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JANUARY 2005

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Sir, the Governor's on the Phone
Gov. Kathleen Blanco

    Reversing that perception is no small feat, but the train has left the station. Much of the credit for Louisiana's new focus on business expansion and retention goes to Governor Kathleen Babineaux Blanco. She considers everyone in her cabinet an economic developer, not just Michael Olivier, the Secretary of Louisiana Economic Development.
      Assuming office in January 2004, Gov. Blanco made it clear early on that things were going to change in how the state does business and attracts business. Besides marshalling ethics reforms through the legislative process and signing them into law, the governor personally gets involved in bringing projects to Louisiana, as was the case with Union Tank Car and Roy O. Martin Lumber, the companies behind the railcar manufacturing and lumber facilities alluded to earlier — and others.
      Chicago-based Union Tank Car broke ground in November 2004 on a $100 million railcar manufacturing plant that will employ 850 in the Alexandria area — 700 manufacturing jobs and 150 professional positions. Another 100 jobs will be supplied by contractor services at the plant.
      The company had decided to expand its Texas operation, but Gov. Blanco saw things
differently. Upon learning of the site decision, she told company management that they need to keep talking with Louisiana, which they did. The state organized a $65 million incentives package that included more than $30 million for plant construction, more than $9 million in property tax breaks, $19 million in job creation tax credits over 10 years and rebates on sales tax paid on equipment purchases. The package got Union Tank Car's attention and made it clear that the governor was serious about bringing industry to Louisiana.
      "Louisiana has a new business climate that the world needs to see," noted Secretary Olivier at the time. "Governor Blanco's refusal to take 'no' for an answer and her determination to create an incentive and infrastructure package for Union Tank Car and Louisiana over the long term were the keys in landing this project. We will continue to target industries and businesses that are natural fits for Louisiana's extensive transportation infrastructure, emerging business climate and diverse, productive people."
      Texas got a second poke in the eye — and the Alexandria area another project — when Roy O. Martin Lumber management rethought its plant-location plans after Louisiana caught wind of them. Again, the governor played hardball.
     


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