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Working Paper 4Programming Appendices

BioDistrict New Orleans

September 2010



01 02

Appendix A

Real Estate

Programming

Appendix B

Biosciences

Programming

Section:

Table of Contents

03

Appendix C

Educational

Institutions and

Hospital Facility

Programming

2 September 2010Working Paper 4 Table of Contents



3

Acknowledgement

The AECOM team would like to acknowledge

the GNOBEDD Board and staff for their input and

engagement during this Task. This report has also

been developed in coordination with the entire

AECOM team. The team includes: EDAW / AECOM,

AECOM Economics, AECOM Transportation, BrightMoments, Cannon Design, CBRE, Chester Engineers

and The Ehrhardt Group. Special thanks also to GCR

Consulting, whose data supported the development the

programming summary.

Important Note:

This document contains the appendices for Task 4

(Programming) completed as part the BioDistrict Planning

project. The summary for Task 4 is found in Working

Paper 4 (Phase 1 Overview), which is posted on the

BioDistrict New Orleans website:

www.biodistrictneworleans.org.



Appendix A:Real Estate

Programming



303 E Wacker Dr . , Su i t e 600

Chi cago, I L 60601

312 . 373 . 7558 www. aecom. com

Project Report

Real Estate Programming for the

BioDistrict in New Orleans

Prepared for

AECOM Design + Planning

Submitted by

Economics at AECOM,

An AECOM Technical Services, Inc Company

(AECOM)

September 2010

Economics Project No. 18438



Table of Contents

I. Introduction and Executive Summary .................................................................................... 3 Summary Estimates .................................................................................................................... 3

II. BioDistrict Demographics ....................................................................................................... 7 Member Institutions .................................................................................................................... 9

III. Case Studies ........................................................................................................................... 11 Illinois Medical District (IMD) – Chicago, IL .............................................................................. 12 Memphis Medical Center – Memphis, TN ................................................................................. 14 University of Alabama at Birmingham Medical Center District – Birmingham, AL..................... 16 Summary Tables ....................................................................................................................... 18

IV. Retail........................................................................................................................................ 20 V. Residential .............................................................................................................................. 26 VI. Long-Term Stay Facilities and Meeting Space .................................................................... 29 VII. Office and Medical Office Space ........................................................................................... 34 VIII.

Phasing and Target Locations .............................................................................................. 36

IX. Incentive Options ................................................................................................................... 38

Federal Incentive Options ......................................................................................................... 38 Historic Tax Credits .................................................................................................................. 38 New Markets Tax Credits ......................................................................................................... 38 State Incentive Options ............................................................................................................. 39 Local Incentive Options ............................................................................................................ 42

X. General & Limiting Conditions .............................................................................................. 44



Table of TablesTable 1: Population Change for BioDistrict ........................................................................................ 7 Table 2: Population and Households for BioDistrict ........................................................................... 7 Table 3: Population Projections ......................................................................................................... 8 Table 4: Employment, Hospital Beds, and Patient Visits for the BioDistrict ....................................... 8 Table 5: New Orleans Health Care Employment ............................................................................... 9 Table 6: Case Study Population and Households ............................................................................ 18 Table 7: Case Study Employment, Hospital Beds, and Patient Visits .............................................. 18 Table 8: Convenience and Food & Beverage Expenditure for the BioDistrict .................................. 20 Table 9: Office Worker Stats - Daily Retail ....................................................................................... 21 Table 10: Convenience Goods Office Worker Retail ........................................................................ 22 Table 11: Office Worker Stats - Daily F&B ....................................................................................... 22 Table 12: Office Worker Lunch Habits Detailed ............................................................................... 23 Table 13: Retail Space Compared to Employment and Households ............................................... 23 Table 14: Initial Retail Program (5-Years) - Net Demand ................................................................. 24 Table 15: Retail Sq. Ft. - Increments by Period ............................................................................... 24 Table 16: Summary of Current and Future Rental Units in BioDistrict ............................................. 26 Table 17: Comparison of Employment Levels to District Households .............................................. 27 Table 18: Initial Residential Program (5-Years) - New Demand ....................................................... 28 Table 19: Residential Units. - Increments by Period ........................................................................ 28 Table 20: New Orleans Hotel Occupancy ........................................................................................ 29 Table 21: Existing BioDistrict Long Term Stay Facilities .................................................................. 29 Table 22: Patients Visiting BioDistrict Hospitals from Outside New Orleans .................................... 29 Table 23: Long Term Stay Facilities in Surrounding Area ................................................................ 30 Table 24: Medical Long Term Stay Facilities Case Studies ............................................................. 31 Table 25: Comparison of Long-Term Stay Capacity ........................................................................ 31 Table 26: Initial Long Term Stay Program (5-Years) - Net Demand ................................................ 32 Table 27: BioDistrict and New Orleans Meeting Space .................................................................... 32 Table 28: BioDistrict Office Space ................................................................................................... 34 Table 29: Case Study Office Space ................................................................................................. 34 Table 30: Comparison of Medical Office Space Capacity ................................................................ 35 Table 31: Office, R&D, and Manufacturing - Increments by Period .................................................. 35



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I. Introduction and Executive Summary

Economics at AECOM (formerly ERA) was retained to assist the master planning project team

being led by AECOM Design + Planning in development of the ancillary real estate program for the

proposed BioDistrict in New Orleans. Over the course of this analysis, AECOM reviewed information

on the local market provided by GCR, incorporated analysis from CBRE regarding office,

manufacturing, research, and development space, developed a series of case studies of other

comparable medical districts, and relied on AECOM project experience with comparable projects

elsewhere. The combination of this data, information, and experience resulted in the program

estimates reviewed in this analysis and summarized in this introduction and executive summary of

findings.

Figures developed by GCR and Associates indicate a potential BioDistrict institution-related full

time and part time employment in the order of 17,000+ at full development, with an additional medical,

R&D, and medical manufacturing potential of nearly 5,000 full time jobs. Thus the direct potential

employment in the BioDistrict is estimated to exceed 22,000 full and part time jobs, before indirect,

induced, and construction economic impacts are taken into consideration. The significant increase in

employment as well as ancillary employment related to the core institutional functions create an

opportunity for additional market-driven real estate program throughout the area. Economics at

AECOM was tasked with evaluating the potential for added retail, residential, long term say, and other

commercial or office development. As well, when comparing the BioDistrict to comparable districts

elsewhere, given the level of employment and activity the BioDistrict is underdeveloped with respect to

amenities and spinoff development, indicating opportunity for added economic development andsupportive real estate uses.

Summary Estimates

As the integrated program table on the following page indicates market-driven and institutional

development in the BioDistrict over the course of the 20-year planning period is estimated to be in

excess of 13 million sq. ft. Most of this development, nearly 7 million sq. ft., is anticipated within the

next 5-years. Given the significant level of development potential there is likely opportunity for

supportive, coordinated action with respect to major transportation, infrastructure, and overall

development activity.



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Integrated Development Program – 20 Years

Increments - Square Feet

5-Year 10-Year 20-Year

Market Based Program

Residential 1,280,000 418,000 418,000Retail 100,000 55,000 -

Med. Office, R&D, Mfct. 175,000 625,000 800,000

Long Term Stay 55,000 - -

Meeting Facility 10,000 - -

The Building Block 190,000 - -

Institutional Program(s) VA Sites Research Building 152,000 - -

Res., Rehab & Trans. Lvng. 504,000 - -

Medical Facilities 1,182,000 - -

Hospital Infrastructure 201,000 - -

UMC Sites Medical Facilities 1,559,000 1,718,000 -

Hospital Infrastructure - - -

Other LSU Health Sciences Research Building - 200,000 -

Faculty Practice/MOB - 120,000 -

Academic Building 82,000 - -

Student Housing - - -

Hotel & Conference - 320,000 -

Other Tulane Health Sciences Research Building 250,000 330,000 -

Medical Facilities - - 300,000

Academic Building* - - 270,000

Student Housing* - - 350,000

Hotel - - 300,000

Ochsner - - -

Xavier Academic Building* 500,000 28,000 -

Student Housing 450,000 - -

Delgado Academic Building 65,000 - 150,000

Other Parking VA Parking Garage 2,000 cars - -

UMC Parking Garage 1,400 cars 1,400 cars -

Xavier Parking Garage 500-2,000

cars - -

Total Dev. Sq. Ft. (ex. parking) 6,755,000 3,814,000 2,588,000

Cumulative Dev. Sq. Ft. (ex. parking) 6,755,000 10,569,000 13,157,000

*Note: Includes some parking sq. ft.Source: AECOM, Cannon Design, CBRE



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Net retail demand on the site is estimated to come primarily from area residents and employees of

the major institutions nearby. AECOM estimates for a mix comprised mainly of convenience retail and

services, and out-of-home (non-grocery) food and beverage offerings. Specialty and destination retail

do not fit well with the proposed set of uses and functions for the site area and are an explicit target for

other areas of the city, most notably down Canal Street and towards the river. For convenience retail,

we envision offerings that are a combination of retail (personal care, drugstore, reading materials, etc.)

and convenience services (dry cleaning, daycare, etc.). Food and beverage offerings are expected to

skew towards lunch offerings such as quickserve and lower cost sit down options (fast food, deli/

grocery, etc.). After the BioDistrict household count grows, additional offerings similar to these as well

as a grocery store may be possible. While it may be possible to grow the quantity of retail beyond this

initial program in the future, this would likely require more significant, neighborhood-oriented anchor

tenants such as grocery, fitness center, or other big box concepts.

AECOM estimates for over 1,200 residential units in the BioDistrict over the next 5 years and morethan 2,000 at full buildout, mostly rental. The preponderance of these units are anticipated to come

from new employees for the major institutions in the BioDistrict, with a small number of households

from other residential growth in the BioDistrict projected by GCR. After the initial 5 year time period

when the area has been more fully developed and more services are available, AECOM estimates that

some number of the site employees may opt to live in owner occupied housing nearby their place of

employment. This proportion is estimated to be in the 2%-3% range, equating to an additional

potential of roughly 500 – 700 additional owner occupied units in the BioDistrict. For the purposes of

this analysis AECOM distributes these units over years 5 to 20. Given the large number of proposed

but undeveloped residential projects in and around the site area, it is unclear at this time how many of

these units would need to be in new, as yet un-proposed developments. Nevertheless this does

provide a range of the order of magnitude of residential offerings related to the redevelopment of the

BioDistrict.

In comparing the BioDistrict to other medical districts with long term stay offerings the BioDistrict

falls within range of comparable development elsewhere – which makes it unclear that there is a

pressing need for new facility space. However, as noted in this analysis, the type of offering currently

available through the Clarion Inn and Suites (the only current long term stay offering in the BioDistrict)

does not fit with comparable offerings related to medical districts. Overall, AECOM finds that between

90 and 120 units could be supportable in the BioDistrict given the level of expected visits from out of

the area which is consistent with the case studies indicating an average of 110 units per comparable

development in medical related long term stay facilities.

AECOM’s experience elsewhere with similar medical districts indicates that most conferences and

related spaces for medical districts are needed for meetings of 150 to 300 attendees on average;

however, some conferences of 500 to 600 attendees could be possible if the space were higher in



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quality and larger than that which currently exists. Using a planning factor of capacity for 400 persons

per meeting, ratios of 15 sq. ft.per person for the core banquet and divisible meeting space, as well as

1.5 to 2 times this figure for additional breakout and supportable meeting space, this would imply

potential for 9,000 to 12,000 sq. ft.of contiguous space in the BioDistrict. AECOM would not

recommend a facility larger than this at the current time given the notable capacity of other hotels in

the market as well as the sizable convention center.

Medical districts with a stronger focus on servicing the local populations typically have fewer

opportunities for research and development, education programs, incubators, and specialty care and

are less likely to require greater capacity for office, medical office, and related manufacturing,

research, and development space. As the case studies in this analysis suggest, a successful

combination of these elements could significantly grow the amount of space demanded for medical

districts – up to 10 times that experienced in smaller medical districts and the range currently

experienced in the BioDistrict. To understand the additional range of potential new square footagerelated to planned and future medical related operations CBRE provided the project team with

estimates based on their experience with similar developments elsewhere. The total potential of net

new demand related to the BioDistrict and not solely for the purposes of local health care service could

be in the order of 1.6 million sq. ft. Some portion this net new demand could likely be accommodated

in existing and unoccupied buildings or spaces.



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II. BioDistrict Demographics

The BioDistrict in New Orleans is located near the Central Business District (CBD) and the French

Quarter, and extends out towards Carrollton Avenue. This area has a population of 12,707 (excluding

correctional facilities) and a total of 4,667 households with an average household size of 2.33 persons.

Table 1: Population Change for BioDistrict

2005 2006 2007 2008 2009 2010

BioDistrict 18,791 5,806 8,804 11,062 14,266 16,050

Population in Prison 6,000 2,512 2,512 2,512 3,343 3,343

Residential Population 12,791 3,294 6,292 8,550 10,923 12,707Source: GCR & Associates

While the population of the BioDistrict has returned to 85% of its pre-Katrina level, the present-day

population is situated in a housing type that differs substantially from the pre-Katrina housing stock ofthe area. Whereas most pre-storm residents were situated in small 1-4 unit residential structures,

many current residents live within large multifamily structures that have been erected in the past two to

three years.

It is generally a low-income community, with a median household income of $25,327. This is less

than half the national median household income ($52,029), and $12,000 less than the New Orleans

median household income ($37,751). The New Orleans division between owner-occupied and renter-

occupied housing was approximately 50% for each according to the U.S. Census in 2008, however

within the BioDistrict, the distinction is skewed heavily towards renter-occupied housing, which makes

up 80% of all occupied units. The breakdown of the demographic data is outlined in the following

table.

Table 2: Population and Households for BioDistrict

BioDistrict

Population 12,707Persons in Group Quarters (excluding correctional facilities) 1,864Households 4,667Average Household Size 2.33Median Household Income $25,327Per Capita Income $16,209Housing

Owner Occupied 20%

Renter Occupied 80%

Source: Census Bureau and GCR & Associates

Population projections were calculated for the BioDistrict by GCR to help predict growth and the

future market. Projections are always both a science and an art, and with the turbulent recent history

in the city it is difficult to accurately determine exactly how the population will change moving forward.

There is greater accuracy in projecting shorter timelines, so for the purposes of this report and the



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BioDistrict Plan, a projection out until 2015 was used. Essentially, the population is projected to stay

relatively flat for the next five years, with estimates in the range of 15,900 to 16,721. The table below

compares BioDistrict population projections for 2015 with the projections for the city of New Orleans as

a whole.

Table 3: Population Projections

2015

Area Moderate High

BioDistrictPopulation 15,900 16,721

Households 4,623 4,872New Orleans

Population 379,379 399,386

Households 147,618 155,403

Sources: Prepared by GCR

Because the BioDistrict Plan is focused on regenerating the job market – particularly with respect

to the biosciences industry - it is critical to understand the current employment landscape, and how the

major facilities in the BioDistrict project future employment. The projected future employment for the

major facilities for which data was available, and after the UMC (University Medical Center) and VA

hospitals are constructed, are given in the following table.

Table 4: Employment, Hospital Beds, and Patient Visits for the BioDistrict

BioDistrict

Employment

Major Facilities and Institutions 17,000 - 18,000Private R&D, Medical Office, and Manufacturing 4,000 - 5,000

Total Employment 21,000 - 23,000

Hospital Beds and University StudentsTotal Students 7,600Hospital Beds 1,000

Patient VisitsOutpatient 1,000,000

Inpatient 75,000

Source: GCR interviews

*Notes:

1) Figures are rounded2) Total employment figures include full 20-year buildout3) Figures do not include ancillary employment outside of major institutions (i.e. business suppliers that may co-locate)4) Some figures from non-medical institutional employment are not available or included (ex. future, non-medical academic programs)

The current health care industry employees in the region are 57,360, as outlined below. While the

best indicator of the true value this number likely understates the actual figure as a number of

jurisdictions do not meet the BLS’ standard for disclosure. For example, Jefferson Parish, with two

publicly owned hospitals is noted as “ND” meaning not disclosed. These are relatively high-paying jobs



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in an industry which is estimated to have a low unemployment rate locally. Net new employment

directly for institutions in the district alone is estimated to account for an increase in the order of 10-

15% for these high paying jobs in the region.

Table 5: New Orleans Health Care Employment

Industry New Orleans MSA Employment

Health Care & Social Assistance 56,696Testing Laboratories 538

Physical, Engineering, and Biological Research 107

Research and Development in Biotechnology 19

Total 57,360

Source: 2009 Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Member Institutions

The BioDistrict hosts many centers of employment; the following are the primary medical and civic

institutions for which data was provided:

Tulane University. All downtown Tulane operations, including the Tulane School of Public

Health and the Tulane Hospital;

Xavier University. A notable university in biological/life sciences and pre-medical education;

Louisiana State University Health Center. Central Business District employees;

City of New Orleans City Hall. Also included is the Criminal Justice Complex;

Union Passenger Terminal. Intermodal facility served by Amtrak and Greyhound Lines;

Future UMC Hospital. Planned for construction.

Future VA Hospital. Planned for construction.



Page 10



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III. Case Studies

In an effort to provide a more robust analysis of the potential programming for the BioDistrict,

AECOM used three case study medical districts of similar scale for comparative purposes. Within

each district, AECOM focused on data related to employment, beds, patient visits, retail, long-term

stay facilities, office space, and residential offerings as they related to the medical industry.



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Illinois Medical District (IMD) – Chicago, IL

The Illinois Medical District (IMD) is a 560-acre site on Chicago’s Near West Side, and is home to

over 40 medical, educational, and technological institutions. This section provides an overview of

information on demographics, major institutions, employment, and visitors.

Member Institutions

Although the IMD hosts over 40 member institutions, the following four are the primary medical

institutions:

John H. Stroger, Jr. Hospital of Cook County. The county operates Cook County Hospital,

a teaching facility with one of the busiest emergency services in the Midwest and nationally;

University of Illinois at Chicago. UIC’s Colleges of Medicine, Pharmacy, and Dentistry are

located in the District and UIC’s main campus is located just east of the IMD. UIC College of

Medicine is the largest medical school in the world;

Rush-Presbyterian-St. Luke’s Medical Center. The medical center is a private medical

research and educational hospital;

VA Chicago Healthcare System. This is one of the largest VA facilities in the nation.

The district’s other member institutions are a mix of public and private institutions, ranging from

private companies to professional associations. According to the IMD Commission, the IMD creates

50,000 direct and indirect jobs and upwards of $34 million in local taxes, making it an important

economic engine for the City of Chicago.



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Page 14

Memphis Medical Center – Memphis, TN

The Memphis Medical Center is the approximately 800-acre district located between downtown

and midtown Memphis, TN, and is home to many medical and biosciences research facilities. It is

located within walking distance of historic downtown Beale St., the state’s top tourist attraction.

Member Institutions

The main medical institutions that are included in this case study are:

St. Jude’s Children’s Research Hospital. One of the world’s premier pediatric cancer

research facilities;

Regional Medical Center at Memphis. “The Med” is a major regional healthcare provider

and one of the largest medical and surgical teaching hospitals for the University of Tennessee

Health Science Center;

VA Memphis Healthcare System. Services nearly 200,000 veterans living in a 53-county

area near Memphis;

Le Bonheur Children’s Medical Center. Teaching children’s hospital that is completing a

$340 million 610,000 square foot new hospital;

Methodist University Hospital. The largest and most comprehensive hospital in the

Methodist Healthcare System;

Memphis Mental Health Institute. A recently opened 103,000 square foot facility replaces

the original 1962 outdated building.

The Memphis Medical Center provides a good reference for the BIODISTRICT, as there is a

similarly coordinated effort by major stakeholders in the area to coordinate growth in the biosciences

industry in the area.



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Page 16

University of Alabama at Birmingham Medical Center District – Birmingham,

AL

The University of Alabama at Birmingham (UAB) Medical Center District is a 250-acre portion of

downtown Birmingham. The area directly to the southwest is home to the UAB campus, and the

Medical Center District it includes is largely made up of facilities directly related to the UAB Health

System.

Member Institutions

The main medical institutions that are included in this case study are:

UAB Hospital. A new 885,000 square foot, 11-story building opened in 2004. Houses a 900-

bed facility that is the centerpiece of the UAB Health System;

The Kirklin Clinic. Specially designed outpatient care center with more than 700 physicians; Callahan Eye Foundation Hospital. Opened in 1963 as an eye hospital to serve anyone

regardless of ability to pay. Offers an ophthalmology residency program that has trained over

200 ophthalmologists. Became part of the UAB Health System in 1997;

Cooper Green Mercy Hospital. County hospital which is run by Jefferson County Health

System. Recently underwent a $28 million extensive renovation;

Children’s. Teaching hospital affiliated with UAB School of Medicine, and the state’s only

Level I pediatric trauma center;

VA Birmingham Healthcare System. 313-bed tertiary care facility serving veterans in the VASoutheast Network.



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Summary Tables

Below is summary information relating demographics, employment, hospital beds, and patient

visits for the case studies. This data was leveraged along with current and projected BioDistrict data

to determine the potential size and scale of additional development. The following tables outline the

population information as well as the employment and hospital information.

Table 6: Case Study Population and Households

IMD Memphis UAB

Population 13,688 6,845 5,290Persons in Group Quarters 1,815 984 1,434

Households 4,947 3,637 2,425Average Household Size 2.40 1.61 1.59

Median HH Income $33,620 $12,606 $22,237Per Capita Income $19,571 $13,149 $17,107

HousingOwner Occupied 25% 7% 11%

Renter Occupied 75% 93% 89%

Source: ESRI 2009

Table 7: Case Study Employment, Hospital Beds, and Patient Visits

IMD Memphis UAB

Employment (Major Facilities)Full Time 18,726 11,417 13,904

Part Time n/a n/a n/a

Student Workers n/a n/a n/aTotal 18,726 11,417 13,904

Hospital Beds 1,831 1,375 1,921Patient Visits

Outpatient 2,166,747 869,942 2,053,247

Inpatient 81,935 55,831 64,281

Source: VA Website, Rush 2009 Annual Report, 2009 American Hospital Association,IMD Website, Memphis Business Journal 2010, ESRI, UAB Facts & Figures 2010,2009 American Hospital Association, VA Website

The BioDistrict has a population size more comparable to the IMD and larger than the Memphis

and Birmingham facilities. This is mainly due to the size of the BioDistrict with respect to the other

areas, as well as the amount of residential space within each. The UAB and Memphis districts are in

downtown areas with minimal residential space and a concentration of medical, retail, and other

facilities that attract daytime populations.

In terms of median household income, the BioDistrict falls in the middle to high-end of the sample

size. The Memphis Medical Center District is particularly low-income, at $12,606 median household

income. Also of note regarding households is the percentage of owner vs. renter occupied units.



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While similar to the IMD in Chicago, both UAB and Memphis skew heavily towards renter-occupied

housing, at 89% and 93% respectively.

This number of hospital beds – a metric that helps determine the size and scale of the hospitals in

the districts – is generally higher in the case study samples. There are nearly twice as many beds inthe IMD and UAB, and Memphis includes a proximate number of beds to these. The hospitals in these

case studies also handle nearly (Memphis) or greater than twice (UAB, IMD) the number of inpatients

than the BioDistrict is projected to accommodate. Again, this is not surprising given the greater

number of hospital beds to the BioDistrict. The number of outpatients in the samples varies as well,

from twice the amount projected in the BioDistrict (1,081,288) for the IMD and UAB, to 20% less for

Memphis (869,942). These numbers are highly dependent on the type of hospitals and facilities with

each district. The UAB, for example, is home to the Kirklin Clinic, a unique facility dedicated to

outpatient care with over 700 physicians.

These cases provide a variety of examples for comparative analysis for the BioDistrict and any

ancillary programming that will be a part of the BioDistrict plan.



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IV. Retail

This section focuses on the retail market within the BioDistrict, and what the possibilities are in

terms of expansion and development of certain types of retail to support the workers and households

within the District. In the following analysis, the comparison between the case studies reveals that

the BioDistrict has the lowest ratio of retail space to the projected number of employees and

households. Thus it is evident that there is likely an opportunity for increasing the retail space in the

BioDistrict.

Initially, AECOM determined the total current expenditure on convenience retail and food and

beverage within the BioDistrict based on median household income and the Bureau of Labor

Statistics’ (BLS) data on spending patterns. This calculation resulted in the base size and scale of

the market to be in the area of $70 million annually, as seen in the table below.

Given the mobility of retail spending AECOM also calculated the comparable level of spend in a

buffer area around the District and found it to be an additional $128 million in spending on similar

items, goods, and services. While much of this spending will likely gravitate to established retail

areas in Lakeview, Mid-City, Uptown, West Bank, and Metairie some portion of this spending could

be captured within the BioDistrict. Total spending for these two market areas is estimated at roughly

$200 million annually for convenience retail, food and beverage.

Table 8: Convenience and Food & Beverage Expenditure for the BioDistrict

BioDistrict BioDistrict ExpandedCategory Total % of Retail Total % of Retail

Food $53,483,224 76% $150,585847 76%

Food at Home $34,956,605 49% $98,422,824 49%

Food Away from Home $18,526,619 26% $52,163,023 26%

Alcohol $2,922,581 4% $8,228,735 4%Personal Products and Services $4,803,198 7% $13,523,747 7%Tobacco Products $3,977,251 6% $11,198,235 6%

Miscellaneous $5,591,024 8% $15,741,927 8%

Total $70,777,276 100% $199,278,491 100%

Source: BLS, U.S. Census, GCR & Associates Note: Based on Median HH Income for each Study Area

This market can be expected to grow as the population would expand as the BioDistrict plan is

implemented and repopulation continues throughout the area. Also, as the daytime population of

workers expands, there will also be an opportunity for the convenience retail market to grow.



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The offerings in the BioDistrict in terms of retail categories were also analyzed. When comparing

retail building total rentable building area (RBA), it became clear that when compared to other similar

medical districts, the BioDistrict has less available retail space. The next table outlines the retail datawithin the BioDistrict, while the subsequent table shows the case study comparison.

Pulling from the International Council of Shopping Center’s (ICSC) office spending patterns

survey, AECOM reviews here estimates of normal spending patterns by daytime employees. Of all

office and professional workers, the ICSC estimates that some 1.1 shopping trips are made per

employee every week on average. Of those employees who do shop during working days (62%) the

average number of trips per week is 2.7. Altogether, some 34 percent of all trips are made in areas

close to the place of work.

Table 9: Office Worker Stats - Daily Retail

Av. Weekly Retail Trips (of All Office Workers) 1.1Av. Weekly Retail Trips (of Shoppers) 2.7

Percentage of Workers Who Shop During Day 62%Percentage of Workers Who Shop Near Work 34%

Spend Estimates Per Worker

Av. Weekly Av. Annual

Shoppers Goods $55.80 $2,678Convenience Goods $40.10 $1,925

Total Retail $95.90 $4,603Source: Office Worker Retail Spending Patterns - International Council of Shopping Centers

The ICSC estimates that the weekly level of expenditures on all types of retail goods (excluding

F&B) is in the area of $95 per week on average. After adjusting for holidays and other factors, the

average annual spend for workers on retail items is estimated to be $4,600 on all items. Of this figure

a slightly higher amount is spent on “Shopping Goods”, defined by the survey as apparel, home

items, and non-convenience retail items. The average weekly spend for such goods is estimated to

be around $55, or $2,700 annually after accounting for normal working schedules. For “Convenience

Goods”, which the survey defines as newspapers, cosmetics, snacks, etc., the average weekly spend

is around $40, or roughly $1,900 annually after accounting for non-working days.

Given that the market under consideration already has a notable amount of destination retail and

this is a key focus in other areas of the downtown – most notable towards the river on Canal Street –

convenience goods are used for the purpose of estimating non F&B retail demand from employees in

the BioDistrict. Convenience Goods are those more closely related to personal care and necessary,

every-day items. Estimates for such goods are shown in the following table. The other and groceries

categories comprise the most significant proportion of these types of goods at 26, and 23 percent,



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respectively. Other important categories include snacks, candy, and soft drinks, and personal care/

drug store retail.

Table 10: Convenience Goods Office Worker Retail

Type of Good Percent Av. Weekly Spend Av. Annual Spend

Cosmetics 6% $2.33 $112Personal Care/ Drugstore 17% $6.99 $336

Newspapers & Magazines 8% $3.26 $157Groceries 23% $9.33 $448

Snacks, Candy, Soft Drinks 19% $7.69 $369Other 26% $10.49 $504

Total 100% $40.10 $1,925

Source: Office Worker Retail Spending Patterns - International Council of Shopping Centers Note: Itemized estimates based on weighted average of responses

Another key spending category for office and professional workers is spending on food and

beverage. Some 82 percent of office and professional workers average 2.9 weekly lunch trips, nearly

all of which are near the working place. Average weekly expenditures on lunch are estimated to be in

the order of $25 or just over $1,200 annually. Some 34 percent of office workers have dinner and/ or

drinks near the workplace after the working day. On average such an expenditure occurs once every

two weeks with an average weekly spend of roughly $13 total, or some roughly $620 annually. These

figures are shown in the following table.

Table 11: Office Worker Stats - Daily F&B

Percent Av. Weekly TripsLunch 82% 2.9

Percentage of Workers Who Lunch Near Work 92% -Dining/ Drinks 32% 0.6

Percentage of Workers Who Dine/ Drink Near Work 34% -

Spend Estimates Per Worker

Av. Weekly Av. Annual

Lunch $25.40 $1,219Dining/ Drinks $13.00 $624

Total F&B $38.40 $1,843Source: Office Worker Retail Spending Patterns - International Council of Shopping Centers

According to the ICSC survey data, around 25 percent of workers bring their own lunches from

home on average. Fast food and deli/ grocery lunch purchases during the day are some of the most

frequent lunch purchases, together accounting for almost 50 percent of lunchtime expenditures. Sit-

down lunches comprise almost 20 percent of lunchtime expenditures, and cafeteria and food court

expenditures are a modest proportion of estimated total lunchtime expenditures (together only an

estimated 7 percent of the total). All totaled, the average worker spends in the order of $1,200

annually on lunch, most of which is nearby their place of work.



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Table 12: Office Worker Lunch Habits Detailed

Type of Est. Percent Av. Weekly Spend Av. Annual Spend

Sit-Down 19% $4.71 $226Fast Food 19% $4.71 $226

Deli/ Grocery 27% $6.85 $329Cafeteria 3% $0.86 $41

Food Court 4% $1.00 $48From Home 24% $6.14 $294

Other 4% $1.14 $55

Total 100% $25.40 $1,219

Source: Office Worker Retail Spending Patterns - International Council of Shopping Centers Note: Itemized estimates based on weighted average of responses

According to data from CoStar – a national source for commercial real estate information – the

BioDistrict has almost half the amount of retail space when compared the IMD, the district with the

next highest amount of available square footage. Utilizing the CoStar data facilitated a comparison of

equivalent data across each of the medical districts. With the implementation of the BioDistrict plan,

there will likely be an influx of employees and households and the possibility for increasing retail

space in specific areas of the BioDistrict.

When compared to the expected level of employment in the BioDistrict, as well as the number of

households, it becomes even more apparent that there will likely be a need for growth in retail

offerings. The case study districts adequately support much greater ratios, in some cases upwards of

three times as high, as displayed in the table below.

Table 13: Retail Space Compared to Employment and Households

Retail/Employment Retail/Households

BioDistrict 108 390IMD 172 653

Memphis 571 1,236

UAB 469 2,690

Source: AECOM Note: Ratios based on Major Facility Employment

AECOM estimated potential near-term demand over the next 5 years primarily from the existing

BioDistrict and the eventual employees on the site, as well as some amount of potential demand fromthe buffer area surrounding the BioDistrict. The results and estimates are shown in the table that

follows. For out-years beyond the initial 5-year period, AECOM further considered expansion in the

population of the BioDistrict (largely from rental residential units for new employees), and expansion

in the population and household base for the area directly surrounding the BioDistrict. In addition, the

assumption was made that a grocery offering may be achievable in this out-year period.



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Table 14: Initial Retail Program (5-Years) - Net Demand

Spending BioDistrict Employees BioDistrict Buffer

Food at Home $34,956,605 $0 $63,466,219Food Away From Home $18,526,619 $35,017,000 $33,636,404

Convenience $17,294,053 $36,575,000 $31,398,591

Penetration BioDistrict Employees BioDistrict Buffer

Food at Home 0% 0% 0%

Food Away From Home 15% 35% 8%

Convenience 25% 30% 10%

Site Spending BioDistrict Employees BioDistrict Buffer

Food at Home $0 $0 $0

Food Away From Home $2,778,993 $12,255,950 $2,690,912

Convenience $4,323,513 $10,972,500 $3,139,859

Sales Per Sq. Ft. BioDistrict Employees BioDistrict Buffer

Food at Home $300 $300 $300

Food Away From Home $450 $450 $450

Convenience $300 $300 $300

Resulting Net Sq. Ft. BioDistrict Employees BioDistrict Buffer

Food at Home 0 0 0

Food Away From Home 6,176 27,235 5,980

Convenience 14,412 36,575 10,466

Source: AECOM

Summary estimates for the 5, 10, and 20 year increments are given below.

Table 15: Retail Sq. Ft. - Increments by Period


Food at Home 0 49,000 0

Food Away From Home 39,000 2,000 0

Convenience 61,000 4,000 0

Increment Total 100,000 55,000 0

Cumulative Total 100,000 155,000 155,000

Source: AECOM

New potential retail demand in the area is estimated to come primarily from area residents and

employees of the major institutions nearby. AECOM estimates for a mix comprised mainly from

convenience retail offerings and services and out-of-home (non-grocery) food and beverage offerings.

Specialty and destination retail do not fit well with the proposed set of uses and functions for the site



Page 25

area and are an explicit target for other areas of the city, most notably down Canal Street and

towards the river. For convenience retail we envision offerings which are a combination of retail

(personal care, drugstore, reading materials, etc.) and convenience services (dry cleaning, daycare,etc.). Food and beverage offerings are expected to skew towards lunch offerings such as quickserve

and lower-cost sit-down options (fast food, deli/ grocery, etc.). After the BioDistrict household count

grows, additional offerings similar to these as well as a grocery store may be possible. While it may

be possible to grow the quantity of retail beyond this initial program in the future, this would likely

require more significant, neighborhood-oriented anchor tenants such as grocery, fitness center, or

other big box concepts.



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V. Residential

The residential rental market in the BioDistrict and the nearby area shows current demand to be

high for newer units in multifamily buildings due to high occupancy rates and the premiums that the

rental facilities are charging. Within the BioDistrict, owner-occupied housing only represents 20% of

all households, thus the rental market dominates the residential landscape and would likely be the

focus of any new residential developments. This is typical of the other medial districts reviewed for

the purposes of this analysis as these types of employees often gravitate to housing nearby their

places of work.

The following table outlines the number of units that currently exist, are in pending developments,

and have been in pending development for several years as reported in a 2006 ERA/AECOM report

on New Orleans completed for the Unified New Orleans Plan District 1 – Downtown.

Table 16: Summary of Current and Future Rental Units in BioDistrict

Housing Type Area Units

Current Large Multi-Family RentalBioDistrict 906

Surrounding Area 1,692

Pending (Since 2006)BioDistrict 134


Pending (New)BioDistrict 212


TotalBioDistrict 1,252


Source: GCR Interviews, ERA Report 2006

There would be 5,587 total units that would be available within the BioDistrict if all of the pending

developments were to come online – which AECOM views as highly unlikely. These units would be

within the BioDistrict and the surrounding area (defined as the area between the district and the next

major thoroughfare on all sides). The high occupancy rates of upwards of 90%+ in the current large

and newer multi-family facilities suggest that the influx of new residents in the BioDistrict may capture

a notable portion of the rental market, and most likely justify additional development at some level –

either in the newly proposed developments or developments not yet proposed. There is some

skepticism that the turbulent development market in New Orleans will affect the completion of some

of the pending projects. In particular, around 1,700 units that are pending have been on the horizon

since 2006.

When comparing the ratio of employment to the number of households within other medical

districts in the following table, the BioDistrict compares favorably with the IMD and Memphis. UAB

has much higher employment with respect to the number of households, and could signify that there

are other local market residential patterns impacting demand for residential in that district. Because



Page 27

the ratio for the BioDistrict is based on the completion of the pending developments, there is a need

to expand the existing rental market by at least what is already in pending development. If these

projects do not come to fruition, there may be a lack of housing that would need to be filled by newdevelopment projects as part of the BioDistrict Plan.

Table 17: Comparison of Employment Levels to District Households

Employment/Households

BioDistrict 3IMD 3

Memphis 3

UAB 5


GCR and Associates provided detailed information on current residential offerings in a separate

report, and AECOM’s data is based on an aggregation of that data.

Forecast estimates provided by GCR show modest household growth in the BioDistrict into the

future, with most household growth in the buffer area surrounding the BioDistrict. This nearby

projected household growth is related primarily to the redevelopment of public housing into mixed-

income, affordable housing communities. Given the high propensity of medical district employees

seen in other similar districts to rent rather than own their own homes, the fact that such employees

gravitate towards their place of work, the performance of newer multifamily housing in the BioDistrict

showing robust pricing and occupancy levels, and increasing employment levels in the BioDistrict,

there is likely notable potential for residential offerings in the BioDistrict, particularly rental residential

in the near term. Estimates are shown in the table that follows.



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Table 18: Initial Residential Program (5-Years) - New Demand

Rental Ownership

District Employees 75% 25%

GNOBEDD Household Growth (2015) 75% 25% Units Demanded

District Employees 14,250 4,750

GNOBEDD Household Growth (2015) 75 25

Total 14,325 4,775

Penetration

District Employees 8% 0%

GNOBEDD Household Growth (2015) 100% 100%

BioDistrict Unit Demand

District Employees 1,140 0GNOBEDD Household Growth (2015) 75 25

Total 1,215 25

Source: AECOM

AECOM estimates for around 1,200 residential units in the BioDistrict over the next 5 years. The

preponderance of these units are anticipated to come from new employees for the major institutions

in the BioDistrict. After the initial 5-year time period when the area has been more fully developed

and more abundant community and neighborhood services are available, AECOM estimates that

some number of the site employees may opt to live in owner-occupied housing nearby their place of

employment. This proportion is estimated to be in the 2%-3% range, equating to an additional

potential of roughly 500 – 700 additional owner occupied units in the BioDistrict. For the purposes of

this analysis AECOM distributes these units over years 5 to 20. Given the large number of proposed

but undeveloped residential projects in and around the site area it is unclear at this time how many of

these units would need to be in new, as yet un-proposed developments. Nevertheless, this does

provide a range of the order of magnitude of residential development related to the redevelopment of

the BioDistrict.

Table 19: Residential Units. - Increments by Period

5-Year 10-Year 20-YearOwner Occupied 25 300 300

Rental 1,200 100 100

Increment Total 1,225 400 400

Cumulative Total 1,225 1,625 2,025Source: AECOM Note: Numbers may not add due to rounding



Page 30

these patients stay in the area overnight, there could be a new market for long-term stay facilities.

This is especially true if they are inpatients or are receiving longer-term care such as chemotherapy.

These types of scenarios generally mean that there will be family members that might accompany thepatient and require accommodation.

It is important to note that there are some other locations in the area surrounding the BioDistrict

listed in the following table. However, these facilities are also serving the Central Business District,

and may not provide the necessary proximity to the BioDistrict that would be required by hospital

visitors. Additionally, they have similar offerings and price points to the Clarion Inn and Suites in the

BioDistrict, which is unlikely to fit the needs of patients requiring long-term stay facilities.

Table 23: Long Term Stay Facilities in Surrounding Area

Hotel Name Address Rooms Low Rate High Rate

Homewood Suites New Orleans French Qtr 901 Poydras St 166 $139 $189Residence Inn New Orleans Downtown 345 St Joseph St 231 $139 $209Marriott Execustay 925 Common 925 Common n/a $2,300/mo $3,200/moGravier Place 837 Gravier Place n/a $1,200/mo $1,600/mo

Union Lofts 334 Carondelet 33 $1,730/mo $2,610/mo

Source: GCR & Associates, Inc.

AECOM conducted a series of case studies for comparable long-term stay offerings related to

medical districts in other parts of the country. The number of available rooms in comparable

developments range significantly from 10 to 270 in the selected developments, with an average of

roughly 110. While room rates range as well they are typically $65 to $110. Offerings are generally a

large unit (often equivalent to a studio apartment) which is combinable with other nearby unit(s).

Management is sometimes non-profit for this sort of offering. The need for these offerings is related

directly to critical-care, longer-term treatments (ex. chemotherapy), and stays range from a typical

minimum of 5 days to several months. Occupancy rates, especially from some of the smaller

facilities, can be high compared to that of a standard hotel operation.



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Table 24: Medical Long Term Stay Facilities Case Studies

Name Location RoomsLowRate

HighRate Medical District

Extended StayAmerica Hotel Chesapeake, VA 132 $55 $75

Portsmouth Naval MedicalCenter

Main Stay Suites Houston, TX 92 $75 $199 Texas Medical CenterCleveland GuestHouse Cleveland, OH 231 $99 $124 Cleveland Clinic

McElderry House Baltimore, MD 40 $66 $85Johns Hopkins Medical

ComplexIMD Guesthouse Chicago, IL 9 $40 $50 Illinois Medical DistrictDuke Tower Durham, NC 100 $69 $85 Duke Medical CenterRonald McDonaldHouse Chicago, IL 22 $25 -

University of ChicagoChildren's Hospital

Kahler Inn &Suites Rochester, MN 271 $95 $135 Mayo Clinic

Source: Facility Websites, AECOM Interviews

The final point of analysis compares the capacity of long-term stay facilities in the BioDistrict with

that of the case study medical districts. The number of units in each district is compared with the

number of inpatients (who would likely drive long-term stay facilities), hospital beds, and employment.

Table 25: Comparison of Long-Term Stay Capacity

Inpatient/LTS Hospital Beds/LTS Employment/LTS

BioDistrict 474 6 110

IMD 671 15 153Memphis 235 5 48

UAB 121 3 26


In all cases in the table above, the BioDistrict falls in the middle, which makes it unclear that there

is a pressing need for new facility space. However, as noted, the type of offering currently available

through the Clarion Inn and Suites does not fit with comparable offerings related to medical districts.

The table that follows indicates the order-of-magnitude needed for offerings that are well aligned with

medical district patients. Overall, AECOM finds that between 90 and 120 units could be supportable

in the BioDistrict, given the level of expected visits from out of the area that is consistent with the case

studies indicating an average of 110 units per comparable development. This assessment dovetails

with Tulane’s proposal for a 200-bed extended stay hotel, which CBRE reports is part of Tulane’s

plans for 2021-2031 that include a new hospital along Cleveland Avenue between LaSalle and S.

Liberty Street.



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Table 26: Initial Long Term Stay Program (5-Years) - Net Demand

Total Inpatient Outpatient Visits 1,156,000

Out-of-Area Visitors 165,000

Overnight Percentage Estimate 5% to 10%

Overnight Visit Range Estimate 8,250 to 16,500

Overnight Visit Estimate 12,000

Site Capture 15% to 20%

Site Visits Range 1,800 to 2,400

Length of Stay (Days) 15

Site Overnight-Days Estimate 27,000 36,000

Supportable Units (@80% Occupancy) 90 120Source: AECOM

Potentially related to hotel and long-term stay facilities is the amount of meeting space that is

available in the BioDistrict for medical conventions, industry meetings, etc. These offerings could

also be developed in conjunction with office, medical office, or one of the major institutions in the

BioDistrict as well. As part of any major medical and life sciences focused district, these types of

meetings are common, and a major source of knowledge sharing that is essential to the growth and

development of quality of care. The BioDistrict has 6,852 sq. ft. of meeting space within 7 hotels. But

there is a much larger amount of meeting space in New Orleans – 791,101 sq. ft., as well as the

Convention Center on the riverfront.

As later phases of development are implemented, there may be justification for dedicated

meeting space directly related to the BioDistrict that could be more synergistic with the biomedical

cluster being targeted.

Table 27: BioDistrict and New Orleans Meeting Space

Total Hotels Total Meeting Space (Sq. Ft.)

BioDistrict 7 6,852

New Orleans 144 791,101Source: GCR & Associates, Inc. and Smith Travel Research

AECOM’s experience elsewhere with similar medical districts indicates that most conferences

and related spaces for medical districts are needed for meetings of 150 to 300 attendees on average;

however, some conferences of 500 to 600 attendees could be possible if the space were higher in

quality and larger than that which currently exists. Using a planning factor of capacity for 400 persons

per meeting, ratios of 15 sq. ft. per person for the core banquet and divisible meeting space, as well



Page 33

as 1.5 to 2 times this figure for additional breakout and supportable meeting space, this would imply

potential for 9,000 to 12,000 sq. ft. of contiguous space in the BioDistrict. AECOM would not

recommend a facility larger than this given the notable capacity of other hotels in the market as wellas the sizable Convention Center.



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VII. Office and Medical Office Space

Adequate office, medical office, and related manufacturing space can be a critical component in a

medical district for general support businesses that serve the district, as well as for doctors’ offices

and research organizations that might be affiliated with local hospitals. Strong research and teaching-

hospital combinations are the core way to extend the economic impact of medical districts. The

BioDistrict has a large amount of office space, but has relatively low occupancy rates, implying that

net new demand may be better accommodated in existing buildings elsewhere in the BioDistrict. The

oversupply of space appears to be less prominent for medical office in the BioDistrict.

Table 28: BioDistrict Office Space

All Office Medical

Number of Buildings 77 15Total Rentable Building Area (RBA) 7,356,396 467,452Occupied Square Foot 4,938,649 421,055Occupied Percentage 67% 90%

Total Average Rate (TAR) $14.74 $14.73

Source: Transwestern Commercial Services; data provided May, 2010

In comparison to the other case studies, the BioDistrict has much less medical office than the

IMD or the Memphis Medical Center, but not UAB. All of the case study samples have a significantly

higher occupancy rate than the area under consideration.

Table 29: Case Study Office Space

IMD Memphis UAB

All Office Medical All Office Medical All Office Medical

Number of Buildings 167 58 132 47 193 33

Total Rentable Building Area (RBA) 6,985,992 3,643,481 4,781,154 2,868,877 3,127,318 263,280

Occupied Square Foot 6,785,836 3,611,166 4,720,770 2,860,062 2,916,465 254,199

Occupied Percentage 97.1% 99.1% 98.7% 99.8% 93.3% 96.6%

Total Average Rate (TAR) $16.47 $14.91 $13.95 $14.04 $16.24 $10.36

Source: CoStar 2010 QTD

Finally, when comparing the ratio of Medical Office Space to employment, the BioDistrict falls on

the low end. Importantly, the range is significant and likely reflects the difference in orientation of

services between the various medical districts. Medical districts with a stronger focus on servicing

the local populations and fewer opportunities for research and development, educations, and

specialty care offerings are less likely to require greater capacity for office, medical office, and related

manufacturing, research, and development space. As the case studies suggest, a successful

combination of these elements could significantly grow the amount of space demanded for medical

districts – up to 10 times that experienced in smaller medical districts and the range currently

estimated for in the BioDistrict.



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Table 30: Comparison of Medical Office Space Capacity

Medical/Employment

BioDistrict 26IMD 194

Memphis 251

UAB 18


To understand the additional range of potential new square footage related to planned and future

medical related operations and development CBRE provided the project team with estimates based

on their experience with similar developments elsewhere. The total potential of net new demand

related to the BioDistrict could be in the order of 1.6 million sq. ft., some portion of which could likely

be accommodated in existing and unoccupied buildings or spaces.

Table 31: Office, R&D, and Manufacturing - Increments by Period


R&D/ Institutional 50,000 200,000 500,000

Medical Office 25,000 25,000 50,000

Manufacturing 100,000 400,000 250,000

Increment Total 175,000 625,000 800,000

Cumulative Total 175,000 800,000 1,600,000

Source: CBRE



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VIII. Phasing and Target Locations

The BioDistrict comprises a broad spectrum of activity in the Mid-City area as well as the fringes

of the Central Business District. Parts of this are distressed, some areas are reasonably well kept,

and the land uses themselves range from heavier industrial / utilities, higher density office and

residential, and neighborhood density housing and retail. AECOM Economics has toured the area in

detail and has an understanding of the assets and liabilities of the target area. We have concluded

that the geographic extent of this BioDistrict is so large that, while the land plan must create a

seamless land use concept for the entire area, the somewhat soft marketplace will dictate a phased

implementation of development and clustering strategy. This development strategy must help solidify

some of the areas that are in transition, but more importantly, create magnet and core areas that can

be the basis or catalyst for redevelopment over time.

We have identified a number of development opportunities that would be feasible to pursue in

both the near- and mid-term. It is our recommendation that much of the initial community efforts –

particularly if there is a program to revitalize the lower-density housing with a targeted incentive

program – be focused between the I-10 corridor and Broad Street along the two or three blocks either

side of Broad Street. This area, too, could be a target for community-serving amenities like

restaurants, as there are several in this corridor that already have established their reputation and

clientele.

Along Perdido and Gravier streets there are still large, surface parking lots that would be

excellent locations to provide sites for both office buildings and parking garages. Likewise, close in

there are smaller lots along Canal Street closer to I-10 that have some stability now and would be

appropriate for smaller medical offices and infill development. There has been some discussion

about the concept of a meeting facility or medical mart. Close to the hospital activities and planned

development in the vicinity of Prier Street and Tulane Avenue are sites that could be centrally located

to the core activity of the medical district. Charity Hospital has also been mentioned as a potential

site for a mixed-use development which could include meetings and mart uses.

The area around Loyola / Perdido / Gravier would be a good location for mixed-use residential

development that could be combined with ground-floor retail and have a potential link to theSuperdome redevelopment plan. This area would help to reinforce the plans of the DDD for this area,

bring 24/7 activity to this part of the downtown, and allow residents to tap into the amenities of the

Warehouse District, French Quarter and Downtown and be part of the larger picture for the

Superdome plan.

A key decision concerning land use and development is Charity Hospital. It is centrally located

within the BioDistrict’s core and would be instrumental in creating a new image for the whole process.



Page 37

However, there are issues related to historic designation and environmental remediation – particularly

related costs – that must be resolved with the State before any financially viable ideas can be further

developed.

Initial development initiatives should concentrate on the activities that make the area appealing to

potential employees, particularly affordable, well-located housing that has access to transportation

and amenities – as well as the development that will facilitate the business activity in the BioDistrict

such as medical office, support medical services and daytime retail.



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IX. Incentive Options

This section includes selected incentive programs that may be applied in the BioDistrict.

Federal Incentive Options

Historic Tax Credits

Federal tax credits of up to 20% are available for rehabilitation of properties placed on the

National Historic Register.

New Markets Tax Credits

The federal government has funded the NMTC program since 2002, and currently, there is $3.5

billion allocated annually through the program. NMTC awards are given to qualifying banks and

finance institutions that, in turn, make them available for projects meeting certain criteria. NMTC is an

especially attractive opportunity in Louisiana because of the large number of State enterprises who

have received allocations after hurricanes Katrina and Rita. In addition, there is a State NMTC

program funded with $200 million. The NMTC investments are targeted for use by projects providing

the following in qualifying Low Income Community census tracts:

Create or maintain jobs

Increase wages

Finance or assist Low Income Community businesses

Finance or assist minority or women owned businesses

Finance or assist community benefit businesses or community benefit real estate projects

Facilitate wealth creation or asset accumulation

Provide goods or services

Create environmentally sustainable outcomes

Finance real estate businesses which reduce rent or provide more flexible leases

NMTC financing can be used as equity for debt financing and is transferable. The credits can be

used on top of other sources of incentive financing. Many times, developers will piggy-back NMTC’s

on top of historic credits at both the federal and state levels. The credit is applied to the investor’s

federal income taxes. The amount of the credits is up to 39% at the federal level and additional 25%

from the State. Local banks or Community Development Entities with NMTC allocations include

Capital One, Whitney, Morgan Keegan, and others.



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State Incentive Options

Louisiana businesses that create jobs in specific qualifying areas may be eligible for state

incentive options. The areas designated for Enterprise Zone (EZ) incentives usually exhibit high

unemployment, low income and/or substantial percentage of residents receiving government

assistance. Administered by Louisiana Economic Development’s Business Incentives Services, The

Board of Commerce and Industry is tasked with application approval. The requirements for approval

include creation of five net new jobs with 35% of the net new jobs meeting one of four Certification

Requirements. Advance Notification filing is required. More information regarding the following

incentive programs is available from Louisiana Economic Development.

Enterprise Zone

The EZ program provides Louisiana Income and Franchise tax credits for Louisiana businesses

that create jobs in specific qualifying areas. The areas designated for EZ incentives usually exhibit

high unemployment, low income and/or substantial percentage of residents receiving government

assistance. Administered by Louisiana Economic Development’s Business Incentives Services, The

Board of Commerce and Industry is tasked with application approval. The requirements for approval

include creation of five net new jobs with 35% of the net new jobs meeting one of four Certification

Requirements. Advance Notification filing is required.

The benefits of the EZ program include the following:

A one-time tax credit up to $2,500 for each net new job created

Tax rebate for materials, furniture, fixtures, machinery, and equipment purchased and used

on the EZ site and delivered during the construction period

OR a 1.5% Refundable Investment Tax Credit based on capitalized investment for new

projects/construction

Quality Jobs Program

This program provides a cash rebate to encourage “targeted businesses” to locate in Louisiana.

The rebate amount is equal to 5% or 6% of annual gross payroll for new direct jobs for up to 10 years.

In addition, businesses can also receive a 4% sales/use tax rebate on capital expenditures. Eligible

industries include the following:

Biotechnology or Biomedical

Micro-manufacturing



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Software, Internet, and Telecommunications

Environmental Technology

Food Technology

Advanced Materials

Manufacturing

Oil and Gas Field Services

Businesses with 50% of sales from out-of-state

In addition, businesses receiving Quality Jobs assistance must create jobs and offer basic health

plans to employees. The benefits of the program are similar to those offered under the EZ Program

and include payroll benefits, sales/use tax rebates, and investment tax credits. Businesses may not

apply for aid from both programs.

Restoration Tax Abatement

Designed to entice “expansion, restoration, improvement, and development of existing

commercial structures and owner-occupied residences”, the Restoration Tax Abatement program is

specifically targeted in Downtown Development Districts, Economic Development Districts, and/or

Historic Districts. Enterprise Zones and Economic Development Zones do not qualify. The benefits

offered include a 5-year deferred property tax assessment on renovations and improvements that

may be renewed for a second 5-year period. The tax abatement is transferable if the property is sold.

Industrial Tax Incentive Program

The Industrial Tax Incentive Program is designed by the State to entice manufacturers new to

Louisiana or expanding their operations within the State. The program offers property tax abatement

on new investment and capital additions for up to 10 years. The exemption applies to “all

improvements to land, buildings, machinery, equipment, and other property which is part of the

manufacturing process.”

Research and Development Tax Credit

The Research and Development Tax Credits are available to existing businesses with operating

facilities within the State to implement or continue R&D activities. The credits provided are

transferable but must be used in one of fifteen targeted industries. Benefits include tax credits up to

8% of state income and corporation franchise taxes. In addition, there is a Technology

Commercialization Credit and Jobs Program currently being debated in the Legislature.



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Industry Assistance Program

This program provides tax exemption to manufacturers who give preference to Louisiana

suppliers, engineers, contractors, and labor provided that the preferential treatment does not add

expense. The applicant must demonstrate that the tax credit will assist in maintaining current

employment levels and invest in their operation in the future.

Tax Equalization Program

This program is designed to attract, retain, and promote expansion of manufacturing companies,

headquarters, and warehousing and distribution enterprises to Louisiana. The benefit provided is the

equalization of the overall tax burden between Louisiana and a competing non-Louisiana site.

Other Louisiana Incentives

In addition to the incentive programs listed above, Louisiana offers the following programs for

small businesses and entrepreneurs:

Louisiana Motion Picture and Incentive Program – The program offers state sales and use

tax rebates for motion picture productions which spend more than $1 million within Louisiana

Louisiana Digital Media Incentive program – The program offers a similar structure and credit

level to the Motion Picture incentive program

Louisiana Music Tax Credit – Incentive program offers tax credits up to 25% for music

performed, composed, or recorded by Louisiana musicians or music released or published by

a Louisiana-based company

Microenterprise Development Program – provides economic literacy training, mentoring, and

financial counseling to underserved urban and rural communities

Small and Emerging Business Development Program (SEBD) – provides new companies

with marketing and accounting assistance

Bonding Assistance Program (BAP) – provides small and emerging businesses with

resources to help bid on private and public jobs

Mentor Protégé Tax Credit Program – provides technical assistance to emerging construction

businesses by offering tax credits to Mentor companies

Louisiana Contractors Accreditation Institute – provides construction management education

and assistance



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Hudson Initiative – educational program offering assistance for state procurement and public

contracts

Urban Entrepreneur Partnership – national collaboration providing assistance to

entrepreneurs to foster housing, job creation, and entrepreneurial development and research

Matching Grants Program – provides assistance to eligible economic development

organizations for marketing and recruitment in the form of Regional Awards and Matching

Grant Awards

Local Incentive Options

Façade grants

In current form, AECOM understands that grants are available up to $75,000 each. AECOM believes

that façade grant programs can be a useful tools in downtown redevelopment programs.

In addition to the grant/loan program, other cities have instituted façade donation programs. The

façade donation program would involve property owners donating their façades to local or state

historical preservation entities who would then be responsible for upgrading and maintaining them to

an agreed upon standard. This serves two main purposes: upgrade of the aesthetic appeal of the

area and preservation of valuable historical assets.

Tax Increment Financing (TIF)

Tax Increment Financing (TIF) is an incentive tool that has been used frequently in similar

development campaigns. Generally, TIF is used as a tool to spur development (especially retail

development) in depressed areas. The State of Louisiana has a unique TIF statute in that the

property tax rate in Louisiana is quite low. Normally, TIF would involve the capture of increased

property taxes for re-use in a designated area. Bonds are issued to provide a site, infrastructure, etc.

Development occurs, and the new property and sales taxes pay off the bonds. Tax revenues from

this point on go to the appropriate government sources. However, in Louisiana, because of the

smaller increment available from property tax TIF, sales tax TIF is also necessary. Sales tax TIF is

historically more volatile than property tax TIF. The main misunderstanding in the community

regarding TIF is that there is a diversion of current taxpayer dollars. This is not true. The current

level of property and sales taxes in the designated area is not affected. Only the increase in tax

levels causes a portion of the increased taxes to be captured within the district. In short, properly

designed and implemented TIF creates development where none would occur without it and

increases the tax base for use in the community.



Page 43

The keys to effective TIF are design and implementation. Historically, TIF is most effective when

the following issues are addressed properly:

TIF is used to spur development that would not occur without it

TIF areas are small and targeted

TIF zones are properly managed and audited

TIF oversight committees are populated with non-political development advocates who,

ideally, do not have personal financial interests within or bordering the designated area



Page 44

X. General & Limiting Conditions

Every reasonable effort has been made to ensure that the data contained in this report are

accurate as of the date of this study; however, factors exist that are outside the control of AECOM

and that may affect the estimates and/or projections noted herein. This study is based on estimates,

assumptions and other information developed by AECOM from its independent research effort,

general knowledge of the industry, and information provided by and consultations with the client and

the client's representatives. No responsibility is assumed for inaccuracies in reporting by the client,

the client's agent and representatives, or any other data source used in preparing or presenting this

study.

This report is based on information that was current as of April 2010 and AECOM has not

undertaken any update of its research effort since such date.

Because future events and circumstances, many of which are not known as of the date of this

study, may affect the estimates contained therein, no warranty or representation is made by AECOM

that any of the projected values or results contained in this study will actually be achieved.

Possession of this study does not carry with it the right of publication thereof or to use the name

of "AECOM" or “Economics Research Associates” in any manner without first obtaining the prior

written consent of AECOM. No abstracting, excerpting or summarization of this study may be made

without first obtaining the prior written consent of AECOM. Further, AECOM has served solely in the

capacity of consultant and has not rendered any expert opinions. This report is not to be used inconjunction with any public or private offering of securities, debt, equity, or other similar purpose

where it may be relied upon to any degree by any person other than the client, nor is any third party

entitled to rely upon this report, without first obtaining the prior written consent of AECOM. This study

may not be used for purposes other than that for which it is prepared or for which prior written

consent has first been obtained from AECOM. Any changes made to the study, or any use of the

study not specifically prescribed under agreement between the parties or otherwise expressly

approved by AECOM, shall be at the sole risk of the party making such changes or adopting such

use.

This study is qualified in its entirety by, and should be considered in light of, these limitations,

conditions and considerations.



5

Appendix B:Biosciences

Programming



TASK 4:

BIODISTRICT NEW ORLEANS

BIOSCIENCES PROGRAMMING

STRATEGY

Submitted by;

CBRE STRATEGIC CONSULTING

Submitted to;

AECOM

August 24, 2010



2

TABLE OF CONTENTS

PROGRAMMING RECOMMENDATIONS ..................................................................................................... 3

YEAR 1-5 ............................................................................................................................................................. 3

YEAR 6-10 ........................................................................................................................................................... 3

YEAR 11-20 ......................................................................................................................................................... 4

ABSORPTION SUMMARY....................................................................................................................................... 4

PROGRAMMING ELEMENTS’ DRIVERS ...................................................................................................... 7

UNIVERSITIES’ EXPERTISE ................................................................................................................................... 7

RESEARCH CENTERS’ EXPERTISE......................................................................................................................... 7

HOSPITALS’ CLUSTER .......................................................................................................................................... 8

NEW BIOSCIENCES OPORTUNITIES ....................................................................................................................... 8

Sports and Rehabilitation Medicine ................................................................................................................ 8

Translational Medicine ................................................................................................................................... 9

PUBLIC PRIVATE PARTNERSHIPS / PUBLIC AGENCIES’ INITIATIVES ................................................................... 10

HOSPITAL REUSE CASE STUDIES ............................................................................................................... 11

PACMED BUILDING, SEATTLE WA .................................................................................................................... 11

NORTHERN MICHIGAN ASYLUM FOR THE INSANE, TRAVERSE CITY, MI ............................................................ 12

COUNTY-USC HOSPITAL, LOS ANGELES, CA .................................................................................................... 13

COOK COUNTY HOSPITAL, CHICAGO, IL ............................................................................................................ 14

CONCLUSIONS .................................................................................................................................................... 15

CASE STUDIES’ DEMAND TRENDS ............................................................................................................. 15

ABSORPTION TRENDS......................................................................................................................................... 15

CATALYTIC EVENTS........................................................................................................................................... 16



3

PROGRAMMING RECOMMENDATIONS

Based on the extensive research that CBRE has done relative to the life science and medical researchexpertise in New Orleans and Louisiana, as well as case study research into the evolution of other lifescience research park clusters across the United States, we offer the following programmaticrecommendations for the BioDistrict master plan.

YEAR 1-5

The concurrent development of the Louisiana Cancer Research Center (LCRC) and the New OrleansBioInnovation Center (NOBIC) incubator facility, along with the proposed VA hospital andUniversity Medical Center (UMC) complexes, represent a massive influx of new medical office andresearch lab space for a community such as New Orleans. With expected budget cuts in research atLSU, Tulane and other institutions – there will likely be little or no demand for new private sectorspace during the next 5 years. CBRE has also assumed that Tulane and LSU will accommodate theirinternal research facility needs on their respective campuses – given more than one million sf of surplus space that is available now (including Charity Hospital, old VA Hospital, LCRC etc). It isimportant to note that we have not been able get an inventory of all the buildings in the Charitycomplex to determine what can be reused.

There are two new life science tenant prospects for BioDistrict New Orleans that could seedevelopment begin by Year 5.

1. Pharmaceutical packaging and manufacturing - 50,000 to 200,000 sq. ft. industrial facilitywithin the industrially zoned land riverside of Xavier University (part of a +50-acre pharmaindustrial area)

2. Regenerative Sports Research Facility – a 100,000 sq. ft. facility for treatment of veterans, aswell as the New Orleans Hornets and New Orleans Saints (part of a 25-acre campus to belocated lakeside of the Louisiana Health Sciences Center as shown on the attached site plan).

TIF funding is important, since this facility is expected to bring in significant out of statevisitors/customers.

With the veteran population growing and Congress pushing for more in depth treatments, otherresearch opportunities for New Orleans that could be pursued include intergrated medicine and a newNeuro-science Center.

The new Louisiana Cancer Research Center offers an opportunity to build expertise and potentialfuture growth in this important medical field.

A Regional Center for Coastal Health would be an important step to study the ongoing effects of theBP oil disaster and its cleanup efforts.

YEAR 6-10

Assuming there is successful collaboration between LSU, Tulane, Pennington, Xavier, and otherresearch organizations, there can be internal growth from the various research specialties that cansupport private R&D lab space and follow-on incubator space. An expansion of a facility that could



5

It must be noted that above estimates are highly susceptible to changes in market conditions, politicalwillingness, strength of coalition of educational partners, state workforce preparedness for biosciencesindustry from Louisiana universities, public agencies’ support – economic incentives and regulatoryfacilitation, growth of biosciences industry in U.S. and in Louisiana, access to venture capital andangel investors, and breakthroughs in research by any of the local research centers. Most of these

variables can not be predicted accurately for a long-term period such as the 20 years for this analysis.Accordingly, the actual development absorption trends at BioDistrict New Orleans will most likelyvary significantly from the estimated likely ‘benchmark’ guidelines provided above.



6

Exhibit A: Regenerative Sports Research Complex Illustrative Concept



7

PROGRAMMING ELEMENTS’ DRIVERS

Local institutions and their area of life-sciences expertise/focus, and prospective bioscience demanddrivers in New Orleans will guide the programming elements of a life science cluster at BioDistrictNew Orleans. Such institutional expertise and demand drivers are profiled in this section.

UNIVERSITIES’ EXPERTISE

Louisiana State University – Apart from the sciences, the LSU has schools for studyingagriculture, coast and environment, and veterinary medicine, covering an array of biosciencesfields. Its biological sciences research centers include divisions of Biochemistry & MolecularBiology, Systematics, Ecology, & Evolution, and Cellular, Developmental, & Integrative Biology.The centers set up in partnership with other universities are listed in the following section.

Tulane University – The School of Science and Engineering houses research centers inbiosciences concentrations such as Infectious Diseases, Climate Change Research andBioenvironmental Research. The relevant School of Public Health and Tropical Medicine centersinclude focus on bioenvironmental research, cardiovascular health, bioengineering and infectiousdiseases.

Xavier University – The University has a School of Pharmacy with divisions focused on bothbasic pharmaceutical and clinical & administrative sciences. Its research centers’ focus includesminority health and disparities, women’s health, drug information, cancer, and minority AIDSeducation.

University of New Orleans – Research focuses on areas of Assisted Reproductive Biology,Conservation Biology, Population Genetics, Coastal Restoration, and Bio-nanotechnology. UNOhas shared in several SBIR grants with St. Charles Pharmaceutical and its SBIR grants includenanotechnology as a drug delivery system. It has a partnership with Children’s Hospital of NewOrleans where it shares bio-informatics research and facilities.

Delgado Community College – It offers many Allied Health programs, which provide skilled

healthcare professionals that can assist in patient diagnosis, treatment, and rehabilitation. Thecollege also houses the Charity School of Nursing with programs in both registered and practicalnursing.

RESEARCH CENTERS’ EXPERTISE

Clinical and Translational Research, Education and Commercialization Project (CTRECP) is a joint venture between LSU and Tulane universities. Its offerings include skilled nursingservices, specialized research study facilities and equipment, biostatistical support, researchnutrition services, and research subject advocate services. The Core Laboratory offers sampleprocessing, storage and shipping, assistance with research design, and performance of specializedmolecular biology techniques.

South Louisiana Institute for Infectious Disease Research (SLIIDR) is a partnership of LSUand Tulane‘s Health Science Centers. Its research areas of strength cover emerging ID/bio-defense, fungal disease, HIV/SIV, ocular, oral cavity and respiratory diseases, STD’s, andvaccines. Its core facilities include genomics, proteomics, protein, nanotechnology, vectordevelopment, immunology, molecular interaction and imaging.

Louisiana Vaccine Center (LVC) focuses existing interdisciplinary strengths in the basic andtranslational science of microbial pathogenesis, host immunity and vaccine research at three majorLouisiana universities - LSU, Tulane and Xavier. The goal of the Center is to promote research



8

and development in the areas of vaccines, infectious diseases and immunology with appropriateinfrastructure and training.

Tulane National Primate Research Center is a biosafety lab that focuses on development of treatments, vaccines and diagnostics for infectious diseases and toxic materials. Its divisions areBacteriology & Parasitology, Collaborative Research, Comparative Pathology, Gene Therapy,Immunology, Microbiology, and Veterinary Medicine, with an emphasis on diseases such asAIDS, Krabbe disease, Leukemia, Lyme disease, Malaria, Microsporidiosis, RSV, Rotavirus andTB.

Pennington Biomedical Research Center’s 403,000 sq. ft. core research complex houses 53laboratories that span the Center's three programs - Basic Research, Clinical Research, andPopulation Science. Research laboratories are divided into 10 program areas – Cancer, Diabetes,Epidemiology & Prevention, Genomics & Molecular Genetics, Neurobiology, Neurodegeneration,Nutrient Sensing & Signaling, Obesity, Physical Activity & Health, and Stem Cell &Developmental Biology.

HOSPITALS’ CLUSTER

The BioDistrict contains the VA Hospital, Louisiana State University School of Medicine, and TulaneUniversity School of Medicine, as well as five of the city's 19 hospitals – all within a radius of sixblocks. Charity Hospital and University Hospital are academic teaching hospitals administered by theLouisiana State University System, and are part of the LSU Health Sciences Center to be managed bya private non-profit board of 11 members selected by the participating parties.s

The Veterans Administration Hospital serves the southern third of the state of Louisiana and portionsof Mississippi, Alabama, and Florida, with a veteran population of about 250,000. The hospital isaccredited for residency training programs in nine specialties and ten subspecialties, and is alsoaffiliated with the two medical schools and the LSU School of Dentistry.

NEW BIOSCIENCES OPPORTUNITIES

CBRE held two luncheon meetings on July 14 and 15, 2010, discussing translational medicine andsports medicine, respectively, with various stakeholders in biosciences sector in New Orleans. Theattendees included executives from BioDistrict New Orleans, CBRE, public/economic-developmententities, local universities, research centers, hospitals, and private businesses. Their functionalexpertise varied from executive, operations, research and development, instructional, academic,business development, and entrepreneurship. The panel discussed the opportunities and challengesfaced by BioDistrict New Orleans for fostering sports medicine and translational medicine focusedbioscience initiatives.

Sports and Rehabilitation Medicine

Additional bioscience assets of the greater New Orleans area can be leveraged to develop the roadmapfor the growth of the BioDistrict and bioscience sector. The regional bioscience assets, includingneuroscience centers of excellence, infectious disease research, hyperbaric medicine and orthopedics,can be seen as a combined asset that could provide the foundation for a Regenerative Sports MedicineInstitute in New Orleans. Such a facility could potentially include not only world-class research andmedical amenities, but also potential rehab training facilities for both the Saints and the Hornets. TheLSU Health Science Center also has expertise in this field, with Dr. Keith VanMeter and Dr. Paul



9

Harch involved in work using hyperbaric medicine to treat compression sickness in divers toaccelerate recovery and in the treatment of Post Stress Syndrome in the Veterans population.

Dr. Joseph Constants stated that the new VA facilities, whose research around medical issues thataffect veterans, could complement other regional research. In reference to the new VA facilities,

including repurposed portions of the historic Dixie Brewery building, the VA has expressed interesthow its efforts could complement those of other regional researchers. LSU’s Dr. William Gordonhighlighted the potential of his work to characterize the neuroprotective properties of omega-3 fattyacids to counter anti-inflammatory and anti-neovascular process of macular degeneration.

Research in these related fields could also complement the development of a regenerative sportsmedicine cluster at BioDistrict New Orleans, which includes extended stay facilities.

Translational Medicine

With the wide array of clinical research and pharmaceutical and trials/testing infrastructure in NewOrleans, there is potential to develop a ‘translational’ medicine cluster, which would provide start-to-end research facilities for pharmaceutical and/or biosciences organizations. This is possible bycollaborating to improve the regional clinical research enterprise and by leveraging current initiativesfor statewide and local health information exchanges to benefit clinical research. If all local partnerscould collaborate to identify their respective assets and initiatives, resources could be shared andleveraged and a stronger case could be made to outside investors approaching any one of thosepartners. The roundtable initiatives luncheon meeting to discuss these aspects yielded measures assuggested by the stakeholders.

Building Regional Clinical Research Enterprise - One participant (Dr. Prescott Deininger) notedthat to be more competitive in the clinical research environment, BioDistrict New Orleans needs todefine ways for regional institutions to function together more cohesively, so investors would be morelikely to fund trials in the region if they have access to the patients from all regional venues. Dr.

William Cefalu asserted that the limiting factor for clinical and translational research in the region isthe size of its trained investigator pool. He went on to point out that what is needed to train and recruitmore investigators is a more robust and sustained clinical research infrastructure with facilities akin tothe former GCRC. To facilitate scientists-clinicians coordination, Dr. Richard Murphy recommendedthe use of multi-university committees composed of clinicians and basic scientists whose primary roleis to identify what the research strengths of the represented organizations are and to bring together thepeople who can do the research to speak to those strengths. Sighting region’s limited resources, Dr.Roy Weiner said strategies for growing local researcher base should include those that nurture projectsneeding longer timeline to give a return on our investment. Dr. Laura Levy said that a case could bemade to investors for "purchasing" a limited number of high profile investigators (National Academymembers or Nobel prize winners), given the beneficial impact such an investment could have on ourresearch community.

Statewide and Local Health Information Exchanges Initiatives – It was generally recognized thatresearcher-access to electronic health records is not the limiting factor in the regional effort to enhanceclinical and translational research, but it clearly is an asset that could enhance inter-institutionalcollaboration. Federally funded health information exchanges have the potential to greatly improveclinical workflow and resulting patient health outcomes, and hold the potential to provide previouslyunavailable data sets to clinical researchers. While the primary goal is to develop the structure andfunctionality of the automated exchange and agreed upon data-elements across providers participating



11

HOSPITAL REUSE CASE STUDIES

PACMED BUILDING, SEATTLE, WA

The Amazon.com headquarters, located two miles southeast of downtown Seattle, is an adaptive reuseof a former U.S. Marine hospital. The project comprises 314,400 sq. ft. on a 9.1 acre site located in theBeacon Hill area, a primarily residential neighborhood comprised mainly of descendents of immigrantfamilies.

The 16 level, 312-bed hospital wascompleted in 1932. The art deco buildingwas listed on the National Register of Historic Places in 1978 and designated alandmark by the city of Seattle in 1991.On located on the site are six houses,called the Quarters buildings, on siteperimeter. The houses were for use byhospital staff and later converted to adminoffices. As PacMed, which is a publicdevelopment agency of the city of Seattle,began to convert to operating smaller,community-based clinics, it had no needfor the large Beacon Hill facility, whichstood substantially vacant from the late1980s onward.

Developer Wright Runstad & Company (WRC) learned that Amazon.com was actively seeking newoffice space for its headquarters and approached PacMed with a reuse proposal. At this point, PacMedhad been looking for tenant for 7 years. Site planning began in February of 1997 and commenced a

two-year predevelopment period. This included gaining neighborhood support through publicmeetings and working closely with community. Aside from traffic concerns, most members of thecommunity thought project would bring people, as well as economic stimulation, to the area. Toaddress concerns, WRC established residential parking zones, hosted an economic developmentconference on Beacon Hill, provided funding for neighborhood organizations, and distributed books of coupons for Beacon Hill businesses.

The project was the result of a public/private partnership, in which PacMed, the U.S. Department of Health and Human Services (DHHS), state legislators, and the city of Seattle were involved. Becausedevelopment rights to the hospital were granted for medical use only, the developer needed strongsupport from all parties. WRC, having much experience in financing leasehold properties, was able toobtain construction loan financing.

Construction involved the demolition of interior walls, removal of asbestos, roof and exteriorwaterproofing repairs, and replacement of core electrical and heating systems that were obsolete. Tomitigate risk, WRC required large deposit from Amazon, which is kept in an escrow account. WRCalso added a new parking structure in 2000. Construction began in November 1998 and ended June1999, and the project was completed on time and 4 percent under the estimated $21 millionconstruction budget. The project now houses Amazon on floors 1 through 13, PacMed on thebasement and ground floors, and Gentle Dental, also on the ground floor. The building comprises



12

283,000 sq. ft. of office space and 30,800 sq. ft. of medical/dental clinical space, and 459 parkingspaces.

Key Points:

Developer worked closely with community to ensure to local satisfaction and acceptance of redevelopment

Public/private partnership allowed for variance in uses permitted (to allow office)

Developer required large deposit from Amazon to mitigate risk

NORTHERN MICHIGAN ASYLUM FOR THE INSANE, TRAVERSE CITY, MI

The Northern Michigan Asylum for the Insane was established in 1885 as the demand for a thirdpsychiatric hospital in Michigan, in addition to those established in Kalamazoo and Pontiac, began togrow. The first building, also known as Building 50, was a Kirkbride structure and built in 1885. Thestructure was destroyed in 1963, as it was deemed a fire hazard, and replaced with a newer modernbuilding, though reflecting the same architechtural style. As modern day medicine and out-patientpreventative care began to replace the need for in-patient asylums, the hospital was closed in 1989.

The property was placed onNational Register of HistoricSites and the Grand TraverseCommons RedevelopmentCorporation (GTCRC) wascreated to safeguard theproperty and as well as tocreate a reuse plan for it. Thesite remained vacanthowever, until 2000, whenMinervini group, a localdeveloper, negotiated andsecured agreement withGTCRC to renovate the380,000+ sq. ft. Building 50 into a mixed-use residential/commercial project. Phase one of the projectwas completed in 2005 and phase two, which included the renovation and reuse of another 100,000 sq.ft., by fall of 2008.

The full site is own by various parties, including city, county, state and private entities, and has adevelopment capacity of one million sf. The site is located in a Michigan State Renaissance Zone,which is virtually free of property taxes and state income taxes through 2017. Property taxes are nearly92 percent abated and business/income taxes are abated for onsite businesses and residents. Otheravailable incentives include:

o Brownfield Tax Increment Financing through Grand Traverse County

o Brownfield Redevelopment Authority (GTCBRA) and the State of Michigan, forreimbursement of certain redevelopment and rehabilitation expenses

o State of Michigan Business Tax Credits, available through the State of Michigan,towards the eligible investment for projects within The Village

o Federal and State Historic Preservation Tax Credits



13

The rest of site is now being renovated into urban winery, coffee roaster, bakery, among other uses.The site’s cottages are also being renovated into 60 residential units and 63 businesses in marketplacetype setting.

Key Points: Local developer initiated redevelopment effort

Mixed-use development

Site owned and redeveloped by various parties, including private and public entities

Michigan State Renaissance Zone allows for significant business and resident incentives

COUNTY-USC HOSPITAL, LOS ANGELES, CA

The Los Angeles County-University of Southern California (LAC-USC) hospital was built in 1930and is located just one mile northeast of downtown Los Angeles, in the Boyle Heights area. Thestructure rises 19 stories high and comprises 2 million sf. The hospital included a psychiatric building,a pediatric pavilion and a parking structure, and at full capacity could house more than 2,000 beds.The historic structure is visible from many parts of the city and enjoyed fame in that its exterior wasused on the soap opera “General Hospital” for many years. Eventually, it would become a part of thelarger USC Health Science Campus.

However, the Northridge earthquake in 1994badly damaged the building, at some pointresulting in only half of its licensed beds to beable to be put to service. Eventually, enoughfunds were raised and as hospital care began tofocus more on outpatient care in the county, anewer, smaller hospital structure, with only 600beds, was built south-adjacent to the old building.

When the new building was constructed andpatients moved over in 2008, plans includedmothballing and preserving the Old Building,because of its historic value. Currently, thebasement and first five floors of the Old Building are used as administrative offices for doctors atLAC-USC. The upper levels remain sealed off as they do not have a sprinkler system in place andtherefore do not meet fire codes.

Recently, plans are being developed to establish a biotech park around the USC Health ScienceCampus. With it, the Board of Supervisors have voted to begin negotiations to establish a businessincubator in 113,800 sq. ft. on the second floor of the Old Building. Momentum Biosciences, a privatebusiness advisory group founded by UCLA and CalTech faculty, would run the incubator. Thecompany matches promising research with angel or venture funding and already has establishedoffices and lab space at the CenterPoint Business Park in Culver City. The deal would allow thecompany get a free 10-year lease while being able to accept up to ten startup companies at reducedfees.

Without having an incubator, USC has already spun out more than 24 mostly life science startups. Thegoal of the project is to boost the USC Health Sciences Campus as a biotech hub in economic times



15

CONCLUSIONS

Some of the key factors for successful hospital reuse based on the case studies are:

Predevelopment planning – conducting market research and feasibility studies to understand

dynamics of local and regional economic drivers will help create an optimal reuse strategy Public meetings for neighborhood support – Conduct community engagement activities and

input meetings will ensure community satisfaction and successful integration of redevelopmentproject

Public/private partnership – public involvement and/or assistance in redevelopment can take theform of subsidization, streamlining permit process, or agency acting as a stakeholder

Construction logistics – in many cases, much of interior (as allowed) may have to bereconstructed to create optimal inhabitant environment

CASE STUDIES’ DEMAND TRENDS

As part of Task 2 deliverable for this project, CBRE had analyzed benchmarks research andtechnology real estate initiatives across the US. We have profiled the short and long-term absorptiontrends at these parks as a benchmark for the amount and type of land uses contemplated for BioDistrictNew Orleans. Also included is an analysis of some of the key events or initiatives that acted ascatalysts to jump start or accelerate development at these parks.

ABSORPTION TRENDS

Once started, a research park’s absorption can vary significantly depending on its location relative tolife sciences assets, primary of biotech industry in the region, type of biotech space, private sectorcommitment, availability and extent of public incentives, local labor pool education attainment andpreparedness for life sciences, macro-economic conditions for capital, and access to venture capital

among others. Given the interplay of such factors, there is no directly comparable case study that canproject the absorption pattern for BioDistrict New Orleans. However, using these case studies asbenchmark, we can approximate a likely range of absorption scenarios depending on optimistic orpessimistic state of development drivers.

Exhibit B profiles the conception, start, current status and projected build-out of case study researchparks. Most benchmark research park case studies took 3 to 5 years on average from conception tobuilding of the first structures. The absorption in the initial years, after adjusting for big anchor tenantsor institutions, is typically lesser than in subsequent years. In the long term over 10 to 20 years,average absorption per year may average from 15,000 sq. ft. /year to 35,000 sq. ft. /year depending onthe attributes elaborated above.

Implications for BioDistrict New Orleans – Given the current macro-economic conditions, relativelack of agglomeration of biosciences firms and research in the state, few venture capital and investorsin the region, and relatively short history of bioscience initiatives, the absorption at BioDistrict NewOrleans is likely to average on the lower side of that range in the short-term. Thereafter, developmentcould be accelerated by key catalyst events, whereby the absorption potential upside can varysignificantly depending on the impact of these catalytic events. Based on the case studies, the long-term average annual absorption under an optimistic scenario could range from 75,000 to 125,000 sq.ft. /year.



16

CATALYTIC EVENTS

CBRE studied the evolution of case study research parks to ascertain the kind of catalyst events orinitiatives that could jumpstart a life science cluster in a region. Exhibit C profiles the key constituentsand catalytic events that accelerated development at case study research parks. At Technology

Enterprise Park in Atlanta, the catalyst was the city holding the industry’s premium event, the BIOConference in 2009. At Kannapolis, the founding and catalyst factor was the sustained vision andinitiative of a private entrepreneur to develop a mixed-use Biopolis. Securing a big player in theindustry as a tenant can also enhance the appeal of a cluster for other firms seeking locations. Thishappened when IBM located at Research Triangle Park in Raleigh-Durham and when DuPont’sAdvanced Materials Lab relocated to Delaware Technology Park. At other parks, setting up of keyresearch related facilities such as incubator space proved catalyst, as at University of Iowa Oakdaleand at Piedmont Triad Research Parks. Partnership with public agencies was another catalyst, withstate funded infrastructure spurring development at the Coldstream Research Park, state designation as‘Innovation Partnership Zone’ fueling development at Tri-Cities Research District in Richland, WA,and the federal government funding the nanotech alliance at Delaware Technology Park helpingaccelerate absorption. Exhibit B profiles the research park components and the catalyst events for case

study research parks.

Implications for BioDistrict New Orleans

There have been dramatic changes in the bioscience/medical field in New Orleans over the pastdecade. The loss of key research professionals to Houston and other cities following HurricaneKatrina, the closure of Charity Hospital, the national economic recession, and the continued lack of cooperation between the LSU and Tulane medical schools will continue to hurt the region’s ability todevelop a strong bioscience district.

The State, the City and the universities need to decide if a vibrant bioscience cluster is a priority forthe future economy of Louisiana, and if so make a commitment to collaborate and invest in the

existing research areas of expertise, and hopefully attract some nationally prominent researchprofessionals.

The experiences from the research park case studies and the factors impacting their evolution provideother lessons for BioDistrict New Orleans. Public agencies can spur development by fundinginfrastructure development, providing economic incentives for businesses relocating to the park,establishing publicly funded research facilities, and facilitating public-private partnerships andalliances. The universities can incentivize organizations locating at the BioDistrict New Orleans byshoring up and enhancing their life sciences/biosciences related curriculum, so the workforce is betterprepared for this sector. The private sector investment will follow suitable infrastructure being set upfor incubators. Given their gestation period, this support system would include not just the facilities,but also operational and financial resources. The sources of venture capital would be interested if

BioDistrict New Orleans is able to persuade big corporate tenant to locate R&D or manufacturingfacilities at the park, or if it is able to recruit high profile (Nobel laureate) faculty at one of the partneruniversities and/or research centers. Catalytic events will likely come to fruition through a cooperativeapproach of BioDistrict New Orleans’s multiple institutional partners.



17

Exhibit B: Case Studies’ Absorption Trends

Size Concept First Current Status Absorption / Yr. Projected

Start Bldg. since Start Build-out

Tech Enterprise Park 11-acres 2004 2006 250,000 62,500 600,0 Atlanta, GA in 2 buildings in 4 buildings

300 Employees 1,500 Employees

Center for Emerging Technologies mid-90's 1999 92,000 8,400 152,0

St Louis, MO in 2 buildings in 3 buildings

North Carolina Research Campus 2004 2006 551,000 137,800 1.35 million SF

Kannapolis, NC in 3 buildings commercial + 700 u

over 350 acres

Innovation Depot 2000 2007 140,000 46,700 140,0

Birmingham, AL 65 tenants 80 tenants

Delaware Technology Park 40-acres 1986 1993 350,000 20,600 ~ 600,000Newark, DE in 5 buildings in 7 buildings

Coldstream Research Park 735-acres 1991 1991

Lexington, KY 445 acres ~ 10-15 acres/yr. 735-acres

UI - Oakdale Research Park 189-acres 1984 1989 433,000 20,600 189-acres

Coralville, IA 60-acres

16 tenants

Piedmont Triad Research Pk early 90's 1994 554,000 34,600 5 million SF

Winston-Salem, NC in 6 buildings Over next 20-yrs40-acres 240-acres

Tri-Cities Research District 1600-acres 1989 1990 3.4 million SF 170,000 4.5 million SF

Richland, WA 980-acre 1600-acre

5000 workers Over next 10-years

Research Trianlge Park 7000-acres 1950's 1959 22.5 million SF 441,200

Raleigh-Durham, NC 7000-acre

38000 workers

Stanford Research Park 700-acres 1951 1951 10 mn SF, 162 bldgs 169,500

Palo Alto, CA 700-acre

23000 workers

MIT U niversity Park 27-acres 1982 1987 2.3 million SF 100,000

MA 27-acre

Virginia Bioscience Research Park 30-acres 1992 1996 1.1 million SF 78,600 1.5 million SF

in 9 buildings

Source: Primary and Secondary Research of individual research parks, and CBRE Strategic Consulting



18

Exhibit C: Case Studies’ Catalytic Events

Space Type Catalyst Project

/ Event

Tech Enterprise Park Hospital Lab space, 2009 BIO ConferenceAtlanta, GA Manufacturing, Institutional

Center for Emerging Technologies Incubators, Wet Lab space, - City purchased 1st bldg

St Louis, MO Pvt. Corporations Piecemeal approach

North Carolina Research Campus Insti tutional R&D and Labs, - Private Investment by Dole Foods

Kannapolis, NC Incubator, Retail, Manufacturing Company owner

- Biopolis mixed-use concept

Innovation Depot Incubator - R&D and Mfg, - UAB partnership with

Birmingham, AL Institutional offices Entrpreneurial Center

Delaware Technology Park Research Ctrs ( Intitutional), - DuPont's Advanced Mtrls relocated

Newark, DE Incubator '99, Hospitals to park as 1st tenant in '93

Pvt. Cos - 90% of non-incubator - Partnership with established

space entities ensured funding '98

- Nanotech alliance MANA

formed funded by Fed Govt '04

Coldstream Research Park Univ Research Ctrs, - Hughes Aircraft Co plant in '91

Lexington, KY Incubator, Office & Lab space - State funded infrastructure '99

for pvt. Cos. Crucial to getting IBM among others

UI - Oakdale Research Park University Ctrs, Incubator - UI Tech Innov Ctr '84

Coralville, IA Intitutional - Research Ctrs - 90K SF BioVentures Center '06

Piedmont Triad Research Pk Univ Ctrs, Lab space and Offices - NC Emerging Tech Alliance '00

Winston-Salem, NC for pvt cos., Incubator - 1st ground-up bldg: One Tech Pl '00

- Park's 1st pvt client Targacept '01

- Incubator estbd '01

Tri-Cities Research District Offices, Lab, Light Mfg - City rezoned TCSTP to business-

Richland, WA US DOE Lab, Research Ctrs research park zone '02

90K SF Incubator '98 - Reorg. TCSTP to TCRD '06

- State made TCRD an Innovation

Partnership Zone '07

Research Trianlge Park - Park starts growth trajectory with IBM &

Raleigh-Durham, NC Natn Instt of Env Health in '65

Source: Primary and Secondary Research of individual research parks, and CBRE Strategic Consulting



6

Appendix C:Educational Institutions &

Hospital Facility

Programming



Educational Institutions and Hospital Facilities Programming

Introduction

&

Executive

Summary

In response to significant, and in some cases insurmountable, damage to facilities by Hurricane Katrina,

major institutions located in the BioDistrict are on the cusp of undertaking significant building

campaigns to replace facilities and energize their presence in New Orleans. The AECOM Team has

identified key developments in the major health care and educational institutions within the BioDistrict ‐

the Veterans Administration, University Medical Center, Louisiana State University, Tulane, Xavier and

Delgado Community College. Ochsner Health System, with which current and future healthcare,

education and research partnerships will likely occur, is also a subject of this report. Activities are

discussed in terms of a five, ten and twenty‐year period from the release of the BioDistrict Master Plan.

Recurring areas of interests and/or current strengths among patient care specialties, education and

research were noted among the institutions, and those overlapping interests have been correlated in

the "Shared Thematic Interests" chart included in this section. The purpose of this chart is to note

common themes among institutions in the BioDistrict that generate collaborative opportunities for

distinctive joint programs that attract more than regional interest, and thus enhance revenues and

employment within the BioDistrict. Also noted was a significant emphasis on development of the

physical presence and identity of the BioDistrict in response to the vacant, industrial and generally

unwelcoming impression of much of the real estate currently surrounding each institution. An internal

focus on campus identity was presented by each institution's master plan, and an interest in uniting the

improvements to facilitate branding of the BioDistrict as a safe, cohesive, accessible and welcoming

place is supported. Development of a thriving, diverse residential community with associated retail,

recreational and entertainment amenities was viewed as necessary to success both for the institutions

and the BioDistrict as a whole.

Our current analysis is based on the information available, and in the cases where adequate information

has not yet been made available, some educated inference has been applied. It is our intent that

specifics of this section will be refined as necessary information becomes available.



Shared Thematic Interests

T O P I C S

H e a l t h c a r e

R e s e a r c h

/ B i o m e d i c a l / B i o s c i e n c e

P r i m a r y C a r e

N u r s i n g E d u c a t i o n

C a n c e r R e s e a r c h

B e n c h t o B e d s i d e M e d i c i n e F o c u s

G e n e R e s e a r c h

/ T h e r a p y

S t e m C e l l R e s e a r c h

/ T h e r a p y

P r o s t h e t i c s

C a r d i o l o g y R e s e a r c h

/ H e a r t D i s e a s e

E n d o c r i n o l o g y

N a n o M e d i c i n e

/ N a n o p a r t i c l e s

S p o r t s M e d i c i n e

O r t h o p e d i c s

N e u r o s c i e n c e a n d / o r B r a i n T r a u m a

I n f e c t i o u s D i s e a s e

D e n t i s t r y

F o r e n s i c s

B a r i a t r i c R e s e a r c h

/ T r e a t m e n t

M e d i c a l D e v i c e R e s e a r c h

M e d i c a l D e v i c e M a n u f a c t u r i n g

P h a r m a c e u t i c a l R e s e a r c h

P h a r m a c e u t i c a l M a n u f a c t u r i n g

C o m m u n i t y O u t r e a c h

C l i n i c a l T r i a l s

D i a b e t e s

A l z h e i m e r ' s

A l c o h o l / S u b s t a n c e A b u s e

N u t r i t i o n

/ A g i n g

S t r o k e

C o n n e c t i v e T i s s u e

E f f e c t s o f D i s a s t e r

E M D R

E x e r c i s e P h y s i o l o g y

R e s e a r c h A n i m a l F a c i l i t y

P e d i a t r i c s R e s e a r c h

B r a i n T r a u m a

E d u c a t i o n

/ T e a c h i n g

E d u c a t i o n

/ T e a c h i n g

‐

V e t M e d i c i n e

E d u c a t i o n

/ T e a c h i n g

‐

P h a r m a c y

E d u c a t i o n

/ T e a c h i n g

‐

E n g i n e e r i n g

E d u c a t i o n

/ T e a c h i n g

‐

M e d i c a l

E d u c a t i o n

/ T e a c h i n g

‐

M e d i c a l I n d u s t r y T e c h

H i g h e r E d u c a t i o n

VA Sites

UMC Sites

Other LSU

Other Tulane

Ochsner

Xavier

Delgado

Eco Park

New Orleans BioInnovation Center

Bioscience Commercialization

LCRC

Criminal Justice Center

City of New Orleans

Greater New Orleans, Inc. + Downtown

Development District

Charter High Schools

Charity Hospital Complex

Old VA Hospital

Other Research Facilities

NFL Sports Wellness Center

Parks and Recreation

Open Space

Industrial ‐ Light to Moderate

Housing

Workforce Development Sites

Office

Retail

Entertainment

Hospitality

Infrastructure

Civic Structures

Social Services

INSTITUTIONS, AGENCIES & LAND USES



Years 1‐5 (2011‐2016)

VETERANS ADMINISTRATION (VA) MEDICAL CENTER

Project Areas (based on available information)

Research Building (Dixie Brewery Renovation) ‐130,000 sq. ft. with 27 available lab units*

‐Flexible wet labs with support space*

‐Primary Investigator offices & conference space

on each floor.*

‐Small vivarium for 200 animals per Primary

Investigator*

Rehab & Transitional Living 250,000 sq. ft.**

New

Residential

Facility

250,000

sq.

ft.**

Existing Residential Facilities (Renovation) (4) 4,000 sq. ft.**

Outpatient Clinic 400,000 sq. ft.*

Inpatient Tower 275,000 sq. ft.**

Administration (Pan Am Building Renovation) 22,000 sq. ft. dedicated for research*

7,000 sq. ft. dedicated conference & workspace *

ER & Walk‐In 250,000 sq. ft.**

Diagnostic & Treatment Facility (2) 250,000 sq. ft.**

Pumping Station 1,000 sq. ft.**

Central Plant 200,000 sq. ft.**

Patient Parking Garage 1,000 cars*

Staff Parking Garage 1,000 cars*

*Data sourced from the U.S. Department of Veterans Affairs Project Legacy Facts for the Southeast Louisiana Veterans Heath

Care System , http://www.neworleans.va.gov/project_legacy.asp

**Data estimated from currently available information

Building Projects: The new $700 million‐plus VA Medical Center complex will replace facilities devastated by Hurricane

Katrina in 2005. Since the storm, Veterans have been treated at clinics, with hospital care provided by

VA hospitals outside of New Orleans or through arrangements with local hospitals. The new

replacement facility envisions honoring Veterans and their families with patient‐centered care, flexibility

and sustainability that sets the standard for the healthcare model. The new campus, located on a 30‐

acre, 12‐block site in Mid‐City intends to respect local heritage and serve as a cornerstone to the

burgeoning BioDistrict. The site is bordered by S. Rocheblave Street, Canal Street, S. Galvez Street and

Tulane Avenue.

The VA Medical Center will encompass approximately 1.7 million sq. ft. of space, with two 1,000 car

garages for patients, staff, and visitors. The project is intended to be complete in 2014 and will serve



70,000 plus veterans. The VA Medical Center is expected to employ a total of 1,800, of which

approximately 1,060 will be patient care staff.

Specific features of the development include:

Inpatient:

200 Beds (Total bed count provided by GCR).

Diagnostic & Treatment Component Emergency Department:

23 Treatment and Exam Rooms, 23‐Hour Observation Unit

Imaging Center:

1 PET CT, 3 CTs, and 3 MRs

Interventional Center:

8 ORs and 6 Procedure Rooms

Outpatient Component:

Full‐array of outpatient services with 500,000 visits projected annually

Education/Research: The new facility includes a dedicated program for research and educational advancement. Residency

programs with two major academic medical institutions will be reinstated to train more than 400

medical, surgical and psychiatric residents annually. Allied health affiliate programs will also be available

including nursing, pharmacy, dental, social work and psychology. Research space will be developed in

the historic Dixie Brewery to accommodate 140 Protocols with $2.5 million in funding. The new campus

will be the anchor for the Mental Illness Research and Education Coordinating Center (MIRECC).

Other: The new facility is designed to support an Emergency Preparedness Mission in the event of a Federal

emergency or natural disaster.



UNIVERSITY MEDICAL CENTER (UMC) (INITIAL PHASE)


Inpatient Towers 424 inpatient beds, 560,000 sq. ft.*

Diagnostic & Treatment Facility 740,000 sq. ft.*

ACB (Clinic) 259,000 sq. ft.*

Parking Garage 6 floors ‐ 5 floors of parking with 1,400 spaces,

helipad on 6th floor*

Surface Parking 1500 parking spaces*

Central Plant TBD ‐ potentially shared with VA Medical Center*

Elevated Walkways Connect ACB and hospital to existing LSU campus* *Data sourced from "Draft of Site‐Specific Environmental Assessment ‐ Design, Construction, and Operation of the University

Medical Center (UMC), New Orleans, Louisiana FEMA‐1603‐DR‐LA," U.S. Department of Homeland Security FEMA Region VI,

March 2010

Building Projects: The $1.2 billion in new facilities planned for the UMC site were designed to replace the Charity Hospital

complex that was severely damaged during Hurricane Katrina. Clinical, education and research activities

are currently being provided at the Interim LSU Hospital. The UMC mission is to provide quality,

sustainable patient care facilities integrated with university teaching and research, while connecting to

other institutions and the surrounding community (LSU School of Medicine, VA and Tulane School of

Medicine and School of Science and Engineering). The State of Louisiana has appropriated $300 million

for the project with the balance of funding from a combination of FEMA funds and bond sales. The new

campus is proposed to be located on 15 blocks of land located adjacent to the planned new VA Medical

Center, bordered by S. Claiborne Avenue, Tulane Avenue, S. Galvez Street, and Canal Street.

The 424‐bed medical center development is intended to take place in two phases. Three different

concepts for the site have been presented, but the programming remains consistent. The first phase

includes three Inpatient Bed Towers, a Diagnostic and Treatment Facility, an Ambulatory Care Building

(ACB), a Parking Garage and a Central Plant. The remainder of the site will be green space and six

surface parking lots until the future phase commences. Elevated walkways will connect the hospital and

ACB with the existing LSU campus across Tulane Avenue. An elevated walkway over Galvez Street has

also been discussed but plans are on hold. These projects are intended for completion in 2014.

The UMC campus will be a major affiliate of Louisiana State University (LSU) and is considered part of

the LSU system, but will also serve as a teaching affiliate for Tulane University. Other affiliations are

possible as approved by the UMC board.



Specific features of the development include:

Inpatient:

15 inpatient units ‐ (7) Medicine/Surgery, (2) Behavioral Health, (1) Acute Rehab, (3) ICU,

(1) NICU, (1) OB/GYN and Post‐Partum

Departments in Diagnostic & Treatment Facility:

Ambulatory Care Services, Cancer Care, Emergency Department, Surgical &

Interventional, Imaging, Labor & Delivery

Shared clinical opportunities with the VA have been historically important to both institutions. In

addition to a finalized service agreement to share the use of a Linear Accelerator, other suggested

collaborations with the VA include Trauma, Hyperbarics, Mammography, Radiation Oncology, complex

neurosurgical interventions, Lithotripsy and Teleradiology.

Construction of a jointly utilized Central Energy Plant has been discussed with the adjacent VA Medical

Center.

Education/Research: UMC will focus on becoming a world‐class hospital and academic medical center. Leading programs

include Cancer Research, Neuroscience, Neuropathic Pain, Obesity, Heart Disease, Infectious Disease,

Orthopedics and Trauma. Planned collaborations include a focus on Common Brain Trauma and

neurosurgery, Gene Therapy, and Stem Cell Therapy with a focus on spinal cord injury with the VA, and

Cancer Research and Treatment with Ochsner. Nurturing unique resources like the School of Dentistry,

the Regional Forensics Center and the Simulation Center for Telemedicine will also be priorities.

LSU HEALTH SCIENCES


Human Development Center 82,000 sq. ft.* *Data sourced from Louisiana State University Health Sciences Center "Facilities Master Plan LSUHSC‐NO," date 8/3/2004.

Building Projects: The new Human Development Center at LSU's School of Allied Health Professions is currently under construction at the corner of Tulane Avenue and S. Johnson Street. The Human Development Center

focuses on interdisciplinary and interagency collaboration to provide services and support for people

with disabilities. The agency works with the Louisiana Developmental Disabilities Council, the Advocacy

Center, and the LSU Human Development Center, as well as on special projects.



Education/Research: The LSU Health Sciences Center is awarded upwards of $70 million in research grants and contracts per

year and its economic impact in the BioDistrict and greater New Orleans is significant. To expand

existing clinical and research expertise already existing at LSU Health Sciences Center, a number of

specific research centers are proposed to increase collaboration within the institution as well as with

partners in the private sector. The following centers have been proposed: Alcohol and Drug Abuse

Center, Center on Aging, Cardiovascular Center, Molecular and Human Genetics Center, Morial Asthma

Center, Neuroscience Center, and Oral and Cranofacial Center. Future built projects will respond to the

demands of these programs.

TULANE HEALTH SCIENCES


Research Lab ‐ 1430 Building (Renovation) 250,000 sq. ft.* *Data estimated from currently available information

Building Projects: In conjunction with the Tulane University Renewal Plan, which followed Hurricane Katrina, the proposed

building projects for the School of Medicine and School of Science and Engineering are intended to

accommodate state‐of ‐the‐art facilities for current and future researchers for academic and

translational research. The intent of the master plan is to address basic and applied research

opportunities fueled by real‐world health challenges that result in commercial applications.

The first phase of this plan is to renovate the University‐owned 1430 Building, located at LaSalle Street and Tulane Avenue to create immediately‐available, high‐quality research space for existing researchers.

These plans are currently underway.

Education/Research: Tulane researchers benefit from inter‐campus synthesis among the three campuses, and ongoing

research is a University focus among the schools of medicine, science and engineering, public health,

sociology, law, business, the National Primate Research Center, and the Center for Bioenvironmental

Research, among others. This research is strongly supported by the University and research

partnerships are encouraged and facilitated through a number of Research Centers.

Tulane also has existing, positive relationships with other academic institutions in the BioDistrict with

technology transfer agreements in place and joint patents filed. Relations with Delgado consist of a

modest amount of nurse training at Tulane facilities.



UNIVERSITY OF NEW ORLEANS

Education/Research: Although the University of New Orleans (UNO) will not have a physical presence in the BioDistrict, the

faculty at UNO will continue to collaborate with local institutions on research and educational

endeavors. UNO faculty is currently working with Tulane, and is starting a Medical Chemistry PhD

program with LSU Medical Center. UNO Chemistry faculty is currently involved in advanced material

research work involving nanoparticles for targeted drug delivery. An LSU‐UNO joint degree in

Biomedical Engineering has also been proposed. Nanomedicine, targeted drug delivery devices and

biomedical engineering have been significant generators of research commercialization in numerous

University‐related Research Parks across the world.

OCHSNER HEALTH SYSTEM

Education/Research: Although Ochsner has no plans to have a physical presence in the BioDistrict, existing collaborations and

future potential collaborations with BioDistrict institutions will continue. Ochsner is one of the largest

non‐university physician training centers, and supports upwards of 400 medical residents and four

hundred allied health students annually. Ochsner is also a national leader in medical research with more

than three‐hundred research trials and two‐hundred annual publications in medical literature.

XAVIER


New Chapel 10,000 sq. ft.*

New Convocational Center Proposed to seat 5,000* / 100,000 sq. ft.**

New Parking for Convocational Center 500‐2000 cars* / 225‐900,000 sq. ft.**

University Expansion for Fitness 90,000 sq. ft.**

New Dormitories (5) Mix of low‐to‐mid rise buildings* / 450,000 sq. ft.**

New Auditorium & Parking 300,000 sq. ft.**

Pedestrian Bridge over Washington Ave Canal @

Fern Street

N/A

Pedestrian Bridge over S. Carrollton Ave N/A

Street Car Extension N/A

* Data sourced from Xavier University of Louisiana ‐ Campus Master Plan, dated August 1, 2007.




Building Projects: In an effort to strengthen the cohesiveness of the internal campus, and to interact with the immediate

neighborhood and institutions beyond, Xavier University completed a master plan study for both on‐

and off ‐campus improvements to be completed by the year 2025. The University's campus is made up

of four "patches" of growth and the intention for the immediate development is to begin to unify these

distinct regions with new development. Nine new buildings are scheduled to be completed by 2015, in

addition to site interventions intended to better connect pedestrian traffic between the campus zones

uptown and downtown of Washington Avenue for a total of approximately $70 million worth of

development. Extension of the existing street car line along Carrollton Avenue would also help to

connect the campus internally and make it more convenient to travel to the rest of the BioDistrict.

A recent $21 million, 65,000 sq. ft. expansion of the pharmacy building was undertaken to expand

program offerings as well as meeting accreditation standards of the Accreditation Council for Pharmacy

Education, but no new buildings are currently planned by the School of Pharmacy. Ample space around

the pharmacy building has been allocated for future expansion, which is anticipated with additional

growth of the College.

Education/Research: Xavier is interested in continuing their legacy as a top educator of African American chemists,

pharmacists, and biologists. Maintaining a pool of innovative scientists will allow the institution to

continue to develop programs in bio‐innovation, energy, nanotechnology, cancer research and drug

delivery. In the future, Xavier is interested in creating a Center for Translational Research and Medicine

using the components available in the BioDistrict. Xavier already has a drug research and development

pipeline in place, and is interested in the potential presented by generic drug development and

production.

Xavier already has relations with neighboring academic institutions (LSU, Tulane) via participation in

research activities at the Louisiana Cancer Research Consortium, and is interested in continuing to

develop and collaborate both with academic institutions and businesses to advance their mission.

Community outreach on a more local level continues to be a mutually beneficial priority.

Additional teaching interest is focused on the teaching of math and science, focused on middle and high

school students.

DELGADO COMMUNITY COLLEGE


Replacement for Sydney Collier Campus Previously 260 students ‐ 65,000 sq. ft.* *Data estimated from currently available information



Building Projects: Delgado Community College has no current plans to expand their real estate footprint as their student

population is not expected to outgrow their facilities in the near‐term. The Sydney Collier Campus has

been closed since Hurricane Katrina and has yet to be replaced, which has been noted by other

institutions as important to the development of local workforce for the growing BioDistrict. This is an

economic priority for the BioDistrict and we have included it as a strong possibility for development over

the next five years, but is by no means sure. No location has been identified for the replacement

campus, and the development may not occur within the BioDistrict.

Education/Research: Delgado considers itself to be a self ‐sufficient and important provider of trained work force for New

Orleans, and intends to analyze the various projected skilled workforce needs of the new VA and UMC

developments to inform Delgado’s curricular offerings. Strong connections to the local hospitals will be

important for clinical training of nursing and other specialists. No specific expansion of programs or

associated additional space needs has yet been identified, however.

Years 5‐10 (2016‐2021)


Building Projects: As a self ‐sustained development, the VA's investments will be made in a single phase and no new built

work is planned to follow.

Education/Research: The VA will continue to sponsor research and education consistent with their mission, but no specific

new facilities are foreseen between 2016 and 2021.

UNIVERSITY MEDICAL CENTER (UMC)


ACB (Clinic) 325,000 sq. ft.*

Parking Garage 1,400 Parking Spots*

Ambulatory Care + Retail (2) 518,000 sq. ft.*

Inpatient Towers (2) 375,000 sq. ft.*

Diagnostic & Treatment Facility 500,000 sq. ft.* *Data estimated from currently available information



Building Projects: Phase Two of the UMC development replaces surface parking "placeholder" sites with built expansion of

hospital functions. Patient towers and diagnostic and treatment facilities are expanded in a spine

through the site, while ambulatory care buildings with first‐floor retail will flank the site on Canal Street

at Claiborne Avenue and Tulane Avenue at Galvez Street. An additional parking garage and clinic

building are to be located along Tulane Avenue.

Education/Research:

In the future, synergy with the VA for gene therapy and stem cell therapy with spinal cord injury

interests is desired. The UMC also intends to rebuild its lung transplant program, and strengthen the

Public Hospital network for clinical trials. Collaboration with industry is also seen as a desirable

endeavor. At this time, no specific new space needs or opportunities have been identified associated

with these desired collaborations.

LSU HEALTH SCIENCES


Student Housing Cluster (1542 Clinical Ed Site) TBD

Major Research Building 200,000 sq. ft.*

Faculty Practice Building (Delta Towers Site) 60,000 sq. ft.*

Medical Office Building 60,000 sq. ft.*

250 Bed Hotel & Conference Center 320,000 sq. ft.* *Data estimated from currently available information Building Projects: Mid‐term future activities at LSU's Health Sciences campus could include a number of investments

encouraged by success in the early stages of the BioDistrict development, including a major new

research building. The laboratory facilities in the old Medical Education Building have not been

upgraded in thirty years and LSU will need to have modernized laboratory space to remain competitive

with surrounding institutions. LSU would like to use the older, renovated laboratory space to act as an

incubator for junior faculty research activities and to respond to the demands of the programs identified

in the "LSU Health Sciences Years 1‐5" section of this paper. Critical mass for a new biomedical research

building at comparable research university academic medical centers typically encompasses

approximately 200,000 sq. ft.

In response to the adjacent UMC development, LSU is also considering a medical office building

(typically in the 150,000 sq. ft. range) and a hotel and conferencing facility. Any development of the

latter kind should be informed by peer institution experience and projections developed by the rest of

the AECOM Team.



In addition to the development of bio‐medical space, several other projects have been mentioned.

Consolidation of the student residential population is anticipated to occur at the current site of the 1542

building, near Delgado's campus. Centralizing student housing at this site would call for construction of

several new buildings adjacent to an existing residential facility. Additionally, a Faculty Practice building

could be constructed at the current Delta Tower site (size to be determined.)

Education/Research: Refer to University Medical Center 5‐10 Year period for planned LSU Education/Research activities."

TULANE HEALTH SCIENCES


Research Building 110,000 sq. ft.*

Research

Building

110,000

sq.

ft.*

Research Building (JBJ Renovation) 110,000 sq. ft.* *Data estimated from currently available information

Building Projects: The priority for the next phase of Tulane University capital projects is to increase funding for research,

facilitated by creating new multi‐disciplinary laboratory space for existing and future researchers. Three

research building projects are proposed over time‐ two new facilities and a renovation of the University‐

owned JBJ Building, adjacent to the 1430 Building on Tulane Avenue. Based on the size of the institution

and the projected capability of a University of Tulane’s size to recruit new research faculty teams, we

would anticipate the new research buildings to occupy approximately 110,000 sq. ft. each.

Education/Research: Strategic planning is directed at doubling sponsored research activity by the year 2020.


Building Projects: None currently projected in the BioDistrict.

Education/Research: Collaboration with the VA, UMC and other institutions in specific educational and research activities is

expected to be ongoing, but is not predicted to produce new space needs.



XAVIER


New Campus Lawn N/A

Central Plant Upgrades N/A

New Center for Academic Success 12,000 sq. ft.** New Lifestyle Center & Parking Building 16,000 sq. ft.Lifestyle Center*

Gert Town Revitalization Initiatives Off ‐campus development, scope TBD*

Carrollton Lifestyle Center Development Initiative Off ‐campus development, scope TBD*

Xavier Triangle Revitalization N/A

*Data sourced from Xavier University of Louisiana ‐ Campus Master Plan, dated August 1, 2007.


Building Projects: $2.4 million in construction activities are scheduled to be completed on the Xavier campus in the

referenced time period. Real estate acquisition and selective demolition will make way for new

developments intended to create a fully‐developed core and campus identity. Utility capacity will be

increased to levels that will provide redundant and consistent systems for classrooms and labs. The

Center for Academic Success is intended to bolster student‐oriented support functions to increase

retention and graduation rates. Based upon similar facilities at peer institutions, it is anticipated that

this would require a modest space increase not exceeding 12,000 sq. ft.

Education/Research: It is anticipated that Xavier could experience a significant increase in pharmaceutical research and

consultation activity if a new Pharmaceutical Packaging/Manufacturing facility is developed adjacent to

their campus. This potential development is highlighted in the light industrial analysis provided in other

sections of Working Paper IV.

DELGADO

Building Projects: Delgado has stated that there is no reasonably foreseeable pressure to expand current campus facilities;

however some mention has been made of increasing the availability of student parking and

transportation between campuses. In addition to this basic desire, it is possible that with growth in the

BioDistrict, increased demand on the Delgado resources for workforce training in healthcare and

research‐related employment skills could prompt expansion of programs and therefore real estate

footprint.



Education/Research: Training in sustainable technologies and, potentially, pharmaceutical‐related skills could also become a

part of the curriculum if demand is created, and Delgado would be interested in industry partnership to

assure successful investments.

Years 10‐20 (2021‐2031)


Building Projects: None foreseen. If revenues are available, continued aging of their core population segment could drive

modest growth in research activities, but these could be performed at University research sites.

Education/Research: Continuation of programs in education and research related to the VA’s healthcare population segment.

UNIVERSITY MEDICAL CENTER (UMC)

Building Projects: None identified. If the UMC succeeds in its mission to become a world‐class academic medical center,

patient visits and research activity may continue to grow, but it is doubtful it would exceed the building

capacity already developed in the preceding 15‐year period of major growth.

Education/Research: Continuation of ongoing education and research missions.

LSU HEALTH SCIENCES

Building Projects: None have been identified. If the UMC succeeds in its mission to become a world‐class academic

medical center, there would be pressure for the School of Medicine and other allied health professions

to grow, but the effect on enrollment and building capacity has not been estimated.



Education/Research: Continuation and potential expansion of existing programs, dependent on success of UMC, are

expected.

TULANE


Academic & Parking Building 90,000 sq. ft.*

Residential or Academic & Parking Building 180,000 sq. ft.*

Hospital 300,000 sq. ft.*

Residential & Parking 350,000 sq. ft.*

200‐bed Extended Stay Hotel 300,000 sq. ft.* *Data estimated from currently available information Building Projects: The long‐term focus of Tulane's development efforts at the Downtown Campus are on making the

University's presence more cohesive and campus‐like. New residential and academic buildings and an

infill of non‐University residential and retail are intended to knit the campus into a more active and well‐

identified community.

In response to growing reputation of the BioDistrict, as well as an expected significant increase in

residential population, a new hospital has been proposed by Tulane along Cleveland Avenue between

LaSalle and S. Liberty Street, as well as a 200‐bed extended stay hotel. Any hospitality development of

this kind should be advised by peer institution plans and projections made by the AECOM Team.

Education/Research: If the UMC, VA and other BioDistrict institutions are successful as planned, there will be predictable

pressure on Tulane School of Medicine clinical education and research to grow. However, it is not

predictable that significant additional space will be required beyond what has been developed in the

preceding period of planned, substantial growth.


Building Projects: No new building anticipated.



Education/Research: It is anticipated that as a strong healthcare provider and research institution, Ochsner will collaborate

substantially in facilitating success of other BioDistrict institutions and businesses.

XAVIER


New Recreation Fields & Tennis Complex 20,000 sq. ft. Tennis Complex & 6 Recreation

Fields*

Pine Street Corridor Improvement & Bridge

Expansion

N/A

*Data estimated from currently available information Building Projects: The final phase of development outlined in Xavier’s long‐term master plan is a $3.5 million investment in

completion of the University campus expression. Selective demolition, the development of fields and

lawns, and improvements to the pedestrian experience complete the University's vision for arrival and

navigation through the Xavier campus. If off ‐campus developments proceed as anticipated, the zone

surrounding Xavier could potentially be an active, healthy community that engages students and

residents, setting a model for robust recovery in New Orleans.

Education/Research: Continued robust development of Xavier’s Pre‐Med and Pharmacy curricula could occur if strong

collaborations with other BioDistrict institutions and pharmaceutical manufacturing evolve successfully.

DELGADO


Additional Workforce Training/Instruction Space 150,000 sq. ft.

Building Projects: Although Delgado has not provided specific growth projections, it is predictable that, if successful, a

revitalized BioDistrict will create substantially increased workforce‐training demand that will necessitate

educational facility growth at least comparable to a medium‐sized new classroom /office facility.

Education/Research: As noted above.



Conclusions:

It is worth special note that the Ochsner system has evidenced significant interest in

collaborating on research studies. This, as well as similar interest by Pennington, can contribute

substantially to the success of other research entities that are physically located within the

BioDistrict.

VA, UMC, LCRC and New Orleans BioInnovation Center will create common sites for institutional

collaboration.

Development of VA, UMC, LSU, Tulane, Delgado Nursing School and Xavier campus identities

within an overarching and cohesive BioDistrict identity will require substantial development of

open green spaces, landscape, hardscape, alternative transportation connections and pathways,

signage and lighting as well as new and renovated buildings.

Joint investments in public transportation and neighborhood/community residential,

recreational and entertainment development will strengthen all institutions and businesses in

the BioDistrict.

If “critical mass” is achieved in the BioDistrict, it will predictably generate research outcomes

that can be commercialized. Other sections of this report address the issue of predicting the

level of new commercial activity this may produce.

At this time, the data regarding new short‐ and long‐term employment projections are not

finalized; however, it is a concern that workforce‐training demands have not as yet been

sufficiently gauged and need additional refinement. These projections may produce more

building demand than has currently been predicted.

Proposed developments highlighted in this Section of the report total over 6 million sf of built

space and also anticipate a substantial increase in new open‐space requirements in the overall

development of the BioDistrict over the 20‐year period analyzed here.



5 Year Activities (2016)

Area

VA Sites Research Building (Dixie Brewery Renovation) 130,000 sf with 27 available lab units

Rehab & Transitional Living 250,000 sf

New Residential Facility 250,000 sf

Existing Residential Facilities (Renovation) (4) 4,000 sf

Outpatient Clinic 400,000 sf

Inpatient Tower 275,000 sf

Administration (Pan Am Building Renovation) 2 2,00 0 sf dedicated for research

7,000 sf dedicated conference & workspace

ER & Walk‐In 250,000 sf

Diagnostic & Treatment Facility (2) 250,000 sf

Pumping Station 1,000 sf

Central Plant 200,000 sf

Patient Parking Garage 1,000 cars

Staff Parking Garage 1,000 cars

UMC Sites Inpatient Towers 424 inpatient beds; 560,000 SF

Diagnostic & Treatment Facility 740,000 SF

ACB (Clinic) 259,000 SF

Parking Garage 6 floors ‐ 5 floors of parking with 1,400 spaces, helipad on 6th floor

Surface Parking 1500 parking spaces

Central Plant TBD ‐ potentially shared with VA Medical Center

Elevated Walkways Connect ACB and hospital to existing LSU campus

Other LSU Health Sciences Human Development Center 82,000 sf

Other Tulane Health Sciences Research Lab ‐ 1430 Building (Renovation) 250,000 sf

Ochsner None Identified

Xavier New Chapel 10,000 sf

New Convocational Center Proposed to seat 5,000 / 100,000 sf

New Parking for Convocational Center 500‐2000 cars / 225‐900,000 sf

University Expansion for Fitness 90,000 sf

New Dormitories (5) Mix of low‐to‐mid rise buildings / 450,000 sf

New Auditorium & Parking 300,000 sf

Pedestrian Bridge over Washington Ave Canal @ FerN/A

Pedestrian Bridge over S. Carrollton Ave N/A

Street Car Extension N/A

Delgado Replacement for Sydney Collier Campus Previously 260 students ‐ 65,000 SF

INSTITUTIONS, AGENCIES &

LAND USES

Anticipated Institutional Growth: 5‐10‐20 years

Note: Refer to full document text for source references and further description of anticipated projects described in this chart.



Anticipated Institutional Growth: 5‐10‐20 years


Area

VA Sites None Identified

UMC Sites ACB (Clinic) 325,000 sf

Parking Garage 1,400 Parking Spots

Ambulatory Care + Retail (2) 518,000 sf

Inpatient Towers (2) 375,000 sf

Diagnostic & Treatment Facility 500,000 sf

Other LSU Health Sciences Student Housing Cluster (1542 Clinical Ed Site) TBD

Major Research Building 200,000 sf

Faculty Practice Building (Delta Towers Site) 60,000 sf

Medical Office Building 60,000 sf

250 Bed Hotel & Conference Center 320,000 sf

Other Tulane Health Sciences Research Building 110,000 sf

Research Building 110,000 sf

Research Building (JBJ Renovation) 110,000 sf


Xavier New Campus Lawn N/A

Central Plant Upgrades N/A

New Center for Academic Success 12,000 sf

New Lifestyle Center & Parking Building 16,000 sf Lifestyle Center

Gert Town Revitalization Initiatives Off ‐campus development, scope TBD

Carrollton Lifestyle Center Development Initiative Off ‐campus development, scope TBD

Xavier Triangle Revitalization N/A

Delgado None Identified


Area

VA Sites None Identified

UMC Sites None Identified

Other LSU Health Sciences None Identified

Other Tulane Health Sciences Academic & Parking Building 90,000 sf

Residential or Academic & Parking Building 180,000 sf

Hospital 300,000 sf

Residential & Parking 350,000 sf

200‐bed Extended Stay Hotel 300,000 sf


Xavier New Recreation Fields & Tennis Complex 20,000 sf Tennis Complex & 6 Recreation Fields

Pine Street Corridor Improvement & Bridge Expansi N/A

Delgado Additional Workforce Training/Instruction Space 150,000 gsf


LAND USES


LAND USES

Note: Refer to full document text for source references and further description of anticipated projects described in this chart.



Case Studies Where information is not currently available for program size of identified future building projects, we

have used Case Studies of projects of similar institutions to arrive at an approximation of the sizes of the

planned facilities, some of which are projected 10 to 20 years into the future.

200,000 SF +/‐ Science Building


90,000 – 100,000 SF +/‐ Sports and Recreation Building Addition/Renovation/Expansion



Boston UniversityLife Science and Engineering Building

Boston, Massachusetts

(Cannon Design)

The 184,000 sf Boston University Life Science and Engineering Building houses research labora-

tories dedicated to the elds of biology, chemistry, biomedical engineering, and bioinformatics.

Attracting the private, corporate, and governmental research interests integral to the long-term

success of Boston University’s science program, the LSEB facilitates innovative academic-industry

collaborations focused on specic and specialized research goals.

The building’s exible lab design supports an interdisciplinary approach to biochemistry and

molecular biology research, allowing division and allocation of space according to research inter-

ests instead of by department and ensuring that the building can accommodate technological

change for decades to come. Cannon Design developed and implemented a basic oorplate

building block and a recongurable lab module that allowed designers to easily accommodate

revisions to the original program resulting from changes in the university’s research initiatives and

sta throughout the project.

Accommodating the university’s goals for sustainable design practice where possible, the building

is approximately 65 percent e cient and sports a slab-to-slab height of only 13’ 4” - extremely

tight for a laboratory building - with services carefully arranged to support a task/ambient lighting

scheme that provides properly distributed, energy-e cient illumination. Built to t a dense urban

site, a specic square footage requirement, and the city of Boston’s mandate to minimize building

height (to avoid casting shadows on existing neighborhoods), the building capitalizes upon

existing pedestrian pathways between the university’s north and south campuses to connect theurban campus to its larger physical context in compliance with an institutional master plan for the

science sector’s continued growth including eventual construction of a quarter-mile section over

the adjacent Massachusetts Turnpike.

A central receiving and chemical-dispensing facility serves the Life Science and Engineering

Building and neighboring laboratory buildings on both sides. Receiving and dispensing areas

meet or exceed all applicable codes as well as Boston University health and safety requirements.

All security issues, including the recently enacted Patriot Act, have been carefully addressed.



University of Kansas Medical Center

Kansas Life Sciences Innovation CenterKansas City, Kansas

(Cannon Design)

Colleges and universities today are faced with the challenge of continually reinvigorating

their physical and intellectual capital in a period of diminishing public dollars. Cognizant

of this, the University of Kansas Medical Center has committed to a major construction

program that will enable the institution to pursue leading-edge research in medical science

and biotechnology. Envisioned as a new center of research for an expanding urban

campus, the $50 million Kansas Life Sciences Innovation Center (formerly, Biomedical

Research Center) is an adaptive, dynamic, and integrated environment, responsive to

current research needs as well as anticipated future developments. Envisioned as the new

center of research for an expanding urban campus, the 202,500 gsf facility is a primary

example of the University of Kansas’s commitment to innovative life-science research.

Located on the edge of an expanding medical campus, the Center is an architectural

showpiece that acts as a new gateway to the campus beyond. Designed to incorporate

future development and expansion of an existing skywalk system, the building is a campus

connector with a conference center and public amenities. Research as well as public

areas benet from generous informal interaction spaces with access to views and natural

light--proven aids in promoting an eective research culture and in recruiting and retaining

talented professionals.

Research disciplines and core laboratories in the new facility include neuroscience,

reproductive biology, structural biology, toxicology, bioinformatics, genomics, proteomics,and a 15,000 sf laboratory animal center. The laboratory planning is e cient and modular,

allowing for flexible assignments of research teams, while “neighborhoods” of research

o ces, breakout spaces, and lab suites create dynamic environments for multidisciplinary

teaming and the development of focused research centers. Core support spaces and

shared equipment areas are centrally located on each oor. Clinical translational research

is consolidated at the ground oor for discreet public accessibility.



Saint Louis University

Edward A. Doisy Biomedical Research CenterSt. Louis, Missouri

(Cannon Design)

Faced with a need to upgrade the quality of its campus research facilities, the Health

Sciences Center at Saint Louis University initiated a major evaluation program of all

current medical research facilities on campus. Building upon its nationally recognized

strengths in the study of neuroscience and aging, cardiovascular and pulmonary function,

and immunology and infectious diseases, as well as its emerging strength in cancer and

molecular biology, the university plans to accelerate its steady growth in funded basic

medical science research and clinical translational research. To help realize this goal, the

university commissioned Cannon Design and the laboratory consulting firm of HE+RA to

plan and implement its vision.

The centerpiece of this plan is the Edward A. Doisy Biomedical Research Center, a new

health science research building of 206,000 sf that will bring scientists from several sites

together to pursue collaborative, multidisciplinary research initiatives at a single state-of-

the-art facility. In addition, plans include consolidation and renovation of approximately

75,000 sf of existing research space in the School of Medicine building to create a clearly

dened, high-quality research area, improving security, productivity, and internal commu-

nications for researchers. Programs in biodefense, virology, immunology, neurosciences,

liver disease, molecular biology, cancer and cardiovascular and pulmonary diseases will

flourish, as will burgeoning programs in genetics, proteomics, and genomics. A large

ground oor wing of the building is a Clinical Trials Center, enhancing Translational Research

eectiveness.

From this collaborative planning process, consensus decisions are emerging that will posi-

tion Saint Louis University to aggressively advance its current health science research

initiatives and respond quickly and exibly to emerging opportunities and needs.



University of Michigan Health System

Clinical Pathology and Research BuildingAnn Arbor, Michigan

(Cannon Design)

Cannon Design has been retained by the University of Michigan to design a major new facility that

will dene the gateway to the nationally recognized School of Medicine campus. We are providing

full planning, programming, architecture and engineering services for a new 275,000 gsf research

and clinical laboratory building, as well as examining overall site opportunities. A major tenant

of the new building will be the Pathology Department. Clinical laboratory activities, research

laboratories, seminar and conference rooms and o ces will be located in the new building.



Hauptman Woodward

Medical Research InstituteBualo, New York

(Cannon Design)

The Hauptman-Woodward Structural Biology Research Center is located on a site at the south-

western corner of the Bualo Niagara Medical Campus, between Ellicott and Washington Streets,

and acts as the southern gateway to the Bualo Niagara Medical Campus. The front door to the

facility is on Ellicott Street while the parking and service entrances are accessed via Washington

Street. A proposed enclosed bridge linking the HWI research facility and the proposed Roswell

Park Cancer Institute Research Facility and the UB Center for Bioinformatics will facilitate scientic

collaboration among the researchers.

The key organizational element of the building embraces the principle of scientic collaboration.

The building is separated into two main programmatic components: research labs, and o ce and

multifunction support space. Separating the o ces and support functions from the research lab

allows each discrete space to be built cost eectively in support of the guiding principles of the

project.

The two programmatic components of the facility are housed in separate volumes that are

connected by a glass-covered atrium that visually links the facility to the other world-class institu-

tions of the Bualo Niagara Medical Campus. Multifunctional support spaces line circulation paths

that thread through the atrium between the o ce and laboratory blocks, creating an environ-

ment of visibility and interaction among scientists throughout the campus. A campus bridge leads

to the facility, allowing the atrium to be a central gathering space for all facilities.



University of Kansas

Multidisciplinary Research BuildingLawrence, Kansas

(Cannon Design)

Cannon Design, in association with Gould Evans, was commissioned to design a new

multidisciplinary research building (MRB) on the University of Kansas West Campus in

Lawrence, Kansas. The new 106,000-sf research facility, located adjacent to the existing

Structural Biology Center, provides a multidisciplinary “think tank” for researchers to share

ideas and promote the sciences.

The design of the facility is driven by the functional needs of a variety of research projects

and disciplines, including chemistry, pharmaceutical chemistry, medicinal chemistry,

molecular bioscience, mechanical and electrical engineering, computer science, and

geology. The project also includes space for researchers working with hazardous organ-

isms and pathogens in a Bio Safety Level 3 laboratory suite, an environmentally stable

isotope lab and biochemistry lab for geological research, as well as clean room facilities for

nanofabrication research.

In traditional research facilities, labs line the hallways, with faculty o ces inside or next to

them. In the MRB, labs are located along two hallways, but o ces have been consolidated

at one end of the building. Space at the opposite end and between the hallways functions

as shared space that fosters discussion among colleagues from different disciplines. The

conguration of these spaces is designed to support teams of researchers with laboratories,

work rooms and o ces, meeting and conference rooms, equipment and research support

spaces, and clean rooms. Because multiple disciplines must function within the facility,special consideration has been given to utility and mechanical distribution, including waste

management, security, and life safety systems.

The new building, constructed on a fast track schedule to maximize federal subsidies,

serves a vital function as an anchor point at the edge of the campus, acting as a key

component in fullling the vision of the West Campus Master Plan.



90,000 – 100,000 SF +/‐ Sports and Recreation Building

Addition/Renovation/Expansion



Texas Christian UniversityStudent Recreation Center

Fort Worth, Texas

(Cannon Design)

When Rickel Hall, the existing recreation center on the Texas Christian University campus, became

too small to accommodate increased student demand, the university commissioned Cannon

Design to program and design a facility that would create a new, positive, and dynamic image for

campus recreation.

The design for the recreation center includes 114,000 sf of new construction and 121,000 sf of

renovated space. New construction includes a new atrium lobby, a three-court gymnasium, a

12,000 sf weight and tness center, a climbing wall, racquetball/squash courts, a multipurpose

room, and a mezzanine-level running track. Other amenities include a remodeled two-court

gymnasium that serves as an intercollegiate volleyball venue, recreation space, and a refurbished

natatorium with a 25-yard, six-lane pool and a diving well.

In addition to the indoor facilities, an outdoor courtyard was created between the existing natato-

rium and the new three-court gymnasium. The courtyard contains an outdoor recreational pool,

an all-purpose sport court, landscaped terrain, and seating and lounging areas ideal for cookouts

and other forms of social interaction.

In association with Hahnfeld Associates.



A 100,000 sf expansion and 40,000 sf renovation of Cal Poly San Luis Obispo’s recreation center

relieves increasing demands on campus recreation facilities while bolstering student recruitment

and retention. Making the most of a tight site, the new construction wraps the existing building

with a unied, open space that richly interweaves interior and exterior spaces with long diagonalviews. The program includes a two-court gymnasium, a one-court MAC, racquetball courts, a

20,000 sf exercise area, administrative o ces, and a running track. Renovations include remod-

eling of locker rooms and conversion of a tness area to enclosed tness studios.

The project achieves the university’s goals of an integrated recreation center with an improved

entry approach and high visibility. A tall, north-facing entry terminates a major campus axis and

attracts passersby. Visibility and access to outdoor activities, including an existing swimming pool,

are also enhanced. Metal-panel and exposed-concrete cladding with large expanses of open

curtainwall dovetail with the stucco, metal-panel, and concrete of existing structures. Curved

metal roofs echo the silhouette of surrounding coastal hills.

Designed to achieve a minimum of LEED Silver certication, the facility incorporates expanses of

shaded glazing to ood the interior with glare-free natural light. When practical, tness studios arenaturally ventilated. An indirect-direct evaporative-cooling air-handling system, which operates

most e ciently with 100% outside air, makes optimal use of San Luis Obispo’s mild, dry climate.

California Polytechnic State University, San Luis Obispo

Recreation Center Renovation/ExpansionSan Luis Obispo, California

(Cannon Design)

working paper iv appendices

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