The Baton Rouge Area Chamber (BRAC) released today an analysis of the results of the recently-completed regular session of the Louisiana Legislature, and its effects on economic development in the nine-parish Capital Region.  The number one priority of BRAC’s legislative agenda was higher education, specifically through its membership in the statewide BILD: Higher Education coalition.  The session results are summarized in an issue brief released today, which can be viewed at www.brac.org/research.

“In a session dominated by the state’s budget crisis, the Baton Rouge area saw significant successes on many different fronts,” stated Adam Knapp, BRAC’s President and CEO.  “In our review, we found that the passage of dramatic pieces of reform legislation and targeted capital investments will better position us for continued economic competitiveness.  The good far outweighed the bad.”

Overall, the session produced a number of meaningful outcomes that will be highly-beneficial to the Baton Rouge area.  These include:

Higher education reform: The Louisiana Granting Resources and Autonomy for Diplomas Act (LA GRAD Act) was by-far BRAC’s number one priority during the legislative session, and its most intense area of legislative action.  In the long term, BRAC estimates that the LA GRAD Act could be the most important piece of legislation for the future of Louisiana State University in its mission to become a flagship public research university.  For Southern University, Baton Rouge Community College, and River Parishes Community College, it will also provide critical resources and lead to performance improvements, appropriate enrollment shifts, and other important reforms.  Although state funding cuts to higher education continue to be a concern, the LA GRAD Act is a bright spot for the future.

Public education reform: The current state of many of the public school districts in the Capital Region, as well as the state as a whole, demand large-scale public education reforms.  BRAC estimates that the 2010 regular session may have been the best session for education reform in the last five years.  During the session, eliminating micromanagement of school board members in personnel matters, increasing teacher performance and accountability through evaluations and incentives linked to student achievement, and allowing schools and districts apply for four-year waivers of state laws or Board of Elementary and Secondary Education (BESE) policies were all much-needed reforms that will allow Louisiana to continue improving the educational outcomes that are necessary in a 21st century society.

Transportation solutions: Transportation issues continue to rank as one of top concerns of the Baton Rouge area business community.  On the whole, significant steps were taken during the session to advance short- and long-term transportation solutions.  To address near-term traffic congestion concerns, the legislature committed $59 million toward BRAC-supported regional traffic congestion projects, including the widening of I-12 and I-10 and the Pecue Lane interchange, bringing the three-year total funding for these priorities to $266 million.  In terms of longer-term transportation solutions, funding to advance the Baton Rouge loop project was a critical outcome of session and one strongly supported by BRAC.  Alternative transportation solutions were also advanced, including a mechanism by which local communities could participate in the development of a high-speed rail line between New Orleans and Baton Rouge, and creating a new mass transit funding source for the Capital Area Transit System (CATS).

University research park: Major public research universities often have public/private developments associated with their activities that will attract and spur innovation to commercialize.  Through the capital outlay bill, the legislature committed the necessary funds toward the creation of true university research park at LSU’s South Campus.

Economic development funding: The legislature ultimately protected economic development project funding in the Louisiana Mega-Project Development Fund, the Rapid Response Fund, and for regional marketing activities, which are critical to regional economic development activities such as BRAC’s.  The legislature also passed an important development financing vehicle for Baton Rouge’s River Park Development District.

As successful as BRAC was during the session, there were some important pieces of legislation that failed to gain passage.  These include an angel investment incentive, a low-cost air carrier incentive, school board term limits, a third-party charter school authorizer, and a more robust healthcare mandate review law.

About the Baton Rouge Area Chamber
The Baton Rouge Area Chamber leads economic development in the nine-parish Baton Rouge metropolitan area.  Serving as the voice of the business community, BRAC’s membership includes more than 1,500 organizations whose employees represent over a third of the Capital Region workforce.

Sales-tax revenues in East Baton Rouge Parish continued to show stability in April, finishing only slightly below the collections from April of 2009.

A report released by the City-Parish Finance Department today shows that revenues from the 2-percent sales tax that goes into the City-Parish General Fund totaled $13.1 million in April, a decrease of 2.76 percent compared to April of 2009. For the first four months of 2010, East Baton Rouge sales tax collections are 5.65 percent below the amount taken in during the same period in 2009.

Mayor Melvin “Kip” Holden said the latest sales-tax numbers show that the Baton Rouge economy recovering from the national recession. The Mayor said he expects the trend of stronger sales tax numbers to continue in East Baton Rouge Parish..

Sales-tax revenues for March of 2010 were only 0.99 percent below the collections for March of 2009.   Prior to that, collections had fallen by 7.22 percent in February, 11.99 percent in January and 15.25 percent in December.

The last time that monthly sales-tax revenues exceeded collections from the previous year was back in March of 2009, when the $14.4 million in sales taxes exceeded the $14.2 million from March of 2008.

The Mayor said East Baton Rouge Parish’s economy has remained stronger than most cities during the national recession, and has managed to avoid service cuts that have become common in many urban areas.

For more information about East Baton Rouge sales-tax collections, go to: http://www.brgov.com/dept/finance/5yrhistsalestax.htm

The Shaw Group Inc. (NYSE: SHAW) today announced it has been awarded a contract with Entergy Operation, Inc., a subsidiary of Entergy Corporation (NYSE: ETR), to provide extended power uprate (EPU) plant modifications at Grand Gulf Nuclear Station in Port Gibson, Miss. The new contract follows a phase one EPU assessment conducted by Shaw’s nuclear engineering team.

Under the new contract, Shaw will provide engineering, procurement and construction services designed to add approximately 178 megawatts of power generation to Grand Gulf Nuclear Station. Engineering and procurement are underway with construction to follow to install plant modifications in spring 2012.

Shaw subsidiaries have provided engineering or maintenance services to nuclear power plants owned or purchased by Entergy since 1973. Shaw’s maintenance contract with Entergy expanded in 2003 and was renewed in 2009 to provide fleetwide nuclear maintenance, modifications and capital construction services to Entergy.

Shaw also has provided several engineering studies and services in the past several years related to uprates at several Entergy nuclear plants, including:

• EPU work at Vermont Yankee
• Stretch power uprate (SPU) work at Indian Point Energy Center Units 2 & 3 and River Bend Station
• Feasibility studies at Grand Gulf Nuclear Station, James A. FitzPatrick, Pilgrim Nuclear Station and Vermont Yankee

“Our long history of nuclear engineering experience combined with our outstanding nuclear maintenance performance places Shaw in the best position to respond to industry demand to provide more energy,” said Fred Buckman, president of Shaw’s Power Group. “Our existing alliance with Entergy enhances our ability to provide them with qualified resources and perform the work needed to license and safely increase power ratings.”

The value of Shaw’s contract is $197 million, which will be included in Shaw’s Fossil, Renewables & Nuclear segment’s backlog of unfilled orders in the third quarter of fiscal year 2010.

Shaw has performed more than 60 uprate projects and studies on boiling water reactor (BWR) and pressurized water reactor (PWR) nuclear units, adding more than 3,000 megawatts to the U.S. grid. Shaw also leads the industry in systemwide maintenance and modification, servicing 35 percent of U.S. nuclear reactors, including Entergy Nuclear.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $10 billion and more than 15,000 employees.

The Shaw Group Inc. (NYSE:SHAW) is a leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2009 annual revenues of $7.3 billion, Shaw has approximately 28,000 employees around the world and is the power sector industry leader according to Engineering News-Record’s list of Top 500 Design Firms. For more information, please visit Shaw’s website at www.shawgrp.com.

The Baton Rouge Area Chamber (BRAC) announced today the results of the regional innovation strategy it developed in order to create a culture that deeply fosters and supports entrepreneurship throughout the Capital Region. The strategy, which was created in collaboration with Louisiana Economic Development (LED), Louisiana State University (LSU), the Louisiana State University System Research and Technology Foundation (LSU RTF), the Research Park Corporation (RPC), and Southern University, recommends the formation of a new regional innovation organization and an agreed-upon plan to create a true university research park.

“These two developments, the new innovation organization and the university research park plan, are the two most critical components of the regional innovation strategy work. Both will have a tremendous, long-term impact on the Baton Rouge area, and our ability to create jobs and increase wealth,” said Adam Knapp, BRAC’s President and CEO. “We would like to thank all of those who gave so graciously of their time to bring this strategy to fruition. Their efforts will lead directly to future entrepreneurs having their ideas embraced and cultivated, thereby ensuring the region’s competitiveness on a national and international stage.”

The strategy results recommend that the regional innovation organization would be the entity responsible for all entrepreneurship and business acceleration services in the Baton Rouge area. It would be the central point of access for entrepreneurs, creating layers of service, while coordinating the region’s assets including business support services and incubators such as the Louisiana Business and Technology Center, the Louisiana Emerging Technology Center, the Louisiana Technology Park, and others. It would be modeled after highly-successful, entrepreneurial-centric organizations like Innovation Works in Pittsburgh, Pennsylvania and the Council for Entrepreneurial Development in Research Triangle Park, North Carolina.

It is also recommended that the regional innovation organization be led by an executive director, who will be responsible for ensuring all aspects of the organization are focused on providing high-growth entrepreneurial firms the information and access they need to be successful. This would include serving as an advisor to existing incubator partners who serve the regional entrepreneurial network; developing a strategy to better align existing business development services and a plan to fill existing service gaps; assisting LSU in the development of the university research park; developing formal mentoring programs to advise early-stage, high-potential firms; creating a solid network of angel, seed, and early-stage capital providers; building a funding strategy for securing dollars to enhance programmatic offerings; leveraging the region’s universities and colleges to support entrepreneurial development; and coordinating the reliable tracking and recording of metrics on entrepreneurial service offerings from partner incubators and their impact on the regional economy. The executive director would be identified through a national search.

Due to the composition of its board and statutorily-created mission, it was recommended that the RPC would be the most appropriate entity to oversee the operations of the regional innovation organization. The RPC will officially receive the plan at its next board meeting on March 23, 2010.”

In announcing the plan for the university research park, BRAC cited its potential as a real catalyst for job growth. Current plans call for the park to be approximately 187 acres and would consist of land from Nicholson Drive to GSRI Road. Of the total acreage, approximately ninety-four acres would need to be purchased for $10 million in order to complete the park’s designed footprint. To obtain the necessary funds, BRAC and its partners will advocate for the dollars to be included in the state’s capital outlay budget to be dispersed over a four-year period. Five million dollars will also be requested over that time period for needed infrastructure improvements.

Under the current agreement, the park’s development, which would occur at what is now known as the LSU South Campus, would begin with the creation of an LSU-affiliated foundation to oversee the park’s development. The entity would be responsible for the land acquisition, infrastructure development, architectural administration, and tenant selection, under guidelines approved by the LSU Board of Supervisors. To date, the research park’s master plan has been approved by the board of supervisors, but approval of management agreements and tenant selection policies must be attained prior to implementation.

“At LSU we are committed to being a proactive partner in bringing new businesses and expanding existing businesses in East Baton Rouge Parish. Our South Campus, under the leadership of Charlie D’Agostino, offers opportunities for start ups and others to forge dynamic partnerships with LSU, its faculty, and students,” LSU Chancellor Michael Martin said.

“LSU System institutions support the academic entrepreneurialism that creates marketable innovations. These initiatives act as an economic catalyst, and at a time of decreasing state budgets, the opportunity to capitalize on the translation of knowledge through commercial breakthroughs using regional research collaborations means new jobs and increased prosperity for Louisiana and the nation,” said Dr. John Lombardi, LSU System President.

“The Ourso College of Business is proud to be a partner in this collaboration,” said Eli Jones, Dean of the E. J. Ourso College of Business. “The College has been and will continue to be a partner to business in all parts of the state, and we will be a leader in bringing innovation to Louisiana.”

An issue brief summarizing the regional innovation strategy can be found at www.brac.org/research.

Local leaders today unveiled an updated master plan for Downtown Baton Rouge that was created by national consultants, local planners and public officials with input from the public.

Plan Baton Rouge Phase II, led by Chan Krieger Sieniewicz of Cambridge, Mass., is a master plan and economic strategic plan that builds upon the original Plan Baton Rouge and develops directions for future growth in the downtown area..

Components of the updated plan include:

• Creating a central green space that would be the preeminent downtown park.
• Planting and maintaining an urban forest.
• Making Third Street a vibrant entertainment corridor.
• Ensuring the cleanliness and safety of the downtown area..
• Taking advantage of the Mississippi Riverfront.
• Establishing integrated public parking policies.

“Plan Baton Rouge Phase II heralds a new wave of economic development downtown and the DDD will position itself in the forefront of implementation efforts,” said Davis Rhorer, executive director of the Downtown Development District.

With costs totaling $588,000, the plan was sponsored by Fannie Mae, the Baton Rouge Area Foundation, the City of Baton Rouge, the Center for Planning Excellence, the Downtown Development District, the Downtown Business Association, and the Baton Rouge Area Convention and Visitor’s Bureau.

The new plan can be viewed at http://downtownbatonrouge.org/devMasterPlans.asp

The goal of Plan Baton Rouge Phase II is to help make downtown a more vibrant place to live, work, shop, dine, learn and play.

Following approval by the city-parish Planning Commission, Plan Baton Rouge Phase II will be presented to the Metro-Council for adoption.  The plan will then be incorporated into the new Comprehensive Master Plan for East Baton Rouge Parish.

Downtown Baton Rouge has also been selected as a mobile workshop for the American Planning Association’s 2010 National Planning Conference in New Orleans April 10–13 because of its comprehensive planning and implementation efforts.  Planners from all over the country will visit downtown Baton Rouge for a working session on downtown improvements and planning.

After Plan Baton Rouge Phase II was unveiled at a press conference Monday, John Schneider and Brace Godfrey of Cyntreniks LLC announced details of the complete tenant mix for the retail space at the first floor of the Kress at Third and Main.  The development follows the recommendations in Plan Baton Rouge Phase II.

A successful settlement has been reached with the Franciscan Missionaries of Our Lady Health System, or FMOL.  We are pleased to announce that FMOL has agreed to hold the line on costs by accepting our company’s final offer. The offer, made Jan. 8, 2010 allows for a minimal inflationary increase.

This means you can continue to receive in-network benefits at hospitals such as Our Lady of the Lake in Baton Rouge and St. Francis in Monroe as well as with all their affiliated providers.

Blue Cross and FMOL have come together to work in the best interests of our stakeholder. It’s an example of how Blue Cross and your providers are working together to manage healthcare costs for you.

FMOL hospitals are well-respected in their communities, and we are pleased that they will remain an important part of our strong statewide networks. You can use our online provider directory at any time to find in-network providers.

“We understand this has been a difficult period for our customers and for all parties, but we have been absolutely committed to you and to heeding your request to hold the line on healthcare costs,” Blue Cross President and CEO Mike Reitz said. “As a non-profit mutual company owned by our policyholders, we take our responsibility to manage your money wisely. Blue Cross will continue to work as an advocate for you going forward.”

As always, Blue Cross and Blue Shield of Louisiana works hard to keep healthcare quality-driven, accessible and affordable. And we focus on using as much of your healthcare dollar as possible on direct hospital, physician and prescription drug costs for our customers.

Wednesday Baton Rouge Mayor Kip Holden announced that two Chinese companies that specialize in LED-lighting had agreed to jointly build a new manufacturing and distribution plant in Baton Rouge to serve North America.

“This has been a great day for Baton Rouge,” Holden said.

Pepnice Corp. is the largest LED lighting manufacturer in the world, and Liantronics Co. Ltd. is the largest LED billboard manufacturer in the world, according to Eugene Ji, the mayor’s liaison to China. Executives from both companies announced plans for the new Baton Rouge plant after meeting with representatives from Lamar Advertising Company.

Ji said the new plant will be developed in phases, and expects to employ 100 to 300 people.

Ji said representatives from the two Chinese companies plan to meet with state officials and Southern University officials Thursday about the prospects of LED lighting.

“LED is the future, because a 6-watt LED light will replace a 100-watt traditional light, has no mercury, is environmentally friendly, and lasts for 10 years,” said Ji, who acted as Holden’s interpreter during his trip to China last year.

This is the fourth Chinese contingent to visit Baton Rouge in response to Mayor Holden’s visit to China last April. One Chinese group from Huiheng Medical Inc. announced during a visit in October that it plans to build a manufacturing plant in Baton Rouge to produce cutting-edge equipment in the fight against cancer.

Today, Gov. Bobby Jindal joined the executive team of TraceSecurity Inc. to announce the relocation of two of the company’s key operating divisions, software development and national sales, from Dallas and San Diego to Baton Rouge. The relocation creates 15 new, direct Louisiana jobs with average annual salaries exceeding $50,000, plus benefits, for a total of approximately 50 jobs in Baton Rouge. Additionally, the company plans to add more than 30 jobs over the next two years. TraceSecurity’s workforce in Baton Rouge is more than doubling within two years as a result of the relocations and planned expansion.

“Today’s announcement is yet another example of the success we’ve had attracting business investment and jobs to Louisiana from other states,” said Gov. Jindal. “Indeed, this announcement is another victory in our mission to attract more jobs into Baton Rouge and Louisiana and reverse the decades-long trend of jobs leaving our state.

“Since early 2008, leading companies have announced moves of their headquarters or other significant operations to Louisiana from a wide variety of states, including California, Georgia, Mississippi, Rhode Island, Virginia, Wisconsin, Illinois, Oregon and now Texas, as well. TraceSecurity’s relocation will result in additional high-tech job opportunities, help Baton Rouge’s digital industry continue to grow, further strengthen our economy and, most importantly, help keep our sons and daughters right here in Louisiana.”

“We have noticed a much greater willingness of people moving to Baton Rouge in the last couple years than we did before,” said TraceSecurity President & CEO Peter Stewart. “Part of it is that our local economy is doing much better than the national economy, but another part is that our state image has improved dramatically in the last couple years. The Electronic Arts win in 2008 was particularly helpful in improving the credibility of Baton Rouge as a high-tech jobs market.”

Recent changes to the state’s digital media tax credit program, supported by Gov. Jindal and adopted by the Legislature, expanded program eligibility to include a broader array of software development firms. For the first time, TraceSecurity Inc. expects to make use of the program. Previously the company used the state’s Quality Jobs Program.

“The assistance offered through these programs by Louisiana Economic Development clearly played a role in our decision to relocate our Texas and California operations back to Louisiana,” added Stewart.

“Economic predictions for 2010 indicated that Louisiana will continue to gain jobs,” said Mayor-President Melvin L. “Kip” Holden. “The announcement today is proof that these predications are on target. We are happy that TraceSecurity Inc. is expanding its Baton Rouge operation. Baton Rouge can compete with any city in the nation. Companies like TraceSecurity Inc. continue to put a spotlight on our great state and this great city.”

Key considerations that led to TraceSecurity’s relocation included the ability to recruit and retain quality staff, support received from Louisiana State University and Southern University on workforce development issues, economic development incentives and Baton Rouge’s competitive operating costs and cost of living.

“The continued expansion and success of TraceSecurity, along with the highly sought after knowledge-based jobs it creates, has a tremendously positive impact on the entire Capital Region,” said Adam Knapp, president and CEO of Baton Rouge Area Chamber. “Their commitment to growing here in the Baton Rouge area also sends a promising message, both locally and nationally, that this region will continue to successfully support high-growth, innovative entrepreneurial companies.”

Founded in 2004 at the Louisiana Technology Park in Baton Rouge, TraceSecurity Inc. is a leading provider of security compliance and risk management software solutions. TraceSecurity’s comprehensive patent-pending methodology helps clients address all critical components of a successful security compliance program, including people, process and technology. With more than 1,000 customers located throughout the U.S., TraceSecurity supports the security and risk management efforts of organizations in financial services, healthcare, insurance, government and other regulated sectors.