Consider New Orleans

Extraordinary Opportunities for Creative Media & Design Companies

Introduction
New Orleans’ Story / In Three Parts

1 Before Katrina
•Positives: A beautiful city with a culture unlike any in the U.S.
•Negatives: Insular, sleepy, neglected

2
Katrina and its immediate aftermath
•Positives: Opportunity to address old issues and progress
•Negatives: Significant infrastructural damage, false impressions of city

3 Since Katrina
•New investment
•Heightened sense of purpose
•Unprecedented level of civic and business engagement
•New political leadership that puts economic development as a top priority

INTRODUCTION CONSIDER NEW ORLEANS 3

Business Leaders
Wanted
We seek astute business leaders
in creative media and design to launch,
expand, and re-locate to Greater New Orleans.

Specific focus on:

•Software and video gaming design
•Film, TV, and music production
•Advertising and marketing
•Graphic design
•Architecture, industrial, and interior design

INTRODUCTION CONSIDER NEW ORLEANS 4

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Why New Orleans?
•Exceptional and rare incentive packages
•Inexpensive cost of doing business with hard dollar
savings
•Low cost of living
•Creative class workforce eager to be part of the
area’s renaissance
•Burgeoning Creative Media & Design presence
•Noteworthy lifestyle and local culture
•Dynamic entrepreneurial community
•Highly motivated state and local government

“ A recovery economy, strong financial

institutions, strong exports, and solid

”
assets are the reason why New Orleans
among best cities to ride out recession
Business Week

INTRODUCTION CONSIDER NEW ORLEANS 5

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Benefits
Powerful Incentives
A first-class package of more than a
dozen incentives for hiring, building,
and investing in New Orleans includes:

•Payroll rebates
•Tax credits on labor, infrastructure
development, production, and investment
•Property tax exemptions
•Grants for new facility construction
•Workforce training

BENEFITS CONSIDER NEW ORLEANS 7

Tax Incentives Summary
Incentive
Quality Jobs Program
Motion Picture Industry Development
Tax Credit
Music/Sound Recording Tax Credit
Digital Media Tax Credit
Louisiana R&D Tax Credit Program
Louisiana Technology Commercialization
Credit and Jobs Program
Angel Investor Tax Credit Program
Description
6% cash rebate on payroll
25% for motion picture production
10% on labor
40% for infrastructure development
25% for sound recording and infrastructure
development
20% for digital media companies, such as videogame
developers
8-20% on wages, supplies, computer expenses and
contract research expenses
40% of an investment of up to $250K in
commercialization costs
6% on new jobs created
Investors receive state income tax credits of up to 50%
of their investment in a certified business
BENEFITS CONSIDER NEW ORLEANS 8
Low Cost of Doing Business
Wages
New!Orleans! New!York Los!Angeles San!Francisco Austin
Photographers $25,730 $43,090 $51,730 $55,100 $31,340
Software Engineer/Developers $77,050 $ 92,520 $92,770 $100,050 $92,340
Computer Programmers $56,170 $ 80,390 $75,200 $81,490 $72,880
Graphic Designers $37,780 $56,090 $53,370 $60,070 $45,050
Software Testers/Analysts $64,320 $88,290 $77,110 $90,000 $72,820
Business Management Analysts $72,660 $93,350 $81,950 $98,310 $59,260
Office Managers $40,090 $55,680 51,690 $56,360 $50,500

Computer System Project Managers $83,940 $139,510 $120,830 $137,440 $123,730

Source: US Bureau of Labor Statistics, May 2007

Office space
•Full-service downtown Class A space ranges from $17.50 - $21.00 per sq. ft., with current occupancy at
about 90.5%
•Suburban Class A rates average $23 to $24 per sq. ft, with about 92.5% leased

Source: NAI Latter & Blum 10/3/08

BENEFITS CONSIDER NEW ORLEANS 9

Hard Dollar Savings
Example of a $5 million creative design company with 100 employees moving
from San Francisco to New Orleans.

New Orleans San Francisco

Revenues $5 million $5 million

Salaries $460,000 $970,000

Office space* $440,000 $660,000

Other expenses $2.1 million $2.3 million

Incentives $600,000 $0

Profit $2,600,000 $1,070,000

*Assumes!220!sq.!ft.!per employee!@!office!space!costs!from!previous!page!

BENEFITS CONSIDER NEW ORLEANS 10

 Low Cost of Living
The cost of living in the Greater New Orleans region is lower than that of most
U.S. cities, a major benefit that attracts and retains creative and
entrepreneurial professionals.

(U.S. = 100) Overall Groceries Housing Utilities Transportation Healthcare Misc.

New Orleans* 99.6 108.5 98.3 89.9 99.8 96.4 100.3

New York 212.8 158.1 396.1 152.0 122.5 128.4 139.4

San 168.5 139.5 275.2 87.8 123.1 123.5 135.0

Francisco
San Jose 154.2 143.8 251.5 99.0 113.1 122.7 111.3

*Actually!refers!to!the!cost!of!living!for!the!City!of!Slidell,!a!suburb!of!the!New!Orleans!Metro!Region!
Source:!ACCRA!COST!OF!LIVING!INDEX!Feb!2008

BENEFITS CONSIDER NEW ORLEANS 11

Diverse Housing Options
Greater New Orleans provides a diverse range of neighborhood and housing
options including converted warehouse lofts, historic Victorian homes, and
easily commutable suburbia.

•Median housing prices are among the lowest in the U.S.

- Rental rates in the region average $.97 per square foot, and range from $860 to $1,150, with
the highest rates in the Historic Center of New Orleans
- Average 2007 single family home price in Greater New Orleans was $207,0391
•Relatively little of the New Orleans region is prone to flooding; 94% is above sea level

1 Source: New Orleans Metropolitan Association of Realtors

BENEFITS CONSIDER NEW ORLEANS 12

Energized Population
Greater New Orleans has regained 91% of its pre-Katrina total population.1 Thousands
of locals, transplants, and returnees view New Orleans as a rare opportunity to
reinvent a culturally significant city from the ground up.

“ New Orleans [is] a start-up laboratory; entrepreneurs

”
are finding fertile ground for new ventures they think
will help bring the devastated city back to life.
Business Week 8/27/07

“ For every one person moving out of the region after

”
the storm, there are two young professionals
between the ages of 25-42 moving in.
Arthur Sterbcow, President, Latter and Blum

“ A “brain gain” of 2,000 – 3,000 young professional

newcomers to New Orleans has arrived since the storm.
Center for Bioenvironmental Research at Tulane University
”
1 Source: US Census Bureau, ESRI

BENEFITS CONSIDER NEW ORLEANS 13

Motivated Talent Pool
Colleges
•Tulane University (10,519 students)
- 2007 applications for enrollment have almost
tripled since pre-Katrina
•University of New Orleans (11,363 students)
- Received $49 million Navy grant, with 20 local
partner companies, to develop software and
products in fields such as engineering,
computer science and electronics
•Loyola University New Orleans (4,360 students)
- Largest Catholic university in southern U.S.
•Xavier University of Louisiana (3,088 students)
- Nation’s only historically black Catholic college
- First in the nation in placing African American
students in medical schools
•Southern University – New Orleans (2,468 students)
- Historically black college where enrollment grew over
17% in 2008

BENEFITS CONSIDER NEW ORLEANS 14

Lifestyle & Culture
Lifestyle & Culture
Has the lifestyle and culture assets that
attracts and sustains creative and
entrepreneurial professionals. A city of
walking neighborhoods of the kind Jane
Jacobs wrote about. Rated the best city in
America for single professionals by Forbes
Magazine in 2007.

Cosmopolitan, energetic 24-hour vibe

• Rated America’s #1 city in 2008 for live music
and bands, destination restaurants, ethnic food
and cheap eats by CNN/Travel + Leisure; rated
#2 for late night and club scenes
• Museums include New Orleans Museum of Art,
National D-Day Museum, Museum of Southern
Art, Louisiana Children’s Museum,
Contemporary Art Center
• Prospect 1, the largest biennial of international
contemporary art ever organized in the U.S.
opened in November 2008
LIFESTYLE & CULTURE CONSIDER NEW ORLEANS 16
Lifestyle & Culture
National and international music festivals
•New Orleans Jazz & Heritage Festival
•Voodoo Experience
•French Quarter Festival
•Essence Festival

Architecture and historic districts

•French Quarter: charming Old World courtyards
and townhouses
•Garden District: beautiful historic homes and
Victorian mansions
•Warehouse/Arts District: art galleries, fine
restaurants, and world-class museums

Parks
•Audubon Park: beautiful oak trees, tranquil
lagoons, and expansive green space
•City Park: wide variety of natural attractions,
sports, and recreational activities
•Jean Lafitte National Historic Park: preserves rich
natural and cultural resources of Louisiana’s
Mississippi Delta region
LIFESTYLE & CULTURE CONSIDER NEW ORLEANS 17
Lifestyle & Culture
Professional Sports
•New Orleans Saints (NFL)
•New Orleans Hornets (NBA)
•New Orleans Zephyrs (Minor League Baseball)

Low traffic congestion

•Ranked 35th out of the nation’s 39 largest metro areas

Weather
•Four distinct seasons: football, Mardi Gras, Jazz Fest
and summer
•Short, mild winters
•Average year-round temperature is 70.5 degrees

1 Source: 2007 Urban Mobility Report

LIFESTYLE & CULTURE CONSIDER NEW ORLEANS 18
Leadership
Entrepreneurial Leadership
Grassroots organizations are directing efforts at the entrepreneurial class

•Idea Village: Non-profit dedicated to promoting innovation and entrepreneurship in the New Orleans
region, as well as fostering the development of young professionals
• Greater New Orleans, Inc: Public/private partnership formed in January 2004 to spearhead
economic development for the ten-parish Greater New Orleans region
• Startup New Orleans: Local technology entrepreneurs
• Young Urban Rebuilding Professionals: Network to connect, retain and attract young
professionals from diverse backgrounds for a sustainable New Orleans
•504ward: Business networking group for young talent
•Social Entrepreneurs of New Orleans: Networking and resources for entrepreneurs addressing
social problems
•GNO Digital Media Alliance: Aggressively develops the digital and new media industries of
the Greater New Orleans region while promoting a strong culture of innovation and
entrepreneurship

LEADERSHIP CONSIDER NEW ORLEANS 20

Government Stake
New level of energy and professionalism in state and local government means more
motivated and available leaders, and better coordinated efforts.

Bobby Jindal, Governor

•Rhodes Scholar
•Youngest current governor in the United States

Stephen Moret, Secretary of Louisiana Economic Development

•Youngest Secretary of Economic Development in Louisiana’s history
•Private sector background; former McKinsey consultant

Michael Hecht, President and CEO of GNO, Inc.

•Former member of Bloomberg administration in New York City
•Stanford MBA with history as successful entrepreneur

LEADERSHIP CONSIDER NEW ORLEANS 21

Bragging Rights
Film & Music
Film and TV producers
•Louisiana ranks third in total film production per
capita behind only California and New York
•56 film, TV and video projects with budgets over
$300K shot in New Orleans and Louisiana in 2007;
will almost double in 2008
•Disney’s top-rated kids show, Imagination Movers,
started production in 2007
•State of the art production facilities

Quality recording studios and concert halls

•Music Shed Recording Studio
•Nims Center Studios
•Orpheum Theater

BRAGGING
BRAGGINGRIGHTS
RIGHTSCONSIDER
CONSIDERNEW
NEWORLEANS
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Digital Media & Entertainment
Successful digital media and e-commerce startups
•Trumpet Group: digital advertising and design agency specializing in startups,
launches, and turnarounds (received 2008 MAX Award)
•TurboSquid: world’s largest digital marketplace for 3D stock models (received City
Business’ 2006 Innovator of the Year Gold Award)
•The Receivables Exchange: world’s first online marketplace for companies to buy
and sell accounts receivable (received Louisiana Technology Council’s 2007 Award for
Technology Transfer Company of the Year)
•iSeatz: creates customized travel and entertainment booking engines (selected by Inc.
Magazine as one of the fastest-growing, private, American companies in 2008)
•Mudbug Media: specializes in web design and custom web programming (named 2008
“Best Website Developer” by Where Y’At Magazine)

Entertainment businesses
•Putumayo World Music: a pioneer in world music, opened office in 2007
•Horizon Entertainment: a TV and film production company, relocated from Atlanta
in mid 2008

BRAGGING RIGHTS CONSIDER NEW ORLEANS 24

About Greater New Orleans Inc.
About Greater
New Orleans Inc.
The regional economic development hub
serving to coordinate, consolidate, and catalyze
economic development initiatives.

Mission
Our mission is to serve as the regional catalyst for
wealth creation. We are pursuing an aggressive
agenda of business and workforce development,
advocacy, research and communications, in
collaboration with the public and private sector.

Vision
Our vision is for New Orleans’ 10-parish region to
fulfill its potential as one of the best places in the
country to grow both a company and a family.

ABOUT GNO, INC. CONSIDER NEW ORLEANS 26

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Board Officers
William A. Oliver
Chairman of the Board
AT&T Louisiana

Michael Hecht
President and CEO
GNO, Inc.

Martin A. Mayer
Chairman -Elect
Stirling Properties, Inc.

James M. Hudson
Secretary/Treasurer
OMNI BANK

Patrick J. Quinlan
Immediate Past Chairman
Ochsner Health System

ABOUT GNO, INC. CONSIDER NEW ORLEANS 27

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Contacts
Michael Hecht
President and CEO
504-527-6907
mhecht@gnoinc.org

Andrea Bland
Senior Vice President, Business Development
504-527-6996
abland@gnoinc.org

ABOUT GNO, INC. CONSIDER NEW ORLEANS 28

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