Special Thanks to our Biotech II Event Sponsors

Mr. Kurt WeiglePresident & CEO

Downtown Development District

Honorable Karen Carter PetersonLouisiana State Senator District 5

Mr. James A. RichardsonJohn Rhea Alumni Professor of Economics

Louisiana State University

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.

THE Economy of New Orleans: Significant Challenges

93,000 jobs lost57,000 housing units out of

serviceDamaged infrastructure

Diminished public servicesMinimal private investment

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 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 IndustriesTourism

– 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– 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

Energy– 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

– Medical District becomes the central element in being a new industry and being in the downtown district

– 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, on-going 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)

• 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

Enduring Economic Impacts

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)

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.

Concluding Remarks

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.

BioDistrict New Orleans: Opportunities

ECONOMIC DEVELOPMENTJOBS AND TRAINING

COMMUNITY BUILDINGCIVIC LEADERSHIP

JOBS

EDUCATION

CHARACTER & IDENTITY

PARKS + RECREATION

TRAFFIC / PARKING /WALKING / TRANSIT

COMMUNITY ENGAGEMENT

COMMUNITY SERVING FACILITIES

HOUSING + NEIGHBORHOODS

BioDistrict New Orleans: Community

Thank You!

James P. McNamara - President & CEOBonita Robertson - Special Counsel

Jaime Guillory - ComptrollerArthur Simons - Special Projects

Ishaneka Williams – Social Media

For More Information: www.bionola.org