[StBernard] INSANE: State Bond Commission OK's Subsidies For Low-Income Housing In New Orleans CBD

[Westley Annis]

INSANE: State Bond Commission OK's Subsidies For Low-Income Housing In New
Orleans CBD

Posted by: MacAoidh on Thursday, February 23, 2012, 0:13

Tagged with: Bond Commission    new orleans

Just when they were FINALLY getting rid of the Iberville Housing Projects,
which constitute the worst utilization of prime real estate in North America
and represented perhaps the worst of FDR's New Deal federal abuses (to think
that Storyville, which by now would likely be considered one of the coolest
historical districts had it survived the wrath of the feds, was razed for a
housing project ought to make for a retrospective blood-boiling), we once
again have stupid government policy effectively depressing the economic
development of downtown New Orleans.

Kabacoff might well be right that 120 apartments for broke old people might
not ruin the neighborhood around the old Texaco building.

But Upper Canal Street is supposed to become something of a theater
district. And having the place be overrun with bag ladies and paupers
doesn't exactly scream glitz and glamour to attract the swells to the
theater.

Just on the other side of the Claiborne overpass from these two state-funded
slum generators there's a perfectly good bombed-out neighborhood which has
streetcar access to downtown and isn't going to be completely gentrified by
the new hospital construction there. Heck, just on the other side of the
approach to the Crescent City Connection and just to the lake side of St.
Charles Avenue is an ideal bombed-out neighborhood which also has streetcar
access to downtown.

Why is it necessary to put poor people on Canal Street? Isn't Canal Street
supposed to be the heart of New Orleans' Central Business District? Don't we
want Canal Street to show off the best our state's largest city has to
offer?

Instead we're going to put broke people into government-sponsored living -
not just nearby, like in the case of the Iberville projects, but directly on
the street.

Kabacoff is just looking at a good turnaround deal, and you can't really
blame him. He can get that old Texaco building dirt-cheap, then he gets the
state to float a bond for him to finance the renovation of the building.
Then he can get government-subsidized rent from his tenants, most of whom he
figures will be too old to really break the place up too badly (particularly
if he can find a way to limit the number of cats they take in). So sure,
he's going to tout the Texaco Building project as a win-win; a sizable
property is returning to commerce, it'll look a lot better once it's done
over than it does now and it won't hurt the neighborhood too badly.

As for the Hotel LaSalle, it was renovated as late as 2004 as a Southern
Decadence Festival hotspot and a venue for God-knows-what. A dead owner
later, the place was taken over by squatters who offered it as low-cost
housing for mimes before the NOPD shuttered the place in 2009. On the
surface, the idea for the latest renovation might make some sense. But
neither Landrieu nor the City Council think this is going to work.

The $11.6 million planned renovation of the former Hotel LaSalle, which is
connected to the Saenger Theater, will include 33 affordable rental units
and street-level retail space. Leasing priority will go to artists,
musicians and employees of performing-arts venues, according to statement
released by Reliance.

Reliance CEO Robert Jackson declined to provide further comment.

Opponents of the redevelopment argue that housing at that location does not
conform with the city's plans to create a thriving performing arts district
in that area. The Saenger, scheduled to reopen next year, is seen as one of
the anchor venues of the district.

Downtown Development District CEO Kurt Weigle noted that planners have been
talking about rezoning the area to allow for high-intensity, bright signage
that residents might find irritating. Weigle echoed other detractors in
stressing that the objections center around any residential use at that
specific location, as opposed to low and mixed-income housing downtown.

Weigle, along with City Council members Kristin Palmer, Stacy Head and
Jackie Clarkson and the Canal Street Development Corp. submitted letters of
opposition in an attempt to halt the project from moving forward. But their
concerns were at odds with at least one LHFA board member, vice chairman Guy
Williams, who said the new complex could be vital for people who will work
in the district.

Meanwhile, the Revive NOLA people the WWL piece references have a different
argument, and it's a pretty good one.

The 20th century was one long disastrous experiment in bad public housing,
like the infamous Cabrini Green. And now they want to make the Texaco
Building and the LaSalle Hotel into the new Cabrini Green. New Orleans has
tried these high rises, too - we all know the results. Working people in our
city deserve better than crime-infested high rises, and the taxpayers
deserve better management of our money.

.

The LaSalle Hotel developer wants to force people to be renters when they
could be homeowners. For 1/3 the cost of the high-density debacle, we could
help people become homeowners while building up neighborhoods that need
housing construction and more people. That helps everyone - it's common
sense.

There's also a major question to be asked here, which is this - if Mitch
Landrieu, who is the mayor of New Orleans, has a plan for that area which he
openly says these two warehouses for brokedicks do not comport with, why on
earth is the state of Louisiana forcing them down his throat? Who's in
charge of this Charlie Foxtrot?

Consider this from a month ago. It's the Times-Picayune's write-up of the
Texaco Building project getting some $22 million in Bond Commission funding
(the Hotl LaSalle project is only getting about $900,000 in tax credits).

The project caught some flak from commission members who complained that the
cost to renovate and build out the 112 units averaged about $297,000 each.

Rep. Jim Fannin, D-Jonesboro, said for that price, the bonds could be used
to build individual homes in New Orleans for the tenants. He said another
housing proposal before the commission would cost about $92,000 per unit.

"That seems to be a significant increase" for the Texaco units, Rep. Cameron
Henry, R-Jefferson, said.

Collen said more work has to be done to improve the structure than some
other properties seeking bond commission authorization.

The Texaco building project was approved even though the commission passed a
resolution several months ago placing a moratorium on bond issues involving
construction of new housing in New Orleans that is financed with federal
block grant money or recovery dollars.

Commission Director Whit Kling said the panel has heard - and approved - two
other housing requests at the behest of New Orleans officials, like the
mayor.

Kling said the rule remains in place pending hearing from officials of the
newly created Louisiana Housing Corp., which is expected to verify the need
of additional residential and rental units in Orleans Parish and other
areas.

"There were some questions raised about New Orleans becoming overbuilt" with
housing, state Treasurer John Kennedy told new panel members. Kennedy is
chairman of the commission.

Kling said the approval of the Canal Street project was only the third
exception made to the general moratorium.

Gov. Bobby Jindal's chief fiscal adviser, Commissioner of Administration
Paul Rainwater, urged the panel to approve the Canal Street project..

"We have always supported this as seniors housing," Rainwater said. "This
particular project will not have an impact on the overall (housing)
marketplace."

Rainwater said Mayor Mitch Landrieu supports that project and that the
development needs to be done. "This project has been delayed quite some
time," he said.

Did it sound like Mitch was all that fired up about the Texaco Building
project on today's WWL piece to you? Me neither.

By the way, here's the entry on the project from the minutes of the Bond
Commission's Jan. 19 meeting; for all the grousing the Picayune recorded
about the Texaco Building project, you'll notice how contentious the vote
actually was.

Mr. Kling provided a synopsis on Item 22, Louisiana Housing Finance Agency
(1501 Canal Senior Housing Project), and the Commission's existing policy
regarding housing in Orleans Parish. After some discussion Senator Murray
moved to rescind the policy regarding housing in Orleans Parish and approve
Item 22. The motion was seconded by President Alario. After some discussion,
additional information was provided by Josh Collen, VP Development, HRI
Properties. After further discussion, Representative Fannin offered a
substitute motion to approve Item 22 as an exception to the existing policy
and invite the new Louisiana Housing Corporation to discuss housing in
Orleans Parish. Senator Murray withdrew his previous motion.

Really responsive to the local outrage in New Orleans, no?

This looks an awful lot like $23 million in state dollars amid a bad budget
situation which will be spent on screwing up New Orleans' plans for economic
development within the CBD. And yet nobody from the Bond Commission seems to
give a rat's rear end about it.

Maybe this is much ado about nothing. But it sure seems like our tax dollars
are going up in smoke on real estate developments which don't really make
sense, and our politicians are largely oblivious to that fact.