New Orleans council backs economic plan

New Orleans council backs economic plan

	Published : Thu, 29 Nov 2007 00:50 By : Agencies Print this Story

NEW ORLEANS (AP) - City Council members endorsed a plan Wednesday that would create a public-private partnership to retain and recruit businesses to New Orleans as the city seeks to rebuild and diversify its economy following Hurricane Katrina.

Several council members and business leaders said the new approach is needed to try to avoid problems, such as a lack of coordination and vision, that doomed past efforts.

'From my perspective, we don't have any economic development,' said Ed Blakely, the city's recovery director who assumed oversight of departments including economic development and safety and permits in a recent reorganization at City Hall.

A framework for the plan was outlined Wednesday.

But key issues, including future funding, the private-sector entities that would be involved and the approach -- whether it will be city-focused or more regional in scope as the RAND Corp. recommended -- have yet to be settled.

Still, Council President Arnie Fielkow hailed the plan as a 'significant step forward' and said the overhaul was key for the city to be successful in rebuilding and growing its economy.

The RAND Corp., which studied economic development efforts in 17 cities, made 12 recommendations. Among them:

-- That a governing council comprised of public and private sector representatives set policy and raise funds

-- That a staff of business experts handle day-to-day work on the private-sector side

-- That the city focus first on keeping and expanding current businesses and then on attracting high-tech industries.

-- A focus first on maritime, petroleum and tourism, which have or are making progress post-Katrina, followed by the biomedical and food processing industries and small businesses, which have been slower to recover.

This was a city of small businesses before Katrina hit in August 2005, and many of those operating are struggling as New Orleans works to attract tourists and major conventions and struggles with a violent crime problem and an image of corruption.

RAND also said the city had to deal with infrastructure upgrades, the quality of its workforce and quality of life issues -- not small obstacles for a city that was plagued by problems including poverty and poor schools long before the storm.

Some council members questioned the regional approach, pointing out that other parishes in the area are farther along in their recovery and in a better position to attract business.