Working Paper 4

Programming Appendices

BioDistrict New Orleans

September 2010
2 Working Paper 4 Table of Contents September 2010

Table of Contents

Section:
01 02 03
Appendix A Appendix B Appendix C

Real Estate Biosciences Educational

Programming Programming Institutions and
Hospital Facility
Programming
 3

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.

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, Bright
Moments, Cannon Design, CBRE, Chester Engineers
and The Ehrhardt Group. Special thanks also to GCR
Consulting, whose data supported the development the
programming summary.
Appendix A:
Real Estate
Programming
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

303 E Wacker Dr., Suite 600

Chicago, IL 60601
312.373.7558 www.aecom.com
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 Tables
Table 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
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 and
supportive 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 1,280,000 418,000 418,000
Retail 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 -
500-2,000
Xavier Parking Garage - -
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 more
than 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 footage
related 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 12,707
Source: 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 of
the 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 12,707
Persons in Group Quarters (excluding correctional facilities) 1,864
Households 4,667
Average Household Size 2.33
Median Household Income $25,327
Per Capita Income $16,209
Housing
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
BioDistrict
Population 15,900 16,721
Households 4,623 4,872
New 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 - 18,000
Private R&D, Medical Office, and Manufacturing 4,000 - 5,000
Total Employment 21,000 - 23,000

Hospital Beds and University Students

Total Students 7,600
Hospital Beds 1,000
Patient Visits
Outpatient 1,000,000
Inpatient 75,000
Source: GCR interviews

*Notes:
1) Figures are rounded
2) Total employment figures include full 20-year buildout
3) 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 56,696
Testing 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.

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Page 10
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 13
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 15
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 VA
Southeast Network.

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Page 17
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 5,290
Persons in Group Quarters 1,815 984 1,434
Households 4,947 3,637 2,425
Average Household Size 2.40 1.61 1.59
Median HH Income $33,620 $12,606 $22,237
Per Capita Income $19,571 $13,149 $17,107
Housing
Owner 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/a
Total 18,726 11,417 13,904
Hospital Beds 1,831 1,375 1,921
Patient 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 in
the 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 Expanded

Category 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 data
within 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) 1.1

Av. 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 $2,678
Convenience Goods $40.10 $1,925
Total Retail $95.90 $4,603
Source: 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 $112
Personal Care/ Drugstore 17% $6.99 $336
Newspapers & Magazines 8% $3.26 $157
Groceries 23% $9.33 $448
Snacks, Candy, Soft Drinks 19% $7.69 $369
Other 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 Trips

Lunch 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 $1,219
Dining/ Drinks $13.00 $624
Total F&B $38.40 $1,843
Source: 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 $226
Fast Food 19% $4.71 $226
Deli/ Grocery 27% $6.85 $329
Cafeteria 3% $0.86 $41
Food Court 4% $1.00 $48
From 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 108 390
IMD 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 from
the 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 $63,466,219
Food 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

5-Year 10-Year 20-Year

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 24
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

BioDistrict 906
Current Large Multi-Family Rental
Surrounding Area 1,692
BioDistrict 134
Pending (Since 2006)
Surrounding Area 1,575
BioDistrict 212
Pending (New)
Surrounding Area 1,068
BioDistrict 1,252
Total
Surrounding Area 4,335
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 26
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 new
development projects as part of the BioDistrict Plan.

Table 17: Comparison of Employment Levels to District Households

Employment/Households
BioDistrict 3
IMD 3
Memphis 3
UAB 5
Source: AECOM
Note: Ratios based on Major Facility Employment

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 0
GNOBEDD 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-Year
Owner Occupied 25 300 300
Rental 1,200 100 100
Increment Total 1,225 400 400
Cumulative Total 1,225 1,625 2,025
Source: AECOM
Note: Numbers may not add due to rounding

Page 28
VI. Long-Term Stay Facilities and Meeting Space
New Orleans is a significant national tourist destination, and has a notable hotel stock, convention
space, and meeting space. With the development of the BioDistrict, there may be a need for these
ancillary resources to support the hospital and medical center visitors. However, as the table below
shows, occupancy is currently around 60% for New Orleans hotels, and adding to this market might
be unnecessary as well as difficult in the current environment. Nevertheless, long-term stay for
medical related visits generally requires a different offering and different price point than is currently
available in the New Orleans market.

Table 20: New Orleans Hotel Occupancy

2009
Occupancy 60.0%
ADR (Average Daily Rate) $132.69
RevPAR (Revenue per Available Room) $79.67
Source: PKF Hospitality Research (Excludes New Orleans East)

As opposed to strictly developing new hotel space, there may be a need for long-term stay
facilities that could be directly associated with the BioDistrict and that would not directly compete with
surrounding area hotels. There is currently only one long-term stay facility in the BioDistrict, and this
offering is notably different than comparable medical-related long-term stay facilities in other medical
districts reviewed as part of this analysis.

Table 21: Existing BioDistrict Long Term Stay Facilities

Hotel Name Address Rooms Low Rate High Rate
Clarion Inn & Suites New Orleans 1300 Canal St 157 $129.00 $399.00
Source: GCR & Associates, Inc.

AECOM worked to estimate the future demand for patients and families that may require long-
term stay facilities. Analysis started with estimates of medical visitors from outside of the
metropolitan New Orleans area, and that might use or require some sort of long-term stay facilities.
Based on interviews with current facilities in the BioDistrict, the following table illustrates these
estimates.

Table 22: Patients Visiting BioDistrict Hospitals from Outside New Orleans
Hospital Est. Percentage Outside Metro New Orleans
Tulane Hospital 15-18%
UMC Hospital 12%
Source: Based on GCR interviews

With over 1.1 million patients expected to the BioDistrict, this means that anywhere from 130,000-
200,000 could be coming from outside New Orleans based on these estimates. If some number of

Page 29
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 the
patient 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 $189
Residence Inn New Orleans Downtown 345 St Joseph St 231 $139 $209
Marriott Execustay 925 Common 925 Common n/a $2,300/mo $3,200/mo
Gravier 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
Low High
Name Location Rooms Rate Rate Medical District
Extended Stay Portsmouth Naval Medical
America Hotel Chesapeake, VA 132 $55 $75 Center
Main Stay Suites Houston, TX 92 $75 $199 Texas Medical Center
Cleveland Guest
House Cleveland, OH 231 $99 $124 Cleveland Clinic
Johns Hopkins Medical
McElderry House Baltimore, MD 40 $66 $85 Complex
IMD Guesthouse Chicago, IL 9 $40 $50 Illinois Medical District
Duke Tower Durham, NC 100 $69 $85 Duke Medical Center
Ronald McDonald University of Chicago
House Chicago, IL 22 $25 - Children'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 15 153
Memphis 235 5 48
UAB 121 3 26
Source: AECOM
Note: Ratios based on Major Facility Employment

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.

Page 31
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) 90 120
Source: 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 144 791,101
Source: 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 32
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 well
as 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 15
Total Rentable Building Area (RBA) 7,356,396 467,452
Occupied Square Foot 4,938,649 421,055
Occupied 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.

Page 34
Table 30: Comparison of Medical Office Space Capacity
Medical/Employment
BioDistrict 26
IMD 194
Memphis 251
UAB 18
Source: AECOM
Note: Ratios based on Major Facility Employment

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

5-Year 10-Year 20-Year

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

Page 35
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 the
Superdome 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 36
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.

Page 37
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

Page 39
  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.

Page 40
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

Page 41
  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 42
 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 43
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 in
conjunction 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.

Page 44
 5

Appendix B:
Biosciences
Programming
TASK 4:
BIODISTRICT NEW ORLEANS
BIOSCIENCES PROGRAMMING
STRATEGY

Submitted by;

CBRE STRATEGIC CONSULTING

Submitted to;

AECOM

August 24, 2010

 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

2
PROGRAMMING RECOMMENDATIONS
Based on the extensive research that CBRE has done relative to the life science and medical research
expertise in New Orleans and Louisiana, as well as case study research into the evolution of other life
science research park clusters across the United States, we offer the following programmatic
recommendations for the BioDistrict master plan.

YEAR 1-5
The concurrent development of the Louisiana Cancer Research Center (LCRC) and the New Orleans
BioInnovation Center (NOBIC) incubator facility, along with the proposed VA hospital and
University Medical Center (UMC) complexes, represent a massive influx of new medical office and
research lab space for a community such as New Orleans. With expected budget cuts in research at
LSU, Tulane and other institutions – there will likely be little or no demand for new private sector
space during the next 5 years. CBRE has also assumed that Tulane and LSU will accommodate their
internal 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 is
important to note that we have not been able get an inventory of all the buildings in the Charity
complex to determine what can be reused.

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

1. Pharmaceutical packaging and manufacturing - 50,000 to 200,000 sq. ft. industrial facility
within the industrially zoned land riverside of Xavier University (part of a +50-acre pharma
industrial area)
2. Regenerative Sports Research Facility – a 100,000 sq. ft. facility for treatment of veterans, as
well as the New Orleans Hornets and New Orleans Saints (part of a 25-acre campus to be
located 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 state
visitors/customers.

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

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

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

YEAR 6-10
Assuming there is successful collaboration between LSU, Tulane, Pennington, Xavier, and other
research organizations, there can be internal growth from the various research specialties that can
support private R&D lab space and follow-on incubator space. An expansion of a facility that could

3
provide accelerator space at relatively affordable rates is recommended. This would likely be no more
than 50,000 sq. ft.

CBRE expects that by Year 10 the pharmaceutical industrial development could approach
500,000 sq. ft. if utility costs can be reigned in.

The Regenerative Sports Research Institute could grow to 175,000 sq. ft. of R&D and medical office
space with a hyperbaric chamber treatment facility. Exhibit A on following pages illustrates the
concept plan.

YEAR 11-20
With the successful collaboration between LSU, Tulane and other research organizations, BioDistrict
New Orleans can expect to see growth similar to most other Research Park clusters i.e. 25,000 –
50,000 sq. ft. per year during the second decade of operation – reaching a total of 500,000 sq. ft., plus
100,000 sq. ft. of medical office, 175,000 sq. ft. for the Regenerative Sports Research Institute and
750,000 sq. ft. for pharmaceutical and medical device manufacturing and packaging. If no
cooperation occurs with LSU and Tulane there will be no growth in the R&D area.

In addition there would be demand for extended stay hotel facilities for the hospitals and research
facilities, and assisted living/senior housing facilities associated with Tulane or LSU alumni, as well as
commercial support facilities including a virtual conference center.

ABSORPTION SUMMARY
Based on analysis of the prevailing and potential opportunities for the evolution of a research park in
New Orleans, we estimate that the life science absorption (in addition to the planned LCRC, New
Orleans BioInnovation Center and VA/UMC hospitals) at BioDistrict New Orleans could total
175,000 sq. ft. by Year 5, another 625,000 sq. ft. for Years 5 to 10, and 800,000 sq. ft. more for Years
11 to 20, for a likely new development potential of 1.6 million sq. ft. over 20 years.

ABSORPTION BY PERIOD (Square Feet)

Years 0 to 5 Years 6 to 10 Years 11 to 20

R&D/Institutional 50,000 200,000 500,000
Medical Office 25,000 25,000 50,000
Manufacturing 100,000 400,000 250,000
Total 175,000 625,000 800,000

CUMULATIVE (Square Feet)

Years 0 to 5 Years 6 to 10 20-Year Potential

R&D/Institutional 50,000 250,000 750,000
Medical Office 25,000 50,000 100,000
Manufacturing 100,000 500,000 750,000
Total 175,000 800,000 1,600,000

4
It must be noted that above estimates are highly susceptible to changes in market conditions, political
willingness, strength of coalition of educational partners, state workforce preparedness for biosciences
industry from Louisiana universities, public agencies’ support – economic incentives and regulatory
facilitation, growth of biosciences industry in U.S. and in Louisiana, access to venture capital and
angel 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 likely
vary significantly from the estimated likely ‘benchmark’ guidelines provided above.

5
Exhibit A: Regenerative Sports Research Complex Illustrative Concept

6
PROGRAMMING ELEMENTS’ DRIVERS
Local institutions and their area of life-sciences expertise/focus, and prospective bioscience demand
drivers in New Orleans will guide the programming elements of a life science cluster at BioDistrict
New 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 studying
agriculture, coast and environment, and veterinary medicine, covering an array of biosciences
fields. Its biological sciences research centers include divisions of Biochemistry & Molecular
Biology, 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 in
biosciences concentrations such as Infectious Diseases, Climate Change Research and
Bioenvironmental Research. The relevant School of Public Health and Tropical Medicine centers
include focus on bioenvironmental research, cardiovascular health, bioengineering and infectious
diseases.
 Xavier University – The University has a School of Pharmacy with divisions focused on both
basic pharmaceutical and clinical & administrative sciences. Its research centers’ focus includes
minority health and disparities, women’s health, drug information, cancer, and minority AIDS
education.
 University of New Orleans – Research focuses on areas of Assisted Reproductive Biology,
Conservation Biology, Population Genetics, Coastal Restoration, and Bio-nanotechnology. UNO
has shared in several SBIR grants with St. Charles Pharmaceutical and its SBIR grants include
nanotechnology as a drug delivery system. It has a partnership with Children’s Hospital of New
Orleans 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. The
college also houses the Charity School of Nursing with programs in both registered and practical
nursing.

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 nursing
services, specialized research study facilities and equipment, biostatistical support, research
nutrition services, and research subject advocate services. The Core Laboratory offers sample
processing, storage and shipping, assistance with research design, and performance of specialized
molecular biology techniques.
 South Louisiana Institute for Infectious Disease Research (SLIIDR) is a partnership of LSU
and 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, and
vaccines. Its core facilities include genomics, proteomics, protein, nanotechnology, vector
development, immunology, molecular interaction and imaging.
 Louisiana Vaccine Center (LVC) focuses existing interdisciplinary strengths in the basic and
translational science of microbial pathogenesis, host immunity and vaccine research at three major
Louisiana universities - LSU, Tulane and Xavier. The goal of the Center is to promote research

7
 and development in the areas of vaccines, infectious diseases and immunology with appropriate
infrastructure 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 are
Bacteriology & Parasitology, Collaborative Research, Comparative Pathology, Gene Therapy,
Immunology, Microbiology, and Veterinary Medicine, with an emphasis on diseases such as
AIDS, Krabbe disease, Leukemia, Lyme disease, Malaria, Microsporidiosis, RSV, Rotavirus and
TB.
 Pennington Biomedical Research Center’s 403,000 sq. ft. core research complex houses 53
laboratories that span the Center's three programs - Basic Research, Clinical Research, and
Population 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 Tulane
University School of Medicine, as well as five of the city's 19 hospitals – all within a radius of six
blocks. Charity Hospital and University Hospital are academic teaching hospitals administered by the
Louisiana State University System, and are part of the LSU Health Sciences Center to be managed by
a 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 portions
of Mississippi, Alabama, and Florida, with a veteran population of about 250,000. The hospital is
accredited for residency training programs in nine specialties and ten subspecialties, and is also
affiliated 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 and
sports medicine, respectively, with various stakeholders in biosciences sector in New Orleans. The
attendees included executives from BioDistrict New Orleans, CBRE, public/economic-development
entities, local universities, research centers, hospitals, and private businesses. Their functional
expertise varied from executive, operations, research and development, instructional, academic,
business development, and entrepreneurship. The panel discussed the opportunities and challenges
faced by BioDistrict New Orleans for fostering sports medicine and translational medicine focused
bioscience initiatives.

Sports and Rehabilitation Medicine

Additional bioscience assets of the greater New Orleans area can be leveraged to develop the roadmap
for the growth of the BioDistrict and bioscience sector. The regional bioscience assets, including
neuroscience 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 Medicine
Institute in New Orleans. Such a facility could potentially include not only world-class research and
medical amenities, but also potential rehab training facilities for both the Saints and the Hornets. The
LSU Health Science Center also has expertise in this field, with Dr. Keith VanMeter and Dr. Paul

8
Harch involved in work using hyperbaric medicine to treat compression sickness in divers to
accelerate 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 that
affect 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 interest
how its efforts could complement those of other regional researchers. LSU’s Dr. William Gordon
highlighted the potential of his work to characterize the neuroprotective properties of omega-3 fatty
acids to counter anti-inflammatory and anti-neovascular process of macular degeneration.

Research in these related fields could also complement the development of a regenerative sports
medicine 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 New
Orleans, 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 by
collaborating to improve the regional clinical research enterprise and by leveraging current initiatives
for statewide and local health information exchanges to benefit clinical research. If all local partners
could collaborate to identify their respective assets and initiatives, resources could be shared and
leveraged and a stronger case could be made to outside investors approaching any one of those
partners. The roundtable initiatives luncheon meeting to discuss these aspects yielded measures as
suggested by the stakeholders.

Building Regional Clinical Research Enterprise - One participant (Dr. Prescott Deininger) noted
that to be more competitive in the clinical research environment, BioDistrict New Orleans needs to
define ways for regional institutions to function together more cohesively, so investors would be more
likely 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 is
the size of its trained investigator pool. He went on to point out that what is needed to train and recruit
more investigators is a more robust and sustained clinical research infrastructure with facilities akin to
the former GCRC. To facilitate scientists-clinicians coordination, Dr. Richard Murphy recommended
the use of multi-university committees composed of clinicians and basic scientists whose primary role
is to identify what the research strengths of the represented organizations are and to bring together the
people 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 projects
needing longer timeline to give a return on our investment. Dr. Laura Levy said that a case could be
made to investors for "purchasing" a limited number of high profile investigators (National Academy
members or Nobel prize winners), given the beneficial impact such an investment could have on our
research community.

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

9
in the exchange, a secondary goal focuses on collecting outcome measures as relating to diabetes and
smoking cessation, which obligates population health-status reporting. There is a perceived need by
researchers for a "data dictionary" to be developed between the regional partners so that shared
definitions can be correctly and consistently applied by clinicians to be later analyzed by clinical
researchers. Workshop participants noted different sets of health data would be useful to different
stages of clinical research, and could provide a basis to structure and facilitate researcher-use of health
information. Such connectivity facilitates visions of translational research through to clinical adoption,
which links intimately to outcome research.

PUBLIC PRIVATE PARTNERSHIPS / PUBLIC AGENCIES’ INITIATIVES

Many state economic development organizations are providing massive financial incentives to attract
high-caliber research organizations to anchor new life science research parks and bioscience clusters.
The State of Florida and several local counties have given well over $1 billion in financial incentives
to attract such organizations as Scripps Research Institute, Burnham Institute, Max Planck Institute,
Torrey Pines Institute and the just recently announced Jackson Labs facility going to Collier County.

Louisiana Economic Development has incentive programs available to Louisiana businesses and
entrepreneurs, who are looking to expand in or relocate to Louisiana. It facilitates information on
incentives and provides information for applicants to various federal (Small Business Administration),
State of Louisiana or local incentive programs. These initiatives take the form of tax credits or tax
exemptions based on performance and/or job creation by those enterprises. Additionally, researchers
in biosciences field receive funding and support from the National Institutes of Health. Other local
partnerships could involve Regional Planning Commission, City of New Orleans and Louisiana
Recovery Authority, which will facilitate site planning, zoning and other regulatory aspects related to
biosciences cluster planning and development.

Additionally, there are many entities that provide guidance, organizational and financial, to support
entrepreneurial efforts of a growing business. The Greater New Orleans Small Business Development
Center, supported by U.S. Small Business Administration (SBA), serves Louisiana businesses through
confidential counseling, group training and business information resources. Greater New Orleans Inc.
is a regional partnership of public and private leaders driving the economic resurgence, which will act
as a catalyst, advocate and resource broker - a nonpartisan organization focused on retaining jobs,
creating new jobs, developing the workforce and fostering a pro-business public policy. New Orleans
Chamber of Commerce is focused on creating sustainable economic growth and improving the quality
of life of citizens and visitors. The Levy-Rosenblum Institute of Entrepreneurship Tulane (LRI) trains
entrepreneurs through coursework, community service projects and internships; coordinates joint
academic, government and business initiatives that stimulate private enterprise and regional economic
growth; and, assists economic development by helping corporate and family business communities in
identifying and exploring business issues through shared learning experiences. The Louisiana Business
& Technology Center (LBTC), part of the Ourso College of Business at LSU, support of existing
small businesses and the development of new businesses with access to the resources they need to
grow and attain long-term success.

While other states are creating incentives in these economic times, Louisiana has reduced the amount
of research funds to the institutions. To compete with the other states for key catalytic institutions for
the BioDistrict it will be important for Louisiana to consider special legislation for significant
incentives (~$100 million) where justified.

10
HOSPITAL REUSE CASE STUDIES
PACMED BUILDING, SEATTLE, WA
The Amazon.com headquarters, located two miles southeast of downtown Seattle, is an adaptive reuse
of a former U.S. Marine hospital. The project comprises 314,400 sq. ft. on a 9.1 acre site located in the
Beacon Hill area, a primarily residential neighborhood comprised mainly of descendents of immigrant
families.

The 16 level, 312-bed hospital was

completed in 1932. The art deco building
was listed on the National Register of
Historic Places in 1978 and designated a
landmark by the city of Seattle in 1991.
On located on the site are six houses,
called the Quarters buildings, on site
perimeter. The houses were for use by
hospital staff and later converted to admin
offices. As PacMed, which is a public
development agency of the city of Seattle,
began to convert to operating smaller,
community-based clinics, it had no need
for the large Beacon Hill facility, which
stood substantially vacant from the late
1980s onward.

Developer Wright Runstad & Company (WRC) learned that Amazon.com was actively seeking new
office space for its headquarters and approached PacMed with a reuse proposal. At this point, PacMed
had 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 public
meetings and working closely with community. Aside from traffic concerns, most members of the
community thought project would bring people, as well as economic stimulation, to the area. To
address concerns, WRC established residential parking zones, hosted an economic development
conference 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. Because
development rights to the hospital were granted for medical use only, the developer needed strong
support from all parties. WRC, having much experience in financing leasehold properties, was able to
obtain construction loan financing.

Construction involved the demolition of interior walls, removal of asbestos, roof and exterior
waterproofing repairs, and replacement of core electrical and heating systems that were obsolete. To
mitigate risk, WRC required large deposit from Amazon, which is kept in an escrow account. WRC
also added a new parking structure in 2000. Construction began in November 1998 and ended June
1999, and the project was completed on time and 4 percent under the estimated $21 million
construction budget. The project now houses Amazon on floors 1 through 13, PacMed on the
basement and ground floors, and Gentle Dental, also on the ground floor. The building comprises

11
283,000 sq. ft. of office space and 30,800 sq. ft. of medical/dental clinical space, and 459 parking
spaces.

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

The property was placed on

National Register of Historic
Sites and the Grand Traverse
Commons Redevelopment
Corporation (GTCRC) was
created to safeguard the
property and as well as to
create a reuse plan for it. The
site remained vacant
however, until 2000, when
Minervini group, a local
developer, negotiated and
secured agreement with
GTCRC to renovate the
380,000+ sq. ft. Building 50 into a mixed-use residential/commercial project. Phase one of the project
was 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 a
development 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 nearly
92 percent abated and business/income taxes are abated for onsite businesses and residents. Other
available incentives include:

o Brownfield Tax Increment Financing through Grand Traverse County

o Brownfield Redevelopment Authority (GTCBRA) and the State of Michigan, for
reimbursement 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

12
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 marketplace
type 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 1930
and is located just one mile northeast of downtown Los Angeles, in the Boyle Heights area. The
structure 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 was
used on the soap opera “General Hospital” for many years. Eventually, it would become a part of the
larger USC Health Science Campus.

However, the Northridge earthquake in 1994

badly damaged the building, at some point
resulting in only half of its licensed beds to be
able to be put to service. Eventually, enough
funds were raised and as hospital care began to
focus more on outpatient care in the county, a
newer, smaller hospital structure, with only 600
beds, was built south-adjacent to the old building.

When the new building was constructed and

patients moved over in 2008, plans included
mothballing and preserving the Old Building,
because of its historic value. Currently, the
basement and first five floors of the Old Building are used as administrative offices for doctors at
LAC-USC. The upper levels remain sealed off as they do not have a sprinkler system in place and
therefore do not meet fire codes.

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

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

13
which have made developers weary of proposing office and lab projects in the redevelopment zone the
county has designated adjacent to the campus.
Key Points:
 Structure under County’s jurisdiction
 Used primarily as office, but to various organizations, including the hospital’s doctors and
administrative staff and soon to be biotech incubator
 Subsidized leasing

COOK COUNTY HOSPITAL, CHICAGO, IL

Cook County Hospital is located along two city blocks in the Illinois Medical District on Chicago’s
West Side. The 309,000 sq. ft., eight story hospital was built in 2016 with an ornate Beaux-Arts
exterior façade. From the 1920s to the 1950s, was the largest medical institution in the world, and was
called “Chicago’s Statue of Liberty,” because it served so many during this time period. It was a
pioneering teaching hospital, the first in the world with a blood bank, and the first in the country with
burn, trauma center, AIDS, and sickle-cell anemia units. The hospital has also served as the model for
the medical drama series “ER.”

In 2002, the hospital was replaced by the new John H. Stroger Jr. Hospital, located nearby on the same
grounds, and remained vacant for years. The City planned to raze the structure, however
preservationists, including the Landmarks Preservation Council of Illinois and Preservation Chicago,
interfered and were successful in placing the structure on the National Register of Historic Places in
2006.

More recently, planners conducted a study to

determine the highest and best use for the site,
based on site characteristics, cost, and market
demand. It was determined that office use would
be the best use for the site, and a $108-million
renovation effort was approved in March of 2010
to turn the historic building into administrative
offices for the local health-care sector. Staff
currently works in a converted dormitory, which
will be razed. The redevelopment will maintain
the exterior of the building, while completely
renovating the interior, including all mechanical,
electrical, plumbing, vertical transportation and other systems. The renovated structure will also be as
energy efficient as possible, to meet County requirements on meeting LEED standards.

The project is eligible for tax increment financing, which is to be further negotiated, with bonds to
fund the remainder. The entire renovation is expected to take about three years.

Key Points:
 Extensive market and feasibility studies conducted to determine highest and best use
 Structure will house administrative offices for local medical community
 County owns hospital, and will negotiate tax increment financing for redevelopment
 Redevelopment will maintain the exterior of the building, while interior will be completely
renovated

14
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 redevelopment
project
 Public/private partnership – public involvement and/or assistance in redevelopment can take the
form of subsidization, streamlining permit process, or agency acting as a stakeholder
 Construction logistics – in many cases, much of interior (as allowed) may have to be
reconstructed to create optimal inhabitant environment

CASE STUDIES’ DEMAND TRENDS

As part of Task 2 deliverable for this project, CBRE had analyzed benchmarks research and
technology real estate initiatives across the US. We have profiled the short and long-term absorption
trends at these parks as a benchmark for the amount and type of land uses contemplated for BioDistrict
New Orleans. Also included is an analysis of some of the key events or initiatives that acted as
catalysts 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 to
life sciences assets, primary of biotech industry in the region, type of biotech space, private sector
commitment, availability and extent of public incentives, local labor pool education attainment and
preparedness 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 can
project the absorption pattern for BioDistrict New Orleans. However, using these case studies as
benchmark, we can approximate a likely range of absorption scenarios depending on optimistic or
pessimistic state of development drivers.

Exhibit B profiles the conception, start, current status and projected build-out of case study research
parks. Most benchmark research park case studies took 3 to 5 years on average from conception to
building of the first structures. The absorption in the initial years, after adjusting for big anchor tenants
or 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 on
the attributes elaborated above.

Implications for BioDistrict New Orleans – Given the current macro-economic conditions, relative
lack of agglomeration of biosciences firms and research in the state, few venture capital and investors
in the region, and relatively short history of bioscience initiatives, the absorption at BioDistrict New
Orleans is likely to average on the lower side of that range in the short-term. Thereafter, development
could be accelerated by key catalyst events, whereby the absorption potential upside can vary
significantly 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.

15
CATALYTIC EVENTS
CBRE studied the evolution of case study research parks to ascertain the kind of catalyst events or
initiatives that could jumpstart a life science cluster in a region. Exhibit C profiles the key constituents
and 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 BIO
Conference in 2009. At Kannapolis, the founding and catalyst factor was the sustained vision and
initiative of a private entrepreneur to develop a mixed-use Biopolis. Securing a big player in the
industry as a tenant can also enhance the appeal of a cluster for other firms seeking locations. This
happened when IBM located at Research Triangle Park in Raleigh-Durham and when DuPont’s
Advanced Materials Lab relocated to Delaware Technology Park. At other parks, setting up of key
research related facilities such as incubator space proved catalyst, as at University of Iowa Oakdale
and at Piedmont Triad Research Parks. Partnership with public agencies was another catalyst, with
state 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 helping
accelerate 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 past
decade. The loss of key research professionals to Houston and other cities following Hurricane
Katrina, 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 to
develop a strong bioscience district.

The State, the City and the universities need to decide if a vibrant bioscience cluster is a priority for
the 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 research
professionals.

The experiences from the research park case studies and the factors impacting their evolution provide
other lessons for BioDistrict New Orleans. Public agencies can spur development by funding
infrastructure development, providing economic incentives for businesses relocating to the park,
establishing publicly funded research facilities, and facilitating public-private partnerships and
alliances. The universities can incentivize organizations locating at the BioDistrict New Orleans by
shoring up and enhancing their life sciences/biosciences related curriculum, so the workforce is better
prepared for this sector. The private sector investment will follow suitable infrastructure being set up
for 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 manufacturing
facilities at the park, or if it is able to recruit high profile (Nobel laureate) faculty at one of the partner
universities and/or research centers. Catalytic events will likely come to fruition through a cooperative
approach of BioDistrict New Orleans’s multiple institutional partners.

16
 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 62,500 600,000

Atlanta, GA in 2 buildings in 4 buildings
300 Employees 1,500 Employees

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

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 units
over 350 acres

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

Birmingham, AL 65 tenants 80 tenants

Delaware Technology Park 40-acres 1986 1993 350,000 20,600 ~ 600,000

Newark, 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-yrs
40-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 University 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

17
 Exhibit C: Case Studies’ Catalytic Events
Space Type
Tech Enterprise Park Hospital Lab space,
Atlanta, GA Manufacturing, Institutional
Center for Emerging Technologies Incubators, Wet Lab space,
St Louis, MO Pvt. Corporations
North Carolina Research Campus Institutional R&D and Labs,
Kannapolis, NC Incubator, Retail, Manufacturing
Innovation Depot Incubator - R&D and Mfg,
Birmingham, AL Institutional offices
Delaware Technology Park Research Ctrs (Intitutional),
Newark, DE Incubator '99, Hospitals
Pvt. Cos - 90% of non-incubator
space
Coldstream Research Park Univ Research Ctrs,
Lexington, KY Incubator, Office & Lab space
for pvt. Cos.
UI - Oakdale Research Park University Ctrs, Incubator
Coralville, IA Intitutional - Research Ctrs
Piedmont Triad Research Pk Univ Ctrs, Lab space and Offices
Winston-Salem, NC for pvt cos., Incubator
Tri-Cities Research District Offices, Lab, Light Mfg
Richland, WA US DOE Lab, Research Ctrs
90K SF Incubator '98
Research Trianlge Park
Raleigh-Durham, NC
Source: Primary and Secondary Research of individual research parks, and CBRE Strategic Consulting
18
Catalyst Project
/ Event
2009 BIO Conference
- City purchased 1st bldg
Piecemeal approach
- Private Investment by Dole Foods
Company owner
- Biopolis mixed-use concept
- UAB partnership with
Entrpreneurial Center
- DuPont's Advanced Mtrls relocated
to park as 1st tenant in '93
- Partnership with established
entities ensured funding '98
- Nanotech alliance MANA
formed funded by Fed Govt '04
- Hughes Aircraft Co plant in '91
- State funded infrastructure '99
Crucial to getting IBM among others
- UI Tech Innov Ctr '84
- 90K SF BioVentures Center '06
- NC Emerging Tech Alliance '00
- 1st ground-up bldg: One Tech Pl '00
- Park's 1st pvt client Targacept '01
- Incubator estbd '01
- City rezoned TCSTP to business-
research park zone '02
- Reorg. TCSTP to TCRD '06
- State made TCRD an Innovation
Partnership Zone '07
- Park starts growth trajectory with IBM &
Natn Instt of Env Health in '65
 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. 

 
 LCRC

Retail
Office
Xavier
USES

VA Sites

Housing
Delgado
Ochsner

Eco Park
Other LSU
UMC Sites

Hospitality
Open Space
Other Tulane

Infrastructure

Social Services
Entertainment

Civic Structures
Old VA Hospital
City of New Orleans

Charter High Schools

Parks and Recreation
Development District
Criminal Justice Center

Other Research Facilities
Charity Hospital Complex

NFL Sports Wellness Center

Industrial ‐ Light to Moderate

Workforce Development Sites
Bioscience Commercialization 
New Orleans BioInnovation Center
Interests  

Greater New Orleans, Inc. + Downtown 
INSTITUTIONS, AGENCIES & LAND 
Shared Thematic 

TOPICS

Healthcare
Research/Biomedical/Bioscience
Primary Care
Nursing Education
Cancer Research
Bench to Bedside Medicine Focus
Gene Research / Therapy
Stem Cell Research / Therapy
Prosthetics
Cardiology Research / Heart Disease
Endocrinology
Nano Medicine / Nanoparticles
Sports Medicine
Orthopedics
Neuroscience and/or Brain Trauma
Infectious Disease
Dentistry
Forensics
Bariatric Research/Treatment
Medical Device Research
Medical Device Manufacturing
Pharmaceutical Research
Pharmaceutical Manufacturing
Community Outreach
Clinical Trials
Diabetes
Alzheimer's
Alcohol/Substance Abuse
Nutrition/Aging
Stroke
Connective Tissue
Effects of Disaster
EMDR
Exercise Physiology
Research Animal Facility
Pediatrics Research
Brain Trauma

Education/Teaching
Education/Teaching ‐ Vet Medicine
Education/Teaching ‐ Pharmacy
Education/Teaching ‐ Engineering
Education/Teaching ‐ Medical
Education/Teaching ‐ Medical Industry Tech
Higher Education

Transfer Technology

For‐Profit Business
Not‐for‐Profit Business

Cohesive Campus Setting
Needs Access to Mass Transit / Bikes 
Needs Access to Parking
Needs Housing, Amenities & Safety
Needs Childcare
Need Computer Sciences/Info Tech
Need Heliport
Strong Community Involvement
Needs Skilled Workforce
Needs Access to Hospitals
Sustainable Design
Convention/Meeting
Long‐term medical‐related hotel
?

Historic Focus ‐ Landmark
Notes
some housing has landmark status
need plastics molding to support research

prisons and parking.  Sewer system a major problem.
sustainable real estate development course w/ Tulane
interested in outreach to other institutions and community

science high school ‐ bioscience and medical campus exposure
new facilities for several dept's in works ‐ NOPD facility, Warehousing, power plant, 

develop Charity Complex, VA Building.  New City Hall, Medical Mart, Residential, hotel
 

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) 

Project  Areas (based on available information) 
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 

Project  Areas (based on available information) 
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 

Project  Areas (based on available information) 
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 

Project  Areas (based on available information) 
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 @  N/A 
Fern Street 
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.                     
**Data estimated from currently available information 

 
 

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 

Project  Areas (based on available information) 
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) 

VETERANS ADMINISTRATION (VA) MEDICAL CENTER 

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) 

Project  Areas (based on available information) 
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 

Project  Areas (based on available information) 
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 

Project  Areas (based on available information) 
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. 

OCHSNER HEALTH SYSTEM 

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 

Project  Areas (based on available information) 
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.                     
**Data estimated from currently available information 

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) 

 
VETERANS ADMINISTRATION (VA) MEDICAL CENTER 

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 

Project  Areas (based on available information) 
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. 

OCHSNER HEALTH SYSTEM 

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 

Project  Areas (based on available information) 
New Recreation Fields & Tennis Complex  20,000 sq. ft. Tennis Complex & 6 Recreation 
Fields* 
Pine Street Corridor Improvement & Bridge  N/A 
Expansion 
*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 

Project  Areas (based on available information) 
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. 

 
 Anticipated Institutional Growth: 5‐10‐20 years 
5 Year Activities (2016)

INSTITUTIONS, AGENCIES & 
LAND USES 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) 22,000 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

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 
10 Year Activities (2021)

INSTITUTIONS, AGENCIES & 
LAND USES 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

Ochsner None Identified

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

20 Year Activities (2031)

INSTITUTIONS, AGENCIES & 
LAND USES 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

Ochsner None Identified

Xavier New Recreation Fields & Tennis Complex 20,000 sf Tennis Complex & 6 Recreation Fields

Pine Street Corridor Improvement & Bridge ExpansioN/A

Delgado Additional Workforce Training/Instruction Space 150,000 gsf

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. 
 
ƒ 200,000 SF +/‐ Science Building 
 
ƒ 110,000 SF +/‐ Science Building 
 
ƒ 90,000 – 100,000 SF +/‐ Sports and Recreation Building Addition/Renovation/Expansion 
   
 200,000 SF +/‐ Science Building 
   
Boston University
Life 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 fields 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 specific and specialized research goals.

The building’s flexible 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 floorplate
building block and a reconfigurable lab module that allowed designers to easily accommodate
revisions to the original program resulting from changes in the university’s research initiatives and
staff throughout the project.

Accommodating the university’s goals for sustainable design practice where possible, the building
is approximately 65 percent efficient 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-efficient illumination. Built to fit a dense urban
site, a specific 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 the
urban 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 Center
Kansas 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 benefit from generous informal interaction spaces with access to views and natural
light--proven aids in promoting an effective 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 efficient and modular,
allowing for flexible assignments of research teams, while “neighborhoods” of research
offices, 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 floor. Clinical translational research
is consolidated at the ground floor for discreet public accessibility.
Saint Louis University
Edward A. Doisy Biomedical Research Center
St. 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
defined, 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 floor wing of the building is a Clinical Trials Center, enhancing Translational Research
effectiveness.

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 flexibly to emerging opportunities and needs.
University of Michigan Health System
Clinical Pathology and Research Building
Ann Arbor, Michigan
(Cannon Design)

Cannon Design has been retained by the University of Michigan to design a major new facility that
will define 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 offices will be located in the new building.
 110,000 SF +/‐ Science Building 
 
   
Hauptman Woodward
Medical Research Institute
Buffalo, New York
(Cannon Design)

The Hauptman-Woodward Structural Biology Research Center is located on a site at the south-
western corner of the Buffalo Niagara Medical Campus, between Ellicott and Washington Streets,
and acts as the southern gateway to the Buffalo 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 scientific
collaboration among the researchers.

The key organizational element of the building embraces the principle of scientific collaboration.
The building is separated into two main programmatic components: research labs, and office and
multifunction support space. Separating the offices and support functions from the research lab
allows each discrete space to be built cost effectively 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 Buffalo Niagara Medical Campus. Multifunctional support spaces line circulation paths
that thread through the atrium between the office 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.
Yale University
Graduate Chemistry Research Building
New Haven, Connecticut
(Cannon Design)

The 290-acre campus of Yale University, founded in 1701, features some of the country’s
most architecturally significant buildings. Cannon Design was selected as architect of
record for a new $47 million, 101,000 sf Graduate Chemistry Research Building (CRB) to
consolidate fume-hood-intensive research activities previously located in the university’s
Kline and Sterling chemistry laboratories on Science Hill. Consisting chiefly of dedicated
organic chemistry labs for 12 principal investigators and 148 graduate students, the building
consists of 37 laboratory modules serving four investigators apiece, faculty offices posi-
tioned opposite the labs to facilitate collaboration, and graduate student offices adjacent
to the main research lab.

With 160 eight-foot chemical fume hoods, 74 point-exhaust systems, 37 vented storage
cabinets, 37 equipment exhaust locations, and a once-through cascade air system serving
the entire building, the CRB required innovative measures to mitigate its potentially tremen-
dous energy consumption. Design solutions included combination vertical and horizontal
fume-hood sashes to reduce airflow into fume hoods; placement of valves outside of hoods
rather than inside; and zone presence sensors that decrease rates of hood exhaust when
researchers are absent. The CRB received LEED Silver certification in December 2006.

The project achieves numerous important goals, including connecting its interior circulation
with that of neighboring buildings; linking its exterior circulation to a major pedestrian path;
and forging a strong relationship between the building and surrounding open spaces in the
Yale courtyard tradition, which favors the use of social spaces to encourage interaction
among students, faculty, and staff. The building’s design responds to the existing campus
fabric and accommodates the site topography, which rises from essentially flat on the
south to a steep slope on the north, providing dramatic views to the Connecticut hills. In
association with Bohlin Cywinski Jackson.
University of Kansas
Multidisciplinary Research Building
Lawrence, 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 offices inside or next to
them. In the MRB, labs are located along two hallways, but offices 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
configuration of these spaces is designed to support teams of researchers with laboratories,
work rooms and offices, 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 fulfilling the vision of the West Campus Master Plan.
Oklahoma State University
Science & Technology Research Center
Stillwater, Oklahoma
(Cannon Design)

To enhance its reputation as a center for cutting-edge research, Oklahoma State University
commissioned Cannon Design to provide programming, architectural design, and engi-
neering services for a 120,000 sf, $42 million, state-of-the-art laboratory building to house
interdisciplinary research laboratories and offices for physics, chemistry, botany, and
microbiology, with flexibility to accommodate other departments as research initiatives
evolve. Cannon Design also concurrently provided design services for an additional $5
million in renovations of laboratories and support spaces within the university’s adjacent
Physical Sciences Building.

Built to connect to one of the campus’s existing 1960s-era science buildings, the new labo-
ratory building manifests a modern expression of the campus’s Georgian architectural style.
Flexibly designed laboratory spaces designed to accommodate a variety of research func-
tions are consolidated at the building’s core, while teaming areas and a circulation corridor
occupy the perimeter. Expansive windows optimize use of natural light throughout.
90,000 – 100,000 SF +/‐ Sports and Recreation Building 
Addition/Renovation/Expansion 
Texas Christian University
Student 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 fitness 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.

Principia College
Fitness Center & Hay Field House Renovation
Elsah, Illinois
(Cannon Design)

Principia College commissioned Cannon Design to study Hay Field House, home to the college’s
performance gymnasium and natatorium. In light of the college’s decision to build a new
natatorium, Cannon Design developed alternative concepts for renovation of the field house.
The chosen option included extensive renovation of deficient locker room facilities and public
spaces and conversion of the former natatorium into a fitness center offering circuit training,
cardiovascular equipment, and juice bar. A new second-level mezzanine was inserted over half of
the fitness center to accommodate two large multipurpose rooms for dance, aerobics, and other
group exercise activities. Field house renovations also include new team and guest locker rooms,
a football team locker room, a racquetball court convertible for squash, and exhibit space for a
Hall of Fame. New mechanical, electrical, and plumbing systems support the revitalized facility.
California Polytechnic State University, San Luis Obispo
Recreation Center Renovation/Expansion
San Luis Obispo, California
(Cannon Design)

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 unified, open space that richly interweaves interior and exterior spaces with long diagonal
views. The program includes a two-court gymnasium, a one-court MAC, racquetball courts, a
20,000 sf exercise area, administrative offices, and a running track. Renovations include remod-
eling of locker rooms and conversion of a fitness area to enclosed fitness 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 certification, the facility incorporates expanses of
shaded glazing to flood the interior with glare-free natural light. When practical, fitness studios are
naturally ventilated. An indirect-direct evaporative-cooling air-handling system, which operates
most efficiently with 100% outside air, makes optimal use of San Luis Obispo’s mild, dry climate.
University of Maine
Student Recreation and Fitness Center
Orono, Maine
(Cannon Design)

Cannon Design provided planning and design services for the largest building project ever
undertaken at the University of Maine at Orono: a new 88,000 sf Student Recreation and Fitness
Center featuring a three-court gymnasium, a multipurpose athletic court, fitness center, natato-
rium, walking/jogging track, two racquetball courts, and support spaces. The contemporary, LEED
Silver certified building fits seamlessly into its heavily wooded site and incorporates sustainable
building materials and systems, including heat-recovery systems and recyclable materials.

Extensive use of glass on the south façade presents views of the activities within and provides
users with views out to the scenic campus. The building’s exterior material palette of architectural
precast concrete panels, copper metal clad panels, field stone, and glass walls harmonizes with
the natural setting. Inside, exposed wood structure, wood paneling, and wood flooring evoke a
natural, organic ambiance.

Two double-height, skylighted galleries - one north-south and one east-west - form the primary
circulation. A main stair and elevator at the intersection of the two galleries provide access to the
second level. A centrally located control desk provides views of the lobby and lounge areas, the
main elevator and stair, and the entrances to the fitness area and three-court gymnasium. A free
zone adjacent to the control desk offers access to the director’s office, staff offices, a conference
room, and a multipurpose room.

The weight-training room, which houses both free weights and circuit training machines, offers
users views into the adjacent three-court gymnasium and outside to the surrounding campus
and woods. The cardiovascular fitness area on the upper level, open to the weight-training area
on the ground floor, affords views of the campus, the jogging track and gym, and the north-south
gallery. A three-court gymnasium accommodates basketball and volleyball. Divider curtains allow
courts to be used for a variety of other activities. A jogging track suspended above the three-court
gymnasium gives joggers views through clerestory windows to the east and the forest to the
north.