Friday, December 2, 2011
Economist: BioDistrict will bring billions
Posted by Clancy DuBos on Fri, Dec 2, 2011 at 6:24 PM
The overall economic impact of the BioDistrict in downtown New Orleans will be well over $6 billion in terms of infrastructure investments, new and “saved” jobs, personal earnings and tax collections, according to LSU economist James Richardson, who also is a member of the Louisiana Revenue Estimating Conference.
Richardson’s projections are contained in a report completed last month for BioDistrict New Orleans. The report measures the economic impact of the district’s construction phase, which will be most intense in the first five years but will continue up to 20 years, as well as the impact of ongoing operations once the district’s component institutions are up and running.
Richardson’s study estimates total “investment” during the first five years will be more than $1.6 billion — not including major equipment purchases — with a total of more than $3.3 billion in economic impact during that same period. That $3.3 billion includes more than 7,000 jobs a year (most of them in construction) and more than $1.1 billion in personal earnings. New state and local tax collections will reach $140 million or more during those same five years, he estimates.
“The construction activity in the first three to four years will create a noticeable surge in the economy,” Richardson writes, adding that the cash infusion will come both from public as well as private sources. The first five years will see most of the public investment, he writes, with private and institutional investment following in years 6 through 20.
In years 6 through 20, Richardson estimates total “estimated business activity” related to the construction phase at more than $3.2 billion, sustaining more than 2,000 jobs per year and personal earnings between $426 million a year and $650 million a year.
Once the district is operational, the economic impact will be even more significant, according to Richardson. “Direct jobs are expected to grow from 8,800 in year 5 to over 21,000 direct jobs in year 20, an increase of over 12,000 jobs. Overall direct and indirect job growth is estimated at over 22,600 new jobs due to the development of the BioDistrict from year 5 to year 20.” Richardson estimates total jobs — saved and new — will exceed 36,000 by year 20.
The total economic impact of construction and operations, he says, will mean nearly $2.6 billion in annual personal earnings by year 20 and more than $330 million in local and state tax collections.
On a final note, Richardson wrote that he believes his estimates are somewhat conservative. (On the state Revenue Estimating Conference, he is typically the most conservative member in terms of forecasting revenues.) “We did not project the same growth pattern for New Orleans as have occurred in other medical districts,” the report states, “but this is not to say that this higher level of growth cannot be obtained.”
Comments (2)
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Despite trumpeting glowing forecasts and giving a forum for BioDistrict to propagandize their latest news, DuBois gives no mention of the BioDistrict's authority as a subdivision of the State created by Karen Carter Peterson in 2005 to: expropriate property within - and outside of - the boundaries of the district, it's bonding authority, authority to tax or why it wants our neighborhoods.
He gives no indication of the 1500 acre boundary area of the district: Iberville Street, Carrolton Ave., Earhart Blvd. and Claiborne Ave.
He gives no indication of BioDistrict's mandate and potential ethical problems involving BioTech, BioScience, BioAgricultue, BioWarfare, or BioWhatever.
What can the district offer other than maybe 750 000 dollars in tax money from new construction in it's two taxable subdistricts to pay it's president and staff? BioDistrict is currently $200 000 in debt and has no real serious commitments from the State for further operational money. It seems that economic development can happen in spite of the BioDistrict in which case it's existence becomes an unnecessary waste of dollars.
Are any of the recent structures that have opened or been build within the manufactured State boundaries attributable to BioDistrict? No. This is a land-grab plain and simple. The creation of the BioInnovation Center, Tulane Cancer Treatment Center, the new UMC and VA Hospitals are not and were not dependent on BioDistrict New Orleans.
Is DuBois mistaking the BioDistrict with the UMC/VA medical corridor that was created overtop of 70 acres Historic Lower MidCity - bounded by S. Rocheblave, Tulane Ave, S. Claiborne and Canal St.?
BioDistrict is a much larger animal that advertises potential for over 11 million sq. ft. of new development and renovation over of the course of the 20-year plan. Where in that 1500 acres of MidCity, Gert Town and Zion City will we see this so called "new development and renovation"?
The residential areas of BioDistrict New Orleans need to be formally removed from it's boundaries! For more info see here: http://nolabiodistrictwatch.wordpress.com/
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Hi Give Me Truth,
Your comment appears well thought out and your passion is evident. May I suggest, however, that at worst it could be potentially cynical and misguided.
BioDistrict New Orleans and the GNOBEDD Board have worked tirelessly to fund a project that potentially provide:
- Healthcare to those currently without (life expectancy far shorter than the US average in NOLA)
- Job to New Orleanians who are desperate for them
- Stimulation to a stagnant local economy
- Revitalization to a blighted part of downtown
- A venue to attract out of state dollars
This isn't a conspiracy. This isn't a plot to destroy neighborhoods and New Orleanians. Idealogically, the BioDistrict is an opportunity to bring health and money and jobs into the city for the benefit of all of us.
I know we are rightfully resistant to change in NOLA and I know that we need to keep having discussions about taxes and zoning and historical preservation. But let's not blow something good based on previous bad experiences.
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