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

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 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.

TMG Assists Baton Rouge Transit System as it Prepares for Big Change

In need of additional resources, the Baton Rouge Capital Area Transit System (CATS) turned to the voters of East Baton Rouge Parish to establish the agency’s first dedicated source of revenue.  Following an extensive outreach campaign that included a coalition of business, faith-based and other organizations, the Baton Rouge community in April 2012 approved a property tax measure which effectively doubled the agency’s budget in order to implement a number of significant improvements to service.  This ballot success was a big win for the future of transit in the Capital and an exceptional event for transit nationwide, representative of a larger trend of new attitudes toward transportation.

In late 2012, CATS retained TMG Consulting to analyze the current state and progress of the organization as it was preparing to implement its growth plans and to make recommendations on what management structure would best meet the agencies goals through transition.  TMG researched data from CATS and other relevant transit agencies of current and future size.  Using gap analysis, TMG was able to estimate what resources and staff capacity the organization was likely to need to meet its future goals.  After vetting a number of management alternatives that ranged from all in-house to fully contracted, or delegated, management, TMG recommended that CATS augment staff by contracting out selected management positions, an arrangement similar to transit agencies in El Paso, TX and Lexington, KY.  TMG also prepared a number of other recommendations, from the pace of introducing new service to technology investment, to enable the agency to stay on track to deliver its ballot goals and bring CATS to the next level.

The CATS Board and staff is currently reviewing TMG’s recommendations as it prepares for what will undoubtedly be a bright new future for transit in Baton Rouge.

Contributed by:

Dwight Norton, AICP

Senior Analyst, Planning

dwightnorton@tmg-consulting.net  

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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.

Superbowl 2013: New Orleans Welcomes Visitors with Improved and Modernized Airport

On January 15, 2013 New Orleans Mayor Mitch Landrieu hosted the official opening of Louis Armstrong New Orleans International Airport’s Terminal Interior and Exterior Improvements Airport Modernization Program.  This capital program, comprising more than $300 million of infrastructure improvements, was begun before the impact of Hurricane Katrina and successfully completed ahead of a make-or-break event for the city and the region: Super Bowl XLVII at the Mercedes-Benz Super Dome on February 2.

“An expected 42,000 visitors to the city will be greeted and hosted in world-class style with Armstrong’s newly renovated terminal and concourse spaces, windows and lighting, fully reconstructed restrooms throughout the terminal, together with new information displays, baggage claim and security checkpoint upgrades, a new walk-to-rent consolidated rental car facility, rental car service centers and six new gates in a renovated and expanded Concourse D. The Jerome S. Glazer Access Road has just been renovated for a smooth ride direct to Interstate 10.  After their visit, on the way home, there are new landmark local gift and dining venues such as the Saints store and Dooky Chase’s – more than $6 million of improved concessions offerings.  What the visitors won’t see is just as important: a new airfield fire station, rehabilitated airfield pavement and lighting controls, a $30 million state-of-the-art security system and emergency operations center and security fencing.

As significant as all of these improvements are for the visitors, they are lasting investments made for the long term benefit of the community here in South East Louisiana.  And they were all done without taxpayer dollars, with user fees and self-generated airport funds.

TMG Consulting has been assisting the New Orleans Aviation Board in realizing their plans for more than twenty years.  We have been able to advise Armstrong on planning, programing and funding their capital investments.  And we’ve been able to help build our hometown while doing it.  We’re proud of our efforts and those of our partners at Armstrong and throughout the local consultant community.  We’re continuing in our service and excited by the future.  As satisfying as the Airport Modernization Program is, we believe the best is yet to come…

Contributed by:

Ross F. Chapman

Principal

rfc@tmg-consulting.net  

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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.

Jan Garbers Joins European Civil Protection Congress

This September, TMG’s Jan Garbers was invited to the 8th European Civil Protection Congress.

The European Civil Protection Congress is an international platform informing the national, European and international Experts and decision-makers of disaster management, civil protection and relief organizations about the latest developments in the field.

The congress intends to strengthen the dialogue between public authorities, associations, universities and experts. The annual conference attracts 800-1,000 participants from more than 20 nations.  This platform presents latest political decisions, enables networks and extents cooperation. Among the participants are the Federal Office of Civil Protection and Disaster Assistance and the Federal Agency of Technical Relief advising the organizers content wise.

The close bonds with the European Commission and other relief organizations allow the participants to fortify and to enhance relations to other experts. 2011 the conference was supported by the European Commission and the United Nations. The European Civil Protection Congress is a set date in the agenda of national and international decision- makers.

The European Civil Protection Congress briefly:

  • International platform for the leadership levels of disaster management and civil protection,
  • High-ranking technical reports from Ministries of the Interior and the European Commission,
  • Meeting point for political decision-makers and disaster managers,
  • Conference program presents international very important persons of Politics, Administration and Disaster management,
  • Up to ten specialized Panel Sessions,
  • Accompanying exhibition of the prominent manufacturers of system solutions,

The European Civil Protection Congress is an annual conference that takes place in Bonn, Germany in September each year.