FOURTH QUARTER 2010
Ready for
BRAC Gears Up for The Creative Capital Agenda
What’s in a Name? The Baton Rouge area is the Creative Capital of the South Investing in Mobility: A Mobile Economy, a Bright Future And More… Q4 Progress, Project Wins
cat·a·lyst (kat’l ist) n. 1) Something that initiates or causes an important event to happen. 2) A person or thing that precipitates an event or change. 3) See also energy, momentum, trailblazer, Baton Rouge Area Chamber.
what’s
INSIDE 02
Our Economy: Update & Outlook
06
Our Progress: Measuring Our Success
Fourth Quarter 2010
The latest trends in the Capital Region economy
A report on BRAC’s activities in Q4 2010
12
What’s in a Name
14
Ready for Take-O
18
Investing in Mobility:
21
Economic Development Investors
The Baton Rouge Area is the Creative Capital of the South®
The Campaign for a Greater Baton Rouge gives way to The Creative Capital Agenda
A Mobile Economy, A Bright Future
Leading organizations funding The Campaign for a Greater Baton Rouge
From the desk of Adam Knapp A little over ive years ago, the Baton Rouge area business community united behind a revolutionary and yet simple idea: regional economic development. A group of 120 investors bet big that a professional economic development organization could produce strong economic returns and also improve the region’s competitiveness. This issue of Catalyst is the inal quarterly report of The Campaign for a Greater Baton Rouge. The Campaign raised $15 million for BRAC’s work from 2006 to 2010. In simple terms, the ROI was $266 million in annual direct payroll from the sixty-ive secured projects. As of Q4 2010, those projects announced over 6,700 jobs and $2.4 billion in capital investment. We also spearheaded policy reforms and investments in K-12 education, state ethics laws, transportation, LSU, Pennington Biomedical, and targeted tax incentives and business tax reforms. That’s a staggeringly positive record for ive short years of work, and one that has been recognized nationally as among the best in the United States in regional economic development. Our cover story looks at what’s next. To prepare, we’ve listened. Over six months, our investors and nine-parish allies advised us on our next ive-year strategy. We assessed our competitors’ economic development practices. We set aspirational goals. We evaluated how to innovate in our practice. The outcome is The Creative Capital Agenda. Six core strategies that will guide BRAC to the next level of economic growth. While continuing to do what we have done well in our irst ive years, we are adding a handful of new elements. Our business attraction strategy must drive into global markets. We must nurture entrepreneurial growth and foster innovation. Retention and attraction of executive talent will empower regional corporate growth. And we must build a compelling, unique brand identity for the Baton Rouge area. If we succeed in these areas, the Baton Rouge area will continue to be one of the leading growth economies in the South. Enjoy the issue,
Adam Knapp, President and CEO, Baton Rouge Area Chamber
T h E
E cO N O M y
& outlo update
Continuing the trend, the Baton Rouge area economy performed well in the fourth quarter of 2010. Many fundamental aspects of the economy are in a good position, which means accelerated regional growth still relies on the recovery of the national economy.
Real Estate & Jobs in the Economic Recovery In early 2008, the real estate market could be termed “pretty good.” The U.S. economy then proceeded to lose 8.4 million jobs. As a matter of perspective, this would be every job on and within a ifty-mile radius of the island of Manhattan. This visual image should also make it easy to imagine how much vacant oice space was put on the market and how the construction industry came to a halt. In order for the market to be considered “pretty good” again, we need an additional ten million jobs. After eighteen months of economic recovery, we have only added one million jobs and still have a massive oversupply of real estate.
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Jobs typically rebound when corporate proits increase. Unfortunately, in this recession, corporate proits have rebounded, but jobs have lagged, perhaps due to uncertainty in the regulatory environment. Executives are unlikely to hire when unsure about the future of taxation, the healthcare structure, and the political climate. The November elections suggested that the United States is not supportive of some current economic policies of the administration and created political gridlock. At the same time, the housing market has signiicant foreclosures yet to pass through the system, which has continued to produce a drag on the overall U.S. recovery as well as bank lending.
ok
On the Baton Rouge Area Economy
Capital Region Economy Q4 & 2011 Outlook Throughout 2010, consumer spending remained relatively
three percent of businesses surveyed anticipated both
close to that of 2009 – the “new normal” trend. Spending
capital expenditure and employment growth for their
surged in December of each year and then fell back in
individual irms in 2011.
January as expected, given seasonal spending trends. December spending was up just slightly in 2010 compared to 2009. Retailers in the Baton Rouge area reported strong seasonal spending gains during the holiday season.
Based on BRAC’s composite forecast of multiple national and state models, we projected modest job growth of between 0.9 and 2 percent in 2011. This would amount to between 3,400 and 7,200 new jobs, with the lower end of
The area picked up 200 jobs in December 2010
the forecast accounting for worse declines in government-
compared to the previous year. These gains came from
sector employment. Drivers of this growth include:
service-providing jobs in retail, transportation, and warehousing. Although we saw private-sector growth, the Capital Region economy was lat due primarily to government cutbacks. In November 2010, BRAC presented its annual economic
• Expansion of the national economy as gross domestic production growth continues • Continued strength in the healthcare and construction sectors
outlook based on a survey of business owners from across
• Growth in professional and technical services
the region. On the whole, Capital Region businesses were
• Gains in the information and digital media sector
optimistic about 2011 with forty-six percent of those who responded saying they expected moderate to rapid growth in the coming year. Furthermore, seventy percent of the region’s businesses are predicting revenue growth in 2011.
2011 f orecast:
That number jumps to eighty-ive percent when asked to
0.9% – 2.0% regional growth
consider revenue growth between 2011 and 2013. Forty-
Q4 2010
3
T h E
E cO N O M y
Conclusion Being a state capital with a diversiied economy proved to insulate the
“Overall, the performance
region from any severe decreases in real estate, spending, and employment.
of the regional economy
The Baton Rouge area is forecasted to see increases. Accelerated growth is still dependent on the national recovery, political and regulatory environments, real estate transactions, lending policies, and job growth.
in 2010 exceeded its peers and is expected
Overall, the performance of the regional economy in 2010 exceeded its
to produce solid private-
peers and is expected to produce solid private-sector growth in 2011.
sector growth in 2011.”
Economic Vital Signs Indicator
Outlook
Strong
Latest Statistic
Stable or Mixed
Decline
Trend • Jobs up 200 over Dec 09
Jobs
Nonfarm payrolls, Dec 10 (p): Unemployed, Dec 10 (p):
369,500 27,103
Unemployment Insurance Claims
Initial claims per week* Weeks claimed per week*
674 8,700
Residential Building Permits
Single-family, Q4 10 Multi family, Q4 10
631 12
Home Sales
Average home price* Units sold, Q4 10
$203,699 435
• Sales prices have increased 10% from Q4 09
Regional Spending
Sales & use taxes, Nov 10 Total sales, Nov 10
$54.7 MM $1.15 B
• Sales tax collections as a region have increased 4% over Nov 09
Local HQ Stock Performance
Price change over Q4 10: ALB: 18.2% AMED: 48.3% LAMR: 28.8%
SHAW: 0.9% HEES: 50.0% CRWS: 1.6%
• Stock prices have increased across the board
Energy Costs
WTI crude oil spot* Henry Hub natural gas*
$86.13/barrel $3.98/MMBtu
• Unemployment in Dec at 7.1%; well-below U.S. average of 9.1%
• Initial claims down 5.8% from Q4 09 • Weeks claimed down 13.2% from Q4 09
• Total permits have decreased by 4% compared to Q4 09 • Single-family permits have decreased 6% compared to Q4 09
• Units sold have decreased 21% from Q4 09
• Crude oil spots up $9.95/barrel from Q3; up $8.04 from Q3 09 levels • Gas price down $0.03 from Q3, price is up $1.10/MMBtu from Q3 09 levels
Sources: Louisiana Workforce Commission; U.S. Census Bureau (New Residential Construction); Greater Baton Rouge Association of REALTORS®; Local sales tax oices; Yahoo! Finance; LSU Center for Energy Studies; BRAC analysis
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* Q4 10 average
economic review contributors
Baton rouge area employment and Unemployment ($ Thousands)* 380
80
370
renee areng Baton Rouge Area Convention and Visitors Bureau
70
360
60
350
50
340
40
330
30
Jerry campbell The Advocate carey chauvin EBR Parish Department of Public Works
20
320
10
310
0
Ken Damann Greater Baton Rouge Association of REALTORSÂŽ
300 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC*
tifany Delapasse EBR Parish Department of Finance 10-11 Employment Nonfarm payrolls
09-10 Employment Nonfarm payrolls
10-11 Unemployment Nonfarm payrolls
09-10 Unemployment Nonfarm payrolls
todd Denton Mall of Louisiana Huey Dugas Capital Region Planning Commission
* December employment and unemployment igures are preliminary estimates; all employment estimates relect current revisions Source: Louisiana Workforce Commission; BRAC analysis
J. Michael eades Ascension Economic Development Corporation connie fabre Greater Baton Rouge Industry Alliance
Baton rouge area regional spending ($ Millions)*
Marianne frazee Frazee Recruiting
1,600 1,400
Patty Granier Louisiana Workforce Commission
1,200 1,000
chris Harrell Regions Bank
800 600
Bob Israel Louisiana Automobile Dealers Association
400 200 0 DEC
JAN
FEB
MAR
APR
2009
MAY
JUN
JUL
AUG
SEP
OCT
NOV
2010
East Feliciana, Pointe Coupee, St. Helena, West Feliciana, and West Baton Rouge Parishes Iberville Parish
Ascension Parish
Livingston Parish
East Baton Rouge Parish
* Sales were estimated from sales and use tax collections and rates of each taxing jurisdiction within each parish Source: Local tax oices; BRAC analysis
Hays owen Baton Rouge Water Company Drew Pearson Latter & Blum rene ragas Our Lady of the Lake RMC Karen st. cyr Port of Greater Baton Rouge Dr. Loren scott Loren C. Scott & Associates, Inc.
Q4 2010
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O U R
P R O g R E S S
measuring our
The Campaign for a Greater Baton Rouge is comprised of seven strategies that work together to drive economic development in the Baton Rouge area. Each issue of Catalyst features an update on our progress on each of these seven strategies as well as a preview of upcoming goals and activities.
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Strategy 1: Retain and Expand Existing Businesses
Recognizing that approximately 75 percent of the region’s future job growth will come from existing businesses, BRAC has developed a robust business retention and expansion program. The fourth quarter saw three retention and expansion projects announced in the Capital Region for a total of 124 jobs and more than $463 million in capital investment. As a testament to the Baton Rouge area’s diverse industry mix, wins were spread across the engineering, chemical, and manufacturing sectors. Details of these wins can be found on pages 8 and 10. BRAC conducted thirty on-site executive interviews during the quarter including seven follow-up sessions involving tangible assistance. For the year, the BRAC business retention and expansion team completed 154 on-site visits both inmarket and with out-of-state headquarters with local ties.
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Strategy 2: Attract New Business to Our Region
Aggressively selling the region’s assets to high-potential business prospects is a core function of any efective economic development program. BRAC provided appreciable assistance in recruiting two new businesses to the Baton Rouge area during the fourth quarter resulting in the addition of 130 new jobs and $21 million in capital investment to the economy. Announcements came in the manufacturing and digital media (see stories on page 9). The fourth quarter ended with ive Class A projects in the pipeline representing 193 potential jobs and capital investment of approximately $480 million. Our prospect total, including Classes A and B, stands at twenty-six projects, 2,561 jobs, and over $613 million in capital investment.
Q4 2010
Summary of Business Development Prospect Activity Project count
Prospective Job count
Current Count
Change from prior quarter
Current Count
Change from prior quarter
2010 Project Wins (YTD)
16
+5
629
+240
Prospects: Class A
5
-4
193
-1,014
Prospects: Class B
21
+5
2,368
+1,425
Prospects: Class C
42
-5
6,393
-1,219
Prospects: Total
68
-4
8,954
-728
3
Strategy 3: Develop a National Marketing Program
It is essential to the success of our economic development eforts that we market the Baton Rouge area nationally and internationally to decision-makers involved in business relocations and expansions. In September, the Baton Rouge Area Digital Industry Consortium (BRADIC) distributed 3,000 free-standing inserts to attendees of the Game Developers Conference – Online in Austin, Texas. Additionally, BRAC met with six venture capitalists in December to discuss high-growth innovation opportunities in the region.
PROSPEcTS: cLASS A Prospect is actively engaged in dialogue with BRAC or the Capital Region has been specifically identified/selected to present sites through LED. PROSPEcTS: cLASS B Company/consultant has requested information on multiple states/regions; company identity is frequently unknown. PROSPEcTS: cLASS c Company has not requested any information, but based on tip/research, may represent a potential opportunity.
The Capital Region was highlighted for its economic strength by two well-respected resources in the fourth quarter. The Brookings Institution selected the Baton Rouge area as one of the top twenty strongest regional economies during the recession for the third quarter of 2010. Additionally, the Manpower Economic Outlook Survey cited the Baton Rouge metropolitan statistical area (MSA) as having the strongest employment outlook in the country for the irst quarter of 2011, ranking it number one among the 100 largest MSAs. Eforts to connect site selectors and company executives with BRAC’s business development team resulted in attendance at the Area Developers Conference and Forum in Savannah, Georgia. The event attracts consultants focused on industrial manufacturing, a key sector in the Capital Region’s industry mix.
Q4 2010
7
O U R
P R O g R E S S
PROJECT WINS Georgia-Pacif ic 40 Jobs, $230MM capital Investment
In October, Georgia-Paciic announced that its Port Hudson facility was one of two locations selected to take part in a $500 million innovation project. The project will upgrade one of the locations existing paper machines with advanced technology and install associated converting equipment. The investment will result in the retention of the mill’s approximately 1,000 jobs and creation of up to 400 construction-related jobs. “We are pleased to announce this major investment for our manufacturing location in Port Hudson. This relects our company’s strong commitment to our consumer products business, to the global competitiveness of skilled Georgia-Paciic employees, to the support of the Port Hudson community and to the state of Louisiana that supports the value we create.” Kathy Walters, executive vice president, Georgia-Pacific Global Consumer Products
Project Happy 40 Jobs, $8MM capital Investment
An East Baton Rouge Parish specialty-engineering company will expand its facility to incorporate an additional 40,000 square feet of laboratory testing and engineering space.
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Great Southern Galvanizing, Inc. 100 Jobs, $6MM capital Investment
Great Southern Galvanizing, Inc. will break ground on its new 53,000-square-foot facility near Zachary. The industrial galvanizing plant will generate 100 jobs in East Baton Rouge Parish over the next three to ive years. “The support of BRAC and city-parish oicials certainly made this venture a true success story for this community. We are thrilled to be another growth opportunity for the region.” grady Phillips, founder and president, Great Southern Galvanizing, Inc.
Firebrand Games 30 Jobs, $5MM capital Investment
Firebrand Games will join the growing roster of digital media companies moving into the Baton Rouge area. The video game developer will open a studio in the Louisiana Technology Park and will hire thirty employees to run its operations. Firebrand develops racing games for Nintendo systems and plans to expand its business to create games for other popular consoles such as the PlayStation and the XBOX. Founded in Glasgow, Scotland, Firebrand’s new Louisiana studio is only the second to be established in the U.S. “We are very thankful to Mayor-President Holden and all at BRAC and the Baton Rouge Area Digital Industries Consortium for all their help in making our studio happen. We look forward to Firebrand Louisiana being extremely successful both for Firebrand and for Baton Rouge.” Mark greenshields, CEO, Firebrand Games
Q4 2010
9
O U R
P R O g R E S S
PROJECT WIN Project MIT 80 Jobs, $225MM capital Investment A chemical-industry services company has committed to expanding their existing facility in Ascension Parish.
4
Strategy 4: Create a Robust Business Intelligence Capability
Site selection consultants, real estate executives, and other business decision-makers depend on BRAC to provide detailed information about our region and the regional economy. This quarter, BRAC worked with The Pathinders Group to prepare a workforce analysis and labor availability report for the nine-parish Baton Rouge region. This analysis consisted of phone calls to both households and businesses to generate a statistically valid data sample. The major indings of the analysis quantiied the number of underemployed in the region by occupation and industry with a special sub-section report on the characteristics of manufacturing employment.
5
Strategy #5: Create a Special Opportunity Fund
6
Strategy #6: Create a Robust Public Policy Capability
As BRAC promotes the Baton Rouge area to businesses looking to relocate or expand, we are working with business and government leaders to improve the competitiveness of our regional economy. Innovation was a core theme of BRAC’s competitiveness initiatives during the fourth quarter. In October, BRAC announced its search for an executive director to lead a newly formed regional innovation organization serving the entrepreneurs of high-growth, high-impact irms. The organization will also seek to develop partnerships with entrepreneurial individuals at large companies, university researchers, and critical-service providers. BRAC also hosted (Inno)State: Louisiana’s Innovation Summit in October. This year’s event focused on the success of highgrowth companies; trends in economic development related
The ability to react quickly and lexibly to economic
to entrepreneurship and innovation; and the challenges and
development opportunities that arise – both to help existing
successes faced by entrepreneurs from throughout the region
businesses expand and to bring new businesses to the Baton
as they executed their business plans.
Rouge area – is critical to the success of our eforts. In November, BRAC hosted its 2010 Economic Forum. This While the special opportunity fund remains an important
annual event provides the region’s business leaders with key
asset in BRAC’s ability to meet the needs of its business
data and one-, three-, and ive-year economic projections.
development project clients, it was not accessed during the
This information is seen as a valuable resource as companies
fourth quarter.
in the region plan for the coming year.
10
7
Strategy 7: Launch a Regional Learning Community Initiative
A highly skilled workforce is the foundation of any successful economic development efort. As a result, BRAC has incorporated as one of its strategies in The Campaign for a Greater Baton Rouge a focus on a regional learning community initiative to develop high-quality
After the election of ive of FuturePAC’s endorsed candidates to the East
educational institutions.
Baton Rouge Parish School
FuturePAC, BRAC’s political action committee, identiied
Board at the end of the
the election of strong school system leadership as a key to achieving the tenets set forth in its reform agenda to accelerate student achievement and school accountability in the region. After the election of ive of FuturePAC’s endorsed candidates to the East Baton Rouge Parish School Board at the end of the third quarter, one of those candidates went on to be selected by her peers to serve as president. FuturePAC will work closely with this new leadership in
third quarter, one of those candidates went on to be selected by her peers to serve as president.
the coming year to continue the momentum it has realized during 2010.
BRAC’s Economic Development Partners Ascension Economic Development Corporation
Greater Pointe Coupee Chamber of Commerce
Oice of the MayorPresident, City of Baton Rouge/Parish of East Baton Rouge
St. Helena Parish Economic Development Committee
East Feliciana Economic Development District
West Baton Rouge Chamber of Commerce
Iberville Chamber of Commerce Livingston Economic Development Council
West Feliciana Community Development Foundation
Q4 2010
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What’s in a Name? The Baton Rouge area is the Creative Capital of the South Ask any expectant parent, and, with unshakeable confidence, they believe that the name that they choose for their impending bundle of joy will make or break his or her chance at a successful future. The same is true in the economic development business. Your name, or more importantly the brand it represents, plays a significant role in how a region is perceived and, in some cases, the future of its growth and success.
Six years ago, the Greater Baton Rouge Chamber of
they discussed why they lived and worked within the
Commerce transformed to an organization with a newly
region. They mentioned the area’s wealth of research and
adopted mission of leading economic development in the
development endeavors, its cornucopia of culinary options,
nine-parish Capital Region. While the goal was to ind an
and an innate knack for problem-solving. Throw in the
appropriate brand and name for the organization (eventually
cultural appeal of the region, and one word immediately
to be called the Baton Rouge Area Chamber or BRAC), a
came to mind – creativity. And hence, the regional brand, the
central theme was continuously raised by focus group
Creative Capital of the South, was born.
participants, interviewees, and survey respondents when
12
As the participants in the 2005 work “ identified we have the vision... we have the creativity... we are the Baton Rouge area – the Creative Capital of the South.”
While BRAC took a lead role in identifying just the right name, the brand needed regional support for it to be productive. Over the course of eighteen months, BRAC oicials met with over sixty diverse organizations from across the region and garnered their support for the new moniker. This acceptance was based on the fact that the brand can be easily adapted for use in many different facets, including promoting the region’s tourism industry, its governmental entities, and its educational and service-based agencies. The Creative Capital of the South brand is designed to share the region’s appeal and uniqueness with the world. It is not designed to obscure the challenges that the Capital Region needs to overcome. The true deinition of creativity, however, is the ability to look at those challenges and see the solutions instead of just the problems. As the participants in the 2005 work identiied… we have the vision… we have the creativity… we are the Baton Rouge area – the Creative Capital of the South.
Q4 2010 13
Ready for
14
The Campaign for a Greater Baton Rouge gives way to The Creative Capital Agenda
More than a hundred years ago, two brothers came up with an idea that defied the laws of gravity: They set their sights on the marvel of human flight. No one had ever successfully piloted a powered airplane. But Wilbur and Orville Wright believed that by using their experience and the resources around them, they could achieve the impossible, ushering in the beginning of a new era in transportation. Fast-forward to 2005 and the Baton Rouge area capitalizes
In the midst of a seemingly daunting situation, the Greater
on another opportunity for the type of passion for ingenuity,
Baton Rouge Chamber of Commerce, long noted as the
perseverance, and accomplishment displayed by the Wright
voice of the business community, saw an opportunity to
Brothers. Faced with the challenges of an instant burst in
reinvent itself to suit the needs of the time; to shift its focus
population resulting from Hurricanes Katrina and Rita and
to help the region become the leading economic growth
the migration of thousands of displaced residents from across
area in Louisiana. It emerged with a new brand, becoming
Southern Louisiana, business leaders took a bold step to
the organization known today as the Baton Rouge Area
ind solutions for an overburdened infrastructure, strained
Chamber (BRAC). Additionally, it summoned the support
resources, and a burgeoning need for jobs.
of all nine parishes to act regionally as it led an aggressive economic development efort.
Q4 2010 15
The Campaign for a Greater Baton Rouge would become one
breaking achievement, identify new challenges to conquer,
of the most successful campaigns of its kind among similar-
and utilize creative approaches to develop new solutions.
sized regions in the country. By the close of the fourth quarter of 2010, sixty-ive BRAC-led business development projects had resulted in 6,757 secured jobs; more than $2.4 billion in
It would have been quite easy for BRAC leadership to bask in the period of economic development success ushered in by its irst breakthrough. However, it has been
capital investment; and more than $266 million in
said that the one thing that is constant is
added payroll. In 2010 alone, BRAC oversaw
change; and by extension, growth. That
twenty project wins, the most single-year
said, the population of the nine-parish
wins in the campaign’s history. This
Capital Region recently surpassed
generated 782 jobs, $831,850,000 in
In 2010 alone,
capital investment, and over $30 million in payroll.
BRAC oversaw twenty
While many remember that the
project wins, the most
Wright Brothers completed the first successful powered flight, which lasted a mere twelve seconds,
single-year wins in the campaign’s history.
the striking accomplishment of these pioneers of aviation is the fact that they made a total of three light attempts that day, eventually working their way up to a ifty-nine second
the 800,000 residents mark, so the area has crossed a signiicant threshold to become a major market. Not only is this a gamechanger for the way in which the region must approach economic development, but it also revives some of the same challenges BRAC
faced at its genesis ive years ago. The fourth quarter brought with it the launch
light that covered a distance of 852 feet. This accomplishment
of The Creative Capital Agenda, BRAC’s new ive-year
led to the invention of the irst practical ixed-wing aircraft
strategic plan. The new $18 million campaign will secure
and the aircraft controls that revolutionized light as we know
the region’s position as a leading economic development
it. True innovators never stop at the irst accomplishment.
powerhouse by building on the success of The Campaign
They capitalize on the momentum of that irst ground-
for a Greater Baton Rouge, while placing additional emphasis
16
on international development; entrepreneurship and innovation; and talent development. Additionally, BRAC will lead a new regional branding initiative establishing the Baton Rouge area as the Creative Capital of the South (see story on page 12) and positioning the
Six core strategies will define BRAC’s activities over the next five years.
region as an innovative, highly distinctive market that boasts an eclectic mixture of cultural destinations and thriving industries. The new initiative has already eclipsed its predecessor’s success. The Baton Rouge area business community has
1. Job Creation BRAC will actively seek to retain and attract high-growth companies in the digital media, alternative energy, wood products, manufacturing, and the life sciences sectors.
rallied around this new initiative garnering the support of more than 125 investors from a broad swath of businesses, institutions, and organizations. The Creative Capital Agenda will remain true to the core elements of The Campaign for a Greater Baton Rouge. BRAC will actively seek to retain and attract high-growth
2. International Development BRAC will aggressively position the area as an appealing option for multinational corporations seeking major foreign direct investment (FDI) opportunities in the U.S.
companies to positively inluence the quality of life in the region. Speciic emphasis will be placed on the digital media, alternative energy, wood products, manufacturing, and the life sciences sectors. The region’s emergence as a major market places an increased importance on BRAC’s work to ensure the area’s competitiveness with its new peers in the economic
3. Entrepreneurship and Innovation BRAC will be the driving force behind a new regional innovation organization tasked with identifying opportunities in the current service-delivery system to improve support for entrepreneurial growth companies.
development arena. It will address high-priority factors to make the Baton Rouge area an attractive location in which to do business and to secure its ability to attract and retain irms. These factors include building a robust transportation network, developing a highly qualiied workforce, championing a strong public education system in the region, and favorable trade policy. As BRAC ushers in this next era of continued economic
4. Global Branding BRAC will establish the Baton Rouge area as the Creative Capital of the South through a comprehensive branding campaign, positioning it as an innovative, highly distinctive market that boasts an eclectic mixture of cultural destinations and thriving industries.
growth for the Capital Region, it will do so as boldly as when it launched its irst campaign. This organization, this region, and the business community are ready for take-of!
5. Talent Development BRAC will attract, develop, and retain human capital to meet the needs of businesses relocating and expanding to the region. It will create a talent repository, develop corporate talent services, and raise awareness of the amenities that the Baton Rouge area has to ofer.
6. Regional Competitiveness BRAC will address high-priority competitiveness factors to make the Baton Rouge area an attractive location in which to do business and to secure its ability to attract and retain irms.
Q4 2010 17
[ IN PERSPEcTIVE ] Each issue of Catalyst includes a national expert contributing new ideas about economic development issues.
Investing in Mobility:
A Mobile Economy, a Bright Future
By John Fregonese, president of Fregonese Associates
Imagine starting your workday at an office in Mid City, one of the Baton Rouge area’s new economic districts alive with interesting storefronts, offices, and residents from nearby apartments and condos. Your day continues with an express bus trip downtown to catch the high-speed train to New Orleans for an important meeting, removing the hassle of traffic congestion or delay. During the comfortable one-hour train ride, wireless Internet in the train car enables uninterrupted workflow, and eight round trips daily ensure that you return home in time for dinner.
The economy of Capital Region has grown to what it is
a quality workforce, the region must make far-reaching,
today based on its strategic location, natural and human
long-term investments in world-class local and regional
resources, innovative industry, waterways, and a major
transportation. In addition to new roads, additional
national port. However, a 2010 Texas A&M study found
connections, and increased capacity, the Baton Rouge
that the Baton Rouge area had the worst traic congestion
area needs to seriously plan for a modern transit system.
among mid-sized U.S. cities. In order to attract and retain
18
How can the Capital Region use investments in transit to attract a highly talented workforce and boost the local economy? Transit has the power to catalyze investment, revitalize corridors, and move people around regions in a way that bypasses congested roads. The region should make investments in high-capacity transit corridors that connect emerging districts such as Mid City, the LSU University District, and the South Parish Medical District with downtown. These interesting urban places will have frequent bus or streetcar service within a few blocks of most homes and businesses. In addition, higher-density development along corridors increases transit ridership, creates jobs, expands the local tax base, and reduces congestion on the regional road network.
Baton Rouge area residents are bearing the brunt of traic congestion today. During the FuturEBR planning process, we listened to thousands of participants. While most will continue to rely on their cars, the majority of participants supported providing a high-quality, reliable transit option to get to work, school, shopping, and for other daily errands. And given the choice, most participants wanted to work in lively urban places – downtown, burgeoning university and medical districts, main streets, and urban corridors.
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Integrate a rail link to New Orleans into the robust local transportation network. In order to compete globally, the area must move past local competition and embrace regional collaboration with New Orleans. As Louisiana’s key population and employment centers, Baton Rouge and New Orleans account for 45% of the state’s population, 48% of the state’s jobs, and 53% of the state’s GDP. With a passenger rail connection, business travelers could collaborate in person with colleagues and contacts in New Orleans, get home in time for dinner, and enjoy a wireless Internet connection along the way. By 2030, a proposed passenger rail line connecting the Baton Rouge and New Orleans regions could make eight round trips a day, average over 90 mph, and make the journey from downtown to downtown in an hour lat. This rail connection would reduce congestion and travel time along I-10 and provide a reliable, fast, comfortable, and convenient alternative to driving, in addition to reducing regional carbon emissions. The entire corridor would beneit with this renewed investment and attention. Proposed station stops include downtown Baton Rouge, the Baton Rouge suburbs, Gonzales, LaPlace, New Orleans International Airport, and the New Orleans Union Passenger Terminal. Transit-oriented development opportunities at the six proposed stations would increase the local tax base by millions of dollars, providing opportunities for new development and business expansion along the entire corridor. The economies of Baton Rouge and New Orleans are already tightly knit, but a secure passenger rail link between the two cities would expand business opportunities for Baton
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Rouge, and attract new visitors to Baton Rouge. Ultimately, a rail system linking Texas and points beyond through Louisiana to the east would enhance the economy of the entire coastal region. The roads in the Baton Rouge area will continually need to be upgraded, but to truly address the long-term mobility of the region, other solutions must be examined. Top-quality transit in high-density corridors will have a dramatic efect on surrounding corridors and neighborhoods and will lead to new business and development opportunities. And a rail line connecting Baton Rouge and New Orleans will connect these two major cities and lead to vibrant pockets of development across southeastern Louisiana.
About John Fregonese John Fregonese is the lead consultant on FuturEBR, a twenty-year comprehensive plan for East Baton Rouge Parish based on an inclusive process that relects the needs and aspirations of parish citizens and strives to make Baton Rouge “America’s Next Great City.” He is the president of Fregonese Associates, a full-service land use planning irm from Portland, Oregon. For more information and to get involved, please follow the progress at FUTUREBR.com.
economic development
Investors
The Campaign for a Greater Baton Rouge (2006–2010)*
chairman’s council
Policy council
Annual Investment of $100,000+
Annual Investment of $7,500+
(Five-year total pledge of at least $500,000)
(Five-year total pledge of at least $37,500)
All Star Automotive Group • Baton Rouge Area Foundation / Commercial Properties Realty Trust • Credit Bureau of Baton Rouge Foundation • East Baton Rouge Mortgage Finance Authority • ExxonMobil • Georgia-Paciic • Guaranty Group • Louisiana State University System • Manship Media • Our Lady of the Lake Regional Medical Center • Research Park Corporation
Advanced Oice Systems, Inc. • American Gateway Bank • Cajun Constructors • Embassy Suites Baton Rouge • Faulk & Winkler, L.L.C. • Gulf South Business Systems & Consultants, Inc. • Hannis T. Bourgeois, LLP • H&E Equipment Services, L.L.C. • I.T. by DESIGN • La Capitol Federal Credit Union • Louisiana Radio Network / Tiger Rag • Mary Bird Perkins Cancer Center • McDonald’s of Baton Rouge • McGlinchey Staford PLLC • Postlethwaite & Netterville • Starmount Life Insurance Company
executive council Annual Investment of $50,000+ (Five-year total pledge of at least $250,000)
supporting Investor
Baton Rouge Coca-Cola Bottling Company • Baton Rouge General Medical Center • Blue Cross Blue Shield of Louisiana • Breazeale, Sachse & Wilson, L.L.P. • Capital One Bank • Citadel Broadcasting Company • Clear Channel Radio • CSRS, Inc. • Entergy • Greater Baton Rouge Business Report • Jones, Walker, Waechter, Poitevent, Carrére & Denégre, L.L.P. • JPMorgan Chase • Kean, Miller, Hawthorne, D’Armond, McCowan & Jarman L.L.P. • Lamar Advertising Company • LUBA Workers’ Comp • Ochsner Health Center Baton Rouge / Ochsner Medical Center Baton Rouge • Phelps Dunbar, L.L.P. • Regions Bank • Taylor, Porter, Brooks & Phillips, L.L.P. • The Shaw Group Inc. • Turner Industries Group • WAFB • Whitney National Bank
Annual Investment of $2,500+
ambassador council Annual Investment of $25,000+ (Five-year total pledge of at least $125,000) Baton Rouge Water Company • Brookwood Properties,
L.L.C. • D’ Honoré Construction, Inc. • Dow Chemical Company • EATEL / SunShine Pages • Greater Baton Rouge Association of REALTORS© • Hancock Bank • Hollywood Casino • Latter & Blum, Inc. / C.J. Brown Realtors • MAPP Construction, L.L.C. • Mockler Beverage Company • Pinnacle Entertainment • Wampold Companies • Woman’s Hospital
corporate council
(Five-year total pledge of at least $12,500) Acme Refrigeration of Baton Rouge, Inc. • Advantage Capital Partners • Apex Constructors, LLC. • Armstrong Relocation • Ascension Economic Development Corporation • Associated Grocers • Babcock Partners, LLC • BancorpSouth • Baton Rouge Duplicating Products • Benny’s Car Wash • Chenevert Architects • Cintas • Community Cofee Company • EMCO Technologies • Executone of Central Louisiana, Inc. • Felder’s Collision Parts, Inc. • First Bank and Trust • Forte and Tablada, Inc. • GoodPeople • GOTECH, Inc. • Grace and Hebert • Gulf Coast BIDCO • Harmony Center • Harris Manor Realty • Hollingsworth Richards Automotive Group • Iberia Bank • Jacobs Engineering • Johnson Controls • KPMG LLP • Kurz & Hebert Commercial Real Estate, Inc. • Launch Media • Lee Griin • Lee Michaels • Lipsey’s • Lofton Staing Services • Lyons Specialty Company • MidSouth Bank • Neighbors Federal Credit Union • OMNI BANK • Piccadilly Restaurants • Raising Cane’s Chicken Fingers • SJB Group, LLC • Southpoint Volkswagen • SSA Consultants • Star Service • State Bank & Trust Company • Stonehenge Capital Company • Stone Pigman Walther Wittmann, LLC • The Celtic Group • The Livingston Parish News • Union Paciic Railroad • West Feliciana Community Development Foundation • Wright & Percy Insurance BRAC also engages in professional services contracts with Louisiana Economic Development (LED) and the city of Baton Rouge/Parish of East Baton Rouge.
Annual Investment of $15,000+ (Five-year total pledge of at least $75,000)
* Investors in The Creative Capital Agenda will be recognized in the irst quarter 2011 issue of Catalyst.
Adams & Reese Law Firm • Amedisys, Inc. • Antares Technology Solutions • Area Wholesale Tire Company • Atmos Energy • Cox Communications • Irene W. and C.B. Pennington Foundation • Merrill Lynch • Milton J. Womack, Inc. • Object 9 • WHLC Architecture
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