City of New Orleans Changes Parking Fees and Hours

Finding a parking spot in a dense downtown area is a challenge. In a rainstorm, in a hurry, already late… Often it seems to come down to luck. But maybe the chance of finding a spot can be improved.

Urban planners have studied how parking impacts neighborhoods and communities. And cities have worked to implement solutions. The City of New Orleans recently announced it will be increasing rates for surface parking and expanding times when parkers need to pay for parking in high demand areas.

parking studyWhile a primary goal is to increase city revenue, research in parking behavior indicates that another benefit of increasing parking fees is to increase the parking turnover. Essentially, as parking on the street becomes more expensive, drivers limit their time in any space, and increase parking availability for a finite number of on-street spaces. Additionally, long term parkers adjust their behavior and park further away making closer parking spaces available more frequently for the short-term parker.

Recently, in 2012, TMG prepared a study of best practices for the Urban Land Institute and hosted a forum featuring Professor Donald Schoup of UCLA on how dynamic pricing for on-street parking can increase turnover and improve space availability. In Shoup’s model, parking spaces in high demand have a higher price than parking spaces in low demand and prices adjust throughout the day to reflect the demand. The goal of the Shoup model is to increase turnover in high demand areas/time to ensure that there are always 1-2 parking spaces open at any given time. While higher prices for parking may sound like a bummer for drivers and businesses, Shoup argues it can improve the experience for everyone and help reduce carbon emissions at the same time.
(more…)

Smoking Ban at Harrah’s New Orleans

City Ordinance Allows for Study of Policy Impact to Gaming Market

On April 22, 2015, a city-wide smoking ban went into effect in New Orleans. Despite protest from its ownership, the ban applies to Louisiana’s only land-based casino, Harrah’s New Orleans Hotel and Casino. Harrah’s, joined by other New Orleans’ businesses, is suing to have the ordinance removed on the basis that they expect to lose significant revenues. This loss, they allege, will consequently hurt local tax revenue collections and potentially cost local jobs as well.

HarrahsGaming facilities are usually reluctant to go smoke-free. When approached by anti-smoking advocates, these facilities indicate they would lose substantial revenues if they shunned smokers. Typically these facilities offer smoking and non-smoking areas to accommodate both types of visitors.

In the Gulf South, only Florida has a state-wide ban on indoor smoking which includes its gaming establishments. However, Florida’s smoking ban does not apply to Native American gaming facilities because these facilities are on sovereign land. Alabama only has Native American casinos, therefore smoking is permitted in all gaming facilities throughout the state. There is no casino-smoking ban in Mississippi; however, one of its many casinos, the Palace Casino, voluntarily went smoke-free.

In Louisiana, there is no statewide smoking ban at gaming facilities. Harrah’s New Orleans competes in a local market which encompasses the New Orleans metro-area, with one racino and two riverboat casinos. However, the recently enacted smoking-ban only affects facilities within Orleans Parish (i.e., Harrah’s and the Churchill Downs’ Fair Grounds Racecourse and Slots). The two riverboat casinos technically operate outside of Orleans Parish, and are thus allowed to operate without prohibiting smoking.

(more…)

TMG Partnership Wins Competitive Contract from Zachary Taylor Parkway Commission

TMG Consulting is proud to announce that the firm has been hired by the Zachary Taylor Parkway (ZTP) Commission to assist in updating the Commission’s Master Plan! TMG will serve as a sub-consultant to N-Y Associates, the prime firm on the contract. Urban Systems will also serve as a sub-consultant. The contract was awarded via a competitive public RFP (Request for Proposals) process, with the TMG team selected from over a half-dozen respondents!

ZTP 2As part of a comprehensive Master Plan Update for the Parkway, TMG’s primary responsibilities include gathering data on economic shifts, creating an economic development plan, developing a marketing and communications strategy, and conducting stakeholder and public outreach. N-Y Associates will create a Parkway “vision document,” gather data on demographic and policy shifts, and develop a Disaster Preparedness Plan, while also coordinating the drafting of the final report. Urban Systems will supply traffic and safety analysis to create a Corridor Management Plan. TMG is thrilled to serve the ZTP Commission with such capable partners.

The Zachary Taylor Parkway is a scenic highway that stretches from Alexandria, Louisiana to Poplarville, Mississippi, traversing eight Louisiana Parishes and one Mississippi County. Traveling through it, motorists encounter a diverse mix of small towns, scenic countryside, homegrown businesses, thriving agricultural areas, historic tourist attractions, and magnificent plantations. The team is confident that the Master Plan Update will provide a roadmap for the renewal and growth of this historic corridor.

Congratulations to the entire team, and stay tuned for updates on this exciting project!

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

More on TMG’s Award-Winning Market Assessment for Shreveport Common Cultural District

For the announcement of TMG’s 2015 State Planning Award of Excellence for a Process for the Shreveport Common Market Assessment, click here.

A devastating fire engulfed the Shreveport Regional Arts Council’s (SRAC) headquarters on August 25, 2009, and propelled the vision for a new arts and cultural district in downtown Shreveport. Few would have thought the senseless act of arson would have spurred the revitalization of a once-great neighborhood. A historic, vacant downtown fire station was identified to serve as SRAC’s new headquarters for the artist community, newly named “Central ARTSTATION.”

SC 1After this renovation was completed, the next challenge was to revitalize the surrounding underused nine block area. The Shreveport Common Vision Plan was formed from a nine-month grass-roots, community-involved effort.

Led by SRAC and a team of architects and planners, an advisory board was assembled to include local area leaders, (downtown business partners, the city, and parish) neighbors, developers, artists, bankers and those in the investment community. Door-to-door listening sessions were held with neighbors and property owners; the artist community was surveyed; and numerous community-wide events were held where input was obtained from artists, area residents, and those living across the greater Shreveport area. (more…)

TMG Wins State Planning Award!

Shreeveport-Common-Team

TMG’s Eric Melancon (far left) and Suzanne Leckert (far right) accept the 2015 Process award with the team.

On January 22, 2015, TMG Consulting and the Downtown Development Authority (DDA) of Shreveport, Louisiana were awarded the American Planning Association – Louisiana Chapter 2015 State Planning Award of Excellence for a Process. The award was given for TMG’s market assessment of the Shreveport Common Arts and Cultural District.

The study was spearheaded and funded by the DDA and the Downtown Shreveport Development Corporation (DSDC). TMG Consulting analyzed the market potential for retail, commercial, and residential development (both market rate and artist housing).  Projections of the potential utilization, necessary units and square footage, occupancy rates, and rental revenues for the retail/commercial and residential developments were detailed in the study document. The team’s report has been instrumental in discussions with potential developers, investors, and the banking community about opportunities in Shreveport Common.

SC-Logo-Cropped

“It was remarkable to see all the data put into an analysis that gave easily understandable meaning to the opportunities available in Shreveport Common. We’re glad to have had the partnership of TMG Consulting in this project,” says Liz Swaine, Executive Director of the DDA/DSDC.

This award-winning project was led by Suzanne Leckert, Director of Feasibility & Land Use, with significant contributions from TMG’s Eric Melancon, Nilsa Duran, Tiffany Pitre, and Rachael Bauer.  At the 2015 Louisiana APA Conference held in Baton Rouge, Suzanne and Eric presented the study to a packed house of planners, government officials, and local leaders.

Read an Overview and Executive Summary of the award-winning market assessment here. For TMG’s full list of client offerings, visit our Products page. Congratulations to our partners and the entire TMG team!

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.

TMG Increases Engagement for DBEs and SBEs at Airport Event

On July 30th, 2014, TMG Consulting organized the 9th Annual Business Opportunities Workshop for the Baton Rouge Metropolitan Airport. This year featured a small business trade show, where small and disadvantaged businesses, along with resources agencies, tabled to showcase their talents. Attendance at this event topped over 120 small and disadvantaged business, prime contractors, resource agencies, and airport staff! The purpose of the Business Opportunities Workshop is multi-faceted:

  • to educate firms about the Airport’s Disadvantaged Enterprise (DBE) program and Small Business Enterprise (SBE) program;
  • to inform attendees about upcoming work opportunities at the Airport;
  • to facilitate networking among prime and potential subcontractor firms in order to create connections now, learn what businesses have to offer and prepare a qualified team when the next Baton Rouge Airport bid is released.
  • and to provide resources to help small businesses grow.

Small businesses are an integral aspect of the Baton Rouge Airport’s long-term vision and the airport has a history of actively engaging the DBE and small business communities on Airport contracts. The Airport DBE Program is mandated by the federal government under FAA grant assurances and aims to ensure that government grant funds are distributed equitably.

TMG Consulting has assisted the Baton Rouge Airport to draft and administer both DBE and SBE programs and regularly sets DBE project goals, conducts compliance reviews of bid, and monitors ongoing DBE participation on projects. Events such as these are hosted to help communicate the wide range of opportunities at an Airport for businesses and to demystify the DBE program for all contractors.

 

Contributed by:

Bonnie Garrigan
Manager of Economic Analysis
bonniegarrigan@tmg-consulting.net or 504.569.9239 ext.29

—–

 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.

 

 

Airport Strategy – Invest in Assets that Reduce Costs

Most public agencies are dependent on revenues from taxes or fees, with constant pressure to deliver service for the minimum absolutely necessary.  While airports are usually self-supporting and funded with rents and fees, there is always pressure to economize.

A simple example is relocating concessions from before a security check point to after.  Because of Transportation Security Administration restrictions, concessions revenue at locations before security check points have fallen dramatically since 2002.  Most airports have now readjusted and reallocated concessions to post-security locations.

Armstrong Airport in New Orleans is seeking to reinvent itself with a much larger concept, to create a facility that reduces its costs by increasing revenues and limiting the burden on its rate payers, the commercial air carriers leasing terminal space.  By re-configuring concessions and right-sizing its new terminal, Armstrong seeks to reduce its operating costs while increasing sales, thus producing more revenue with a public asset and delivering the same or better service, i.e. more flights to more places, with the same cost.

Contributed by:

Ross Chapman
Principal
rfc@tmg-consulting.net or 504.569.9239

—–

 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.

Current and Future Economic Impacts of Louis Armstrong New Orleans International Airport

TMG Consulting has been commissioned to update the economic impact analysis for the Louis Armstrong New Orleans International Airport. Our team will work in partnership with Timothy Ryan, Ph.D., distinguished local economist and former Chancellor of the University of New Orleans who conducted the previous economic impact analysis that was completed in 2004.

TMG will utilize the latest available data on expenditures, payroll, and recurring capital investments related to the Airport to determine the Airport’s annual impact on jobs, spending, and tax generation in the region. For this analysis, we will utilize the Regional Input Output Multiplier System (RIMS II) published by the Bureau of Economic Analysis in order to estimate the impact for the New Orleans Metropolitan Statistical Area.

In addition, TMG and Dr. Ryan will also develop a projection of the future economic impact of the new terminal on the North side of the current MSY site announced by Mayor Mitch Landrieu in January 2014 that is scheduled to open in 2018, in time for New Orleans’ tri-centennial celebration.

Portions of the current airport terminal have far exceeded their useful life and have been adapted and repurposed over the years in order to accommodate changes in the aviation industry and TSA security requirements.

Aging Infrastructure of the Current MSY Terminal

Half of the current terminal is over 40 years old (and in some cases, 50 years old.) Source: Crescent City Aviation Team – Long Term Infrastructure Development Plan (April 2013)

Half of the current terminal is over 40 years old (and in some cases, 50 years old.)
Source: Crescent City Aviation Team – Long Term Infrastructure Development Plan (April 2013)

The new terminal will feature a modernized design and increased functionality over the current MSY terminal, with consolidated security checkpoints that will allow passengers to access all concourses after security screenings. Combined access to all concourses is expected to increase the number of concessionaires that are willing to operate at MSY and generate additional revenue for concessionaires due to increased exposure to passenger demand.

Moving the terminal to the North will also allow for repurposing of existing Airport properties on the South side of the MSY site. Reuse of the existing south side properties will also result in additional jobs, earnings, and output for the regional economy.

Proposed Repurposing of South Side MSY Properties

Redevelopment plans have yet to be finalize, but the most recent concepts include additional General Aviation (GA) and Fixed Based Operator (FBO) hangars and facilities, long term parking, mixed use and office buildings, as well as space for air cargo expansion. Source: Jones Lang LaSalle, Louis Armstrong New Orleans International Airport Land use and Development Services for Long Term Airport Development (January 2014)

Redevelopment plans have yet to be finalize, but the most recent concepts include additional General Aviation (GA) and Fixed Based Operator (FBO) hangars and facilities, long term parking, mixed use and office buildings, as well as space for air cargo expansion.
Source: Jones Lang LaSalle, Louis Armstrong New Orleans International Airport Land use and Development Services for Long Term Airport Development (January 2014)

In a previous study for the Airport in March 2013, TMG projected that the one-time impact of building the proposed new terminal on the North side along with redevelopment on the South side would result in over 13,000 new construction related jobs for the region.

Conceptual Design for the New MSY Terminal

Source: City of New Orleans (January 2014)

Source: City of New Orleans (January 2014)

We anticipate that the combined impact of all these changes and redevelopment efforts will bring more jobs, more spending, and more tax revenues for the Greater New Orleans Area. Greater economic impact will lead to greater opportunities for local businesses and additional resources for local governments in the region.

Contributed by:

Eric Melancon
Associate
ericmelancon@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.

iGaming Goes Live in Three States

Since our last entry on iGaming, Nevada, New Jersey, and Delaware have become the first states with (legal) live online gaming websites within their boundaries.

In 2011, the U.S. Justice Department reversed its ruling on internet gambling. Today, legal internet gaming is gradually rolling out across the U.S. How much revenue iGaming will generate and exactly how smoothly iGaming websites will operate remains unseen.[1]

Nevada

Nevada became the first state in the U.S. to operate legal iGaming.[2] Currently, only online poker is allowed in Nevada, and the Nevada Gaming Commission has no plans to expand beyond this in the foreseeable future.[3] Two websites, UltimatePoker.com and W888.com hold licenses in the state with the express purpose for online gaming, launching their websites in April 2013 and September 2013 respectively.[4] The websites are only allowed to be accessed by players physically within the state of Nevada. Participants are subjected to an extensive identity verification screening that ensures that that they are of gambling age.

But how much is Nevada making off of this new source of revenue? Nevada’s gaming commission has indicated it will only report iGaming revenues in a separate category of monthly reporting once there are three online poker sites operating in the state.[5] With just two websites up and running, there are no official reports of online poker revenue to date.[6]

Chapter 463 of Nevada Revised Statue[7], not only authorizes iGaming within the state, but positions Nevada for interstate gaming, allowing Nevada to negotiate online gaming agreements with other states.[8]

Delaware

Delaware passed legislation on June 27th, 2012 authorizing online gaming within the state. In October 2013, Delaware rolled out the first “real money stakes” internet gambling games to selected users, and in November 2013, online gambling was made widely available to Delaware residents[9]. Users physically in Delaware are able to play not only online poker, but also blackjack, roulette, and slot games.[10] While online gaming is not expected to generate much improvements in tax revenue, the expectation is that younger gamers will be drawn to Delaware’s brick-and-mortar casinos.[11] After launching online gaming, gamers in Delaware who tried to play poker experienced connectivity issues due to location-based software issues.[12]

New Jersey

New Jersey became the third state to offer iGaming on November 26, 2013, after the New Jersey Division of Gaming Enforcement green-lighted six casinos licensed to operate statewide internet gaming. The six casinos approved are the Borgata Hotel Casino & Spa, the Tropicana Casino and Resort, Trump Plaza Hotel and Casino, the Trump Taj Mahal Casino Resort, Bally’s Atlantic City, and Caesars Atlantic City.[13] Registered gamers who are physically within the state of New Jersey can play blackjack, slots, and poker online.[14]

As of early December 2013, Atlantic City’s casinos are struggling with their verification systems. The general manager at the Tropicana Atlantic City, Steve Callender, said “about 75 percent of people who have tried to play on the resort’s online gaming website — TropicanaCasino.com — have been denied because the system could not verify they were in New Jersey.” This is due primarily to three reasons: technical problems, users not physically present in New Jersey trying to access these sites, and some major banks, PayPal, and American Express having policy to not process online gaming transactions.[15] According to Moody’s, iGaming in New Jersey stands to generate $250 million to $500 million within its first year.[16] Being an early mover in iGaming, New Jersey hopes to gain an edge over casinos in nearby states, such as Pennsylvania, that have caused Atlantic City’s land-based operations to struggle in recent years.

What’s Next?

According to the National Conference of State Legislatures, six states are working to authorize iGaming within their borders. California, Illinois, and Pennsylvania each have iGaming resolutions pending within the state legislative bodies. Colorado, Hawaii, Iowa, and Mississippi had iGaming laws which failed to pass in 2013.[17] With three states already conducting iGaming operations, it’s only a matter of time before the first interstate online poker games make their debut.

Contributed by:

Nicholas Farrae

Senior 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.

[1] “So What is New Jersey’s Online Gambling Market Really Worth?” OP Report. Web. Online Poker Report. 23 April 2013.

[2] “Know When to Fold.” The Economist. Web. The Economist Newspaper Limited. 14 Sep. 2013.

[3] “Nevada Examines iGaming Changes.” Casino Connection AC. Web. Casino Connection Atlantic City. 31 Oct. 2013.

[4] “Nevada Poker Sites.” US Poker.com. Web. USPoker.com 2013

[5] “Poker Revenues Rise in June.” Las Vegas Review-Journal. Web. Stephens Media LLC. 2 Aug. 2013.

[6] “Nevada and New Jersey Jockey for Online Gambling Revenue.” The Pew Charitable Trusts. Web. The Pew Charitable Trusts. 11 Feb. 2013.

[7] “Chapter 463—Licensing and Control of Gaming.” State of Nevada. Web. State of Nevada. 2013.

[8] “In Nevada, Online Gambling Poised to go Interstate.” Marketplace Business. Web. American Public Media. 22 Feb. 2013.

[9] “Caesars, Partner 888 to Launch Online Poker in Nevada.” Reuters. Thomsonreuters.com. 17 Sep. 2013

[10] “Delaware Ups Ante with Online Gambling.” Delaware Online. Web. Gannett. 31 Oct. 2013.

[11] “Online Gambling to be Allowed in Delaware.” NPR. Web. NPR. 4 Nov. 2013.

[12] “Delaware Internet Gambling Facing IP Issues, Lack of Poker Traffic.” Pocket Fives. Web. PocketFives.com. 10 Nov. 2013.

[13] “Atlantic City, NJ – NJ OKs Statewide Internet Gambling For 6 Casinos.” Vos Iz Neias. Web. VINNews.com. 25 Nov. 2013.

[14] “Christie Signs Bill Legalizing Online Gambling.” Philly.com. Web. Philly.com. 2 Feb. 2013.

[15] “Online Gambling Issues persist into Second Week of Web Betting on N.J.” New Jersery On-Line LLC. Web. Advance Digital. 5 Dec. 2013.

[16] “Online Gambling is Good for New Jersey’s Credit Rating.” The Washington Post. Web. The Washington Post. 2 Dec. 2013.

[17] “2012 Legislation Regarding Internet Gambling or Lotteries.” National Conference of State Legislatures. Web. National Conference of State Legislatures. 7 Feb. 2013

Impact of Sequester: Economic Impact Estimates will Become Less Reliable and More Expensive to Produce

The Bureau of Economic Analysis (BEA) is planning to make significant program cuts as a result of the Budget Control Act of 2011 and the Sequester of funding. One such program that is in danger of being cut is the Regional Input-Output Modeling System (referred to as RIMS II).

RIMS II has served as a critical tool used for economic analysis for decades. It is used to describe how changes in economic activity (spending) impact jobs, earnings and additional spending in a specific region. It is the basis for projecting changes in jobs, earnings, and tax revenues, resulting from projects such as major hotel and casino developments, airport construction efforts, chemical plants expansions, as well as the jobs and spending created by major events such as the Super Bowl or the Final Four NCAA National Basketball Championship.

Since the 1970s, BEA has collected and processed economic data in order to generate RIMS II and offer it to the public on a cost-recovery basis. RIMS II is a commonly used tool by universities, public agencies, and private business alike.

The BEA has announced that effective immediately, the RIMS product will no longer be updated. Furthermore, effective September 30, 2013, all current versions and historical RIMS products will no longer be available for purchase.

On June 19th, the BEA released the following statement about the production RIMS II:

“BEA will eliminate its RIMS II product, which currently generates products on demand as events warrant. The RIMS II program will continue to accept and process orders, which are fulfilled on a cost-recovery basis, through the end of the fiscal year. BEA will not build and develop the data needed to update the data set and fulfill orders in future years.”

The BEA intends to discontinue RIMS II by September 30 of this year and estimates that cutting the program will save $1.4 million. This represents only 0.00016% of the Department of Commerce’s total budget of $9 billion in FY13, yet it will gravely impact the ability of  public agencies and private businesses to demonstrate how projects and initiatives can benefit the general public.

RIMS as a Share of Commerce Department Budget

RIMS II will not be easily replaced by a private sector solution, since most of these alternatives have historically relied upon the BEA and RIMS II in their own development. Without the collection and reporting of the data from BEA, these private sector alternatives will no longer be based on the independent and verifiable information. These potential private sector alternatives are also substantially more expensive than RIMS II, which was produced on a cost-recovery basis by the federal government.

TMG Consulting has reached out to our federally elected leadership and have urged them to support any efforts that would allow the reinstatement of the RIMS II program within the BEA budget. TMG would also ask that any other parties that rely upon the RIMS II program do the same.

Contributed by: Eric Melancon & Bonnie Garrigan

Eric Melancon is an Associate for TMG Consulting who specializes in evaluating economic impacts of major developments and events. Bonnie Garrigan is the Manager of Economic Analysis for TMG Consulting. 

ericmelancon@tmg-consulting.net 

bonniegarrigan@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.