An improving unemployment rate offers an incomplete picture. Fewer people aren’t unemployed. Fewer people are working.
Assessing how well Robideaux delivered on the promises made in last year’s address.
Walmart’s decision shines a light on serious issues with no easy answers.
Recent headlines indicate 2018 might be the year our economy started recovering. But there’s ample evidence that any optimism should be guarded given the situation our economy’s in.
The gist: Lafayette lags far behind other American cities in job creation and retention and economic growth. The city ranked 196 out of 200 cities measured in the Best-Performing Cities index created by the Milken Institute, a California-based think tank.
The gist: Preliminary 2018 financials show incredible growth both in Waitr’s existing operations and those associated with Bite Squad, a midwestern competitor the food delivery company bought last year.
The gist: Lafayette General Health will use a new federal tax advantage program, created by the 2017 tax overhaul, to develop near the Oil Center and invest in healthcare startups. The hospital announced the move at an information session about federal Opportunity Funds, held Wednesday.
Opportunity Funds are a new form of investment vehicle that provides tax advantages meant to spur investment in Opportunity Zones.
Opportunity Zones are low-income census tracts that were nominated by local governments, selected by governors, and approved by the federal government last summer.
Lafayette’s Opportunity Zones include the Oil Center, UL’s main campus, downtown, and the University Avenue corridor from downtown up past I-10 almost to Carencro.
LGH has already been investing in real estate. Over the last few years, through the Lafayette General Foundation LGH has established a Real Estate Investment Fund (REIF), which acquires, finances, or develops real estate that LGH leases.
Now it has plans for developing Hospital Drive. Big plans, in fact, including a 3 to 5 story medical office building that will be a new home for the Cancer Center of Acadiana and LGH’s neuroscience work. This development will also include housing for LGH’s medical residents and retail space.
The project could breath new life into the Oil Center. The Oil Center could have been River Ranch, LGH CEO David Callecod told conference-goers, because it’s a safe walkable community with retail and restaurants; it just never had much housing. The Hospital Drive development project will create a live/work/play experience for LGH’s medical residents, with the longview of encouraging them to start their practices in Lafayette once they graduate medical school.
Opportunity Funds are ideal for enabling LGH’s aspirations. While LGH was already investing in real estate, because the Oil Center was selected as an Opportunity Zone LGH can create an Opportunity Fund to provide additional tax advantages to recruit investors to help fund the development project.
And real estate may only be the beginning. Opportunity Funds can also be used to invest in companies. For some time, LGH has been investing in health care startups through its Healthcare Innovation Fund. And it’s currently looking at making an investment in a company that may be relocating its headquarters to the Oil Center. If that company is successful, then in the future LGH’s Opportunity Fund could provide additional investment capital to fuel further growth of this as-of-yet-unnamed startup.
LGH is already reaping rewards for investing in startups. At the event, Cian Robinson, executive director of innovation, research, and real estate investments at LGH, announced that the fund had its first successful exit. Start-up HealthLoop was purchased last fall for $200 million. LGH invested around $1.5 million into the company, clearing $4 million in just a few years with the sale. LGH is currently raising funds for its second Health Innovation Fund.
The gist: Year-to-date sales in Lafayette Parish approached $5.5 billion through November 2018, according to a release from LEDA, on pace to surpass $6 billion. That puts local commerce in shouting distance of 2014’s $6.4 billion peak with a month of reports to go.
Total taxable sales in the parish were up 4.4 percent from 2017 and 5.6 percent from 2016 in that time period.
But the city’s lagging behind: The city of Lafayette performed the worst among municipalities, up only 1.4 percent, compared with 28.2 percent in Duson, 19.3 percent in Youngsville, 17.3 percent in Scott, and 9.2 percent in Carencro. Even unincorporated Lafayette Parish beat the city with a 3.7 percent uptick.
More than 70 percent of the total retail sales in the parish happen in the city of Lafayette. It’s still the region’s shopping anchor. In the city, apparel, general merchandise and building material sales are all down from last year. LEDA CEO Gregg Gothreaux says that’s in part due to belt-tightening and a correction from flood-related boosts in construction.
“The downturn forced people to curtail spending,” Gothreaux says. “Apparel is something that can easily be put off, and the sales numbers over the past four years reflect that. People focused on purchasing necessities — looking for the best bargains — or may have occasionally splurged at the hot, new store. The 2016 flood spurred a modest increase in building materials sales that has since returned to pre-flood levels.”
Up but still down: While the parish’s performance might be up from last year, sales through November were off more than $300 million from 2014. The cities of Lafayette and Broussard and the unincorporated parts of the parish are all down more than $100 million each from where they were back then.
Up and up and up: But some parts of the parish have seen a steady rise in retail sales despite the economic downturn in the parish the last few years. Youngsville‘s up about $60 million since 2014, Scott about $40 million and Carencro more than $50 million.
Duson‘s all over the place: If you compare 2018 to 2014, Duson’s down about $1 million. But if you compare it to 2013, it’s up almost $11 million. But then if you compare it to 2012, it’s down more than $24 million. What’s going on in Duson?
More sales = more revenue for government, but in a good way: When total taxable sales go up, so too do sales tax revenues for schools, city governments, and economic development districts. That means more money for government without having to raise taxes. Modest increases in sales tax receipts in the unincorporated area helped patch a temporary budget hole when a plan to sell a parish-owned parking garage to the city fell through. Unincorporated Lafayette parish has been routinely raided of its sales tax revenue through annexations by nearby towns and cities.
Good news, but ... Rising retail sales is an indisputably good thing. But Lafayette still has a ways to grow to recover lost ground. So while we celebrate finally getting some good economic news, let’s not forget that this just suggests the bleeding has stopped. There is still a lot of healing left to do.
The mayor-president has accused the library system of defrauding taxpayers to the tune of $21 million dollars. Unfortunately for his credibility, the facts don’t back up his claims.
Mayor-President Robideaux wants to rededicate $18 million from the library’s fund balance to pave roads and clean coulees, but there are hidden costs that must be accounted for.
At a job fair tomorrow at South Louisiana Community College IBM will try to recruit people to move from Lafayette to Baton Rouge with the help with LED.
The gist: Jobs of the future require degrees or certifications, but Acadiana’s workforce isn’t educated enough, according to business leaders. At a summit last week, One Acadiana launched 55 by 25, a community-wide effort to boost the number of workers holding post-secondary certificates or diplomas to 55 percent of the population by 2025.
About 40 percent of the working age population in Acadiana has a degree or certificate. The region ranks fifth in the state. Louisiana ranks 48th in the nation. By 2025 regional attainment is projected to rise organically to 44 percent, meaning there’s an 11-point gap the initiative aims to close. That’s about 44,000 people to credential.
“We’re going to wage war on allowing our citizens to be uneducated,” says Dr. Natalie Harder, chancellor of South Louisiana Community College, a speaker at the summit.
It ends with diplomas but starts with childhood. The initiative aims to improve readiness for kindergarten. Louisiana lags in early childhood education, a key indicator of post-secondary success. Harder says there’s low-hanging fruit too: adults who have left college degrees incomplete but have enough credits to get an associate’s degree.
Lafayette’s already on track; it’s the rest of Acadiana that’s lagging. When you combine college degrees, associate’s degrees, and certifications, Lafayette Parish’s workforce is already at 52 percent. Given a projected organic increase of 5-6 percent across Acadiana, that means Lafayette’s on track already. But the rest of the parish is much further behind, bringing the region’s average down to only at about 40 percent. Lafayette still has a lot to gain, because when employers consider moving here, they look at the quality of the workforce across the region.
The state announced a goal of 60 percent by 2030. Dr. Kim Hunter Reed, commissioner of higher education for the Louisiana Board of Regents and the summit’s keynote speaker, announced that state goal in her remarks.
“Let’s all just agree that a smarter workforce is better,” says Jim Bourgeois, One Acadiana’s VP for economic development. Companies have increasingly emphasized workforce education in site selection, meaning as Acadiana fails to educate, it fails to compete for more jobs. Still, there’s a growing recognition that, site selectors be damned, education is intrinsically important, even when it’s not linked to employer recruitment.