Whirlwind of Development and Opportunities Continue in New Orleans Region

When I moved back to New Orleans from New York City in 2009, I didn’t know what to expect.  Sure, I was excited to be closer to family, have a steady supply of fresh seafood, and be forever rid of my black down jacket. But the anchor of career prospects outside of the tourism and oil & gas industries seemed wishful.  This worry was unfounded because New Orleans and surrounding parishes have been experiencing a whirlwind of development activity, attracting new companies, expanding existing ones, and creating more jobs and wealth in the region. Progress has been especially evident in the past two years and was succinctly summarized at ULI Louisiana’s 4th Annual What’s REALly Going On event.

Representatives from Jefferson, St. Charles, Orleans, and St. Bernard Parishes spoke of their long-term development plans and current projects underway.  One of my favorite projects to hear about was the $60 million NOLA Motorsports Park being built in Avondale in Jefferson Parish.  This sprawling 750-acre facility south of the TPC Louisiana Golf Course is the closest thing to heaven for a speed demon, where adults and kids alike can euphorically zip around the racetrack.  Upon completion, this will be the longest racetrack in North America. Zoom, zoom!

Photo courtesy of www.nola.com

In St. Charles, Parish President VJ St. Pierre cited $2.7 billion worth of planned industrial expansion. This includes projects like the Valero Green Diesel Facility and Dow Ethylene Expansion (each estimated to be $400 million), the $238 million Praxair Hydrogen Plant, and the $190 million Air Products Hydrogen Plant.  A good education system and low crime rates which contribute to a high quality of life were a few major reasons convincing companies to expand into the parish.

Hearing the various presenters speak about their strategies and plans to attract new business to their parishes, I couldn’t help but wonder if there might be overlap in efforts and market cannibalization.  After all, we all reside in Louisiana and, while each parish has autonomy over its economic development, our resources would be more effective with greater coordination and organization among all players.  Michael Hecht from GNO, Inc. did note coordination among the parishes and highlighted key industries that the 10-parish Greater New Orleans region is targeting for new investment and development.  Three of the sectors – Advanced Manufacturing, Energy, and International Trade – focus on building on the region’s existing strengths.  The remaining sectors – Software & Digital, BioSciences, and Sustainable Industries – focus on leveraging regional assets to create new, diversified opportunities.

The New Orleans region has attracted a diverse spectrum of companies ranging from Gameloft, the Paris-based video game developer, to Blade Dynamics, the wind turbine manufacturer.

Photo courtesy of www.gnoinc.org

I think our country, states, parishes, and individual businesses can learn from GNO, Inc.’s successful use of a strategic analysis to define the region’s strengths which can then be turned into opportunities.  Our firm recently conducted an internal SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to quantify our collective strengths as a company and to identify opportunities that would complement these strengths.  It was a productive morning where each staff member not only learned an interesting fact or two about another, but gained a clearer idea of areas where we could develop more business.

New Orleans certainly isn’t the place I expected when I arrived in 2009.  It’s better.  The city is humming with activity and being touted as an outstanding place to live and work.  Companies nationally and internationally are noticing our attractiveness and I’m certain we have the tools and leadership to reel them in.  In the midst of all of this positive outreach, though, we need to ensure we are nurturing the companies that already exist in our region.  More on that in my next blog article.

Contributed by:

Mimi Tsai

Feasibility Analyst

mimitsai@tmg-consulting.net  or (504) 569-9239 x 34

 
—–
 
Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.
Leave a Comment
by tmgconsulting on February 22, 2012  •  Permalink
Posted in Uncategorized, Urban Planning
Tagged , , , , , , , , , , , , , , , , , , , ,

Posted by tmgconsulting on February 22, 2012

http://tmgconsulting.wordpress.com/2012/02/22/whirlwind-of-development-and-opportunities-continue-in-new-orleans-region/

A Tale of Two Super Cities: Indianapolis and New Orleans

February 7th is the two-hundredth anniversary of Charles Dickens’ birth.  An enduring required reading masterpiece of his, a Tale of Two Cities, considered characters’ lives in London and Paris during the bloodiest days of the French Revolution.

Without much of a segue to justify my title, I offer a Tale of Two Super Bowl Cities, Indianapolis and New Orleans, that’s XLVI and XLVII to sports fans and 2012 and 2013 to planners.  Basically, London and Paris in either nineteenth century or the twenty-first are far more similar than Indy and the Big Easy as venues.

Memorial Circle, the center of Downtown Indianapolis, Photo: TMG Consulting (Left) and Lee Circle, in New Orleans, Photo:exploreneworleans.info (Right).

Though both cities are sufficiently equipped to handle an event like the Super Bowl, they are in stark contrast to each other in almost every other aspect.

1.   Accommodations:  Indianapolis has approximately 6,500 hotel rooms including a brand new JW Marriott with 1,000 rooms.  New Orleans has about 35,000 hotel rooms including almost 1,200 in the freshly rebuilt Hyatt over-looking the Superdome.

JW Mariott in Indianapolis during the 2012 Super Bowl, Photo: LastAngryFan.com (Left); The recently re-opened Hyatt in New Orleans, Photo: TMG Consulting (Right).

2.   Airports: Indianapolis has a brand new, $1 billion Airport with about seven million passengers per year.   New Orleans has a forty-year old terminal with over eight million passengers per year.

3.   Host Experience: Indy just completed hosting its first Super Bowl to many positive reviews for good planning and a successful event.   New Orleans has hosted the Super Bowl nine times before, most recently in 2002, very palpably in the shadow of September 11, 2001.

4.   Activity: The Super Bowl in Indianapolis is the crowning jewel of a rebranding of the city to promote its enthusiasm and involvement in sports, an effort involving acquisition of an NFL team and building two bespoke stadiums. Annually, they are host to the Indianapolis 500 which attracts approximately 300,000 spectators. The Super Bowl in New Orleans will pause Mardi Gras festivities next year.  Mardi Gras attracts over one million revelers annually. Other events hosted throughout the year with huge visitor numbers common in New Orleans are the Sugar Bowl (70,000+), the Final Four (75,000+), Jazz Fest (400,000 +), Essence Fest (400,000+), and the French Quarter Festival (500,000+).

2011 Sugar Bowl, Superdome, New Orleans. Photo: TMG Consulting

5.   Key Industry: While Indianapolis is working to improve their tourism industry while fostering strong corporate business activity. New Orleans has many visitors and, while always seeking to attract more, would welcome the kind of corporate business activity Indianapolis boasts.  In essence, both cities are seeking to further diversify.

Although the challenges are different between a mid-western stalwart city and a world-renowned tourist destination, the logistical and planning challenges associated with delivering a 100,000 plus visitor event are real and critical.  Each year, the NFL flies 1,500 Friends and Families of the competing teams on charter aircraft to and from the Big Game.   Dallas/Fort Worth, the host of Super Bowl XLV, had an additional 40,000 travellers and had to contend with a freak ice storm.

New England Patriots, Charter Flight in Indianapolis, 2012. Photo: TMG Consulting

TMG was able to visit Indianapolis and observe preparations to accommodate heavy aviation demand going to and, most especially, departing the game.  We’re working to assist in planning for a smooth experience for all New Orleans’ visitors come 2013.  We’re committed to making our Super Bowl, like Indy’s, the best of times!

 Contributed by:

Ross Chapman

Principal

rfc@tmg-consulting.net  or (504) 569-9239 x 27

 
—–
 
Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.
1 Comment
by tmgconsulting on February 9, 2012  •  Permalink
Posted in Airport, Events, Urban Planning
Tagged , , , , , , , , , , , , , , ,

Posted by tmgconsulting on February 9, 2012

http://tmgconsulting.wordpress.com/2012/02/09/a-tale-of-two-super-cities-indianapolis-and-new-orleans/

IND Airport Delivers a Touch-Down Performance for Super Bowl XLVI

Over the weekend Indianapolis hosted its very first Super Bowl.  The new airport terminal at Indianapolis International Airport (IND) was the first and last destination for most attendees arriving by air.  Multi-year planning, expansive new facilities and dedicated staff let IND handle the increased passenger traffic in stride.  The Super Bowl in Indianapolis was a defining event for the city’s people and its businesses.  The genuine excitement, planning effort and hospitality were present within the airport and across the city.

From the moment you stepped off the plane in Indianapolis, it was very apparent that you were in a “Super Bowl City”.  The new terminal facility boasts high ceilings and a clean, modern feel. The Airport was accented in tasteful Indianapolis Super Bowl displays that were provided, in part, by the city’s Host Committee.  Immediately upon leaving the concourse area, passengers walk through the centralized Civic Plaza which is surrounded by concessions and comfortable seating areas.  For the Super Bowl, the Civic Plaza put on a series of live entertainment acts; offered a wealth of concessions to help football fans get ready for the big game; and featured numerous dedicated volunteers, greeters and staff wishing everyone a “Super Day”.

At IND, the busiest day for scheduled arrivals was the Friday prior to the Super Bowl.  IND welcomed over 14,000 passengers on that Friday, representing record breaking traffic for the facility. In preparation for the increased passenger volume, IND implemented a strategic Super Bowl plan which included three temporary FAA towers which assisted in air traffic control and management of fleets of charters and commercial aircraft.  The plan also included a comprehensive ground transportation program which assured that taxis, limos, buses and their passengers would not congest any area of the Airport.  Staff, vendors and the Host Committee coordinated with concessions and rental car companies to accommodate the increased demand for all amenities.

When most of the passengers returned to IND on Monday after the game, any worries of grand chaos and congestion were mainly unwarranted.  Most passengers were informed to arrive earlier than normal to deal with the rush of passengers.  Monday morning, between the hours of 6:00 – 9:00AM there were approximately 6,500 passengers scheduled to leave.  Though there were long lines at the ticketing counters, passengers moved at a steady pace in order to check in and drop off their bags.  The Airport was careful to plan for increased security and opened all fourteen of their screening lanes at the security checkpoints.  In addition, the consolidated concourses allowed passengers to clear security at any checkpoint and easily walk to their gate regardless of which concourse they were headed to.

Though the planning and effort exuded within IND was instrumental in the airport’s planning efforts to support the city during its first Super Bowl, the one thing any visitor can attest to is that the city’s people were sincerely happy and excited to host such an epic event.  The overall feeling was simply described to me as “Hoosier Pride”.

In 2013, New Orleans will host its 10th Super Bowl and plans are already underway within the city to plan for the event.  Visitors will hopefully leave the city with the same welcoming feeling and a sense of Mardi Gras cheer and Southern hospitality.

Contributed by:

Nilsa M. Duran

Analyst, Planning & Built Environment

nilsaduran@tmg-consulting.net  or 504.569.9239 x 32

—–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on February 8, 2012  •  Permalink
Posted in Urban Planning, Airport, Transportation
Tagged , , , , , , , , , , , , , , , , ,

Posted by tmgconsulting on February 8, 2012

http://tmgconsulting.wordpress.com/2012/02/08/ind-airport-delivers-a-touch-down-performance-for-super-bowl-xlvi/

Internet Gaming in the U.S.—Past, Present, & Future

In a previous blog entry titled, ‘Status of Internet Gaming in the U.S.,’ we gave you our version of Cliff’s Notes on what has been happening at the state level with regard to Internet gaming.  This time, we will explore the events that led up to the DOJ’s December 23 opinion, and afterwards, explore the DOJ opinion’s potential ramifications nationwide.

Over the years, various federal actions have addressed the issue of Internet and interstate gaming directly.  Below is a brief description of the major ones.

  • The Interstate Wire Wager Act (Federal Wire Act) of 1961:
    • Made it illegal to make wagers on telecommunication systems across state and national borders.
    • Previously interpreted by the DOJ to apply to all forms of online wagering
    • The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006:
      • Explicitly prohibited businesses to collect revenue from Internet wagering.
      • Immediately scared many Internet gaming operators out of the United States…but not all.
      • Department of Justice Memorandum Opinion regarding Online Lottery Programs (issued in December 2011):
        • Provided a new interpretation of the Interstate Wire Wager Act of 1961
          • “Interstate transmissions of wire communications that do not relate to a ‘sporting event or contest’ fall outside the reach of the Wire Act.”

Internet gaming has been around almost as long as the World Wide Web has.  Until 2006, the federal government had no legislation that addressed Internet gaming directly, but it did interpret the Federal Wire Act to prohibit online wagering.  Based largely out of concern that the potential for money laundering was to great in the booming online poker industry, various members of the federal government in the early to mid 2000’s pushed for new legislation which targeted Internet gaming specifically.  The result of this effort was The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006.

After being passed, the UIGEA shook up the Internet gaming industry.  The new legislation made it illegal for businesses to collect revenue from online wagering.  Several Internet gaming operators fled the U.S. market…but not all.  Some online poker operators believed, through unconventional methods, that they had found legal workarounds to the UIGEA and became giants with continued operations in the U.S. during the later part of the 2000’s.

Fast-forward to April 15, 2011— PokerStars, Full Tilt Poker, and Absolute Poker became household names shortly following the event known as ‘Black Friday.’    Without warning, the DOJ issued a formal complaint against the previously mentioned online poker operators based on the Illegal Gambling Business Act of 1955 and the UIGEA of 2006.  Black Friday knocked the wind out the entire industry.  Several of the founders of the three online poker companies were arrested and key assets such as domain names and bank accounts were seized by authorities.  In complete contrast, and shortly preceding Black Friday, speculation and reports about brick-and-mortar casino partnerships with online operators had been headline gaming industry news.

Two people charged with the DOJ’s Black Friday complaint have already made plea bargains and face sentencing later this year.  To date, the DOJ’s December 23 opinion has not affected the charges levied against the founders of PokerStars, Full Tilt Poker, and Absolute Poker.

As previously mentioned, the DOJ issued a Memorandum Opinion on December 23, 2011 which reversed its previous interpretation of the Federal Wire Act.  The opinion was released as a response to petitions from New York and Illinois’ lotteries seeking permission to sell lottery tickets online.  Prior to the December 23 opinion, the DOJ’s interpretation of the Wire Act would have prohibited online lottery ticket sales.  As of the issuance of this opinion, the DOJ finds that the Wire Act only applies to sports betting, effectively finding it lawful for states to run in-state online lotteries.

If Black Friday knocked the wind out of the Internet gaming industry, the DOJ’s Opinion rejuvenated it.  States, vendors, tech companies, and several other constituents are scrambling now at what they view as a window of opportunity.  As described in our previous blog on Internet gaming, many states are working on implementing their own Internet gaming legislation and programs via their lotteries.  Since interstate wagering already exists in lottery programs like the Powerball, interstate online poker could be legally feasible.

It remains unclear what advantage, if any, the DOJ Opinion provides to Native American tribes looking to get in on the action.  In February 2012, the United States Senate Committee on Indian Affairs will meet to discuss the implications of the DOJ’s Opinion for tribes.

The DOJ did not offer a new interpretation of the UIGEA in its December 23 opinion, nor has its complaint levied against those online poker operators been rescinded.  Nonetheless, several entrepreneurs, social media companies, existing Internet gaming operators and vendors, and other similar entities are creating a buzz as they search for a fit in the states’ race to bring Internet gaming to their jurisdiction.

As exciting as all of this is, there are still a lot of uncertainties.  What will become of the UIGEA, and how will this affect state Internet gaming programs?  Will the federal government pass their own legislation to regulate Internet gaming nationwide in the near future?  In our next blog on Internet gaming, we will discuss what has been going on at the vendor level in lieu of the excitement the DOJ’s Opinion has created.

Contributed by:

Nicholas Farrae

Analyst, Economics & Gaming

nicholasfarrae@tmg-consulting.net  or 504.569.9239 x 31

—–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on February 1, 2012  •  Permalink
Posted in Gaming
Tagged , , , , , , , , , , , , , , , , , ,

Posted by tmgconsulting on February 1, 2012

http://tmgconsulting.wordpress.com/2012/02/01/internet-gaming-in-the-u-s-past-present-future-2/

Status of Internet Gaming in the U.S.

With all of the recent developments in online gaming and so much to sift through, we thought it was time to give our readers our version of the Cliff’s Notes.  First, there has been a lot of talk and a lot of movement toward legalizing online gaming in the United States, with much activity on the state level.  Second, many land-based and online gaming firms have been partnering-up in anticipation of legalization.  This blog entry is the first in a series and will briefly discuss what is happening on the state level.

The Department of Justice’s December 23 opinion opened the flood gates for states to consider online gaming, with many looking to get started with online lottery sales.  Those discussing sales of lottery tickets over the Internet are Connecticut, New York, Illinois, Maryland, and Massachusetts.  Still other states are discussing or are in the process of legalizing other forms of online gaming: Iowa, New Jersey, Ohio, California, Nevada, and Maine.

In Connecticut, where gaming is the exclusive right of Native American Tribes, those tribes have been in talks with the governor.  The Tribes have stated that a new agreement with the state would be necessary to allow Internet gaming, and it is still unclear whether the state lottery or the tribes would get the rights to it.  The sale of lottery tickets online is expected to come up for discussion in the upcoming legislative session.

Iowa is considering multi-state Internet poker, with legislation being considered this session.  The current plan would legalize online poker games within the state and with those in  other jurisdictions that have approved Internet gaming, including Washington, DC, Nevada, and possibly foreign countries.  The Iowa Racing and Gaming Commission has estimated the rake from these games to be between $13 million and $60 million annually, with the potential for $3-13 million in tax revenues annually.

New Jersey recently made news for legalizing sports betting, although the state will now have a fight with the federal government to overturn a law banning sports betting in all but 4 states.  The state is currently considering legislation to allow all casinos to offer online gambling including poker, blackjack, and other casino games.

Nevada has been the most pro-active of any of the states with regard to Internet gaming.  Nevada was the first state to legalize Internet gaming, with a law on the books for a decade that has not yet been implemented.  Recently, the Nevada Gaming Commission wrote online gaming rules and have also adopted online poker regulations.  Internet poker could go live in Nevada in as little as 9 months.

This is an exciting time for proponents of Internet gaming.  No one expected the recent DOJ opinion, and its effects will be realized in the near future.  How the states will react is still up in the air.  Right now, nothing is certain except that the online gaming landscape will be changing and soon.

Contributed by:

Suzanne P. Leckert

Director of Gaming, Feasibility & Land Use Analysis

suzanneleckert@tmg-consulting.net  or (504)569-9239 x 33

—–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on January 19, 2012  •  Permalink
Posted in Gaming, Uncategorized
Tagged , , , , , , , , , , , , , , , , , , , , , , ,

Posted by tmgconsulting on January 19, 2012

http://tmgconsulting.wordpress.com/2012/01/19/status-of-internet-gaming-in-the-u-s/

At What Point Is the Casino Gaming Market Saturated?

As states such as Massachusetts, Florida, New York, New Hampshire, and Maryland enter or expand their presence in the casino gaming market, we have to ask ourselves the question: at what point will the market be saturated?

State by state, casino gaming has been legalized in the U.S.  In years where state and personal budgets are tight, the pace of legalization accelerates as lawmakers search for sources of jobs and for revenues to fund state services and programs.  With each state that has entered the fray, gaming revenues have risen.  The growing American population and the growing acceptance of gaming have fueled the casinos nationwide.  However, established gaming centers such as Atlantic City have suffered, as the majority of the nation’s population is now within a drive or short flight of a casino.

Over the past 8 years or so, I have been analyzing gaming markets across the U.S.  Most recently, I’ve been assessing the potential for expanded gaming in Florida and the Northeast/Mid-Atlantic/New England markets.  What I’m seeing and forecasting is this:  the marketplace can absorb the casinos that are currently proposed, but too much additional supply above and beyond these proposals could saturate the market.  The additions of proposed supply will certainly make competition tougher and will likely have a negative impact on existing gaming operators that don’t step up to the plate.  This competition will be great for gamers – they’ll have more options, and will be able to pick and choose where to spend their gaming dollars.

All of this makes the jobs of those in the gaming industry harder, but potentially more rewarding.  The vast potential for gaming in the United States has not been tapped completely, and smart players in the game will benefit.  In addition to building and operating facilities that gamers will like, gaming firms must consider location.  Capturing gaming dollars will largely be a function of finding the right location – build too far from the population or too close to competition, and revenues could suffer; build in an inaccessible location or one that the community is not in favor of, and no one will come; ignore the potential for synergy with other entertainment options (including other casinos!) and you might be turning away revenues.  Thorough analysis, site evaluation, and thoughtful site selection can help make the difference between building a casino that performs on-par with the market, or one that not only is a market leader, but has the ability to grow the market.

So, the answer to the question of saturation isn’t that simple.  Are we at saturation?  No.  Are we getting close?  Mabye?  Will smart gaming operators be able to grow the market?  We’ve seen it before, why not again?

Contributed by:

Suzanne P. Leckert

Director of Gaming, Feasibility & Land Use Analysis

suzanneleckert@tmg-consulting.net  or (504)569-9239 x 33

–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on January 9, 2012  •  Permalink
Posted in Gaming, Urban Planning
Tagged , , , , , , , , , , , , , , , , , , , , ,

Posted by tmgconsulting on January 9, 2012

http://tmgconsulting.wordpress.com/2012/01/09/at-what-point-is-the-casino-gaming-market-saturated/

Tackling Parking – Alternatives to Building More

Part I: Managing parking supply

In my last post, I discussed broadly the powerful effect automobile parking requirements have had in literally reshaping our communities.  The cost, while not always quantifiable, is usually discernible.  Over the last several decades, city planners and business owners have been experimenting with a number of alternative solutions to a range of parking problems, other than just building more.  I have grouped these solutions into two broad categories: 1) better managing the amount of parking or supply, and 2) better managing the demand for parking.  The first of which is discussed here.

Maybe it’s just me but if a restaurant lot is full at night, I immediately look to the empty office lot next door.  Most parking requirements are a flat rate specific to each type of land-use – 2 per thousand square feet of a bar, 4 per thousand square feet of a health club, etc. There is no regard to where these uses are located relative to each other, or when people are actually using them. (If you want to know more about the history/impact of these requirements, there are a couple of great academic resources here and here).

As many downtowns, including New Orleans, begin reinvigorating themselves with new/converted residential buildings, I have encountered numerous folks who live and work within 8 blocks, but still drive!  Thanks to readily available supply on both ends, this behavior is reinforced and puts pressure on both residential developers and employers by continuing absorbing parking costs.

Whether in the city or suburbs, one doesn’t have to be a professor to observe how much parking already exists and often sits unfilled for much of the day.  The question is can we use available and new parking more efficiently?

Shared parking – this idea has many different iterations but the basic principle is that different land uses can share their parking requirements with adjacent or nearby land uses because they have different parking peaks.  For example, an up-and-coming chef wants to build a new restaurant that is located next to a bank.  A bank and restaurant have very different parking needs during the course of the day.  As the bank is closing its doors around 4pm (and on weekends), a restaurant is just getting started.  The restaurant might only need half the spaces on-site while still meeting parking requirements by sharing parking with the bank.  Those savings get passed onto the customer or invested in the business itself.

No minimum parking – pushing the parking requirements issue even further is the idea of no minimum parking.  If you’re a free market advocate, there is no more appropriate solution to parking then letting the market decide.  By requiring parking, one can easily argue that cities put an artificial force on the markets.  Developers would be incentivized to figure out exactly how much parking they needed to satisfy customers.

Parking maximums – parking maximum also allows a developer or owner to determine their own parking needs up to a set amount.  Maximums can also be employed to correct for an artificial force imposed by the lending community on developers.  Many downtowns throughout the country have no parking requirements for new projects.  However, the lending community imposes minimums because of a reflexive understanding of parking as necessary for the viability of a project.  This intervention can be argued to be uninformed or unjustly imposed as it is unlikely the lending community has any experience in estimating the appropriate demand for parking on a specific project.

PILOP (payment in-lieu of parking) – this is a relatively new proposal but the idea is straightforward.  A developer or building owner pays the city a fee per parking space not included in the project.  The fees collected could be used to build public parking garages as an alternative to meeting minimum parking requirements.  The solution would also complement shared parking practices.

Remote Parking – In many cases a community already has remote parking garages that need to be better promoted either through subsidies, shuttle service, or simple marketing.  In other applications, the construction of remote parking garages is necessary.  Cost can be supported by taxes, developer fees or event PILOPs.  Santa Monica’s 3rd Street Promenade has been a lasting success that is supported by six structure garages on parallel streets (of course, Santa Monica also benefits from other enduring regional attractors including a vintage amusement park boardwalk pier and a fantastic beach).  Of note, its retail success has driven out independent stores for national chains to the chagrin of most locals. New Orleans has flirted with remote garages including one on Rampart Street at the edge of the French Quarter, but never fully implemented the strategy (vestigial surface lots remain on the downriver edge at Elysian Fields) that would encourage a “park-once” strategy for visitors driving to its historic center.

For more details on these and other concepts, the Victoria Transport Policy Institute will satisfy any policy wonks needs here.

In part II, we’ll shift to strategies that are focused on managing the demand for parking.

Contributed by:

Dwight Norton, Senior Analyst, Planning

dwightnorton@tmg-consulting.net  or (504)569-9239 x 24

–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on December 30, 2011  •  Permalink
Posted in Environmental, Transportation, Uncategorized, Urban Planning
Tagged , , , , , , , , , , , , ,

Posted by tmgconsulting on December 30, 2011

http://tmgconsulting.wordpress.com/2011/12/30/tackling-parking-alternatives-to-building-more/

The Outlook for Asian Gaming

Attention has been given to the rise of Asia’s booming gaming market in recent years, with some analysts even projecting it to surpass all other regional gaming markets before the decade’s end.  The success of Macau and Singapore has inspired other parts of Asia to either enhance their existing gaming industry to a world-class standard or to establish their own destination gaming markets.

The Philippines and Vietnam, both countries with existing gaming facilities, have passed legislation to support a destination resort casino market.  South Korea may follow their lead.  In other parts of Asia without Las Vegas-style games, such as Japan and Taiwan, things have been heating up with legislators and other constituents seriously considering gaming’s benefits.

Asia’s gaming fever mirrors that of the United States.  In recent years, several states in the U.S. implemented gaming legislation or expanded existing games.  Some U.S. gaming markets could even be described as saturated.  In the Mid-Atlantic region for example, gaming facilities in Delaware, Pennsylvania, New Jersey, New York, West Virginia and Maryland are in heavy competition for the same regional patrons and tourists.  Delaware and Pennsylvania added table games to their facilities, at least partially pressured by a congesting regional market.

The key difference between the pervasion of gaming throughout Asia and the United States is demand.  According to Credit-Suisse’s Global Wealth Report 2011 there are about 949.7 million people living throughout North, Central, and South America.  Throughout the entire Asia-Pacific region (includes China and India) there about 4.25 billion people.  The population of the Americas is not even a quarter of the population of the Asia-Pacific region.  Trying to imagine how much gaming product it would take to saturate the Asia-Pacific region is staggering.

A huge driver behind the success of Macau and Singapore’s gaming markets has been Chinese tourism.  Chinese policy changes opened up its outbound tourism market and greatly increased the proportion of Chinese visitors to all visitors in several regional markets.  Singapore for example, drew about 5.6% of its total visitors in 2000 from China.  In 2010, Chinese visitors to Singapore represented about 10.3% of all visitors to the country.

Asian gaming markets have another thing going their way—Asia is becoming wealthier.  Based on projections made by Credit-Suisse and detailed in their World Wealth Report 2011, wealth in the Asia-Pacific region (including China and India) is increasing at a greater rate than the world’s two wealthiest regions (Northern America and Europe) and the world’s average.  As the average wealth of individuals increases throughout the Asia-Pacific region, more and more people will have the means to indulge in leisure activities and travel—increasing regional demand for destination resort casinos.

With such trends in wealth, tourism, and population it is little wonder that destination gaming has been such a success in Asia in recent times.  It is also no surprise that many other Asian countries want in on the action, and that they are not trying to follow the ‘Las Vegas Model,’ but either the ‘Singapore’ or ‘Macau Model.’

Contributed by:

Nicholas Farrae

Analyst, Economics and Gaming

nicholasfarrae@tmg-consulting.net  or (504) 569-9239 x 31

–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on December 20, 2011  •  Permalink
Posted in Gaming
Tagged , , , , , , , , , , , , ,

Posted by tmgconsulting on December 20, 2011

http://tmgconsulting.wordpress.com/2011/12/20/the-outlook-for-asian-gaming/

Closing Time

By requiring closing times for bars, Fat City’s redevelopment plan charted new waters – new for the New Orleans area, anyway.  Twenty-four hour bar service is not easy to find once you head west on I-12.    But even for New Orleanians, there is no constitutional right to belly up to an open bar all night long.

“Fat City” – whose heyday as a popular entertainment district has long passed – is a mixed use area that was developed in the 60s as the suburb’s answer to the French Quarter.   A redevelopment plan seeking to revitalize this area includes new zoning regulations that tackle signs, give strip clubs two years to shut their doors, and guides a main street type development for new projects.  And most controversially, bars must close by midnight except for Friday and Saturday, when they must close by 1 a.m.

Proponents and opponents alike were shocked by the introduction of such a measure.  Drastic change, no matter what kind, may be difficult for a community to accept, even when the rest of the country is following different rules.  Bar owners filed suit in federal court and argued, among other issues, that the ordinance was an unconstitutional taking of their property.

Courts have upheld ordinances that create some adverse economic effect that promote the general welfare.   As for Fat City, the United States 5th Circuit found that the ordinance aimed to promote the health, safety, welfare of the community by shutting down bars during the hours most closely associated with dangerously high amounts of intoxication, drunk driving, and violent crimes.   The Court was willing to accept any adverse economic effect on the bar owners and noted that they were still able to operate bars and other businesses.

Contributed by:

Tiffany Peperone Pitre

tiffanypeperone@tmg-consuting.net  or  504.569.9239 x 30

–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on December 9, 2011  •  Permalink
Posted in Gaming, Uncategorized, Urban Planning
Tagged , , , , , , , , , , ,

Posted by tmgconsulting on December 9, 2011

http://tmgconsulting.wordpress.com/2011/12/09/closing-time/

Shaping Cities: The Power of Parking

Ever since people owned automobiles, they’ve needed a place to park them.  To accommodate the rapid rise vehicle ownership that started in the 1940’s, the instinctual solution of city planners was to require parking in new developments.  Over time this became codified through newly adopted use of zoning ordinances.  Zoning also introduced the first significant effort of communities to regulate the location of businesses by generally separating activities into residential, commercial and industrial zones.  The effect was to reinforce the need for more parking as daily needs became located further and further away from homes.  What was once a short walk down to the local market or school now required an automobile just to pick-up a loaf of bread.

These reinforcing forces, of car ownership and land-use regulation through zoning, dramatically reshaped cities.  Impacts of the need for parking on the development of cities are strikingly visible when comparing the neighborhoods of a city developed before the 1940s versus the neighborhoods that developed afterward.

In suburban communities, where land was/is cheaper, developers could lay down more pavement to cheaply meet parking requirements, whether for a shopping center or office building.  As a result, free parking was expected and readily provided.  The result has been ever increasing spread, or sprawl, in total amount of space required for suburban living.

In older neighborhoods, often called streetcar suburbs, parking can be difficult because they were designed for people to access their jobs and other regional attractors, such as stadiums, parks and theaters, by public transit.  Daily needs, such as food, schools, and shops, were provided by ‘main street’ like commercial nodes within or adjacent to the neighborhood.  With the removal of streetcar lines, these neighborhoods are now often crowded, unable to meet the demand for parking with limited supply.

In city centers that retained relatively strong economies, garages were eventually built to ensure drivers had a place to house their vehicles, but a great cost (today they average $15,000 – $30,000 per space).  In downtowns that struggled, many buildings were economically more valuable as tear downs to be replaced by surface parking lots, further eroding the vibrancy and attractiveness of these areas.

So what does providing all this parking really cost us?  This question was fully examined by Prof. Donald Shoup in his landmark book, “The High Cost of Free Parking”.  Here’s the short version:  more traffic, higher land costs, higher development project costs, more emissions, and marginalization of people who do not drive – whether restricted by age, health, or income.

In downtown or main streets the cost is usually direct.  Parking meters were introduced about the same time vehicle ownership took off in the 1940’s as an attempt to manage demand.  Parking management is typically a combination of parking meters for curb parking and lots or garages.  Parking lots and garages often come with heavy prices, particularly for companies.  As parking is now considered an employee benefit, business often have to absorb very costly monthly parking contracts into their overhead.

For decades, cities have charged less per hour for curb parking than for off-street parking. The incentives encourage drivers to seek out cheaper curb parking even though there is a limited supply.  The result during busy times is that customers and residents have difficulty finding a space close to their destination when they need it.  So, businesses suffer from the lack of available convenient parking, and drivers create added traffic as they circulate, or cruise, the surrounding streets.

Additional costs, particularly in suburban environments, are more difficult to quantify, but persist.  For young, elderly and low-income segments of the population, the inability to drive in an auto-dependent community dramatically affects their mobility, leaving them dependent on others or an oft-inadequate public transit system.  For active drivers, significant quantity of time is thus spent in the car, or even looking for parking at popular designations, such as the mall.

In summary, demand for parking has reshaped our cities, and often at a costs that we do not readily recognize.  In my next post, I’ll look at what cities are trying to do to manage these costs and mitigate the impacts of parking demand.

Contributed by: Dwight Norton, Senior Analyst, Planning

dwightnorton@tmg-consulting.net

–

Disclaimer
The views, interpretations, or strategies expressed are those of the authors, and do not necessarily reflect the position of TMG Consulting. This site is meant for educational purposes only and does not constitute professional advice. TMG Consulting makes no representation as to accuracy, completeness, or suitability of any information on this site and will not be liable for damages arising from its display or use.

Leave a Comment
by tmgconsulting on November 30, 2011  •  Permalink
Posted in Transportation, Uncategorized, Urban Planning
Tagged , , , , , , , , ,

Posted by tmgconsulting on November 30, 2011

http://tmgconsulting.wordpress.com/2011/11/30/shaping-cities-the-power-of-parking/

« Older Posts
Follow

Get every new post delivered to your Inbox.