DRILLING INSURANCE COSTS SET TO SKYROCKET

7NN01NME0620
MONEY
MARKE TS • E-2
BUSINE SS PEOPL E • E-2
SECTION
SUNDAY
A Rouses grocery store planned for
the CBD has developers and officials excited
about the possibility of
a residential revival
930 Poydras Apartments opened earlier
this year, and the developer, Brian Gibbs,
said he has discussed the possibility of
Rouses delivering groceries to
the residents of his building.
He said: ‘This is the best
thing since sliced
bread. The No. 1
question we get
from our tenants
is, ‘Where’s the
grocery?’
E
Sunday,
June 20, 2010
DRILLING
INSURANCE
COSTS SET
TO SKYROCKET
A June 3
research
report by
Moody’s
Investors
Service
said that
premiums
have
already
increased:
—
Impact could dwarf
moratorium’s
HILARY SCHEINUK /
THE TIMES-PICAYUNE
CMY K
—
By Rebecca Mowbray
Business writer
Insurance costs for deepwater
drilling are poised to rise by as
much as 50 percent after the Deepwater Horizon disaster, and the
increases are sharp enough that it
could make some exploration and
production projects too expensive
no matter what happens with new
regulations in Washington.
As insurers look with horror at
the mounting economic damage in
the eight weeks since the Deepwater
Horizon rig explosion, they’re realizing that they didn’t fully understand
the risks of offshore drilling.
UP TO
25
PERCENT
for rigs
operating
in shallow
waters
UP TO
50
PERCENT
for rigs
operating
in deep
waters
See INSURANCE, E-2
Deepwater
Horizon
disaster
site
By Matthew Albright Business writer
POYD
BARO
NNE
RAS
ETTE
ET
D
NDEL
FE AV
E
O’KEE
GIRO
CARO
500 feet
LAFAY
.
T
E.
MPAR
LA AV
LOYO
S. RA
FEEDING
DEMAND
NEW
ORLEANS
Former Sewell
Cadillac building
to become Rouses
grocery store
THE TIMES-PICAYUNE
W
ith locally owned grocery
company Rouses Supermarkets recently announcing the
purchase of the old Sewell
Cadillac building in downtown New Orleans, many real estate experts are
celebrating the potential for a residential revival
in the Central Business District.
Donald Rouse, president of the grocery chain,
acknowledged recently that it is “a bit unusual”
to see a grocery of this size — 40,000 square feet
— in such an urban area and said he is aware that
revenue from other locations will be necessary to
prop up the new location for some time after its
completion next year.
He said most of the new location’s revenue will
initially come from people leaving work.
“If you look at Baronne Street, there’s a convenient venue out of (downtown),” he said.
See DOWNTOWN, E-4
MICHAEL DEMOCKER / THE TIMES-PICAYUNE ARCHIVE
Donald Rouse, president of Rouses Supermarkets, said the 40,000square-foot size of the former car dealership is ‘a bit unusual’ for an
urban grocery.
MICHAEL DEMOCKER / THE TIMES-PICAYUNE
Check up on
refund online
—
The Answer Spot addresses post-Hurricane
Katrina questions. To submit a question, send it to
[email protected].
I’m still waiting on my federal income
tax return. How can I find out the
status of my return? Is there a way
to check to see that it was received
and find out about my refund? I filed a
return, not an electronic one.
THE ANSWER paper
Ta x p a y e r s c a n u s e t h e
SPOT
“Where’s My Refund?” feature
Your
on the home page of the IRS.
post-Katrina
gov website to learn the status
questions
of their refunds. To use it, a taxanswered
payer must enter a Social Security number, filing status and the
refund amount shown on the taxpayer’s 2005 tax return. When the information is
submitted, “Where’s My Refund?” will display the
status of the refund and, in some cases, provide
instructions on how to resolve potential account
issues. Taxpayers can access a telephone version of
“Where’s My Refund?” by calling 800.829.1954.
Boost in the works for
N.O. Botanical Garden
—
2-pronged strategy includes
bus tours and a fall festival
—
Matthew Albright
Business writer
While much attention has been paid to the
recovery of New Orleans’ trademark cuisine,
music, and arts after Hurricane Katrina,
there are some who say another New Orleans
tradition hasn’t gotten the focus it deserves
— the city’s gardens.
Paul Soniat,
the director
of the New
Orleans
Botanical
Garden in
City Park,
says of the
upcoming
bus tours:
‘It’s a great
place we
have here,
and we
really think
this will
make more
people want
to come
see it.’
In the wake of Katrina, the New Orleans
Botanical Garden in City Park suffered tremendous damage to its structures and plants.
Although the grounds were reopened for
Christmas of that year, it took much longer
for the facility to be fully restored. “It took at
least a couple of years for everything to grow
back,” said Paul Soniat, the Garden’s Director. “And even then, you had big holes where
some of the trees used to be.”
Soniat said the Botanical Garden, like
many similar operations, has seen a noticeable decrease in visitors after the storm.
“Every facility, every museum and things like
See GARDENS, E-4
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DANIEL ERATH / THE TIMES-PICAYUNE
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THE TIMES-PICAYUNE
s u n d a y mone y
Tourism cultivated as gardens spotlighted
GARDENS, from E-1
that saw admissions go down.
In fact, I don’t think we charged
admission at all for (the first year
after the hurricane,)” he said.
Post-Katrina, the garden was seeing only about 50 percent of its
regular traffic — today, Soniat
estimates that number is around
90 percent.
A grant from the Getty Foundation gave the Garden the
resources to rebuild not just the
premises, but to rebuild a significant base of visitors to the
facility. Soniat collaborated with
other gardens, most significantly
the historic Longue Vue House,
to come up with a strategy to
help all of the gardens in New
Orleans.
The resulting campaign is twopronged, consisting of a “Heart
of the Gardens” bus tour and a
proposed “Arts + Gardens +
New Orleans” festival to be held
in the fall.
CALENDAR
photos by DANIEL ERATH / THE TIMES-PICAYUNE
The bus tour will include extended stops at the Botanical Garden and
Longue Vue, where the group will disembark from the bus to explore
gardens.
The three-hour bus tour, operated by sightseeing company
Gray Line, takes tourists through
the historic parts of downtown
New Orleans, pausing briefly
at historic houses and gardens
sprinkled throughout the area.
The guide points out interesting
flora as the tour progresses, from
ivy hanging from iron rails in the
French Quarter to Live Oaks and
Friday
TUESDAY
Operation HOPE seminar: “How
to Build an E-mail Marketing
Campaign” will be presented
by Kristen Sullivan McEntyre
and Rita V. Laners at 5:30 p.m.
at 1215 Prytania St., LTC Conference Room (Room 301).
To RSVP, call 504.309.6153 or
send an e-mail to rita.laners@
operationhope.org.
WEDNESDAY
Women’s Energy Network,
Southeast Louisiana Chapter: “Development of the
Haynesville Shale: Economic
and Regulatory Impact” will
be the topic from Jodee
Bruyninckx, North Louisiana
director for the Louisiana Oil
& Gas Association at noon
at Copeland’s Social City,
701 Veterans Memorial Blvd.
in Metairie. To register, visit
www.wenhouston.org
The New Orleans Chapter of
Executive Women International: The group meets at
5:30 p.m. at Chateau Golf
& Country Club. Speaker is
Billy Arcement. Cost: $30.
To register, call Dee Clubb at
504.454.3840.
Operation HOPE seminar: “Online Marketing” is the subject
of a presentation by Kristen
Sullivan McEntyre and Rita V.
Laners at 5:30 p.m. at 1215
Prytania St., LTC Conference
Room (Room 301). To RSVP,
call 504.309.6153 or send an
e-mail to [email protected].
THURSDAY
NACE International: “The Corrosion Society” will be the
subject of speaker David Hui’s
presentation at 11:30 a.m. at
the Lindy C. Boggs Conference Center, Room 236,
2045 Lakeshore Drive, New
Orleans. Cost is $20. RSVP to
Mike Fortin at 985.783.5897 or
[email protected].
Upcoming
BlueCross and BlueShield of
Louisiana and the Jefferson
Chamber of Commerce: Healthcare Reform’s Impact on Small
Business will be held June 25
at 11:30 a.m. at Hilton New
Orleans Airport, 901 Airline
Drive. Free. To register, call
504.835.3880 Ext. 12, or e-mail
[email protected].
NOLA Chapter of the International Association of Administrative Professionals: A seminar
will be held June 26 from 8:30
a.m. to 12:15 p.m. at Portobello
Catering, 400 E. William David
Parkway, Metairie. Topics include “Project Planning Made
Easy” by Ellen Martin of A New
Leaf and “Square Wheels” by
Martha Long. Earn 3 recertification points. Cost: $20
IAAP members, $25 others.
To register, e-mail martigolf@
charter.net or call Rebecca at
504.391.6112.
Louisiana Department of
Revenue: A free seminar to
help business operators understand sales tax and other
important business issues will
be held at 10 a.m. on June 30
at LDR’s New Orleans office,
1555 Poydras St., Suite 2100.
To register, call 504.568.5233.
•••••••
New Orleans Chamber of
Commerce quarterly luncheon
series: This luncheon will focus
on the biosciences district. It
will be held from 11 a.m. to 1
p.m. at Hilton New Orleans
Riverside, 2 Poydras St. Cost:
$40 for members, $50 others.
To register, e-mail rsvp@
neworleanschamber.org or
call 504.799.4260.
The Money Calendar appears
on Saturdays or Sundays, as
space allows, and at www.
nola.com/business/t-p/index.
ssf?archive.html. Items must
be received by the Monday
before the publication date to be
considered for inclusion. Send to
[email protected].
shrub arrangements in the neutral ground to vegetable gardens
in old French manors.
The tour includes extended
stops at the Botanical Garden and
Longue Vue, where the group disembarks from the bus to explore
gardens and greenhouses full of
plants of all species.
“I think this is wonderful, we
haven’t had a tour since Katrina,”
said Flora Williams, a spokeswoman for Longue Vue. “It’s also
a really great opportunity for people who really love gardening.”
The “Arts + Gardens + New
Orleans” festival will take place in
the fall. It will showcase the various gardens sprinkled throughout the city, especially facilities
like the Botanical Garden and
Longue Vue.
Jeanne Nathan, president of
Creative Industry, the company
contracted to run the public relations effort, said a fall festival is perfect for showing off New Orleans’
gardens. “The spring is full of all
kinds of festivals,” she said. “But
there aren’t any big ones in the
fall.” Additionally, Nathan said New
Orleans’ plants are in full bloom in
the fall, while most other gardens in
the country are largely dormant.
Nathan says she hopes to see
gardens become part of the New
Orleans mystique, along with
the music, the food, and the arts.
“This is a way for us to broaden the tourism here, maybe get
some folks who wouldn’t normally come,” she said.
For his part, Soniat says he’s
excited about the tour. “It’s a
great place we have here, and we
really think this will make more
people want to come see it.”
•••••••
Matthew Albright can be reached at
[email protected] or
504.826.3399.
CBD growth limited by lack of amenities
DOWNTOWN, from E-1
JOHN MCCUSKER /
THE TIMES-PICAYUNE
The showroom
at the former
Sewell Cadillac
dealership sits
empty on June
10. The space
will become a
Rouses grocery
store next year.
Additionally, he said catering for
the businesses that operate in the
CBD should prove lucrative for the
new store.
“Come holidays, there’s a tremendous amount of business,” he
said.
Rouse has previously said the
new facility’s size will allow space to
handle his company’s catering projects, such as king cakes during Mardi Gras, to “back up” smaller venues
sprinkled throughout the area.
Making a neighborhood
But Rouse said he also sees a
bright future for residential properties downtown; he just thinks the area
needs the right conditions to grow.
“I understand people living down
there want to make it a neighborhood,” he said. “And that can’t happen without a first-class grocery
store.”
Many developers and analysts
share Rouse’s enthusiasm and
applaud his decision to expand into
the city’s center.
“That is perhaps the best news
we could have had,” said Larry G.
Shedler, of Larry G. Schedler and
Associates, a local real estate firm.
In the spring 2010 issue of the
Greater New Orleans Multi-Family
report, Schedler points out a gradual trend toward increased housing downtown. “Reversing a decade
old trend of apartment construction
being focused in the suburbs, new
construction is now focused on the
Historic Center of New Orleans,”
Schedler wrote. He said the real
estate market is “really one of the
bright spots in the New Orleans
area.”
J. Mark Madderra, of the commercial mortgage banking firm
Madderra and Cazalot, who also
contributed to the report, points to
the number of residential properties
under development as a sign of the
market’s health.
“You’ve got five major projects
going on right now, and if you look
the city’s housing market is better
than others. But Miestchovich said
some caution is necessary.
“The downtown market is solid,
but there are some delicate steps
that need to be taken going forward,” he said.
Miestchovich points out that continuing economic problems could
seriously hamstring further growth.
If the economy starts losing jobs,
the demand for such apartments
will collapse.
“The economy is weak and going
to get weaker if the morons in Washington don’t change their minds
on the moratorium,” he cautioned,
referring to the Obama Administration’s six-month moratorium on
deepwater drilling in the Gulf of
Mexico.
Calling downtown home
anywhere else in the country, you’re
not going to see that,” he said. “I
don’t think there’s been much of a
fallout, which is unusual.”
Developer Marcel Wiznia, of Wiznia Associates, is working on two of
those five downtown projects —
the Maritime and Saratoga Lofts.
He said demand for the Maritime,
which is slated to open in October,
is immense.
“We have gotten far more inquiries than we have apartments,”
he said. “And it’s not going to be
open for another three and a half
months.”
Lacking amenities
Wiznia said the prospects for
growth in the CBD are huge but
are limited by the lack of amenities. He said big national companies, such as Barnes and Noble, are
wary of expanding into new markets
because of the sluggish economy.
“We’ve seen these companies taking a ‘show me’ mentality, whereas
I’d like to see them take a ‘build it
and they will come’ approach,” Wiznia said.
Wiznia said Rouses’ move is
exactly the kind of “good corporate
citizenship” for which he is looking.
Brian Gibbs, a developer whose
930 Poydras Apartments opened
earlier this year, is similarly
enthused.
“This is the best thing since sliced
bread,” he said. “The No. 1 question
we get from our tenants is, ‘Where’s
the grocery?’”
Gibbs said he and Rouse have
discussed the possibility of delivery to the 930 Poydras building.
Residents could order online from a
delivery menu of groceries and prepared foods. Gibbs said he envisions
industrial refrigerators at the property to which the grocery would
deliver the ordered products; residents could then pick those goods
up on the way up to their apartments after work.
“I know they do this in New
York,” Gibbs said. “It’s exactly
the kind of thing that drastically
improves quality of living.”
Caution urged
Ivan Miestchovich, director of
the Institute for Economic Development and Real Estate Research
at the University of New Orleans,
agreed that Rouses’ move is a great
step forward and acknowledged that
City officials welcomed Rouse’s
decision with open arms. Anthony Carter, director of finance and
administration fort New Orleans’
Downtown Development District,
said the city’s downtown residential
population has grown significantly
during the past decade.
“In the past 10 years, we’ve gone
from about 1,400 residents to about
3,000,” he said.
Carter said 835 apartment and
condominium units have been added
to the downtown district in the past
two years, totaling about $200 million in value.
But Carter said there is room for
much greater growth, and Rouses’ new store will almost certainly
help that growth happen. In talking with counterparts elsewhere,
and through studies conducted by
the DDD, he said, “One of the really
important things for people living
downtown is to have a grocery within a 15-minute walk.”
Now that Rouses has stepped
up to fill that role, Carter said, “It’s
going to definitely help to grow the
market in the downtown area.”
•••••••
Matthew Albright can be reached at malbright@
timespicayune.com or 504.826.3399.
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T H E BA N K O F P E R S O NA L S E RV I C E
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