It's fun when we get to
agree with Owen Courreges about something. It doesn't happen all that often. In turn, Owen rarely agrees with VCPORA. And yet here we all are in agreement. Well, except for the mayor, I guess.
In an utterly unprecedented move, Mayor Landrieu recently began to require property owners to sign lease agreements for the “air rights” to balcony features
that encroach on city property, leases that can cost upwards of $4,000
per year. The agreements are normally required before a property owner
can obtain necessary inspections or building permits.
What this means is that property owners are confronted with two
equally-perverse incentives: 1) to not build or retain their galleries;
and, 2) to refuse to cooperate with the city in securing building
permits for any work performed.
Predictably, advocacy groups and sundry neighborhood organizations
are up in arms. “It’s part of the fabric of the city. It doesn’t make
sense to penalize people for that,” said Meg Lousteau, head of the Vieux
Carre Property Owners and Residents Association (VCPORA).
Although we’re rarely on the same side of any issue, VCPORA has a
point here. Landrieu’s policy makes absolutely no sense, except in a
single regard – it generates revenue. One of the first tricks
Landrieu learned was to task his departments to increase revenues from
fines and fees through creative means. Agencies have become less
reasonable and more greedy under his direction.
In a way this is similar to the extortionate criminal justice system of fines and fees we just referenced in a
previous post. It's less egregious in that it's aimed at property owners in historic neighborhoods but the principle is the same. The city is on the lookout for ways to squeeze money out of, literally, thin air. And why not? I mean isn't this more or less what the whole 21st Century economy is based on?
Nowadays, imaginary value conjured out of nothing via regulatory arbitrage is the just a fancy way of saying "entrepreneurship." Besides tourism, the amazing resilience of the city's 'Treppin elite is the mayor's favorite subject. It's hardly surprising that any of this would be right up his alley. Doubly so when
someone finds a way to combine those two areas.
A formalized proposal to legalize Airbnb-style rentals in New Orleans could face it first vote Tuesday (June 14).
NOLA.com | The Times-Picayune will be in the City Council auditorium
to cover the City Planning Commission's meeting live when it begins at
1:30 p.m.
That's tomorrow. The rest of that T-P article is styled as a "primer" for those who may have come late to this. But here is the key bit about what tomorrow's meeting means.
In recommending the regulatory framework majority of the commissioners
voted against legalizing principal-residential rentals. However, the
City Council, at the request of Mayor Mitch Landrieu, then asked the
commission draft a set of amendments codifying the planning staff's
initial recommendation, which included them.
CPC, following the concerns of many residents and wary of the negative experience of "destination" cities around the world, wanted to limit the practice of turning whole homes and apartments over exclusively to Airbnb. The mayor rejected their modest recommendation and is making them do it over.
The public meeting is sure to draw a lot of attention. The pro-STR lobbying group with the Orwellian name "Alliance for Neighborhood Prosperity" is pretty good at turning out their membership to events like these when it counts. It helps that a lot of them are professional lawyers and lobbyists who can bill the time unlike the wage earning renters who have more trouble showing up in the middle of the day. So expect a lot of hot air in the room. If only there were a way to tax it.
Update: Ah and CPC has
postponed the vote. It looks like the topic is still on the agenda? Maybe? If so the meting might still be entertai9.