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Editor’s Note
Real Big T
wo years old. Just like a toddler, we’ve learned to walk and now we’re really starting to get into things.
This issue marks the start of our third year publishing Biz New Orleans and to celebrate, we’re all about real estate. Partnering with the 6th Annual Economic & Real Estate Forecast Symposium, to be held Oct. 11 at Loyola University’s Roussel Hall, Biz New Orleans has chosen October as the perfect month to delve into the current state and future of both the commercial and residential markets in New Orleans. While every issue has always included two main features, after speaking and brainstorming with a few of the incredible professionals in this industry, we decided that for the first time we had to go big. The result is one giant, 11-page feature packed with insight from some of the biggest names in urban development, residential, affordable housing, the CBD, the mortgage industry and office and retail. In addition to our Top 10 Inf luencers, you’ll also find a Q&A with commercial sales and leasing dynamos Rhonda Sharkawy and Kirsten Early — who together represented more than $50 million in volume last year. Playing off the symposium’s theme this year, “Moving Forward…Engines for Growth” we were able to have some fun with both these ladies and Alton McRee, president and CEO of Fidelity Bank — the presenting sponsor of this year’s event — at the NOLA Motorsports Park for the cover shot. A big thank you to Henry Shane, who let us borrow one of the prized automobiles included in his personal collection. Happy Reading!
Kimberley@BizNewOrleans.com
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OCTOber 2016 | volume 3 | issue 1
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 Rudy Aguilar III, Raquel Baker, Angelina Christina, Maria Clark, Robert Edgecombe, Rebecca Friedman, John Marshall, Tatyana Meshcheryakova, Chris Price, Peter Reichard, Jennifer Gibson Schecter, Keith Twitchell, Melanie Warner Spencer,
advertising Vice President of Sales Colleen Monaghan Colleen@myneworleans.com (504) 830-7215 Sales Manager Maegan O’Brien Maegan@BizNewOrleans.com (504) 830-7219 Senior Account Executive Caitlin Sistrunk Caitlin@BizNewOrleans.com (504) 830-7252 Account Executive Carly Goldman Carly@BizNewOrleans.com (504) 830-7225 PRODUCTION Production/Web Manager Staci McCarty Senior Production Designer Ali Sullivan Production Designer Monique DiPietro Traffic Coordinator Terra Durio administration Chief Executive Officer Todd Matherne President Alan Campell Executive Vice President Errol Laborde Vice President of Sales Colleen Monaghan Director of Marketing & Events Cheryl Lemoine Event Coordinator Margaret Strahan Administrative Assistant Denise Dean Distribution Manager John Holzer Subscription Manager Sara Kelemencky Subscription Assistant Mallary Matherne AABP 2016 Award of Excellence Best Feature Layout: Magazine | Bronze
110 Veterans Blvd., Suite 123, Metairie, LA 70005 (504) 828-1380 Biz New Orleans is published monthly by Renaissance Publishing, LLC, 110 Veterans Blvd., Suite 123, Metairie, LA 70005; (504) 828-1380. Subscription rate: one year $24.95, two year $39.95, three year $49.95 — foreign rates vary call for pricing. Postage paid at Metairie, LA, and additional mailing entry offices. POSTMASTER: Send address changes to Biz New Orleans, 110 Veterans Blvd., Suite 123, Metairie, LA 70005. Copyright 2016 Biz New Orleans. No part of this publication may be reproduced without the consent of the publisher. The trademark Biz New Orleans is registered. Biz New Orleans is not responsible for unsolicited manuscripts, photos and artwork, even if accompanied by a self-addressed stamped envelope. The opinions expressed in Biz New Orleans are those of the authors and do not necessarily reflect the views of the magazine or owner. 8
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Contents
82
78 Feature
From the Lens
42 Top 10 Influencers
78 Great Offices
Leading industry professionals in New Orleans real estate share their thoughts on the state of the industry and what lies ahead.
Bond Public Relations rebrands as Bond Moroch and celebrates with new digs.
82 Why Didn’t I Think of That?
La Riviere Confiserie brings French sweets to New Orleans not found anywhere else in the country.
96 Behind the Scenes
Nasa’s Michoud Assembly Facility
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On the Cover From left to right: Alton McRee, president and CEO of Fidelity Bank; Kirsten Early, partner and director of retail at SRSA Commercial Real Estate; and Rhonda Sharkawy, senior retail leasing and development executive for Stirling Properties, aboard a 1966 Pontiac GTO (courtesy of Cars of Yesteryears) at NOLA Motorsports Park. Photo by Jeff Johnston
Contents
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28 Columns
22 NOLA By the Numbers
Housing affordability in New Orleans
24 Dining Biz
How ambiance can affect the bottom line
88
26 Tourism Biz
The Crescent City Blues and BBQ Festival returns.
28 Sports Biz
A chat with Tulane’s new athletic director
30 Film Biz
60 Education
32 Entrepreneur Biz
66 Health
Star power hits the NOFF
Entrepreneur: it didn’t always mean what it does now.
How local high schools are grooming our future workforce
Elderly care: What options exist?
34 Biz Etiquette
70 Law & Hospitality
36 Tech Biz
74 Guest Viewpoint
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Is your pet peeve counted among the worst office offenses?
A look at some of the tools your business should be using.
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News
Perspectives
The legal hurdles involved in hotel developments Downtown
Tips following a flood
20 Calendar
Upcoming events not to miss.
38 Biz Bits
Industry news
88 Q&A
Top commercial sellers Kirsten Early of SRSA Commercial Real Estate and Rhonda Sharkawy of Stirling Properties
94 Around Town – Events
Industry gatherings
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Publisher’s Note
It Is Finally Here
T
he fall is always a great time to start new projects, and two years ago we launched Biz New Orleans and the Biz Network — a multimedia platform to deliver business news to New Orleans. With our monthly magazine and daily website, along with video minutes and weekly Biz Casts on WWL – WUPL TV, we have created a new way to deliver local business news. In such a short time we have won numerous local and national awards, including best local news website, best daily e-mail newsletter, best business TV broadcast and national recognition for feature layout. It has been a great couple of years and I am so very proud of our team. I am also thrilled to celebrate the 50th anniversary of our sister title, New Orleans Magazine, this month. Today New Orleans Magazine is hotter than ever. Nationally recognized and awarded numerous times over the past 50 years and with readership at an all-time high, New Orleans Magazine truly has a “Rich History and a Strong Future.” Please visit MyNewOrleans.com/50 for all the happenings this month and throughout this year of celebration. Thank you to all our subscribers, social followers, advertisers and vendors for making our media properties so visible and shared throughout New Orleans. And a special thanks to the hard working staff and freelancers who produce not only Biz New Orleans and New Orleans Magazine, but all the titles and events of Renaissance Publishing.
Todd Matherne 14
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Meet the Sales Staff
Maegan O’Brien Sales Manager (504) 830-7219 Maegan@BizNewOrleans.com
Caitlin Sistrunk Senior Sales Executive (504) 830-7252 Caitlin@BizNewOrleans.com
Carly Goldman Account Executive (504) 830-7225 Carly@BizNewOrleans.com
Colleen Monaghan Vice President of Sales (504) 830-7215 Colleen@BizNewOrleans.com
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Calendar Wednesday, October 5
October 13-14
New Orleans Chamber of Commerce 2016 Educational Seminar: An interactiv e workshop for Google Ads and SEO maximization 11 a.m. – 1 p.m.
Focus Forward 2016 — New Orleans & Panama: Gateways to the Americas A forum for Louisiana professionals advancing toward investment in/expansion to Panama & Latin America.
Delgado Community College — Martin Hall
J.W. Marriott Hotel
615 City Park Ave.
614 Canal Street
NewOrleansChamber.org
PanamaGateway.org/event/gulf-coast-summit/
Friday, October 14
Thursday, October 6 New Orleans Chamber of Commerce Women’s Business Alliance 5 – 7 p.m.
SpecTECHular Explore 2016
The Strand Apartments and HRI Properties
2800 Veterans Blvd., Suite 330, Metairie
NewOrleansChamber.org
Spectechular.org
8 a.m. – 2:30 p.m. New Horizons Computer Learning Center
Friday, October 7
Thursday, October 20
Hispanic Chamber of Commerce of Louisiana Being a Star Entrepreneur (BASE)
Hispanic Chamber of Commerce of Louisiana Baton Rouge Networking Event
8:30 a.m. – 2 p.m.
5:30 – 7:30 p.m.
LACE The Grand Ballroom
Mestizo Louisiana Mexican Restaurant
HCCL.biz
2323 S. Acadian Thruway HCCL.biz
Tuesday, October 11 6th Annual Economic & Real Estate Forecast Symposium 12:30 – 5 p.m. Symposium
UNO College of Business Biznet
5 – 7 p.m. Biz New Orleans reception
Alumni Networking event
Loyola University, Roussel Hall
5 – 7 p.m.
Nomar.org
NewOrleansChamber.org
Tuesday, October 11
Wednesday, October 26
Jefferson Chamber PAC Breakfast Fundraiser
Jefferson Chamber of Commerce
8:30 – 10 a.m.
Prosper Jefferson Seminar Series: Hiring and Firing
Chateau Golf and Country Club
9 – 10:30 a.m.
3600 Chateau Blvd., Kenner
JEDCO Conference Center
JeffersonChamber.org
700 Churchill Pkwy., Avondale JeffersonChamber.org
Thursday, October 13 ABWA Crescent City Connection Luncheon Dr. Laura Beth Ramirez, MD, Hematologist and Medical Oncologist leads an informational presentation about breast cancer 11 a.m. – 1 p.m. Ralph Brennan’s Heritage Grill 111 Veterans Boulevard, New Orleans ABWANewOrleans.org
Sunday, October 23
Thursday, October 27 ACG Louisiana 6th Annual Taste of New Orleans Keynote luncheon speaker and panel discussion The Roosevelt Hotel 130 Roosevelt Way, New Orleans ACG.org/Louisiana/events
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
Orleans Parish
Metro Area
2009 2014 2009 2014
% of Units Occupied by Owners
51.1
45.9
65.6
62.2
% of Units Occupied by Renters
48.9
54.1
34.4
37.8
% of Owners Spending >35% of Income on Housing
43.8
35.3
30.7
27.6
% of Renters Spending >35% of Income on Housing
54.7
53.3
45.2
48
Vacancy Rate
23.5
20.6
14.9
14.4
Source: U.S. Census Bureau’s American Community Survey
House Hunters A look at housing affordability in the New Orleans market
H 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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ousing affordability is a growing and increasingly critical challenge in many communities. The issue is complex, of course, but the fundamental problem is relatively straightforward: Wages have generally not kept pace with housing costs. This leaves many workers hard-pressed to find housing within their budgets, and it makes the proposition of homeownership—especially for first-time buyers—more difficult. Further, it creates or exacerbates a huge opportunity cost for local communities, since cost-burdened residents have less disposable income to spend, save or invest. To get a sense of how the New Orleans metro area has changed over the last several years and how we compare to other regions, I analyzed data from the U.S. Census Bureau’s American Community Survey from 2009 and 2014. The data
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sets include, among many other variables, information about housing units, tenure and costs. From this analysis f low three clear conclusions. First, the percentage of housing units occupied by renters has increased markedly. In 2009, 48.9 percent of occupied housing units housed renters; by 2014 this figure had risen to 54.1 percent (an increase of 5.2 percentage points), which ranks among the top 3 percent of all U.S. counties. By comparison, the rate of renter occupancy in the metro area rose by 3.4 percentage points, and the national rate of renter occupancy rose 4.1 percentage points. Even amidst a nationwide trend away from homeownership, New Orleans stands out as an increasingly rental-driven market. Secondly, our area’s housing costs are high relative to residents’ earnings. In 2014, over a third of Orleans Parish
homeowners spent over 35 percent over their household income on housing costs, which despite declining since 2009, still ranks among the top 3 percent of all counties nationwide. Judging by this same measure, housing in the New Orleans metro area is approximately as affordable as in the Seattle, Portland, Charleston and Boston metro areas, none of which are regions generally associated with modest costs of living. Renters remain even more heavily encumbered. The New Orleans metro area ranks 11th in the percentage of renters—48.0—spending more than 35 percent of their income on housing costs. In Orleans Parish alone, 53.3 percent of renters exceed this threshold, putting the city among the top 5 percent of counties nationwide. Third, however, our region’s vacancy rate has remained relatively high. Overall, the New Orleans metro area has the 16th-highest vacancy rate in the country. In 2014, 14.4 percent of housing units were vacant, down slightly from 14.9 percent in 2009. Our vacancy rate is comparable to those of the Phoenix, Jacksonville and Riverside, California, metro areas— regions hit especially hard during the housing crisis. The vacancy rate in Orleans Parish was 20.6 percent in 2014, down from 23.5 percent but still among the top 10 percent of all counties nationwide. Importantly, the population of Orleans Parish was once 640,000, meaning that the city has a footprint and a housing stock capable of supporting 60 percent more residents than it currently has. The problem of housing affordability has no easy or expedient solution. Even with combinations of tax credits, subsidies and development incentives long offered to investors and property owners, the challenge has persisted and, in some ways, has grown worse. The good news, however, is that for the foreseeable future, there will be an ample housing supply in the New Orleans area. It is critical that through market ingenuity, public policy,or, more likely, a combination of both, some portion of this supply allow struggling residents to share in the comfort and security characteristic of a modern economic success story. n
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Columns | Dining Biz Café Degas’ welcoming deck
Home-Cooked Meals The right ambiance invites diners to relax and stay awhile. BY Peter Reichard
S
itting in the dining room at Tony Angello’s Ristorante the other day, it occurred to me that the place was one of a certain type. I was enjoying a multicourse meal with my wife and children, and I noticed that I could hear everyone at our table with clarity, that the meal felt intimate, that I could focus on the flavors, that I could unwind with my family. There’s a reason Tony Angello’s, which opened in 1972, has stood the test of time. “This is the best restaurant in the world, period,” said my 7-yearold son. We all went home happy. The next evening, we went to a new eating establishment that will remain nameless. The dining room décor was très chic. Oldschool hip-hop blasted ironically against the walls as big-bearded whippersnappers toiled clamorously in the adjacent open kitchen. It was the first time we had ever been there. “This is the last time I ever want to come here,” said my 9-year-old daughter. 24
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There’s an art to restaurant ambience, and different ambiences appeal to different tastes. At one extreme is the discotheque or warehouse approach, in which patrons are crowded together in loud, wide-open spaces. Apparently, this environment makes some people feel alive or maybe avant-garde. New Orleans, like any major city, now has its share of these places. But it is blessed to have its share of more intimate places. In part, that’s because New Orleans has not confined its dining establishments to commercial areas. It has a great number nestled right within residential neighborhoods, often within structures that once were or could be houses. Along with genuinely hospitable wait staffs and cuisine that is, to say the least, reliable, these places are a big part of what makes our restaurant scene special. That brings us back to Tony Angello’s. The truth is, if you didn’t know it was there, you
might pass by the place, thinking it was just another 1960s-era Lakeview ranch house. Entering from the front porch, you have a strong sense of arriving at someone’s home. The main dining room feels like a living room. A picture of Pope Benedict presides. There are semiprivate dining rooms off the main room. The bar is mellow. The feeling is dignified and unrushed. The waiter might start singing in Italian. There’s a word for all this: relaxing. It’s an atmosphere that makes you want to linger. You want to order an aperitif, an extra bottle of wine, a dessert, a digestif. And the bill gets longer. Or take Brigtsen’s in the Riverbend neighborhood. Situated in the middle of a semiresidential block, it occupies a historic cottage. You enter through a sidehall and are smilingly escorted into this dining room or that one, which you may share with just a few other parties. Why on earth would you rush out of that pleasant Victorian atmosphere? Why wouldn’t you fritter away a whole evening in this home away from home? Others fit the same profile. Just a few blocks from Brigtsen’s, at Mat and Naddie’s, you might get a room to yourself or space on the deck. Again, you might dawdle and run up a bill. Speaking of decks, the dining room at Café Degas on Esplanade is all deck, making it the only restaurant that contains the trunk of an oak tree; only a small portion of the little old house is dedicated to a bar. As icing on the cake, the place has perhaps the most convincingly French vibe of any restaurant in New Orleans. But can you linger at Café Degas? I remember spending four and a half hours there once. Tucked away on Soniat Street in a residential part of Uptown is Gautreau’s: classy but warmly welcoming. The private room upstairs is an inner circle within Gautreau’s sphere of seclusion. In an emphatically different vein, there’s Jack Dempsey’s in Bywater. From the looks of it, the building used to be a double shotgun of utilitarian construction. As everyone knows, the neighborhood is popular among transplants, but Jack Dempsey’s remains a sanctuary of local authenticity. The staff is old-fashioned and no-nonsense. The clientele spans the color divide but is unified in being heavily “New Awlins.” It feels good to be at home. n Photo Cheryl Gerber
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Columns | Tourism Biz
‘...In New Orleans Sittin’ on a Candy Stand’ Crescent City Blues and BBQ Festival returns
P 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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resented by the New Orleans Jazz and Heritage Foundation, the 11th annual Crescent City Blues and BBQ Festival will be Oct. 14-16 at Lafayette Square Park in the Central Business District. Miraculously, it is free and open to the public. The three-day fest kicks off Friday night with two bands, the art market and the food vendors. Then Saturday ramps up to the two-stage setup for the remainder of the festival. There are 18 scheduled acts and likely to be some surprise performers joining them on stage, as happens most years in our music city. One of the signature aspects of the location is that the park is literally a square nestled in
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among tall downtown buildings. The two stages — St. Charles and Camp Street — actually face each other. The shows are staggered so that one stage is empty while one is being used for a performance. This prevents the muddling of sound and allows attendees to circulate through the festival while “their” stage is empty, or bounce from one side to the other for non-stop music. On Saturday, watch people travel from Jon Cleary & the Absolute Monster Gentlemen to Alvin Youngblood Hart & Muscle Theory then back again for Taj Mahal. The food will be amazing. Specific vendors haven’t been listed at the time of publication, but previous years have offered
brisket, pulled pork, ribs, chicken, shrimp and sausage dishes. They have also added vegan and vegetarian options, as well as gluten-free items. I’ll be searching for pulled pork nachos, pork and grits, brisket and collard greens. And likely enjoying a cold Abita beer to accompany the meal. The arts market is a special part of the festival and brings together incredibly talented craftspeople to sell their creations. There will be 24 local and regional artisans participating and their wares will include hand-crafted artworks, jewelry and home furnishings. As the festival has grown over the past 10 years, so has its economic impact on local businesses and the tourism industry. “We know that about half of the people coming to the festival are from outside the greater New Orleans region, so they’re either driving in from out of town or flying — so they spend money in restaurants, hotels and so on,” said Scott Aiges, director of programs, marketing and communications for the New Orleans Jazz and Heritage Foundation. “For our food and craft vendors, we try hard to make sure that the fees we charge them are low, so that they can maximize their profit, and judging from how many vendors are trying to get into the festival, word has gotten around that this event is a money-maker for them. And that, to us, is success.” A fact that can’t be stressed enough is that the Crescent City Blues and BBQ Festival is free to attend. As part of the New Orleans Jazz & Heritage Foundation’s mission to “promote, preserve, and encourage” the culture of Louisiana, this specific music festival is one way the Foundation gives back to the community. Funded in part by the proceeds from their New Orleans Jazz & Heritage Festival in the spring, as well as by vendor fees and donations, this fest is a gift to New Orleans and those who visit over the course of the weekend. It’s important to respect the rules of no outside food or drink (except for small children and those with dietary restrictions). There are also donation boxes near the park entrances and it would do your soul good to drop some cash in them if you can afford it. The website provides details on rules, parking and the lineup, as well as a link to a new music player that previews this year’s performers. Find it at jazzandheritage.org/blues-fest. n
Photo Eric Simon
W O O D WA R D D E S I G N B U I L D . C O M
800 650 6443
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T U L A N E U N I V E R S I T Y Y U L M A N S TA D I U M | G O U L D E VA N S A R C H I T E C T S
Columns | Sports Biz
Here to Win Tulane AD remakes Green Wave athletics in less than 10 months
T 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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roy Dannen has been Tulane’s director of athletics for just 10 months, but in that short window he’s set about changing the attitude and expectations of the Green Wave’s athletic program. “The biggest thing that I’ve found broken is the culture. Winning hasn’t been talked about,” Dannen, 49, said. “We’re here to win and be successful competitively. We want to be a standard setter that people look at and say, ‘Yes, they’re doing it the right way, and that’s how we should do it.’” The Marshalltown, Iowa, native was named AD in December, and has since hired head coaches for the “Big 3” sports — football, men’s basket-
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ball and baseball. Just 11 days after his own hiring, Dannen named Willie Fritz head football coach. At the end of March, he hired Mike Dunleavy to lead the basketball program. Then in mid-July, he called upon Travis Jewett to coach baseball. “It’s an extraordinary opportunity to essentially build your team in the first seven months,” he said. “I’m very pragmatic about where our program was at. I know from a competition standpoint that we weren’t there. Everything is measured by football and, on a secondary level, men’s basketball. We’ve gutted those programs and we’re starting over. I wanted to bring in people who came from success and
expect success. I’ve been able to hire people who will instill a culture that I believe in. Now, we have people who know how to win, who expect to win, and who are going to force everyone to elevate themselves to get to that level of expectation.” Fritz is being heralded as one of the best offseason signings in college football. He has compiled a 154–69 overall record, having won nearly 70 percent of the games in which he’s been a head coach. “He’s won by adapting to the players,” Dannen said. “He’s had winning records right away every place he’s walked into regardless of where they were when he got there.” Mike Dunleavy is the most high-profile name on Dannen’s roster. Dunleavy played in the NBA for 15 years, from 1976-1990, including stints with the Philadelphia 76ers, Houston Rockets, San Antonio Spurs, and Milwaukee Bucks. He served as an assistant coach while playing with the Bucks. As soon as his playing career ended, he began a 14-year career as a head coach for the Los Angeles Lakers, Bucks, Portland Trail Blazers and Los Angeles Clippers, where he also served as general manager. This marks the former NBA Coach of the Year’s first job as a college coach. “Men’s basketball has been on it’s back, dead for nearly 30 years,” Dannen said. “When a guy of Mike’s pedigree presented himself, he gives us instant credibility overnight.” Baseball, traditionally Tulane’s most successful sport, was a tougher hire. “We have one of the best baseball jobs in the country,” Dannen said. “At a hightuition private school, we only have 11.7 scholarships for baseball. We needed somebody who knew how to make those scholarships work and get us the best 35 players available.” The AD found his man in Jewett, formerly associate head coach in charge of hitting and recruiting at Vanderbilt, a peer institution that won the College World Series in 2014. Today, the pace and tempo around the Wilson Center, Tulane’s sports headquarters, is quicker than it was a year ago. “The state of Tulane Athletics today is that we’re turning the corner on culture. It’s been a whirlwind, but I have great comfort with where everything is at,” Dannen said. “Now it’s time to see how it manifests itself on the field.” n
Photo Associated Press
BizNewOrleans.com OCTOBER 2016
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Columns | Film Biz A scene from “Ella Brennan: Commanding the Table,” which will have its world premiere at NOFF this year.
The Stars Align This year’s NOFF is celebrity heavy
R 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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ob Reiner, Woody Harrelson, Jessica Biel, Julie Dash, Ella Brennan — the 27th undertaking of the New Orleans Film Festival (NOFF) definitely has star power. “This year things really came together, says Jolene Pinder, executive director of the New Orleans Film Society (NOFS). “We’ve had a really good year connecting with films that have been shot or are shooting here.” The festival will open this year with a screening of “LBJ” at the Orpheum Theater on Wednesday, Oct. 12, after which Reiner will be presented with a Career Achievement award from NOFS by the film’s star, Woody Harrelson. “LBJ was shot here and both he and Woody happen to be here again shooting Reiner’s second film in the area in the last 18 months, ‘Shock and Awe,’” Pinder says. The nine-day festival will also include the world pre-
OCTOBER 2016 BizNewOrleans.com
miere gala screening of “Ella Brennan: Commanding the Table,” directed by the Academy Award® and Emmy® nominated Leslie Iwerks and narrated by actress and New Orleans native, Patricia Clarkson, which tells the story of the legendary New Orleans restaurateur. “Ella Brennan is such a strong business woman and was such a force in the industry long before the current trend of the celebrity chef,” Pinder adds. “We’re so excited to be hosting the world premiere of this film.” Following the screening, AllAccess Pass holders will have a chance to taste the cuisine featured in the film at a private party in a Garden District home catered by Commander’s Palace, SoBou and Café Adelaide & The Swizzle Stick Bar. Jessica Biel will also be in attendance at the NOFF this year. Biel stars in a new film called “The Book of Love” alongside Jason Sudeikis, Mary
Steenburgen, Paul Reiser, Orlando Jones and New Orleans native Bryan Batt. The final big highlight of this year’s festivities will close the festival on Thursday, Oct. 20 — a special 25th Anniversary showing of the recently re-mastered historic feature, “Daughters of the Dust,” the first feature film directed by an AfricanAmerican woman to receive a general theatrical release in the United States. The film was written, directed and produced by Julie Dash, who will also receive a Career Achievement award this year from NOFS. The festival itself is quickly claiming star status among filmmakers, with Pinder reporting a 15 percent increase in submissions this year. “Next year we’ll be expecting a really big bump as we hopefully become an Oscar qualifier in two more categories — animated short and live action short.” “We consider ourselves a discovery festival,” she adds. “I’m excited to say that 45 percent of this year’s lineup was directed by women and about 36 percent were filmed by people of color.” Pinder says she sees the significant uptick in Louisiana films the NOFF saw this year as a symbol of the strength of the indigenous film community. “We are seeing more and more filmmakers coming here to tell their stories,” she adds. The NOFF also changed their criteria this year regarding what makes a local film. “We used to just require that the director, writer or producer was from Louisiana, but now we have three categories and the film has to meet two of the three. The other two categories are that 75 percent of the film was shot in Louisiana and that 75 percent of the cast and crew are from here.” Attendance for NOFF typically ranges from 20,000 to 25,000. “We’re examining the financial impact of the festival more this year,” she says. “We bring in about 400 filmmakers alone.” The festival is also making a concerted effort to focus the spotlight on New Orleans’ booming downtown. “We have chosen the new Ace Hotel as the festival headquarters and box office and, for example, we’ll be using the giant IMAX screen at the Aquarium as one of our screening locations, along with the newly renovated Orpheum” Pinder says. “We’re all about showcasing the revitalization of our downtown area.” n
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Columns | Entrepreneur Biz
By Any Other Name From entertainer to military leader, the changing meaning of the word “entrepreneur” holds significance.
W
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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hat does it mean to be an entrepreneur? Let’s examine this question in the most literal sense: the word itself and its derivations. Looking at that wordsmith’s bible, the Oxford English Dictionary, it’s no surprise to find that that word has French origins. What is surprising is that it first emerges in two unlikely and very different arenas, music and war. According to the OED, the first recorded English-language usage of “entrepreneur” comes in 1475, in a description of the ancient Roman Republican consul and military leader Publius Decius as being “so hardy an entrepreneur in battle.” The dictionary defines an entrepreneur in this sense as “One who undertakes; a manager, controller, champion.” The second definition is, “The director or manager of a public music institution; one who ‘gets
OCTOBER 2016 BizNewOrleans.com
up’ entertainments, especially musical performances.” In this context, the first reference appears much later, in 1878: “Concerts were started by a wellknown entrepreneur of the day.” So how did we get from the battlefield and the concert hall to today’s understanding of “entrepreneur,” defined in Webster’s Dictionary as “a person who organizes and manages a business undertaking” — and what do we learn from that journey? In war, successful leaders are those who can see the big picture, understanding the strengths and weaknesses of all sides in the conflict. They respond rapidly to changing conditions and new information and events, and can handle the most extreme pressure. While launching a new enterprise is not a life-anddeath situation, successful entrepreneurs certainly have
to see the big picture of the market they hope to enter. They need to know where the openings are, and avoid going directly against strong, entrenched operations. Most definitely, they have to be able to respond to other changes and innovations. Additional similarities include the ability to marshal and manage resources, and to maintain morale even when things are not going well. Note that we frequently use the military word “troops” in the business world. For both the military commander and the entrepreneur, strategic planning and tactical agility are essential to success. Employing these effectively will ultimately allow the entrepreneur to become, in OED’s definition, a champion. While the link between concert promoter and entrepreneur seems more obvious, here too we might find some useful lessons. Concerts are challenging to organize, with lots of moving parts to hold together. The product — the performance — must satisfy the preferences of the consumer, and a significant amount of effort goes into building public awareness of the show. Clearly, all these requirements also apply to getting a new business off the ground. More subtle are some of the things we associate with music itself, like artistry, emotions and the sense of shared experience that many people enjoy about listening to live music. This connection may be more applicable in the marketing of a new product or service. Building a new and better widget creates the possibility of a successful new enterprise; creating an emotional attachment, a sense of belonging for customers who buy the widget is essential to the art of advertising and thus selling the widget. A final bit of wordplay: entrepreneur and enterprise (and for that matter, entertainment) all have roots that include the word “enter.” This simple word is so important that OED devotes more than two pages to it. Its Latin derivation has dual meanings: “within” and “between.” This is perfect for the entrepreneur: A successful new business exists within a particular industry or field, but finds its niche, its place between existing products or services. In today’s usage, “enter” most simply and commonly means “to go in.” This is the most important step any entrepreneur will take: to go into the marketplace and begin competing for customers. Or as Publius Decius might have said, “Showing up is half the battle.” n Illustration Jrcasas
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Columns | Biz Etiquette
The Biggest Offenses Did your pet peeve make the list?
I Melanie Warner Spencer is editor of
New Orleans Bride Magazine. Her writing has appeared in the Austin American-Statesman, the Houston Chronicle, the Chicago Tribune and Reuters. Spencer’s ever-expanding library of etiquette books is rivaled only by her everready stash of blank thank-you notes. Submit business etiquette questions to Melanie@ MyNewOrleans.com.
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t may surprise you to learn that I really only have one major business etiquette pet peeve. That’s not to say I don’t notice or get slightly aggravated by certain behaviors, but most breaches of etiquette at the office, thankfully, don’t bother me. The exception is when I send someone an email with more than one point that requires their attention, but their response addresses only one or, in some cases, none of the points. This means my work gets held up until I get the requested feedback or answers. Thinking about this got me wondering about what would top the list of worst offenses. In, “Rude, Crude with Attitude: The Biggest Workplace Etiquette Offenses,” — a 2015 survey by Accountemps, a Robert Half
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Company — chief financial officers and workers identified their biggest business etiquette pet peeves. Somehow, my No. 1 wasn’t even included, much less in the top three, so perhaps I should get over it Instead, being distracted during meetings, gossiping about others in the office and not responding to calls or emails in a timely way topped the list. The next three are running late to or missing meetings; not crediting others when appropriate; and criticizing others publicly. That last one sounds pretty terrible, and much worse than my pet peeve, so I might adopt it as my new No. 1. An unscientific survey of my Facebook friends proved this is a hot topic. Within an hour, the thread accumulated more than 20 comments on everything from tardiness and emails
without subject lines to the scourge of every office, the dreaded “reply all.” The most intriguing one to me was about handshakes that are way too firm. Two friends that both have joint pain got into a back-and-forth about how painful it is when someone is a bit overzealous with their shake. The traditional rule is to practice a handshake that is neither too firm nor too loose. An appropriate handshake shouldn’t hurt, whether or not the other party has a medical issue, but their conversation has me being ever mindful of the pressure I’m issuing when I do shake someone’s hand. Germs also entered into this exchange, but as long as everyone practices good hand-washing hygiene this shouldn’t be a concern for most of us. It’s still considered standard practice in American business to shake hands. The exception is if you have a cold or f lu. In that situation, simply say, “I think I might be coming down with something, so we probably shouldn’t shake hands.” Most people will be grateful. So if you are not sick, but you are still overly concerned about germs, proceed with the handshake and if you must, excuse yourself as soon as possible to wash your hands. One of my friends suggested the Asian custom of bowing or perhaps a simple head nod as possible replacements to the American handshake. It’s a great idea on her part, but I’m not sure I see it gaining popularity in our lifetime given how long it takes for so many other rules and customs to change. (I’m looking at you, “don’t wear white after Labor Day”.) Of course, it’s important to take into consideration that some breaches are truly matters of perception. While one person might believe it’s rude for a colleague to walk into their office to verbally respond to an email, it might not bother another person at all. The best we can do is educate ourselves on the main points of business (or social) etiquette, act accordingly and apologize those times when we don’t quite get it right. That last part is important, because not matter what, even the most well-mannered among us will get distracted during a meeting, shake another person’s hand a little too hard or miss a question in an email. In those moments, patience and forgiveness are the best weapons in our etiquette arsenal. Office doughnut days help too. n
Photo Andrewgenn
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Columns | Tech Biz one to connect them together to create a Data Model, which is effectively a relational database within the Excel. Once there, the user has any number of options for summarizing and reporting on the data. Again, all of this can be refreshed with the click of a button, rather than doing the same manual steps every cycle.
Expand Your Toolbox Most businesses are missing out on valuable tools.
T Guest Columnist
John Marshall is
director of consulting at Bellwether, where he focuses on helping organizations make better use of their data. He has worked in business analytics for the last decade.
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he last few years have seen a revolution in the accessibility of business intelligence tools, which can have an impact on how all businesses use their data. At its heart, the advances mean that business analysts have more tools at their disposal to access, transform and deliver data without having to know complex coding languages. At the first level, all businesses should be maximizing their use of Excel by taking advantage of transformative add-ins that are free in most cases. To reach the next level, businesses should consider using a data visualization tool to deliver drillable reports and dashboards to management. These tools go beyond spreadsheets to bring the true story out of a business’s data. Finally, a business should be aware of trends in the cloud service marketplace that will enhance its ability to work with large and complex data sets in the coming months and years.
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Excel Add-Ins Help Analysts Automate Reporting Power Query and Power Pivot for Excel have actually been around for over five years now, but most businesses fail to take advantage of their power. If a business user is running Excel 2010 or later, they likely already have at least one of these tools. In practical business terms, these tools help take loads of time out of cyclical reporting processes, so businesses can spend more analyst time on actual analysis. Power Query allows a user to produce an Excel data set by connecting to a data source (for example, a database or other Excel document), shaping and filtering what gets pulled over, and then saving that connection. The data set can be updated later with the click of a button, rather than exchanging files and copy/pasting. Once a user establishes data connections, Power Pivot allows
Visualization Tools Help Managers Visualization tools that present data in interactive and drillable reports are also not new to the marketplace, but historically have been out-of-reach for many smaller organizations, due to high licensing costs. Last year, however, we saw the emergence of a tool from Microsoft called Power BI, which builds on Power Query and Power Pivot to create a standalone platform for business reports and dashboards. While its end product – the visuals – aren’t necessarily ahead of other market leaders like Tableau and Qlik Software (Gartner Magic Quadrant for Business Intelligence and Analytics Platforms, February 2016), its price is much lower ($9.99/user/month). That said, businesses should take a broad look at this marketplace, to see which tools suit the skill set and needs of their organization. Emerging Services The continued evolution of cloud computing is on the verge of producing a major shift in small businesses’ capacity to produce live visualizations, business-specific mobile apps, analyze large data sets in innovative ways, and perhaps even remove themselves from constricting one-size-fits-all Enterprise Resource Planning (ERP) systems. Large cloud service providers such as Amazon, Google and Microsoft are adding offerings to their platforms every week, it seems. Savvy businesses are taking advantage of these services to manage their data more efficiently. The evolving landscape can be hard to keep up with in addition to one’s day job, so be sure to ask your technology provider (whether internal or external) for support in approaching data and analytics. You may have more analytical power at your disposal than you know. n
Photo Thinkstock
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Biz Bits - Industry News Around town
The 2016 expansion of Panama’s Canal, and the many trade missions to Panama attended by local and international industry leaders in 2015-16, provide the perfect opportunity for our community to engage directly with individual business owners and public and private sector representatives from abroad. —Jacqueline Brettner, executive board for the Panama Gateway International Association [PGIA] and partner at Carver Darden law firm. PGIA has selected New Orleans to be the host city for its inaugural international business summit, Focus Forward 2016 — New Orleans & Panama: Gateway to the Americas, scheduled for October 13-14, 2016 at the JW Marriott New Orleans. For more information and to register, visit panamagateway.org/ event/gulf-coast-summit/
Emeril Lagasse Foundation Named Nonprofit of the Year The Louisiana Association of Nonprofit Organizations has awarded its 2016 Force for Good Award for Nonprofit of the Year to the Emeril Lagasse Foundation. Headquartered in New Orleans, for nearly 15 years the foundation has been creating opportunities to inspire, mentor and enable youth through culinary, nutrition and arts education with a focus on life skills development. This has included the distribution of over $7 million to children’s organizations and the funding of seven teaching kitchens and five culinary gardens.
Louisiana Tops List of Most Tax-Friendly States Louisiana is the No. 6 most tax-friendly state in the nation according to Yahoo Finance. The website adds that “…property taxes are the thirdlowest in the nation,” and “at 20 cents per gallon, Louisiana’s gas tax is well below the national average of 30 cents.”
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BioInnovation Center Receives National Recognition The New Orleans BioInnovation Center has been awarded $50,000 from the U.S. Small Business Administration’s (SBA) 2016 SBA Growth Accelerator Fund Competition. The center was the only winner from Louisiana among a pool of 68 awardees from 32 states chosen to receive $3.4 million in total prizes. The BioInnovation Center offers facilities, free consulting, educational events and the BioFund capital program to emerging innovators from across Louisiana in healthcare and the life sciences.
The Top 10 Most Tax-Friendly States are: 1. 2. 3. 4. 5.
Wyoming Alaska Florida Nevada Arizona
6. Louisiana 7. Alabama 8. South Dakota 9. Mississippi 10. Delaware
Recent Openings
Grace Anne Dorney Pulmonary & Cardiac Rehabilitation Center The Grace Anne Dorney Pulmonary & Cardiac Rehabilitation Center at Tulane Medical Center was unveiled on September 8. The center is named after Grace Anne Dorney-Koppel, the wife of senior CBS Sunday Morning contributor and former Nightline anchor Ted Koppel. Both attended the opening. The center is located on the hospital’s seventh floor, conveniently adjacent to the pulmonary clinic and respiratory therapy department.
Kongsberg Maritime Inc. Kongsberg Maritime — a global provider of on- and offshore maritime solutions — opened its North America regional support center September 14 inside the James Business Park at 145 James Drive East in St. Rose, Louisiana. The building includes approximately 77,000 square feet of Class A office space, a 7,000-square-foot warehouse, multiple training classrooms, kitchen facilities and an exercise facility that includes squash and basketball courts. The third floor, spanning 28,000 square feet of Class A office space, is being offered for lease.
Coming Soon B Hotel New Orleans Hotel 504, at 1300 Canal Street, will be transformed into B Hotel New Orleans: The multimillion dollar renovation begins mid-October. Expected to open in mid-2017, the hotel is part of the B Hotels & Resorts brand and will feature 157 guestrooms and suites, meeting space, a restaurant, courtyard and bar.
Tulane University’s Goldring/ Woldenberg Business Complex Tulane broke ground on the expansion of its A.B. Freeman School of Business on September 9. The project will unite the school’s two building footprint into a unified structure called the Goldring/Woldenberg Business Complex.
Nordstrom Rack Nordstrom Rack will be the newest retailer to join The Outlet Collection at Riverwalk on October 6.
NOPSI Hotel The historic headquarters of the former New Orleans Public Service (NOPSI) at 317 Baronne Street is being redeveloped as a luxury hotel called NOPSI Hotel, New Orleans. Originally opened in 1927, the nine-story brick building is set to open again in spring 2017 as a luxury 217-room hotel that includes a restaurant, 10,000 square feet of meeting space and a rooftop pool and bar.
We’d love to include your business-related news in next month’s Biz Bits. Please email details to Editorial@BizNewOrleans.com. BizNewOrleans.com OCTOBER 2016
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Top 10 Influencers New Orleans’ top real estate professionals discuss the current status of the city’s residential and commercial markets and make projections about what lies ahead.
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By Kim Singletary 1- The Paramount at South Market (611 O’Keefe Ave.) and 2- The Beacon at South Market (1000 Girod St.) are both luxury apartment buildings by The Domain Companies that are part of the five block South Market District development catering to the current demand for downtown living.
3- The Seaworthy Restaurant — an oyster bar (630 Carondelet St.) that is part of the new Ace Hotel — and 4- May & Ellis apartments (221 Chartres St.) a luxury apartment building that was once a Hurwitz Mintz furniture store are part of the Palmisano Group’s several hundred million-dollar portfolio of projects. BizNewOrleans.com OCTOBER 2016
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“We have not seen this type of new construction in the past 10 years,” says Palmisano. Among his company’s current projects is a future Homewood Suites at 317 N. Rampart St.
UR B A N D E V ELOP M EN T
Wesley J. Palmisano
President and CEO, Palmisano Group
Wesley J. Palmisano is the president and CEO of Palmisano Group, a New Orleans Construction Firm. In 2013, Palmisano took over the family business, changing its focus from residential to commercial and civil construction. In just three short years, the company has added more than 75 employees while experiencing a 200 percent growth year over year. Under Palmisano’s leadership, the company has quickly become New Orleans’ sought-after firm for the construction of downtown hotels, multi-use developments, retail spaces, restaurants and healthcare facilities. This year alone, he was named EY Entrepreneur Of The Year 2016 in the Industrial Services and Construction category for the Gulf Coast, was named to the NOLA 100 list of the city’s leading entrepreneurs and was one of six entrepreneurs recognized as a Rising Star by Junior Achievement. How would you describe the status of urban development in New Orleans? Urban development has prospered in New Orleans over the past three years and is still going strong. The trend towards downtown living and the booming tourism market have created demand for development and construction of apartments, retail, 44
OCTOBER 2016 BizNewOrleans.com
hotels, restaurants and condominiums. It is exciting to see many of the vacant historic buildings being revitalized and placed back into service. In addition to building renovations on every corner downtown, there are also a few new high-rise buildings currently under construction. This is significant because we have not seen this type of new construction in the past 10 years. New Orleans is an exciting place to work right now. How are the developments your company is doing impacting the urban marketplace? Palmisano is extremely proud to play a role in the revitalization of New Orleans’ downtown core. Our projects have placed numerous historic buildings back into service, improved vacant blocks with new construction and provided entertainment opportunities for the growing population. The firm’s portfolio includes several hundred million in high profile projects, such as the new Moxy Hotel in the CBD, May & Ellis apartments in the French Quarter, Ace Hotel and Seaworthy Restaurant, new construction at the Rampart Homewood Suites and the Julian Apartments on Magazine. We also focus on giving back to the community through the Palmisano Foundation, which was created to focus on educational and children’s causes including PlayBuild NOLA, Growing Local Nola and New Orleans Women and Children’s Shelter. What do you project for the future? Six to 12 months down the road? Is this a new peak or baseline? I have run across two different theories regarding this urban revitalization. Some people feel that it would be difficult for the current level of activity to continue, but there are also many others that argue this is just the beginning. One interesting trend to note is that we see projects moving outside of the downtown core into areas such as the Bywater and Lower Garden District. Our opinion is that development and construction will continue its momentum for at least the next few years.
UR B A N D E V ELOP M EN T
Matt Schwartz Principal, The Domain Companies
Matt Schwartz co-founded The Domain Companies with Chris Papamichael in 2004. Both oversee the company’s development activities and are responsible for the overall management and oversight of company operations. Over the past 15 years, Schwartz has been involved in over $2 billion of development and capitalizations in virtually every sector of the real estate industry. Prior to launching Domain, Schwartz was a senior vice president of Related Capital, then the largest multifamily owner and financial services provider in the country. Schwartz currently serves as a member of the Business School Council at the A.B. Freeman School of Business and as chairman of the board of Liberty’s Kitchen.
UR B A N D E V ELOP M EN T
Chris Papamichael
Principal, The Domain Companies
Chris Papamichael has extensive experience in the identification of acquisition and development opportunities in diverse markets and real estate sectors, as well as the design, construction and management of unique and highquality assets. Prior to launching Domain, Papamichael held positions at some of the country’s largest and most respected real estate investment and development firms, including W&M Properties, one of the country’s most successful real estate investors and owners; Crescent Heights, one of the country’s largest luxury condominium developers; and Aris Investment & Management, a New York City multifamily specialist where he was responsible for all investment and development activities. Papamichael currently serves on the board of the Louisiana Children’s Museum. How would you both describe the status of urban development in New Orleans? In a word, booming. We’ve seen an acceleration of sustainable development in the Downtown New Orleans core. A number of trends are making Downtown a more attractive place to live, work and visit, including improved transportation access and streetcar extensions, the renovation of historic theatres, and the introduction of diverse entertainment and hospitality offerings. The increase in residential density Downtown is very exciting, with new housing, amenities, retail and dining options coming online to meet demand. How are your company’s developments impacting the urban marketplace? Domain’s projects contribute to Downtown’s vibrancy and growth, providing spaces and opportunities for innovation, collaboration and community. Ace Hotel New Orleans is one example — a complete
The South Market District, Domain’s mixed use developent Downtown, will include 1,000 luxury apartments and condos and 200,000 square feet of retail space. Shown here are views of The Standard luxury apartments (top), which just began construction, and Park (bottom)— 27,000 square feet of retail completed in 2014.
renovation of three historic buildings and the addition of a new structure have created a hub of food, music, art and culture. The South Market District has become a thriving center for some of the best residences, restaurants, shops and amenities in the city, with the upcoming Morris Admji-designed Standard condominiums raising the bar for ownership opportunities. Our upcoming co-working space — The Shop at the Contemporary Arts Center, New Orleans — ref lects how our local economy is developing, designed to meet the needs of the growing technology and arts-based industries and creative professionals. With networking space and valuable programming and benefits, The Shop will offer an exciting new way to work and collaborate in New Orleans. What do you project for the future? Six to 12 months down the road? Is this a new peak or a baseline? We’ll see momentum continue to build as additional projects come online. Exciting new hospitality options will bring a diverse group of visitors Downtown, further supporting the area’s shops, restaurants and entertainment venues. Mixed-use developments like South Market, combining first-class residences with prime commercial space, will attract more households and businesses to the area and continue to transform Downtown into a vibrant, walkable community. We’re very optimistic about Downtown’s future, and look forward to continuing to lead and support its incredible growth. BizNewOrleans.com OCTOBER 2016
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LEFT: JCH Development served as co-developer — along with Stirling Properties — of Magnolia Marketplace, a 106,000 square-foot shopping center on South Claiborne Avenue and Toledano Street. ABOVE: The residential market remains strong, both for homes and rentals, but some slowing is beginning. (Pictured here is a home for sale in Kenner offered by The Nugent-Freeland team).
UR B A N D E V ELOP M EN T
Tara Hernandez President, JCH Development
Tara Hernandez is president of JCH Development, an urban real estate development company that converts underutilized real estate into “cool,” creative spaces. She has developed residential, multi-family, and commercial projects throughout Louisiana, and in Mississippi and Missouri, including Blue Plate Artist Lofts and Magnolia Photo Tracie Morris Schaefer Marketplace Shopping Center, where her firm served as a co-developer. In her role as president, Hernandez most recently assisted Liberty Bank & Trust as its owners representative, with the company’s newly opened branch and retail space on Gentilly Boulevard. She is a Louisiana real estate broker, a past trustee of the Urban Land Institute and past chair of ULI Louisiana. How would you describe the status of urban development in New Orleans? It has drastically changed post-Katrina. There have been numerous and various types of projects completed, currently under construction, as well as many in pre-development stages. These opportunities have been delivered by both local and out of state developers and definitely provided the city with new tax revenues, a diversity of services and products, as well as other benefits for residents. It has also assisted with the renewal and repopulation of several neighborhoods throughout the city. How are the developments your company is doing impacting the urban marketplace? Our firm has been instrumental in creating new housing and retail options previously not found in the city, in neighborhoods where redevelopment was instrumental in the revitalization of an area. 46
OCTOBER 2016 BizNewOrleans.com
We have also offered options to a diverse mix of residents and customers. I would like to think that we have positively impacted peoples’ lives and lifestyles in a meaningful manner. What do you project for the future? Six to 12 months down the road? Is this a new peak or baseline? Since our business involves lots of forward thinking and timing, the next six to 12 months will mostly bring to market projects currently under construction and those that have already received zoning approvals. Since several new projects underway involve larger, mixed-use developments, I think we will probably see a few more announcements for projects, but also some wait and see for absorption. I hope to see a balance of more affordable and workforce housing options — which are challenging due to the costs to develop projects these day— but also some additional retail options outside of Downtown. It will be interesting to see whether we continue to attract new residents to the city. I am hopeful for a bright future!
RES I D EN T I A L
Rick Haase
President, Latter & Blum, Inc.
Rick Haase oversees the operations and strategic direction of the Latter & Blum, Inc.’s family of companies. The company, which includes more than 30 residential and commercial offices throughout Louisiana, Texas and Southern Mississippi, completes approximately 15,000 real estate transactions annually while operating successful mortgage, insurance and title and escrow service companies. Haase has been active in brokerage and management since 1978. He currently serves on local, state and national boards including: United Way, Greater New Orleans Inc., the New Orleans Police and
Justice Foundation, Greater New Orleans, Inc., Project Upstream, Inc. and the Real Estate Services Providers Council. How would you describe the state of the residential real estate market in the greater New Orleans area, both in terms of housing and rentals? The residential market in greater New Orleans is truly a tale of two cities: we have the bellwether markets like Garden District, Uptown, Lakefront and West St. Tammany all doing very well, with the hottest of the markets being Garden District and Uptown. These two markets are extremely inventory constrained, especially in the sub $500,000 price range. This scarcity has caused an abnormal price increase. For instance, even though we only experienced a 1 percent increase in the number of closed sales taking place (in Garden/Uptown ) during a rolling 12 month period, we have seen an almost 15 percent increase in total sales volume due to rapid price increases on a per-sale basis. This lack of availability has also created winners in close by neighborhoods, as we have seen buyers instead purchasing in Mid-City, Lakefront and the Bywater/Marigny markets. Conversely, the markets are showing steady but essentially flat home sales in East St Tammany. The river parishes have seen very lackluster sales numbers by comparison. Where do you see the market going? Have we peaked or is this a new baseline? Overall, the housing market continues at a strong pace and we expect that we will likely finish out at 5 to 6 percent overall growth in sales volume activity, with half of the growth coming from price increases and the other half from a higher number of residential sales. What do you think is the hottest upcoming neighborhood/market? In terms of overall activity, they remain the Garden District, Uptown, Mid-City, Bywater/Marigny, West St Tammany and Lakefront. Millennial buyers are wanting to live closer to the city, and as rental rates have risen to record highs, more and more of these buyers are realizing that they can change the financial trajectory of their lives by purchasing and growing equity in something rather than paying rent. We are already seeing significant movement into the purchase market. The last available numbers are that the net worth of a United States home owner is 41 times that of an apartment renter. There is a very causal relationship between those facts.
A Rare Breed Fidelity Bank President & CEO Alton McRee explains the pros and cons of being one of the few mutual banks in the state. Fidelity Bank is not for sale, and never can be. “We’re a mutual bank, which means we’re owned by our depositors,” explains bank President & CEO, Alton McRee. “That means unlike a stock bank, we cannot be purchased.” Mutual banks were common when Fidelity was founded in 1908, back in a time when laws didn’t require banks to have significant capital. “As customers did business with a bank, they would pledge a small amount of their deposits to help capitalize the institution,” McRee says. In today’s drastically different regulatory environment, mutual banks have been slowly disappearing. “Out of the 130 Louisiana chartered banks, only 11 are mutuals,” he says. What has happened to the mutual banks over the years? Most, says
Driving our markets forward are two huge factors: one being tremendous pent up demand as household formations continue to grow and home ownership costs remain affordable relative to incomes. Additionally, mortgage financing is cheap today and has become more and more available the further we get away from the 2008 financial crisis and the resultant over-tightening of mortgage financing requirements. What are the challenges for residential, moving forward? Challenges will continue to be trying to buy in a very low inventory market and economic uncertainties relating to the energy sector — particularly unemployment rates in the all-important oil fields and oil services industry.
RES I D EN T I A L
Lynda Nugent Smith, CRS, GRI Risk Management Broker Keller Williams and Chair of the Louisiana Real Estate Commission
A 44-year veteran of the real estate industry, Lynda Nugent Smith was the first team leader/manager for Keller Williams in the state of Louisiana. Proficient in residential, commercial, new construction, land development and condominium conversion projects, Smith currently works with her daughter Lesha — 2016 president of NOMAR — and son-in-law, Michael, as The Nugent-Freeland team, one of the most successful real estate teams in the Metro area. Her honors include Realtor of the Year for the Louisiana Realtors Association in 2010 and New Orleans Metropolitan Association of Realtors (NOMAR) in 2007. She is a past president of NOMAR, the Home Builders Association of Greater New Orleans and the Jefferson Economic Development Commission (JEDCO).
McRee, have converted to stock banks. The reason? The ability to raise capital. “Mutuals have no way to raise money other than to earn it,” he says. “Stock banks, however, can raise capital through the sale of stock in the bank.” Headquartered on St. Charles Avenue, with 18 full service branches in the Greater New Orleans area, Fidelity, McRee says, isn’t going anywhere. “We’re fortunate to be one of the strongest capitalized banks in the state,” he says. “We’ve always been known as a mortgage lending bank and we’ve recently expanded on that with the acquisition of NOLA Lending in January of 2014. We’ve also expanded our services since 2007 as a community commercial bank. That means we now offer a wide array of services for businesses and consumers. We are using our solid base of 108 years of experience and building on it in a way that is relevant to today’s changing marketplace.
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City Planning Commission Executive Director Robert D. Rivers, GCR Senior Planner Nathan Cataline and HousingNOLA Executive Director Andreanecia M. Morris present on the city’s Master Plan at the New Orleans Redevelopment Authority (NORA) for the American Planning Association New Orleans.
How would you describe the state of the residential real estate market in the greater New Orleans area, both in terms of housing and rentals? I am happy to say that the real estate market in Metro New Orleans is stable. The housing market is at a steady pace in both sales and rentals. The rental market is a bit tighter, especially in light of the recent flooding to our west. We have still had a number of commuters back and forth between the Baton Rouge and New Orleans areas so some of these people are returning. Like everything else in the city, each neighborhood is a bit different from the next, so some are just a bit more stable and “hotter” than others. Where do you see the market going? Have we peaked or is this a new baseline? The market is holding it’s own but I do see some slowdown in certain markets and price ranges. We have had a good influx of medical new hires that have been taking up some of the inventory. A lot depends on the age and family makeup as to what communities are most suited to the households, but it seems to be somewhat balanced. Some neighborhoods may have, at least temporarily, reached a saturation point on pricing. But the old 1, 2, 3 of priority still holds true: location, location, location. What do you think is the hottest upcoming neighborhood/ market? There is still much demand in the price ranges that give you the most bang for your buck, so neighborhoods that provide an upside potential for good future return on investment and opportunity for growth are seeing the best gains. Some parts of New Orleans where renovations are ramping up, as well as parts of St. Bernard and Arabi, are providing good shelter for reasonable pricing. Schools in St. Bernard are also highly ranked and that is appealing to growing families. What are the challenges for residential, moving forward? It depends on where you want to live. So many parts of the metro area are just built out (most of East Jefferson for example) and present re-development opportunities, but new construction land is just not readily available and very costly. The more requirements and costs that are inflicted by our local governments on property owners, potential developers and builders, the less available both homes and rentals may become. It is also a concern of mine that as new FEMA maps come out — taking large areas of homes out of flood zones that may not require 48
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flood insurance — people may drop flood policies. This would be the worst possible decision that property owners and renters could make. Lessons learned from Katrina and the Baton Rouge area need to be remembered. Keep your flood insurance, and if you don’t have it, get it!
A FFOR D A B LE H OUS I N G
Andreanecia M. Morris Executive Director, HousingNOLA
Andreanecia Morris founded HousingNOLA after spending 20 years working to create affordable housing opportunities in the Greater New Orleans area in both the public and private sector. A 10-year partnership between the Greater New Orleans Housing Alliance (GNOHA), the Foundation for Louisiana, the City’s Office of Housing and Community Development, and dozens of public, private and nonprofit organizations, HousingNOLA is working to address the need for 33,600 additional housing opportunities in the city by 2025. Morris also serves as president/chairwoman for the GNOHA Board of Governors. In April 2016, UNITY of Greater New Orleans named Morris its Outstanding Advocate for Affordable Housing. Could you describe the situation in the New Orleans area in regard to affordable housing? How do we compare to other cities of the same size? While many cities are struggling with affordability, New Orleans is unique. Though the housing issues we face are diverse — whether it’s skyrocketing rent, soaring insurance costs, substandard rental conditions, or, for many of our residents, barriers to obtaining housing — these problems are all interrelated and must be addressed as a whole. Almost 60 percent of New Orleanians spend more than a third of their income on housing and decision makers don’t prioritize housing because of the stigma associated with the term “affordable housing.” The housing market in the City of New Orleans and the State of Louisiana are precariously balanced and poised to falter
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without deliberate intervention. In New Residential and hospitality continues to grow in the Central Business District Orleans there is now a sense of urgency (CBD), home to the New Orleans Ernest around the issues of equity, displacement N. Morial Convention Center. and the right of self-determination for neighborhoods. Can you talk a bit about the highlights of the HousingNOLA 10-year strategy and implementation plan? The HousingNOLA 10-year Strategy and Implementation Plan, released on December 10, 2015, indicates the need for 33,600 additional affordable units in the city by 2025. Further, the data clearly shows that wages have not come close to mirroring the dramatic rise in housing costs. Since 2000, New Orleans home values and rents have both more than doubled. Fifty-five percent of New Orleanians are now “cost-burdened,” spending more than a third of their income on housing costs. The city and reasonable tax valuation for affordable housing multi-family ranks second in the nation for the percentage of renters paying more properties; and than half of their income on housing (37 percent). • With Housing for Resilient New Orleans, the City of New Orleans HousingNOLA aims to facilitate the creation of 5,000 affordable is coordinating disposition efforts of HANO, NORA and the City with housing opportunities by 2021, encompassing 2,000 rentals, 1,500 available funding (HOME, Low Income Housing Tax Credits, and home purchases, and 1,500 units for people with special needs, such the Neighborhood Housing Investment Fund) for affordable housing as the homeless, the elderly, veterans and people with disabilities. development to create the highest possible number of affordable units. HousingNOLA also calls on local and state officials to identify Housing for Resilient New Orleans also insures that the New Orleans dedicated revenue sources to preserve and expand an additional Redevelopment Authority and HANO continue to prioritize residential 9,080 safe, affordable homes for all New Orleanians by 2025. development on their available inventory. HousingNOLA established goals and strategies to inform the But personally, I’m most proud of the fact that we’ve been able to creation of affordable housing options for all New Orleans residents. develop a plan with citizens and decision makers at the table and It guides policy makers in determining what funding and policy for continue to keep all parties engaged and open to addressing the issue. housing should look like, based upon what New Orleanians want. What is the biggest challenge in tackling affordable housing? How Since responsibility of this plan goes beyond the realm of our elected can it be overcome? officials, this plan will live on even as mayors, city councilmembers The need for a comprehensive housing plan in New Orleans has and other elected officials come and go. Inclusiveness and become very clear. Unfortunately, too many refuse to admit that community participation in developing the housing plan are the two there is a problem around housing, instead focusing on symptoms most important factors in determining whether HousingNOLA is a instead of systems. This makes our efforts even more vital — we success. The diversity of participation is reflected at every level of the must continue our strategic advocacy, aggressive engagement and HousingNOLA process. innovative effectiveness to shepherd meaningful change through What accomplishments are you proudest of in terms of addressing sustainable impact. this problem? THE CBD The 10-year Strategy and Implementation Plan has been embraced by New Orleans housing advocates and city leaders. The following major policy victories have already been achieved: • The City of New Orleans’ Neighborhood Housing Improvement Fund (NHIF) has been dedicated to homeowner and renter rehabilitation in order to create neighborhood stability across the city; • We worked with the City of New Orleans City Planning Commission Director, Commercial/ Investment to begin a study on mandatory inclusionary zoning; Brokerage, Corporate Realty, Inc. • The Housing Authority of New Orleans (HANO) has implemented With a career in real estate that the criminal background check policy it adopted in 2013; has spanned 35 years, native New • FEMA has reclassified East Bank neighborhoods as Flood Zone X Orleanian Hayden Wren has been which should result in lower flood insurance costs; actively involved in virtually every • We coordinated with local stakeholders as a part of the Energy facet of commercial and investment Efficiency for All (EFFA) coalition, a national collaboration to promote brokerage, but with a specialty in the energy efficiency policies in multifamily and affordable housing; sale/acquisition of Central Business • We worked with the Louisiana Housing Alliance and Capital Area Development (CBD) properties. He has participated in an excess of $250 Alliance for the Homeless to educate developers on using Medicaid million in sales in the CBD alone. to fund supportive services through the annual State Housing and Wren is a five time F. Poche Waguespack award winner, an annual Homeless Conference; award given for the largest volume of commercial transactions • Governor Edwards signed SB610 a bill that calls for predictable
Hayden W. Wren, III., CCIM, SIOR, CPA
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generated in the Metro New Orleans area, and was recently inducted into the New Orleans Metropolitan Association of Realtors (NOMAR) Commercial Investment Division’s (CID) Hall of Fame. How would you describe the growth and current status of the CBD? The Central Business District (CBD) is a tight, well-defined pocket of bustling activity that combines a strong tourism base anchored by 20,000-plus hotel rooms and world-class restaurants all within walking distance. The CBD is also the home of the state-of-the-art Ernest N. Morial Convention Center and the world famous National World War II Museum, and serves as the center for financial, legal, accounting, oil and gas and major banking institution activities in the Metro New Orleans area. There are 14 Class A office buildings, featuring 8.9 million square feet of space that house the majority of office users. The CBD has a very strong residential community of approximately 5,000 residents located primarily in the Lafayette Square Historic District and the Warehouse Historic District. The New Orleans CBD is very much alive, 24 hours a day, every day. Are there certain sectors that are fueling this growth? All of the market segments — i.e. office, hospitality, retail and residential — in the CBD are stable. However, the residential and hospitality segments continue to grow. The hospitality market will soon be rolling out an additional 1,200plus rooms. In addition, the residential market continues to introduce new product to an already active market. The market is so strong that the Loyola Avenue corridor — from Poydras Street to Canal Street — has seen no less than a half dozen formerly economically obsolete, shuttered, older office buildings being converted into apartments and condominiums. What does the CBD mean to the Metro Area? The CBD is very much the key link to the New Orleans Metro area. In my opinion, it is the linchpin and the showpiece of Metro New Orleans. As the CBD goes, so goes New Orleans and the Metro area. Looking inxto the future, how do you see this area changing? In the short term, I think you will see a continuation of residential and hotel development. To provide for the burgeoning population, I do think you will see the settling in of service-type facilities to accommodate the needs of the expanding populous. You might even see another competitor to Rouses, but on the east side of the Warehouse District. Long-term, urban living will continue its growth (it’s already beginning) in the Marigny and Bywater. The inventory stock in these areas provides alternatives to the high cost of property acquisition in our CBD.
MORTGAGES
Guy Williams President and CEO Gulf Coast Bank & Trust
One of the co-founders of Gulf Coast Bank & Trust in 1990, Guy Williams has served as president and CEO for the past 25 years. When not leading his own institution, Williams has provided leadership in the banking industry as well, serving as president of the Louisiana Bankers Association and on the board of directors of the American Banking Association. He has also brought his 52
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time and talents to the boards of Habitat for Humanity, the Louisiana Housing Corporation, the Finance Authority of New Orleans, Pilots for Patients, Crossroads Louisiana, Community Sailing of New Orleans and Baptist Health Ministries. Do you think Brexit will affect mortgage rates in the U.S.? Brexit will probably have very little effect on U.S. markets but may, if it slows the European recovery, delay the Fed’s increase in U.S. rates. There is also a good chance that Theresa May, the English prime minister, will handle the transition well and Britain will emerge stronger with a more business friendly economy than continental Europe. How do you see the future of interest rates in New Orleans and the Southeast Louisiana region? We expect at least one increase in short term rates before year end. This will affect the prime rate by one-quarter of one percent and may slightly increase short-term consumer yields. Long-term rates will probably drift higher, but very slowly, unless the economy really begins to grow rapidly. Unfortunately, most economists don’t expect rapid growth until 2017, or even 2018, and the more pessimistic economists expect slow growth to be the new normal. We disagree, and expect 3 percent growth to return in the summer of 2017. How has additional regulation affected the mortgage market overall? The Consumer Financial Protection Bureau (CFPB) has hurt consumers. Because of the new CFPB regulations, all mortgages are now more expensive to close and take longer. Unfortunately, Congress set up CFPB to be unaccountable so there is nothing we, or our customers, can do to correct them. It is also more difficult for many of our typical Louisiana borrowers to get home loans; this includes people who are paid in cash, such as musicians, service workers, and fishermen. It is also now harder for folks who have a spotty employment history or several part time jobs to qualify — an unfortunate example of Congress empowering an agency to hurt the poor.
OFFICE AND RETAIL
Stephanie Hilferty
Representative District 94, Louisiana State Legislature Sales and Leasing Associate SRSA Commercial Real Estate
Stephanie Hilferty has represented a variety of national, regional and local tenants in office and retail, brokering over 11.5 million in sales and leasing transactions last year. In 2015 she also became the first millennial to serve the New Orleans area in the state legislature, where she serves as representative for District 94. Throughout her career, Hilferty has been a member of the Commercial Investment Division of New Orleans Metropolitan Association of Realtors, X Team International (retail real estate brokerage group), and the Urban Land Institute, where she served as the Young Leaders chair. In 2011, Stephanie received the highest first time recipient award from the New Orleans Metropolitan Association of Realtors (NOMAR).
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How would you describe the status of the marketplace for office and retail in New Orleans? There’s a strong demand for retail space, especially in Orleans Parish. Just recently one of my big box retailer clients asked about MidCity and New Orleans East, both new markets for this retailer. Due to the density in Orleans Parish, understandably there are sensitivities about overcrowding and parking in some of these neighborhoods. Both markets are underserved and I would expect to see continued development in them. Metairie, especially Veterans Boulevard, remains a prime destination for retailers entering the market. The biggest hurdle for these retailers is understanding our decentralized development and limited amount of land. Many retailers feel comfortable being in a Target anchored center or a lifestyle center — both of which are in short supply in our market. Our Target is two levels and located in a former Maison Blanche with no outparcels. Retailers have to get creative and adapt to a less traditional footprint. I’ve seen the office market soften in the past few months. I did a rough tally of sublease space in the Jefferson Parish market, and we have roughly 100,000 square feet of sublease space on the market. Several of the sublease blocks are downsizing engineering firms engaged in the oil and gas industry due to the decline in offshore-related services. Nationally, for several years, the trend in office has been toward an open, shared office space, which increases space efficiency as well as enhancing opportunities to collaborate. This means the tenant previously occupying 10,000 square feet may now occupy 7,500 square feet or less by eliminating private offices in favor of cubicles. That can have a compounding effect in the market. How have changes in the oil industry and tech sector affected the marketplace? Some retailers in parishes like Lafayette and Terrebonne are seeing an effect in sales as a result of low oil prices, but I have not heard of retailers in Jefferson or Orleans experiencing a dip. Changes in the oil industry have a bigger effect on the office market when engineering firms downsize as a result of low oil prices. Overall, the New Orleans Metro area’s economy has diversified to an extent to have a buffering effect on oil price fluctuations. The tech sector represents a bright spot and a positive diversification in our local economy. The digital media tax credit, offered by the state, has been successful in attracting companies to New Orleans such as High Voltage Software, inXile Entertainment, and Smashing Boxes, a digital product agency. Twenty-Five companies in the New Orleans and Jefferson Parish markets took advantage of the program over the past two years. Even with recent cuts to the program, the tax credit remains one of the most generous in the country. Some of these companies
have partnered with Louisiana universities in training students for the industry. Tech sector jobs are solid middle-to upper-income salaries and typically attract younger workers. Particularly in the CBD, we are seeing the market respond with apartments and condos within walking distance of shopping, dining and work. I wouldn’t tie this market reaction exclusively to the tech sector, but it is certainly a contributing factor. What’s driving inventory? Large-scale projects, such as the University Medical Center and Veterans Affairs Hospital, have touched off a series of residential, office and retail developments in Mid-City. Developers are getting lease commitments from retailers or office tenants prior to coming out of the ground, so specific demand is driving development. Once a development is coming out of the ground 70 to 80 percent is usually preleased. Partially due to our small geography and fortunately due to high demand, we have very little excess retail inventory. n
Market SUmmary — July 2016 New Orleans
1.7 million SF
Commercial Space For Sale
34.0 million SF
Commercial Space For Lease
Jefferson County
1.8 million SF
Commercial Space For Sale
3.2 million SF
Commercial Space For Lease
2,594 acres
320 acres
Land & Farm For Sale
Land & Farm For Sale
$208.1 million
$240.9 million
Metairie
St. Tammany County
Total Sale Price
451,690 SF
Commercial Space For Sale
1.1 million SF
Total Sale Price
4.4 million SF
Commercial Space For Sale
1.8 million SF
Commercial Space For Lease
Commercial Space For Lease
7 acres
3,524 acres
$70.3 million
$430.1 million
Land & Farm For Sale Total Sale Price
Land & Farm For Sale Total Sale Price
Current Lease and Sale Prices
New Orleans
Jefferson
Metairie
St. Tammany
Property Type
Asking Asking Lease Rate Sale Price
Asking Asking Lease Rate Sale Price
Asking Asking Lease Rate Sale Price
Asking Lease Rate
Asking Sale Price
Industrial
$1.10 PSF
$43.66 PSF
$5.36 PSF
$50.93 PSF
$5.39 PSF
$121.76 PSF
$6.49 PSF
$27.22 PSF
Office
$17.15 PSF
$66.73 PSF
$17.28 PSF
$130.38 PSF
$18.78 PSF
$142.85 PSF
$16.70 PSF
$132.90 PSF
Retail-CommerciaI
$16.05 PSF
$141.86 PSF
$12.89 PSF
$117.55 PSF
$15.73 PSF
$131.60 PSF
$13.49 PSF
$39.97 PSF
Shopping Center
$12.59 PSF
$54.35 PSF
$15.31 PSF
$89.90 PSF
$16.67 PSF
-
$13.72 PSF
$113.09 PSF
Vacant Land
$1.16 PSF
$0.70 PSF
$1.64 PSF
$6.96 PSF
$2.21 PSF
$31.82 PSF
$2.17 PSF
$2.19 PSF
Hospitality
-
$86.69 PSF
-
$123.08 PSF
-
$123.08 PSF
-
$100.39 PSF
Multi-Family
-
$116.35 PSF
-
$57.93 PSF
-
$167.51 PSF
-
$51.69 PSF
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All statistics courtesy of Louisiana Commercial Database, LLC
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Haven for Hope A low barrier shelter in San Antonio, Texas
Low Barrier Shelter on Its Way Help for the homeless problem is coming. New Orleans has a very visible homeless problem. We all know that. What you may not know is that a new low barrier homeless shelter is targeted to open sometime next year. Unlike other area shelters, a low barrier shelter is one at which homeless can find shelter any time of the day or night. They can also use the facility even if they’ve been drinking, as long as they do not cause trouble with other residents. “With some of the other shelters, you have to arrive by early afternoon each day to have a chance to get in for the night,” explains Kurt Weigle, president and CEO of the Downtown Development District (DDD) of New Orleans since 2003. Weigle says the DDD has identified a site for the yet-to-be-named shelter, which he says will house an estimated 100 men and women.
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“It’s not just going to be a holding area,” he says. “The plan includes on site connection to services including case workers, drug and alcohol counseling and mental health services.” While the DDD is unable to release specifics of the facility, Weigle says the project was inspired by a low barrier shelter in San Antonio called Haven for Hope (pictured above) that includes a covered courtyard to allow those that prefer to sleep outdoors to do so in a safe setting. Weigle says it’s an idea the DDD is considering. “The low barrier center is going to be a big part of addressing the homeless problem downtown,” says Paul Richard, president of the New Orleans Metropolitan Association of Realtors (NOMAR) Commercial Investment Division (CID). “The homeless problem is CID’s highest community/social priority. Anytime there’s a high homeless population in an area, it affects the way the market views that area. The less homeless, the more the market is viewed as stable. We are definitely advocates for this project.” n
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Perspectives A closer look at hot topics in three southeast Louisiana industries
60 Education
66 Healthcare
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Perspectives | Education
The Gayle and Tom Benson Science and Technology Complex at St. Mary’s Dominican High School incorporates form and function with details reflecting the school’s 156-year legacy and its Irish roots.
Bringing Industry Into the Classroom Local high schools vary in their attempts to prepare students for the workforce. By Raquel S. Derganz Baker
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ducators across Southeast Louisiana are implementing a variety of tools to make sure our area students have what it takes to make it in life. Biz New Orleans took a look at what some of the most established schools in New Orleans are doing to prepare the next generation of our city’s workforce.
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Educating for the Business World Garrett Mason, director of innovation and design at St. Martin’s Episcopal School, says the school is f lipping the traditional classroom “on its head” with its recently added Innovation and Design Program and the new Gibbs Family Center for Innovation and
Photo Timothy Dunford
St. Mary’s Dominican High School students work on a project by the Disputatio Room, on the second floor, directly above the Adoration Chapel. The Disputatio Room is a dedicated place where students, faculty, alumnae, visiting educators and professionals come together for in-depth discussions integrating faith and reason.
Design, which includes a build shop, a wood shop, a production studio and media center with breakout classrooms. The program enables students to take a ‘hands-on’ approach while learning skills they can use on any job. In creating the Innovation and Design program, Head of School Merry Sorrells spoke with CEOs as part of the school’s research into which skills and mindsets are most valuable in the business world. “What we have found is that collaboration is No. 1 and problem solving is No. 2,” Mason said. “The classes we offer are highly engaging. The students themselves are actually doing problem solving and applying what they’re learning instead of sitting and being passive recipients of information.” With a 100 percent high school graduation rate, Sorrells feels the education students receive at St. Martin’s will not only prepare them for a four-year college, but also for life. “We are teaching them critical thinking and problem solving,” she said. “We also give students a spiritual foundation as an Episcopal school, which I think is becoming more and more rare.” Strides in Science At St. Mary’s Dominican High School, President Dr. Cynthia A. Thomas notes three traits that make the girls at St. Mary’s ready for whatever career path they choose. “They have the rigor, they have the discipline, and they stick with projects,” she said. “They aren’t going to say ‘Oh this is too hard’ because they have been through a hard academic program. Also …you need to be in groups and learn from one another through collaboration.” The school added a huge resource for study and collaboration this year with the dedication of the Gayle and Tom Benson Science and Technology Complex on April 22. The $10 million, 16,940-squarefoot complex includes state-of-the-art science classrooms and labs, the Ermina Wadswoth/Azby Fund Technology Center and the “technology free” meeting space, the Disputatio Room.
Photo St. Mary’s Dominican High School
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As part of the rigorous studying and discipline program, Matthew Foss, physics teacher and science department chair, said the school is also working on improving ACT test scores through the new complex. The science portion of the exam tests a student’s ability to think and act like a scientist. “What we are doing this year is designing some labs that mimic the labs that they read about on the ACT,” Foss said. Engineering the Future Students at Lusher Charter School are completing an advanced curriculum in engineering, science and art, which prepares them for college and the career of their choice. Through Project Lead the Way, students get four years of intense engineering classes, principal Wiley Ates said. “What the course does is prepare them academically and gives them a lot of experience, but it also lets them know what’s required to be successful in the field,” Ates said. “By the time they have gone through the rigorous program, they know whether they have the desire and background they need to be successful in an engineering school.” The school also has a biomedical program — now in its second year — that Ates said offers a pathway into various professions in the workforce relating to medicine and research. Students with a bent more toward art can be a part of Lusher’s four-year Certificate of Artistry Program. Director of College Counseling Sam Wagner said graduates are fully prepared to attend any college they wish. Members of last year’s graduating class were accepted to colleges in 24 states and four countries.
St. Martin’s Episcopal School’s new Gibbs Family Innovation and Design center includes a build shop, wood shop, a production studio and media center with breakout classrooms — offering students the opportunity to receive hands-on experience in a wide variety of careers.
Doing Double Duty 15 local high school students also graduate with certification from Delgado. This past spring, 15 students from New Orleans earned their high school degrees while simultaneously earning a Certificate of Technical Studies (CTS) after attending a Technical Skills Expo (TSE) hosted by Delgado Community College. Graduates included eight students from Grace King High School in Metairie and seven from Warren Easton Charter High School that have become known as the “Super Seven.” Beginning in their junior year, the students attended both high school classes and courses at Delgado courses. “I am proud of my classmates because we’re African-American men and a lot of us are only looked at like a negative statistic,” said Jamon Williams, a Super Seven graduate. “I feel like we made history.” Within two days, the students received their high school diplomas and earned CTS credentials in residential electricity from Delgado. Since graduation, many of the students have secured employment in the
Financial Literacy from the Real World Girls at the Academy of the Scared Heart are learning the ins and outs of the business world through a new Mathematics and Financial Literacy class. The class is being taught by the owner of PJ’s Coffee on Magazine Street, Aubry Miller, who is sharing her wisdom with 62
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local workforce, including jobs at Uptown PMR and Dimitri Dermatology and International Brotherhood of Electrical Workers. Others are enrolled in advanced training programs at University of New Orleans, Delgado Community College and University of Louisiana Lafayette.
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Jesuit High School students in their Biology II AP class participate in a DNA Electrophoresis lab led by a visiting alumnus. Students compared DNA samples similar to the way CSI labs use DNA fingerprints to help determine guilt or innocence.
They are all wiped clean, reformatted and updated with the newest version of programs.” Brother Martin High School is one of the schools with a bring your own device policy. Technology Coordinator and Computer Science Department Chair, Craig Zeller, said students use their devices to take notes, access electronic textbooks and for organizational purposes, while staying in contact with their teachers though email or through the school’s learning management system. Zeller said his goal in working with the students is to have them become fluent in technology. “If you can troubleshoot your own device and understand why it’s not working, you can help other people, either as a professional or just as a friendly neighbor.”
seniors both in the classroom and at her place of business. “We just started the class this year — it’s very exciting,” Miller said. “The girls were required to take an online course over the summer sponsored by IberiaBank, and it taught them about personal finances, and it taught them about business finances as well.” The purpose of the online course, Miller said, was to give girls background knowledge before the Mathematics Financial Literacy class began. For the class, girls must work a certain amount of shifts a month at the coffee shop. “The girls will do their shifts with one of my employees so it’s more of a learning experience. It’s not really about them manning the store,” Miller said. “(In the classroom) every week has a different topic, so we’ll go from leases to insurance, real estate, taxes, payroll, and hiring and firing. We’ll also have guest speakers come throughout the year.” At the end of the year, the girls will be required to submit a business plan on their dream coffee shop. “In the end, it’s their creation,” Miller said. “I wanted them to take the business plan with them so that after Scared Heart, if they do find themselves in the position to be an entrepreneur, they can reference it.” Teaching with Technology Holy Cross School Director of Public Affairs, Shelly Raynal, said every student enrolled in the school uses some sort of technology to further their education and prepare them for college and then the workforce. “For our younger students, pre-K through fourth grade, they all use iPads,” Raynal said. “Our fifth- through 12th-graders use the one-toone laptop program.” With the iPads and laptops, students are able to upload projects and papers to teachers who can view them online. “Other schools have laptops but have a B.Y.O.D. or ‘bring your own device’ type of thing,” she said. “(At Holy Cross) we provide those laptops for our students. Students turn them in at the end of the school year. 64
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Leadership and Professionalism Through the St. Francis Borgia Leadership Institute, students at Jesuit High School are getting the leadership skills they will need to be successful in life, according to Jeremy Reuther, Jesuit’s director of communications. “Some years we will do a leadership retreat at the beginning of the year, where we invite the students in leadership positions in different organizations or clubs and teams to come and do leadership formation,” Reuther said. “We are teaching them the virtues of being a leader.” An annual career day also allows Jesuit students to interact with professionals in the workforce. Reuther said the school brings in 30 to 40 different alumni in different professions to meet with upperclassmen. Juniors and seniors meet with alumni to listen to a half-hour presentation on their respective careers, while younger students get a general presentation from one of the alumni to make sure every student at Jesuit has the opportunity to hear about different careers. Girls at Ursuline Academy also have the opportunity to speak with professionals during their own career day and as part of the school’s shadow program. Communications Director Katharine Uhle said the school brings in between 30 and 50 parents, alums and community volunteers to speak with students. Through the shadow program, students have the opportunity to work alongside professionals, gaining insight into potential careers. “Last year we had about 60 out of our 80 graduates that were linked up with a mentor,” Uhle said. “They got to go to the person’s place of employment to learn what it’s like in their business.” Ulhe said the students enjoyed being able to work with a mentor in a professional setting as opposed to having someone come to just speak with them. “Ursuline as a whole has put out some pretty amazing women in the business world,” Uhle said. “We’ve got the first female district attorney in New Orleans who is an Ursuline grad. We had a former U.S. senator and the chief officer for GE, who is also the president of the GE foundation. We’ve got women all over the place.” n
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Perspectives | Healthcare A front view of Poydras Home, a retirement community at 5354 Magazine St.
Aging in Louisiana What you need to know By Tatyana Meshcheryakova
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ith the millennial generation representing almost one-fourth of the total U.S. population, a near doubling of the over-65-year-old population between 2010 and 2050 is anticipated. Studies also show that millennials will have a higher life expectancy and would demand better quality of life as they age compared to previous generations. However, this rosy future may be tempered by factors such as chronic disease, ageism, financial insecurity due to the recession, and massive student debt. How does all of this affect the home health care, assisted living and travel nursing/private nursing industries?
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Photo courtesy of Poydras Home
Customized and Individually Tailored: The New Senior Care “As baby boomers age and the millenials are coming along, they are going to demand a different level of care,” notes Gifted Healthcare CEO P.K. Scheerle. “The genesis of the assisted living is, ‘I want it my way when I’m old.’” Right now, “my way” for baby boomers means they want to stay at home as long as possible. To accommodate, the industry offers a highly customized medley of services tailored to one’s needs, in a tiered system, with a possibility of adding or cutting back on various services as the need increases or diminishes. So, what are the options? “In 2012 the A ARP ranked Louisiana as 50th in the country for this category [assisted living communities],” says Richard Totorico, executive director at Trace Senior Community, noting that nursing homes still dominate in Louisiana. “However, the proportions are quickly changing,” he adds. “In the last five years, Louisiana has gone from 86 assisted living communities to 138. We see a tremendous need in Louisiana.” Jason Hemel, principal at Peristyle Residences, says that although Louisiana’s assisted living offerings have been lacking, “that has been quickly changing across the state.” The offerings, he says, are also becoming more diversified. Who is a good fit for assisted living? “Assisted living care is often tiered,” explains Jennifer Brammel, marketing coordinator of Poydras Home. “Basic assisted living services provide the resident with housekeeping support, meals in a dining room environment and access to a full activities calendar. Once ADL (activities of daily living) support is needed with such things as dressing, bathing and transferring into and out of bed, a midprice range is reached in the tier. When help is required for more than two ADLs, the top-tier pricing is reached.” Brammel advises families to consider some questions, such as, “Does your mother or father need help mostly with errands and general home upkeep? Or are they reaching a point that they need help with ADLs? Is your loved one experiencing loneliness, isolation or a lack of stimulation?” Totorico also advises families to consult with their family physician to see if their loved one could possibly stay at home. “Physicians can give an honest and objective opinion if a senior is at risk,” he says. Sean Arrillaga, also a principal at Peristyle Residences, defines an ideal candidate as someone who requires assistance with two or more ADLs on a daily basis. The transition to assisted living may not be as difficult as you’d think. “Often the adjustment period... can be longer for the resident’s family members than for the actual resident,” shares Poydras Home Vice President of Resident Services Erin Kolb, MSW, LCSW, NFA. “It can be a relief for a resident to let go of the daily responsibilities of meal preparation and housekeeping, and comforting to know that help is readily available for personal care. A new resident can also experience a personality bloom when surrounded by their peers.” Overcoming the Misconceptions: Yes, You Can Afford ALF When it comes to assisted living facilities (ALFs), Totorico says the main misconception is that they lie beyond the reach of the typical family. “When the cost of food, insurance, utilities, attendants and transportation is taken into account, we find that BizNewOrleans.com OCTOBER 2016
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Cargivers provide one-on-one assistance with both personal care and companionship/ homemaker services.
up to 100 days per year, while Medicaid will pay for custodial care in a nursing home if the resident qualifies financially. “This process is much more stringent than Medicaid’s regular health insurance program,” he adds. There are also VA-specific nursing homes, and the VA offers the Aid & Attendance benefit, which can be applied to ALF cost and may pay for a few hours of sitter services. Bridge loans and reverse mortgage funds may be applied to any setting, but these programs follow the individual and do not directly reimburse senior living or healthcare costs.
most can easily afford to live with us,” he says. So, how does one fund living in an ALF, and what’s included? The cost varies greatly within the industry, depending on the type of room, level of care and location. Totorico advises families to not only ask in detail what’s included in the monthly cost now, but what it “would look like in the future should a loved one’s needs change.” According to Arrillaga, in New Orleans, comprehensive ALF costs can range from $3,000 to over $7,500 per month, with most facilities offering a base pay that covers room, board and two ADLs. “Memory care settings are typically the most expensive,” he says. According to Arrillaga, Medicare pays for skilled nursing facilities for 68
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The Home Care Option If your loved one needs one-on-one attention, regardless of whether he or she is in hospital, at home, in a nursing home or an ALF, you can supplement by hiring a caregiver through an agency like Right at Home. According to Owner Loren Berot, the industry average is two caregivers per client. Services are individually tailored and Right at Home charges by the hour, not tiers: $19 to $21 per hour for personal care services (bathing, grooming, etc.) and $18-$20 for companionship/homemaker services for people who can still, for example, shower themselves but may be at risk for fall. The latter services include things like making sure the client has taken their meds or has eaten. The services are covered out of pocket by long-term care insurance and, in some cases, by workers’ comp. The most common misconceptions when it comes to home care, Berot says, is often people “want a maid.” “We’re less expensive than a maid service... but we’re not that,” says Berot. “My caregivers are not housekeepers, they are not professional chefs. They make sure our clients get fed a nutritious meal, and they’re going to make sure the kitchen is clean when they’re done, but they are not there to clean windows or do baseboards or clean out closets.” “Smart” Aging and “Aging in Place” Like everything else today, aging has now gone high tech. Analiza Schneider of Home Care Solutions explains the concept of smart aging: “The current wave of new services and products to help with aging is in technology services — such as medical monitoring devices, remote emergency response systems, and medication reminder devices.” She adds that as quickly as new technology and practical applications are emerging, millennials should have access to many more ‘aging in place supports’ than we can even imagine today. Photo courtesy of Right at Home
Cost of care in the New Orleans area n
Aide/companion: locally, $17-$24 hourly; nationally, $20
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Caregiver: locally, $18-$21 hourly; nationally, $20
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Adult day care: locally, $60 daily rate; nationally, $69/day
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Assisted living: locally, $3,200-$6,500 (based on level of care); nationally, $3,600/monthly
Source: Home Care Solutions
Smart aging may gain momentum, as Louisiana “shares the nationwide challenges of both shortage of home caregivers, as well as limitations of Medicaid waiver programs for community-based funding of caregiver services at home,” Schneider notes. Private Nursing and Travel Nursing If your loved one needs medical assistance you may consider hiring a private nurse, even for a few hours a month. One local company, Gifted Healthcare, works with hospitals, ALFs and other facilities. It serves the New Orleans and Northshore areas, but its nurses travel both throughout and out of state. Company CEO P.K. Scheerle says there’s a great benefit to it: “When nurses travel, they bring home experience. They become better nurses from a wider range of experiences in the profession.” The average age for traveling nurses is 44, versus 24 for the average nurse, indicating they tend to be more experienced. Travel nursing is a quickly growing sector, but the supply is shrinking, says Scheerle, who cites a shortage of qualified nurses and increasing demand for nurses in different settings. “Plus, the job is only just beginning to pay well,” says Scheerle. Nursing Homes Living at home, even with assistance, is not for everyone. The state of Louisiana allocates a lion’s share of Medicaid money for institutional care versus community care, points out D. Scott Crabtree, president and CEO of Broadway Services, Inc./ Lambeth House. “The nursing home model has been, and still is, the primary focus of the Medicaid funds for long-term care in Louisiana,” he says. Louisiana currently has a moratorium on building new nursing homes, he explains, which includes private-pay nursing homes that do not rely on any federal or state funding. “Louisiana cannot be complacent in its public policy related to the aging of our citizens,” Crabtree says. “Opportunities exist for the state to use senior living as an economic force within the state. Specifically related to Louisiana, the number of residents in the state age 85 and greater will grow 84 percent by the year 2030 (when compared to the 2007 population).” Joe Donchess, executive director of the Louisiana Nursing Home Association, points out that although most prefer to stay at home as long as possible, the nursing-home setting is economically more feasible. “You cannot provide one-on-one care at an economical rate,” he says. “The efficiency factor is not there.” Donchess’ parting advice for families is to do your homework and remain realistic in your expectations. “One thing that family members have to understand is that their loved ones are in a nursing facility because their level of dependence is very high. Therefore, although there are certain things nursing facilities can do to care for their loved ones… they may not improve simply because improvement may no longer be a viable alternative for that person.” n BizNewOrleans.com OCTOBER 2016
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Perspectives | Law & Hospitality
Hotel Hurdles A look at the issues facing developers of downtown hotels By Maria Clark
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renaissance has taken place in downtown New Orleans in recent years. One by one, buildings that have stood vacant or underutilized for years have been transformed into luxury hotels and apartment buildings that are drawing a younger demographic to the heart of the city. This past year alone has seen the opening or reopening of the Ace Hotel, the Catahoula Boutique Hotel, the Aloft Hotel, the Q&C HotelBar, and the Moxy New Orleans in the Central Business District (CBD) and the Warehouse District. Many of these new hotels attract two markets: young tourists who want boutique 70
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accommodations and locals in search of new haunts. As of March of this year there were more than 38,000 hotel rooms available in the greater metropolitan area according to the New Orleans Convention and Visitors Bureau. However, the transformation from office building and furniture showroom to hotel, as was the case with The Ace Hotel, doesn’t come without its share of legal hurdles. With historic buildings, particularly in historic districts, developers have to comply with strict guidelines imposed by the city and preservation organizations to maintain the historic integrity of the building and its surrounding neighborhood while still serving a commercial and residential purpose. Photo courtesy of Q&C HotelBar
LEFT: The Q&C HotelBar — an Autograph Collection by Marriott hotel — at 344 Camp St. is among the hotels that have opened or reopened this year. ABOVE: There are currently approximately 38,000 hotel rooms serving guests in Metro New Orleans, according to the New Orleans Convention and Visitors Bureau.
“Possibly the biggest question I hear from developers has to do with land use,” says G. Wogan Bernard, a partner in Chaffe McCall’s business and real estate section. “They have to consider, ‘Can you take an old building and make it into a hotel?’ A hotel requires a lot of amenities that an office building didn’t necessarily have, such as parking space and other service entities.” Since a large percentage of hotel developments in downtown New Orleans are historic renovations, the developer has to follow guidelines put in place under the city’s comprehensive zoning ordinance, as well as guidelines set up by historic tax credit programs at state and federal levels. “Let’s assume you can do a mix-used development,” Bernard says. “The developer has to look at whether they are able to meet the parking requirement, whether they have the necessary service areas, and if they have to restructure certain parts of these developments to meet certain needs.” These questions fall under land use, which in New Orleans is determined by the city’s new comprehensive zoning ordinance. The CZO oversees land uses for each zoning district. It governs factors such as height limits, setback requirements, urban design standards, operational rules, and other regulations. It also sets requirements for the types of amenities needed per project. Despite setting strict guidelines, David Halpern, a partner in the New Orleans office of Kean Miller, says the historic tax credit programs and the new CZO have created a permissive view toward hotel development in the CBD and Warehouse District. “We are witnessing a robust tourism industry, coupled with the renewing effect of the biomedical corridor,” Halpern says. “There is a huge concentration of development happening downtown. People want to live in these neighborhoods again.” Photo Thinkstock
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Although it can be a legal hurdle for developers, the CZO functions as a mechanism to prevent the inf lux of tourists and new residents from creating a strain on city services in newly popular neighborhoods, such as the Warehouse District and the Central Business District. For example, the CZO sets a height requirement of 65 feet in the downtown neighborhoods on new buildings. This guideline is meant to limit the number of hotel rooms that can be added in a new construction or renovated building. The CZO also establishes a height restriction per f loor so that rooms have to be a certain height and ceilings can’t be lowered in order to create space for more rooms to work around the 65-foot height restriction. “It imposes necessary limitations on construction so that the integrity of a neighborhood stays intact while still allowing for new developments within those rules,” Halpern says. Bernard adds that because a hotel requires a lot of amenities, the developer has to look at what variances and waivers will be needed to make a project work. “People don’t realize you can only do so much with historical rehabs,” he says. “They have to consider how to balance maintaining the historical integrity of a building to fit with the needs of the hotel. “Certain hotels require the lobby to be on a higher f loor to make room for parking space or other amenities,” he adds. “The historic facade of a building can’t be tampered with. Look at the Queen and Crescent Hotel or the Ace Hotel, where the signage was not placed 72
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ABOVE: A shining example of a redevelopment of an historic building, the new Ace Hotel now occupies a 1928 building that previously served as a showroom for the Max Barnett furniture store at 600 Carondelet St.
on the actual building.” The Ace, at 600 Carondelet Street, is an example of the balance that developers face in creating a modern hotel in a historic building. The 234-room hotel opened earlier this year in an art deco building commissioned originally in 1928. The first two f loors were formerly used as showroom space for the Max Barnett furniture store. Domain Companies bought the nine-story building for $5.5 million in 2013 and hired architecture firm Eskew + Dumez + Ripple to oversee the renovation. “A historic building can often limit the opportunities for how the space can be used because of scale,” said Steve Dumez, the lead architect on the project. “With the Ace we needed column- free space to fit the need for open expanse of space on the first f loor.” Developers at the Ace incorporated additional retail and meeting space by building on an adjacent parking lot, thereby avoiding structural changes to the historic part of the building. “We were able to do new construction and build on the parking lot, which also allowed us to increase the guestroom count,” says Dumez. “Without that space we would have been very limited.” Developers often rely on historic tax credits to bridge the development funding gap. Design, environmental and development issues can often increase the cost of a historic Photo Fran Parente
renovation. Bernard says many developers find that tax credits can make the project more doable. There is both a federal historic tax program and a state historic tax program. Developers can utilize one or the other depending on the size and qualifications of the project. The federal historic tax program has no maximum cutoff. The program offers a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings that are “certified historic structures,” according to the National Park Service. Every year the program approves approximately 1,200 projects, leveraging nearly $6 billion annually in private investment in the rehabilitation of historic buildings across the country. At the state level, there is a 25 percent state commercial tax credit that was created in 2002 by the Louisiana Legislature to encourage the redevelopment of income-producing historic buildings in downtown development districts. To qualify for the program, rehabilitation projects have to exceed $10,000 in qualified rehabilitation expenses and must be completed according to set standards. Once the credits are earned they are fully transferable and can be carried forward for up to five years. Although these programs can help bridge the gap for costs that arise from redeveloping historic buildings, they provide a strict set of guidelines that also protect the historic structure. The renovation of the 108-year-old Jung Hotel property on Canal and LaSalle streets presents its own set of complications, says Allan McDonnel, president of McDonnel Construction Services. The firm was selected as the contractor to renovate the building, which sustained severe damage from f looding after Hurricane Katrina. For a time, the 600,000-square-foot, 17-story building was considered the largest convention hotel in the South, taking up one entire city block. Its renovation plans include a mix of retail, commercial, hotel rooms and apartments. The project is being financed in part through federal and state historic tax credits. “The building meets CZO requirements from a real estate perspective,” says McDonnel. “However, the building was constructed over three phases, and building codes have changed dramatically over that time, so we see a series of non-conforming issues.” The Jung Hotel first opened in 1907. Another section was added in the 1920s, followed by additions in the 1950s and the 1980s. Because the hotel was built over several time periods, it doesn’t fit modern codes when it comes to energy calculations, compliancy with the Americans with Disabilities Act and fire codes. “A building like this, that is not code compliant, will require us to look at factors such as widening corridors and reconfiguring stairs to meet modern building codes,” McDonnel says. Buildings are also required to have windows that can withstand 150 pounds of force, so the windows will have to be replaced as well. “Repurpose and reuse are popular terms in the development world right now in New Orleans,” adds McDonnel. “The Jung Hotel project falls under the umbrella of reuse since it is being brought back to its original use as a hotel. Upgrading the building to current building codes is the biggest task at hand.” Projects like this, Bernard says, can be a risk for developers. “Projects can often go over budget — nowadays the electrical is completely different than what you had back then,” he says. “Developers have to look at how to mitigate those risks and see if the plan works within the city codes. The plans for these developments are constantly adjusted to meet historical, cost and legal requirements.” n
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Guest Viewpoint
Rebuilding a Business After a Flood Tips for getting started and reconstructing records
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Angelina Christina is a member in McGlinchey Stafford’s New Orleans office and serves as managing editor/content editor of the Flood Law Blog, www. floodlawblog.com. Christina represents clients in consumer finance litigation, complex litigation, corporate compliance, government relations and international law. 74
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Rudy Aguilar III is an associate in McGlinchey Stafford’s Baton Rouge office and editor-in-chief of the firm’s Flood Law Blog, www.floodlawblog.com. He works with clients in the real estate, commercial development and finance industries.
hether aid to businesses comes through private insurance or public resources, businesses will be required to provide detailed financial information concerning their losses. But how does an affected business that lost books and records to the f looding reconstruct financial and other business records? Fortunately, there are ways to obtain reliable information from third parties. n Inventory, machinery and equipment Contact suppliers and vendors, who should be able to provide copies of past invoices for at least the past year. n Income Contact the bank for monthly statement. Deposits likely show a relatively accurate history of monthly sales. The checking history likely shows paid costs and expenses, as well as some payroll information. n Payroll records Contact the payroll vendor or request copies of back forms from federal and state agencies. Employees may also have copies of their pay stubs. n Tax information Contact the Internal Revenue Service, the Louisiana Department of Revenue, and local taxing authorities. Request past tax returns, sales tax reports, copies of business license applications and payroll returns. Previous returns Photo Thinkstock
SBA and LSBDC-staffed Disaster Recovery Centers have been set up in the following parishes and cities: ASCENSION PARISH Bancorp South Bank 13423 Highway 73, Prairieville, La. 70769 Mon.- Fri. 9:00 a.m.- 4:30 p.m.
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EAST BATON ROUGE PARISH Louisiana State Archives 3851 Essen Lane, Baton Rouge, La. 70809 Mon.- Sat.: 8:00 a.m.- 4:00 p.m.
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should also contain relevant schedules, including depreciation schedules to aid in reconstructing a list of assets. If a business owns real estate or immovable property, it would likely be helpful to contact any real estate agent or broker, insurance agent or broker, architect, contractor, or mortgagor who was involved in the building or purchase of the property. Those professionals likely have a plethora of documentation concerning the property’s fair market value, as well as specific financial information concerning the purchase or sale. Additionally, a contractor or architect may be able to provide additional cost and expense information, as well as detailed plans and specifications of the buildings. Once those are obtained, the owner or employees can complete room-by-room sketches showing the location of furniture, business equipment, inventory, machinery, and records such as book cabinets or file cabinets to help reconstruct the total economic value of any loss. The outside of any building or space also needs to be accounted for: landscaping, awnings, parking facilities and signage that have been damaged or destroyed should be counted as part of any business loss. If a business suffered damage to paper records that have some intrinsic value, information concerning preservation and restoration from the Northeast Document Conservation Center and ARMA International can be found on the Photos Thinkstock
Louisiana Secretary of State’s website. Specifically, the website contains tips for dealing with wet or moldy photographs, books and records. As businesses affected by the recent flooding continue to rebuild, they likely will need to reach beyond insurance and traditional business funding resources. Although the Federal Emergency Management Agency (FEMA) does not provide grants to businesses, FEMA does act as a referral source for business owners. Low-interest loans are available through the United States Small Business Administration (SBA) to businesses of all sizes that suffered economic injury or damage to business property due to the recent f looding in president-declared disaster areas. SBA loans may be used to repair or replace business real estate, machinery and equipment, inventory, and other business assets that were lost or destroyed and are not covered by insurance. The SBA also provides certain capital funding loans. Information about the SBA’s loan programs can be obtained by visiting Disaster Recovery Centers, staffed by specialists from the SBA and the Louisiana Small Business Development Center (LSBDC). SBA and LSBDC specialists are available to meet individually with business owners at those Disaster Recovery Centers. No appointment is necessary, and services are provided free of charge. n
Baker Workforce Development Center 3262 Baker Blvd, Baker, La. 70714 Mon.- Sat. 8:00 a.m. - 4:30 p.m. Sundays: noon- 4:00 p.m. LAFAYETTE PARISH Louisiana Immersive Technologies Enterprise (LITE) Executive Conference Room, 537 Cajundome Blvd. Lafayette, La. 70506 Mon.- Sat., 9:00 a.m.- 6:00 p.m. Sundays, noon- 4:00 p.m.
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LIVINGSTON PARISH Southeastern Louisiana University Clausen Family Building Literacy and Technology Center Room 119, 9261 Florida Boulevard Walker, La. 70785 Mon.- Fri.: 8:00 a.m.- 4:30 p.m.
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TANGIPAHOA PARISH Amite Chamber of Commerce 101 SE Central Ave., Amite, La. 70422 Mon.- Sat.: 9:00 a.m. – 6:00 p.m., Sundays: noon- 4:00 p.m.
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More Information n FEMA Referral information hotline: (800) 621-3362 n SBA disaster assistance programs: www.sba.gov/disaster, (800) 659-2955 disastercustomerservice@sba.gov
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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
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Bond PR (now Bond Moroch) celebrates a big merger with new digs. ods, the “Blue Dog Room,” “Wonder Woman Room” and “Jazz Fest Lounge” are but a few of the terms and phrases the team at Bond Moroch on Magazine Street use to identify where to meet around their expansive new offices. The meaning behind each will soon be revealed, but first, the reason for the move: The advertising and public relations firm, formerly known as Bond Public Relations & Brand Strategy, recently merged with the Dallas, Texas-based Moroch marketing and communications company. This prompted a long overdue relocation to a larger space. The approximately 5,300-square-foot offices are housed in a former circa-1930s movie theater — vacant since the ’50s — and provide the perfect metaphor for merging the old and new. “If we were going to move, I didn’t want to do this again for a long time,” says Partner Jennifer Bond. “We wanted to be able to grow in this space.” Jennifer Bond presides over the company with her brother and company Founder, Skipper Bond, as well as Partners Jordan Friedman and Brad Hunter. Along with enough space to grow, good acoustics — so the team could freely conduct business on the phone without disturbing others — as well as great lighting and multiple meeting areas were all priorities for the design. Wayne Troyer, partner and design director at Studio WTA, designed the layout of the space. When interior designer Alexandra Pappas of Alexandra Pappas Design joined the project, she wanted the building and interior architecture to speak for itself. “It has so much character and history in general,” says Pappas. “The old tin ceiling; the [color in the] brick; everything kind of told its own story. The convergence of old and new was the theme. The design goal was to keep it casual, but professional.” Pappas opted for white walls to better highlight the architecture and some of the company’s existing decorative elements from the old space.
By melanie warner Spencer Photography by Cheryl gerber
Exposed brick walls, peeling, decades-old layers of wallpaper and wood slats visible through a handful of holes all feature prominently in the Jazz Fest Lounge, a homey meeting area named from the collection of Founder Skipper Bond’s Jazz Fest posters and other memorabilia. The majority of the furniture throughout the space, a former movie theatre, is by Bond Moroch client, West Elm. BizNewOrleans.com OCTOBER 2016
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“They have this amazing art collection and these beautiful area rugs,” says Pappas. “The first thing that came to mind is, ‘We are definitely reusing these and I’ll find out where.’” Jennifer Bond says it was also important to work with and support the firm’s clients and friends in New Orleans. The majority of the furniture is from West Elm, with custom wood doors by Southern Arch, Caribbean heart-pine floors by Robinson Lumber and a custommetal entry sign by Vivid Ink. Rotating art exhibits employing work curated by Jonathan Ferrara Gallery are on display throughout the gallery-style hallways and kitchen. Allmont’s Fine Custom Framing did the majority of the framing and the LED lighting in most of the office is by Joule. With so many hard surfaces, Pappas added carpet tiles in all the offices to offset noise and add color. The pod-styled workspaces also contribute to noise reduction, but more importantly, they afford more privacy than the traditional half or full bullpen-style cubicles. Exposed brick walls, peeling, decades-old layers of wallpaper and wood slats visible through a handful of holes feature prominently in the Jazz Fest Lounge, a homey meeting area 80
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named for the collection of Skipper Bond’s Jazz Fest posters and other memorabilia (Bond is on the board of directors of the New Orleans Jazz and Heritage Foundation). The Wonder Woman Room is off the lounge and is the larger of two conference rooms. Its nickname comes from the massive, custom, back-painted glass table. Prior to the table’s arrival, chairs were arranged around the “invisible” table, thus inspiring the Wonder Woman moniker in homage to the superhero’s invisible jet. Finally, the Blue Dog Room is home to the company’s collection of George Rodrigue prints. The George Rodrigue Foundation of the Arts is one of Bond Moroch’s clients. The lease on the company’s former offices ended before the new space was completed, so for two months, the team worked out of Jennifer Bond’s shotgun house in Uptown and from their own homes. They held staff meetings in the living room and multiple people worked in the kitchen. “Finally being able to move into this space was not only cool, but also [it was good] to be together again,” she says. ‘That camaraderie: We’re a team. It made it that much better being in such a cool space.” n
Art curated by Jonathan Ferrara Gallery is on display throughout the gallery-style hallways and kitchen. Allmont’s Fine Custom Framing did the majority of the framing and the LED lighting in most of the office is by Joule. A custom metal entry sign by Vivid Ink greets visitors.
At A Glance Company Name: Bond Moroch Address: 3308-B Magazine Street Office completed: June 2016 Architect: Wayne Troyer, partner and design director at Studio WTA Interior Designer: Alexandra Pappas of Alexandra Pappas Design Furnishings: West Elm Size: 5,300 square feet Main goal: A larger space for the company to grow, as well as great acoustics, privacy and multiple meeting rooms. Biggest Challenge: Noise reduction from all of the hard surfaces. Standout Feature: The comfortable and casual Jazz Fest Lounge.
1 1- Partner Jennifer Bond’s office features repurposed furniture from the former location. The expansive window behind her desk overlooks the building’s backyard and floods the room with natural light.
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2- The “pods” are workspaces which also contribute to noise reduction, but more importantly, they afford more privacy than the traditional half or full, bullpen style cubicles. 3- The Wonder Woman Room off the lounge is the larger of two conference rooms. Its nickname comes from the massive, custom, black painted glass table. Prior to the table’s arrival, chairs were arranged around the “invisible table,” thus inspiring the Wonder Woman moniker in homage to the superhero’s invisible jet. 4- The custom wood door to the “Wonder Woman” conference room is by Southern Arch, with Caribbean Heart pine floors by Robinson Lumber. 5- In the Blue Dog Room, the company’s collection of George Rodrigue prints add loads of color. The George Rodrigue Foundation of the Arts is one of Bond Moroch’s clients. 6- The kitchen and bar area feature metallic subway tiles and a vintage-style popcorn machine — a nod to the building’s movie theater past. 5
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Why Didn’t I Think of That? Creative Businesses Taking Hold in Southeast Louisiana
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The sweet side of French Immersion
La Rivière Confiserie offers French treats found nowhere else in the country. By Rebecca Friedman | Photography Cheryl Gerber
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ew Orleanians craving an authentic taste of France without a passport are in luck. Even against the backdrop of the city’s heavy French influence, a retail enclave has evolved along an uptown stretch of Magazine Street whose names conjure as much Paris as one can get on this side of the Atlantic — Aux Belles Choses, The French Library and Lilette, to name a few. The newest addition to this petit quartier of shops is La Rivière Confiserie, a pristine white storefront at 3719 Magazine St. that houses an assortment of candies, savories and home goods imported directly from France, many of them not available anywhere else in the United States. The shop is owned by Kyly Larriviere and Polly Hardie, whose children attend the same French bilingual school in New Orleans. They took the plunge into entrepreneurship as a way to include their families in their professional lives while sharing the artisanal French products they love with a city they believe will appreciate them.
Visions of Sugarplums
After building a career as a clinical researcher in Charlottesville, Virginia, Larriviere sought to find an occupation that would allow her to spend more time with her children. “I read a lot of new age-y things about ‘dream your dream’ and ‘live your bliss’ and all that stuff, and I remember the moments where I would lay back and think, ‘What would I do if I could do anything?’” The answer she came up with was opening a candy store. When Larriviere and her family relocated to New Orleans for her husband’s job, they connected with the city’s French-immersion schools as well as her family’s French ancestry. “And it came together in my mind that it should be French candy.” Hardie has a background in marketing as well as a deep affinity for France developed during a four-plus year stint living in Paris with her husband and children. When Larriviere asked her to join the venture, Hardie’s response was: “Pitch it to me.” So Larriviere transformed the living room of her home into a candy store, filled with samples she had brought over from France. “What I loved about the idea,” recalls Hardie, “was how serious Kyly was about the traditions and specific products she wanted to bring in and the whole history between New Orleans and France. I thought she had a really interesting and unique model and wanted to bring things we didn’t have here to New Orleans, to create a place where people could come discover and be delighted by the packaging and the products.”
A collection of imported goodies available at La Rivière Confiserie on 3719 Magazine St. BizNewOrleans.com OCTOBER 2016
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From left to right: Owners Polly Hardie and Kyly Larriviere.
The right fit
New Orleans’ strong French roots were another selling point for the duo. “We thought New Orleans was already sort of predisposed to something that would be French, so we didn’t feel it was going to be an uphill battle to convince people that the products were great,” says Hardie. “They present beautifully, and once you try them, they are so unique that we feel it’s just a matter of getting it into everyone’s hands.” Larriviere kept her eyes open for the perfect location and was delighted when a property became available on Magazine Street. “One of the reasons I chose the location was because Aux Belles Choses was here and Lilette, so I saw those as the anchor. There was the potential to be nestled in a community that already had some French leaning.” She was also able to sublet part of the building to another retail vendor, thus reducing her overhead. Larriviere and Hardie are hoping the neighborhood will acquire a drop-off stop for the double-decker City Sightseeing bus, which carries visitors up and down Magazine. This would add to the already steady foot traffic of people stopping in on their way to popular destinations like Shaya, La Petite Grocery and Mignon Faget.
65 or 70, and includes men. People look at the shop and think it’s going to be older ladies, so they’re surprised at the number of young professionals, people who are college educated, have traveled and seen a world outside their own country. And then, of course, they like food.” The owners attribute part of the store’s warm reception to New Orleanians’ willingness to try new things. But even they have been surprised at how far that culinary experimentation extends. “For me it was always a question of certain things that appeal to the French palate that may not appeal to the American palate,” says Hardie. “So we took some risks early on with some products.” One surprise hit has been the Coquelicot de Nemours, a poppy-flavored hard candy. “I thought, ‘Really? Poppy? People aren’t going to eat flowers,’” recalls Hardie. “It just took off, and we sold out of it.” Sampling is a big part of the in-store shopping experience. Larriviere and Hardie have found that Americans do not share the French fondness for hard candies, for example, so encouraging customers to sample those products (instead of heading right for the chocolates) has yielded positive results. “Once they get the flavor, they are hooked,” says Larriviere. “I feel like I’m sharing a secret with somebody who otherwise might not have ever taken a chance on these.”
Tempting the palate
Exclusive offerings
Since opening in December 2015, La Rivière has demonstrated a broad appeal that thrills its owners. “Our customer base seems to surprise people,” says Larriviere. The store is a hit with children, naturally, but “our clientele is really ages 22 – right out of college – to 84
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Larriviere and Hardie firmly believe that the ability to offer authentic French products, rather than Americanized versions of them, is what sets their store apart from other confectioners in town, as well as the commitment to sharing the tradition and
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Did you know? La Rivière’s products are rich in history
history behind the items. Both owners take pride in the pedigree and uniqueness of their products – many carry the French government’s EPV designation of excellence. A number of the products at La Rivière are not available anywhere else in the United States, a distinction of which Larriviere is “humbly proud.” To import these products from France, Larriviere and Hardie often help producers navigate the complex process of gaining FDA approval. “The rules are always changing,” says Larriviere, “so we have to stay abreast of that.” One such vendor is the confectioner Henri Le Roux, which operates boutiques in France and Japan. La Rivière is the first U.S. outlet to carry their products. Larriviere worked over a long period of time to cultivate this relationship and “the understanding that there needs to be trust in my representation of their products, that they are presented well,” she says. “I don’t think necessarily that these products want to be mass marketed.”
Expanding the menu
As the store has evolved, so have its offerings. La Rivière now carries an épicerie line with savory products such as tapenades, mustards and olive oils. They also carry a small selection of French tableware, napkins and decor. But the biggest part of the expansion is the opening of a small patisserie in the back of the shop, a place for customers to enjoy authentic French coffee and tea as well as pastries made by local bakers committed to following classical French methods of production. This will include baguettes from producers like La Boulangerie (which Hardie and Larriviere consider the most 86
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n The original praline looked little like the one New Orleanians know and love today. The Prasline de Montargis (shown above) was created in 1636 by the chef of the Duke du Plessis-Praslip for the ladies of the court of Louis XIII. Unlike our soft, round, pecan pralines, the original version contained an almond coated in crispy caramelized sugar. After the recipe traveled with the Creoles to the southern United States, almonds were replaced by the more readily available pecans, plus cane sugar for sweetness and cream or milk for a softer texture. n The financier’s origins lie in a medieval cake recipe that was tweaked by a baker working in the stock exchange area of Paris around the turn of the 20th century. He wanted to create something that his banker and stockbroker customers could eat without getting their suits dirty, and he made it in the shape of a gold bar.
authentically French in town) and pastries such as the financier, which are ubiquitous in France but less commonly found in the U.S. “Part of our vision is for La Rivière to become a destination for the neighborhood, so the kids pop in after school and get something from the candy bar, and with the opening of the patisserie, it becomes a place for neighbors to stroll in and sit down with a cup of coffee or in the evening to pop by and grab a baguette on their way home,” says Hardie. “We’re already doing a lot of sampling in the store, so why not expose our customer base to more and different French products?” In conjunction with the opening of the patisserie, the store will broaden its reach by launching a new website for online shopping. “We have a lot of ideas about how we want to expand the business, but we want to do that very deliberately,” says Hardie. “With the patisserie coming on line, that’s where a lot of our energy will be focused, but the confiserie will always be the heart and soul of La Rivière, because that’s where everything got started. Everything else is meant to embellish what’s going to be happening in this room.” n
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Q&A
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Photo Jeff Johnston
Power Players In the numbers game of commercial sales and leasing, this dynamic duo are the clear champions.
By Kim Singletary
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hen it comes to selling and leasing commercial property, there are two women that stand above the crowd: Rhonda Sharkawy, senior retail leasing and development executive for Stirling Properties; and Kirsten Early, partner and director of retail for SRSA Commercial Real Estate. Consistently claiming the title of Top Overall Retail Producer from the New Orleans Metropolitan Assocation of Realtors (NOMAR) Commercial Investment Division’s (CID) annual awards since 2003, Sharkawy’s sales volumes have ranged from $10.7M (2002) to $45.1M (2013). For the last five years in a row, she has received the F. Poche Waguespack Award — given by the CID for achieving the highest volume in the industry of sales and leases in the marketplace for the year. With a total commercial brokerage volume of $28,135,784 in 2015, she was inducted into the 2016 NOMAR Hall of Fame. Sharkawy is the first agent in her company’s history to receive the Waguespack Award and one of only a handful of women to achieve this honor since it was created back in 1964. Early is the latest member to join this elite group, grabbing the Waguespack Award for 2015 with a total commercial volume of $25 million, along with the award for Overall Top Retail Producer for the year with a total sales volume of $21.8 million. The youngest partner ever hired by her firm, the New Orleans native is also the current secretary for X Team International, a leading retail real estate brokerage alliance servicing 45 major markets throughout the United States, Canada and Europe.
Biz New Orleans: How did you get into real estate? Rhonda Sharkawy: My parents were an architect and a developer, so basically I have always been around a T-square. I was born in Chicago, but I’ve lived everywhere from Missouri to Egypt. After getting my bachelor’s degree at Loyola, I got my master’s in land and real estate development and another master’s in construction science from Texas A&M University. After that, I knew I had to get back to New Orleans. I had fallen in love with this city while at Loyola. My dad wasn’t happy about it (she laughs) because he didn’t see New Orleans as an upcoming city. That was almost 20 years ago. I was happy to prove him wrong. I was fortunate enough to join the team at Stirling Properties in 1998 as development director, and then transitioned in 2001 to my current role. Kirsten Early: I grew up in the business. My mom was in the business and my stepfather was a partner at SRSA. When the firm was expanding back in 1998, I was offered a position. I was working for a regional bank as a lender at the time, so it was definitely a leap of faith— particularly since our business is all commission based — but I was drawn to the f lexibility of real estate. Also, the business is very entrepreneurial and I like the fact that I can set my own goals. Rhonda and I actually started in the business within months of each other.
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From left to right: Kirsten Early, partner and director of retail for SRSA Commercial Real Estate and Rhonda Sharkawy, senior retail leasing and development executive for Stirling Properties. BizNewOrleans.com OCTOBER 2016
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Biz: What are some of your more recognizable projects? Maybe those of which you are the most proud? RS: I love creating shopping centers. I came into the business really wanting to do adaptive reuse, but those opportunities are few and far between. I was part of the development team that brokered River Chase in Covington and worked on the recent Whole Foods addition in Mandeville. I’m particularly proud of my work on Magnolia Marketplace. That is a development that has really transformed the area and created a great artery so that people no longer have to go to the Westbank or Elmwood to do their shopping. KE: I’d say my pride and joy is an opportunity I was given on behalf of HRI to assemble 50 acres in Uptown New Orleans for the Walmart that’s now on Tchoupitoulas. It was a huge undertaking and took well over 4 years. Some of the properties had been owned by the same family for a couple hundred years. I worked with over 30 owners plus an assemblage of abandoned warehouses, abandoned housing and blighted property. It was a real private/public partnership. I’ve since become well known for my expertise in commercial assemblage projects. I also handled the disposition of Albertson’s properties when they exited the market. This involved $40 to $50 million worth of real estate. I presently assist in the strategic planning of sites for multiple national retailers. At least 20 companies are in my current portfolio. I’d say the most recognizable project currently is Dave and Busters — a project that I helped bring to the city. It’s under construction now at Poydras and Loyola. If you look up you’ll see all the construction cranes. The opening is scheduled for the second quarter of 2017. Biz: What is it like being a female in a male dominated profession? RS: Well, thankfully, it’s starting to change. When I got in the business, I would go to the big trade shows — like the International Council of Shopping Centers — and only about one out of every 50 professionals was a woman. Now it’s more like one in 20. I love the chance it gives me to mentor other women though. I always have one or two that I’m working with. KE: I will say that 18 years ago, trying to make a name for myself in this industry was definitely challenging. It was very much a male dominated business, so it wasn’t easy for me to get a foot in the door. Things have changed, though. I see more 90
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A specialist in shopping centers, Sharkawy’s notable retail projects have included the Magnolia Marketplace (top) on South Claiborne and River Chase (bottom) in Covington.
and more women in our business, which is great. The way I look at it is that we’re all business people. I don’t see it as an issue anymore. Biz: What are your biggest challenges? RS: I can’t think of any real challenges, but I’d say there can be frustrations. I currently have 26 shopping centers in my portfolio, so that’s a lot of relationships to maintain, paperwork to do and expectations to manage. Every landlord has different expectations, so it’s about guiding them and the retailers. I also spend a good amount of time analyzing markets. My territory stretches from the Panhandle through to Texas.
KE: I am always reminding myself of how important it is to be creative and this is an industry that rewards patience. Most of the transactions I work on take years so you really have to be dedicated to seeing things through. We live in a very unique market with limited land so it can be a challenge, as well. For example, when CVS wanted to come into this market and develop sites, two or three of those sites were assemblages, one of which involved 17 different families. When Vitamin Shoppe came in looking for a defined area of the market, they waited for the perfect location on Veterans for eight years. This market just doesn’t move like others.
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I cover not just Louisiana, but Mississippi and Alabama, so I have to know the landlords, and the developers in and all of those markets. Biz: What do you think has been the secret of your success? RS: I think it helps that I’m a real people person. You have to be responsive in this business. I don’t have a turn off time, and I’m good with that because I truly love what I do. Whenever I’m in a new city, my first question is always ‘Where is the retail?’ I’m always looking at who I can bring here and where can I put them? Stirling also has such an amazing team. It’s like with learning a language — you can be taught it in school, but you don’t really learn it until you get out there and are immersed in it. I couldn’t do what I do without my team. I’m so fortunate to be a part of one of the most comprehensive full-service commercial real estate companies in the country, with nearly 100 million square feet of properties and land for lease or sale, 17 million square feet of managed properties and 20 million square feet developed from the ground up. KE: Persistence is the big one. You also have to be detail oriented and recognize that this is not a 9 to 5 job. I have clients on both the East and West Coast. I also know that nobody in this business succeeds on their own. I am very fortunate to have a great team supporting me. SRSA is 25 years old this year and over this time we have established ourselves as one of the top brokerage companies in the Gulf South. Biz: What motivates you? RS: My 11-year-old, Hanna, whom I always try to lead by example. She is my pride and joy. Professionally, I’d say bringing value and services to communities, and, of course, my clients. My business relationships are also my personal friendships. Work is play and play is work. I really believe you have to like the people you work with to be successful, and I am fortunate there. Outside of work I am also very active in non-profit and social organizations. I don’t sleep a lot! KE: Opportunity. I was given a great opportunity 18 years ago and I’ll never forget that. To me, failure is not an option. I feel a strong sense of accountability to my company, my partners, and most importantly my clients. I drive down the street and I can see projects I’ve worked on from start to finish. It feels really good to see the result of my efforts. Biz: How do you view today’s marketplace? What do you think the future holds? RS: In the last few years, things have really exploded here, we’ve had a lot of new entry retailers — both in New Orleans and Louisiana as a whole. Retailers see that 92
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Known for her work on assemblages — which have included the CVS Pharmacy at 800 Canal St. — Early also helped bring restaurant and entertainment giant Dave & Buster’s to the city. Now under construction at Poydras and Loyola, the facility is scheduled to open during the second quarter of 2017.
Louisiana has strong sales, even when the national economy softened, we didn’t see much of that here. We’ve never followed the economic bell curve. I think that fact, combined with the federal money from Katrina and the fact that we had this devastating event that resulted in so much rebuilding has left us with a tighter city in terms of density. I think we’re just going to see more new retailers coming in over the next few years. That growth is just going to continue.
KE: I’ve never seen so much development going on, not just here, but in the other markets I cover. That’s exciting. The junior and big box stores are going to have to continue to reinvent themselves, and I think we’re going to see less malls, with only the strong ones surviving. There is going to be more downsizing of stores, more retailers can realizing they can achieve their sales goals with less area, and more retailers offering more diverse entertainment options. n
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Events Faubourg Private Wealth: A Night at the Museum
2016 Active Shooter Seminar
Tuesday, August 18
Metairie Country Club
Tuesday, August 23
WWII Musuem Fiduciary best practices, balancing 401(k) responsibilities and risks, and a market update were all part of the discussion at Faubourg’s Private Wealth: A Night at the Museum.
Presented by HUB International Gulf South, this seminar featured experts in insurance, risk services and law enforcement.
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1. Tim Aubin, Jaron Miller, Alex Glaser and Greg White 2. Jean Paul Lagarde 3. Tyson Van Landingham, Aaron Cancienne, Bonnie Marcantel and David Soliman 94
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1. Michael Barndt, Liz Thomas and Shaun Norris 2. Hart Brown 3. Shelly Williams, Jim Casadaban and Esther Tapia Photos by Cheryl Gerber
New Orleans Chamber & AMA New Orleans Educational Seminar Wednesday, August 24
Jefferson Chamber of Commerce Prosper Jefferson Seminar Series: Protect Your Business Assets
1515 Poydras St.
Wednesday, August 31
The focus of this lunch event was, “Not Ya Mama’s Marketing: How to Create Buzz and Make News in the Digital Age.”
JEDCO Conference Four local data experts shared how to better secure information in the Cloud and develop a disaster recovery plan to ensure data isn’t compromised at the latest edition of this continuing series.
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1. Ron Marlow, Kevin Conway, Jennie Diemont and Eric Knoepfler 2. Blair Broussard 3. Susan Matherne, Glenn Michael and Gina LaBorde Photos by Cheryl Gerber
1. Brian Gardner, Delous Smith, Ryan Daul, Rick Haney and David Bourgeois 2. Rick Haney 3. Kate Moreano, Scott Rojas and Jessica Labuz BizNewOrleans.com OCTOBER 2016
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Behind the Scenes
Space Crafting Welders inside a large liquid hydrogen tank for NASA’s Space Launch System (SLS) — the most powerful rocket in the world — are shown here plugging holes left after the tank was assembled. The workers use friction stir welding to produce high-strength bonds virtually free of defects. Located at the Michoud Assembly Facility in New Orleans, the SLS — along with NASA’s Orion spacecraft — will send astronauts deeper into space than ever before, including the agency’s journey to Mars. Photo NASA/Michoud/Steve Seipel
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