 92
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MobileQubes’ small cordless battery packs — dispensed from automated kiosks — can be used to charge any device with a USB port, including cell phones, tablets and iPads.
phones. But now, with all the apps and features, they literally run every aspect of our lives. We don’t know what to do without them. And to do this, they pull more and more power every day.” Carrigan says MobileQubes offers vendors the chance to provide this most valuable service to their clientele at no cost to them. “Plus, they do get back a portion of every transaction,” he says. The freestanding kiosks are maintained and constantly monitored by MobileQubes, feature the ability for custom branding and require nothing more than a standard 110 outlet. MobileQubes’ testing phase lasted about six to eight months. “We tracked things like user adoption and got feedback,” Carrigan says, “the result of which were some minor tweaks to the hardware and software.” The company’s national rollout began in September 2015. “Since we had already established some great relationships with national companies, it was easy to expand,” he says. In addition to multiple Hyatts, and properties managed by SMG and Caesar’s Entertainment, MobileQubes also scored a national contract with Amtrak last fall and solidified a partnership with the Nashville International Airport last month. According to the company website, Lousiana currently boasts the most locations — 20 in Greater New Orleans alonge — followed by 16 in Chicago. The next most populated area lies from Boston to Washington D.C. thank to the company’s partnership with Amtrak. By positioning themselves strategically in high-traffic venues, Carrigan says they’re aiming to establish MobileQubes as the market Photo Crystal Shelton
Automated, self-service kiosks allow users to easily rent a battery pack that they can return to any of the other currently 20 kiosks in the city. Fees are $4.99 for a 24-hour rental and 99 cents for every day up to seven days. After seven days, the user is charged the $39.99 purchase fee.
leader in on-demand mobile power. “We’re just in the U.S. right now,” he says. “We’ve had a lot of interest from the international marketplace, but I really think we need to focus right now on really solidifying the U.S. before we move into other markets.” Asked what kind of growing pains the company has felt, Carrigan says there’s been a few. “With any startup you’re definitely in the role of problem-solver,” he says. “For instance, there was the time we had to deal with a power outage at Union Station in Chicago, but mainly I think the challenge is to recognize that working with big corporations requires some patience. They tend to have many layers of leadership — unlike
someone like us — so sometimes they don’t move as fast on things as we would want or need. As a startup, we’re very flexible and agile. With them, things can take a while.” Carrigan says the goal of the company has always been to eventually sell. “We are positioned for acquisition at some point,” he says. “To really be a global solution we’d have to under the control of someone really big, like a Fortune 100 company. That kind of business is the only one that would have the infrastructure that something like this needs.” For the more immediate future, Carrigan says it’s all about adding locations, but his mind is always spinning with new ideas. “Eventually I think we could create a membership or subscription service, something where when you bought a cube you were part of a network — an ecosystem,” he says. “Moving more from a Redbox style of doing business to something more like Uber, where you could access power everywhere, on demand, no matter where you are.” n BizNewOrleans.com JULY 2016
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Events Biz New Orleans PO.W.E.R. Conference Presented by Hub International Thursday, May 19, 2016
9th Annual ACG Louisiana Awards Thursday, May 19, 2016 The Roosevelt New Orleans
Metairie Country Club Biz New Orleans’ first P.O.W.E.R. Conference (Protecting Our Workforce from Emerging Risk) brought in experts from the fields of safety and wellness to provide solutions and best practices to local employers.
Celebrating corporate growth statewide, this year’s ACG Louisiana Awards recognized companies including Laitram, Lucid and Pan-American Life Insurance Group.
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1. Annette Dowdle, Mike Waguespack and Melodee Wills 2. Debra Lerner 3. Michael Pedalino, Liz Thomas and Frank Nazario 94
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1. Bill Hines, Jose Suquet and Hank Wolf 2. Abhay Patel 3. Ragan Richard, Dorothy Clyne and Chris Kenny Photos by Cheryl Gerber
Louisiana Energy Conference Wednesday, June1Â
New Orleans Chamber Presents: Legislative Debrief with Rep. Walt Leger
Westin Canal Place
Tuesday, June 14 Sheraton New Orleans
This three-day conference brought together professionals from both public and private energy companies to discuss issues affecting the industry.
Louisiana State Representative and Speaker Pro Tempore Walter J. Leger III spoke to chamber members about what happened during the recent legislative session and what they can expect in the future.
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1. Curt Hearn, Joe Bennett, Kevin Robert and Mike DuBose 2. Curt Hearn 3. Charles Nelson Photos by Jeff Strout and Cheryl Gerber
1. Mary McField, Dottie Reese and Rachel Guidry 2. Walter Leger III 3. Jeffrey Pilet, Joseph DiTommaso and Michael Thiery BizNewOrleans.com JULY 2016
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Behind the Scenes
On Air WWL radio’s top rated “Scoot in the Afternoon” talk show airs weekday afternoons from 1 to 4 p.m. at the station’s headquarters on 400 Poydras Street. Operating since 1922, WWL (870AM) broadcasts live from 5 a.m. to midnight daily and is the No. 1 news-talk station in the market.
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Photo by Cheryl Gerber