Annual Impact Report - 2014

2014 ANNUAL IMPACT REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“Year after year, we have made strides in our economic development efforts—attracting new businesses, growing local companies and creating jobs and opportunities for our people. We’ve put a focus on attracting new retail and have seen Magnolia Marketplace, Walmart, the Outlet Collection at Riverwalk and other shopping

centers put more sales tax revenue in the City’s general fund. I commend the New Orleans Business Alliance for partnering with both the City and the business community to build a roadmap to diversify and strengthen our economy, poised to create economic opportunity for all citizens of New Orleans.”

- The Honorable Mitchell J. Landrieu Mayor, City of New Orleans

2 | NOLABA ANNUAL IMPACT REPORT

NOLABA ANNUAL IMPACT REPORT | 3

TABLE OF CONTENTS

04

05

10

1 2

1 1

06

07

1 3

LETTER FROM OUR LEADERSHIP

ANCHORING THE CITY

CATALYZING NEW GROWTH

RETAIL’S NEXT PHASE

CREATING A COMPETITIVE CITY

AN INDEPENDENT APOLITICAL VOICE

ENCOURAGING INVESTMENT

BY THE NUMBERS


OUR LEADERSHIP

Melissa EhlingerInterim President & CEO

Henry L. Coaxum Jr.Chair, Board of Directors

Now in our fourth year, the New Orleans Business Alliance (NOLABA) continues

to serve as the city’s offi cial economic development organization. With a 17-member professional staff and a highly engaged Board of Directors, we seek solutions to the city’s barriers to economic growth, work to create a competitive climate for business attraction and retention, and serve as independent economic analysts to support public sector initiatives and private sector growth.

It’s a tremendous undertaking. But as the new New Orleans evolves, it is imperative that we do these things thoughtfully and strategically to ensure a positive, long-lasting impact on our community. Our ability to create a strong economic core in Orleans Parish affects the health of our entire region.

This impact report outlines our progress, particularly as we completed the fi rst full year of implementation for ProsperityNOLA, the city’s fi ve-year plan for economic growth. You’ll learn how we’ve worked with business leaders across fi ve target industry clusters to remove impediments to business investment and maximize opportunity for local companies. You’ll better understand our efforts as advocates and on-the-ground experts for Orleans Parish. You’ll discover how our third-party analysis of economic

development projects contributes to more transparent and responsible stewardship of taxpayer dollars. And you’ll see the contribution of new retail investments in Orleans Parish to both our quality of life and funding for city services.

We hope you’ll fi nd these pages informative, and please contact us if you’d like to learn more about all we do to create a thriving, sustainable economic future for all New Orleanians. We look forward to another year of working with you to ensure growth and prosperity for our city.

Sincerely,

Melissa EhlingerInterim President & CEO

Henry L. Coaxum Jr. Chair, Board of Directors

FROM


Engineering a positive economic future is no easy task. Particularly when the economic health of a region depends heavily on the

health of its center. Fortunately, New Orleans has a playbook for growth: ProsperityNOLA. This plan outlines both target industry clusters and work strands that, through carefully developed and executed strategy, will create the greatest opportunity for a sustainable economy.

One of the key themes recognized by the more than 200 business, civic, education and nonprofi t leaders who drafted ProsperityNOLA was the need to maximize our anchor institutions – those employers so deeply rooted in the New Orleans community that they are not likely to move. In 2014, the New Orleans Business Alliance gathered the city’s hospitals, universities and infrastructure agencies to produce ProsperityNOLA-aligned programs that prepare workers, strengthen small businesses and empower entrepreneurs.

EXPLORING BEST PRACTICES & CONDUCTING ORIGINAL RESEARCH

• Co-hosted the New Orleans Strong Cities, Strong Communities Bootcamp with the City of New Orleans for anchor institution leaders and other key partner organizations. This two-day event, funded by the German Marshall Fund and the Surdna Foundation, brought experts from cities across the country to New Orleans to share best practices in anchor institution strategies.

• Led a New Orleans contingent on a mission to Cleveland’s University Circle district to meet with leaders in economic development, entrepreneurship, academia and healthcare to understand how a thriving, inclusive bio sector could be developed in New Orleans.

• Initiated a Healthcare Gap Analysis to determine anchor institutions’ procurement needs and Orleans Parish small businesses’ capacity to fulfi l them. Funded by JP Morgan Chase, this study also looked at technical assistance availability to ensure small business readiness for anchor contracts.

ENSURING A

STRONGERECONOMIC CORE FOR THE REGION

WORKFORCE PARTNERSHIPS & PROGRAMS

When city government and civic leaders developed The Network for Economic Opportunity, a new initiative to lead workforce and minority business efforts targeted to non-working African-American men, we rallied local anchor institutions and business leaders to commit to and participate in the effort.

We also created partnerships to funnel NOLA youth into stable, high-growth career paths with industry-specifi c training. Three programs designed in alignment with ProsperityNOLA were initiated in 2014:

• The Cowen Institute at Tulane University’s Earn & Learn Career Pathways Program introduces participants to careers in ProsperityNOLA-aligned high-growth, high-wage industries of creative digital media and advanced manufacturing/skilled crafts. The year-long apprenticeship program began with 18 young adults ages 18-24 who were neither working nor in school.

• Delgado Community College Summer Science, Technology, Engineering and Mathematics Academy provided students a three-week experiential introduction to theories and techniques found in modern life sciences laboratories. In 2014, nearly 150 New Orleans middle and high school students attended.

• The Recovery School District’s Jump Start program aligns with ProsperityNOLA to ensure career courses and workplace experiences for high school students will prepare them for high-wage, high-growth fields when the program accepts its first cohort in 2015.


For New Orleans to compete, we must marshal every resource and arm every citizen to succeed.

It’s a simple equation that increases the talent pool from which our employers and business investment prospects can draw, improves our city’s overall tax base and offers the potential for enhanced productivity for every enterprise. Building a strong economic core in Orleans Parish sets the foundation for an economically stable and resilient region. That is why the principle that “equity is a growth strategy” remains interwoven into our efforts.

Our work in this arena is possible in great part thanks to support from the Surdna Foundation.

In 2014, we were an integral part of launching two important new initiatives for New Orleans.

POWERMOVES.NOLA

Begun as an outgrowth of ProsperityNOLA, this new national pitch competition and entrepreneurial fellowship program launched during Essence Festival 2014. It is designed to support high growth-potential minority entrepreneurs – those with the capacity to enter the national stage – by leveraging New Orleans’ entrepreneurial ecosystem, resources and culture. The inaugural event featured a Risingstars Boot Camp, presented by Techstars; three Power Pitch competitions, for which 40 companies from New Orleans and across the nation were competitively selected; and a year-long fellowship for start-ups with 25 percent or more of their employees living in New Orleans including a C-level executive.

THE NETWORK FOR ECONOMIC OPPORTUNITY

The Network for Economic Opportunity is a prime example of how various aspects of our work intersect and are geared to ensure that all New Orleanians participate in economic growth. NOLABA brought business leaders to the table as the City of New Orleans led the development of The Network.

IS A GROWTH STRATEGY

EQU

ITY


RETAIL RESURGENCEPHASE IBetween 2010 and early 2014, our retail attraction efforts focused on educating national and regional retail companies about the city’s opportunities. Much of this was achieved by re-establishing a discernible New Orleans presence through the International Council of Shopping Centers (ICSC) and working closely with the local brokerage and developer community. Now, national and regional brands see New Orleans as a great opportunity, as evidenced by the investments featured on the following page.

PHASE IINow that retailers see how others are succeeding in the market, NOLABA’s focus has evolved. As 2014 progressed, we began targeting our outreach and attraction work to address specifi c neighborhood voids, still taking into account each area’s unique character, composition, geography and population. We also began efforts to fi ll gaps among specifi c types and categories, such as junior anchor stores and moderately priced retailers in electronics, furniture/home furnishings and craft/hobby.

SALES TAX COLLECTIONS AT THE END OF 2014 WERE NEARLY

10% HIGHER THAN THE PREVIOUS YEAR,

AN INCREASE OF MORE THAN $14.8 MILLION.

FROM 2011 - 2014, OUR WORK CONTRIBUTED TO

$32.2 MILLION IN NEW SALES TAX REVENUE GENERATED FOR THE CITY’S GENERAL FUND.

IN JANUARY, JUNE AND NOVEMBER OF 2014, THE CITY POSTED THREE OF ITS

HIGHEST RETAIL SALES TAX COLLECTIONS SINCE 2004.

SOURCE: CITY OF NEW ORLEANS


Our incentives analyses, project facilitation and developer assistance efforts propelled these results in 2014:

MAGNOLIA MARKETPLACEWithin the centrally located Claiborne Corridor, one of the city’s largest and most traffi cked streets, Magnolia Marketplace will be home to six moderately priced national retailers, four of which are new to Orleans Parish, and easily accessible to neighborhood residents as well as Claiborne Avenue commuters.

OUTLET COLLECTIONAT RIVERWALKThe mid- to high-end tenants at the nation’s fi rst urban outlet concept saw unprecedented sales fi gures and hiring needs exceeded projections in the fi rst 30 days.

SOUTH MARKETPHASE IIThis $200 million mixed-use, transit-oriented development in the heart of downtown will feature high-end tenants, including both national brands and local retailers.

GROUND BREAKING FOR:


Our incentives analyses, project facilitation and developer assistance efforts propelled these results in 2014:

GENTILLY AND NEW ORLEANS EASTTwo new Walmart stores – totaling more than $42 million in investments and more than 600 jobs – transformed, respectively, a previously blighted location and an area with limited retail options.

PHASE II AT ALGIERS PLAZAExpansion following a $20 million renovation added new national brands that complement the center’s existing tenant mix.

LOWER NINTH WARDCVS, the fi rst major retailer to return to this neighborhood in nine years, announced that a 13,000 s.f. store will anchor a prominent local intersection.

OPENING OF:


We’ve all seen that working together manifests great results. In 2014, NOLABA assembled

businesses, nonprofi ts, educators and community leaders to craft innovative solutions to economic development hurdles.

INDUSTRY COUNCILS

Our Industry Councils comprise more than 160 business owners, educators, workforce developers and industry leaders across the fi ve ProsperityNOLA industry clusters – Advanced Manufacturing, BioInnovation and Health Services, Creative Digital Media, Sustainable Industries and Transportation, Trade and Logistics. In 2014, they met a combined 120 times throughout the year to devise solutions to entrenched issues and to seize opportunities.

COMPREHENSIVE ZONING ORDINANCE

During the overhaul of New Orleans’ 1970s-era Comprehensive Zoning Ordinance (CZO), our dual role as both the voice of the business community and an adjunct to city government enabled us to mediate between sometimes-opposing forces for the greater good of the community. Over the three years since the initial CZO draft was released, NOLABA has worked to ensure the fi nal document facilitates economic growth for all residents and businesses of Orleans Parish.

Our fi rst step was a detailed review of the more than 600-page document. NOLABA staff

members then regularly met with area employers, universities, developers, local nonprofi ts/membership organizations and other partners and stakeholders seeking and synthesizing their input, questions and concerns. We shared that information with the City Planning

Commission throughout the comment process and recommended revisions. As a result, the City

Planning Commission accepted the overwhelming majority of our recommendations, including

• Adjusting requirements to streamline the design review process and ensure it is not overly burdensome

• Removing parking maximums in select commercial districts to help attract retail prospects

• Improving the development prospects of the Six Flags site through a new zoning designation

• Increasing the height limit of select commercial parcels along highways and interstates to 12 stories to facilitate hotel development

Each of these revisions ensures a transparent and effi cient process for doing business, and builds on a document that promotes thoughtful economic growth while advancing the overall quality of life for all New Orleanians.

MOBILIZING LOCAL

LEADERS FOR

A STRONGER CITY NOLABA has

worked to ensure the new CZO facilitates

economic growth for all residents

and businesses of Orleans Parish.


NOLABA serves as both a clearinghouse for on-the-ground expert information and as independent third-party

analysts for both business and government.

INCENTIVE ANALYSES Our business development andreal estate experts perform independent analyses on all commercial projects requesting public investment or support in the form of local incentives. NOLABA’s goal is always to ensure that projects applying for these vehicles align with the city’s economic goals, provide adequate return on investment, offer equitable opportunity for citizens and will make positive contributions – long-term and short-term – to the economic fabric of New Orleans. We ensure they create jobs, revive neighborhoods and grow the city’s overall budget through sales tax and general economic activity.

In 2014, NOLABA’s incentives analyses contributed to the successful initiation of 13 commercial projects seeking property tax incentive support, which helped drive the

improvement and redevelopment of under-utilized or out-of-use structures. These projects totaled approximately $110 million in capital expenditures, represented 450 local jobs and included

• Projects by TransDev Services, Inc., manager of the Regional Transit Authority, to enhance public

transportation citywide

• South Market Phase II, a high-end retail and residential development downtown • Carver Theatre, a restored historic Treme event and live performance venue

• Ace Hotel, repurposing of the former Max Barnett furniture building near the South Market

development

• Individual retail developments in nearly every city neighborhood

RESOURCES FOR BUSINESSWe’re the go-to experts for on-the-ground information about Orleans Parish, whether for demographic data, sourcing available real estate, or assistance with city permitting and zoning. In 2014, we fi elded 84 queries from investors and developers looking for information about doing business in the Crescent City.

PUBLIC SECTOR INITIATIVES AND PRIVATE SECTOR GROWTH

SUPP

ORT

ING

IN CAPITAL EXPENDITURES

IN 2014 NOLABA'S INCENTIVES

HELPED CREATE

$110 MILLION


Traditional economic development rests largely on a three-legged stool of activities: retaining local business, attracting new

investment and cultivating expansion.

Because the lion’s share of a community’s economic growth typically comes from local businesses, NOLABA works to foster growth among small businesses, helping them become stable and sustainable contributors to our economy over time. To that end, last year, NOLABA rallied business support for and contributed staff expertise to the following endeavors:

• Co-sponsored the Annual Innovation Louisiana BioChallenge, a life sciences pitch competition that awarded $25,000 to an emerging Louisiana company. NOLABA staff recruited a panel of leading angel investors to discuss their role in early stage funding and local entrepreneurs’ preparedness to receive external capital.

• Galvanized anchor institutions and the area’s larger employers to share opportunities with local small businesses through the Louisiana Chapter of the Association for Corporate Growth’s “Louisiana’s Got Talent” small business expo. The half-day event was designed to encourage area small businesses to connect with leading employers for prospective procurement and contracting opportunities.

• As a result of NOLABA’s direct new business attraction and project facilitation efforts, Cobalt Medical Development broke ground on a $22 million rehabilitation hospital in Mid City that will support 165 new jobs.

We must also make the case for New Orleans in the right places, representing the city to business leaders at events where industry decision makers gather – both at home and afi eld. This year NOLABA experts advocated for New Orleans through organizations and events such as the International Council of Shopping Centers’ national and regional conferences, South by Southwest, Detroit delegation visit, and other industry-related events.

BUSINESSRETENTION, ATTRACTION, EXPANSION


STATEMENT OF OPERATIONAL REVENUE AND DEPARTMENT EXPENSES*

OPERATIONAL REVENUECity of New Orleans....................................................................................................................................................................................$1,500,000

Private Investments & Foundations............................................................................................................................................................$766,400

Federal Grant...................................................................................................................................................................................................$426,300

Other Revenue....................................................................................................................................................................................................$21,600

TOTAL OPERATING REVENUE .................................................................................................................................................................$2,714,300

DEPARTMENT EXPENSESStrategy, Industry & Research.......................................................................................................................................................................$737,700 Includes research, fi nancial analysis and ProsperityNOLA implementation

Business Development....................................................................................................................................................................................$561,700 Includes corporate attraction, business retention and expansion, retail attraction and development

Communications..............................................................................................................................................................................................$330,600 Includes marketing and public relations efforts

Finance & Operations.......................................................................................................................................................................................$526,100 Includes fi nancial management, administrative and support services

Stakeholder Relations......................................................................................................................................................................................$237,900 Includes investor relations and fundraising efforts

TOTAL DEPARTMENT EXPENSES.......................................................................................................................................................... ...$2,394,000 * Unaudited as of April 1, 2015

Additional $300,000 reserved for BioInnovation & Health Services cluster initiatives.

NOLABA consistently seeks to achieve fi scal and operational excellenceTo that end we have • Maintained a clean fi nancial audit every year since inception in 2010• Recruited and retained a high quality staff to support expanded programs and services• Monitored and upheld accountability and transparency in all organizational dealings


2014 BOARD OF DIRECTORS & STAFFAs a public-private partnership, the New Orleans Business Alliance Board of Directors represents this combination of public and

private interests. The Board comprises 10 private sector members, the Mayor (or proxy), four mayoral appointees and two City Council appointees. During the nomination of NOLABA’s private sector Directors, the University Presidents Advisory Committee vets nominees

for qualifi cations outlined in the organization’s bylaws and ultimately selects these Board Members.

EXECUTIVE COMMITTEEHenry L. Coaxum Jr. ChairPresident, Coaxum Enterprises, Inc.

Leslie Jacobs Vice Chair

Justin T. Augustine III Treasurer Vice President, TransDev Services, Inc.

John C. Hope III Secretary Former Chairman and CEO, Whitney National Bank and Whitney Holding Corp.

Hon. Mitchell J. Landrieu Mayor of the City of New OrleansAimee Quirk, Mayoral Proxy

Charles Rice President and CEO, Entergy New Orleans, Inc.

BOARD MEMBERSR. Erich Caulfi eldPresident, The Caulfi eld Consulting Group

Andrea ChenExecutive Director, Propeller

John HollowellExecutive Vice President, Shell Deep Water

Patricia HightowerPresident and CEO, Bayou Equity Mortgage

Darlene Kattán KATTÁN Business & Consulting Services

Michael W. Kearney Sr. President and CEO, The Kearney Companies, Inc.

Rita LeBlanc

Gregory Rusovich President and CEO, Transoceanic Trade & Development Co., LLC

Hon. Ronald J. SholesPartner, Adams and Reese, LLP

Hon. Jason R. WilliamsCouncilmember-At-Large, New Orleans City Council

Robert WolfarthOf Counsel, Baker Donelson

UNIVERSITY PRESIDENTS ADVISORY COMMITTEE

Dillard UniversityPresident Walter M. Kimbrough, Ph.D.

Loyola University New OrleansPresident Kevin W. Wildes, S.J., Ph.D.

Our Lady of Holy Cross CollegePresident David M. Landry, Ph.D.

Southern University at New OrleansPresident Victor Ukpolo, Ph.D. Tulane UniversityPresident Michael A. Fitts, J.D.

The University of New OrleansPresident Peter J. Fos, D.D.S, Ph.D.

Xavier University of LouisianaPresident Norman C. Francis, Ph.D.


NOLABA LEADERSHIP & STAFF

EXECUTIVE LEADERSHIP Melissa Ehlinger Interim President & CEO

Tim Hemphill Chief Financial Offi cer & Chief Operations Offi cer

Abhay Patel Vice President of Business Development

Brenda Canada Director of Retail Attraction

Emilie Tenenbaum Director of Investor Relations & External Affairs

STAFFAlice Allen, Project Manager

Cheyenne Ellis, Senior Associate

Amy B. Ferguson, Public Relations Manager

Royliene Johnson, Operations Assistant

Kertrina Watson Lewis, Marketing Manager

Candice Perkins Montgomery, Program Assistant

Tre Rials, Senior Research Analyst

Fernando A. Rivera, Special Assistant to the President & CEO

Ken Weatherup, Operations Manager


2014 INVESTORSThrough the support of the following organizations and individuals, NOLABA continues to work toward a sustainable thriving

New Orleans for all its residents. We thank the following investors for their continued support.

LEADERSHIP INVESTORS ($20,000 AND ABOVE)

City of New Orleans

U.S. Economic Development Administration

Entergy

First NBC Bank

W.K. Kellogg Foundation

LCMC Health

Leslie Jacobs

JP Morgan Chase Foundation

Shell Oil Company

Surdna Foundation

FOUNDATIONAL INVESTORS ($10,000 - $19,999)

Barriere Construction Co., LLC

Capital One

Goldring Family Foundation

Helis Oil & Gas Company, LLC

Jones Walker

Laitram, LLC

Liberty Bank

New Orleans Saints & New Orleans Pelicans

TransDev Services, Inc.

Whitney Bank

PARTNER INVESTORS ($5,000 - $9,999)

Adams and Reese, LLP

Baker Donelson

Bellwether Technology

Boh Bros. Construction Co., LLC

Canal Barge Company, Inc.

Cooper T. Smith Corporation

Dian Winingder

Dupuy Storage & Forwarding

The Kearney Companies, Inc.

Laurel Outdoor

New Orleans Board of Trade

Regions Bank

Stirling Properties, LLC

Stone Pigman Walther Wittman, LLC

Transoceanic Trading & Development Company, LLC

Woodward Design+Build

SUPPORTING INVESTORS (UP TO $5,000)

All South Consulting Engineers

The Boeing Company

Health Education Authority of Louisiana

Signs Now

ICSC RECON SPONSORS

Algiers Development District

Algiers Economic Development Foundation

Butler|Callahan

Domain Companies

Downtown Development District

Green Coast Enterprises

The Howard Hughes Corporation

Perez, APC

Westbank Redevelopment Corporation

IN KIND INVESTORS

Adams and Reese, LLP

Baker Donelson

Coaxum Enterprises, Inc.

Harrah’s New Orleans

Hyatt Hotels Corporation

Iberia Bank

Jackson Noble, LLC

John C. Hope III

Jones Walker

Leslie Jacobs

Razorline



(504) 934-4500 | www.nolaba.org

To unite a diverse community of stakeholders to catalyze job growth, create wealth and build an equitable and

sustainable economic future for the new New Orleans.

To reposition New Orleans as the next great American city for business investment, quality of life and economic opportunity.

OUR VISION

OUR MISSION

Date post:	22-Jul-2016
Category:	Documents
Upload:	mark-waguespack
View:	225 times
Download:	0 times

Annual Impact Report - 2014

Documents