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SpecialThankstoourBiotechII
EventSponsors
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Mr.KurtWeiglePresident&CEO
DowntownDevelopmentDistrict
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HonorableKarenCarterPeterson
LouisianaStateSenatorDistrict5
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Mr.JamesA.Richardson
John Rhea Alumni Professor of
Economics
LouisianaStateUniversity
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The New Orleans Economy and the Proposed BioDistrictPreliminary Estimates
Dr. Jim Richardson*
John Rhea Alumni Professor of Economics
Louisiana State University
Dr. Richardson has been assisted by Roy Heidelberg, a doctoral student at The Ohio S tate University, and GCR and Associates
*Dr. Richardson is solely responsible for the findings and analysis.
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THE Economy of New Orleans: Significant Challenges
93,000 jobs lost57,000 housing units out of service
Damaged infrastructure
Diminished public services
Minimal private investment
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THE Response of New Orleans : Major Efforts
Major Investments
VA/LSU Medical District Federal City New Orleans Bio-Innovation Center FEMA Dollars for public schools Port of New Orleans New Orleans Cancer Research Center Valero Refinery World War II Museum, Hyatt Hotel, Louis
Armstrong Airport Major prison complex, Twin Span Bridge,
State Highway Projects, levee projects
Ongoing Activities
Blade Dynamicswindmill blade manufacturing Transportation Consultants at the Port of NewOrleans Folgers Coffee expanding sites in New Orleans andSt. Tammany Textron Marine, a new contract from the U.S. Army Second line Stages Film Studio Rooms to Go in St. Tammany Edison Chouest building campus in Mandeville foroperating ROVs
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THE Future of New Orleans: What we have and what we need
Existing Industries
Tourism
Convention business coming back modestly, butstill well below 2004 peak
A very special city with over 8 million visitors Leisure and hospitality still down almost 20,000
jobs
New cruise shipsPort
Business back, but still competing withaggressive ports in Texas and Alabama
Capacity to double its container/breakbulkbusiness
Extra ton of cargo adds about 1100 jobs in thestate
Energy Carbon sequestration Deep water drilling Green industries
Manufacturing Facilities
Northrup Grummanclosing down but work isbeing done to offset some of this decline
Refineries
Importance of New Industries and New
Approaches
Strength of New Orleans is its downtown district
MedicalDistrictbecomesthecentralelementinbeinganewindustryandbeinginthedowntowndistrict
Noneofthisdismissesotherpartsofthecityorthemetropolitanareaeveryinchofthecitycanfeedoffthedowntowndevelopmentandprogress
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Medical Centers Are Economic Engines
Estimated Economic Significance of Medical Centers in Selected Cities with
Major Medical Research Programs
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Health Care is already a major employer in New Orleans, but it is a
support industry more than an economic driverEmployment and Average Annual Pay by Industry in the New Orleans Metropolitan Area (2009)
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Construction Impacts
The BioDistrict will witnessespeciallysignificant
construction impacts within
the first 3 4 years as the VA
and UMC hospitals are built
Construction activity willgenerate 7,600 jobs per yearwithin the first 3 years
There will be substantiallyless construction activity in
years 520 as ancillary
facilities and uses
are constructed
In years 6 through 20, on-going construction activity will
continue to generate 400550
new jobs per year
Construction Activities of VA Hospital, University Medical Center, and Other
Projected Investments in BioDistrict, 2011 through 2030(all dollars in millions)
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These employment projections are fundamentallyconservative, as the commercialization of medical
technologies and other advances could yield even
greater employment impacts
Over 20 years, the District will generate anadditional $595 million in local tax collections and
$700 million in state tax collections
Over 20 years, the New Orleans region willexperience $9.6 billion in personal earnings as a
result of major investments in the BioDistrict
By year 5, planned investments in the District willcreate or save approximately 5,500 direct jobs and 9,700
total jobs in the metro area
By year 10, planned investments will create or saveapproximately 7,600 direct jobs and 13,400 total jobs in
the metro area
By year 20, planned investments will create or saveapproximately 9,800 direct jobs and 17,200 total jobs in
the metro area
EnduringEconomicImpacts
Economic Impact of BioDistrict(onanannualbasis,2010dollars)
Aggregation of Personal Earnings, State Tax
Collections, and Local Tax Collections(millionsof2010dollars)
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Employment Projections are conservative estimates of
impact
Most compelling part are the actual case study evaluations
of communities such as Houston, Birmingham,
Cleveland, Memphis, Chicago, and LaJolla
Research activity and accompanyingprivate
investment have resulted in employment and
economic impacts that exceed our estimates.
The investment in biosciences and research have paid off
very handsomely for the communities. But it has been
the result oflong-term and sustained
commitments.
Concluding Remarks
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The New Orleans Economy and the Proposed BioDistrictPreliminary Estimates
Dr. Jim Richardson*
John Rhea Alumni Professor of Economics
Louisiana State University
Dr. Richardson has been assisted by Roy Heidelberg, a doctoral student at The Ohio State University, and GCR and Associates
*Dr. Richardson is solely responsible for the findings and analysis.
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BioDistrict New Orleans: Opportunities
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ECONOMIC DEVELOPMENT
JOBS AND TRAINING
COMMUNITY BUILDING
CIVIC LEADERSHIP
JOBS
EDUCATION
CHARACTER &
IDENTITY
PARKS +
RECREATION
TRAFFIC / PARKING /
WALKING / TRANSIT
COMMUNITY
ENGAGEMENT
COMMUNITYSERVING FACILITIES
HOUSING +
NEIGHBORHOODS
BioDistrict New Orleans: Community
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ThankYou!JamesP.McNamaraPresident&CEO
BonitaRobertsonSpecialCounsel
JaimeGuilloryComptroller
ArthurSimonsSpecialProjectsIshanekaWilliamsSocialMedia
ForMoreInforma\on:www.bionola.org