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
•  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 Industries

Tourism
–  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 Importance of New Industries and New
jobs
–  New cruise ships Approaches
Port Strength of New Orleans is its downtown district
–  Business back, but still competing with
aggressive ports in Texas and Alabama
–  Capacity to double its container/breakbulk –  Medical
District
becomes
the
central
element
in
being
a

business new
industry
and
being
in
the
downtown
district

–  Extra ton of cargo adds about 1100 jobs in the
state –  None
of
this
dismisses
other
parts
of
the
city
or
the

metropolitan
area‐‐‐every
inch
of
the
city
can
feed
off
the

Energy downtown
development
and
progress

–  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
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 Construction Activities of VA Hospital, University Medical Center, and Other
Projected Investments in BioDistrict, 2011 through 2030
especially significant (all dollars in millions)
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
 Economic Impact of BioDistrict Aggregation of Personal Earnings, State Tax
(on
an
annual
basis,
2010
dollars)
 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 EDUCATION

ECONOMIC DEVELOPMENT
TRAFFIC / PARKING / JOBS AND TRAINING HOUSING +
WALKING / TRANSIT NEIGHBORHOODS
COMMUNITY BUILDING
CIVIC LEADERSHIP

PARKS + COMMUNITY
RECREATION SERVING FACILITIES

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
Informa\on:
www.bionola.org