ADAM KNAPP - Baton Rouge Area Chamber
ADAM KNAPP - Baton Rouge Area Chamber
ADAM KNAPP - Baton Rouge Area Chamber
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<strong>ADAM</strong><br />
<strong>KNAPP</strong><br />
GETSIT<br />
BRAC LEGISLATIVE<br />
VICTORIES<br />
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AND MORE<br />
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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