Last year at this time, we were all dealing with a lot. Our 2022 top story of the year was crime — not a surprise as New Orleans had officially claimed the title of “Murder Capital of the Country.” We were also still fresh off a string of hurricanes and facing the reality of skyrocketing insurance rates — our No. 2 story for the year.
In the closing of last year’s intro to the top stories of the year, we ended with the hope that in 2023 our state would be energized “to tackle the issues that are to come and find the opportunity that lies within.”
The good news is, we’re seeing evidence of that happening.
Unlike in 2022, most of our top stories this year are those of action, not devastation. We’re seeing new legislation and government funded programs to address our insurance crisis, the launch of a $3 billion project aimed at rebuilding our disappearing coastline, and another mixed-use development project with the potential of bringing more than $1 billion to our local economy by realizing the potential of our long-neglected riverfront.
We’re seeing announcements of new railway projects to both the east and west, along with movement to diversify our oil and gas industry into wind, and so much more.
In 2023 we saw a lot of strong beginnings. Going forward, may be build on them, and continue to make our region into the place we know it can be.
1 | State Legislation Takes Aim at Insurance Crisis
In February, Louisiana Gov. John Bel Edwards called for a special legislative session to address the state’s property insurance crisis. During the session, insurance commissioner Jim Donelon — who announced in March that he would not be seeking reelection — asked the Legislature to allocate at least $45 million for a newly created incentive fund aimed at luring insurance firms to Louisiana.
Under the $45 million funding bill — which easily passed the House and Senate — qualified companies can be awarded grants between $2 million and $10 million. In return, those insurers must provide 100% matching funds for the grant.
In only two years, 2020 and 2021, Louisiana was hit by four hurricanes — two Category 4 hurricanes, one Category 3 and a Category 2. In the wake of a flood of claims, as of July 2023, about a dozen insurance companies had failed, and about another dozen stopped writing in the state. Those property owners who could not secure insurance were pushed to Louisiana Citizens Property Insurance Company — the state-run insurance company of last resort — which saw its number of policies almost triple to over 130,000.
Donelon has said 10 insurers are interested in participating in the program, including seven already operating in Louisiana. While the commissioner said he can’t guarantee that the program will decrease premiums, he hopes it will “stabilize” the market.
While incentivizing insurers, the state also took action this year to start to lower risk. In October the state began offering the first group of grants of up to $10,000 per property to help owners repair or replace their roof with an upgraded “fortified” roof. Multiple rounds of grants were offered on a first-come, first-served, basis. The state has set aside $30 million for the program this year. The goal is to lower the number of policies held by Louisiana Citizens, draw more insurers to the state and help owners secure lower rates. Under a new state law, insurance providers are now required to offer discounted rates to any property with a fortified roof.
Multiple new laws were also passed statewide this year to assist property owners with damage claims after a storm. Among them is one that requires insurers to provide hurricane, wind and hail deductibles when they propose a policy, while another requires all insurers to provide a catastrophe response plan to do business in Louisiana. All insurance companies, including health maintenance organizations (HMOs), will now have to provide detailed plans addressing how they will send adjusters into the field after a disaster and where they will operate if their offices are impacted.
Insurers must now also offer additional living expense coverage for homeowners who suffer a total loss from a storm or insured peril. Qualifying policyholders will now receive three months of increased living expenses. — Misty Millioto
OPENED
- St. Tammany Corp, and Crosby Development
919-Acre Gulf South Commerce Park in St. Tammany Parish - The National WWII Museum
Capstone Liberation Pavilion, Final Permanent Exhibit Hall - Caesars Superdome
First Phase of $500 Million Renovations - New Orleans Public Belt Railroad
Completed France Road Railyard - West Jefferson Medical Center
Renovated Atrium as Part of Ongoing $86 Million Renovation - Audubon Nature Institute
Opened Reimagined Audubon Aquarium/Insectarium - Poydras Home
Unveiled $23 Million Expansion - I-10 Flyover Ramp to MSY
2 | Mid-Barataria Diversion Project Launched Amid Doubts and Controversy
After years of planning and hearings – not to mention opposition and controversy – the nearly $3 billion Mid-Barataria Sediment Diversion project finally broke ground in August. Located in Plaquemines Parish on the west bank of the Mississippi River, the project aims to create 20 to 40 miles of new wetlands over the next half-century.
The largest attempt yet to rebuild South Louisiana’s disappearing coastline, the diversion essentially recreates the natural processes that built the river delta in the first place. Thousands of gallons of muddy water from the Mississippi that would otherwise flow straight to the Gulf of Mexico will be diverted toward Barataria Bay, depositing sediment along the way to replenish lost land.
While no one doubts that restoring the wetlands is essential to the survival of Southeast Louisiana, and the Barataria Bay area has seen some of the greatest land loss anywhere along the coast, opposition to the project has come from a variety of sources, for a variety of reasons. This starts with the technology itself, which state officials acknowledge is new and unproven.
While state and Army Corps of Engineers personnel have expressed confidence that the new approach will work, opponents suggest that other, more proven methods would be preferable and have fewer negative impacts. Techniques such as pumping water through pipelines directly to areas targeted for land rebuilding and building barrier islands to reduce wave erosion have had positive effects in shorter time frames. They have not, however, worked on the scale envisioned for the sediment diversion.
Skeptics counter that ongoing factors such as climate-induced sea-level rise and land subsidence call into question the net amount of new land that will actually be created.
All involved acknowledge that there will be negative economic, cultural and environmental impacts. Diverting fresh water from the Mississippi will reduce the amount of salt in the Barataria Bay water. Most of the bottlenose dolphin population in this area is expected to perish because of this, and there will be severe impacts on sea turtles, birds, fish and shellfish.
The last two are causing the most controversy. Fishermen and oystermen fear the loss of their livelihoods, a lifestyle that in many cases goes back generations. Louisiana has committed $10 million to assist these individuals in adjusting to the changes, but millions more may need to be spent on local infrastructure, such as roadways, that could become vulnerable to new flooding as land is rebuilt.
Nevertheless, the Mid-Barataria project is moving forward. While it may be a huge roll of the dice, coastal land loss is an existential threat to the greater New Orleans region. Big problems often require big — and sometimes risky — solutions. — Keith Twitchell
3 | The Rise of the River District
For nearly 20 years, the Ernest N. Morial New Orleans Exhibition Hall Authority has sought viable development options for a stretch of low-density riverfront upriver from the Crescent City Connection.
Closure for this quest finally came in the latter part of 2022, when the authority approved the master development plan presented by River District Neighborhood Investors, LLC (RDNI), involving an extensive mixed-use residential and commercial project called River District.
The project, touted as a “once-in-a-lifetime boost” for the city and state economy, promises big things, including a projected $43 million in new annual net tax revenues, more than $1 billion for the local economy and an estimated 6,000 permanent jobs.
Linking the Warehouse and Lower Garden Districts with the Riverfront and Convention Center, the River District features several residential formats, including 900 condos and apartment units, half of which will offer affordable and workforce housing for hospitality and entertainment industry employees. The project will also provide retail space, hotels, restaurants, services and entertainment options.
Composed of what RDNI’s website calls “a diverse, talented, and well-capitalized group of development partners with deep local roots,” the organization has committed to getting at least 30% participation from small and emerging businesses (SEB) and disadvantaged business enterprises (DBE) during the project’s development, construction and design.
“This is a major milestone for all of us, as this partnership and project development plan will create hundreds of new jobs while providing additional business opportunities to small, emerging and disadvantaged businesses enterprises in our community,” said Authority President Jerry Reyes.
The project gained momentum this year with several new developments announced, including a planned $40 million Topgolf location. Slated to open in January 2025, the sports and entertainment venue is expected to generate up to 400-450 new jobs.
In September, meanwhile, Shell’s Gulf of Mexico operations announced it would anchor the district’s commercial office space with a 142,000-square-foot, multi-floor office building scheduled to open in late 2024 or early 2025. Located at the corner of Henderson and Euterpe streets on Convention Center Boulevard, it will serve as Shell’s Gulf of Mexico operations headquarters and accommodate approximately 850 employees. A significant win for local real estate, the Shell River District location has a 12-year lease and is the first Class A office building to be constructed in the city since 1989. — Nicole Dufour
4 | A Big Year for Louisiana Republicans
After two terms under Democrat Gov. John Bel Edwards, on Oct. 14 Republican Jeff Landry was declared the winner of Louisiana’s governor’s race. With more than half the votes, Landry avoided a runoff and won the race outright, becoming the state’s 57th governor.
Landry has served as the state’s attorney general since 2016. He announced his bid for governor in October 2022, and just a month later he received an uncommon early endorsement from the state’s Republican Party before any other GOP candidate had entered the race — a move fellow Republican Lt. Gov. Billy Nungesser said looked “more like communist China than the Louisiana we know and love.”
Shawn Wilson, the former head of Louisiana’s Transportation and Development Department and the sole major Democratic candidate, was the second runner-up in a race that saw the lowest voter turnout in more than a decade. In New Orleans, only 27% of eligible voters cast a vote — lower than the 32.7% of the state as a whole.
“The citizens of Louisiana spoke, or didn’t speak, and made a decision,” said Wilson in his concession speech.
In his new role, Landry, a staunch supporter of former President Donald Trump, will lead a state with a Republican supermajority in both chambers of its Legislature.
Moving forward, Landry has announced the formation of 14 transition councils to provide policy recommendations on topics statewide including the environment, infrastructure and education, but included is a New Orleans council that will specifically address the city’s issues and will be headed by former Bollinger Shipyards CEO Boysie Bollinger.
While one Louisiana Republican reclaimed the governor’s seat for his party, only 11 days later, another was elected as speaker of the U.S. House. Following more than three weeks of fighting within the GOP, Rep. Mike Johnson received unanimous support from his party. Fellow Louisianan and House Majority Leader Steve Scalise had been a contender for the position but dropped out after failing to secure enough support.
Currently serving a fourth term in Congress representing Louisiana’s fourth congressional district, Johnson is also a staunch supporter of former President Donald Trump and played a major role in his efforts to overturn the 2020 election, filing a brief in a lawsuit seeking to overturn the results, which was quickly thrown out by the U.S. Supreme Court. Following the Jan. 6 attack on the Capitol, he voted against certifying President Joe Biden’s win.
A lawyer specializing in constitutional issues and a devoted evangelical Christian, Johnson, in his first act in Congress, introduced a bill that includes $14.3 billion in emergency funding for Israel but is tied to rescinding the same amount of IRS funding from the Inflation Reduction Act that Biden signed last year. — Kim Singletary
5 | LCMC Acquires Three Tulane University-Affiliated Hospitals, Bringing New Orleans’ Healthcare Market Down to Two Players
Louisiana-based nonprofit system LCMC Health first announced plans to acquire three Tulane University-affiliated hospitals — Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital — from HCA Healthcare in 2022.
The Federal Trade Commission expressed concerns about the deal, as it could yield a duopoly in the New Orleans area by increasing LCMC’s local market share to 55%. The FTC wanted to force the health system to apply for approval from federal regulators, but LCMC got a green light for the acquisition and merger from the state attorney general’s office. LCMC then sued the FTC in federal court to assert its ability to move forward with the integration.
On Sept. 27, the District Court of the Eastern District of Louisiana ruled in favor of the purchase, adding its approval to that of the Louisiana Department of Justice and Louisiana legislators.
LCMC plans to move doctors from Tulane Medical Center, which will be transitioned into a teaching facility, to East Jefferson General Hospital and University Medical Center New Orleans (UMCNO). The health system will keep a freestanding emergency room onsite.
“We are pleased to announce that the District Court has recognized the value of our partnership with Tulane University and upheld the State of Louisiana’s approval,” said LCMC Health CEO Greg Feirn in a statement. “Earlier this year, LCMC Health and the Attorney General Jeff Landry took a strong stance by taking legal action to safeguard this significant collaboration. This partnership underwent a thorough review and approval from the Louisiana Department of Justice, which has been validated by the court’s decision.”
The integration of Tulane University’s facilities with its new parent system will proceed through 2024, according to the organizations. Operations will continue as normal during that time and all employees will continue to have jobs with LCMC. LCMC said it plans to transition “the majority of services” at the 235-bed Tulane Medical Center over to LCMC’s East Jefferson General Hospital and UMCNO.
The deal comes with a $150 million price tag and, according to LCMC, will be accompanied by a $220 million initial capital investment into the hospitals. LCMC Health said the deal will expand access to care and increase career opportunities.
“With this transformational partnership, we can build on our strong history of collaboration with our academic partners, Tulane University and Louisiana State University, to do more for our patients, communities and region together than would be possible as separate organizations,” Feirn said. “By joining forces, we will increase access to comprehensive and specialty care across our region, ensuring all our patients and communities receive extraordinary care, right here at home.”
LCMC was established in 2009 and currently manages six hospitals across the New Orleans area. The acquisition will bring its total to nine. — Misty Millioto
6 | Offshore Wind Opportunity Begins to Blow Our Way
In a state that has long been trying to diversify from its reliance on the hospitality and oil and gas sectors, the opportunities with an emerging wind sector have brought excitement.
Louisiana Gov. John Bel Edwards approved the state’s first Climate Action Plan in early 2022. The plan includes a goal of 5gw of offshore wind power by 2035. In March 2023, the Biden administration announced its strategy aimed at providing 30gw of offshore wind by 2030. These ambitious goals have spawned movement in the industry.
Economic development leader GNO, Inc., has been an early and fervent supporter of building up the offshore wind industry, pointing out that in a 2020 report, the National Renewable Energy Laboratory (NREL) ranked Louisiana fourth in state offshore technical wind potential. The organization has created the GNOwind Alliance, a group composed of more than 250 companies and organizations.
“The existing Gulf of Mexico oil and gas supply chain, workforce and port infrastructure represent unique advantages to a potential offshore wind hub,” explained Sam Eaton, CEO of German multinational energy company RWE offshore holdings LLC, in a press release.
In March of this year, Entergy announced it was partnering with RWE to analyze the Gulf of Mexico offshore wind market to evaluate the delivery of clean energy from offshore wind to industrial customers in Texas and Louisiana.
Texas currently leads the nation in electricity generated by wind.
Along with oil rig supply ships, Louisiana shipbuilding giant Edison Chouest Offshore announced in early April that it was assembling 260-foot-long ship called Eco Edison in coastal Terrebonne Parish. When completed next year for Ørsted — a Danish firm that builds and operates wind farms worldwide — the ship will house U.S. offshore wind technicians and their tools as they run and maintain wind farms in the Northeast.
On Aug. 29, the first-ever Gulf of Mexico offshore wind lease sale auctioned off three tracts of federal waters for wind energy generation. Only two companies participated and only one tract received any bids. RWE Offshore US ended up winning a 102,000 tract off the coast of Lake Charles for $5.6 million.
“Today’s auction results show the important role state public policy plays in offshore wind market development,” said Luke Jeanfreau of the Business Network for Offshore Wind, an organization formed to aid the development of offshore wind, noting a lack of mandates for renewable energy in the state. Jeanfreau added, however, that “Gulf expertise in offshore construction is unparalleled, and their innovative solutions will continue to drive the U.S. and global offshore wind industry forward.” — Kim Singletary
NOTABLE RENOVATIONS/EXPANSIONS
Announced/Broken Ground
- Kindle Energy — broke ground on $750 million electricity generation plant in Iberville Parish
- MKS Plastics — $14 million to double the size of its production facility in Tangipahoa Parish
- Loop Linen Service — building $15 million commercial laundry facility in Bridge City
- City of New Orleans — secured $24.6 million to redevelop Lincoln Beach
- CrescentCare — broke ground on new $21.6 million Mid-City location
- Hynes Charter School and University of New Orleans — broke ground $28 million Hynes-UNO campus
7 | Two Big Railroad Announcements
In September, the Federal Railroad Administration authorized $178.4 million in funding to restore passenger rail service along the Mississippi Gulf Coast. The grant will be used to improve tracks and build a new platform in Mobile, Alabama.
The decision means Gulf Coast passenger rail service, which has been suspended since 2005, could come as soon as the first quarter of 2024.
“This is a significant milestone, representing years of dedicated efforts to reconnect our communities after the devastation of Hurricane Katrina,” said U.S. Sen. Roger Wicker, R-Miss, in a press release. “Restoring passenger rail service will create jobs, improve quality of life and offer a convenient travel option for tourists, contributing to our region’s economic growth and vitality.”
The Southern Rail Commission — led by 15 gubernatorially appointed commissioners representing Alabama, Louisiana and Mississippi — is committed to establishing twice daily, round-trip passenger rail service between New Orleans and Mobile with stops in Bay St. Louis, Gulfport, Biloxi and Pascagoula. Its long-term goal also includes extending passenger rail service to Orlando.
On Oct. 26, more good news was announced for the future of New Orleans rail access when Gov. John Bel Edwards was joined by representatives from the Department of Transportation and Development and Amtrak for the signing of a service development agreement that will start the process of returning passenger rail service back between Baton Rouge and New Orleans. The last passenger train between the two cities was discontinued in November 1969.
The new route will eventually connect to the New Orleans-to-Mobile corridor projected to open in 2024.
According to the agreement, passenger service could start as early as 2027. Amtrak will use tracks currently in place along the I-10 corridor.
“An Amtrak line connecting Louisiana’s capital to the largest metropolitan area in the state will have immense economic benefits for both cities and the parishes in between,” said Gov. Edwards. “Not only will this service potentially reduce the number of vehicles on the roadways which will result in less congestion, but it will also connect communities through employment opportunities and allow for more transportation options for festivals, sporting events, and concerts.”
The currently planned route will include two stops in Baton Rouge, along with stops in Gonzales, LaPlace, New Orleans International Airport, Jefferson Parish and the New Orleans Union Passenger Terminal.
The initial plan is for one round trip daily, expanding to two daily round trips later, pending evaluation of operations and potential railroad improvement needs. Additional round trips could be introduced in the future. — Misty Millioto
8 | The Saltwater Wedge Wake-Up Call
New pipe replacement plans are underway following the recent saltwater threat from the Gulf of Mexico, which exposed critical issues to New Orleans’ and other Louisiana cities’ water supplies.
For the second year in a row, the hot and dry conditions of Louisiana’s summer have allowed saltwater to creep inland. This poses a threat not only to water intake plants but to New Orleans’ entire water supply and piping. New Orleans’ water supply is almost entirely dependent upon the two Mississippi River intakes on the east and west banks of the river.
The west bank intake pumps up to 15 million gallons a day, while the east bank intake pumps up to 150 gallons a day. While initial forecasts by the U.S. Army Corps of Engineers predicted the saltwater would affect New Orleans in October, the threat seems to have abated at this time, with new forecasts predicting that water intake facilities are safe this year unless something drastic happens.
However, Jefferson and Orleans parish officials are not taking the situation lightly, as the threat of higher salt levels to New Orleans’ drinking water supply poses potentially significant issues to the thousands of lead pipes throughout the city.
If mass amounts of saltwater were ever to make it to the river intake systems, it would cause salt levels to rise in New Orleans and the surrounding areas depending on these intakes and water supplies.
The real problem is what the salt levels can do to lead pipes. Extra salt within the processed water can easily corrode lead pipes. This corrosion leads to unsafe lead levels in the drinking water that flows throughout these pipes. The city has also been battling with leaking water mains for decades, furthering complications.
The possibility of higher salt content in the drinking supply could lead to a major crisis within the city. Luckily, $1.2 billion in funds from the Bipartisan Infrastructure Law have been allocated from the federal government to replace lead pipes around the country.
In an October BizTalks podcast episode, Ghassan Korban, executive director of Sewerage & Water Board of New Orleans, said the city should receive a fair amount of this funding due to the high levels of lead pipes within the city. S&WB plans to inspect every pipe to determine whether or not it needs to be replaced by the end of 2024 and will begin the replacement process at the start of 2025.
The plan encompasses not only the main waterlines within the city but also the private portion of lead lines, such as homeowners’ pipes. The main goal of this pipe replacement campaign is to ensure a better, healthier future for the residents of New Orleans. — Ross Regard
9 | Entergy Proposes “Operation Gridiron” and Sells its Gas Business
On Oct. 17, Entergy New Orleans announced that it was sending its “Operation Gridiron” proposal to the New Orleans City Council for review. The $1 billion power infrastructure program seeks to make the city’s grid stronger to withstand more frequent, stronger storms.
The proposal includes many projects across the city over the coming decade that will allow Entergy New Orleans to keep the lights on longer when a storm hits, and to restore power more quickly. If the proposal is approved, Operation Gridiron will provide New Orleans with “one of the most storm-ready power infrastructures in the United States,” according to a spokesperson for the utility.
Part of the proposal includes upgrading thousands of utility poles to withstand winds of up to 150 mph and hardening 650 miles of power lines. In so doing, Entergy New Orleans says it can reduce outage frequency and duration, saving customers millions of dollars.
Meanwhile, in October the Biden administration — in the largest federal investment ever in grid infrastructure — announced it was handing out $3.5 billion to 58 projects across the country — including $55 million to Entergy New Orleans — to strengthen electric grid resilience as extreme weather continues to strain the nation’s aging transmission systems.
Among the projects to be funded include $249 million each for rural areas in Georgia and Louisiana. In Louisiana, two projects will focus on helping disadvantaged communities withstand extreme weather and develop microgrids to work with local utilities and back up existing assets.
Only two weeks later, on Oct. 30, Entergy announced it had entered into an agreement to sell its gas distribution business to Baton Rouge-based Bernhard Capital Partners, a services and infrastructure-focused private equity management firm, for approximately $484 million in cash, subject to certain purchase price adjustments. Entergy New Orleans’ gas business serves approximately 109,000 homes and businesses in New Orleans.
Barring regulatory approvals, the sale is expected to close in 2024. — Misty Millioto
10 | Massive Avondale Redevelopment Still Up in the Air
In its heyday, Avondale shipyard was the largest employer in the state. After closing in 2013, however, the 254-acre property sat largely unused until it was purchased by the shipping and stevedoring company T. Parker Host in 2018. The purchase price was $60 million, and Host claims to have invested approximately $100 million in improvements since then.
In January, the Port of South Louisiana announced an agreement to buy the property — now positioned as the “Avondale Global Gateway” — for $445 million, most of which would be financed by a state bond issue.
Host announced $46 million in gross revenues in 2022, and supporters project a total economic impact of $32 billion by 2027. This would include 4,500 new jobs and $8.6 billion in payroll.
Skepticism emerged almost immediately. Many observers questioned the economic projections and the port’s ability to make bond payments if revenues fell short. The vast profit that Host would realize also raised eyebrows, especially in light of conflicting value assessments for the property.
In August, Host and the port announced that they had settled on a new selling price of $330 million — a 25% reduction. With considerable doubts still remaining, including among members of the State Bond Commission, in October the partners announced that they were “pausing” their request for “further evaluation.”
A thriving, built-out Avondale would bring tremendous economic benefits to the entire region. Though the deal was not completed in 2023, its announcement brought considerable attention to this vital property, with hopes that an agreement can be finalized next year. — Keith Twitchell
