A Case Study:

The Organizations that Support Local Economic

Development within Hammond Louisiana

(Tangipahoa area)

Economics 697-01

By: Caley Ibele, Brian McGarry & Iya Tsyrkot

May 8, 2014

The city of Hammond was founded in the 1700‘s, and since it has considerably

grown and developed. There are no “proven” set of steps for success in achieving

growth or development because there are several factors that contribute to any areas

level of success. Entrepreneurs and local businesses must be supported, infrastructure

must be improved, and there must be an educated and skilled workforce. Each of these

efforts are necessary to create an attractive and developed economy; the city of

Hammond has several organizations in place to support these factors. It is important to

acknowledge Hammond’s history when analyzing the economic growth and

development in order to understand what has experienced actual growth and

development. Although a lot has changed since 1818, a snap shot of the original

industries will aid in describing the transition Hammond has experienced.

In 1818 a Swedish immigrant, Peter Hammond, founded an area at 30.5 N,

90.4W - which he called Hammond. Peter planted trees that he used in production of

masts, charcoal, and other maritime industry goods. In 1854, the New Orleans, Jackson

& Great Northern Railroad reached Hammond and Hammond Crossing was

established. Peter was convinced that the railroad would be a high source of revenue,

so he signed a contract forcing trains to stop in Hammond when they were passing

through. Many argue the railroad was the reason behind the city’s early success

because it brought both people and money into the area. Perhaps they and Peter were

right because last year the Amtrak generated $1,359,522 in revenue for Hammond

("Great American Stations.")

In 1859, shortly after Hammond Crossing was established, a man named

Charles Emery Cate moved to the area. It has been said that Charles was attracted to

the “lush” pines that Peter had planted earlier. Cate was responsible for laying the city’s

grid and forming several streets. He also surged the shoemaking industry by opening a

factory that provided shoes for confederate soldiers during the Civil War. Cate also

opened a tannery and sawmill. Around this time, strawberry farming boomed. Hammond

and surrounding cities have since benefitted economically from the rise of the

strawberry farming industry. Years later, Hammond became fully equipped with an

airport, interstates, and its very own university (“Great American Stations.”) The

combination of variety in transportation has caused Hammond to be referred to as a

“transportation capital”. Hammond is considered the largest city within Tangipahoa

Parish, and today houses many major businesses and distribution centers ("Hammond,

Louisiana.")

Hammond has its own agencies, organizations, and governing bodies that

monitor and promote growth and development such as: The Downtown Development

District, Small Business Development Center, Hammond Area Economic and Industrial

Development District, Tangipahoa Economic Development Foundation, Better Business

Bureau, Tangipahoa Convention and Visitors Bureau, City Council, Tangipahoa Parish

School District, and The Chamber of Commerce (“Hammond Chamber of Commerce.”)

The Downtown Development District, also known as DDD, was created by the

Louisiana State Legislature in 1986, and in January in 1987 Hammond formed its own

Downtown Development District. Their main goal is to upgrade, improve, and preserve

the Hammond downtown area. They achieve this goal by focusing primarily on

promoting four key areas: arts, retail, recreation, and business. They are also

responsible for hosting several community events such as Art in April, Hot August Night,

and Starry November Night. These events play a role in bringing residents and local

vendors together to promote the local businesses and the downtown area.

The DDD advocates several incentive and business assistance programs offered

through different local economic development organizations. The Enterprise Zone

Program offers monetary and fiscal incentives for creating new jobs. The Quality Jobs

Program offers rebates on payroll for meeting certain qualifications. The Restoration

Tax Abatement removes property taxes for five years when improvements are made to

historic downtown buildings. The Industrial Property Tax Exemption abates property

taxes for up to ten years when new investment or capital additions are made for

manufactures. They also support Federal Historic Preservation Tax Incentives, the

Facade Grant Program, the Revolving Loan Fund, Downtown Development District

Capital Projects, and Louisiana University Small Business Development Center (“About

DDD.”)

The Louisiana Small Business Development Center has been serving the North

shore parishes of St. Tammany, Tangipahoa, Washington, Livingston, and St. Helena

since 1984.Their goal is to create jobs and increase tax revenues with the hopes to

improve the local economy. LSBDC is funded by Southeastern, The Small Business

Administration, and Louisiana Economic Development. It offers free, confidential

business consulting and inexpensive training seminars designed to help businesses

attract customers, improve operations, increase sales, and successfully access capital

(“LSBDC at Southeastern Louisiana University.”) LSBDC consults about 400 people a

year and they have helped secure over $256 million in loans and equity capital. They

specifically aid in: creating business plans, finding financing, financial health checkups,

creating new marketing strategies, recruiting and training workers, supply chain

management operations, analyzing financial statements, and patent and product

development. Since 2003 the LSBDC has created 2,022 jobs and provided over 21,000

hours of training to businesses and staff (“Louisiana Small Business Development

Center.”)

The Hammond Economic and Industrial Development District, HAEIDD, was

created in 2003 by a Louisiana House Bill passed through Congress. HAEIDD is

currently made up of professionals, officials, and local business leaders. Members aim

to expand and grow the local economy; specifically by promoting increases to per capita

levels for its residency, attracting new businesses and industries, retain and promote

existing businesses. HAEIDD uses tax incentives as their main tool in achieving this

goal. Incentives focus on: work training and infrastructure, innovation and technology,

and the entertainment industry ("HAEIDD - Hammond Area Economic Industrial

Development.") The DDD advocates many work training and infrastructure incentive

programs that HAEIDD is connected to; for example: the Enterprise Zone, Quality Jobs,

Restoration Tax Abatement, and Industrial Tax Exemption. Another major incentive

concentration is towards innovation and technology. They specifically offer Louisiana

FastStart, Economic Development Award Program, Technology Commercialization

Credit and Jobs Program, and Modernization Tax Credit. These incentive programs

provide tax credits, workforce development aid, and loans /grants. Louisiana offers

several benefits in filming movies, but in addition HAEIDD offers Sound Recording

Investor Tax Credit, Digital Media Incentive, Motion Picture Investor Credit, Live

Performance Tax Credit. Each of these promotes entertainment within the community

and offers tax cuts on: qualified production, resident labor, and transportation

expenditures. Since 2006, Louisiana has hosted over 300 film and television

productions, but several of them were filmed in Hammond (“HAEIDD - Hammond Area

Economic Industrial Development - Tax Incentives.”)

The Tangipahoa Economic Development Foundation (TEDF) is made up of

business leaders, professionals, and public officials who work closely with TEDF’s top

three employers North Oaks Medical Center, Tangipahoa School System, and

Southeastern Louisiana University to create a conducive environment for new job and

business creation. They believe in addressing education and workforce development

needs, and public policy involving economic development. TEDF has a “master plan”

they follow in order to execute their mission, and the plan was adopted by City of

Hammond Planning Commission in 2011 ("Economic Basics About Tangipahoa.") The

master plan revolves around five main goals: marketing, business development,

workforce development, infrastructure development, and TEDF resource development.

It is their aim to enhance desirability and strengths and support attraction and

development in order to promote Tangipahoa Parish as opportune place to live, work,

and operate a business. TEDF keeps workforce, industry, and household data too,

allowing one to track the status and progress of Tangipahoa throughout the years

("Master Plan – TEDF.")

The Better Business Bureau (BBB) was founded in 1912 as a non-profit

organization. It consisted of 112 independent incorporations covering the US and

Canada. The BBB’s vision is to create an ethical marketplace where buyers and sellers

can trust each other. They believe the best way to achieve this is by creating a

“community” of trustworthy businesses, lead by example to set standard for trust,

promotes ethical practices, and reward / punish behaviors and practices of businesses.

This benefits local businesses and business owners, especially those who perform

business-to-business transactions. The BBB allows owners and managers the

opportunity to evaluate a company’s trustworthiness before negotiating begins ("About

the Better Business Bureau.”)

The Tangipahoa Parish Convention & Visitors Bureau is known as the “one-stop

shop for all things tourism.” It serves the obvious purpose of impacting the area through

attracting individuals to Tangipahoa Parish. The CVB is funded through a parish-wide

occupancy tax, and it offers a variety of “tourist” and “resident” services. For example,

they provide assistance in organizing sports tournaments, searching for local venues,

and booking hotels or conference rooms. They also keep local residents informed on

upcoming events, festivals, and parades. Hammond has several locations and activities

that attract tourist - Hammond Dreamland Skate Park, The Renaissance Festival,

Fanfare, Kliebert’s Alligator & Turtle Farm, and the Tangipahoa African American

Heritage Museum. There is also Global Wildlife, The Swamp Walk, Ponchatoula’s

Antique City, and Camp Moore’s Confederate Museum and Cemetery close by within

neighboring cities. The Visitors & Convention Bureau promotes people and local

businesses, and plays a major role in making Hammond attractive to nonresidents or

businesses (“About Tangipahoa.”)

The Hammond City Council is made up of workers, professionals, business

leaders, and public officials - such as the Mayor of Hammond. City Council’s generally

act as the legislative branch of the city government, and perform traditional

governmental services. Hammond City Council consists of sixteen different

departments; namely, city accounting, building, city court, fire, grants, human resources,

information technology, planning, police, public works, garbage, parks and grounds,

streets, purchasing, recreation, and water and sewer. Employees provide assistance on

an array of issues within these categories such as zoning regulations, levying taxes,

providing fire protection, or aiding in public drainage issues. But, they are not limited to

these “services”, they are also responsible for creating and promoting goals, projects,

and improvements for Hammond in order to achieve their goals (“City Council.”)

The Tangipahoa School District (TSD) acts as a major building block for

Hammond’s pursuit of economic development. Every area strives for growth and

development, but having schools that provide quality education is key in this desire. The

future generation must be able to enhance the current levels of business and quality of

life in order to see advancement. Also, strong school systems make cities more

attractive to families. Hammond offers access to eighteen K-12 schools (including

private and public), which provides ample opportunity to deliver quality education and

attract new residents. The TSD in partnership with the community seeks “to provide

strong instructional leadership, a safe and orderly environment, high expectations, and a

system to measure achievement which enable each student to achieve his / her

maximum intellectual capacity and to become an independently, contributing,

responsible member of society” ("Tangipahoa Parish School System.") With these

hopes in mind, the TSD has adopted a desegregation plan to counteract racial

segregation in local school. The desegregation plan is currently being funded through

existing one cent sale and use tax, proceeds of general obligation bonds, and new one

cent sale use and tax by Educational Facilities Improvement District. This plan has

already impacted Hammond Eastside, Hammond Jr. High, Hammond Westside, and

Hammond High School by creating magnet programs that specialize in areas like

communication, montessori, fine and performing arts, international baccalaureate, and

medical professions ("Tangipahoa Adopts Desegregation Plan During Turbulent

Session.")

The Hammond Chamber of Commerce consists of local business owners and

professionals. Their purpose is “to strengthen business climate, promote community

development, and enhance the economic vitality of the Hammond community within

Tangipahoa Parish”. They work to accomplish their purpose by promoting economic

programs and incentives offered to businesses and entrepreneurs in hopes to increase

income potential for the area. They also promote civic, social, education, and cultural

programs that add to Hammond’s attractiveness. They pride themselves in “giving your

business the ultimate edge” by networking, increasing traffic within local businesses,

and supporting your brand/ name among the community. Several well-known local

companies such as First Guaranty Bank, Worley, Regions, Whitney, North Oaks Health

System, Hammond Square, Louisiana Federal Credit Union, and Southeastern are

members of The Chamber. They also play a major role in leading people and

businesses to the organizations previously mentioned to gain business support and

incentives (“Hammond Chamber of Commerce.”)

Each of these programs and organizations has helped shape Hammond into

what it is today. Collectively, they promote the city of Hammond to make it attractive to

businesses, entrepreneurs, and tourists. They also encourage businesses and owners

by offering aid, incentives, and guidance on taking a business idea to reality. In addition

to those working to further economic growth and development for our city, Hammond

offers competitive advantage in its location and ease of access. Hammond is

conveniently located between interstates I-12 and I-55, and has access to Highway 51

and Highway 190 (“About Tangipahoa.”) As previously mentioned, the Amtrak station is

located downtown, and provides service for transporting passengers and cargo. Only

three miles away from the train station lies Hammond Northshore Regional Airport. The

920 acre airport is owned by the city and is noted as the largest general aviation,

reliever airport on the northern shore of Lake Ponchartrain. Access to several options of

convenient transportation allows Hammond to promote itself (“Hammond Airport.”)

With the help of these organizations and its own attractiveness Hammond has

progressed from housing a shoe factory and saw mill to offering several diverse

industries within the workforce. In 2011, the ten most predominate industries within

Tangipahoa Parish (not in order) were: retail, health care, social services, food service,

educational services, manufacturing and transportation, construction, wholesale trade,

finance and insurance, public administration, and waste services. Tangipahoa’s largest

employers include North Oaks Medical Center, Tangipahoa Parish School System,

Southeastern Louisiana University, North Lake Support & Services Center, Sanderson

Farms, Wal Mart Distribution Center, Neill Corp, LSU Medical Center, Elmer Candy

Corp., and Winn Dixie Distribution Center (“Hammond, Louisiana.”)

When compared to other areas the Hammond area offers a friendly business

environment along with supportive organizations for thriving industries and business

alike. These offerings provide sustainable living conditions, tools for success, and

competitive advantages to stimulate continuing and existing economic development and

growth. To conclude, Hammond's rich and cultural past and bright future make them a

strong contributor to Louisiana's overall health.

Works Cited

"About Tangipahoa." http://www.tangi-cvb.org/site.php (accessed April 6, 2014). "About the Better Business Bureau." About the Better Business Bureau. http://www.bbb.org/baton-rouge/get-to-know-us/about-us/ (accessed April 27, 2014). "Economic Basics About Tangipahoa." Home - TEDF. http://www.tedf.org/ (accessed April 6, 2014). "Great American Stations." Hammond, LA.” http://www.greatamericanstations.com/Stations/HMD (accessed May 6, 2014). "HAEIDD - Hammond Area Economic Industrial Development." Hammond Area Economic Industrial Development. http://haeidd.org/ (accessed April 27, 2014). "Hammond Chamber of Commerce." http://www.hammondchamber.org/ (accessed April 6, 2014). "Hammond, Louisiana." (LA) profile: population, maps, real estate, averages, homes, statistics, relocation, travel, jobs, hospitals, schools, crime, moving, houses, news. http://www.city-data.com/city/Hammond-Louisiana.html (accessed April 6, 2014). "Master Plan - TEDF." Master Plan - TEDF. http://www.tedf.org/master-plan.aspx (accessed April 27, 2014).

Southeastern Louisiana University. “Louisiana Small Business Development Center.” Southeastern.edu. https://www.southeastern.edu/admin/sbdc/ (accessed April 14, 2014)

Stewart, Robert. "Tangipahoa Adopts Desegregation Plan During Turbulent Session." The Advocate, September 1, 2013. "Tangipahoa Parish School System." http://www.tangischools.org/site/default.aspx?PageID=1 (accessed April 1, 2014).

The City of Hammond, LA. “City Council.” Hammond.org. http://www.hammond.org/?page_id=9 (accessed April 19, 2014)

The City of Hammond, LA. “Hammond Airport.” Hammond.org. http://www.hammond.org/?page_id=202 (accessed April 19, 2014)

The Downtown Development District. “About DDD.” DDDHammond.com. http://dddhammond.com/ABOUTDDD/tabid/93/Default.aspx (accessed April 19, 2014)

The Louisiana Small Business Development Center. “LSBDC at Southeastern Louisiana University.” LSBDC.org. http://www.lsbdc.org/slu/ (accessed April 14, 2014)