18.11.2012 Views

ADAM KNAPP - Baton Rouge Area Chamber

ADAM KNAPP - Baton Rouge Area Chamber

ADAM KNAPP - Baton Rouge Area Chamber

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

������������������<br />

<strong>ADAM</strong><br />

<strong>KNAPP</strong><br />

GETSIT<br />

BRAC LEGISLATIVE<br />

VICTORIES<br />

������������������������<br />

���������������������<br />

AND MORE<br />

��������������<br />

�����������


02<br />

06<br />

13<br />

18<br />

21<br />

cat·a·lyst (kat’l ist) n. — 1) Something that initiates or<br />

causes an important event to happen. 2) A person or thing<br />

that precipitates an event or change. 3) See also energy,<br />

momentum, trailblazer, <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> <strong>Chamber</strong><br />

Our Economy: Update & Outlook<br />

The latest trends in the Capital Region economy.<br />

Our Progress: Measuring Our Success<br />

A report on BRAC’s activities in Q1, 2008.<br />

Legislative Victories<br />

BRAC’s top regional priorities advance.<br />

Adam Knapp Gets It<br />

BRAC’s new CEO has great perspective.<br />

Economic Development Investors<br />

Leading organizations funding<br />

The Campaign for a Greater <strong>Baton</strong> <strong>Rouge</strong>.<br />

FIRST QUARTER 2008<br />

L


ETTER<br />

Chair<br />

from the<br />

Year Three of The Campaign for a<br />

Greater <strong>Baton</strong> <strong>Rouge</strong> is off to a great start.<br />

I am extremely excited to announce that this issue includes an introduction to BRAC’s<br />

new President and CEO, Adam Knapp. Adam has an extensive background in many<br />

aspects of economic development and has worked in both the public and private<br />

sectors. He has a bold vision for maintaining BRAC’s position as the leading<br />

economic development organization in the Gulf South region and will certainly<br />

take the initiatives of The Campaign for a Greater <strong>Baton</strong> <strong>Rouge</strong> to the next<br />

level. After an extensive national search, the BRAC Board is confident that<br />

Adam Knapp has all of the skill sets, knowledge, and enthusiasm that will be<br />

required to be successful in this challenging job.<br />

By no means have we been standing still during this transition. So far in<br />

2008, we have secured four project wins totaling more than 200 high-paying<br />

jobs from our business retention, expansion, and recruitment efforts. The<br />

prospect list continues to grow and we are well on our way to achieving our<br />

goal of 1,200 new jobs by year-end.<br />

The first quarter was also busy at the State Capitol as BRAC provided<br />

important leadership in each of Governor Jindal’s two special legislative<br />

sessions. In this issue, we highlight major successes on several of our<br />

top priorities including governmental ethics laws and enforcement,<br />

transportation funding, the elimination of unorthodox business taxes, and<br />

increased funding for both LSU and the Pennington Biomedical Research<br />

Center. BRAC’s 2008 legislative priorities are well-poised for the regular<br />

legislative session and in good hands with Kristy McKearn as BRAC’s new<br />

Senior Vice President of Governmental Affairs.<br />

I truly believe that our success over the first quarter is a clear indication<br />

of what is to come for the rest of the year—2008 will be a historic time<br />

for the <strong>Baton</strong> <strong>Rouge</strong> area.<br />

Thank you for your support of our important work,<br />

Sincerely,<br />

Jim Ellis


{ T H E E C O N O M Y }<br />

UPDATE<br />

O N T H E BATO N R O U G E A R E A EC O N O M Y<br />

Population estimates diverge in 2007.<br />

Several population estimates for the <strong>Baton</strong> <strong>Rouge</strong> area have been called into question beginning shortly<br />

after the 2005 hurricane season, including more popular Census annual estimates. Several factors made<br />

it difficult for the Census to provide reliable estimates for the <strong>Baton</strong> <strong>Rouge</strong> community immediately after<br />

the storms. First, because it was not possible to make standard census phone calls to homes that no<br />

longer existed or to track down many displaced residents, it was necessary to quantify the population<br />

along the Gulf Coast and the displaced Gulf Coast residents by non-traditional methods. Since the storms,<br />

most population data providers have coupled non-traditional sources of data with traditional baseline<br />

estimates to attain reasonable estimates of the yielded population reality in the Capital Region.<br />

<strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> <strong>Chamber</strong> (BRAC) population<br />

estimates consider a number of local data unavailable<br />

to many national surveys such as housing<br />

vacancy rates, new housing development,<br />

traffic counts, water meter hook-ups,<br />

employment agency counts, the<br />

unemployment rate, job growth,<br />

and public school enrollment.<br />

Additionally, BRAC has regularly<br />

updated a measure of the<br />

‘transient population’ using<br />

sources such as hotel room<br />

counts, filled hospital beds,<br />

Federal Emergency Management<br />

Agency (FEMA) trailer park counts,<br />

school enrollment data, and temporary<br />

shelter counts. This transient population<br />

estimate was not only important in quantifying<br />

the initial temporary surge of population growth,<br />

02<br />

The Capital Region<br />

can expect healthy,<br />

moderate population<br />

and job growth of 1.5<br />

to 2.5 percent.<br />

but also the dynamic settling of this group into new<br />

permanent residences in the <strong>Baton</strong> <strong>Rouge</strong> area, to other<br />

homes in the U.S., or to New Orleans. Using<br />

this technique, BRAC estimated that<br />

the Capital Region had permanently<br />

absorbed an estimated 50,000<br />

to 75,000 new residents by the<br />

beginning of 2006. In 2007,<br />

BRAC estimates that population<br />

growth settled at an aggressive<br />

rate of 2 to 3 percent, well-<br />

above the 10-year pre-hurricane<br />

normal rate of growth. In the first<br />

quarter of 2008, BRAC announced<br />

at its annual economic outlook<br />

event, The Stanford Group Company’s<br />

<strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> Economic Forum:<br />

Insights for Action, that the Capital Region can<br />

expect healthy, moderate population and job growth of<br />

1.5 to 2.5 percent.


The table below compares several<br />

current population estimates for<br />

the years 2005 through 2007. BRAC and<br />

Claritas estimates first attempt to capture an<br />

immediate post-hurricane “peak” in population<br />

that settled down with a loss of population in 2006 of<br />

10 to 15 thousand and 35 thousand persons, respectively.<br />

In 2006, most estimates were within +/- 10,000 persons of the<br />

BRAC 2006 population estimate of 772,000 to 792,000, although<br />

estimates varied widely from the more conservative 767,000 US Census<br />

estimate to the more aggressive 797,000 Claritas estimate. Growth patterns<br />

diverge among the estimates significantly in the year 2007. For example, Claritas<br />

shows a consistent out-flow of population from the <strong>Baton</strong> <strong>Rouge</strong> area starting in early<br />

2006 which reduces the number of residents to 771,000 in 2007. The other two reported<br />

estimates, US Census and BRAC, show growth from 2006 levels but at two notably different rates,<br />

0.4 percent and ~2.0 percent.<br />

The most accurate test of all estimates and eventual resolution on the population debate will come with the 2010<br />

Decennial Census survey. However, recognizing the importance of reliable, up-to-date data in the <strong>Baton</strong> <strong>Rouge</strong><br />

business community, BRAC will continue to provide its population and job estimates as an additional resource<br />

derived from rich local data and continuously adjusted according to local economic indicators.<br />

Job growth in the <strong>Baton</strong> <strong>Rouge</strong> area bucks national trends.<br />

As the population has increased, nonfarm employment<br />

has also increased in the Capital Region. Total first quarter<br />

nonfarm employment for the <strong>Baton</strong> <strong>Rouge</strong> MSA was<br />

369,700, roughly 4,700 (or 1.3 percent) over first quarter<br />

2007 levels. Goods producing employment in the first<br />

quarter 2008 rose by 1,300 from the same period in 2007<br />

while service providing employment grew by 3,400 jobs<br />

over the same time frame. First quarter 2008 labor force<br />

estimates show slight growth (850) over first quarter<br />

2007 revised estimates, with most growth attributable<br />

to new unemployed job-seekers, whose numbers grew<br />

1,090 over first quarter 2007 levels. In the first quarter<br />

Q1 2008<br />

03


{ T H E E C O N O M Y }<br />

2008, East <strong>Baton</strong> <strong>Rouge</strong> Parish maintained the second<br />

largest labor force of any parish in the state. Additionally,<br />

unemployment in the <strong>Baton</strong> <strong>Rouge</strong> area has remained at<br />

historic lows and consistently below state and national<br />

averages.<br />

For the past ten years, job growth in the Capital Region<br />

has averaged 5,400 new jobs per year. The years 2005 and<br />

2006 were banner growth years, with revised estimates<br />

showing new job growth of 10,400 from 2004 to 2005 and<br />

04<br />

+ Jerry Campbell, The Advocate<br />

+ Carey Chauvin, EBR Parish Department of Public Works<br />

+ Lance D’Armond, Gerry Lane Buick-GMC<br />

+ Todd Denton, Mall of Louisiana<br />

+ Marianne Frazee, Frazee Recruiting<br />

+ Hays Owen, <strong>Baton</strong> <strong>Rouge</strong> Water Company<br />

8,100 from 2005 to 2006. Originally, the Bureau of Labor<br />

Statistics estimated 2007 average annual job growth at<br />

7,500 new jobs for the <strong>Baton</strong> <strong>Rouge</strong> area. Recent first<br />

quarter revisions have pushed this number up to 9,900<br />

new jobs, a number better-aligned with the aggressive<br />

growth patterns observed from 2004 to 2006. Further<br />

analysis conducted by BRAC projects that the <strong>Baton</strong><br />

<strong>Rouge</strong> area economy will continue to add 5,000 to 10,000<br />

new jobs each year until 2010, a rate slightly above pre-<br />

storm levels.<br />

Indicators signal economic stability for the <strong>Baton</strong> <strong>Rouge</strong> area moving forward.<br />

The economic distress due to national economic<br />

slowdown now experienced by many in the United States<br />

has not strongly affected the <strong>Baton</strong> <strong>Rouge</strong> area’s economic<br />

situation. Although indicators such as employment and<br />

housing are showing slower growth, they maintain pre-<br />

hurricane growth levels. Additionally, retail spending in<br />

the first quarter of 2008 has increased by 5 percent since<br />

the same period in 2007.<br />

Even as single family home sales have slowed, growth<br />

in the apartment/condo segment has continued. One<br />

indication of this is the overall increase in metered<br />

water accounts in the first quarter 2008 compared to<br />

the same period a year ago despite slowing new home<br />

builds, a phenomenon industry leaders attribute to a<br />

steady volume of new apartment/condo-owned metered<br />

accounts. Active metered accounts rose 3 percent in the<br />

combined areas of East <strong>Baton</strong> <strong>Rouge</strong> Parish, the City of<br />

<strong>Baton</strong> <strong>Rouge</strong>, and Ascension Parish. Continued consumer<br />

confidence remains relatively consistent compared to<br />

C O N T R I B U TO R S<br />

the same quarter last year as well, evidenced by gaming<br />

collections at Hollywood Casino <strong>Baton</strong> <strong>Rouge</strong>—with<br />

nearly $34.8 million in revenue during the first quarter,<br />

virtually unchanged from the $34.9 million the riverboat<br />

collected during the first three months of 2007.<br />

Sales tax collections in East <strong>Baton</strong> <strong>Rouge</strong> Parish have<br />

increased by almost 5 percent during the first two<br />

months of the year. Businesses across the parish<br />

have collected nearly $24 million in taxes, excluding<br />

vehicle sales, according to figures from the City-Parish<br />

Department of Finance. Activity has increased the<br />

most in the unincorporated areas of the parish, with<br />

collections increasing by 8.5 percent. However, sales in<br />

the incorporated areas accounted for the biggest portion<br />

of tax revenues, $14.3 million. For the same time period,<br />

Ascension Parish sales tax revenues increased 6 percent<br />

and Livingston Parish increased 8 percent, respectively.<br />

The remainder of the regional parishes had sales tax<br />

collections consistent with the previous quarter.<br />

+ Mark Phillips, Regions Bank<br />

+ Rene Ragas, Our Lady of the Lake RMC<br />

+ Dr. Loren Scott, Loren C. Scott & Associates, Inc.<br />

+ Steve Thomas, EBR Parish Department of Finance<br />

+ Louisiana Department of Labor


{ O U R P R O G R E S S }<br />

{ O U R P R O G R E S S }<br />

Retain and Expand Existing Businesses<br />

1<br />

Recognizing that about 75% of future job growth<br />

in our region will come from existing businesses, BRAC has developed a<br />

robust business retention and expansion program.<br />

In the first quarter, BRAC began its target industry visitations in the<br />

Capital Region. To date, 10 on-site visitations have been completed<br />

and two expansion projects are in the works.<br />

Attract New Business to Our Region<br />

2<br />

A core function of any effective regional<br />

economic development program is to aggressively sell the region’s<br />

assets to high-potential business prospects.<br />

At the end of Q1, we had 24 ‘Clas


The Campaign for a Greater <strong>Baton</strong> <strong>Rouge</strong> is comprised<br />

of seven strategies that work together to drive<br />

economic development in the <strong>Baton</strong> <strong>Rouge</strong> area.<br />

Each issue of Catalyst features an update on our<br />

progress on each of these seven strategies as well<br />

as a preview of upcoming goals and activities.<br />

SUmmaRy Of BUSINESS DEvElOPmENT PROSPECT aCTIvITy<br />

Type<br />

2008 Project Wins<br />

Prospects: Class A<br />

Prospects: Class B<br />

Prospects: Class C<br />

Current<br />

Quarter<br />

Project Count Job Count (Estimates)<br />

Change from<br />

Prior Quarter<br />

Current<br />

Quarter<br />

Q1 2008<br />

Change from<br />

Prior Quarter<br />

4 N/A 210 N/A<br />

24 -4 4,737 -908<br />

19 0 2,844 -1,221<br />

10 +1 N/A N/A<br />

Prospects: TOTAL 53 -3 7,581 -2,129<br />

*Numbers reflect most recent information at time of publication.<br />

PROSPECTS: CLASS A<br />

Prospect is actively engaged<br />

in dialogue with BRAC or<br />

the Capital Region has been<br />

specifically identified/selected<br />

to present sites through LED.<br />

PROSPECTS: CLASS B<br />

Company/consultant<br />

has requested information<br />

on multiple states/regions;<br />

company identity is<br />

frequently unknown.<br />

PROSPECTS: CLASS C<br />

Company has not requested<br />

any information, but based on<br />

tip/research, may represent a<br />

potential opportunity.<br />

07


{ O U R P R O G R E S S }<br />

CMC CAPITOL STEEL<br />

15 Jobs @ $16/hour, $7MM Capital Investment<br />

CMC Capitol Steel, a local rebar manufacturer, is expanding<br />

operations on Choctaw Drive near Florida Blvd. BRAC uncovered<br />

CMC’s expansion aspirations as part of its regional business retention<br />

and expansion program. BRAC provided assistance with the incentive<br />

process as well as some labor issues by partnering with the local<br />

Workforce Investment Board (WIB).<br />

“[The BRAC] team was very helpful as we began our expansion efforts.<br />

Without [their] assistance we would not have known about the many<br />

programs and incentives that were available to us. Additionally, we<br />

wouldn’t have known how to access them. We are grateful not only<br />

because of the incentives and dollars [they] helped CMC Capitol<br />

Steel save, but also because we felt like we had a partner in the<br />

process that we could go to for help. Thank you for seeking us out.”<br />

Angela Chemin<br />

Controller, CMC Capitol Steel<br />

BATON ROUGE COCA-COLA BOTTLING COMPANY<br />

113 Jobs @ $26/hour, $178MM Capital Investment<br />

<strong>Baton</strong> <strong>Rouge</strong> Coca-Cola Bottling Company is expanding their local beverage<br />

manufacturing facility that will add three additional product lines to their new<br />

location. The new expanded location will become the Southeastern distribution<br />

center for the three new lines (Minute Maid, Vitamin Water, and Powerade). BRAC<br />

assisted with the expansion by:<br />

• working with DOTD to address traffic congestion and red light synchronization<br />

• facilitating acquisition of $1.4 million in EDAP funding from LED to support two<br />

new water wells that <strong>Baton</strong> <strong>Rouge</strong> Coca-Cola needs in order to expand<br />

• providing insight on local Enterprise Zone incentives<br />

“We approached BRAC in the early planning stages of our project and from the onset,<br />

they offered their full resources to assist with local, state, and federal authorities.<br />

Their leadership and support continues today well into the construction phase of<br />

the new <strong>Baton</strong> <strong>Rouge</strong> Coca-Cola facility. BRAC recently organized and facilitated<br />

meetings with city and state officials to assist with the potential expansion<br />

of our project. Because of their leadership we are now pursuing local and state<br />

incentives that will put us in position to accelerate our expansion. It has been a<br />

great partnership.”<br />

Darian Chustz<br />

President, <strong>Baton</strong> <strong>Rouge</strong> Coca-Cola Bottling Company<br />

08<br />

The BRaC team was very<br />

helpful as we began our<br />

expansion efforts.<br />

BRaC recently<br />

organized and<br />

facilitated meetings<br />

with city and state officials<br />

to assist with the potential<br />

expansion of our project.


SChROEDER-WILLIAMS LUMBER COMPANY<br />

40 Jobs, $325,000 Capital Investment<br />

Owned by two veteran lumber manufacturers, Schroeder-<br />

Williams Lumber Company is a start-up that will<br />

manufacture finger-jointed studs. The company will locate<br />

off of Airline and Choctaw. After receiving the lead for<br />

this project from LED, BRAC assisted Schroeder-Williams<br />

with all incentives, as well as permitting information, sign<br />

ordinance laws, and tax information.<br />

“Schroeder-Williams Lumber Company is pleased to<br />

announce the beginning of operations in <strong>Baton</strong> <strong>Rouge</strong>,<br />

Louisiana within the next few weeks. The <strong>Baton</strong> <strong>Rouge</strong><br />

<strong>Area</strong> <strong>Chamber</strong> and LED were pivotal in our decision to set<br />

up our plant here.”<br />

Joe Williams<br />

Schroeder-Williams Lumber Company<br />

APPONE<br />

42 Jobs @ $28/hour, $2MM Capital Investment<br />

AppOne is an Internet-based company that connects independent<br />

automobile dealers with lenders. BRAC worked with AppOne on<br />

every stage of the incentive process.<br />

“The <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> <strong>Chamber</strong> was tremendously helpful<br />

to us in assessing the incentives we should apply for and in<br />

completing the appropriate incentives application. BRAC’s staff<br />

is professional, well informed, and committed to the economic<br />

growth of the Greater <strong>Baton</strong> <strong>Rouge</strong> area.”<br />

W. Lee Domingue<br />

CEO, WKFS/AppOne<br />

Q1 2008<br />

09


{ O U R P R O G R E S S }<br />

3Develop a National Marketing Program<br />

To be successful, it is essential that we market the<br />

<strong>Baton</strong> <strong>Rouge</strong> area nationally and internationally to decision-makers<br />

involved with business relocations and expansions.<br />

In Q1, BRAC wrapped<br />

In Q1, BRAC wrapped up work on two matching grants from LED<br />

totaling $170,000 for the promotion of the <strong>Baton</strong> <strong>Rouge</strong> area as up work on two matching<br />

a destination for digital media companies. The activities funded by these<br />

grants allowed BRAC to develop tradeshow and marketing materials to<br />

support the <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> Digital Industries Consortium (BRADIC).<br />

The materials developed include a tradeshow booth, giveaway items<br />

featuring the BRADIC logo, two brochures promoting the region, a<br />

website, advertising, and a viewfinder with accompanying reel<br />

that features exciting images of the digital media industry in<br />

the <strong>Baton</strong> <strong>Rouge</strong> area. The colorful viewfinders were packaged<br />

and shipped to over 100 digital media company prospects,<br />

identified by BRADIC staff, around the country and internationally.<br />

BRAC and other BRADIC partners are aggressively pursuing the digital<br />

media sector as a growth industry for the Capital Region and are working<br />

to attract innovators, established companies, and startup firms to our region.<br />

BRAC’S ECONOMIC DEVELOPMENT PARTNERS<br />

10<br />

+ Ascension Economic Development Corporation<br />

+ Office of the Mayor-President, City of <strong>Baton</strong> <strong>Rouge</strong>/<br />

Parish of East <strong>Baton</strong> <strong>Rouge</strong><br />

+ East Feliciana Economic Development District<br />

+ Iberville <strong>Chamber</strong> of Commerce<br />

+ Livingston Economic Development Council<br />

+ Greater Pointe Coupee <strong>Chamber</strong> of Commerce<br />

+ St. Helena Parish Economic Development Committee<br />

+ West <strong>Baton</strong> <strong>Rouge</strong> <strong>Chamber</strong> of Commerce<br />

+ West Feliciana Community Development Foundation<br />

grants from LED totaling<br />

$170,000 for the promotion<br />

of the <strong>Baton</strong> <strong>Rouge</strong> area as<br />

a destination for digital<br />

media companies.


4Create a Robust Business<br />

Intelligence Capability<br />

Site-selection consultants, real estate<br />

executives, and other business decisionmakers<br />

depend on BRAC to provide detailed<br />

information about our region and the<br />

regional economy.<br />

On January 30, BRAC hosted the <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong><br />

Economic Forum 2008: Insights for Action, providing<br />

national, regional, and statewide perspectives on the<br />

Capital Region’s economy. BRAC’s projections were<br />

based on an extensive survey of regional business<br />

leaders co-authored with the Greater <strong>Baton</strong> <strong>Rouge</strong><br />

Business Report, interviews with key experts and leaders<br />

from across the region, and national economic reports.<br />

The event was sponsored by Stanford Group Company.<br />

A complete report of the findings presented, as well<br />

as a downloadable broadcast of the event, are available<br />

at brac.org.<br />

6Create a Robust Public Policy Capability<br />

At the same time that BRAC is promoting the <strong>Baton</strong> <strong>Rouge</strong> area to businesses<br />

looking to relocate or expand, we are working with business and government leaders to address our area’s<br />

weaknesses.<br />

In January, BRAC publicly announced its 2008 priorities and positions on major economic development<br />

issues in Designing the Creative Capital of the South: <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> <strong>Chamber</strong>’s 2008 Agenda. The<br />

document, available at brac.org, represents the extensive work conducted through BRAC’s 2007 Issue Council<br />

program and 2008 business planning effort. BRAC continuously advocates for its priority issues, with particular Q1<br />

focus on top legislative priorities.<br />

Kristy McKearn joined the BRAC team in the first quarter as BRAC’s Senior Vice President of Governmental<br />

Affairs. Kristy, who most recently worked for Baker Donelson, has twice worked with BRAC on a contractual<br />

basis and brings a wealth of experience in advocacy and public policy.<br />

BRAC was extensively involved in monitoring and advocating for its top priorities in each of the two<br />

special legislative sessions called by Governor Bobby Jindal this spring. For more information on<br />

BRAC’s activities and victories in these two sessions, see the article on page 13.<br />

During the first quarter, BRAC hosted several meetings with regional leaders to discuss<br />

BRAC’s priorities for the Capital Region. From regional <strong>Chamber</strong> leaders and<br />

legislators to local officials, BRAC has worked diligently to build relationships<br />

across parish lines. In addition, BRAC continues to advocate for community<br />

leaders to fill openings on important boards and commissions throughout<br />

the region.<br />

Create a Special<br />

Opportunity Fund<br />

5The ability to react quickly and flexibly to<br />

economic development opportunities that<br />

arise—both to help existing businesses expand<br />

and to bring new businesses to the <strong>Baton</strong><br />

<strong>Rouge</strong> area—is critical to the success of our efforts.<br />

In the first quarter, BRAC used the Special Opportunity<br />

Fund to option property in East Feliciana Parish for<br />

a business development prospect. Project Dwelling,<br />

a modular home manufacturer, is a Class A prospect<br />

with 150 jobs considering a move to Clinton, Louisiana.<br />

More information about this exciting project win will be<br />

available in the Q2 issue of Catalyst.<br />

Q1 2008<br />

11


{ O U R P R O G R E S S }<br />

Launch a Regional Learning Community Initiative<br />

7<br />

Our economic development efforts rest on our ability to develop and sustain<br />

high-quality educational institutions and to train individuals capable of making a contribution to<br />

the community.<br />

BRAC endorsed the East <strong>Baton</strong> <strong>Rouge</strong> Parish School System tax renewal which successfully passed in<br />

March. BRAC has secured a role in the creation of the new career and technical high school that will<br />

be built with the tax renewal dollars and has been assured that the business community will be a partner<br />

in the process.<br />

12<br />

On March 12, 2008, EPA significantly strengthened its<br />

National Ambient Air Quality Standards for ground-level<br />

ozone and revised the 8-hour “primary” ozone standard<br />

to a level of 0.075 parts per million (ppm). Under the new<br />

.075 ppm standard, 345 monitored counties in the U.S.<br />

would be in non-attainment based on 2004-2006 data.<br />

Multiple Louisiana parishes covering the Shreveport,<br />

Lake Charles, <strong>Baton</strong> <strong>Rouge</strong>, and New Orleans metropolitan<br />

areas would likely be in non-attainment. States must make<br />

recommendations to EPA no later than March 2009 for<br />

areas to be designated attainment, non-attainment,<br />

and unclassifiable, and EPA will issue final designations<br />

of areas by March 2010.<br />

In addition to changing the 8-hour standard, EPA is<br />

changing the Air Quality Index (AQI) to reflect the new<br />

primary standard. The AQI is EPA’s color-coded tool<br />

designed to inform the public about daily air pollution<br />

levels in their community. Louisiana Department of<br />

Environmental Quality has predicted a significant increase<br />

in the number of “unhealthy” days, not due to poorer air<br />

quality, but due to a change in the standard.<br />

BRAC staff will continue to work with the <strong>Baton</strong> <strong>Rouge</strong><br />

Clean Air Coalition and the Business and Industry SIP Task<br />

Force to review impacts of the new standard and evaluate<br />

potential impacts on business activity in our region.


ThE lEgISlaTIvE SEEDS PlaNTED By BRaC laST yEaR aRE<br />

alREaDy PRODUCINg a BOUNTIfUl haRvEST Of REfORm<br />

aND PROgRESS. aND, afTER TwO SPECIal lEgISlaTIvE<br />

SESSIONS CallED ThIS SPRINg By gOvERNOR BOBBy JINDal,<br />

ThE fORECaST IS ExCEllENT fOR CONTINUED gROwTh.<br />

13


14<br />

LLast year when BRAC spearheaded the<br />

The sun conTinued To shine on BRAc’s legislATive pRioRiTies duRing<br />

The second speciAl session cAlled in MARch By The goveRnoR.<br />

With BRAC’s urging and oversight, great strides were<br />

made for the elimination of unorthodox business<br />

taxes. Victories include the accelerated phase-out of<br />

state sales taxes on manufacturing machinery and<br />

equipment; accelerated phase-out of the corporate<br />

franchise tax on borrowed capital; elimination of certain<br />

sales taxes on capital investment, and the lowering of<br />

state sales and use tax rates by one percentage point<br />

With BRAC’s urging<br />

and oversight, great<br />

strides were made for the<br />

elimination of unorthodox<br />

business taxes.<br />

on electricity, natural gas, and water and steam; a state<br />

income tax deduction for private and home school<br />

elementary and secondary education tuition and fees,<br />

including uniforms, textbooks, and school supplies; and<br />

exempting from state income taxes the 2008 Economic<br />

Stimulus Act federal income tax rebates.<br />

formation of LA Ethics 1, the goal was<br />

“transforming Louisiana into a national<br />

model for governmental ethics laws and<br />

enforcement.” Just months later, that goal is<br />

becoming reality. The first special session<br />

of the Louisiana Legislature in February<br />

Other noteworthy accomplishments of the second<br />

special session of 2008 include reauthorization of<br />

Louisiana’s participation in the federal New Markets Tax<br />

Credit Program with the provision for an additional $50<br />

million in credits, and the dedication of certain revenues<br />

to transportation projects.<br />

of 2008 was a triumph for the goals<br />

LA Ethics 1 shared by Governor Jindal.<br />

The comprehensive package of ethics<br />

reforms passed overwhelmingly,<br />

and the nation is taking notice. The<br />

national Center for Public Integrity<br />

reports, “The law earned 99 out of a<br />

possible 100 points on a survey used by the Center to rank public disclosure requirements for state legislators<br />

and puts Louisiana’s law on par with the nation’s best financial disclosure laws.”<br />

BRAC funding priorities also saw many victories in the<br />

second special session’s supplemental appropriation<br />

of $1.1 billion in one-time surplus funds. Funding for<br />

statewide transportation needs, including major projects<br />

to relieve congestion in the <strong>Baton</strong> <strong>Rouge</strong> area, are a high<br />

priority for BRAC, and the session included almost<br />

$530 million in funding for Louisiana Department of<br />

Transportation and Development (DOTD) projects.<br />

LSU’s Pennington Biomedical Research Center (PBRC),<br />

another BRAC priority because of its value and potential<br />

as a driver of economic diversification and expansion,<br />

received an additional $50 million in appropriations.<br />

Other important and prudent appropriations included<br />

investment in repairs to higher education infrastructure,<br />

ports, coastal restoration and management, and<br />

payments to the Unfunded Accrued Liabilities/<br />

Retirement Systems (see chart on page 16).


Key Improvements<br />

to Louisiana’s GovernmentaL ethics Laws<br />

Passed in the First sPecial legislative session<br />

area oF Law<br />

FinanciaL<br />

DiscLosure<br />

conFLicts<br />

oF interest<br />

Lobbyist<br />

reGuLation<br />

FreeDom oF<br />

inFormation<br />

improvinG<br />

eDucation &<br />

enForcement<br />

combatinG<br />

FrauD & abuse<br />

campaiGn<br />

Laws<br />

Source: LA Ethics 1; BRAC analysis<br />

LeGisLation passeD in 2008 speciaL session…<br />

Created a three-tiered financial disclosure structure for statewide elected officials,<br />

legislators, and certain appointed and locally elected officials.<br />

Established new restrictions for certain public officials contracting with state<br />

government. Other legislation repealed the sporting and cultural event ticket<br />

exception and instituted new rules for legislative recusal.<br />

Instituted a $50, per occasion, food and drink cap for spending on public servants.<br />

In addition, new reporting requirements were created and restrictions put in place<br />

to prevent the lobbying of staff and their family members.<br />

Prohibited the use of counter letters to circumvent the Code of Ethics and required<br />

the posting of a governmental spending database on the Internet.<br />

Provided for additional ethics training requirements, established new guidelines for<br />

Board of Ethics composition, and created an Adjudicatory Board of administrative<br />

law judges to hear ethics proceedings investigated by the Board.<br />

Provided additional protection for whistleblowers, established the state Office<br />

of Inspector General (OIG) in statute, and increased statutory authority for local<br />

OIGs and ethics entities.<br />

Created new guidelines for electioneering communications, transition teams, and<br />

electronic filing. Additional legislation required disclosure by 527 entities and the<br />

timely payment of ethics fines by candidates.<br />

15


– cOmPOnents Of –<br />

$1.1 Billion Supplemental Spending Bill<br />

Which Address OngOing BrAc PriOrities<br />

16<br />

$ miLLions<br />

in spenDinG<br />

proposeD<br />

hiGher eD $75<br />

uaL payments $60<br />

penninGton $50<br />

ports $42<br />

other $43<br />

DotD $530*<br />

coastaL<br />

restoration $300<br />

*DOTD PROPOSED SPENDINg<br />

$100 mIllION


looKing ahead<br />

On the eve of the 2008 regular session of the Louisiana Legislature, another of BRAC’s<br />

priorities took a big step forward when Governor Jindal announced his intended<br />

overhaul of the state’s approach to workforce development. Jindal called his series<br />

of bills “the single most important issue” going into the session. For the past two<br />

years, the number one concern of area business leaders has been the availability<br />

of qualified employees. Reform of the current systems could go a long way to<br />

addressing the concerns.<br />

Louisiana Economic Development Secretary Stephen Moret identified the<br />

deficiencies in developing and training a qualified labor force while President<br />

and CEO of BRAC. “We believe the system we have today is essentially designed to<br />

fail,” Moret said in support of the governor’s legislative initiatives.<br />

For the past<br />

two years, the<br />

number one<br />

concern of area<br />

business leaders<br />

has been the<br />

availability<br />

of qualified<br />

employees.<br />

a NUmBER Of PROPOSED BIllS SEEk TO aCCOmPlISh whOlESalE ChaNgES, INClUDINg:<br />

• Reorganization of the Department of Labor and renaming it the Louisiana Workforce Commission.<br />

• Coordination of worker training programs across state agencies.<br />

• Contracting training services with regional boards that would have control over federal funds<br />

for worker training.<br />

• Putting business leaders in charge of local workforce investment boards.<br />

• Changing forecasting reports to include anticipated demand for jobs by occupation and industry.<br />

• Reformulating state spending for community and technical college students in order to develop a<br />

workforce that will fill the needs of potential employers.<br />

• Developing Centers of Excellence at community colleges to focus on key industries.<br />

• Investing $10 million in the next year for new training funds to match market demand for certain jobs.<br />

While workforce development will be a major focus in<br />

the regular session, BRAC will be equally busy advancing<br />

a variety of issues important to Louisiana’s future. LSU<br />

must continue its progress to becoming a premier<br />

public research university, and BRAC is working with<br />

the university on legislation that will enable it to grow<br />

its student enrollment while improving its financial self-<br />

sufficiency and standing in the academic community.<br />

The potential of PBRC is unlimited, and securing<br />

additional funding enhancements is being vigorously<br />

pursued. A realistic and sustainable solution for<br />

transportation infrastructure is being advanced,<br />

including the strategic use of tolls. Bold public education<br />

reforms are needed to increase student achievement,<br />

and numerous opportunities are possible to take the<br />

state’s business development efforts to the next level.<br />

While much has been achieved in the special sessions,<br />

there is still much left to do in the regular session. BRAC’s<br />

Governmental Affairs team and Legislative Committee<br />

are diligently tracking hundreds of bills that can directly<br />

impact the business community. As with every crop, there<br />

will be a need to weed out some things, to nurture others,<br />

and to plan ahead for additional fruits of progress.<br />

17


{ F E A T U R E A R T I C L E }<br />

18<br />

He’s young, enthusiastic, and has a passion<br />

for the Capital Region. He understands<br />

the art of the deal, what it takes to<br />

recruit companies, and the importance of<br />

reforming Louisiana’s workforce systems.<br />

He’s constructed and administered public<br />

policy for two governors and worked<br />

in entrepreneurial environments (not<br />

necessarily at the same time). He’s Adam<br />

Knapp, BRAC’s new President and CEO.


A Lake Charles native, Knapp left Louisiana to attend<br />

college and later worked for Accenture, a global<br />

technology consulting firm, until 2001, when he made<br />

the decision to move back to use his abilities to advance<br />

his home state. Since returning, he has worked in<br />

multiple policy and economic development roles in<br />

state government. As Policy Director for Louisiana<br />

Economic Development (LED) and Chief of Staff and<br />

Deputy Director of Louisiana Recovery Authority<br />

(LRA), he has worked tirelessly for the advancement of<br />

Louisiana’s communities. Now as BRAC’s new leader,<br />

Knapp is committed to fulfilling the promises of The<br />

Campaign for a Greater <strong>Baton</strong> <strong>Rouge</strong> and transforming<br />

our region into the Creative Capital of the South.<br />

“We are very excited and proud to have Adam join the<br />

BRAC team as our new President and CEO,” said Jim<br />

Ellis, BRAC’s Chairman of the Board of Directors. “We<br />

had an extraordinary caliber of applicants from around<br />

the country, but Adam stood out due to his economic<br />

development background, his private and public<br />

sector experience, and his vision for maintaining<br />

BRAC’s position as the leading economic development<br />

organization in the Gulf South region.”<br />

“Adam is the story we all talk about,” he says. “He’s that<br />

bright young Louisiana native who leaves the state to go<br />

to college and an exciting job, and then returns home to<br />

Louisiana to make a meaningful contribution. Adam has<br />

all of the skill sets, knowledge, and enthusiasm that will<br />

be required to be successful in this challenging role.”<br />

<strong>ADAM</strong> <strong>KNAPP</strong><br />

Just minutes after getting the job as President and CEO, Adam was debriefing with Board members<br />

and staff about the opportunities and challenges for BRAC and the fulfillment of The Campaign for a<br />

Greater <strong>Baton</strong> <strong>Rouge</strong>. “BRAC has built a foundation for economic progress,” Knapp notes, “but there’s<br />

so much more to do. My goal is to execute the Campaign’s agenda in order to achieve the things we<br />

are committed to as a community. We are still in the early stages of transforming our region into the<br />

Creative Capital of the South.”<br />

As BRAC passes the halfway point of the five-year Campaign, it continues to make significant strides on<br />

each of the aggressive strategies outlined for investors in 2006. Knapp sees BRAC’s early successes as the<br />

prologue to an increasingly successful transformation of the Capitol Region.<br />

With more than 1,700 jobs created in 2006-2007, BRAC’s business retention, expansion, and recruitment<br />

activities have spurred millions of dollars in capital investment and caught the attention of executives and<br />

site-selectors across the country. Its national marketing efforts have generated a project pipeline that has<br />

doubled in size with many projects in serious negotiation.<br />

Q1 2008<br />

19


Knapp has an in-depth understanding of successful business development<br />

programs from his time as Policy Director for LED and Governors<br />

Foster and Blanco. He played an integral role in landing expansions and<br />

new business from Union Tank Car, Northrop Grumman Ship Systems,<br />

Albemarle Corporation, and Bollinger Shipyards. He also understands the<br />

role policy initiatives play in supporting economic development efforts. He<br />

spearheaded dynamic policy reforms, including the creation of the state<br />

R&D tax credit and the Angel Investor Tax Credit, worked on rewriting the<br />

Quality Jobs Program, developed and strengthened the state’s successful film<br />

and video incentives, and designed Louisiana’s first “Deal Closing Fund.”<br />

“BRAC is doing everything right when it comes to business development,”<br />

Knapp says. “With strong regional partnerships, excellent site-selector<br />

relationships, and a remarkable team, we are well-poised for even more<br />

success in the future.” With a goal of 1,200 new jobs in 2008, BRAC continues<br />

to market the Capital Region nationally and internationally.<br />

BRAC’s leadership in advancing public policies that look to improve the <strong>Baton</strong><br />

<strong>Rouge</strong> area was one of the main reasons Knapp found this job attractive. “I<br />

can’t think of another organization that has been more thorough or more<br />

vocal on issues impacting the future of the Capital Region, and often the<br />

entire state, than the <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> <strong>Chamber</strong>,” he says. “I’m excited to<br />

continue that strong track record for leading economic development in the<br />

<strong>Baton</strong> <strong>Rouge</strong> area.”<br />

Over the past two years, BRAC has released analysis and supported issues<br />

ranging from regional airport options and LSU institutional advancement to<br />

governmental ethics laws and public education reform. It has continued to<br />

articulate the need for more funding for transportation and the Pennington<br />

Biomedical Research Center, the elimination of unorthodox business taxes,<br />

and the reform of Louisiana’s workforce systems. BRAC has emerged as an<br />

authority on regional and statewide issues that will transform and grow<br />

the region.<br />

“The next three years will be an important time for us to continue to provide<br />

leadership in these areas as well as on important issues like technology<br />

transfer and commercialization, and private sector entrepreneurship,” notes<br />

Knapp. “We must remain diligent in our efforts to secure a highly developed<br />

economic future.”<br />

Knapp’s knowledge of the lawmaking process bodes<br />

well for BRAC’s advocacy agenda. His work in the<br />

Governor’s office, at LED, and LRA has allowed him to<br />

develop legislative policy and strategy, pass bills,<br />

create and implement interagency strategic<br />

direction, and form strong relationships<br />

at the local, state, and federal level. Most<br />

notably, Knapp made a significant<br />

contribution to Louisiana’s rebuild<br />

following Hurricanes Katrina and Rita.<br />

“It was both a challenge and a privilege to<br />

serve our state after the storms,” Knapp<br />

says. “My position allowed me to help secure<br />

funds from Washington for our extraordinary<br />

needs, lead the team that set policy direction for the<br />

recovery, advance safer rebuilding strategies, and<br />

implement creative housing strategies to address<br />

chronic poverty.”<br />

20<br />

Knapp’s<br />

knowledge of<br />

the lawmaking<br />

process bodes<br />

well for BRAC’s<br />

advocacy agenda.<br />

With strong<br />

regional partnerships,<br />

excellent site-selector<br />

relationships, and<br />

a remarkable team,<br />

we are well-poised for<br />

even more success<br />

in the future.<br />

Knapp considers his most recent management role at<br />

LRA to be excellent preparation for his new position<br />

at BRAC. “It’s a joy to work with a very talented team<br />

of committed staff and Board members who are<br />

executing on a bold vision. The dynamic at LRA<br />

was much the same. To me, it is exciting to<br />

join an organization with integrity, broad<br />

community support, and strategic<br />

leadership from its Board of Directors<br />

and investors. The excitement for the<br />

future of our region is palpable. This is a<br />

historic time for our state, and the Capital<br />

Region is well-poised for success.”<br />

Ellis, who was chairman of the CEO search<br />

committee, knows that the organization found the<br />

right person for the job. “BRAC has been phenomenally<br />

successful,” he says. “Adam Knapp gets that. But the<br />

BEST of BRAC is ahead of us.”


ECONOMIC DEVELOPMENT INVESTORS<br />

The Campaign for a Greater <strong>Baton</strong> <strong>Rouge</strong><br />

CHAIRMAN’S COUNCIL<br />

ANNUAL INVESTMENT OF $100,000+ (Five-year total pledge of at least $500,000)<br />

All Star Automotive Group • <strong>Baton</strong> <strong>Rouge</strong> <strong>Area</strong> Foundation / Commercial Properties Realty Trust • Credit Bureau of <strong>Baton</strong><br />

<strong>Rouge</strong> Foundation • ExxonMobil • Georgia-Pacific • Louisiana State University System • Mortgage Finance Authority •<br />

Our Lady of the Lake Regional Medical Center<br />

EXECUTIVE COUNCIL<br />

ANNUAL INVESTMENT OF $50,000+ (Five-year total pledge of at least $250,000)<br />

<strong>Baton</strong> <strong>Rouge</strong> General Medical Center • Blue Cross Blue Shield of Louisiana • Breazeale, Sachse & Wilson, L.L.P. •<br />

Capital One • Citadel Broadcasting Company • Clear Channel Radio • Entergy • Greater <strong>Baton</strong> <strong>Rouge</strong> Business Report •<br />

Guaranty Group • Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P. • JPMorgan Chase • Kean, Miller,<br />

Hawthorne, D’Armond, McCowan & Jarman L.L.P. • LUBA Workers’ Comp • Ochsner Health Center <strong>Baton</strong> <strong>Rouge</strong> /<br />

Ochsner Medical Center <strong>Baton</strong> <strong>Rouge</strong> • Phelps Dunbar, L.L.P. • Regions Bank • Taylor, Porter, Brooks & Phillips, L.L.P •<br />

The Business Investment GROUP • The Shaw Group Inc. • Turner Industries Group • Whitney National Bank<br />

AMBASSADOR COUNCIL<br />

ANNUAL INVESTMENT OF $25,000+ (Five-year total pledge of at least $125,000)<br />

<strong>Baton</strong> <strong>Rouge</strong> Coca-Cola Bottling Company • <strong>Baton</strong> <strong>Rouge</strong> Water Company • Brookwood Properties, L.L.C. •<br />

Community Coffee • Dow Chemical Company • EATEL / SunShine Pages • Greater <strong>Baton</strong> <strong>Rouge</strong> Association of<br />

REALTORS® • Hancock Bank • Hollywood Casino • JTS • Lamar Advertising Company • Latter & Blum, Inc. / C.J.<br />

Brown Realtors • MAPP Construction, L.L.C. • Mockler Beverage Company • Wampold Companies • Woman’s Hospital<br />

CORPORATE COUNCIL<br />

ANNUAL INVESTMENT OF $15,000+ (Five-year total pledge of at least $75,000)<br />

Adams & Reese Law Firm • Amedisys, Inc. • Antares Technology Solutions • <strong>Area</strong> Wholesale Tire Company • Atmos<br />

Energy • Cox Communications • Innovative Emergency Management, Inc. • Irene W. and C.B. Pennington Foundation •<br />

Merrill Lynch • WHLC Architecture • Womack Construction<br />

POLICY COUNCIL<br />

ANNUAL INVESTMENT OF $7,500+ (Five-year total pledge of at least $37,500)<br />

Advanced Office Systems, Inc. • American Gateway Bank • Cajun Constructors • Faulk & Winkler, L.L.C. • H&E<br />

Equipment Services, L.L.C. • I.T. by DESIGN • Kleinpeter Farms L.L.C. • La Capitol Federal Credit Union • Louisiana<br />

Technology Park • Mary Bird Perkins Cancer Center • McDonald’s of <strong>Baton</strong> <strong>Rouge</strong> • South <strong>Baton</strong> <strong>Rouge</strong> Journal •<br />

The Louisiana Network, Inc. / Tiger Rag • United Health Care Group, Inc.<br />

SUPPORTING INVESTOR<br />

ANNUAL INVESTMENT OF $2,500+ (Five-year total pledge of at least $12,500)<br />

{ 2006–2010}<br />

Acme Refrigeration of <strong>Baton</strong> <strong>Rouge</strong>, Inc. • Advantage Capital Partners • Armstrong Relocation • Ascension<br />

Economic Development Corporation • Associated Grocers • Babcock Law Firm, L.L.C. • BancorpSouth • <strong>Baton</strong> <strong>Rouge</strong><br />

Duplicating Products • Benny’s Car Wash • EMCO Technologies • Executone of Central Louisiana, Inc. • Felder’s Collision<br />

Parts, Inc. • GoodPeople • Grace and Hebert • GreenScreenTV • Gulf Coast BIDCO • Harmony Center • Holiday Inn Select<br />

Executive Center • Hollingsworth Richards Automotive Group • Iberia Bank • Jacobs Engineering • Johnson Controls •<br />

Kean’s The Cleaner • KPMG LLP • Kurz & Hebert Commercial Real Estate, Inc. • Lee Griffin • Lee Michaels • Lipsey’s •<br />

MidSouth Bank • Object 9 • OMNI BANK • Piccadilly Restaurants • Raising Cane’s Chicken Fingers • Schooley Mitchell •<br />

SJB Group, LLC • Southpoint Volkswagen • SSA Consultants • Stanford Group Company • Star Service • State Bank &<br />

Trust Company • Stone Pigman Walther Wittmann, LLC • The Celtic Group • The Livingston Parish News • West Feliciana<br />

Community Development Foundation • WETCO Restaurant Group • Wright & Percy Insurance<br />

BRAC also receives significant funding support from Louisiana Economic Development (LED) and the City of <strong>Baton</strong><br />

<strong>Rouge</strong>/Parish of East <strong>Baton</strong> <strong>Rouge</strong>.<br />

Q1 2008<br />

21

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!