The STR based economy

Did you know the real estate market of the French Quarter was entirely dependent upon short term rentals? Bob Ellis seems to think so. 

Ellis said he's never seen so many for-sale and for-lease signs when he walks through his neighborhood, and some landlords and owners are worried. "There are a ton of people that have vacation rentals here," Ellis said. "That's how they offset the cost of owning a home here. It's going to be extraordinarily hard on people, and I think that's why you see so many listings right now."

Now look who's worried about STR regs and their effect on real estate prices.  Isn't that something. It's only a tragedy when rich people make slightly less money, of course.  Nobody cares if your rent is too damn high.

As funny as that is, though, I'd like to call attention to this little bit that may not be mentioned often enough. 

There is one exception to the French Quarter ban -- the Vieux Carre Entertainment District in the liveliest section of Bourbon Street, a seven-block stretch where city officials hope property owners will develop the vacant upper floors of their buildings into homes.

LOL "homes." Sure. Anyway, remember this as we continue reading and talking about how the city's plans for Bourbon Street.  A city street converted into a quieter, more restricted entertainment courtyard (perhaps where the bars even close) might make those "homes" more appealing to the luxury tourists who live in them.

Speaking of which, I still haven't figured out how these.. I guess.. barricades(?) are supposed to work, exactly. I only noticed them during French Quarter Fest.  I kind of want to race them downhill somewhere.

Save the Moguls

And now a very important message from Bob Ellis and Stacy Head and the poor oppressed landlords they represent.

Legalizing Dizneylandrieu

Nobody actually lives here anymore.  The rent is too damn high because renters have to compete with luxury travelers and support staff for movie production.

Then there are all the other people touched by film in uncounted ways — for instance, people who rent their homes out as film sets or lodging. A website called Key to NOLA caters to the industry with short-term, high-end rentals, some going for as much as $5,000 a month.

We could try to remedy this situation via our political process but it turns out that the political process isn't interested in our problems.  Because gentrification is the policy choice our city has made.

NEW ORLEANS, LA (WVUE) -Among the crowds of tourists who flock to New Orleans each year, many seek short-term rental properties for lodging.

While the growing underground industry is illegal in the city, some hope that will soon change.
"There are definitely people who want to stay in homes. They like the idea of having a living room and kitchen," said one rental property owner, who asked to remain anonymous. “We would like to see the business regulated and taxed."

The property owner is part of a group that calls itself, the Alliance for Neighborhood Prosperity.

During a city council committee hearing Wednesday, Alliance members are expected to continue their push to legalize vacation rentals, but they face opposition from several groups.

The "Alliance for Neighborhood Prosperity" you may recall is a group of landlords headed by former city attorney Bob Ellis.   Their plan to turn more of the city's rental housing stock over to the short-term luxury market is pretty much in line with Mayor Landrieu's "boutique city" strategy for growing the tax base by removing the poor we've discussed over and over to little avail here.

Anyway they've accomplished their first goal which is turn this into a "both sides" kind of issue that makes it easy for the press to frame in amoral he said/she said terms.

For now, the fierce debate continues.

"I think (a law change) definitely will get passed. I think the people on city council realize it will produce revenue for the city, which we need," said the rental owner.

“What this really comes down to is, who do you think New Orleans is for? We think New Orleans is for New Orleanians -- the people who live here, work here, go to school and go to church here, vote here. This other group seems to think New Orleans should be turned over to tourists," Lousteau said.

Should the city serve its citizens or its landlords?  "The fierce debate continues."  Well, until the landlords inevitably win, anyway.  

Controversial

In New Orleans, it is apparently controversial to say, "people are more important than property."

Ramsey also addressed her recent controversial remarks on preservation. Last month, in arguing in favor of granting a property owner’s request to tear down her 1920s-era building, Ramsey said she believed people were more important that property and that “preservation is important but not at the expense of forcing people without means or of limited means to take their property away from them.”

The comments did not go over well with Council President Stacy Head or preservationists.

During her address Wednesday, Ramsey said that protecting the integrity of historic structures and accommodating the needs of people who live in them is a “very delicate balance.” “I see the value of both goals and I do not believe that they are mutually exclusive, but rather that they can work hand in hand,” she said. “These matters will have to be decided on a case-by-case basis.” She added that she would work with property owners and preservationists to obtain the “highest use” of buildings.

Also, Ramsey said she's working on an ordinance to crack down on the Airbnb-ification of everything.  That sounds good, but remember, Bob Ellis has already organized a lobby of property owners pushing for laws that loosen restrictions on short-term rentals.  So chances are whatever ordinance finally gets passed will end up doing more harm than good.

Fractured Fairy Tales: Pay for performance program

It started out one afternoon when Ray Nagin was relaxing in his office with his copy of  Naomi Klein's The Shock Doctrine which he had been using as a how-to manual for governing post-Katrina New Orleans. Nagin would later offer this review of the book in an interview with Ethan Brown.

“I understand exactly the premise that they’re presenting,” Nagin says, holding the book aloft, “that’s for sure. Look, man, after this disaster there is big money! The shock-and-awe piece of what they’re talking about is absolutely correct.”

Nagin was reaching for his highlighter when Jonathan Vilma and Gregg Williams burst into the room and slammed an envelope down on his desk. Audio provided by filmmaker Sean Pampilon (who was following Williams around constantly at the time) reveals the following exchange.

"You want it?" Williams asks. "[Expletive] no," a voice answers, as others in the room applaud. "OK, it's $200 – you got it for a 'whack,' " Williams says. The rest of his words are drowned out by loud cheers.

We believe the "others in the room" at the time may have been Kip Holden and Bob Ellis although the only thing we're certain of at this point is that "Public Official A" is definitely Nagin.

Curiously Williams appears to have misspoken on the tape.  As it turns out, the money was actually distributed in $10,000 increments by somebody named Fradella.  Furthermore the money was not awarded for "whack" hits but instead for "cart-offs" of Fradella's granite.

During Nagin's tenure at City Hall, Fradella also donated "numerous truckloads" of granite -- the document does not say what its value was -- to the Nagin family's countertop business, Stone Age LLC.

Immediately upon leaving office, Nagin began working for Fradella as a paid consultant, according to the document, which is signed by Fradella. Fradella paid him $10,000 a month, an arrangement that lasted until March 2011, roughly 10 months after Nagin exited City Hall, it says.

None of these inaccuracies should surprise us, though, since anyone who watched the final minutes of the Saints-49ers Divisional Round playoff this year is aware that Gregg Williams never has any idea what he's doing or saying.

We're told that there may have once been some supporting evidence for the Nagin-Fradella pay for performance program at the bottom of an email to Nagin ,allegedly sent by Mike Ornstein but the email was subsequently erased by Greg Meffert.  Meanwhile Jonathan Vilma is suing Roger Goodell for having been implicated in this business at all.

Also due to some unfortunate internet commentary leveled by members of the totally not legitimate media, NFLPA spokesman, Fred Heebe, has already asked that the US Attorney in New Orleans recuse himself.

So everything seems pretty murky at this point. But Pamphilon, for his part, wants to remind us to please think of the children which he'll be available to do via any outlet that will give him air time.