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Editor’s Note
Happy Mom’s Day I
n honor of Mother’s Day, last year’s May issue looked at local “mompreneurs” — entrepreneurs managing to successfully juggle the demands of running a business and running a family. For this year’s nod to Mother’s Day, we thought we’d take a different spin on things and pay some much-deserved attention to Mother Earth’s role in Southeast Louisiana’s economy. As survivors of the most destructive, and most costly, natural disaster in American history —Hurricane Katrina — followed by an epically horrendous man-made disaster — the BP oil spill — we know what it looks like, and feels like, when things go bad, when preventative measures fall hopelessly short and when we fail to recognize our very precarious situation. This month we spoke with three women who are helping businesses and industries make the connection between our economy and the environment. Every day their work is ensuring we not only have a future, but that its one in which New Orleans plays a visible role in leading the global effort toward sustainability and disaster management. And speaking of nature, the temperature is heating up and the bugs are coming out, which means we thought you may be interested in stocking up on one local entrepreneur’s creative offering: Medic Murder Mix. An all-natural bug spray that smells good, hydrates your skin and is safe for not only you, but your pets? Too good to be true? Thousands of bottles sold point to no. Finally, I’d like to take this public opportunity to extend a Happy Mother’s Day to my own mom, Pat MacPherson. To you, and all those mothers that encouraged us to make a career out of our passions, I can’t say thank you enough.
Happy Reading,
Kimberley@BizNewOrleans.com
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MAY 2016 | volume 2 | issue 8
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 Robert Edgecombe, Steven Ellis, Suzanne Ferrara, Rebecca Friedman, Pamela Marquis, Chris Price, Peter Reichard, Greg Rhoades, Kim Roberts, Jennifer Gibson Schecter, Keith Twitchell, Melanie Warner Spencer advertising Vice President of Sales Colleen Monaghan Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Senior Account Executive Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 PRODUCTION Production/Web Manager Staci McCarty Senior Production Designer Ali Sullivan Production Designer Monique DiPietro, Traffic Manager Jessica DeBold administration Chief Executive Officer Todd Matherne President Alan Campell Executive Vice President Errol Laborde Vice President of Sales Colleen Monaghan Director of Marketing & Events Cheryl Lemoine Event Coordinator Margaret Strahan Administrative Assistant Denise Dean Distribution Manager John Holzer Subscription Manager Sara Kelemencky Subscription Assistant Mallary Matherne
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
98
48
40
Features
From the Lens
40 Fighting for Our Future
76 Great Offices
A look at three women working to raise awareness of the critical tie between the environment and our economy
48 30 Years of YLC
Three decades of young leaders making a difference
French Quarter Realty
88 Why Didn’t I Think of That?
Local film medic, Kris Butler, hopes to make a killing with a bug spray made solely of essential oils.
96 Behind the Scenes WWL-TV Studio
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On the Cover From left to right: Liz Shephard, CEO of LifeCity; Robin Barnes, executive VP and COO of GNO, Inc.; and Bethany Kraft, director of the Ocean Conservancy’s Gulf Restoration Program, gathered together at City Park. Photo by Jeff Johnston.
Contents
30 82 22 Columns
20 NOLA By the Numbers
How diverse is our economy?
22 Dining Biz
Bars aren’t what they used to be.
24 Tourism Biz
Shakespeare’s First Folio on display this month
26 Sports Biz
More championships in high school sports will not be a good thing.
28 Film Biz
A local architectural salvage company has seen sales from film clients drop significantly.
30 Entrepreneur Biz
Is there an entrepreneur hiding in you?
32 Biz Etiquette
You made a mistake at work: Now what?
34 Tech Biz
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Mobile phones can threaten company security.
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Perspectives
News
56 Maritime & Ports
18 Calendar
60 Banking & Finance
36 Biz Bits
Trouble hits the mighty Miss.
Banks giving back
64 Real Estate & Construction
Problems with our Commercial Zoning Ordinance
72 Guest Viewpoint
Don’t wait, automate.
Upcoming events not to miss
Industry news
82
Q&A Trey Fayard, CEO of GLO Airlines
94 Around Town – Events Industry gatherings
BizNewOrleans.com MAY 2016
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Publisher’s Note
POWER UP!
T
his month, Biz New Orleans is teaming up with HUB International to introduce our first POWER Conference. On the morning of May 19, Debra Lerner, MS, PhD from Tufts University, will deliver a keynote on the strategy of health and productivity in the workplace. This educational event, focused on protecting your workforce from emerging risk, will also include insights from David Bowman, CEO of Knowledge Vine, along with other workforce speakers in a panel discussion. With the increased need for productivity, keeping your employees safe and healthy is a valuable asset for the human resource and benefits division of any company. We are thankful to our additional sponsors — Netchex, Adams & Reese LLP, Entrusted Concierge, Greenup Industries, Iron Tribe Fitness, LCI Workers’ Comp & U.S. Forensic — for helping to make this event a reality. As Biz New Orleans continues to grow and strengthen its network of resources for the business community, we are thrilled to be adding this first-of-its-kind event under the Biz Network. To learn more, please visit BizPowerConference.com. We’ll see you there! Todd Matherne
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Meet the Sales Staff
Colleen Monaghan Vice President of Sales (504) 830-7215 Colleen@BizNewOrleans.com
Maegan O’Brien Sales Manager (504) 830-7219 Maegan@BizNewOrleans.com
Caitlin Sistrunk Senior Sales Executive (504) 830-7252 Caitlin@BizNewOrleans.com
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Calendar Wednesday, May 4
Thursday, May 12
Covington Business Association Monthly Meeting
New Orleans Chamber of Commerce
5:30 p.m. Icebreaker
Women’s Business Alliance
6 p.m. Meeting
5 – 7 p.m.
Heritage Bank
Salon D
204 N. Columbia Street
317 Burgundy Street, Suite 14
CovingtonBusinessAssociation.org
NewOrleansChamber.org
Wednesday, May 4
Thursday, May 19
Hispanic Chamber of Commerce of Louisiana
AMA New Orleans Southshore Luncheon
1st Annual Women’s Business Symposium
Collaboration Between Sales & Marketing
1 – 6:30 p.m.
Time and location T.B.D.
Sheraton Metairie — New Orleans Hotel
AMANewOrleans.com
4 Galleria Boulevard, Metairie HCCL.biz
Thursday, May 19 Wednesday, May 11
New Orleans Chamber of Commerce Chamber After 5
Jefferson Chamber of Commerce
5:30 – 7:30 p.m.
Business Leadership Awards Luncheon
The Outlet Collection at Riverwalk
11:30 a.m. – 1:30 p.m.
740 Convention Center Boulevard
Airport Hilton
NewOrleansChamber.org
901 Airline Drive, Kenner JeffersonChamber.org
Tuesday, May 24 Thursday, May 12
New Orleans Chamber of Commerce Educational Seminar: Budgeting for Success
5th Annual Green Games Awards Gala
Presented by the Society of Louisiana CPAs
7 – 10 p.m.
11:30 a.m. – 1 p.m.
The Eiffel Society
1515 Poydras Street
2040 St. Charles Avenue
NewOrleansChamber.org
MyLifeCity.com
Thursday, May 12 ABWA Crescent City Connections Luncheon Dr. Gerry Citanovich, MD, Jefferson Parish Coroner 11 a.m. – 1 p.m. Ralph Brennan’s Heritage Grill 111 Veterans Boulevard, New Orleans ABWANewOrleans.org
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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Columns | NOLA By The Numbers pErcentage of workers by Industry
Professional, Scientific, 9.8% and Technical Services Accommodation and 9.1% Food Services
Retail Trade 10.1%
Health Care and Social Assistance 11.2%
Educational Services 11.3%
Austin (Metro)
Educational Services 7.9%
Accommodation and Food Services 9.0%
Manufacturing 9.3%
Retail Trade 11.0%
Educational Services 7.5%
Professional, Scientific, 9.6% and Technical Services Accommodation and 8.6% Food Services
Retail Trade 10.0%
Health Care and Social Assistance 14.2%
Nashville (Metro)
Denver (Metro)
Health Care and Social Assistance 12.1%
Retail Trade 6.3%
Professional, Scientific, 8.0% and Technical Services
Educational Services 11.6%
Accommodation and Food Services 13.5% Health Care and Social Assistance 12.6%
New Orleans (Metro)
Diversifying our Portfolio How diverse is our regional economy, and how has that changed?
M 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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ost financial experts will advise you of the prudence of developing some degree of diversification in your investment portfolio. Doing so spreads your risk around and insulates you from the poor performance of an individual company or a downturn in a particular industry. It’s a simple calculus: the higher the concentration of your assets in a certain stock or industry, the greater your longterm vulnerability. Metropolitan economies, it is widely regarded, work much the same way. While diversification is not the only indicator or driver of economic health, it does make cities much less susceptible to shocks when industries slump or consumer demands or labor trends change drastically. So how does the New Orleans area fare in economic diversification? Obviously this is a large and complex question, and there are many different credible ways to answer it. I analyzed employment data from the U.S. Census Bureau to compare the percentage of New
Orleans area workers employed in 20 different industries. I then compared those percentages to three different cities ranked by Area Development Magazine as among the top 20 most economically vibrant metropolitan areas in the country — Denver, Nashville and Austin. At first glance, the results are not especially striking. The top five industries in each metro area (as they are in many regions) are fairly consistent: healthcare and social asssistance; retail trade; educational services; accommodation and food services; and professional, scientific, and technical services, are for the most part the largest employers. And the degree to which these top five industries comprise the overall employment pictures in each of the metro areas is fairly similar: 52 percent in New Orleans and Austin, 51 percent in Nashville, and 48 percent in Denver. On the face of it, New Orleans does not seem to have employment concentrated more highly in any particular industry or small subset of industries
than the other areas; our distribution of employment seems at least similar to other thriving cities. In some respects, however, even the apparently modest differences are instructive. For example, 13 percent of all workers in the New Orleans metro area (and 19 percent in Orleans Parish) are employed in the accommodation and food services industry, whereas in the other metro areas, this percentage hovers around 9 percent. Additionally, the New Orleans area’s share of workers in professional, scientific, and technical services is only 6 percent, compared to 10 percent of workers in Denver and Austin. Those percentages may seem modest, but 1 percent of the New Orleans area’s workforce represents over 5,000 employees. Another way of looking more closely at our own diversification is the extent to which the distribution of jobs has changed over time. According to the census data, the New Orleans metro area has added over 10,000 jobs since 2002. The share of employment in educational services has more than doubled, and we have experienced significant increases in public administration, professional, scientific and technical services, as well as transportation and warehousing jobs. Our largest decreases have come in the percentages of regional jobs in retail trade, manufacturing, finance and insurance, and health care and social assistance, although each of those areas still constitute a large share of our overall employment. In other words, through this coarse and perhaps overly simplified measure, we seem to have largely experienced increases in employment in sectors that are arguably more durable. The subject of economic diversification is complex, of course, but it is the subject of study and action in many leading business and economic development groups in the region. We have become accustomed to oversimplified narratives about our area: that our main game is tourism, for example, or that our economy has been transformed by large numbers of young, “creative class” workers. These perceptions, and others, have elements of truth, but it serves our leaders well to continue to examine our region strategically and in great detail to ensure that we are both less vulnerable to industry risks and wellpositioned to adapt to an ever-evolving and increasingly competitive national and global economy. n
Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics, 2014
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Columns | Dining Biz
Here’s to the New Places Our local bar scene has definitely received a facelift.
N Peter Reichard is a native New Orleanian who has written about the life and times of the city for more than 20 years, including as a former newspaper editor and business journalist.
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ew Orleans is often called a city of neighborhoods, but it’s also a place made up of inside places. The patina on the inside of Napoleon House says as much about the city as the view down Royal Street. The labyrinth of dining rooms at Antoine’s says as much as a walk down St. Charles Avenue. And anyone who knows the French Quarter well knows that real life occurs behind the gates, through the porte-cocheres and in the courtyards. A big part of the way we experience the city is from the insides of places. In some cities, the insides are much more important than the outsides. For instance, in Dublin, the exterior cityscape is austere. But enter a pub, and you can be welcomed into a devoutly ornamented temple to Dionysus. It’s as though all of the city’s creative energy went into providing the ideal
settings for drinking whiskey and dry stout. Similarly, the insides of bars say a lot about New Orleans. And those insides are changing. Step back in time a bit. Until recently, going to a bar in New Orleans meant walking into a cacophonous, smoke-clouded space. It had an unfinished cement f loor, dingy from decades of ashes and spilled drinks. The walls were woodpaneled. Beer signs provided most of the lighting — as well as the artistic f lourishes. The bartender, a fading veteran wearing Sansabelt pants, needed to know how to make only about a dozen drinks. Past the bar, people were playing pool and darts. I can’t speak to the women’s, but the men’s room was grimy and covered with graffiti. The trough-like urinal was filled, for some reason, with ice. The juke box twanged out “Cissy Strut.”
Today, you are just as likely to find yourself in what by comparison would be an antiseptic environment. There’s no smoke. It’s not very loud. The music is trendy, the décor trendier. There’s actual art on the walls. The bartender, a bearded millennial, knows a vast repertoire of specialty and artisanal cocktails, many of which you order from a menu. There might not be a pool table. There’s definitely no urinal-trough ice. If “Cissy Strut” or any other Meters song is playing, it’s in an ironic way. Part of this change owes to higher standards. In the words of Brooks Graham, an architect who has designed a number of local bars and restaurants: “Cocktails are becoming more and more complex. … It’s the return of the 1950s, early 1960s fascination with cocktails.” We want classy cocktails, and we want a classy, modern atmosphere to go with them. Loa in the CBD was the spearhead of this movement. The nouveau-voodoo watering hole dates back all the way to the pre-Katrina years. But today the classy cocktail movement is evident in a wide variety of places. Treo in Mid-City gives Tulane Avenue’s gritty rep a decided kick in the rump. Latitude 29 in the French Quarter takes a modtiki approach. Bar Tonique on Rampart has a Francophilic feel. Bellocq at Lee Circle draws inspiration with a polished Storyville bordello theme. Cure on Freret has the cocktail aficionados Uptown covered. The list goes on. Say what you will about the change in our drinking places, but it has two distinct upsides: First, you don’t leave with your clothes reeking of cigarette smoke. Second, there’s little danger of hangovers because, when paying craft cocktail rates, who can afford to overindulge? n Photo Thinkstock
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Columns | Tourism Biz
Wherefore Art Thou, Folio? Shakespeare’s First Folio is on display in New Orleans this month.
O 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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f all the cultural offerings New Orleans has on hand, a nearly 400-year-old collection of William Shakespeare’s plays has not been one of them — until now. Through a special partnership with the Folger Shakespeare Library and the Newcomb Art Museum of Tulane University, one of only 233 copies of the First Folio will be on loan and displayed in a special exhibit for the month of May. Shakespeare’s friends and colleagues collected the bard’s comedies, histories and tragedies into one volume for the first time, creating the First Folio. According to the Folger Shakespeare Library, 750 or fewer copies were printed in 1623. Most researchers (and my college Shakespeare professor)
agree that without the printing of the First Folio, many of the playwright’s works would have been lost forever. And what if we only had Coriolanus to judge him by? Dr. Michael Kuczynski, associate professor of English and chair of the English department at Tulane University, played a key role in bringing the First Folio to New Orleans. He is also the faculty representative to the Folger Institute and championed the temporary exhibit. Asked why a tourist or local should make seeing this exhibit a priority in May, he excitedly replied, “Shakespeare is for everyone! The opportunity to see the First Folio in New Orleans establishes a real, physical link between this place and its people and the most
important writer who ever lived—and whose works endure… In coming together to appreciate the First Folio, during this once-in-a-lifetime exhibition tour, we learn to appreciate more deeply not only Shakespeare, but ourselves and each other.” Shakespeare is intrinsically tied to London, but he has his fair share of connections to New Orleans as well. Dr. Monica Ramirez-Montegut, director of the Newcomb Art Museum of Tulane University, said, “New Orleans is arguably the most Shakespearean of American cities in its simultaneous embrace of comedy and tragedy — evident in the symbolism of Mardi Gras and even in the Muses streets of Thalia and Melpomene. Characterized by extremes, our lives as New Orleanians are tests in resilience, empathy, and humor; we navigate between the opposites of the human condition just as Shakespeare’s characters have done for the last four centuries.” Newcomb will house the First Folio exhibit, but has also collaborated with the New Orleans Public Library, New Orleans Shakespeare Festival at Tulane, the university’s English department and The Historic New Orleans Collection for special events in conjunction with it. Focusing on connections between New Orleans and the bard, The Historic New Orleans Collection will also feature a small exhibit during May. According to reference assistant Robert Ticknor, approximately 20 items will be on display that demonstrate Shakespeare’s influence on the culture of New Orleans. The items focus on the early English-language plays in the city as “American” residents moved in and desired entertainment that wasn’t in French, as well as instances of Mardi Gras themes and décor showing the prominence of Shakespeare’s quill. “We curated what I hope will be an interesting exhibit examining Shakespeare and his place in New Orleans,” Ticknor said. “Everyone should certainly go Uptown and see the First Folio in person at Tulane. But if you can’t make it over there, our exhibit will make a nice diversion.” For more information on the First Folio exhibit, the Historic New Orleans Collection, and all of the events surrounding this important work of art, visit http://firstfolio.tulane.edu and www.hnoc.org. n Photo courtesy of Tulane University
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Columns | Sports Biz
The Great Divide A vote to divide select/non-select schools in post-season play could cause an LHSAA exodus.
W
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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hile most of the bloodletting in Baton Rouge this year has come out of the Capitol, the Louisiana High School Athletic Association (LHSAA) has done its best to add to the state’s political carnage. At the LHSAA annual convention earlier this semester, the general assembly of the state’s principals and athletic directors voted 182-120 to expand the postseason playoff split between select (private, charter, university lab and magnet) schools and non-select (public) schools. This playoff split, seen in football for the last three seasons, will now be seen in boys and girls basketball, baseball and softball beginning this fall. That means instead of the traditional five championship
games in five classifications for the state’s football programs, there will be nine state championships, with non-select schools in five classifications (5A - 1A) and select schools in four divisions (I - IV). Additionally, instead of seven championship games based on classification (5A – C) in basketball, baseball, and softball, five divisions (I - V) will be added for select schools, making for 12 championship games in each of those sports. While the majority of private and charter school officials did not want to split the association, public school leaders say they are required by law to take student athletes within their designated attendance zone and are at a competitive disadvantage to select schools that can admit, even recruit, they say, student
athletes without geographic restriction. The split — and resulting increase in the number of championship games — immediately brought several issues to the forefront, including increased expenses, revenue sourcing, logistics of adding playoff formats and host venues, and working within established contracts, which are usually signed two years in advance. LHSAA executive director, Eddie Bonine, said sponsors could pull out of their deals as a result of the playoff expansion. Feeling forced out of the LHSAA, officials from many select schools have held meetings this spring to discuss the possibility of forming a new, separate athletic association open to all Louisiana schools, which could kick off in August. A split like that could have a negative financial impact on local athletic programs, especially at area public schools, which face funding issues for academics, much less extracurricular activities. When select and non-select schools play one another, game-day gate receipts are split evenly. More often than not, local select schools draw a much bigger crowd than their non-select opponents, so these games benefit the non-select schools. If select and nonselect schools play in different associations, head-to-head match-ups will be much less likely to happen, if they even happen at all. For non-select schools in more rural parts of the state, travel will likely increase and filling schedules will become more difficult due to the number of similar schools in the region. Both will drive up costs for their athletic programs. Because of the number of select schools in the New Orleans area, those effects will be felt less. Like many New Orleanians, I’m reticent to change. When it comes to sports I’m a traditionalist, and don’t really cotton to the idea of the select/non-select split. The state’s public school leaders make compelling arguments, but I’d prefer to see all the state’s schools compete against one another to see which one is best. While having multiple championships allows for the opportunity for more of the state’s young athletes to gain a sense of accomplishment, those achievements are minimized when the competition they face is diluted. Unfortunately for now, while select and non-select schools might share local stadiums, they won’t be in the same ballpark. n Photo Thinkstock
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Columns | Film Biz Julia Ricca, manager of Ricca’s Architectural Sales, in front of the company’s Mid-City building.
Trying to Salvage Sales Ricca’s Architectural Sales is one local business feeling the pinch in the wake of the film caps.
A
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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lmost exactly one year ago, Film Works New Orleans was so busy they didn’t have time to paint the walls of their new digs. On March 31, after less than 2 years in business, the studio closed its doors — another casualty of the recent film tax credit caps. People are nervous, and rightly so. But it’s easy to forget that the film industry’s scope here reaches into corners you wouldn’t think of, and those corners are suffering as well. One example is Ricca’s Architectural Sales, a business that’s been operating in New Orleans since its founding by Peter A. Ricca in 1956. For six decades this family-owned company has been selling antique and reproduction
architectural salvage. Ricca’s currently operates out of an over 50,000-square-foot space in Mid-City, making it one of the largest businesses of its kind in the South. The business, however, is hurting. “When we came back after Katrina it was the film industry that saved us,” says Julie Ricca, store manager and granddaughter of the store’s founder. “In the last 10 years, the industry actually made up, I’d say, about 40 percent of our clientele.” Ricca says that films turn to her family’s business for decorative hardware, doors, windows and props — all to fit a certain period. “Our stuff was used on films like ‘Django [Unchained],’
‘12 Years a Slave,’ and ‘Double Jeopardy,’ along with lots of commercials and recent productions like ‘American Horror Story,’ ‘NCIS: New Orleans’ and ‘Scream Queens,’ she says. “We actually were even on a Ragu commercial recently.” Ricca says the company is one of only two or three in the area that deal with antique and reproduction hardware, which, though small details, can be important. “With Tarantino, he’s one that’s really passionate about his sets being period appropriate. We help make that happen.” Ricca says up until eight to 10 months ago, the shop was typically visited by about six or seven production assistants and art directors every week. “Now we’re lucky if we see one a month,” she says. “The ones we do see are talking about how there’s just not enough positions to go around, and a lot are moving to Atlanta. When they do buy, they’re spending less than they used to. Basically, the incentive to spend here is gone.” Like everyone else in the industry, the Riccas are in a “wait and see” mode, but as business continues to dwindle, it’s hard to stay patient. “I don’t understand it,” she says. “I just keep thinking, is it really worth risking a $1 billion industry to try and hold onto $1 million worth of taxes? I’m not a poli-sci major and I’m not in the industry, but I do run a business that’s hurting from all of this, and I think it’s easy to see that something’s wrong here.” I agree. It is a problem that is easy to see, and incredibly hard to measure. How many businesses did the industry save post-Katrina like Ricca’s? How much has the inf lux of film professionals raised the prices, and thus property values, of homes in this area? How much has our tourism increased from those looking to see where their favorite show or movie was filmed? For now, Ricca says she’s starting to feel resigned to the new reality. “It was great while it lasted,” she says. “Now we just have to go back to how it used to be, which was minimal.” n Photo Jeff Strout
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Columns | Entrepreneur Biz
What’s Holding You Back? If you have these qualities, you’d likely make a great entrepreneur.
T 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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here’s probably not a soul on earth who hasn’t had a great idea for a new product, service or business pop into their head at least once. Yet only a minuscule percentage of us ever take that idea and even attempt to turn it into an enterprise. Why? What keeps people from embarking on the entrepreneurial path? It’s not what you’d think. First, it’s not money. Many a successful entrepreneur has started up with nothing in the way of financial resources. Yes, at some point virtually any business needs access to cash – but that point is rarely the starting line. Second, it’s not time. People with demanding jobs, and/ or raising children, and/or any number of other timeconsuming obligations have still
managed to get their ideas off the ground. Again, sooner or later an entrepreneur needs to commit a greater amount of time to his or her project; again, the project can be well underway before that commitment is necessary. Conquer the fear. During World War II, President Franklin Roosevelt famously said, “We have nothing to fear but fear itself.” He could easily have been addressing a convention of reluctant entrepreneurs. By definition, being an entrepreneur means taking a risk. Risk-aversion (really a polite way of saying fear) has been bred into the human DNA since caveman days, and today’s world hardly seems conducive to taking extra risks. Nonetheless, the first thing an entrepreneur has to do is confront the fear
and be willing to take the risk. Beyond that, what are some signs that you might be an entrepreneur but not willing to admit it? Problem-solving skills. One of the best quotes from this year’s New Orleans Entrepreneur Week came from Michael Flowers, former chief analytics officer for the city of New York, who observed that “A problem is an asset.” If you are someone who embraces problems as opportunities and has the ability to find creative solutions, you have a critical entrepreneurial skill. Energy and focus. Are you often the first to arrive and/or the last to leave at work (and maybe the one who works through lunch as well)? Do you find yourself thinking creatively about work while you’re working in your yard or playing a round of golf? This is the kind of dedication it takes to be a successful entrepreneur. Idea person. Big or small, every new enterprise starts with an idea. If you find ideas popping into your head on a regular basis, maybe you should start writing some of them down. One of them could turn into “the next big idea.” An independent streak. No matter how committed you are to your job, do you occasionally chafe at the inherent restrictions of working for any company of any size? If you dream of being captain of your own ship, maybe it’s time to consider launching — even if it’s just a little pirogue to start. This brings us to another key point: Taking that first step on the entrepreneurial path is a commitment, and any commitment can definitely be scary. But there are ways to minimize the risk. You don’t necessarily have to quit your day job to begin a new venture, though you owe it to your employer not to do something that either competes with their business or impairs your job performance. You don’t have to invest a lot of money up front, either. This said, you do have to make the commitment, both to yourself and your idea. If you are someone who dreams of a better life and a better world, why not take a look inside yourself and see if there is an entrepreneur ready to jump out? If the answer is yes, put one of those Roosevelt dimes on your computer and take the former president’s words to heart! n Illustration Jrcasas
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Columns | Biz Etiquette
Damage Control Taking responsibility for mistakes and missteps at work
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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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hether you’re fresh out of college or a 20-year veteran in your industry, there inevitably comes a day when you make a mistake at work. The lucky among us have jobs in which our lapses don’t equal physical injury, loss of life, financial ruin or public disgrace for our employer or ourselves, but whatever the consequences, it’s important to take action when we foul up. At times, despite the best efforts of countless etiquette experts and your parents, the slip-up is a breach of etiquette. Other times, it’s an error or oversight related to your job duties. The worst cases, of course, involve breaches of illegal activity or ethics. Regardless, when you commit any type of blunder at work (or socially for that matter), there are steps to take toward recovering respect, trust and — in some cases — your dignity.
Most workplace gaffes can be either avoided or quickly solved by simply embracing the rules of ethical conduct. A 2008 survey by the Aspen Institute Center for Business Education states that “55 percent of students in the 2007 survey who have just started business school strongly agree that they have opportunities to practice ethical/responsible decision making as part of their MBA.” According to the students surveyed, those opportunities decreased as they got further into the program. Once out in the professional realm, we are often left entirely to our own devices, which doesn’t always go well, especially if ethics, integrity, honesty and the concepts of right and wrong weren’t part of our upbringing or education. This gap in society’s emphasis on that particular area of philosophy is on display time and time again in all too com-
mon press conferences in which a public figure stands at a podium issuing an apology (or the more ubiquitous and obvious non-apology) to a gaggle of reporters and bystanders. Unfortunately, most of these public apologies don’t take place until after an enterprising journalist or whistleblower has discovered the misstep or misdeed. Thankfully, most of us won’t have to face the media after mismanaging a deadline, losing a client or failing to make the daily bank deposit. We will, however, have to face our team or supervisor. The best-case scenario is that you’ve discovered your mistake on your own and can be the one to bring it up. When this happens, it’s important to take responsibility for the misstep. The worst thing you can do is ignore or try to cover up the mistake. Doing so could exacerbate the problem, the consequences and the way you are perceived within your company. First thing’s first: Apologize. Be sincere and thorough in your communication. Second, to cushion the blow, offer a solution along with your apology. This can be so effective that in some cases, you’ll negate embarrassment and fallout. But even if you are still left feeling a little red in the face and there is additional damage control in order, you’ve at least exhibited character and proved that you care about your work. It’s not ideal, but at times someone else brings the mistake to light. When that happens, the steps are the same as in the earlier scenario. Apologize first, and then offer a solution. Once out in the business world, it’s up to employers to create a company culture that emphasizes and fosters ethical conduct. As individuals, especially if our company doesn’t prioritize it, we are tasked with cultivating ethics and best practices, which leads to integrity, trust and respect. As C.S. Lewis said, “Integrity is doing the right thing, even when no one is watching.” When we act with ethics and integrity, those times when we do mess up are much more quickly and easily forgiven and — if we are lucky — forgotten. n Photo Thinkstock
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Columns | Tech Biz
The Mobile Risk What’s your business’ policy for dealing with mobile access to company data?
T 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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he immense popularity of mobile devices is inescapable, yet most small businesses have given little real thought to how best to manage them. Until recently, I shared the opinion that there often isn’t much to worry about. The amount of corporate data on mobile devices was limited (most of it to email) and we can usually remotely erase a lost device, thereby dealing with the most obvious threat. But as the usage of mobile devices has grown, so have the amount and types of sensitive information that they contain. Cloud-file syncing apps now make it easy for all sorts of files and documents to find their way into any employee’s pocket. It’s time to recognize the significance of this and grapple with the implications — time for small business owners and managers to plan and execute a mobile device strategy. Policy The first step in developing a strategy is to conceptualize and then write down what you would
like to happen, typically in the form of a mobile device policy to be disseminated to and signed by employees. Start by defining the scope: What types of mobile devices are covered? Most people think of smartphones and tablet computers, but the policy might also apply to laptop computers, flash drives, external hard drives, and anything else portable that contains corporate data. And surely the policy would apply to companyowned devices, but certain or all of the provisions should also apply to employee-owned devices that access company data. Once you have defined which devices you’re concerned with, you can set guidelines for how they should be configured and used. A basic policy should state which corporate data is allowed to exist on a mobile device. It should also require at a minimum that all devices containing corporate data be protected with a password and disk encryption. Finally, every mobile device policy
should require employees to notify the IT department immediately if a covered device is lost or stolen. Moving beyond the basics, a more comprehensive policy might dictate which apps are allowed to access corporate data or which apps can be installed on the device. It might prohibit employees from jailbreaking or rooting their devices. It might set or restrict certain device or app settings, such as how many days of email can be stored or whether apps containing corporate data can be backed up to the cloud. The possibilities can be overwhelming, so a good place to start is by finding a policy example or template online. Keep in mind, however, that when you dig into the details there is often no single right answer. What’s best for you will depend on your circumstances and corporate culture. It’s all about balancing security with usability and choice. Enforcement Once you have developed your policy, the second part of the strategy is to enforce it reliably. While certain aspects may require nothing more than communicating expectations to employees and obtaining their commitment to following them, frequently the risk is too great, or the expectations too technical, to rely solely on willing, conscious compliance. The solution is to use a mobile device management (MDM) solution, which allows the IT department to strictly enforce policy specifications. Entry level MDM is included with Microsoft Exchange, Microsoft Office 365, and Google Apps for Business. These offerings are sufficient for basic policy requirements and can completely wipe out a lost device or selectively wipe their associated apps. More advanced MDM solutions — like MobileIron, AirWatch, Cisco Meraki Systems Manager, and Microsoft Intune — add features like automatically installing or removing apps and “wrapping” corporate data and apps in a secure, self-contained area, insulating them from everything else on the device. Ranging in cost from zero to a few dollars per device or user per month, they are an effective tool for businesses with more complex needs. n Photo Thinkstock
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Biz Bits - Industry News Around town
My priorities for the parish include improving the quality of life for all residents, balancing and creating a healthy budget, and putting coastal restoration at the forefront of St. Bernard’s future. St. Bernard Parish President, Guy McInnis, who delivered his first State of the Parish Address on April 20. McInnis was recently appointed by Governor Edwards to the Coastal Protection Restoration Authority (CPRA).
Top 10 Most Cost-Friendly, Mid-Sized Markets in the U.S.
Top 10 Cities for Most Efficient Public Spending
1. 2. 3. 4. 5.
1. 2. 3. 4. 5.
Baton Rouge New Orleans Nashville Omaha Albuquerque
6. Memphis 7. Indianapolis 8. Oklahoma City 9. Salt Lake City 10. Raleigh
Source: KPMG, whose analysis measured 26 key cost components, including taxes, labor, facilities, transportation and utilities, as they apply to seven different business-to-business service sector operations and 12 different manufacturing sector operations.
New Orleans Miami Philadelphia Cleveland Houston
6. Hialeah (FL) 7. Dallas 8. Charlotte 9. Pittsburgh 10. Phoenix
Source: Financial website Wallethub, which examined how some of America’s largest urban centers spend taxpayer dollars on categories including education, law enforcement and parks and recreation. New Orleans was ranked No. 1 for return-on-investment (ROI) for education and No. 9 for ROI on law enforcement.
COMING SOON Monsanto has announced it will be expanding its manufacturing site in Luling, Louisiana, with a $975 million capital investment over the next three years. Completion of the expansion is anticipated for 2019 and is expected to create 95 new direct jobs with annual salaries averaging $76,500 plus benefits, along with 20 new contactor positions. Construction on the project is estimated to create 1,000 jobs at its peak.
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Entrepreneur Frank Scurlock has presented plans to the City of New Orleans Industrial Development Board to develop a theme park to be called Transformation village on the 200-plus acre site of the former Six Flags property that closed following Hurricane Katrina. The proposal includes a resort hotel and international shopping center twice the size of the Superdome.
Recent Openings
Mississippi River Intermodal Terminal The Port of New Orleans dedicated its new $25 Mississippi River Intermodal Terminal on March 30. The terminal provides an efficient option for moving cargo by rail, with the capacity to move 160,000 twenty-foot-equivalent units (TEUs) per year. The port addition is expected to create 100 new, permanent maritime jobs.
California Building A historic rehabilitation of a former office building at 1111 Tulane Avenue, the California Building was officially completed April 6 by MALIN Construction Company. The building features 167 luxury apartments that will be ready for leasing in June.
Closets by Design
The I.V. Doc
Closets by Design of New Orleans reopened April 4 with local entrepreneurs Charles Graffeo and Jim Incaprera as the new owners. The custom builder and installer of closets, garage cabinets and home offices hasn’t had a presence in the New Orleans marketplace for a few years.
The I.V. Doc™, a mobile, 30-minute, I.V. hydration therapy — has officially entered the New Orleans marketplace. Promising relief from hangovers, the flu, jet lag, exercise fatigue, food poisoning and general exhaustion, the service of health care professionals provides clients with I.V. hydration therapy from their home, hotel or private office.
We’d love to include your business-related news in next month’s Biz Bits. Please email details to Editorial@BizNewOrleans.com. BizNewOrleans.com MAY 2016
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Broussard’s Restaurant & Courtyard has been serving classic New Orleans dishes with a twist for 96 years. Conveniently located in the heart of the French Quarter, Broussard’s now offers lunch on Fridays from 11 a.m. - 2:30 a.m.! Try the $19.20 Pre Fixe menu and enjoy historical punches for just 96 cents each. Whether it’s for brunch, lunch or dinner, choose to dine in the majestic main dining room or in the palatial courtyard. Broussard’s — a local dining tradition since 1920.
Amici Ristorante & Bar
Trenasse
3218 Magazine St. | (504) 300-1250 AmiciNola.com
444 St. Charles Avenue, inside the InterContinental | (504) 680-7000 Trenasse.com
Located on bustling Magazine Street, Amici Ristorante & Bar serves original nouveau Sicilian cuisine daily for lunch and dinner and offers complimentary off-street parking. Join us every day for happy hour from 3-6 p.m. to enjoy 1/2 priced signature cocktails, beer and wine by the glass, as well as our mouth-watering, coal-fired pizzas. A beautiful, private second-floor dining and event space is available for luncheons, dinners, bridal parties, weddings, corporate events, family functions and more.
A store front restaurant located in the heart of the New Orleans CBD in the InterContinental Hotel, Trenasse’s collaborating chefs focus on Gulf Coast cuisine with a South Louisiana flair. Valet parking, comfortable outdoor seating and a fresh oyster bar surely creates a masterful dining experience.
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It’s Just
Good Business
Photo Jeff Johnston 40
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A look at how three leaders in environmental management are fighting to strengthen our economy through sustainability. By Rebecca Friedman
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I
n a world dominated by grim environmental headlines — coastal erosion, climate change, loss of biodiversity — it’s heartening to find stories of positive action. The good news is there are plenty of these stories in south Louisiana: change makers building a more symbiotic relationship between the economy and the environment. Biz New Orleans takes a deeper look at three of these leaders: Bethany Kraft, director of the Ocean Conservancy’s Gulf Restoration Program; Liz Shephard, CEO of LifeCity; and Robin Barnes, executive vice president and COO of Greater New Orleans, Inc. — all are working with the private, public and not-for-profit sectors to transform the region’s environmental challenges into economic assets and make Louisiana a model of resilience and preparedness for communities around the globe.
GDP for the Five Gulf States = $2.3 trillion/year Current Threats to the Gulf Include: n
Lingering effects of BP oil spill
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Pollution
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Coastal erosion
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Overfishing
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The dead zone
To be a part of the solution, visit OceanConservancy.org.
Saving the Gulf: Bethany Kraft
Director, Ocean Conservancy’s Gulf Restoration Program Though she has spent her life in states across the Gulf Coast, it took the BP oil spill for Bethany Kraft to fully appreciate the interconnectedness of the coast’s various ecosystems. In the wake of the spill, Kraft left her job with an environmental non-profit organization focused on coastal Alabama to join Ocean Conservancy, a national organization, and its efforts to aid the Gulf region’s recovery. Kraft’s “playground” now runs from Texas to Florida, and while she is located in Louisiana, she has come to believe that the best results will come only by looking beyond borders. “We try to think, from Texas to the Florida coast, what are the restoration projects that will be most impactful? How will what’s 42
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lobbying for their own interests, decisions aren’t always easy. As Kraft says, “Sometimes science and politics collide. But we really happening in Louisiana benefit Florida? try to infuse what science says is the right How will Florida benefit Alabama? Rooting thing to do into this global construct for for the home team is not going to be enough restoration. Sometimes I joke and say if to get us where we need to go as a region, everybody’s mad at and we try to carry you, you know you’re that message with doing the right thing.” the science to back The BP spill also up our priorities,” taught Kraft how little she says. the environmental Kraft and her community at large colleagues advocate - Bethany Kraft understood about a comprehensive the ecosystems they approach to were trying to protect. restoration, which “BP’s fines were predicated on what the is a delicate balancing act. “You can’t just do conditions in the Gulf were the day before one type of project or focus in one region, the spill. If you can’t make a sensible case but you also can’t spread everything so thin because you haven’t been measuring or that you can’t tell at the end of the day what monitoring, you are in trouble. You have you’ve spent $10 billion on. There are a lot of to really understand how your ecosystem good projects out there.” is functioning. This is an economy that With so many individuals and localities
“ People are coming here for the place. Without the place, there is no economy.”
Photo Jeff Johnston and Thinkstock
thrives in accordance with how our environment thrives. That was a wake-up call for a lot of people.” That wake-up call has sounded ever more loudly with each disaster striking over the past decade. Kraft believes this is an important development. “This whole concept of environmental protection versus economic growth as some sort of zero sum game is an illogical fallacy. That has never been the case, especially in a place where the economy is driven by natural resources. If you want to make money fishing or on tourism, you won’t make that money if there are no fish or the beaches are polluted with oil. People are coming here for the place. Without the place, there is no economy.” Kraft also espouses the economic benefits that come with the work of restoration. “There are jobs to be had rebuilding wetlands and oysteries, planting trees. There is room for everybody — laborers, landscape architects, engineers, construction firms — to make money. We can grow our economy and take care of our natural resources. And anyone who tells you that you can’t, you should be very suspicious of.” She also cautions against relying on disaster to spur communities to take action, encouraging them to act now, “while we still have a choice. Why wouldn’t we try to make things easier on the next generation by working on some of these tough issues while we still have options on the table?” Ultimately, Kraft hopes that a more widespread commitment to action will put her out of a job. “I would love to be in a place where we don’t need environmental advocates because we are all environmental advocates.” Photo Jeff Johnston
Helping business work Smarter: Liz Shephard
CEO, LifeCity Liz Shephard’s commitment to sustainability was sparked during her six-week Semester at Sea program in college, where she was instructed to take the trash from the 125-foot sailboat’s galley and dump it overboard. “For an environmental organization, I was kind of shocked that they were asking us to dump the trash into the ocean, but in reality, it hit me that I’ve been doing that my entire life — I just never had to actually do it myself.” After a volunteer program brought her to New Orleans, Shephard “fell in love with the city and the intentionality of people living here.” She came up with the idea for LifeCity as a software platform to help people identify and understand the environmental resources and operations in their communities, but she didn’t want to build a software platform before she had people to use it. Instead, she built a community of businesses and individual consumers “who want to do the right thing but don’t necessarily know how… and make it easy and affordable to make choices that support healthier planetary and human resources.” Shephard and a team of colleagues have spent the last five years building that community and growing LifeCity into an organization that helps companies across
In 2015, LifeCity’s business members had a marked impact on the local environment while helping their bottom line. n
660,395 pounds of waste diverted from landfills
270,000 gallons of water saved through efficiency and conservation
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2 tons of carbon reduced through transportation and energy improvements
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n
$1,147,252 in cost savings
For more information, visit MyLifeCity.com.
a range of sectors adopt more sustainable policies and practices. To be clear, for Shephard, sustainability isn’t just about the environment. It also includes social impact and making choices that benefit communities as a whole. “Most environmental consultants will focus on one issue or area, and most green certifications only talk about the environment. What we have created is a holistic certification that measures both environmental and social impact, because they are deeply connected,” says Shephard. LifeCity also brings a local perspective to its assessments, taking into account factors like the local geological impact of subsidence or flood management — things that national BizNewOrleans.com MAY 2016
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organizations may not recognize. And they are committed to supporting clients at any stage in the sustainability journey: “You might be just learning about this, you might be a leader in this — we work with you no matter where you are.”
“The trick is to help people realize this isn’t about politics or making you feel like you did something wrong or have to spend more money to do the right thing. This is about being a smart business.” -Liz Shephard Shephard believes in making the process fun as well. “A lot of environmental groups have this kind of doom and gloom approach. We say, ‘Hey, this is good. This is not so good. And this not-so-good stuff is an opportunity.’” She also acknowledges that “green” and “sustainable” have become loaded terms that can get in the way of good intentions. “The trick is to help people realize this isn’t about politics or making you feel like you did something wrong or have to spend more money to do the right thing. This is about being a smart business.” Shephard’s strongest argument to potential clients is just that: Incorporating sustainability is simply good business. “Most people are just working in their silo — they don’t realize there are ways to be more efficient, to partner, to save money.” In fact, Shephard often encounters companies who don’t even realize they are making sustainable choices. “I talked to an event planner who buys everything reused for table tops because it’s cheaper. I said, ‘That can be a marketing opportunity for you.’ I meet companies all the time that do things because it saves money, and they are not realizing that this is something they can actually be proud of.” LifeCity recently helped both Shell and GNO, Inc. make greener office moves, bringing in partners who picked up waste for free and resold those items in the economy; an organizer who made the moves more efficient; and a moving company committed to recycling materials. They might be called upon “when the Sheraton is getting rid of their furniture or has a big conference coming in that wants to do a volunteer activity, and a local school 44
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needs garden beds — we can connect those relationships,” says Shephard. As she looks to the future, Shephard is seeking funding to get that software platform off the ground, a move that will enable LifeCity to broaden its impact beyond New Orleans to communities around the world. The organization is also driving an initiative called Value Louisiana, which supports the growth of “for benefit” organizations, which Shephard describes as companies that are both “profit driven and mission driven.” Shephard is encouraged by the critical role that businesses can play in addressing our community’s toughest social and environmental issues: “Businesses are going to be more efficient at solving these problems because they are going to have a more direct relationship with the market they are serving.”
Building resilience: Robin Barnes
Executive Vice President and COO, GNO, Inc. For Robin Barnes, the greatest asset our region has developed after a decade of disasters is resilience. And resilience is an area in which she has plenty of experience. Barnes helped hundreds of small businesses recover after 9/11 in New York, then moved to New Orleans 10 years ago to help Seedco Financial assist small businesses in the wake of Hurricane Katrina. It was her work with local fishermen and restaurants during that time that helped her develop a deep appreciation for the regional economy’s dependence on the environment. “I felt that there was a missed opportunity when people talked about environmental issues that they were not actually talking about jobs and economic growth at the same time,” says Barnes. When she came to GNO, Inc., an Photo Jeff Johnston
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Environmental Initiatives from GNO, Inc. include: RES/CON – a three-day conference that brings together more than 500 leaders, advocates and specialists in resilience and disaster management from around the globe, along with over 100 companies. This year’s conference had an estimated economic impact of over $1 million. n
The Greater New Orleans Urban Water Plan – Released in November 2013 following two-years of work, this plan directly addresses issues with groundwater and storm water that greatly affect Southeast Louisiana. n
For more information, visit GNOInc.org.
economic development organization, she had the opportunity to connect those dots.
“What will tell us we have an industry is when we have a critical mass of companies that are generating revenue from water management.” -Robin Barnes
Barnes and her colleagues at GNO, Inc. believe the region’s continued growth rests on diversifying the economy and building social resilience. And environmental management, in areas such as water, is a critical part of that formula. Barnes points to coastal restoration, building green infrastructure, and implementing the Greater New Orleans Urban Water Plan (which GNO, Inc. administered and is now part of the city’s Resilient NOLA strategy) as promising areas of economic opportunity. Even more exciting to Barnes is bringing that expertise to other communities around the world. Barnes’ aspirations in this area 46
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are modeled on the Netherlands, which exports its water management services, technology and expertise around the globe and has developed the sector into an engine responsible for 4 to 5 percent of the country’s GDP. “If I look a generation ahead, 30 years down the line, I would like to see Louisiana be able to identify GDP from environmental management, which is probably going to be largely water related.” According to Barnes, there are 30,000 jobs in the Greater New Orleans region associated with water, ranging from construction to professional services, and GNO, Inc. projects that number to grow by 23 percent over the next decade. “But jobs do not an industry make,” says Barnes. “What will tell us we have an industry is when we have a critical mass of companies that are generating revenue from water management.” That critical mass will only come from bringing our expertise to new markets. One of the most exciting strides in this area is the growth of RES/CON, an international conference on resilience and disaster management held annually in New Orleans, which Barnes hopes will become “the Davos of resiliency.” The 2016 conference, held in March, attracted participants from 18 countries and 37 states and included key partners such
as 100 Resilient Cities, the Rockefeller Foundation and the International Association of Emergency Managers. “This is really about making Greater New Orleans the global hub of resilience… We’re looking to have RES/CON be where key practitioners, policymakers, funders, and students come to share information about resilient practices, disasters, and resilience management,” says Barnes. She is also encouraged by growing awareness in the business community that the health of the environment and the health of the economy are closely linked. GNO, Inc. has sought to translate this awareness into action by creating the Coalition for Coastal Resilience and Economy, a group of business leaders making the case that coastal restoration is critical to economic stability and growth. “These are not companies that have a vested interest,” says Barnes. “They are not engineering firms or companies that are going to be getting contracts. These are bank presidents, managing partners of law firms, CEOs of manufacturing companies, investors. These are influential people who are on many boards and have vast networks who are now talking about this issue.” What fuels Barnes most is not only hope, but the experience and commitment to transform that hope into results. “We’ve shown that we’re still here, that we’re going strong. We have a multitude of challenges, but now we have very real plans in place that have been adopted, that are now seeking funding, and that have a significant amount of funding. We can teach other cities that you can do this. We give other places hope.” n
Photo courtesy of New Orleans Ernest N. Morial Convention Center
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Photo Jeff Strout 48
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Leaving Their Mark As the Young Leadership Council (YLC) turns 30, we take a look at what the nonprofit has meant to New Orleans. By kim Roberts
T
he lights on the Crescent City Connection, those bumper stickers you see everywhere proclaiming, “New Orleans: Proud to Call It Home,” and $2 billion worth of economic investment from hosting sporting events including multiple Super Bowls — New Orleans has the Young Leadership Council (YLC) to thank for all of this and more. The oldest, independent young professionals’ organization in the country, the YLC celebrates its 30th year this year. Over the decades, it has served as the training ground for countless prominent businessmen and city leaders, while raising $25 million to support projects in and around the New Orleans. Known primarily as the force behind the popular free concert series, Wednesdays at the Square, today, the organization is headquartered just off Oretha Castle Haley Boulevard. As has always been the case, it is run by a different executive director every year and currently includes four staff members and a 25-member board of directors. The YLC boasts more than 1,000 dues paying members and an additional 7,700 supporters receive their e-newsletter. Membership is open to all individuals and enrollment is open year-round. So how did this organization go from a handful of enthusiastic young people sharing a meal to a powerhouse for city change? Biz New Orleans takes a look.
The current YLC staff — from left to right: Ellen Durand, Wednesdays at the Square production intern; Natasha Ott, office manager; Stephanie Powell, executive director; Candace Weber, membership and programming coordinator. BizNewOrleans.com MAY 2016
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Yesterday’s Dreamers Just barely out of college and searching for a meaningful way to become involved in the community while enhancing their professional lives, a few young professionals came together in the spring of 1986 to work on a way to solve some of the big issues facing the city of New Orleans. John Landrum, vice president for innovation at Intralox, remembers the breakfast meeting well. “There was this handful of young professionals that had all been involved — on both sides — with the local mayoral campaign,” he says. “When it ended, they were all still feeling exhilarated about doing more to help the city, so the idea of the Young Leadership Council was founded.” Landrum says the original core group included himself, Charles Leche, Chris Johnsen, Robert Bickham, Tripp Friedler and Constance Lewis.
Straight to Work Within just the first three years of operation, the YLC racked up some impressive accomplishments. The first was creating the Greater New Orleans Sports Foundation in 1988, a nonprofit dedicated to bringing major sporting events to the city. Still going strong today, the foundation has brought well over 100 high-level sporting events to New Orleans, including various Olympic trials, four Super Bowls, NCAA competitions and NBA All-Star games, along with national championships for everything from synchronized swimming to taekwondo. The YLC’s second big project was raising more than $500,000 to add lights to the Crescent City Connection in 1989, followed by a bumper sticker campaign in 1994 that created the slogan, “New Orleans: Proud to Call it Home.” Another significant project was the Festival of Fins in 2000 — the largest art display to ever hit the streets of New Orleans. For the festival, large fish sculptures were adorned with various materials by local artists, businesses and entrepreneurs and displayed at numerous locations around the city. An auction of the fish sculptures raised more than $550, 000 — money that was utilized by 65 local non-profit organizations. Probably one of the more visible activities of the YLC is the Wednesdays at the Square concert series. The YLC took over control of the outdoor
LEFT: In 1989, the YLC raised $500,000 to add lights to the Crescent City Connection bridge. RIGHT: “Proud to Call it Home” remains a slogan still seen today around the city. It was created by the YLC in 1994.
“Back in 1986, there were lots of things going on with the local economic environment — most of it not good. The YLC created a pro-active environment for this city’s young people that really empowered us to make a difference in our community.” - John Landrum, vice president for innovation at Intralox music series from the Downtown Development District in 2006 after having provided volunteers for the project since its inaugural year in 1999. The free live music festival has become an anticipated rite of spring. Spanning from March through May each year, it attracts an average of 6,000 attendees each week. This year alone, the series features noteworthy artists including Amanda Shaw, the Bucktown Allstars, Cyril Neville, Kermit Ruffins and Marcia Ball. “Wednesdays at the Square relies heavily on volunteers and sponsors for its success,” Powell says. “All of the food and beverages purchased at the concert, along with the corporate sponsorships, help keep the event free to attendees and raises money for the organization.” Powell says YLC fundraising efforts enable the support of all 15 volunteer led community service projects. “From sports-based youth development programs like RECreate and YLC Kicks, to an annual campaign for literacy with One Book One New Orleans, YLC has
LEFT: The YLC’s 1994 bumper sticker campaign was embraced throughout the city. RIGHT: Most know YLC as the force behind the free spring music concert series, Wednesdays at the Square — running since 2006.
ingrained itself into the fabric of the city.” Jodi Aamodt, an attorney with local firm Jacobs, Manuel, Kain & Aamodt, says her work with the YLC began in the 1990s. “I actually got into the YLC through the RECreate program,” she says. RECreate is a youth recreation program the YLC started to provide accessible recreational activities to kids in Central City between the ages of 5 and 14. “Every Saturday all these kids and young professionals would get together at the gym. There were different leagues, and people would sign up to be coaches. I remember [Congressman Steve] Scalise was a coach, so was Michelle Morial. The incredible thing was all the mentoring that happened and how it happened, so organically. There was nothing saying that you should take your team out after the games or tutor one of the players in math, it just ended up happening. We loved it. We were all young and I’m sure everyone was going out on Friday nights and staying out late, but we always made it to Saturday mornings.”
Today’s Leaders A seasoned community leader with 11 years in nonprofit management, specializing in strategic planning and volunteer coordination, Stephanie Powell only recently took up the reigns as YLC’s executive director. She was appointed in January of this year. Most recently, Powell served as field director of the Restore the Mississippi River Delta campaign, where she managed national and state-based collaborations among nonprofit, for-profit and governmental entities. “YLC offers a unique opportunity for young professionals to be civically engaged and to build their leadership skills through service,” she says. “We focus on initiatives that improve the quality of life in the Greater New Orleans area. If you want to grow in your career, have a positive impact in the community, and meet other young professionals interested in doing the same thing, becoming a member of YLC is a great way to achieve all of these goals and more.”
The organization also offers several professional and personal development-focused programs for members, including the Leadership Development Series, Grant Corps, YLC Toastmasters and a 9-session money management program called Financial Peace University. “One of the greatest traits of YLC is that there is something for everyone,” she says. “The social butterf lies and people new to town looking to network will enjoy our monthly happy hours and membership mixers. Those looking for leadership development will find an abundance of opportunities to take on leadership positions within our service projects and through YLC’s multi-week leadership development series.
“I was in my mid-20s when I became involved with the YLC. It was those early leadership roles that provided me with a critical boost of confidence and taught me the importance of not just professional, but civic accomplishments. All the civic leadership roles I have gone on to play — the YLC started all that.”
- Greg Rusovich, CEO Transoceanic Trading and Development Company “Additionally, individuals with limited time who still want to volunteer for only one day will find those opportunities as well through our YLC Assists program,” she added. “There are many ways to give back to the community through our organization.”
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mission statement of leadership development through community projects, YLC has continued to be a place for young professionals to work together to improve the quality of life in the city through volunteer service. “A focus on leadership development and community engagement definitely sets us apart from other young professional organizations,” Powell says. “Our board is active, engaged and passionate about the organization and our mission. Our alumni promote the organization and recruit their younger colleagues and mentees to join our ranks. Additionally, our volunteer project leaders play a critical role in YLC’s longevity and stability. To their credit, they lead 15 community service projects and engage thousands of volunteers annually.” Although what they tackle is already ambitious, Powell says there is always room to grow. “Individuals can come to the organization yearround to propose a project,” she says. “Those that have a sustainable project work plan and ample opportunities to develop leadership are ideal.”
Changing Lives
Celebrate Good Times
“Ten years ago, I decided I was tired of thinking of myself and only putting my efforts into work-related activities and I had heard of the YLC and its projects, so I started volunteering on a small scale and moved onto board positions,” says Calais Waring, YLC board president and independent marketing and public relations consultant. “It is exciting to meet new people through this organization and pitch in to help out the community that I love. Where else can you work with hundreds of diverse individuals from all walks of life all working toward the same goal — improving our city? I have made and maintained a lot of friendships because of my involvement with YLC over the years.” Waring says that the YLC has become a lifestyle for her and her family. “For example I was in charge of a campaign for YLC which involved filming different individuals reciting our tagline “Leave Your Mark” and I was filming in the early evening and brought my young son with me,” she says. “The next day I saw him in front of the mirror saying over and over again ‘Leave Your Mark.’ What a testament.” According to Waring, YLC has evolved over the years due to the development of more projects, a stronger staff and a significantly more diverse board across the entire spectrum in terms of interests, background, profession and socioeconomics. “YLC provides a deeper volunteer experience that is also fun for people to be a part of,” she says. “The organization has grown and continues to offer more ways to volunteer and support the city. YLC’s mission has not changed over 30 years because it was designed so simply and effectively.”
It’s already shaping up to be a pretty incredible year for YLC. The organization is planning on taking this anniversary year as an opportunity to look back and celebrate the impactful work they’ve done to benefit the Greater New Orleans community. “As part of our anniversary, we have set a goal of doubling our involvement by providing 30,000 hours of volunteer service this year,” Powell says. “We also plan to hold a leadership summit later this year.” “Our goal is to get large and small businesses across the city involved in volunteering service hours,” says Waring. “The 30,000 volunteer hour challenge is a fun way to entice everyone to roll their sleeves up and clock in a few service hours for a good cause.” The YLC is planning a big birthday party blow out on Saturday, Sept. 17 in conjunction with their annual Role Model Awards Gala, held at the Hyatt Regency downtown. Nominations for the 2016 Role Model Class recently closed and the lucky honorees will be announced early in May. Each year the YLC honors 25 Role Models who have distinguished themselves as leaders in the community. Past recipients of note have included Bryan Batt, Jerry Romig, Arthur Hardy, Tom and Rita Benson LeBlanc, Jim Henderson, Archbishop Philip Hannan, Lindy Boggs, Ella, Ralph and Dickie Brennan, Al Copeland, Fats Domino, Archie Manning, Emeril Lagasse, Allen Toussaint, John Besh, Ellis Marsalis and Sally Ann Roberts. “We have a cool army of communication professionals who are also members working on a 30th year anniversary campaign that we are rolling out,” says Waring. “The campaign will touch on YLC’s history, foundation, present activities and future plans. This group of volunteers is putting together something special to commemorate this achievement.” Waring says that she considers all the unpaid hours of work with the YLC a rewarding personal investment. “Even though I have been involved with the organization for 10 years it seems like a blink of an eye; the time has flown by so fast,” she says. “Volunteering is not always easy — it is work after all — but New Orleans is so worth the effort. Our kids, the real beneficiaries of all our work, are definitely worth it.” n
Moving Forward To what does YLC contribute its longevity and success? In a nutshell, the organization cites its focus on leadership development and community engagement. Building on its original foundation and 1: The YLC hosted the largest art display ever to hit the streets of New Orleans, Festival of Fins, in 2000. 2: The official launch of Festival of Fins. 3: Volunteers get out the city spirit in 1994. 4: RECreate, a youth recreational program for kids in Central City, has been operating for decades. 5: The first major accomplishment of the YLC was the creation of the Greater New Orleans Sports Foundation in 1988. Still going strong today, the organization has been responsible for bringing over 100 high-level sporting events to the city.
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Perspectives A closer look at hot topics in three southeast Louisiana industries
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Perspectives | Maritime & Ports
Muddled Mississippi The local maritime economy is struggling with a perfect storm of severe weather, soil runoff and lack of funds. By Chris Price
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he 230 miles of the meandering Mississippi River on either side of New Orleans are home to the world’s largest port system. But those who make their living on the river say they are experiencing the worst period for commerce in 40 years. Several severe weather events across the Mississippi River Basin, combined with a lack of funding to maintain a consistent depth in Southwest Pass, the channel that connects the mouth of the Mississippi River to the Gulf of Mexico, sent maritime transportation
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Photo Thinkstock
costs skyrocketing, reducing the region’s ability to compete globally and pushing business away from Southeast Louisiana. Millions of dollars have been, and continue to be, lost on its banks nearly every day, and the state is in an economic boondoggle, continuing to cut funding and causing the forecast for the future on the Mississippi to be as murky as the “Mighty Muddy” itself.
“The message heard around the world as soon as there is a draft restriction is that the Mississippi River is unreliable.” - Sean Duffy, executive director of the Big River Coalition Economic Engine Collectively, the five deep-water ports on the lower Mississippi River — New Orleans, South Louisiana, Baton Rouge, St. Bernard and Plaquemines — handle more tonnage than any other port in the world, providing billions of dollars in annual economic impact and supporting hundreds of thousands of jobs. Nearly 12,000 ships, including 6,000 oceangoing vessels, travel the lower river corridor annually, carrying 500 million tons of cargo and 700,000 cruise passengers. “The cargo carried on the Mississippi River has an estimated $135 billion annual impact on the nation’s economy,” said Sean Duffy,
executive director of the Big River Coalition, a collection of more than 110 maritime businesses, trade associations and port authorities in 10 states along the Mississippi River and its tributaries. “We are talking about a river system that connects 31 states and two Canadian provinces through the third-largest river basin in the world. It is a true maritime superhighway.” In a 2012 paper prepared for The Ports Association of Louisiana, The Economic Impact of the Ports of Louisiana, LSU economist James A. Richardson said the combined economic impact of the state’s ports, providers of port and vessel services, businesses operating within the ports, and cruise ship operations, most of it centered in the lower Mississippi River corridor, includes almost 73,000 jobs created and supported, personal earnings of $3.96 billion, and state and local tax collections of $517 million per year with approximately $289 million going to the state government and $228 million going to local governments. Factor in connected industries — agriculture, oil and gas, petrochemical and coal products, chemicals and related products, food and related products, paper, wood, and fabricated metals — which rely on the ports to assist in moving their goods, and the figures jump to almost 400,000 jobs and personal earnings of close to $20 billion, Richardson said. But since December, traffic on the waterway has been limited, and there is worry that a lack of maintenance on the shipping channel will impede the f low of the region’s economic lifeline.The restrictions are already affecting commerce and could have longterm consequences for the region as well. “It’s killing business,” Duffy said. “The message heard around the world as soon as there is a draft restriction is that the Mississippi River is unreliable.”
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The USACE Dredge Hurley in action, showing the pipeline that carries and deposits dredged sediment out of the navigation channel.
Stormy conditions In order for Louisiana’s ports to stay competitive in the global economy, Southwest Pass needs to be constantly dredged by four vessels to maintain a depth of 47 feet. But two broke down this winter, just as unseasonable f loods in the upper Mississippi River Basin pushed record amounts of water and silt south. When the U.S. Army Corps of Engineers, which oversees work on the lower Mississippi, put out bids for additional dredgers to help keep the channel open, those in the region were already contracted out to other ports for wintertime work. With just two dredgers working, the channel began to shoal, or close in from the banks and the bottom. Soon ship traffic was restricted to 43 feet, then to 41. “We need approximately $131 million a year under normal river conditions to keep the channel open (at 47 feet),” said Michael R. Lorino Jr., president of the Associated Branch Pilots, mariners who guide commercial ships through Southwest Pass between the gulf and river. “We receive around $85 million a year. We’re always looking for additional funds. So when you have an extraordinary river experiencing conditions that never happen, that throws you even further behind. “The high river that we experienced at the end of 2015 was the 58
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first time that we’ve had water like that in the month of December. It caused major problems, and we’re still trying to recover from those problems today.” The timing of the increased flow couldn’t have been worse. Just as the state was suffering the effects of physical storms, it was hit with an economic one. In January, newly inaugurated Louisiana Gov. John Bel Edwards revealed the state was facing a $900 million deficit in the current budget cycle and a $2 billion gap in the next fiscal year that also has to be closed. The Corps had seven dredgers working though March to bring the channel back to 43 feet, and five vessels have worked to maintain it since. But as budgeted funding dwindles, the number of dredgers will again be reduced to four this month.
Docked Pay Any time draft restrictions are put in place on the river, money is lost, said Finn Host, executive vice president at T. Parker Host, a full-service ship agency that handles dry bulk, breakbulk, chemicals, livestock, cruise, and container vessels. Often a company makes a deal for commodities, like grain, soybeans, or coal, up to a year in advance of its shipment and plans to be able to move a set amount of goods at a set cost. Now, operations Photo by Jim Pogue
are in flux, causing costs to increase as other vessels are needed to ship products. In some cases orders have been partially filled, with cargo that has been paid for left on the dock in New Orleans. “Say a company has scheduled a vessel with a 47-foot draft to move 70,000 tons of material. But when the draft is reduced to 43 or 41, the same ship can only load around 55,000 tons,” Host said. “If that ship is moving from here to Europe with its cargo of coal it may cost $1.5 million. Divided by 70,000 tons that’s about $21.43 a ton. When the ship’s capacity is reduced to 55,000 tons, all the sudden the costs are going up to more than $27.27 a ton.” Additionally, these ships, to move in and out of port, have to pay the pilots, tugboats, line handlers, and so on around $200,000. Because of the high river, currents and all the issues they’re having to pay $300,000 to $400,000 for the same service, he said. “There are tight margins with these commodities around the world. All of a sudden we’re adding on all these extra costs that they had not planned on, and it’s substantial,” he said. “They’re only making a few dollars on some of these cargoes, and then with additional costs for these goods that have already been booked and paid for, they’re now losing money.”
TURNIng to other markets/ports With the prospect of shipping through New Orleans resulting in reduced margins or possibly a loss, the future of local maritime commerce, indeed the local economy, could be affected if it is perceived that shipping through Louisiana is not as reliable or cost effective as it once was. There is palpable worry that the longer the channel is restricted the more business will be pushed away from not only Southeast Louisiana but most of the interior United States as well. “We’re being priced out of potential cargoes and opportunities on the river because of this,” Host said. “April and May are usually about the time of year that we start to deal with high river issues, and we’ve already been through three months of the worst of the worst of it.” Lorino said the ports in south Louisiana combine to ship roughly 75 to 80 percent of the nation’s grain harvest overseas. He worries that shippers will look to other ports – Houston, Mobile – or other markets in South America, like Brazil and Argentina, to buy grain and soybeans. “We have no extra dredging, more high water coming and shoaling compounding,” Lorino said. “It’s a recipe for disaster.”
Foggy outlook Unfortunately, none of the stakeholders seems to know when the situation will improve. Duffy says a 100-year El Nino event will continue to inundate the Mississippi River Basin with precipitation, continuing the runoff that feeds shoaling. “A lot of people are asking when we’ll return to normal, which is 45 to 47 feet in Southwest Pass,” he said. “There’s no guarantee that that will happen this fiscal year and maybe not this calendar year.” Others are adopting a more optimistic view. “At the end of March the river was falling,” said Chris Kitsos, T. Parker Host’s Louisiana branch vice president. “We’re hoping for a normal water level by the beginning of May. (If dredging can increase) it may be the end of June before 47 feet (of depth in Southwest Pass) is reached again.” Still others aren’t anticipating positive change soon. “We have no idea when we will get to 47 feet again,” Lorino said. “We’re trying to maintain 43 feet. We’re not going to go higher for a while. Truth is, we hope we don’t have to lower it again.” n
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Perspectives | Banking & Finance
Fidelity Bank supports American Heart Association walks throughout their communities.
Banking on Our Future Local banks have found an array of ways to invest back into their communities. By Suzanne Ferrara
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here is no question that the profound love and pride of the community in which we live runs deep in the veins of the people of Greater New Orleans. It is innately part of who we are, and it’s been ingrained in our souls for centuries. This sense of community even extends to local banking institutions. “[Giving back] is extremely important because the vitality of our community is dependent upon the involvement of both businesses and individuals actively supporting organizations and initiatives focused on improving our communities,” says Duane Abadie, the chief banking officer with First Bank and Trust. The same sentiment comes from Bob Tusa, market president of
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the Greater New Orleans Home Bank. “Home Bank is committed to growing our community by investing in our neighbors and the businesses we serve,” he adds. One example of this is the $400 million in development lending and investments issued since 2005 by JPMorgan Chase in New Orleans. Liza Cowan, the south region executive for JPMorgan Chase Global Philanthropy, says the company has provided financing to rebuild more than 2,500 affordable housing units in the city. In addition, Chase helped restore the legendary Saenger Theatre with an $8 million New Market Tax Credit investment. “Since Hurricane Katrina,” says Cowan, “JPMorgan Chase has
Photo courtesy of Fidelity Bank
donated more than $36 million to nonprofits working in Louisiana.” Making the American dream a reality for people who never thought they would own a home is also key for First NBC Bank, which strives to develop the community. “We are a big proponent and serve on the board of the Neighborhood Development Foundation (NDF),” says Ashton J. Ryan Jr., First NBC Bank president and CEO. “NDF is the oldest nonprofit in New Orleans and teaches residents how to become homeowners.” First NBC Bank also supports Junior Achievement in area schools, a program that provides the building blocks of financial literacy. “It teaches youth at an early age to be self-sufficient and to develop an entrepreneurial mindset,” he says. The banks support a variety of local and national groups.
“The communities we serve are the heart of everything we do, and we take a leading role in building our partnerships to strengthen our communities.” -Margaret Saer Beer, director of community relations for IberiaBank “First Bank and Trust (FBT) supports many organizations and initiatives such as Junior Achievement, American Diabetes Association and Children’s Hospital,” says Abadie. “Our associates take active roles in New Orleans Entrepreneur Week, Habitat for Humanity, Young Leadership Council, Kingsley House, Youth Empowerment Program and New Orleans Center for Creative Arts, to name just a few,” says Margaret Saer Beer, the director of community relations for IberiaBank. But Beer says those examples, as impressive as they are, are just pieces of a grander scale of efforts to improve our community. “IberiaBank’s strong sense of community is an integral part of our mission,” she adds. “The communities we serve are the heart of everything we do, and we take a leading role in building our partnerships to strengthen our communities.” The mission to improve the quality of citizens’ lives rings clear with Home Bank’s Tusa. “From our team building homes with Habitat for Humanity to teaching children about financial literacy through Junior Achievement, we recognize that organizations such as these are working to impact the community in a positive way,” he says. Fidelity Bank is putting the question of which organizations it will support in the hands of its customers — asking those that open new checking accounts to choose from a list of nonprofit organizations. Upon account activation, those organizations will receive donations from Fidelity. And that’s just one example of Fidelity giving back. “One of the most visible ways we give back is our partnership with the Louisiana Philharmonic Orchestra and underwriting their annual Concert in the Park series,” says Tammy Gennusa O’Shea, corporate brand manager for Fidelity Bank. “This allows countless local families to enjoy a nice evening and a quality LPO production at our beautiful parks for no charge.”
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Giving Back Pays All of this philanthropic involvement and financial lending is a major factor in the financial success of the banking institutions themselves. “Generally, our financial success is tied to the communities we serve, so we are keenly aware of our responsibility to help and support them the best way we know, which is through our ability to fund worthwhile projects,” says John Zollinger, the Northshore marketing president for Home Bank.
“This is not to underestimate the need for fundraising and supporting organizations through cash donations, but volunteerism and having ‘boots on the ground’ can often provide a more meaningful experience for the individual and the organization,” - Tammy Gennusa O’Shea, corporate brand manager for Fidelity Bank Giving back to the community, he says, also promotes trust and loyalty from the customers they serve every day. “Our bankers work and live in our community,” says Zollinger. “We love this area, and by working together we can make a real difference. We take so much pride in helping businesses and families thrive.” O’Shea adds that this relationship between bank and community is not formed solely from monetary assistance. “This is not to underestimate the need for fundraising and supporting organizations through cash donations, but volunteerism and having ‘boots on the ground’ can often TOP: “We plan to continue to grow our service to the community, and hopefully that will result in a stronger metropolitan community,” says Ashton J. Ryan Jr., First NBC Bank president and CEO. BOTTOM: IBERIABANK associates at the Preservation Resource Center’s October Build 62
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Photos courtesy of First NBC Bank and IberiaBank
Giving back helps banks promote trust and loyalty between the insititutions and the communities they serve.
provide a more meaningful experience for the individual and the organization,” she says. “At Fidelity Bank, we track employee community involvement and offer paid time off to participate in causes that are important to each individual employee.” Fidelity, continues O’Shea, prides itself in remembering who is truly in charge; that, she says, helps the bank frame and shape communityminded decisions. “As a mutual bank, we are owned by our depositors and not stockholders, so we understand when we give back we are giving to our community. It is important to our depositors and employees who work and live here, so it is important to us.” Over the past decade, as far back as Hurricane Katrina, the banking industry has played a role in the revitalization efforts of Greater New Orleans. Carrying on that philanthropic tradition is a responsibility, one that is relied upon by many facets of the community. “Our nonprofit partnerships continue to deepen our impact across the community as we meet our goal of improving the lives of others,” says Beer. So how will the relationships between banks and the Greater New Orleans community evolve? Where do officials see this 10 years from now? “As far as changes, I think there continues to be growing attention to the role we play in the success of our communities,” says Abadie. “At the end of the day, community involvement is just good business.” Ryan with First NBC Bank echoes those thoughts. “We plan to continue to grow our service to the community, and hopefully that will result in a stronger metropolitan community.” Tusa agrees. “Home Bank has and will continue to invest and lend money to projects that help improve the quality of life for the citizens of our community.” Those projections make sense if the Greater New Orleans area is, as some bank leaders believe, on the cusp of an economic evolution. “We believe New Orleans stands at a critical moment, with a tremendous opportunity to shape a bolder and more inclusive future. We also believe that we can work together with our partners in New Orleans to create pathways to opportunity so that the renaissance taking hold in New Orleans will be a model for cities around the world,” says Cowan. n BizNewOrleans.com MAY 2016
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Perspectives | Real Estate & Construction
Zoning Issues New Orleans’ new Comprehensive Zoning Ordinance could stand some adjustments. By Pamela Marquis
In advance of the Sixth Annual Economic and Real Estate Forecast Symposium on October 11, Biz New Orleans spoke with two members of the board of directors of the Commercial Investment Division (CID) of the New Orleans Metropolitan Association of Realtors, President Paul Richard and Director Snappy Jacobs, about their opinions on New Orleans’ Comprehensive Zoning Ordinance.
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he conflict between city planning and commerce is nothing new. In 1916, New York City adopted the first citywide zoning regulation as a direct reaction to the construction of the Equitable Building, one of the country’s first skyscrapers. When it was completed in 1915, it was the largest office building in the world in terms of floor space — boasting 1.2 million square feet on a plot of less than 1 acre. The building was created without setbacks. While many lauded the building as a miraculous structure that was good for commerce and New York City’s future, not all were thrilled. Neighbors complained about blocked ventilation, increased traffic, strains on the local transit facilities, and potential difficulties for firemen. And worst of all for many in the neighborhood, it created a shadow that stretched almost a fifth of a mile, cutting off direct sunlight to many of Broadway’s buildings. As a result, surrounding property owners, claiming a loss of rental income due to the new building, filed for a reduction in the assessed valuations of their properties. The result was the landmark 1916 Building Zone Resolution, a 12-page ordinance that established three districts — or zones — wherein certain uses were allowed and others prohibited. Today, all major cities, with the exception of Houston, have a comprehensive zoning ordinance or CZO. Photo Thinkstock
The Long Road to New Orleans’ CZO In the wake of Hurricane Katrina’s devastation, New Orleans began efforts to pass a new CZO — something that had not been done since 1970. “The old ordinance was a product of the ’70s,” says Richard. “It had more of a suburban feel to it.” According to a 2015 report by the Data Center, an independent resource for Southeast Louisiana, the CZO had been amended so many times that it was full of inconsistencies. It was also heavily inf luenced by political cronyism. The last effort at a comprehensive revision of the zoning ordinance resulted in a 2002 draft that was not adopted. After Katrina, with so many infrastructures, homes and businesses destroyed, many believed it was critical to start the process again. According to the city’s website, “The resulting ordinance will give clear direction and a higher level of predictability to all users of the ordinance — from neighborhood residents to developers.”
“The long-term CZO is a good thing for the city. It takes into account the texture of neighborhoods and the demographics and moves us towards sustainability, but it’s not without some problems.” - Paul Richard The New Orleans City Planning Commission, a nine-member citizen board appointed by the mayor and approved by the City Council to provide analysis and recommendations to the City Council on matters dealing with the present and future development of the city, was integral in creating the new CZO. In accordance with the goals and policies of the city’s Master Plan for the 21st Century following Hurricane Katrina, the commission and New Orleans’ citizens crafted the ordinance, guided along the way by community meetings, professional guidance, and the consulting services of Goody Clancy & Associates. The process took 10 years, ending on May 14, 2015 in a 10-hour City Council meeting that included many last-minute amendments. The new CZO went into effect on Aug. 12, 2015. “The first five years were spent primarily in the recovery planning phase, and the second five years were spent dealing with complexities and conf licts of the comprehensive zoning process,” states the 2015 Data Center report. “The challenges were made more daunting by the fact that before the storm, the city lacked a history of strong traditional urban planning practices. As a result, most processes had to be constructed from scratch.” The city’s Plan for the 21st Century, commonly referred to as the master plan, is designed to take New Orleans through the year 2030 and is primarily focused on recovery from the effects of Hurricane Katrina and the subsequent failures of the levee BizNewOrleans.com MAY 2016
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Following Hurricane Katrina, it was determined that a new comprehensive zoning ordinance would help “give clear direction and a higher level of predictability to all users of the ordinance — from neighborhood residents to developers.”
systems, but the plan also addresses the city’s long-term future. Additionally, the master plan and the CZO endeavor to incorporate best practices from city plans from around the United States in terms of transparency, reliability and due process. The city states that the “new plan prepares the city for future disasters, adapts to a changing natural environment, creates f lexible and reliable systems and invests in economic development.” The current CZO has a wide reach and is very comprehensive — with recommendations on every major aspect of the city, including culture, tourism, transportation and economic development. “The long-term CZO is a good thing for the city,” says Paul Richard, a member of NAI Latter & Blum’s Commercial and Investment Real Estate Division and president of the Commercial Investment Division (CID) of the New Orleans Metropolitan Association of Realtors. “It takes into account the texture of neighborhoods and the demographics and moves us towards sustainability, but it’s not without some problems.”
Some feel that these impediments to development are causing other parishes to get all the new business. “Right now much of the big commercial developments for retail are leaving or moving into Jefferson Parish,” says Snappy Jacobs, CCIM Real Estate Management. “It’s costing more and more to do business in New Orleans. And we want new businesses and developments here because they create jobs and generate sales taxes. We don’t want that business to go to other parishes.” Both Jacobs and Richard believe that because of the current CZO, sellers are reluctant to provide the time and money required to complete the process. This is causing a trend where developers, brokers and investors are trying a different tactic. “We are going about it backwards now because we are looking for the zoning rather than using the best location for new retail developments,” says Jacobs. Both say that many in their field believe it is getting harder and harder to find good locations.
“Right now much of the big commercial developments for retail are leaving or moving into Jefferson Parish.” - Snappy Jacobs
“...it’s costing too much and taking too long to create new projects.” - Paul Richard Zoning Challenges Impeding Growth The master plan and CZO affect every citizen in some way but perhaps have their biggest impact on the commercial real estate community. The CZO includes lists of permitted land uses for each of the city’s zoning districts, in addition to height limits, setback requirements, urban design standards and operational rules. “The biggest challenge is that to conform to the CZO becomes a time issue,” says Richard. “Because of all the regulations and the time it takes to go from acquisition to occupancy, it’s costing too much and taking too long to create new projects.” 66
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Base Floor Elevation Issues with base f loor elevation (BFE) — included in the CZO — are also impeding developers. FEMA defines BFE as “the computed elevation to which f loodwater is anticipated to rise during the base f lood.” The relationship between the BFE and a structure’s elevation determines the f lood insurance premium. Richard says he knows there are certainly benefits to these standards, but says conforming to them adds huge hidden costs to many projects. He says to determine a BFE a state-licensed surveyor, architect or engineer completes and issues an elevation certificate. Depending on the location and the complexity of the job, the cost of a surveyor can vary from $500 to $2,000 or more. “Because of all the extra steps with legal, engineering and such, Jacobs says that estimating BFE creates extra work, which signals to some a bad investment. Photo Thinkstock
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“This is a dense city. But here’s the thing — that density is what developers are looking for because the more people in the area, the more the potential that they’ll shop at your retail outlets.” - Snappy Jacobs Limited Inventory The other challenge, the men say, is that New Orleans’ limited inventory is forcing the prices up on all properties and projects. Many in CID believe the only way to create more density and more business is to build up, which Richard and Jacobs say many neighborhood associations oppose. “This is a dense city,” says Jacobs. “There’s 4 miles between the river and the lake. That’s a very little space with a whole lot going on. But here’s the thing — that density is what developers are looking for because the more people in the area, the more the potential that they’ll shop at your retail outlets.” So What’s the Answer? “As a city we have to achieve some level of balance with the CZO and how it regulates development,” says Richard. “There must be a better balance to address the needs of the developers with the needs of the neighborhoods. This isn’t just a New Orleans dilemma. According to the website 68
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New Orleans’ limited inventory is forcing prices up on all properties and projects, causing some to say the answer lies in building up, not out.
Community Builders, developers and commercial real estate agents across the country are plagued by zoning rules that seem to be increasingly misaligned with what consumers and business owners want. In a 2007 article published in the University of Pittsburgh Law Review, Eliza Hall makes a concise argument identifying the realworld impacts of conventional zoning: “Conventional zoning adversely impacts the economy in several ways: by distorting the real estate market; imposing massive infrastructure costs and associated tax increases; increasing the cost of housing and transportation; and reducing the ability of lower-income people—which includes, of course, not only those we normally think of as ‘the poor’ but also many artists and budding entrepreneurs—to find work or create self-employment. Conventional zoning distorts the real estate market in so many ways that it manages to simultaneously conflict with conservative, libertarian, and liberal values.” Jacobs believes that the strides New Orleans has made in our city plan post-Katrina are certainly going in the right direction, but he thinks the CZO still needs more clarity. “I think we can agree that it’s hard to make a one-size-fits-all ordinance and keep a framework that isn’t completely Draconian,” says Richard. “The CZO needs to be a dynamic document. It would be good as we begin to phase in all these new changes if there could be a more transitional process that eases us into the change. We are hoping we can find a way to balance the CZO, one that exhilarates the process and decreases the friction that it takes to move projects forward and, most importantly, helps keep development in Orleans Parish.” n
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2015 Commercial Real Estate Standouts a few of the top prizes awarded at the CID’s 23rd Annual Achievement Awards, held April 8.
Top Retail Sale $13,000,000 The Mall 8700 West Judge Perez Drive in Chalmette Seller: Ray Peacock Purchaser: Chalmette Management Date: April 17, 2015 Agent: Kenny Hurst, CCIM The Stevens Realty Group
Top Industrial Sale $7,750,000 1420 Sams Avenue Seller: COLUMBUS NOVA Purchaser: 1420 Sams Ave., LLC Date: May 29, 2015 Agent: Daniel P. Poulin, CCIM, SIOR Industrial Development & Brokerage
Top Office Sale $4,575,000 1 Seine Court (since changed to 3401 General De Gaulle) Seller: Hertz Westpark Purchaser: Westpark Holdings Date: August 2015 Agent: Andrea Arons Huseman, CCIM Corporate Realty
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Guest Viewpoint
Don’t Wait, Automate A look at technological solutions for a safer, easier, more efficient workplace.
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Greg Rhoades is the director of marketing for Leviton Energy Management, Controls, & Automation.
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t’s heating up in New Orleans, and now is the time to think about making your business location cooler. I don’t mean air conditioning; I’m talking about adding the cool factor using the latest technology, some of which is designed and produced right here in New Orleans! Don’t you want to control your business locations from anywhere in the world? Whether your workplace is located in the small guest cottage out back, a luxurious penthouse, an office park, a strip mall or a sprawling industrialtype factory, there are many solutions available to create an intelligent, sustainable office space to meet any budget and building type. This can include focuses on energy management, safety and entertainment, or a mix of all three to increase convenience, save energy, and protect people and possessions. A new TV series airing now on Lifetime, “Office Spaces,” uses new technology from a wide variety of manufacturers to transform a large, empty facility into a cutting-edge workplace, which quickly progresses, episode by episode, into a state-of-the-art office. The conference areas feature
intuitive touch screens to control the boardroom AV equipment, the parking lot has an electric vehicle charger to offer their guests, and the entire property can be controlled from an iPad in the owner’s office — from the temperatures and lighting, to the AV equipment and security features. Just like in the TV show, you too can liven up and take control over your office space without breaking the bank. Whether your office is brand-new or just due for a retrofit, here are some tried and true tips for improving your workplace and adding some intelligence. Light it Up Lighting control is a logical entry point for smartening up your office. It reduces energy usage, increases safety and can improve daily working conditions. First, ensure that you have proper fixtures placed around the premises. Studies show that a well-lit property is less attractive to bad guys. Next, replace your “dumb” light switches with something that you can schedule or time, so that Photos courtesy of Leviton
these important lights come on and go off at a preset time, maybe the same time every day. Add your company signage to that mix as well, so that your customers can find you when they need you. Install occupancy sensors in offices, warehouses, production areas, restrooms, closets and other storage areas to turn off lights automatically in unoccupied areas, saving energy. A simple light switch with a built-in occupancy sensor should do the trick in these spaces. Once you’ve added smart light switches and power receptacles, you should create a schedule around your business. Every morning at a certain time, your office can “wake up,” automatically activating dozens of light switches, turning on small appliances, adjusting temperatures, turning on AV equipment, unlocking doors, opening the window coverings and so much more. Pressing one button on the way out the door each night is much easier than running around ensuring everything’s turned off, only to run around in the morning to turn it all on again. It’s easy to enact a lighting scene throughout the entire property as well, sending different commands to multiple light switches at once to get ready for a presentation in the office or a social event at the restaurant. Wrestle the Hogs Now that lighting is covered, let’s get a handle on high-draw devices (also known as energy hogs) like compressors, generators, pumps and motors. Depending upon your business, you could save some serious energy just by shutting off these devices when you don’t require them. A great case study example is a car care center that outfitted their office with only a few controls and light switches — a very affordable installation. They also began turning off every piece of heavy-duty equipment when they leave for the evening, most notably the air compressors, which leaked air all night. They’re now seeing significant energy savings each month while better managing the temperature and humidity in their spaces. Remote access is important as well — reliably providing control of your property from anywhere in the world. Take, for instance, a Nebraska restaurant franchisee who was operating several locations within a 60-mile radius. The owner previously worked out of his vehicle, traversing the state and visiting each store to check the temperature or ensure the outdoor sign was activated. Now, from the comfort of his home office, he sits on his couch and uses an automation app to monitor and control all of his restaurants, bringing up the live surveillance camera footage, dimming a light, turning on music in a certain area, or adjusting the temperature in the lobby or food prep areas. More commonly, he does nothing at all, letting the smart facilities run the scheduled programs based on the times and days. For another energy-conscious upgrade, you can install an electric vehicle charging station. Whether you’re offering the charge for free to an employee or paid to your customers, you can easily deliver a little juice to keep people moving in their electric vehicles. Avoid a Good Shock Being smart isn’t just about using an app to control lighting and temperature in your office space, it’s also ensuring that your customers and coworkers are safe throughout the day. GFCI protection is required for power outlets in all wet or damp locations such as bathrooms, kitchens, garages, outdoor areas, rooftops and locker rooms. Choose a brand that includes tamper-resistant shutters, pilot and guide lights and weather-resistant construction for outdoor locations. Protect your electrical and electronic equipment from voltage spikes and surges (transients). These surges are not only generated from outside the facility (e.g. lightning or utility switching), but also inside the facility (motor load switching). Implement an effective surge
protective network — including service entrance, branch and point-ofuse protection — that protects the entire facility. Check Yourself Now let’s talk security. Do you need a full-blown security system that’s professionally monitored and sends the police each time the alarm activates? Perhaps, and there are plenty of smart solutions out there that tie into building management systems, including Leviton, that can coordinate wireless security sensors and heavy-duty access control to protect the property completely. Keep tabs on products and personnel using video surveillance cameras and an app. Simply adding a front door intercom and a touch screen inside allows the receptionist to buzz in a guest or dial the police in case of emergency. For small offices and mom-and-pop retail stores, many owners are self-monitoring, meaning they open their app to check the parking lot camera when they hear something outside, they review an event log to see who entered the building last, and they receive immediate security or energy alerts via text message or email. Many systems provide this functionality with a monthly fee attached, while others build the cost into the hardware equipment. Regardless, unlocking the door remotely is really handy for deliveries, and restricting access to a cleaning staff or maintenance person is easy. AV advances Really want to simplify business operations and impress your customers? Incorporate distributed audio and customized AV automation within conference, meeting and lobby areas. Press the presentation button to spring a single room or entire facility into action. Or, if you’re a restaurant, lounge or bar, ditch the dozens of remote controls and give your manager an iPad that easily works with the various TVs and cable boxes, even placing your company logo on the touch screen interface. These AV solutions are just as ideal for sports bars as they are hotel lobbies and office conference rooms. Place a touch screen on the boardroom table to manage the room or the complete facility. Share tunes with Bluetooth using built-in speakers in the wall or ceiling for a professional appearance, and let your chef listen to his favorite music while the VIPs on the balcony enjoy different tunes than the lively restaurant guests inside. Being smart can be affordable and fun, too. Take a USB receptacle and replace your standard power outlet in the wall. Now you have two bonus USB inputs to charge an iPad and a smartphone while retaining your two standard outlets for table fans or desk lamps. Tying it All Together Every day, all across the globe, contractors and integrators install the wiring devices, network infrastructure and automation solutions offices need to power their facilities, ensure reliable data connectivity and create efficient, compliant environments. With the wide variety of smart devices hitting the marketplace this year, the next step is to locate an educated contractor that can provide the complete answer for today’s smart building requirements, whether it’s a new facility or a renovation. Walk through the workplace and identify your specific needs. Then let that individual propose a few options for automating your workplace, or even simply adding affordable safety and convenience features you may not have previously considered, such as LED lighting, USB power receptacles and Bluetooth audio systems. What are you waiting for? Smarten up your office today! n
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PUBLISHER’S NOTICE: All real estate advertised herein is subject to the Federal Fair Housing Ace and the Louisiana Open Housing Act, which make it illegal to advertise any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. For more information, call the Louisiana Attorney General’s Office at 1-800-273-5718.
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L U X U R Y
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Great Offices
French Quarter Realty’s satellite office showcases the artful side of its small spaces
By melanie warner Spencer Photography by Sara Essex Bradley
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AT A GLANCE Company name: French Quarter Realty Address: 713 Royal St. Office completed: August 2013 Builder: Mayer Building Co. Architect: none Interior designer(s): Katie Logan Leblanc and Jensen Killen of Logan Killen Interiors Furnishings: Logan Killen Interiors Square footage: 683 square feet Budget: $30,000 for furnishings, plus construction cost Main goal: The client wanted a satellite office where a couple of agents could work, meet with clients and casually entertain. Biggest challenge: Giving a small space a high level of function. Standout feature: The designers say the Avico Suspension Lamp fills out the space and ties together the components of the space. The lamp, coupled with the black ceiling, make the design pop.
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he Royal Street office of French Quarter Realty is an inviting mix of casual, yet chic; homey, but still commercially functional. However, it wasn’t always that way. Owner Michael Wilkinson tasked Jensen Killen and Katie Logan Leblanc of Logan Killen Interiors with transforming the disjointed and diminutive 683-square-foot space into a satellite office where a couple of agents could work, meet with clients and entertain. The space also 78
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would serve as a gallery of sorts for Wilkinson’s extensive art collection. Killen and Leblanc set forth to uncover the bones of the centuries-old building, which were buried beneath decades of ill-conceived redecorations, renovations and reconfigurations. They then began stripping away the bad and highlighting the striking original architectural details. “All of these things really set our
intention: To create a clean, open space that felt part office, part art gallery and part residential,” says Killen. The designers painted the exposed brick walls white to highlight Wilkinson’s art collection and evoke the gallery vibe. Wideplank, white oak wood floors and a mix of contemporary, modern, Danish and midcentury modern furnishings in a variety of finishes from local and national retailers, such as Modern Market, Uptowner Antiques, Hive Modern, Restoration Hardware and West Elm, warm up the space and soften the harder edges of the architectural elements. The biggest challenge, however, was working
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with the size of the office. “It’s a small space, and we needed it to function in a variety of ways, all while staying as open as possible,” says Leblanc. “So, we installed a low partition wall between the front lounge area and main office space behind it to provide some privacy for the agents, and installed a Plexiglas panel on the upper portion of this wall to maintain a visual connection to the street.” The designers say that initially, Wilkinson wanted a three-desk setup in the main office area, but the layout didn’t work. By pulling the third desk out into the area by the front doors, it created a reception setup. Another goal was to better incorporate the conference room into the space. The duo says that to achieve this, they kept the walls at 8 feet, so the build-out felt more like a component within the space, instead of a separate room.
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“This allowed the ceiling to be continuous, keeping the lofty, gallery feel we were going for,” says Killen. The decision to paint the ceiling black was twofold: It highlighted the architectural details and added contrast to the otherwise clean, white palette. The overall palette of the space was inspired by the client’s art collection, which he plans to rotate at his discretion. Concrete and wood, metal and upholstered goods, brick and glass come together to create texture and visual interest. The arched windows and doors are trimmed in black, at once complementing the black ceiling and drawing attention to the architecture, as well as outside into the bustling French Quarter. The project is a successful example of how to marry Old World elements with modern sensibility and flair, and what your real estate agent really means when describing a property as “cozy.” n
1- French Quarter Realty’s 683-square-foot space on Royal Street, which features gallerystyle white walls, also serves as a gallery of sorts for owner Michael Wilkinson’s extensive art collection. 2- Designers Katie Logan Leblanc and Jensen Killen of Logan Killen Interiors worked to give the small space a high level of function. Wide-plank, white oak wood floors and a mix of contemporary, modern, Danish and mid-century modern furnishings in a variety of finishes warm up the space and soften the harder edges of the architectural elements. 3- Another goal was to better incorporate the conference room into the space. The designers say to achieve this, they kept the walls at 8 feet, so the build-out felt more like a component within the space, instead of a separate room. 4- The black ceiling added continuity and makes the design pop while drawing attention to the architecture of the building.
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Q&A
“We worked so hard for the first flight and we were celebratory afterward. Then, at 3 o’clock in the morning, it hit me that we had to do it again in a few hours.”
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Photo Cheryl Gerber
We Have Lift Off From frustrated business traveler to owner of an airline, Trey Fayard, CEO of GLO Airlines, shares his turbulent path to success. By Jennifer Gibson Schecter | Photography Cheryl Gerber
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raveling between midsize Southern cities can be a challenge for business travelers. Driving takes up valuable time, and time is money. Very few airlines offer flights between hubs like New Orleans, Memphis and Little Rock, but a new startup has changed that, and in the process, brought increased regional business to Louis Armstrong New Orleans International Airport. GLO airline offers daily nonstop f lights from its home base in New Orleans to Little Rock, Arkansas; Memphis, Tennessee; and Shreveport, Louisiana. Founded in 2013 by Louisiana native Calvin Clifford “Trey” Fayard III, its inaugural f light took place in November 2015 from New Orleans to Little Rock’s Bill and Hillary Clinton National Airport. Since then, GLO has added more itineraries, and after only six months of operations, the company is already looking to add more. CEO Fayard seems well-suited to this venture. He holds a bachelor’s in political science from Southern Methodist University; studied shipping, trade and finance at City University London; and also holds a J.D. from Tulane University. He spent many years as a “road warrior” during his early career and felt the frustration and need for direct regional flights firsthand. Having just stepped off a flight, he took the time to share his story with Biz New Orleans.
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Biz New Orleans: What does a typical day look like for you?
specific challenge you are especially proud of overcoming?
Trey Fayard: I’m up at 4:35 a.m. I check overnight emails and bookings, take a quick shower and I’m off to the ramp at MSY (Louis Armstrong New Orleans International Airport). I check in with maintenance and see how the ops are shaping up for the day. Then I check in with our team, map out the day and take it as it comes. There is no such thing as a ‘normal’ day in the airline business. There is always something going on that you really did not expect. Although the longer we do this, the more that is not unexpected because we pretty much have experienced it all. I try to get to sleep after the last flights come in and the schedule closes out for us.
TF: Frankly, going into this, I had no idea about getting into this particular business. It’s like juggling eight balls at once and not knowing how to juggle. The regulatory limits are tremendous. Setting up the operations when you start from scratch, it’s pretty overwhelming. Looking back at it, we had about a couple hundred items on our checklist, and that list just ballooned. The support of the employees and partners has been critical. People going above and beyond has been an amazing part of the process. The biggest challenge is the sheer scope of having to do it every day. We worked so hard for the first flight and we were celebratory afterward. Then, at 3 o’clock in the morning, it hit me that we had to do it again in a few hours. Another challenge is putting together the logistics and all of the moving parts. At the end of the day you are delivering a service to customers, and we want to deliver a high standard to our customers. We are trying to consistently deliver on our value proposition and provide a high level of service that our
Biz: What inspired you to found GLO in 2013?
TF: I lost my mind, I guess! Just kidding. It was actually a factor of, ‘I can’t get there from here’ and it started making me look at how to solve that issue. And I was just such a good lawyer, I had to start an airline. Biz: What were the challenges in starting your business, and now running it? Is there one 84
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“Looking back at it, we had about a couple hundred items on our checklist, and that list just ballooned,” says Fayard.
customers have come to expect. I really cannot imagine a harder business to get started. They always say hotels and restaurants are the toughest (businesses to start). If that is the case, I feel like I could open 10 hotels and a chain of restaurants after this whole experience. Biz: What was your experience of the first flight in November 2015? How did you feel during it?
TF: It was a gorgeous fall Sunday in Louisiana. It was an exciting day here and the same in Little Rock. It was cloudy early in the day and then the weather cleared. We had a full aircraft of 30 happy people who landed on time in Little Rock. I felt total elation! And a sense of achievement, I guess. It was great to share it with friends and family, and of course, our paying customers. Biz: How did you choose the name GLO?
TF: GLO is what happens when you have an idea, a spark in your imagination if you
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will, and you hope that spark starts a flame. Hence, it GLOs. Biz: What is Corporate Flight Management and how does your partnership with them work?
TF: Corporate Flight Management, or CFM, is our operator of the aircraft. They are responsible for flying the planes as our schedule dictates. They are great partners and run an outstanding operation in their own right. It has been a great partnership and one we hope to carry on for years to come. Biz: What has been your biggest achievement to date with GLO?
TF: Well, I got married in the middle of this whole thing so that was really wonderful. As far as GLO, getting the first flight off the ground was pretty amazing. All of a sudden it hit me as we took off from MSY that ‘Wow, we did it.’ But then the reality set in that we had to do it all again the very next day! Our whole team spent years building to flight No. 1, and that was a hell of an achievement. But it was the reality that it wasn’t just one flight, and we had many more ahead of us. Biz: What are your plans for further expansion? Where do you see GLO in 10 years?
TF: We have identified a few more markets and hope to bring in our fourth aircraft in the next few months. This will help us in expanding at a measured pace. We envision expanding operations in New Orleans and other cities, especially offering greater connectivity to the Gulf and Mid-South. In 10 years we will be a totally developed regional airline, giving the customers what 86
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they ask for and being a bright spot not just for New Orleans but for all for all the cities we serve. In the next decade we want to be in dozens of cities. There’s an unlimited number of opportunities as other airlines consolidate. It opens the door for regional carriers like ours. The growth potential is there and we think it is even better going forward. Biz: Do you plan to keep GLO headquartered in New Orleans?
TF: I have no plans to move the company. I’m a Louisiana guy, and I love the state. The market opportunity is here. People don’t fly planes for fun, they do it for business. The economic opportunity was here in New Orleans, and we’ll keep the business here. Air service is a nonpartisan issue, and most people get behind it. It makes economic sense and the market presented itself here for GLO, and it’s proving to be a great opportunity for us, the airport and the people of Louisiana. We’re excited to be here. Biz: What has been your economic impact on New Orleans? Are the numbers on your website still current, with 30 direct and 110 indirect jobs?
TF: I believe we are up to 34 direct jobs now. One hundred and ten still holds, although with the addition of Destin, we are responsible for another six or seven folks. We’ve done independent studies on our economic impact, and each city is unique. Every time you add a new nonstop flight to a destination, the economic impact is in the tens of millions of dollars. We had people move to New Orleans to take jobs to
GLO Airlines’ fleet includes three, 30-passenger Saab 340B aircraft.
work for us. When you look at our network — with five cities and the airline based here — the amount of revenue contributed to the city is quite large. With the flow of people commuting, whether for business or pleasure, and then bringing those additional people to New Orleans, the economic impact is gigantic. Of course once they’re here, they are staying in hotels, renting cars, eating at restaurants, and so on. It’s hard to pin down a specific economic impact in that sense, but it’s clear we are generating new revenue for the area. Biz: What is something important you want people to know about GLO?
TF: Our biggest thing is that we are still very new. We’re still very young and we are trying to get the public educated about these nonstop flights. We want people to know there is a new travel option and we’d be delighted to be of service. Biz: What advice do you have for entrepreneurs?
TF: Do not stop trying, ever. You will have the last laugh, win or lose. No one hates you if you fail and you tried. Go for it and you will be successful. Adopt a dog, find a good bourbon you like, marry your best friend and fight like hell. Nothing is easy. If it was, there would be a dozen airlines based here. n
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Why Didn’t I Think of That? Creative Businesses Taking Hold in Southeast Louisiana
“I had the DEET in one pocket and my bottle in the other. And as it turns out, the first person to come to me that day was John Cusack.”
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To the
Rescue Local film medic Kris Butler’s holistic bug spray has taken off in Hollywood South and word is spreading fast. By Kim Singletary | Photography by Cheryl Gerber
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ho is Kris Butler? That’s not a simple question to answer. She’s a professional sports photographer, a professional film medic, a former firefighter, a Teamster and an amateur surfer. But most recently, Butler has dove into the world of entrepreneurism with the creation of a product that could be considered a sort of holy grail here in the subtropics: a chemical-free bug spray that actually works. In just over three years, Butler has sold more than 2,500 bottles of her Medic Murder Mix through her company, Reel Rescue. Her product is on the shelves of five local businesses, but sales are really dominated by the film industry. On every set she works she brings her mix, and word has spread fast, with a top executive from MGM even expressing interest. Counted among the fans of Medic Murder Mix are film stars John Cusack and Will Ferrell.
The Making of the Mix It all started a few years ago when Butler was working in one of her roles — as a film medic — on the site of the filming of “The Bag Man,” a thriller starring Robert De Niro and John Cusack. “We were out on locations in LaPlace and Mandeville in the dead of summer with 100 percent humidity,” she says. “The movie took place at night so we would have a call time of 11 a.m. and wouldn’t wrap until 7 a.m. the next day. We would be filming with swamps on either side of us, and I would just be hosing myself, the crew, and the actors down with DEET. Nothing was working. The mosquitoes were even biting through our pants. I was desperate to find relief for everyone. I tried Skin So Soft and Amber Romance, even dryer sheets in our pockets. Nothing was working.”
A one woman operation (plus a bird) Kris Butler makes Medic Murder Mix, her all-essential-oilw bug spray, out of her 350-square-foot home in the Marigny. BizNewOrleans.com MAY 2016
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One day someone on the set came to her with a little vial he had bought at Earthsavers. “It was a natural deterrent that really seemed to work, but it was $17 for just that small vial,” she says. “So I took a trip to Whole Foods and asked them for their top-selling natural bug spray. Turns out it had the same three main ingredients as the vial. At that point I said to myself, ‘I can do this. I’m going to make my own.’ So I started with those ingredients and then just started grabbing other essential oils that smelled good to me and picked up an empty spray bottle.” After multiple attempts, Medic Murder Mix was born — a bug spray composed of 17 essential oils that includes vitamins A and E, and castor, apricot and almond oil, that promises to not only protect your skin, but keep it soft and smelling good.
But Does it Work? Once Butler had a concoction she was happy with, she took it back to work with her. “I had the DEET in one pocket and my bottle 90
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in the other,” she says. “And as it turns out, the first person to come to me that day was John Cusack. I gave him the option and he chose my bottle. I have to tell you, I was so nervous. There he was, dressed all in black and I was giving him this oil spray. I was just freaking out that it would stain his clothes. Luckily, it came out as such a fine mist that that wasn’t a problem. We sprayed him down once and he never came back to me that day, and he didn’t get any bites.” Word naturally started to spread around the site and soon it was clear that Butler had a hit. She sold her first 8-ounce bottle for $20 on the set of “The Butler.” “The thing about the film industry is that people are constantly moving around,” she says. “So the hair and makeup artists — who all tend to be huge proponents of Medic Murder Mix — will leave a show here and travel to another state for another gig and they’ll spread the word there. I’ve ended up shipping cases all over, both domestically and abroad. Now, as of a few months ago, people can order off the website too, which is really nice.”
Medic Murder Mix is available in 8-ounce and 4-ounce sizes that sell for $25 and $15. The company has sold approximately 2,500 bottles in just a few years.
Simple Ambitions Butler is clear that she never intended to be a bug spray entrepreneur. “When I created the mix, all I was trying to do was create something that would set me apart from the other medics and help me get more gigs,” she says. “The film medic field is incredibly competitive and cutthroat, especially if you aren’t from here” [Butler came to New Orleans from Northern California]. She says she had already become a medic known for pushing natural solutions on set in the form of apple cider vinegar. “My mother and sister have always been into essential oils and natural remedies, and they turned me on to the benefits of drinking apple cider vinegar,” she says. “It helps regulate blood sugar, keeps your energy up and I’ve found it keeps you just generally
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healthier, so I just started carrying a bottle of it around sets and encouraging people to do shots with me. That became kind of my thing — the apple cider vinegar girl. Actually I was on set on ‘The Campaign’ with Will Ferrell and he got really sick. I talked to my sister and she told me to tell him to make a bowl of it and heat it and get him to breathe it in. Surprisingly, he went for it and it really helped him feel better.' After that, she says, Ferrell starting doing vinegar shots with her.
The Lagniappe It was also on the set of a film where Butler learned that her formula had an added bonus — something particularly attractive to the film industry. “I was talking with a makeup artist about a year and a half after making the product, and she mentioned to me that she loves it because it’s the only bug spray that doesn’t disintegrate fake tattoos and blood. I couldn’t believe it! I asked her how long she had known this and she said about a year. I said, ‘You have to tell me these things!’” While Butler can not legally make any health claims, testimonials on her website claim Medic Murder Mix works on fleas and hot spots on dogs and cats, soothes existing bites and sunburns, and one even claimed it stopped an allergic reaction to a bug bite. Comments on the pleasant smell of the spray have included people using it as a linen spray and perfume.
A One Woman Show Butler’s business remains a one-person operation. “I make everything out of my 350-square-foot place in the Marigny,” she says. “I do the mixing, the bottling, I order the labels, I sell to stores, I check stock — everything.” She says she’s assembled about 172 bottles a day on her own. “Comfortably, I can do about 100 a day.” Butler still buys all of her ingredients retail at Whole Foods. “I know that needs to stop, but it’s just been so convenient to be able to run down the street and grab something I’m low on,” she says. “Plus, I’m really picky about my ingredients so I like being able to see, touch and smell them before I buy. You can’t do that when you buy online.”
Death by Research Butler admits that she is a very particular person who tends to “research things to death.” “I took a solid week just to perfect the smell,” she says. “And the color of the bottle — oh my gosh, I was stuck on that forever. I just couldn’t decide between blue or green 92
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Dispensed in a fine mist, the all-essential-oils product protects from bugs while hydrating skin — all with a pleasant smell.
and it was killing me. Finally my mom called and said, ‘Go for blue. Guys always pick blue.’ I have to say, she was right.”
I thought they’d see the spooky label and be turned off, but they were all for it,” she says. “They said yes immediately.” She says the store has since found it to be a popular seller. “It’s great because it’s so safe for little ones,” she says.
Future Plans No Bugs Here Butler admits that the name and the labeling are far from conventional. The name, Medic Murder Mix, doesn’t even hint at it being a bug spray, and the bottle has a spooky mummy scene on it. There’s no bug in sight. “I had someone tell me I should have at least put a bug on the label, but I asked them, “Did you see the bottle and become curious about what it was? Did you then go over and read it? Did you finally try it out?’ They answered yes to every question. I don’t think any of that would have happened if they could look at it and immediately know what it was.”
Not a Hard Sell The first store to carry Medic Murder Mix was local natural parenting boutique, Zuka Baby. “I was honestly kind of shocked because
Butler is currently busy with the creation of a second product, “Silence of Pestilence,” an equally creepy-looking all-natural bug spray, this one created not from essential oils, but from fermented herbs. “Back in the 1600s there were these four thieves during the Black Plague that were managing to steal from the dead bodies but never caught the plague,” she says. “I found out about them and I was totally intrigued. It turns out that they had created this mixture of sage, clove, lavender and garlic that was protecting them. I figured, ‘Hey, if it protected against the plague, maybe it would work on bugs.’ So that’s what I’m doing now.” Butler says she’s ready to take her company to the next level. “I’m really thinking big,” she says. “I’d like to see my products in stores like REI and Bass Pro Shop and Petco. I’ve got everything in place. I’ve got plans, and they’re all big.” n
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Events New Orleans Entrepreneur Week Conversation with Steve Case Wednesday, March 16
23rd CID Achievement Awards Friday, April 8 Audubon Tea Room
The Chicory Steve Case, CEO of Revolution and co-founder of AOL, reflected on his experiences ushering in the Internet era at an event for this year’s New Orleans Entrepreneur Week.
The Commercial Investment Division (CID) of the New Orleans Metropolitan Association of Realtors held their annual awards ceremony April 8. The event’s highest award, the F. Poche Waguespack Award for overall top achievement in commercial real estate, went to Kirsten E. Early, CCIM, with SRSA Commercial Real Estate.
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1. Jeff Arnold, Kevin Reed and Brad Calloway 2. Kirsten Early 3. Paul Richard, Stephanie Hilferty, Lesha Freeland and Kelli Walker Photos by Cheryl Gerber
Hispanic Chamber of Commerce 2016 Town Hall Meeting/Luncheon
ACG Louisiana Monthly Luncheon
Tuesday, April 12Â
Roosevelt Hotel
Tuesday, April 12
JW Marriott Raymond J. Arroyo, chairman of the United States Hispanic Chamber of Commerce, and Yolanda Olivarez, regional administrator for the U.S. Small Business Administration, were among the speakers at the Hispanic Chamber of Commerce 2016 Town Hall Meeting/Luncheon.
April’s ACG Monthly Luncheon featured an address by Lawrence Young, managing director of AlixPartners.
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1. Lauren Bugg, Katie Higgins and Gina Bertrand 2. Raymond Arroyo 3. Hector Pineda, Paoll Lossi and Ted Selogie Photos by Jeff Strout and Kenny Martinez
1. Joaneane Smith and Michael E. Botnick 2. Lawrence Young 3. David Cusimano, Eli Feinstein and David Rieveschl BizNewOrleans.com MAY 2016
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Behind the Scenes
Breaking News Looking out from behind the main anchor desk at WWL-TV studios you can catch a glimpse of Anchor Karen Swensen hard at work. The CBS affiliate produces 14.5 hours of news and local programming each week from its facilities at 1024 North Rampart Street. A former 7-Up bottling plant, the downtown building has housed the top-rated station since 1957. The facilities underwent a multi-million-dollar renovation in 2014. WWLTV.com
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Photo by Jeff Johnston