Therefore it is no surprise that it is a larger story in Baton Rouge than elsewhere. Anyway, The Baton Rouge Business Report’s (as fine a local business publication as there is in the United States) Olivia Watkins interviewed me on how those of us in the industry viewed the impact and fallout from this. It was a long discussion, but some of my thoughts on how this kind of thing has played out in the past made it into this story.

Technorati Tags Baton Rouge, Baton Rouge Business Report, CDS, fraud, Ponzi Schemes, Recievers, Stanford Group

A Dallas company is listing the Towne Center at Cedar Lodge retail center as an investment opportunity. Holliday Fenoglio Fowler is marketing the 358,000-square-foot shopping center as a trophy asset, noting that the retailers in Towne Center such as Whole Foods, American Eagle Outfitters and Coldwater Creek are consistently bringing in sales from $375 to $500 per square foot. The shopping center is nearly 97% occupied, HFF says.

Stephen Keller of Creekstone Companies, which owns Towne Center, was out of the country and unavailable for comment this morning. The first Towne Center stores opened in 2005, and the center has attracted a mix of upscale national retailers and New Orleans-area businesses that wanted to set up Baton Rouge locations after Hurricane Katrina. Since developing Towne Center, Keller has started work on two new projects: Juban Crossing, a shopping center/TND at the Interstate 12/Juban Road intersection in Livingston Parish, and a 125-acre TND in Lafayette.

Tom Cook, an appraiser with Cook Moore and Associates, says Towne Center could sell for between $54 million and $72 million, depending on how high the average rents are. With the dollar being so weak, Cook says Towne Center could end up in the hands of European investors.

That last statement is interesting. Not only is the dollar weak, but it is probably undervalued versus the Euro, meaning that European investors may get a boost to their bottom line over the next couple of years from the dollar appreciating if they buy relatively soon.

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

Technorati Tags Baton Rouge, Currency, real estate, TND, Towne Center, weak dollar

“We have counted $45 billion in construction projects in the area, by far a record number for the region,” Scott says. While other parts of the country struggle economically, the Capital Region is experiencing growth in part from its expanding petrochemical industry.

The film industry is also growing.

The recently released Louisiana Economic Outlook highlights:

• Overall, Louisiana should gain 37,200 jobs in 2008, a 1.9 percent growth rate, and a similar growth in 2009, the report said. It also predicts Baton Rouge will add 14,800 jobs in 2008 and 2009. Even though it is a 2 percent growth rate, it is not as heady as the roughly 20,000 jobs Baton Rouge added within 18 months of Hurricane Katrina.

• Population shifts in Louisiana will continue to aggravate labor shortages, with incentives emerging to keep older workers in the work force and more outsourcing and immigration encouraged. Shortages will be worst in the construction field.
• New Orleans will continue to add jobs at a rate of about 1,000 a month, a growth rate of about 2.4 percent, and the city’s economy will be buoyed by about $16 billion in planned projects.
• Lafayette will leverage an expanding energy economy and hospital and retail growth to create 6,300 new jobs over the next two years, making it one of the state’s hottest metro areas.
• Shreveport/Bossier City should gain 5,800 jobs during the two-year cycle, but a decision to make Barksdale Air Force Base the permanent home for the military’s cyberspace command could make the forecast “wildly too pessimistic” the Outlook authors said.
• Lake Charles is fully recovered, from a job standpoint, from the effects of Hurricane Rita, and will gain 2,800 jobs during the next two years. A $1.4 billion synthetic gas manufacturing plant could become the city’s largest single capital investment.
• High energy prices and shipbuilding activity also will boost Houma, where an expected 5,200 jobs will be created in 2008 and 2009. Oil prices will vary from $58 to $72 a barrel, the report predicts, though recent prices have spiked to the upper $80s.
• More modest growth is forecast in Alexandria (700 to 1,000 new jobs per year) and in Monroe (about 650 new jobs a year).
• Job growth of about 1.8 percent is predicted in the 35 or so mostly rural parishes, though growth will be stronger in St. Mary (energy, fabrication and casino growth); Tangipahoa (retail and service growth spillover from New Orleans) and Vernon (prospects for a potential 4,000-person brigade to be added to Fort Polk).

For a full summary, please click here (pdf).

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

Technorati Tags Baton Rouge, business, Economics, economy, Employment, industry, jobs, Louisiana

BREC’s Planning and Engineering Committee has unanimously recommended a 2.8-mile corridor from Siegen Lane to Bluebonnet Boulevard along Dawson and Ward creeks as the site for East Baton Rouge’s first “linear park.” The concept will be presented to the BREC Commission for possible approval at its next public meeting, scheduled for 5 p.m. on Jan. 24 at BREC’s offices. If the first trail is successful, BREC hopes to create a network of pedestrian and bicycle pathways that would connect the parish’s various parks. The corridor was selected because it’s in a visible location that links many destinations with potential for future growth, landowners support the project and construction can be accomplished quickly, BREC says. More information is available at capp-online.org.

Actually here is a more direct link.

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

Technorati Tags Baton Rouge, BREC, Greenway, linear park, Louisiana, parks, paths, trails

Bobby Jindal took the oath of office as Louisiana’s 55th governor at noon today, becoming the state’s first non-white governor since Reconstruction. Jindal, a 36-year-old Republican and Baton Rouge native, won the October 2007 primary outright against 11 opponents with 54% of the vote. He replaces Kathleen Blanco, a Democrat who chose not to run for a second term.

Here’s a roundup of Jindal’s big day:

—Festivities began at 10 a.m. with the House and Senate meeting in their respective chambers to swear in legislators and elect leaders. The day ends with the invitation-only inauguration ball at 7 p.m. at the River Center. Joel Chaisson, a Destrehan Democrat, was formally elected as Senate president. Jim Tucker, a Terrytown Republican, was elected as Speaker of the House, and Karen Carter Peterson, a New Orleans Democrat, was elected as speaker pro tempore.

—The inauguration is being televised live on Louisiana Public Broadcasting stations across the state, and live videos will be posted at inauguration.louisiana.gov and lpb.org.

—In an Inauguration Day editorial, The Daily Advertiser of Lafayette says that Jindal’s government experience will serve Louisiana well. “Jindal brings to the governor’s office broad experience, proven ability and a remarkable intellect. He has a record of success in every government position he has held. We expect that record to remain intact during his tenure as governor,” the newspaper says. Read the editorial here.

—New Delhi Television Limited, a private Indian station, has an article about how Jindal’s election is a giant step for Indian-Americans politically. There are more than 2.5 million Indian-Americans in the U.S., and many have broken through the glass ceiling and attained leadership roles in business and academics. The article notes how many Indian-Americans are proud of Jindal, but some are concerned about his politics and his backing of tough anti-immigration measures. Read the story here.

—CBS Sports announcer Tim Brando, a Shreveport native and former WAFB sports anchor, served master of ceremonies during the inauguration ceremony. Brando told USA Today why he thought he was selected for the honor. “I guess because I’m a rather verbose compassionate conservative—which Mr. Jindal is,” Brando said.

—A Times-Picayune story this weekend notes how Jindal’s inauguration comes at the perfect time. India is becoming a major economic power, with a growing number of companies looking to expand their operations and trade across the world. Outgoing Louisiana Economic Development secretary Mike Olivier says Jindal will “open up doors in a short period of time” for Indian businesses looking at establishing a presence in the U.S. Read the story here.

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

13 Days After Christmas . . . .
by Bradford Smith

Thirteen days after Christmas, The Hat and The Vest,
Were set to do battle in an epic contest.
The fans had all gathered, from across this great land
Talking smack about everything, including the bands!

For the Tigers and Buckeyes, this was more than a game,
So much more than a trophy, fifteen minutes of fame.
Bragging rights, respect . . . yes, a little thing called
pride
And both the teams claimed they would not be denied.

The Southern Cal Trojans argued their team was better.
The Dawgs started crying, and their Pres wrote a letter!
But as this season played out, only one thing was clear,
It was perfectly fitting that the Tigers were here.

As the kickoff approached, only minutes away
Dorsey remembered he came back for today.
Ciron remembered, not all heroes wear capes,
As he wrote the name “MIKEY” around his wrist tape.

The excitement in the dome could not be contained,
Just a euphoric feeling that’s hard to explain.
The Tiger Band marched to the forty yard line,
Blasted four little notes, that sent chills down the spine.

Down in their locker, L-S-U was ready.
The game was now here, they were focused and steady.
Then down through the tunnel, the Tigers they came.
Les led HIS team, and he called them by name.

“Matt Flynn, now the Jacksons, now Steltz, and LaFell
Get out on that field men, and give these guys hell!
We’ve come from all over, yet we share the same dream,
Tiger Nation’s united by this Damn Strong team!”

Finally the kickoff sailed through the air,
And the Buckeyes were waiting to take it from there.
Aft er less than two minutes, Wells broke a big run.
Tiger fans fell silent and were frankly, quite stunned.

Down ten to nothing, Les laughed at the score.
His teams do not panic, they’ve been there before.
Defying the “experts” at ESPN,
The Tigers came back, and they tied it at ten.

The noise in the dome reached an ear splitting level,
As the fate was decided for poor ole Coach Tressel.
‘Cause with Ten:Fifty-Three, left on the clock,
Ricky broke through their line and came up with a block.

From there it was over. You could say it was done.
Before the Bucks scored again, they were down twenty one.
Coach Sweater-vest’s team had put up a fight,
But were no match for The Hat and HIS Tigers tonight

The boys from Ohio felt the S-E-C wrath,
They watched Les hoist the crystal, after Bo got a bath.
Call it “Divine intervention” or whatever you might,
Destiny wore purple and gold on this night.

Thirty Eight – Twenty Four, is now written in stone.
There are no words for the grit that the Tigers have shown.
Could you be any happier about where we are?
Thank God for our Tigers and the alignment of stars!

The year is now over, and our dreams have come true.
The champs of the land are from L-S-U.
So if you haven’t done it yet, I ask that you do,
Follow Coach Les’s lead and scream out “Waa Hoooooo”

Bradford’s previous effort can be found here.

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

Technorati Tags BCS Championship, football, Jim Tressel, Les Miles, LSU, Matt Flynn, New Orleans, Ohio State, Poem, Sports

Peter Ricchiuti, assistant dean of the A.B. Freeman School of Business at Tulane University, said the New Orleans-area economy is countercyclical because of all the energy interests. When high energy prices cause slumps elsewhere in the nation, he said, the money flows into south Louisiana.

“1980, for instance, was a miserable time for the U.S. economy,” Ricchiuti said, “and it was a boom time here because of oil and gas. A lot of times, the national headlines don’t tell the story for us locally.”

He said even the homebuilding industry is doing well here as recovery from the 2005 storms has thrown everything off-kilter.

“The two things that make it a very different picture is the dependence on oil and gas and Katrina,” Ricchiuti said. “We were at a crippling low and we’re coming back. As far as seeing better numbers, I think that’s baked in the cake.”

My guess is that Peter is right. By the way, if you ever have a chance to hear Peter talk, I have never heard anyone in the investment business funnier, and he is running a fantastic program at Tulane. That being said, I have to disagree with this:

“As a point of entrance, now actually looks pretty good,” Ricchiuti said. “You’ve got pretty low prices, considering the level of corporate earnings and interest rates.

We’ll be discussing the reasons behind this in more detail as we go along. The core reason is that comparing corporate earnings yields to interest rates, the “fed model” as it is known, is something I don’t subscribe to. Still, Louisiana and our hometown are likely to do relatively better than the rest of the nation, something for which we can all be thankful.

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

Technorati Profile

Technorati Tags Baton Rouge, Economics, growth, Lousiana, Peter Richiuti, recession

The Shaw building is among 28 projects chosen from 800 entries for the award. Winners were recognized for excellence in the categories of exterior architecture, interior architecture, and regional and urban design. Thirteen of the winning projects were recognized in the architectural category largely for sustainability. Baton Rouge firm Schwartz/Silver Architects designed the Shaw Center project. According to AIA, “the architects combined two primary public venues, the Museum of Art and the performing arts theaters, to form a single structure that cantilevers over the historic rebuilt Auto Hotel. Clad in channel glass and aluminum, the building is designed to withstand major hurricanes, as demonstrated by weathering hurricanes Katrina and Rita shortly after it opened.”

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

Technorati Tags Architecture, arts, award, Baton Rouge, Louisiana, Shaw Center