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Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts

Tuesday, September 16, 2025

Werlein's Chicken Shack

Now we know why the Palace Cafe closed down in an acrimonious dispute over the building. Apparently, there was a different buyer on the horizon

The landmark Canal Street building that was the longtime home of the Palace Café is set to be sold to a member of the Motwani family, but ongoing lawsuits from Dickie Brennan’s restaurant group have stalled the deal.

At issue is the historic Werlein’s Music Building, a four-story commercial property in the 600 block of Canal Street, which was constructed in the late 19th Century and was the home to Philip Werlein’s flagship music store. Dickie Brennan & Co., owned by Brennan, his sister Lauren Brennan Brower, and Steve Pettus, operated the Palace Café there from 1990 until its 35-year lease expired in June and the restaurant closed.

The French Quarter is basically Motwanivania now.  If someone complains to you that the whole thing is just daiquiri shops and tacky overpriced souvenir stores, just tell them it is because those guys own everything down there. 

Although, I probably should change the title of this post. Apparently the guy buying Werliens is a completely different Motwani from the Chicken Shack Motwanis. Still, the larger point is, if you're trying to make sense of downtown New Orleans, you need to know your Motwanis. 

New Orleans family businesses

Motwani, 46, is a property owner and businessman who operates independently from his father Kishore "Mike" Motwani and his brother Aaron Motwani, the owners of several Willie’s Chicken Shack and Praline Connection outlets on Canal Street and in the French Quarter, as well as the Sucré pastry shop on Magazine Street and other businesses.

Aaron and Mike Motwani also operate Quarter Holdings, which includes several downtown projects that are converting buildings into multi-unit short-term rental operations that will be run by Sonder.

Lenny Motwani owns dozens of companies, according to business records, including ATM machines, condominium and apartment complexes, and commercial sites leasing to Brother's Food Mart and Magnolia Enterprises convenience stores. He also owns the Blue Bayou Restaurant & Oyster Bar on Canal Street, a block away from the Palace Café.

What does it mean for the future of the now former Palace Cafe?  Well there's a legal dispute with the Brennans still to be ironed out. But assuming the Motwani deal goes through, the article suggests iSeatz  CEO Kenneth Purcell may have something to say about it.  He's rumored to be part of the deal.  Apparently he has opinions about Canal Street anyway.

Purcell said that whatever happens next with the property it will have to recognize that the types of tourists and other visitors drawn to Canal Street have changed over the years.

"I hope that area has an opportunity to shine again," Purcell said.

Unfortunately the reporter didn't ask Purcell to elaborate on that. The "types of tourists" you see downtown haven't changed a whole lot since the Palace Cafe opened in the 1990s, as far as I can tell.  

Friday, December 06, 2024

Over the rusty rainbow bridge right into Galt's Gulch

Oh no! A Bywater hotel project ran into some minor pushback from the neighborhood. What will we do when all the real estate vampires good entrepreneurs are driven away by the negativity of the pesky residents? Who will "create and build" all the STR hotels for destination weddings then?

In an email to council members early Friday, Fuselier said the city has "rigged the process against developers," and blamed neighborhood groups for being "manipulative" and driving economic development from the city.

"All of our good entrepreneurs and people that aspire to create and build leave. People that want to do business here leave. They are forced to shut down or not even try, and we are left with these negative types that don’t really add much to the equation," Fuselier wrote.

Anyway, what he's mad about here is City Council told him he could not build his hotel 4 feet taller than he originally said he would. Also he is still going to build the hotel. He's not actually being driven away anywhere.

Tuesday, April 30, 2024

Someone should stop the crime that is in progress

 I'd call the police but it looks like they are in on it.

The NOPD has lobbied for new space for years, and Kirkpatrick has made it a top priority since taking over the department in October. Initial lease terms were agreed to in January, but some council members said they had been blindsided when it was unveiled to them in March.

Now a revised lease, up for council consideration in a special meeting on Wednesday, would add significantly more space at a higher cost per square foot. The latest draft adds a third floor to the space at 1615 Poydras Street and increases the total square footage from about 45,000 to 69,000.

The lease rate increases from an average of $170 to $180 per square foot over a decade.

If the New Orleans Police Department occupies the space at 1615 Poydras for all 10 years, the city will pay a total of $12.4 million, an increase from $7.7 million under the initial deal for the smaller space earlier this year. 

Mayor LaToya Cantrell’s administration did not immediately respond to questions on Tuesday as to why it wants to add more space and agreed to pay a higher rate.

Good luck getting an answer out of them. Maybe it will be on the next podcast. Otherwise maybe FOIA some emails. You know, while that is still legal

Anyway... previously on Flip This Office Tower we learned the city had been in talks over this lease for at least six months before Frank Stewart sold the building.  Not sure where this sudden escalator clause came in.  We keep hearing that downtown office space is a soft market. What happened?

Sunday, March 17, 2024

Rats gotta eat

First of all we'd like to thank NOPD Chief Anne Kirkpatrick for choosing to drop this Weed Rats meme on us just after Mardi Gras.  It means that everyone who might have had to scramble for ideas a few weeks ago will now have a full year to really sit with the image and decide whether or not it is truly the costume for them. 

Heavy mold and deteriorating elevators, HVAC units and plumbing are some of the issues that have been plaguing New Orleans Police Department headquarters.

But those aren't the only problems at aging police facilities around the criminal justice complex near Tulane Avenue and South Broad Street. Don't forget the vermin, NOPD Superintendent Anne Kirkpatrick told the City Council's Criminal Justice Committee on Monday.

"The rats are eating our marijuana," Kirkpatrick said. "They're all high."

The great thing about the weed rats is everybody immediately loves them. But also nobody actually believes they are a thing. I mean, sure, there are rats at police headquarters. That's easy enough to believe. But, if anything is being stolen from the evidence room there, it's far more likely the culprits are in uniform.*  Even more dubious is Kirkpatrick's claim that the rats are "high." Rats can and do get high. We learn that from this study where rats were observed with increased appetite and laziness after exposure to cannabis vapor.  The key bit, however, is the vapor. Could the rats get high from just eating the raw plants?  I don't think it works like that. 

Anyway, why is this colorful fantasy being brought to our attention now?  Well, you see, NOPD wants a new headquarters. Actually, that's not entirely accurate.  They aren't necessarily asking for a new building. We just know they want to move out of the one they have

A plan to relocate New Orleans Police Department headquarters into two floors of a downtown office tower is a large piece of a wider vision to leave behind the city’s crumbling justice complex in Mid-City, said chief administrative officer Gilbert Montaño on Wednesday.

About 400 police department staffers are slated to relocate with the pending move to the 17th and 18th floors of 1615 Poydras Street, called the DXC building, he said. The draft 10-year lease, which awaits City Council approval, calls for a May 1 move-in date.

The plan is to abandon the current HQ located in the (geographic) center of the city with its proximity to the criminal courthouse and central lockup and move, instead, into an office tower downtown with limited public access and practically no parking. Oh and also now the city doesn't control the building and is paying rent to a private landlord for at least 10 years. This is short sighted, minor league city type stuff. The police aren't even "allowed" to do police business in the police office. 

Lahasky said the lease will not allow NOPD to conduct interrogations or make arrests within the office building.

“Our agreement with NOPD is that the offices will be utilized as administrative offices, and that certain uses such as interrogations and lineups and things that outsiders perceive as maybe not the kind of uses you’d like to see in an office building” won't be allowed, he said. “Those particular uses are to be held off-site.”

Nothing about this makes any sense in terms of public service.  It does make sense if you come at it from the point of view that the city government exists solely to facilitate real estate deals that benefit the succession plans of fading oligarchs like Frank Stewart.  Which is precisely the sort of thing you might think if you are Gilbert Montaño. 

Negotiations began in earnest about six months ago, Montaño said, when the building was still owned by businessman and philanthropist Frank Stewart. The Monroe businessmen who bought it at the end of last year, brothers Eddie and Joseph Hakim, also own Orleans Tower, the former Amoco Building a few blocks away. The city leases space in that building for the Department of Safety and Permits, Civil District Court clerk and Civil Service Commission, among others. 

Frank Stewart, for those who need a refresher, is a billionaire investor whose fortune derives from his family's funeral home business.  The "philanthropist" descriptor he gets in articles like the one above is an inevitable result of owning lots of things (downtown office towers, for example) and making use of as many tax write-offs as possible.  In recent years, his "charity" work garnering the most attention was his leadership of the Monumental Task Force's attempts to maintain the city's Confederate statues. In 2017, he took out a full page ad in the newspaper denouncing Mitch Landrieu's efforts to have them removed.  Mitch was on his way out of office and working on his national profile at the time.  Because of this, he could afford to ignore Stewart's provincial concerns.  The same could not be said for Stewart's ambitious local ally in the monumental "lost cause," Councilwoman and soon to be Mayor LaToya Cantrell.

On Dec. 17, 2015, the day the City Council voted to remove the monuments, Cantrell, then a council member, gave a speech that must have been music to the ears of the pro-monument crowd, chastising then-Mayor Mitch Landrieu for bringing the issue to light. Amazingly, within the same hour she joined the majority of the council in voting for removal.

In early 2018, within a few months of being elected mayor, Cantrell empowered a secretive working group of Confederate monument supporters to decide the future location of the warehoused monuments. One of her spokesmen stated, “She believes that the future of the former monuments belongs in the hands of those who care about them.”

It’s highly likely that the only reason the mayor didn’t go through with the group’s relocation plan, moving them to another prominent location, was the exposure she received in an article by Kevin Litten published in The Times-Picayune. The article exposed Cantrell’s willingness to placate the side of the argument endorsed by some of the most moneyed and powerful people in the city — the side she voted against as a City Council member.

None of that was surprising. Both mayors (and a number of other state and local politicians) have done plenty of favors for Stewart over the years. In 2017, the same year the monuments controversy came to a head, they all helped swing the deal that gave Stewart's building its "DXC" moniker. That $120 million deal committed the city and the state to a package of subsidies and incentives including an agreement to rebate the payroll of software company DXC in exchange for its promise to occupy ten floors of Stewart's tower. The company and the politicians promised as many as 2,000 new "tech" jobs.

Of course, there were those of us who, just days after the announcement, observed that DXC appeared to be taking advantage of the state's generous corporate welfare offerings in order to facilitate its own global downsizing and outsourcing scheme to cut jobs and wages. But nobody ever listens to those of us who say such things. Anyway as time went on, it became clear that DXC was never committed to hiring locally. Over the following years, they would repeatedly miss the goals set forth in the original agreement. As of 2022, they had nearly scuttled the entire thing and were looking to sub-lease much of their office space in the tower.

In the meantime, The Cantrell Administration has spent plenty of time and energy trying to figure out ways to plug the hole in Stewart's revenue stream.  At one point they even considered moving City Hall into the building.  Which brings us up to last year when we find an aging Stewart trying to liquidate his asset portfolio in a slow market for downtown office space. At the time of the sale, the building was roughly 50 percent vacant. But its buyers, Eddie and Joseph Hakim were strangely bullish on its prospects. Likely the, by then, well underway negotiations over a guaranteed NOPD tenant had something to do with that.

All of this is typical New Orleans cronyism. But it also reflects the conservative ideology at the heart of the Cantrell administration. Gilbert Montano said recently that "the future" of city government should rely more on regressive user fee-based budgeting rather than a reliable tax base for dependable services. Under that kind of regime, there can be no real investment in social or physical infrastructure. City services will exist under continual threat of cuts. City departments won't own their own buildings.  Not even the police.  The only dependable revenue streams created go the other direction. Out of the public coffers and into the hands of corporate landlords.

For his part, (potential mayoral candidate) Oliver Thomas wants to put a pause on the NOPD lease because he doesn't feel adequately communicated toward.

“Not only was there a lack of communication about this viable move, but it seems like there was not a lot of thought put into multiple locations that would provide the best access to the men and women that utilize the headquarters, as well as the citizens to whom access is extremely important,” Councilmember Thomas said in his letter to Montano and Chief Kirkpatrick.

Thomas wants to “take a step back” to review other possible locations for the new NOPD headquarters.

He says he’d like to see the new NOPD headquarters be in a location that is more “community-oriented” with easier parking and that could become a more permanent spot that would add “value to the community.” He also says he’d like to see the new NOPD headquarters be in a location that would add overall access to residents in the city.

The kids are already joking that maybe Thomas will suggest putting the new HQ at the Six Flags site his friend Troy Henry is supposed to be redeveloping. But it occurs to us that this would put us a step closer to the New Orleans Cop City we've already speculated that Mayor OT might build one day. So maybe it's not that funny. In any case, it wouldn't represent a change in governing philosophy so much as a slight adjustment in the direction of the spoils.  It's never really a question of whether the rats are going to get a piece of the stash so much as it is which rats in particular.



 *That link references an evidence room scandal from 15 years ago.  When I started writing this post, I hadn't yet seen the latest one out just today.  Interesting that after the weed rats got their fifteen minutes of fame, NOPD has moved right along to blaming the conveniently deceased for what is clearly a systemic issue.

Wednesday, January 31, 2024

Wise allocations of public capital

Why does one city need to dedicate public money and tax privileges to two different golf arcades three miles apart from one another? Well, it's kind of an accident. Or a series of accidents. Not well-intentioned accidents, mind you. These are the kind of accidents that happen when all of your policymakers begin with the assumption that the only lever available to anyone in government is the one that gives nice things to the already wealthy. 

Xiao, a Denham Springs-based businessman whose interests include Airborne Extreme trampoline parks in Louisiana, has been working on the Five O Four project since he purchased it from developer Joe Jaeger in late 2022.

Jaeger and his partners bought the site, the former home of The Times-Picayune, in 2016 for $3.5 million. Originally, he had a deal with Topgolf to build an outlet there. In 2017, after Topgolf pulled out, he struck a deal with rival chain Drive Shack to build one of their facilities.

In 2019, a decision by the Convention Center board to quietly propose a Topgolf on the land they controlled prompted an angry response from Jaeger and questions about why the state-sponsored facility would try to compete with a private development nearby.

Then-Gov. John Bel Edwards said it didn't make sense for two such similar outlets so near together and the Topgolf project appeared to be dead. But the pandemic slowed — and eventually scuttled — Jaeger's plans at the Howard Avenue site until Xiao stepped in with Five O Fore.

Xiao has subsidy deals both from reduced local property taxes and from a deal to recoup an additional 2% sales tax to pay for part of its development costs.

The Topgolf project was revived last year by the Convention Center. Topgolf will pay for the development costs itself and will sublet the land from RDNI, which is a long-term tenant of the convention center on that plot.

Topgolf is not seeking any direct taxpayer subsidy, though it is within the River District economic development district, which means it would raise an incremental 2% sales tax that can be used for River District development costs.
The article could have also mentioned the separate $21 million tax break doled out to Shell as part of that same River District scheme.  But try not to think about that right now. 

Anyway one of the golf arcades is suing the other one now over "unfair trade practices." That's pretty rich considering how both of these businesses got here in the first place.

Monday, January 08, 2024

Hard Rock fell down. Kailas got up again

 You'll never keep this city's permanent wealth class down

The lead developer of the Hard Rock Hotel, which collapsed while under construction in 2019, has begun construction on a major new project in a former downtown office building two blocks from the site of the fatal disaster.

Mohan Kailas and his partners in the new venture are planning to turn the 31-story skyscraper at 1010 Common Street into a mixed-use complex with two hotels, including a 250-room Fairmont Hotel with a rooftop pool.

The project, which will cost more than $90 million, will also include an extended stay Element Hotel and six floors of office space.

It's so obscene you almost have to admire it. 

It’s the first big project for Kailas, a seasoned developer with several successful real estate projects under his belt, since the Hard Rock fell. The collapse killed three construction workers and injured dozens of others. Kailas was never accused of criminal wrongdoing in connection with the disaster. In legal filings and prepared statements, Kailas and his partners have blamed the project’s engineer and steel provider for the structural failure, which remains the subject of more than 100 unresolved lawsuits.
Oh well, no one to blame. Nothing has to change. And now we're right back to building nice things for rich people in a city facing an ever-worsening housing crisis. Yes, there will be a public subsidy. Why even bother asking anymore, really. 

Kailas and his partners in the project, which include Atlanta-based investment group Monarch Private Capital, will use federal historic building tax credits to help finance the building’s conversion. The tax credit program enables developers to recoup 20% of what they spend rehabilitating a building.

Tuesday, January 02, 2024

I suppose we can kick off 2024 with a quick told-you-so

The building we've come to know in recent years as "DXC Tower" has been sold

Two Monroe businessmen and real estate investors, the brothers Eddie and Joseph Hakim, have purchased one of New Orleans' most visible office buildings: the green granite high-rise at 1615 Poydras St. currently named for its anchor tenant, DXC.

The Hakims bought the 23-story building from its longtime owner, businessman and philanthropist Frank Stewart, late Friday. The price was not disclosed.

It's the second Poydras Street high-rise for the Hakims. In 2013, they bought the 20-story Orleans Tower, formerly the Amoco Building, for $16 million and breathed new life into the aging tower, located across from City Hall. They renovated it and raised its occupancy from about 45% to more than 80% today.

The article does its best to suggest that somehow this sale indicates the market for New Orleans downtown office real estate is bucking trends.  It says the sale is a "bright spot" in a local office market where occupancy rates are still below pre-COVID levels but "better than in many larger cities." 

Anyway it's all nonsense. Read further and we see the real reason this building is being sold now is because Frank Stewart is dumping properties, possibly at a financial loss.  

Now 89, Stewart has been trying to downsize his real estate portfolio in recent months and has spent much of 2023 quietly marketing 1615 Poydras for sale. Those efforts got a boost in late September, when Stone’s firm listed the building publicly.

No asking price was specified, but an online flier said the building was less than 52% occupied and being marketed “in cooperation with the lender ... at debt amount.” In real estate terms, that meant Stewart and his partners in Stewart Capital were working with their lender to sell it, even if at a loss, in hopes of avoiding a default on the mortgage.

It is unclear how much Stewart and his partners still owed on the building at the time of the sale.

Read even further than that and we get an update on the status of the building's current titular tenant. 

Since 2017, the building has been named for DXC Technology Co., the Ashburn, Virginia-based firm that opened a regional office in the high-rise amid great fanfare and a promise of up to 2,000 jobsThe company hired only a fraction of its promised workforce and has since downsized its footprint in the building.

DXC continues to honor its lease on the building, which runs through 2031, but is currently trying to sublease four of its six floors, according to online real estate listings. Lahasky said the family has not had any conversations with the company but that meeting with DXC to discuss the lease will be a priority.

Of course, DXC didn't merely "open a regional office" there.  The "great fanfare" referenced in that passage also included a hefty public subsidy from the state and the city. The deal looked incredibly shady to us, especially given the company's outsourcing and downsizing strategy at the time. We did say so

Anyway, nobody remembers any of that. On to the next boondoggle, I'm sure. 

Tuesday, October 31, 2023

"Hot commodity"

 Your District Attorney is doing a little forcible real estate flipping

The structure is one of three surviving buildings from the Storyville district, according to a 2022 City Planning Commission report. It once housed seminal jazz clubs Frank Early Saloon and My Place Saloon.

In 2019, the location at 1210-1216 Bienville Street was cited for demolition by neglect by the Historic District Landmarks Commission. The case remains open and the $3,075 fine unpaid, according to public records.

Williams described the historic property as a "hot commodity," though its future is murky. Williams said he'd like to see it house fresh produce for sale to the neighborhood. David Abbenante, president of HRI Management, developer of the abutting, mixed-income Bienville Basin Community apartments, said the impact of the market's closure is just beginning.

Civil asset forfeiture is a controversial practice that has been banned in four states. Louisiana's laws are among the ripest for abuse in the nation, according to the libertarian Institute for Justice, which gave the state a D+ grade.

Williams, throughout his career in politics, has been rolling in contributions from developers.  Here's a brief taste from the 2020 Antigravity voter guide, for example. 

Williams has received money from charter school supporter Leslie Jacobs, a point of concern if ending the school-to-prison pipeline truly is a goal, as Williams states. (For a more thorough look at how and why charter schools directly serve the school-to-prison pipeline, revisit our introduction to the school board races in our previous guide.) Williams has also received money from notorious real estate developers Pres Kabacoff and the Motwanis. “Development” and policing go hand in hand, and New Orleans is no stranger to the trend.

Tuesday, May 03, 2022

Nothing sadder than a grounded PILOT

RIP Drive Shack. Latest victim of the pandemic? That's what these photos NOLA.com just published seemed to indicate.  There's no accompanying story yet but the captions read as follows.

The Drive Shack golf-entertainment project that was to have gone up on the old Times-Picayune site on Howard Avenue appears to be dead. Drive Shack said in a recent filing that it doesn’t plan to continue with the project to build a venue there and is reviewing options, including disposing of the lease with land owner Joe Jaeger.

This lot was once the Times-Picayune building on Howard Avenue. It was sold to a group led by Joe Jaeger, Arnold Kirschman, and Barry Kern who proposed to re-develop it as a golf arcade tourist attraction. The city struck a sweetheart financing deal (commonly known as a Payment In Lieu of Taxes or PILOT) with them to make it happen. 

Drive Shack customers will pay an additional 2% sales tax on money spent at the complex, part of an agreement reached between the company and the city, and approved by the New Orleans City Council in late 2018. The city will get a quarter of the new tax dollars in order to fund street improvements around the Drive Shack site. Drive Shack will get the remainder. Drive Shack also secured a 12-year freeze on its property taxes in lieu of paying the city nearly $260,000 annually.

The new tax will split 50-50 if the city is successful in connecting Howard Avenue to downtown, an improvement that would make it easier for tourists to access the site. The tax remains in place through 2039 or until Drive Shack is fully reimbursed for its construction costs.

Cantrell described the facility as a “tremendous investment” in the city, noting it would generate tax revenue in addition to bringing jobs.

It is very important for the community to understand that we did create an economic development district right here, so that a portion of the revenue that’s generated is reinvested in this same community,” Cantrell said, adding the Broad Street corridor remains “ripe for this type of investment.”

It's important for us to understand that they did this.  Ok. Anyway it never got built.  Ultimately, the pandemic probably was the most important factor in the project's failure, but there were several complicated stops and starts along the way here.  First, the Convention Center flirted with the idea of granting a rival golf arcade company access to its open riverfront property.  That, understandably, pissed off Jaeger who responded by pulling out of a plan to develop a hotel in partnership with the Convention Center.  Things only get more tangled from there. The riverfront property is now slated to (likely... probably... maybe) become a visually unappealing but nonetheless trendy planned development called "River District." That appears to feature no golf in any form. Which means neither golf scheme made it off the drawing board. Probably for the best. 

Anyway, so there's this empty plot on Howard Avenue now... 

Update: Okay the article is up now.  It still gives the impression that the Drive Shack deal is dead. It's just not as definite about that yet.

Drive Shack declined to comment further. But Joe Jaeger, who led the consortium that bought the 3800 Howard Avenue site in 2016 for $3.5 million, said that he is scheduled to meet with Drive Shack representatives in the next few weeks to discuss possible alternatives to a Drive Shack venue.

Jaeger said the company continues to make payments on its lease but has not yet indicated what its preferred alternative might be.

Meanwhile the TopGolf project may not be as dead as we thought after all. 

Michael Sawaya, president of the Convention Center, and others in the development team have said that they remain open to a deal with Topgolf as part of the entertainment district project.

Lou Lauricella, head of one of the two companies leading the project -- known as "The River District" -- declined to comment specifically on Topgolf. He said "the River District team has been in early stage leasing negotiations with a number of companies for the planned mixed use development. There are many exciting possibilities on the table, which we look forward to announcing soon."

many exciting possibilities 

Thursday, December 30, 2021

Here we go around again

Looking forward to 2022 in New Orleans when we will be turning more public investment into private profit despite our chronic housing crisis as has been done over and over in exactly this fashion.  

The property is zoned CBD-1, which calls for high-density and mixed-use developments downtown. The buildings, constructed in the mid-1800s, are eligible for Federal and State Historic Tax Credits and located in a qualified Opportunity Zone, a flyer for the listing said.

The purchase price was not disclosed. The listed price was $4.7 million. Siegel, along with William Sadler and Jeff Cohn, represented the sellers, listed as New Orleans residents Rosemonde Kuntz Capomazza, Carlo Capomazza, and Stefano Capomazza, in the transaction.
Whatever will they do with that property in that downtown neighborhood? 
Asked about plans for the Baronne and Union streets buildings, Phil Winton, a spokesman for GBX Group, said in an emailed statement that “We don’t comment on future plans until we have them buttoned up. Rest assured, the historic building will be preserved.”

Mixed-use, multifamily, short-term rentals and hotel redevelopment projects are abundant in the area. Developers have used tax incentives and creative funding measures to overhaul vacant properties, many of which were used as office space in their past lives.
Don't worry. The building will be fine. That's really the point of all this, right?

One other note from this story. GBX Group is also in possession of the deteriorating jazz landmark buildings that face S. Rampart Street. According to the Times-Picayune, the plans are to redevelop the whole block into an "entertainment district" anchored by a "'jazz-themed' hotel/convention venue along Loyola Avenue."  One assumes that means the river side of Loyola Avenue which is currently occupied by surface level parking lots. So it's not clear that City Hall which is currently located across the street would have to move out of the way for that but they are trying.   Here is their latest idea for that

The 23-story office tower at 1615 Poydras St., originally known as the Freeport McMoRan Building, is currently the headquarters for DXC Technology. It sits across the street from Caesars Superdome and is two blocks from the current City Hall.

The building is owned by Stewart Capitol, which is controlled by New Orleans investor Frank Stewart, according to the company’s website. According the Orleans Parish Assessor's Office website, it last sold for $30 million in 2000, according to assessor's records. Mohammad Motahari with Stewart Enterprises told WDSU Friday the city reached out about potentially selling. He added that the company will listen to all officers, but no offer has yet been made. The memo says the prospective timeline would depend in part on the financing process.
Just as an incidental note, Frank Stewart, we may recall, spent much of 2017 throwing a public fit over the removal of Confederate monuments from public spaces in the city.  Thankfully, the city didn't bow to Stewart's faction. Well, not entirely, anyway. LaToya Cantrell certainly gave them a lot of consideration. After all, it wouldn't make sense not to listen to your business partners, no matter how filthy racist they are, right? 

Wednesday, November 24, 2021

Why not say what they actually do?

I don't mean to pick too much of nit with this article about Cantrell's City Council endorsements. I will say that I appreciate the headline doesn't blast the phrase "MAYOR LATOYA CANTRELL..." at us for SEO purposes the way almost every bit of news that even tangentially mentions her tends to do. And there's nothing really wrong with the story.  It's just that, I think sometimes when we describe these candidates in one or two sentences it would be helpful if we mentioned the very relevant fact that some of them are realtors and landlords. 

So here we have Freddie King described as " a lawyer, youth mentor and former constituent services director in the district." 

In District C, Cantrell said King -- a lawyer, youth mentor and former constituent services director in the district -- “works in the trenches and understands the issues that matter.”

"Freddie knows constituent services and knows that you have to be responsive to the people you serve," Cantrell said. 

That's three whole things! You can shove a lot of information in between those dashes when you know what you're doing.  So maybe let's find a way to also say that he is a realtor. The notoriously verbose DSA voter guide got it in there. It only took a couple of sentences. 

It’s unclear how King vows to Fight the Red Tape of City Hall and Review the Permitting Process,” or what that even means. However it is clear in his duties of City Council that he will be one of the arbiters of land use and zoning, and pass regulation on matters around short term rentals. He formerly worked for then-Councilmember Nadine Ramsey as a coordinator of constituent services. Ramsey was notoriously awful when it came to affordable housing, and worked to remove minimum affordability requirements for big developers. That’s a big red flag for renters and housing advocates hoping to advance a rental registry.

King is a lawyer who lives in Algiers with his wife, Casandra. Together they own and operate LeBeouf Street Properties, a Gretna-based real estate company with a handful of properties in Algiers.

Anyway, we just mentioned Monday that King, who says, "I believe in a capatalistic society" is all in on shoving more Airbnbs into the French Quarter.  So this little bit about how he makes his money seems relevant.

There's another one of those in here whose real estate money might be even more relevant.  But it's hard to know that. The article only says he's a "veteran" of the politics wars. 

The first of Cantrell’s endorsements came Monday, when she threw her support behind the 31-year-old Glover, who also claims support from several former primary rivals and other community leaders. Glover, a former St. Roch neighborhood association leader and current nonprofit director, is taking on Eugene Green, a veteran of local politics and government who is twice Glover’s age.

Again, I don't really want to pick on this article, the T-P or any reporters in particular. They actually often do mention that Eugene Green is a real estate broker. They just did it yesterday, in fact.  

The other candidate in that race, real estate broker Eugene Green, said he would allocate city funds to support programs that turn blighted properties into affordable housing.

Green's assertion about wanting to create "affordable housing" demands interrogation, though.  Especially given the nature of his business interests.  Green isn't just a realtor. He's a landlord. Again, one sentence from the DSA guide

He is the president and owner of the generic-branded Nationwide Real Estate Corporation, making him a massive property manager throughout the city.

Have the properties Green owns and operates been a safe and healthy answer to the affordable housing crisis in New Orleans?  Might want to ask his tenants about that.

Friday, August 06, 2021

The rent is too damn due

We've hit another first of the month again. There's one every month!  But this one has been the most first of the month that has yet firsted since pandemic crisis began.  And it has gotten dark.

NEW ORLEANS — Deputies with the First and Second City Courts of New Orleans will be required to get a coronavirus vaccination. Constable Edwin M. Shorty Jr. has mandated all commissioned deputies must be vaccinated as COVID-19 case counts are rising with the spread of the delta variant. All full-time and reserve deputies must meet this vaccination mandate by Aug. 16, the constable said.

Officials said vaccination rates among law enforcement entities are high, but it has not been mandatory in the past. The mandate will ensure SCC deputies are not leaving the public at risk when performing duties of the department and ensuring their personal safety, according to the constable. The use of personal protective equipment will also be mandated while remaining socially distanced when possible and minimizing interactions with other employees or the public when possible.

Shorty said he expects the courts to be at capacity in the coming weeks. He says that we are not out of the woods of the pandemic, and will make sure all CDC guidelines are followed in addition to the mandatory vaccination decision.
What duties will the constables and the courts be performing that will have them "at capacity in the coming weeks?"
Second City Court handles eviction cases for Algiers and the West Bank of Orleans Parish. This decision comes after the federal eviction moratorium expired over the weekend. First City Court officials confirm that all East Bank deputy constables for Orleans Parish are fully vaccinated, and any new deputy constable will be required to vaccinate as well.

Perhaps when the constables go about their busy work evicting people, they could bring some vaccines with them.  It's about time we get a bona-fide door-to-door vax program going in this city that actually reaches the most vulnerable.  Of course this would be the way it happens. 

Evictions are  not just about to spike in New Orleans. They're about to spike nationwide. Some parts of the nation will be spiking harder than others, though. You will not be surprised to see which they are.  The maps in this NYT opinion piece by Sema K. Sgaier and Aaron Dibner-Dunlap show how many renters are behind and how far behind they are on rent in each US county or parish. 


Just the other night someone reminded us, as the South goes, so too goes the nation. The South is not going well at the moment. In Orleans Parish (which, despite much contrary popular myth making, is located in the South) 19.6% of renters currently owe back rent according to numbers cited in that NYT article. The average amount owed is $3,187. Sgaier and Dibner-Dunlap write that state and local governments "can prevent this rental crisis from becoming a homelessness crisis" by speeding up distribution of Emergency Rental Assistance funds made available by the stimulus package known as the American Rescue Plan passed earlier this year by Congress.  But we already know that isn't going to be enough. 

As of last Thursday, the Times-Picayune reported the City of New Orleans had already run through $18 million of the $52 million in rental assistance that has so far been distributed for the entire state processing only 5,000 of 16,000 applications. The state has another $87 million to disperse but it's not clear how that gets divided. That total will still not be sufficient to meet the need so, no matter what, everyone will be waiting on the feds to release the second tranche of ARP funds. But, as we will see, that tranche may not arrive at all. 

Meanwhile, we learn by that same T-P article there are approximately 400 evictions cases queued up to file as soon as the moratorium ends.  This story says 58 were filed on Monday. Which is a very bad time for that to happen because it follows right on the heels of this.

Louisiana residents will no longer receive an extra $300 a week on top of the state’s maximum $247 benefit. The state will also pull out of federal programs that provided jobless aid to self-employed workers and gig workers and allowed people to get jobless benefits past the 26-week state cap.

The benefits were made available by Congress until Labor Day, but Gov. John Bel Edwards, a Democrat, ordered Louisiana to stop accepting the federal payments effective July 31 in exchange for support from GOP lawmakers and business groups for a permanent $28 hike to the state’s weekly unemployment benefits, beginning in six months.

The move spells the end to jobless aid for nearly 86,000 residents who make their living as self-employed contractors, musicians, tour guides or gig workers. Another 65,000 residents who have exceeded the state’s 26-week-long limit on unemployment benefits will also get the boot, according to data from the Louisiana Workforce Commission.

For the 35,000 residents who will remain on unemployment rolls, weekly checks will be cut in half – as Louisiana joins 25 Republican-led states that have rejected the $300 supplemental payments under pressure from business groups who argue the payments are discouraging employees from returning to work

Is that $300 pittance discouraging people from returning to their demeaning and dangerous service jobs in the middle of a fourth wave COVID spike? So far there isn't any solid evidence that cutting those benefits has sent them all rushing back

So far, early data suggests that cutting the benefits given to Americans who lost their jobs during the covid-19 pandemic has not led to a big pickup in hiring. The 20 states that reduced benefits in June had the same pace of hiring as the mostly Democrat-led states that kept the extra $300-a-week unemployment payments in place, according to state-level data from the Labor Department. Survey data from the Census Bureau and Gusto’s small-business payroll data show similar results. 

Many economists and business owners say other issues such as health concerns, child-care problems and workers reassessing their career choices appear to be larger factors keeping them home.

The same week that the governor is cutting off the $300 is also the week the landlord wants that $3,000 average back rent or thousands of people are going to be be put out. Hard to imagine they're all jumping on one of those $8 or $10 an hour jobs so they can hope not to get sick before figuring out the math isn't gonna work.  What are people supposed to do?

For much of the past week, the President's message has been that he isn't supposed to do anything. Last week, he insisted that a month old Supreme Court ruling prevented him extending the moratorium without congressional action. On Friday, as congressional leaders were giving up trying to take that action and punting the problem back to him, Biden turned the blame onto governors and mayors saying in this statement, "there can be no excuse for any state or locality not accelerating funds to landlords and tenants who have been hurt during this pandemic." Biden's statement also contained a passive aggressive suggestion that the mayors and governors, "should also be aware that there is no legal barrier to moratorium at the state and local level." 

Neither John Bel Edwards nor LaToya Cantrell has imposed or even spoken in favor of a local moratorium on evictions. Maybe they didn't think Biden was talking to them.  We've already mentioned they seem to be doing an adequate (relatively speaking.. not objectively great) job of spending the rental assistance money so he probably wasn't talking to them about that either. And it's true there are states doing a much worse job. For example, Florida, under the psychopathic governorship of Ron DeSantis, has withheld 98% of its allotted rental assistance funds in what we have to assume is an act of deliberate cruelty. 

Having said all that, we should point out that governors and mayors (not just DeSantis types) are nonetheless reluctant to spend their stimulus funds. Partially this is because Joe Biden and the bi-partisan infrastructure deal making its way through Congress now is about to yank a bunch of it back.  That has already become an issue in New Orleans city government as the Cantrell administration discussed its plans to spend its stimulus funds with the City Council last week.

But officials said they are resisting the urge to spend the windfall immediately to supplement the $633 million budget for 2021. They recommend the money be stretched out until revenue improves. That’s particularly crucial because the forecast calls for the lost revenue from 2020 to total more than $290 million by 2025 -- more than City Hall has received so far from the stimulus, codified in the American Rescue Plan.

“Even if we’re using that ARP money, we could still end up in a deficit,” City Council member Helena Moreno said.

City officials are nervously eying negotiations over President Joe Biden’s proposed infrastructure plan. While such a plan would likely mean more federal money for New Orleans, city officials worry that Congress might cancel the second stimulus payments to cities and counties to help pay for infrastructure.

They aren't at all wrong to be worried. That's exactly what the current version of the infrastructure bill is set to do. And that's not really even the worst of it. The infrastructure bill is best understood as a privatization bill.  The American Prospect's David Dayen explains in this breakdown. He actually thinks it's been improved in the latest negotiation. I'm less encouraged and will explain in a bit. Here is what Dayen has to say.

The revenue offsets did change quite a bit. We knew about Republicans ditching the tax enforcement piece. But there was a big victory here for progressives. A few weeks ago, it looked as if much of the bill would be financed by selling off public assets and allowing investment firms long-term concessions of roads and water and power systems and whatever else they could land. The privatization agenda was extremely dangerous, and in my view enough to oppose the effort entirely.

But it has mostly vanished in this new version. After significant pushback from the left, a good deal of the privatization schemes are gone. That was an important show of force.

There is $100 million in “asset concession incentive” grants to help cities establish public-private partnerships (P3s). Some larger transportation projects will also be required to evaluate a P3 option, to ensure it’s given “a fair shot.” Tipping the scales to P3s is bad news, and these measures give them a foot in the door. But there was talk that the overall bill would save up to $100 billion by offloading the investment to P3s, which would really have been a fire sale. This is definitely more minor.

It's clear that someone in Gilbert Montano's office keeps a close eye on these developments. Not only has the city been anticipating the ARP claw backs from the very beginning of the infrastructure negotiations, they've also started the ball rolling on a "framework" for the privatization component of the bill as well.

Anyway, Dayen's description of the reduced emphasis on privatization is too optimistic. These changes he is describing are just the fluid argument over how to write the bill. The purpose remains the same. To put it plainly, public-private-partnerships (P3s) are privatization. Just putting them into the process this way practically guarantees they will get implemented through the regular corrupt local patronage networks. And the way New Orleans spends public money is especially suited to just that kind of arrangement.

A good little book to check out on this topic is Aaron Schneider's Renew Orleans?: Globalized Development and Worker Resistance after Katrina (2018) There, we find an analysis of the city budget based on the processes and institutions in place during the late 00s, which haven't changed a whole lot since then. The big takeaway is there's a lot of activity that goes on "off the books."  A quick excerpt summarizing this point:

The most important finding of this simple comparison (of New Orleans finances to those of similarly sized and situated cities) was that New Orleans taxes not too far below what is to be expected but has far fewer revenues and even lower expenditures. Taxes were only $7 million less than predicted by the model, but revenues were approximately $100 million lower and expenditures were almost $250 million lower than expected. New Orleans appears to tax its citizens the same but undertake less public action than other cities

A reasonable explanation is the proliferation of satellite entities, many of which are off-budget, difficult to monitor, and undertake significant fiscal action in the form of revenues, expenditures, and accumulation of assets. To explore these entities, data were drawn from 2007 and 2008, gathering information from city budget documents, Louisiana Legislative Auditor reports, and accounting documents collected directly from some entities. City budget totals include revenues and outlays by some boards, commissions, and public-benefit corporations, as they are considered component units of city government, and therefore government accounting practices require them to be included in the city's comprehensive financial report. Not all entities are so considered, however, and they vary in the degree to which their accounts appear in the public record. Some provide comprehensive financial reports to the Legislative Auditor's Office, others keep accounts according to government accounting standards but do not report them anywhere, and still others do not keep accounts in any easily comparable fashion. 

What this says in so many words is that New Orleans is crawling with public private partnerships and conceded public assets already. The city is run through an impenetrable network of semi privatized commissions and non profits who operate with almost zero public transparency. Schneider's analysis in fact shows this is actually the largest sector for public expenditures.

Take for example tourism promotion agencies like the mostly private New Orleans and Company seen here preparing to spend millions of dollars in public money on an ad campaign encouraging more people to travel and gather here during a pandemic.  Back in February, NO and CO's head Stephen Perry sent out an inflammatory email to agency clients wherein he blamed local COVID victims for preventing the cabal of tourism owners from making money. Here we see the Convention Center arguing over how to spread half a billion public dollars around to contractors and cronies to renovate and expand its facilities and develop whole new "entertainment district" for private profit while hundreds of New Orleanians are about to be evicted.  And still the Cantrell Administration insists the city gets its #fairshare from these agencies.  Maybe this is because dispersing public money through private conduits and expecting it to trickle down is precisely their idea of "fair."

It's important to understand this context because when you see administrators claim there are multi-year deficits which obligate them to hold back federal relief funds rather than use them to help people now,  you have to question where they actually intend those funds to go.  People are going to be evicted on August 1, 2021  October 3, 2021... actually the moratorium doesn't cover everyone and evictions have been ongoing this entire time. What good does it do them if we are hiding money away until 2025?

The administration is considering setting aside whatever money it might need for the latest 2025 estimates first and then work backward, only adding to next year’s plan at the end, Montaño said. 

Given that we know the city is preparing to implement the privatizing functions of the infrastructure bill, and given that Montano is arguing here that the City Council should butt out of his budget process, we have to conclude that the purpose is to consolidate as much of the pub-private patronage power through the mayor's office as possible.  At least that is one way to read this "efficiencies gained through the pandemic process," comment.

“It’s easiest to go back to the way you were and its easiest to go back to normal, but I’m not willing to lose the efficiencies we gained through this pandemic process,” he said. He added that the council reopening the process “takes away executive authority. The mayor gets to propose what we’re putting in the budget, not an agency director.”

Actually that's pretty much just a naked admission.  It would also explain why the same administration expressing concern over the ARP claw backs is simultaneously promoting the passage of the bill that will make them happen.  They don't care if there is less money than people actually need so long as they get to be in charge of passing it out. 

Why is this acceptable?  Or more critically, why does our political system allow this state of affairs to obtain?  To answer that, let us refer to a book by Arizona Senator and budding professional troll, Kyrsten Sinema. The book, by the bearer of the now famous "fuck off" ring, is titled Unite and Conquer: How to Build Coalitions That Win and Last, funnily enough. In this excerpt, Sinema relays to us some important lessons she learned serving in the Arizona State Legislature. 

I showed up all right. And for the first several months, I was bright-eyed and bushy-tailed, coming to work every morning full of vim and vigor, ready to face off for justice—which made me rather annoying. I’d stand up four or five times a week on the floor of the house and give scathing speeches about how this bill and that bill were complete and utter travesties of justice, and the paper would capture one or two of the quotes, and then we’d vote on the offending bills and they’d pass with supermajorities. I’d get righteously indignant and head back to my office, incensed that my colleagues could not only write but actually support and vote for such horrid policies!

Meanwhile, everyone else went to lunch. In short, my first legislative session was a bust. I’d spent all my time being a crusader for justice, a patron saint for lost causes, and I’d missed out on the opportunity to form meaningful relationships with fellow members in the legislature, lobbyists, and other state actors. I hadn’t gotten any of my great policy ideas enacted into law, and I’d seen lots of stuff I didn’t like become law. It was just plain sad.

At this point the reader may begin to wonder. Is Kyrsten "just plain sad" that the bad laws are passing? Or is this more about missing out on all those terrific sounding social opportunities?  It's not entirely clear yet, but it's not a great sign that the "offending bills" and "horrid policies" are left undefined while the author's self-image and personal comfort level becomes the center of the narrative. Anyway let's read on.

I spent the summer figuring out what I wanted to change. I knew that I couldn’t keep doing what I was doing because it wasn’t working for me and I hated it. I had, without actually planning to do so, fallen quite easily into the role of the loyal opposition, the righteously indignant crusader, the bomb thrower. In legislative lingo, a bomb thrower is a legislator who chooses to yell from the sidelines, cackle at the rest of the body, and generally raise hell from the corner of the room. A person who chooses to be a bomb thrower in the legislature is choosing to remove himself or herself from the work of the body: negotiating on bills, working to find compromises, and sometimes teaming up with unusual allies to promote or kill legislation. This person plays an important role at the capitol because he or she calls out the body on a regular basis (which is needed, especially considering that the general public hears or reads roughly 0.3 percent of what happens each day inside the legislature). However, the bomb thrower has made a choice—whether consciously or not—to be excluded from the actual process of negotiating proposed legislation. You can’t play both roles in the legislature; if you choose to be a bomb thrower, you will not get the opportunity to amend bills, participate in bipartisan meetings to craft good legislation, or work with people on the other side of the aisle to kill bad legislation. I unwittingly chose to be a bomb thrower my first session, which led to my unhappiness and regret.

Over the summer, I consciously chose to reject the bomb thrower role. For me, it was not a hard choice to make. I was miserable as a bomb thrower. And since I hadn’t consciously chosen that role, I was even more depressed when I realized that I had become a bomb thrower and worked my way right into that lonely corner. It didn’t fit me. I do love to give fiery speeches. But I also love people. I love talking with people, working together, and making friends. The bomb thrower doesn’t get to make friends much (understandably so), and she certainly doesn’t get to work with all the people she’s throwing bombs toward.

Remarkably, the younger Sinema was wrong about all of this.  Now at the apex of her career she has figured out you really can throw bombs and make friends at the same time.  As long as you make sure the bombs fall on the appropriate people outside of the Senate, you'll never be lonely inside of it.  

There's a kind of class politics at work here. But it's the politics of a consensus class within the halls of power charged with managing the hyper-concentration of societal wealth into ever more exclusive circles.  That retreat has been going on since the 1970s but it took a significant turn in the response to the 2008 financial crisis. That's when we learned capitalism can sustain itself just by passing around federally guaranteed credit among the wealth hoarding class and leaving a growing class of surplus humans to more or less fend for themselves. As we've tried to show over the past year, the pandemic response has been a continuation of this project. Anyway that's why a completely captured political apparatus can be indifferent to a homelessness crisis and cut off already miserly safety net payments in the height of a pandemic. It's just doing its work of laying down terms of the harsher readjusted social contract. 

So that about sets the table for the rest of the year. We're looking at another round of political buck passing to cover for a national policy of austerity and privatization. Locally, this will set off a bonanza of petty patronage delivered through local pub-private and non-profit networks. Come October, the new moratorium will expire. By that time, nothing will have fundamentally changed for the renters facing eviction, and we'll have another version of this same argument. Only by then, Biden will have celebrated the success of his bipartisan Infrastructure Week, Sinema will be back from vacation, and, in New Orleans, the same mayor and  (basically same) city council who are running with no meaningful opposition will be on their way to reelection.  And so at every level of government, the next round of calls to "do something" will be one degree easier to ignore. 

Of course the rent will still be due.  Just like every month.

Saturday, July 10, 2021

The first of the month is coming again

There is one every month.  The next one is going to be a bloodbath.  

Courts across the country are reopening, but during the  pandemic lockdowns I spent more than a year watching landlords try to evict tenants in virtual hearings. These hearings went on, even with a federal eviction moratorium in place, one that is scheduled to end next month

I’d estimate that in about a quarter of the hearings I watched, the tenants  kept  freezing or lagging due to poor internet connections. Tenants without reliable internet access had to go to the courthouse in person and wait to argue their case in front of the court’s computer. Every day, poor people who were  behind on rent and didn’t  have internet access had to attend court in-person, during a pandemic, so they could  join a Zoom call and potentially be kicked out of their homes. Many of them didn’t even have a lawyer to help them through the hearing.

Next week in New Orleans is qualifying week for the upcoming municipal elections.  Rest assured not a single person filing to run for any of these offices gives a shit about the people who are about to be pushed out of the way so that real estate developers can run their "renaissance" such as the one Tyler Bridges is breathlessly celebrating in this article.  You can, however, scan this article up and down to find the names of the people who will be funding those campaigns. What is it they want permission to build and maintain? Game changers.

The game changer was short-term rentals,” said Mohamed “Hammy” Halum, who, with his father, is one of the pioneers on Canal Street on the same block where the Hard Rock Hotel collapsed in 2019.

Dozens of short-term rental rooms have opened on Canal within the past year. Dozens more are planned in a change that is injecting life and economic vitality into the historic avenue.

“You’re centrally located a few blocks of where you want to be: the Superdome, the [Harrah’s] casino, Bourbon Street,” said developer Aaron Motwani, another pioneer along with his father, Kishore “Mike” Motwani.

The developments will likely have wider significance for New Orleans beyond just the old retail area.

“Canal Street is where Mardi Gras happens,” architect John Williams said. “All of our cultural events happen around Canal Street. Every sidewalk on Canal Street is 21 feet wide. It invites masses to be downtown. As Canal Street goes, so goes the city. It used to go that way, and I believe it will be that way again.”

"All of our cultural events.."  Whose cultural events?  Not "ours" so much. We don't actually live in the theme park you are building there anymore.

Thursday, May 20, 2021

The bosses and landlords won the pandemic

I feel like we've been talking about the coming techno-feudal order for a long time now.  And I guess this is just a post for the sake of note taking. But it's important to understand that the pandemic, like every major disaster of the 21st Century, was another accelerating event of the larger human disaster of wealth concentration

But since the COVID-19 pandemic began, Koch Industries has been plowing money into real estate.

In March this year, The Wall Street Journal published a report headlined “Charles Koch Is Betting Big on Distressed Real Estate.” The paper reported that the billionaire’s corporate conglomerate “is emerging as a major real-estate investor during the pandemic, using its robust cash reserves to buy properties at beaten-down prices and betting on a longer-term recovery.”

Last April, a month into the pandemic, Koch Real Estate Investments made a “$200 million preferred-equity investment in Amherst Holdings LLC's single-family rental business,” according to the corporate law firm Jones Day, which said it advised the Koch Industries subsidiary on the deal. Amherst says that since 2012, “its affiliated funds have acquired and operated more than 30,000 homes.”

The same article describes Koch backing for groups that have lobbied against the CDC-imposed evictions ban.  This is a strategy to consolidate housing and finance on a larger scale than previously thought possible. The necessary result is mass displacement and dispossession of middle and working class Americans.

Starting last May, Koch Real Estate Investments began a financial relationship with Ladder Capital Corp., culminating in a $32 million equity investment in December. Ladder finances residential real estate, and The Wall Street Journal recently reported that its subsidiaries’ loans to former President Donald Trump have been scrutinized by prosecutors.

Koch Real Estate Investments was also among a group of investors that last month bought an ownership stake in SmartRent, a landlord technology company.

It's a trend in housing that got its first big bump after the 2008 foreclosure crisis. No doubt you are familiar by now with Jared Kushner's fortune in predatory mega-landlording.   COVID has only caused it to happen faster.  You may have also read this week about Blackstone's billion dollar takeover of rentals in San Diego.  

But it's important to stress that while the descent into feudalism is a national and in fact global phenomenon, it still  has to be confronted on the municipal level. Unfortunately this also happens to be where the politicians are the most clueless and/or wholly owned by real estate. In our city, for example, we have literally turned our land use policy over to a person who specializes in large scale conversion of housing into short therm rentals. This happened in the middle of the pandemic summer of 2020. A summer that is looking like the latest in a long string of wins for the bosses. 

Update: Meanwhile, even when they say they are helping, they aren't really helping

Frustrated tenants and housing advocates pleaded with the New Orleans City Council Thursday to do something to get millions in federal rental aid flowing to applicants faster, saying thousands are in danger of being evicted when a federal moratorium expires on June 30. 

Since February, the city has approved just 700 of more than 10,000 applications for the $11.6 million in rental assistance funds provided thus far under a federal pandemic relief law, said Marjoriana Willman, director of the city's Office of Housing Policy and Community Development.

How does that happen?  Well there is a long answer and a short answer. The long answer is in the details of how the assistance is structured. The city says it can't process applications fast enough because the law limits how much money it can spend on "overhead."  Because the grants process prioritizes getting money to landlords instead of directly to tenants, it gives the landlord too much power to discriminate against tenants or to refuse the help altogether in order to remain under the radar of city housing inspectors. And finally, there is still only enough money to disperse aid to about 3,000 of the (so far) 10,000+ applicants. 

The short answer is, this is how it was designed to happen.

Tuesday, March 16, 2021

Ah they brought in a ringer

For those who were curious about what sort of gimmick could possibly breathe new life into the many-failures-over Six Flags redevelopment saga, well, here you go

Mayor LaToya Cantrell's administration announced that a partnership that included Brees was among the three finalists chosen to redevelop the derelict Six Flags site in New Orleans East, advancing a highly-anticipated effort to breathe life into the 227-acre park that has been abandoned for almost 16 years. 

After a selection committee scored six proposals based on developers' qualifications, financial resources and other factors, the highest scoring contender was a partnership between Kiernan West LLC of Colorado and S.H.I.E.L.D., a foundation launched by Brees, Saints linebacker Demario Davis and Buffalo Bills cornerback Joshua Norman.

That group wants to turn the park into multiple facilities, including an agriculture innovation center that helps young people learn about urban farming.

The actual developer is Kiernan-West which is a corporate real estate firm that has dotted the US map with logistics centers so we can logically conclude that is at least one of the "multiple facilities" in the proposal, if not the main one.  The rest of it is just branding.  And by that we mean they just grabbed a bunch of progressive-sounding twee business buzzwords and mashed them all into one thing for the professional athletes to pitch.

The nonprofit portion, managed by the SHIELD group, would include a facility for urban farming and aquaponics; a “discovery lab” that would provide science, technology, engineering, arts, and mathematics programming for New Orleans students; a natural healing center, and a food cultural center that would serve as a lecture hall for culinary arts education. The site would also feature a restaurant. 

Future development phases could include a ghost kitchen that would deliver meals to people in need, and a food truck park.

There are so many half-baked ideas going on there it literally reads as though it were being made up as it was dictated. Either that or they were just trying to make sure they hit whatever sweet spot the consultant's report laid out for them. 

A firm the city hired to study the best use for the park said in 2019 that it would work best as a transportation and distribution hub, though that team ended up recommending an “education destination” that could focus on themes such as resiliency and climate change, after talking with residents.

I'm glad they clarified which consultant's report we're working from here because there have been several.  This is the 2019 report by  TIP Strategies and Perkins & Will.  The purpose of glossy papers like this is always to give the developers a paint-by-number scheme for making their project appear to fit the needs of whatever community they are taking advantage of.   I'm disappointed to see that Brees's group did not throw a zipline in with their proposal as the consultants suggested.  But we got the healing center and that always seems to be the key. 

Anyway, between the pro athletes involvement and the jamming in of all the shiny objects, this seems like the proposal that is going to be selected.  And Brees sure does know how to spit out the jargon. 

“I am excited about the ability to present this transformational proposal to the city,” Brees said in a statement about the plan. “It is a vision that we have been working on for more than a year, actively looking for the right site and the right public/private Partnership to launch our non-profit concept. I believe this is it.”

If this means he and this giant real estate firm he's shilling for are going to get their hands on one cent of the city's stimulus allocation for any of this, then it's all the same to us if the whole site just sinks back into the swamp. 

On the other hand,  we do see Troy Henry involved with one of the competing groups so maybe let's wait and see. They're expecting to decide within in the next two or three months.