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Monday, November 18, 2019

Pretty late in the game to be asking questions now

Did Kristin Palmer express support for Mayor Cantrell's Fair Sham bargain while the push was on to pass its enabling bills through the legislature? At the time it seemed like area politicos were presenting a united front. If an elected person had any questions at the time, I'd like to think I would have noticed.  I had plenty. But it sure felt like I was alone in that.

Anyway all that stuff passed months ago and now we have to deal with the consequences.  Which is why it's frustrating to see that now we're hearing complaints that should have been raised way back when.
The merger will transfer $8 million in annual funding and all but one or two of NOTMC’s employees to New Orleans & Company, NOTMC CEO Mark Romig told the New Orleans City Council at a Friday meeting. In Romig’s proposed 2020 budget, $1.8 million would remain with NOTMC for some lingering responsibilities, while $3.9 million would go to the city for infrastructure funding.

But some council members expressed concerns about accountability for the public dollars and other remaining uncertainties with the merger.

Councilwoman Kristin Palmer, who sits on the board of NOTMC along with council members Jay Banks, Helena Moreno, and Jason Williams, complained earlier in the week that she had yet to see a written plan for the merger.

“There are three other council members who sit on NOTMC and we have repeatedly requested information on any type of transition in writing, which we have yet to receive,” she said at a Monday meeting. “And meanwhile, [New Orleans and Company] is like absorbing and hiring all the NOTMC employees and we don’t know what’s going on.
What's going on is what was always in the plan since the deal was first announced. The public money that used to go to NOTMC (a public board) will now go to NO and Co. (a private entity) where there will be far less public oversight. This is in no way surprising to anyone.

Of course city council wouldn't really have much reason to speak up until it came time to start hashing out the budgetary implications of all of this. Which is why we're seeing this discussion now. In the same article we see there are also concerns about NO and Co.'s share of the short term rental tax passed over the weekend. Interestingly, the city still has a bit of leverage to play.
In July, the council voted to put the tax on the November ballot. But before it did, council members raised similar concerns about accountability and public input.

“The accountability and transparency question, the mayor recognizes that’s a concern for the council,” Cantrell’s Chief of Staff John Porciau said at the July meeting. “It’s a concern for her.”

If the ballot measure is approved on Saturday, it wouldn’t institute the tax right away. It would simply give the council the ability to levy a 6.75 percent tax. The council would have to vote again to actually put it into effect. It would also have to approve a cooperative endeavor agreement that would funnel the 25 percent from the city to New Orleans & Company.

“That is where we have our say regarding the transparency piece,” said Councilwoman Helena Moreno. “It’s on the CEA for that 25 percent that we’re going to have some control in making sure those tax dollars are used properly.”

She also said that the council has the option to refuse to approve the agreement until they find it to be acceptable. Until then, she said, the money would go into an escrow account that’s out of reach of New Orleans & Company.
It's a bit of a cop-out, though, for City Council members to wait until there's nothing they can do about these issues until they have to deal with the fall-out. The "accountability and transparency question" isn't new.  It was well understood even at the time that the mayor was negotiating the deal. Council is dealing with it now because she conceded on points her predecessor would not.
A push to merge the two groups in 2010 floundered over many of the same issues. Then-Mayor Mitch Landrieu objected because he wanted the organization that resulted from the merger to be a public body, not a private one like New Orleans & Company, according to the Times-Picayune. The NOTMC board ultimately voted against the merger in 2010.
Having given up the fundamental issue of whether or not public money should fall under public governance, we've backed ourselves into a position where we're hoping to negotiate over a small portion of what we still sort of control.  Maybe someone could have asked about that sooner.

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