Closing the Gap: A new order of business

• By JOE GYAN JR.
• Advocate New Orleans bureau
• Published: Jul 22, 2007 - Page: 7A

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NEW ORLEANS — Chevron is relocating to St. Tammany Parish. Freeport-McMoRan Copper & Gold moved to Phoenix. Tidewater is eyeing Houston, and the hurricane-damaged Dominion Tower office building across from the Superdome remains shuttered nearly 23 months after Hurricane Katrina.

The post-hurricane fallout in New Orleans’ Central Business District and the migration of people to outlying parishes raises the question: Is the New Orleans area becoming a doughnut, with a void in the center and activity around the edges?

Many New Orleans business and political leaders categorically deny New Orleans’ core economy is fading. While experts tend to agree with that assessment, some also say the traditional economic relationship between New Orleans and the surrounding parishes has probably changed forever.

Economist Tim Ryan, chancellor of the University of New Orleans, said that although the doughnut scenario is certainly possible, he doubts it will happen.

“Is the region becoming more of a doughnut  than a spoke-hub? Clearly there’s part of that, but not as much as you might think,” he said. “Oil and gas is one example where it’s happened.’’

Ryan notes that major banks still are headquartered in the city, as is the tourism industry, shipping and higher education. And in the oil and gas sector, Shell Exploration & Production remains in the Central Business District, he added.

Mayor Ray Nagin is quick to point out that 97 percent of the city’s medium and large businesses have returned.

“Business is back,’’ said Bill Oliver, president of AT&T Louisiana.

AT&T bought out BellSouth Corp., getting Cingular Wireless in the process. In May, AT&T installed its blue globe on the former BellSouth building on Poydras — calling it a long-term commitment to New Orleans.

“To me it was a lot more than, ‘Let’s change the sign on the building,’’’ Oliver said.

Rod West, a member of the New Orleans Business Council and president and CEO of Entergy New Orleans, said he is optimistic about the Central Business District and French Quarter — both of which escaped the massive flooding that hit 80 percent of the city.

“I do not agree with the assertion that New Orleans is akin to a doughnut with a void in the center. The center of the city is very much alive,’’ West said. “The level of activity is there in terms of a business core. Of course, we’re not talking about being up to pre-Katrina numbers. The real issue is sustainability over the long term.’’

So can New Orleans remain a core economy for the surrounding area?