Richardson Estimates 01-14-2011

8/7/2019 Richardson Estimates 01-14-2011

1/19

SpecialThankstoourBiotechII

EventSponsors


2/19

Mr.KurtWeiglePresident&CEO

DowntownDevelopmentDistrict


3/19

HonorableKarenCarterPeterson

LouisianaStateSenatorDistrict5


4/19

Mr.JamesA.Richardson

John Rhea Alumni Professor of

Economics

LouisianaStateUniversity


5/19

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.


6/19

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


7/19

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


8/19

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


9/19


10/19


11/19

Medical Centers Are Economic Engines

Estimated Economic Significance of Medical Centers in Selected Cities with

Major Medical Research Programs


12/19

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)


13/19

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)


14/19

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)


15/19

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


16/19

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.


17/19

BioDistrict New Orleans: Opportunities


18/19

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


19/19

ThankYou!JamesP.McNamaraPresident&CEO

BonitaRobertsonSpecialCounsel

JaimeGuilloryComptroller

ArthurSimonsSpecialProjectsIshanekaWilliamsSocialMedia

ForMoreInforma\on:www.bionola.org

Documents

Richardson Estimates 01-14-2011