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Restoring the roar

Two years ago, LSU’s baseball team wasn’t good enough to qualify for the SEC tournament. Now the Tigers are the best team in the country, winning their sixth national championship on June 24 with an 11-4 victory over Texas in the deciding game of the College World Series finals in Omaha, Neb. Jared Mitchell hit a three-run homer in the first inning as LSU [56-17] built a 4-0 lead. Texas [50-16-1] pulled even, but Mikie Mahtook’s tiebreaking double ignited the Tigers’ big sixth against the Longhorns. It was the first national title for Coach Paul Mainieri, who played his freshman year at LSU in 1976 and returned to the school after coaching stops at St. Thomas [Fla.], Air Force and Notre Dame. The Tigers came into the CWS ranked No. 1 in the major polls, and that’s where they’ll finish after keeping Texas from becoming the first No. 1 seed to win the NCAA tournament since Miami in 1999. LSU won national titles in 1991, ’93, ’96, ’97 and 2000 under Skip Bertman. Though the Tigers made it back to the CWS two times under Smoke Laval—he went 0-4 in Omaha—the program was in a down cycle before Mainieri arrived three years ago. “I’ve dreamed my whole life of having this moment after a game to talk about a national championship,” Mainieri said after the game. “Now that it’s here, it’s almost surreal.”

Three wins … and a loss

Louisiana, it seems, is on an economic development roll as 2009 continues. In particular, there have been three big wins and, well, one major loss for the state this month.

The first is news that Barksdale Air Force Base in Shreveport will, after much debate, be the home to the Global Strike Command, creating at least 1,000 jobs for northwest Louisiana. Then there’s French chemical manufacturer SNF Holding Co.’s commitment to building a specialty chemical plant in Plaquemine and the announcement of a revolutionary new-car manufacturer setting up its first production facility in Monroe area. Add in General Motors’ plan to close the Shreveport facility, and there’s a definite shift occurring in the state’s economic-development landscape.

And while two out of three aren’t high-tech or “creative-class” jobs, they are still jobs. Economist Jim Richardson says the chemical plant and auto facility are building on the state’s economic strengths. “As any state would do, you have to build on what you have and what you can do,” he says. “In the end, I think we’ll still be an oil and gas state. And we have to make sure we take advantage of it.”

Revolutionary?

Louisiana seems to have been obsessed with landing a car manufacturing facility since Mississippi and Alabama became flush with their own in years past. But now that traditional American car companies are crashing and burning, it would seem the auto industry is dying. Yet according to both state officials and investors in V-Vehicle Company, VVC is an industry revolution.

“Through quick, aggressive action to pursue a transformative opportunity, we have a chance here in Louisiana to re-energize the entire U.S. auto industry,” Gov. Bobby Jindal said at the project’s announcement on June 17. “Indeed, this project also has the potential to transform the entire Monroe area, and this project could be a game-changer for the economy of northeast Louisiana.”

The word on the street is that this company, which will spur the creation of at least 1,400 direct jobs with an average salary of $40,000, is anything but ordinary. According to sources close to the state, the vehicle is a standard four-door car, but is very spacious in comparison to other fuel-efficient automobiles on the market. And it won’t be produced the same way, sold the same way or have the same value as a traditional American car.

Sketches of the prototype vehicle—which insiders say might be sold for as little as $10,000—include an iPhone dock, a retro-rotary dashboard fan and sleek modern lines.

According to VVC spokesman Joseph Fischer, the entire company—not just the product—is a game-changer. “It’s a business model that didn’t just begin with a car,” he says. “It began from concept and really examined every piece of the development process from concept to production for the full purpose of eliminating waste and putting that value into the vehicle for the customer.”

To be expected

But while Louisiana certainly hopes to broaden its economic base and bring new industries to the state, it still isn’t straying too far from the norm.

On June 19, the state announced SNF, a specialty chemical company based in France, would build a $362 million water-soluble polymers plant on 800 acres just south of Plaquemine. The new plant would sit next door to Shintech and should fit right in with the Capital Region’s petrochemical-dominated landscape. It’s not the sexiest economic-development project, but it’s welcome news in the midst of a recession.

According to Louisiana Economic Development, the plant eventually will employ about 500 permanent workers with an average salary of $57,000 and more than 100 contractors, along with an average of 250 construction workers over the next five years. An LSU study estimates the economic impact at $3.7 billion over the next 15 years, including $107 million in new state taxes and almost $30 million in local taxes, and predicts 900 jobs will be created indirectly. State and local incentives and $100 million in U.S. government-backed GO Zone bonds helped Louisiana win the project over three other states.

Farewell

One week after VVC’s announcement, the north Louisiana auto industry received bad news when General Motors announced its Shreveport plant would by shut down by June 2012.

The plant, which once had about 3,000 employees, had reduced its staffing down to one shift with about 950 workers. It was a victim of the collapse of the U.S. auto industry and the drop in consumer demand for the Hummers and mid-sized pickup trucks the facility produced.

Still, it might not be the end for the plant. GM is set to sell the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery of China. Hummer officials have said they planned to move the production of 10,000 vehicles a year from South Africa to Shreveport. But even if the new Hummer owners keep part of the plant open, it’s a small consolation, Richardson says. “That’s the type of thing though where we have something that’s only a part of that industry,” he says.—Timothy Boone, David Jacobs and O.W.

Book Review

But Wait ... There’s More!

Author: Remy Stern

Publisher: Collins Business

Year: 2009

Pages: 255

It’s 1:45 a.m., and it’s time to acknowledge your insomnia. You get out of bed, thinking that a few minutes of TV might do the sleepy trick.

Channel 15 has on that guy with the exercise machine. Channel 7 is showing some juicer program. The woman on Channel 51 is displaying some fancy make-up. Doesn’t anyone sleep?

Not if they have a chance to sell you something. In the new book, But Wait ... There’s More! by Remy Stern, you’ll see why those infomercials are on late, why they work and why you’re watching them when you should be sleeping.

So why do infomercials work so well? Stern says we buy from infomercials because it’s easy and it feeds our impulses. The products solve a problem [or a perceived problem]. Perhaps most of all, we buy because we want to have thighs like Suzanne Somers or muscles like that exercise guy.

So will an infomercial work for your product? Stern doesn’t exactly say, but he hints that it’s going to cost you to find out. Infomercials can be big bucks to produce, and for every product that succeeds, 50 fail.

This book is a pop-culture trip down Memory Lane and a peek inside a business that is lampooned and sneered at, yet is more successful that you’d imagine. Stern had access to most of the major players in the world of infomercials, and he used it to dig a little. While he’s respectful of the industry, he’s not afraid to find the dark side of paid programs and their products.

If you’ve ever grabbed your phone to call now, or if you wonder how you can get an infomercial for yourself, look for But Wait ... There’s More. While it doesn’t slice, dice, make julienne fries or give you great abs, it’s a pretty good read.—Terri Schlichenmeyer

Executive Spotlight

H.N. “Hank” Saurage IV

Broker/President

Saurage Commercial Real Estate

Hometown: Baton Rouge

The one thing Hank Saurage, owner of Saurage Commercial Real Estate, says he’d like to change about Baton Rouge is, simply, location. If it was possible, he’d pick up the entire city and drop it on the beach. That might be why he tries to sneak such activities as sailing and golf into his packed schedule.

Saurage, who sold the residential real estate portion of his business several years ago, easily is one of the busiest men in Baton Rouge. But that doesn’t mean that he doesn’t enjoy it. “Work hard, play hard,” he says. “Do everything in moderation.” For him, that means staying glued to his BlackBerry, but also finding time to hang out with his 4-year-old daughter Maddox, watch movies late at night and race sailboats. After all, what’s the point of working hard if you can’t enjoy it?

To read Saurage’s full Q&A, click here.

Fast Forward

Stopping dirty money

According to the U.S. Chamber of Commerce, Louisiana’s judicial system ranks among the worst in the nation. As explained in a Feb. 26, 2008, Business Report story entitled “A common-sense fix,” the Louisiana Organization for Judicial Excellence hoped to capitalize on the feeling of reform in the air at the time [new governor, a crop of new legislators] to push for a requirement that judges step aside from cases involving their campaign contributors.

That change didn’t happen, but on June 8, the U.S. Supreme Court might have given LOJE a measure of vindication. In Caperton v. Massey, the Court majority said a West Virginia justice should have recused himself from a case involving a coal executive who raised $3 million for the judge’s campaign.

“If you ask the guy on the street, if the other attorney’s giving money and my attorney’s not, I’m not on a fair playing field,” LOJE Executive Director Randy Hayden says. “For the courts to come around to this, it’s disappointing that it’s taken so long but satisfying that we’re finally at this point.”

The 5-4 Supreme Court majority said “a serious risk of actual bias” exists when a person with a personal stake in a case “had a significant and disproportionate influence in placing the judge on the case by raising funds or directing the judge’s election campaign when the case was pending or imminent.” The Court’s four most conservative judges all dissented.

Hayden says LOJE has been unable to meet with the Louisiana State Bar Association or Louisiana Supreme Court Chief Justice Catherine Kimball. She declined an interview request, but issued a statement saying “the West Virginia case was ‘extraordinary’ and ‘extreme,’ so I expect very little impact if any on Louisiana.”

A study published in the Tulane Law Review last year argued Louisiana Supreme Court justices, including Kimball, tend to favor their contributors. Much of that study’s underlying research has been discredited, and the dean of Tulane’s law school apologized to the Court in September.—David Jacobs

The Good Life

Sincere impressions

From authentic stone bungalows in Portugal to the decadent limestone halls of Bordeaux’s Grand Hotel, Andrew Harper details luxury travel with an eye for detail and a pen name that secures his true identity. That is to say, Andrew Harper is not the traveler’s true name. It is his nom de plume for the purposes of experiencing a true, authentic stay in some of the world’s most unique and sought-after vacation destinations.

Producing travel advice, opinions and guiding members, Andrew Harper is a luxury travel resource and service for those with a little bit of cash to burn. The Premier Class, with a $500 initiation fee and $400 in annual dues, affords travelers exclusive travel advice, a personal travel adviser, Andrew Harper perks at hotels and villas globally, and access to a bevy of resources on the Web site, andrewharper.com.

Greg Hybl, president of Andrew Harper, says the service has attracted members for more than 30 years because “they lead busy lives and their leisure time is arguably their most precious time.” Andrew Harper [the person] is able to provide authentic reviews not only because he has been traveling extensively for decades, but also because he does so without affiliation to the service. To his butlers, attendants, tour guides and the like, he’s just another tourist, escaping a busy life.

A prominent Austin, Texas, business owner and a longtime Andrew Harper Premier member says the service is money well spent. Once traveling for her anniversary, her agent called to caution her the hotel at which they had reservations was experiencing financial difficulties. The agent was worried the couple would be stranded. “She was able to know about it long before and was able to get my deposit back,” she says. “It’s those kinds of things. It’s peace of mind.”—O.W.

Fort night: July 1 - July 14

July 10 - Walter Monsour, who in December announced his resignation as the city-parish’s chief administrative officer after four years, now is the president and CEO of the East Baton Rouge Redevelopment Authority. Monsour will speak at the Baton Rouge Black Chamber of Commerce’s Executive Luncheon at Drusilla Seafood Restaurant at 11:30 a.m. For more information, go to nbrcc.org.

July 12 - Two years have passed since the National Conference of Black Mayors met in Baton Rouge. A similar conference will be held through July 15 at Southern University. The 2009 Black Mayors Leadership Institute will hold numerous sessions, including one on dealing with the global economic crisis.For a schedule of events, go to l-ced.org.

July 13 - On this day in 2005 - 
Business Report reported that Baton Rouge again failed to make Money Magazine’s list of top 100 best places to live in the U.S. Four years later, however, Baton Rouge remains a safe haven for riding out the recession. For details on how The Brookings Institution rates the metro area, click here.

July 14 - On this day in 1937 - The first piling was driven in the construction of New Orleans’ Charity Hospital. Still closed after the devastation caused by Hurricane Katrina in 2005, Charity currently is in the midst of a political battle with LSU and Tulane University for control over the hospital’s management and rehabilitation.

July 14 - On this day in 2006 - Business Report wrote that Gov. Kathleen Blanco announced hopes to reduce the state payroll to help reduce the overall cost of the state’s annual budget by offering an early retirement option to state workers. Debate over the number of state workers still continues into 2009 as the financial strain over the FY2010 budget was fought in the legislative session.

July 14 - Like most organizations, the Association for Conservation Information is facing realities of an ever-changing world. The group’s 2009 conference, which will be held through July 17 at the Hilton Baton Rouge Capitol Center, plans to address those challenges. The group will tackle issues like mastering Web 2.0 for successful businesses and utilizing social-networking tools. For more information, go to aci-net.org/conference2009.

Business of Politics

And the winner is …

Best Supporting Actor: Gov. Bobby Jindal

From rejecting transparency for his own office after pushing it on others to failing to come up with a plan to help state government absorb a $1.3 billion shortfall, Jindal didn’t seem to have the moxie yet to carry his own prime-time show. For now—and for the foreseeable future—the governor is confining himself to a supporting role.

Here are some award-winners from the Legislative session, which ended June 25:

Best [Political] Directors: House Speaker Jim Tucker and Senate President Joel Chaisson

Tucker and Chaisson pointed the way for lawmakers, albeit in seemingly different directions. While Tucker was insistent on deep cuts, Chaisson oversaw a mutiny to raise taxes. Tucker also created a special commission to investigate reforming higher education when Jindal faltered at offering his own plan, and Chaisson stepped up to save Jindal from an in-session veto override by holding the state budget an extra day before signing off on the document, thereby giving Jindal enough time to forestall his expected vetoes until after the session’s June 25 close.

Best Guest Appearances: Former Govs. Dave Treen, Buddy Roemer, Mike Foster and Kathleen Blanco (right)

When four former governors decided to hold an “intervention” for Jindal to criticize his leadership and budget priorities, the Baton Rouge political world stopped spinning for a moment. Rumor has it the former governors were prepared to issue a statement on their own until Jindal found out. Jindal reacted quickly, inviting them and holding a joint press conference.

Best Amendment: Sen. Troy Hebert

After Hebert, a Jeanerette Democrat, repeatedly failed to attach an amendment to the state’s budget, he offered this one for consideration: “The Louisiana State Senate would like to commend and congratulate the mothers and grandmothers of this state for the sacrifices they have made in raising, nurturing and shepherding the children of our great state.” Hebert laughed along with his colleagues as the amendment was read, then warned, “Y’all vote against that one.”

Best Resignation: Sen. Reggie Dupre

Like some term-limited lawmakers, Dupre, a Bourg Democrat, was looking for his next step. He found it when a levee director’s job opened up back home. When he sealed the deal, Dupre picked up a cocktail napkin from the Senate dining hall and wrote two words on it before handing the napkin over to Chaisson, as dictated by law. It read simply, “I quit.” Chaisson, however, wouldn’t accept the resignation. “He told me to put it on paper,” Dupre says.—Jeremy Alford

Amusing development

Southern Star Amusement, a Baton Rouge-based company comprised of theme-park veterans, outlined plans for a $50 million upgrade of the shuttered Six Flags amusement park in New Orleans East. Danny Rogers, president and CEO of Southern Star, says the plan is to create a unique mix of an amusement park with water attractions. “Look at New Orleans,” says Rogers, who spent more than 45 years working in the carnival business. “People don’t want to be standing outside in the direct sunlight in the summer, then getting on a steel roller coaster.”

Six Flags has been closed since Hurricane Katrina in 2005, and the park’s parent company recently filed for Chapter 11 bankruptcy protection. Rogers says this clears the way for Southern Star to buy the park because he says the bankruptcy puts Six Flags in a default position on their lease. Rogers says it’s a misnomer that Six Flags, which opened in 2000, never made any money. He says GO Zone financing will be used to overhaul the park, and the plan is to get it back in business for summer 2010. “This will create over 1,000 jobs,” he says. “This affects the entire state.”—T.B.

Defying high-def

You heard the warnings: After June 12, your TV’s standard rabbit ears would be as obsolete as flash bulbs and fountain pens. It’s not entirely true. Baton Rouge still has a handful of stations broadcasting the old way, with no FCC deadline set for going digital. “The bottom line is you had thousands of TV commercials telling you there would be nothing on the air after the transition,” WCBZ-TV General Manager Woody Jenkins says. “That was all a big lie.”

Low-power and Class A television stations, it turns out, were exempt from the “big switch.” WCBZ, an offshoot of Central-based Central City News, is one of the exempt stations. Jenkins says WCBZ never intended to make the switch. “We felt like so few people yet had digital sets or converter boxes, that would be quite an unserved population out there that are not ready for the transition,” he says.

Jenkins says WCBZ’s viewership is way up now that the full-power stations are off the airwaves. The station’s high-traffic spot between WAFB-TV’s and WBRZ-TV’s former VHF real estate doesn’t hurt.—Steve Clark

ONTHEBEAT

Dental downer: A Men’s Health survey says Baton Rouge residents have some of the worst teeth in the nation. The Capital Region ranked 91st on the survey, which looked at factors such as the number of residents who get an annual checkup, the percentage of households with fluoride in the water and how many residents floss.

Trailblazer: Tate Tullier, a local photographer, is one of 10 national finalists for the Dream Bigger award, which honors deaf and hard-of-hearing trailblazers. Tullier was selected for his work in developing his photography business through online and “word of hand” marketing.

Little steps: Making small changes to encourage people to use the stairs could help solve the nation’s weight problems, according to an LSU researcher. Dr. Ishak A. Mansi of LSU Health Sciences Center, Shreveport, says many staircases in buildings don’t lend themselves to climbing because they’re hard to reach, unappealingly designed and poorly lit. Mansi, who is married to an architect, says stairs should be a central feature of a building.

Public interest: Scott Dyer, who covered city-parish politics and the Metro Council for The Advocate, is now working for city-parish government. Dyer, one of 49 staff members laid off by the newspaper last month in a round of budget cuts, is helping Mayor Kip Holden’s office with media relations.

Shrinking paychecks: The amount of money Louisiana residents brought in during the first quarter of 2009 was down 0.6%, when compared to the last three months of 2008. According to the U.S. Department of Commerce’s Bureau of Economic Analysis, personal income in Louisiana was $161.1 billion during the first three months of the year, compared with $162.1 billion in the fourth quarter.

Tennis, anyone? Sir Elton John’s AIDS Foundation is partnering with the Irene W. and C.B. Pennington Foundation to hold a tennis exhibition Dec. 8 at the Pete Maravich Assembly Center. The WTT Smash Hits event will raise money for local HIV/AIDS organizations. John and tennis great Billie Jean King have been holding Smash Hits events since 1993, exhibitions that not only feature the sunglass-wearing singer, but top tennis players such as Andy Roddick and Anna Kournikova.

Minor reductions: Retail and business sales in East Baton Rouge Parish were less than 1% lower in April than they were a year ago. According to figures released by the city-parish Department of Finance, $12.6 million in sales tax was collected in April, compared with $12.7 million in April 2008. That figure does not include vehicle tax collections, which dropped by 23.5% when compared with the year before.

Not bluffing: An investor group of residents and club members of The Bluffs in West Feliciana Parish is close to being able to lease and reopen the golf course, but the deal is not yet final, says Michael Creed, a banker and unofficial spokesman for the group. Creed says he hopes to make a formal announcement soon. “It is moving forward, and there is good potential that the facilities will open mid-July,” he says.