Private industry and state and local public officials joined NASA Michoud Assembly Facility Director Lonnie Dutreix to break ground on a 50-acre development at the campus of the 829-acre facility Feb. 28 that is expected to be a major economic stimulus for the New Orleans region.
By Matt Higgins
Private industry and state and local public officials joined NASA Michoud Assembly Facility Director Lonnie Dutreix to break ground on a 50-acre development at the campus of the 829-acre facility Feb. 28 that is expected to be a major economic stimulus for the New Orleans region.
“Michoud is a unique NASA facility because we build spaceflight hardware for NASA, but we also host about 20 other government and commercial entities,” Dutreix said. “That model offsets operating costs and it’s a win-win for us and the tenants.”
NASA provides space to commercial and government tenants through its Extended Use Lease (EUL) agreements. EUL’s allow federal agencies to participate in real estate contracts with private and government entities to lease underutilized property and apply the proceeds to reduce overhead. The agency partnered with Industrial Realty Group in 2021 to develop available greenspace on the facility site for commercial use.
“Michoud is not only the nation’s rocket factory but an innovator, which is critical for the future,” said Jeff Schwartz from the City of New Orleans Mayor’s Office.
The area under development will provide warehousing. Once completed, the new warehouse will be the first constructed building on-site in more than a decade. Current Michoud tenant Textron Systems Marine & Land Systems will move into Building A of the new warehouse once construction is completed. Textron designs and manufactures specialty vehicles and equipment for military and commercial use. Textron uses Michoud as a base of operations for its marine and land systems.
IRG President Stu Lichter is confident additional tenants will seek out the available space.
“NASA has been an unbelievable tenant since day one,” Lichter said. “There’s a real demand to be near NASA.”
Michoud has been a site for commercial activity for decades. Prior to its inception as a NASA facility in 1961, Michoud served as an airplane assembly plant during World War II and a tank engine factory during the Korean War. Today, in addition to its primary role as the manufacturer of the Space Launch System and Orion Spacecraft, the facility serves as a major economic engine for the region.
The area under development will be the largest the region has seen in more than two decades. In its unique role as the nation’s space agency, NASA acts as a catalyst for economic activity through its public-private partnerships. NASA’s economic impact on Louisiana includes 2,601 jobs, $150.1 million in labor income, and $493.6 million in economic output. These economic activities generate nearly $16.2 million in tax revenues for the state and local governments in Louisiana, according to a NASA economic impact report.
“The connection to NASA isn’t just about space,” said Oliver Thomas, a City of New Orleans councilmember. “The connection to NASA comes from everyone in this city and to have another investment (in the city of New Orleans) is tremendous. We’re more than just a tourism economy, and with NASA as the anchor, the other partners have seen the value of the infrastructure here. I’m looking forward to the future.”
Higgins, a Manufacturing Technical Solutions Inc. employee, works in communications at Michoud Assembly Facility.