Special Thanks to our Biotech II
Event Sponsors
Mr. Kurt Weigle
President & CEO
Downtown Development District
Honorable Karen Carter Peterson
Louisiana State Senator District 5
Mr. James A. Richardson
John Rhea Alumni Professor of
Economics
Louisiana State University
The New Orleans Economy and the Proposed BioDistrict
Preliminary 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.
THE
Economy of New Orleans: Significant Challenges
93,000 jobs lost
57,000 housing units out of service
Damaged infrastructure
Diminished public services
Minimal private investment
THE
Response of New Orleans : Major Efforts
Major Investments
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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
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Blade Dynamics—windmill blade manufacturing
Transportation Consultants at the Port of New
Orleans
Folgers Coffee expanding sites in New Orleans
and St. 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
for operating ROVs
THE
Future of New Orleans: What we have and what we need
Existing Industries
Tourism
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Convention business coming back modestly,
but still well below 2004 peak
A very special city with over 8 million visitors
Leisure and hospitality still down almost
20,000 jobs
New cruise ships
Port
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Energy
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Business back, but still competing with
aggressive ports in Texas and Alabama
Capacity to double its container/breakbulk
business
Extra ton of cargo adds about 1100 jobs in the
state
Carbon sequestration
Deep water drilling
“Green” industries
Manufacturing Facilities
– Northrup Grumman—closing down but work
is being done to offset some of this decline
– Refineries
Importance of New Industries and New
Approaches
Strength of New Orleans is its downtown district
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Medical District becomes the central element in being a
new industry and being in the downtown district
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None of this dismisses other parts of the city or the
metropolitan area---every inch of the city can feed off the
downtown development and progress
Medical Centers Are Economic Engines
Estimated Economic Significance of Medical Centers in Selected Cities
with Major Medical Research Programs
Health Care is already a major employer in New Orleans, but it is a
support industry more than an economic driver
Employment and Average Annual Pay by Industry in the New Orleans Metropolitan Area
(2009)
Construction Impacts
•The BioDistrict will witness
especially significant
construction impacts within
the first 3 – 4 years as the VA
and UMC hospitals are built
•Construction activity will
generate 7,600 jobs per year
within the first 3 years
•There will be substantially
less construction activity in
years 5–20 as ancillary facilities
and uses are constructed
•In years 6 through 20, ongoing construction activity will
continue to generate 400–550
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)
Economic Impact of BioDistrict
(on an annual basis, 2010 dollars)
Aggregation of Personal Earnings, State
Tax Collections, and Local Tax Collections
(millions of 2010 dollars)
Enduring Economic Impacts
•These employment projections are fundamentally
conservative, as the commercialization of medical
technologies and other advances could yield even
greater employment impacts
•Over 20 years, the District will generate an
additional $595 million in local tax collections and
$700 million in state tax collections
•Over 20 years, the New Orleans region will
experience $9.6 billion in personal earnings as a
result of major investments in the BioDistrict
•By year 5, planned investments in the District will
create or save approximately 5,500 direct jobs and 9,700
total jobs in the metro area
•By year 10, planned investments will create or save
approximately 7,600 direct jobs and 13,400 total jobs in
the metro area
•By year 20, planned investments will create or save
approximately 9,800 direct jobs and 17,200 total jobs in
the metro area
Concluding Remarks
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 accompanying private
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 of long-term and sustained
commitments.
The New Orleans Economy and the Proposed BioDistrict
Preliminary 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.
BioDistrict New Orleans: Opportunities
BioDistrict New Orleans: Community
JOBS
COMMUNITY
ENGAGEMENT
TRAFFIC / PARKING /
WALKING / TRANSIT
EDUCATION
ECONOMIC DEVELOPMENT
JOBS AND TRAINING
COMMUNITY BUILDING
CIVIC LEADERSHIP
HOUSING +
NEIGHBORHOODS
COMMUNITY
SERVING FACILITIES
PARKS +
RECREATION
CHARACTER &
IDENTITY
Thank You!
James P. McNamara - President & CEO
Bonita Robertson - Special Counsel
Jaime Guillory - Comptroller
Arthur Simons - Special Projects
Ishaneka Williams – Social Media
For More Information: www.bionola.org