The real problem with caring for the homeless is there's no money in it

Ozanam Inn is being kicked out of its building after 64 years. The reason is it turned out, finally, to have been bad business?

According to its tax filings, St. Vincent de Paul over the past four years has seen a sharp step-down in gross receipts, from nearly $900,000 in the year ended September 30, 2016 to below $600,000 in the year to end September, 2018, the latest tax year filed.

Expenses have consistently outstripped revenues, and in the latest year, the accounts show an unexplained $311,000 write off in the value of its assets which, together with the deficit, meant assets fell to $1.75 million from $2.1 million.

The society at one point operated a half dozen thrift shops in New Orleans, but this has contracted in recent years so that it now operates just one shop on the Westbank, on 4th Street in Marrero.

The article points a bunch of fingers at the St.VdP director. And who are we to say anything about that situtation. But the bigger question here is, was booting a homeless shelter out in favor of a "hotel and parking garage" during a housing crunch really the best solution?  Who decides these things anyway?

Maybe it's just plain old capitalism at work where all parties compete on perfectly equal footing in the fair and free market.  Right?

Demma went on to say that Ozanam Inn would have the right of first refusal to buy the Camp Street building if they could come up with $100,000 "earnest monies" and reach a deal on the final amount.

Last month, Demma told members that 843 Camp Street had been sold to an unnamed developer. Documents showed that the building was sold for a nominal $100 and that St. Vincent de Paul issued a $2.69 million mortgage note to Excel Advertising Group LLC, a company registered in Delaware, which is the official buyer.

Ozanam says their $3.5 million offer was rejected in favor of this $100 dollar up front investment. So whose money is that?  Stay tuned because it is a mystery.

Although the story does provide us with a tantalizing lead.

Excel lists Michael Boudreaux, a New Orleans property management agent, as its sole officer and he signed the sale document. Also, John Holmes of True Title in Metairie was listed as the buyer's authorized agent on the sale. Neither responded to requests for comment.

Several people who have been privately briefed and didn't want to be quoted by name said the owner is a long-time New Orleans developer who has built hundreds of condominium units, sub-divisions and commercial real estate in and around the city, including the conversion of a landmark riverside historic property into condominiums.

LOL, they obviously know who it is. Is it Sean Cummings? That sounds a lot like Sean Cummings. It could be several other people too. (I think the suggestion that it could be Marcel Wisznia is kind of elegant since it makes sense that the guy building a "co-living" development would be interested in a homeless shelter.) But why give us this many clues and not just say who it is?  I'll bet John Georges knows who it is.

John Georges, who along with his wife, Dathel, owns The Times-Picayune|The New Orleans Advocate, said the company — a direct neighbor of Ozanam Inn — is interested in jointly developing the proposed parking lot.

"We would certainly welcome the redevelopment, and I was happy to hear Ozanam Inn has opportunities for other locations that should be announced before the end of the year as part of a master plan to address the homeless situation," said Georges.

So instead of Ozanam buying the building for $3.5 million, we have this alternate transaction where it transfers (for $100!) to a mystery "long-time New Orleans developer" and John Georges is possibly cut in on it in some way.  Of course that looks real bad if it means actually booting homeless people onto the street. We're gonna need some help to keep that from happening.  Luckily the city has already stepped in to facilitate.

Ozanam Inn's plans depend on a broad agreement with homelessness agencies being negotiated with the city of New Orleans.

"We are aware of the recent sale of Ozanam Inn's building, and we're in close contact with their staff and board of directors as they determine their next steps," said a spokesperson for the City, who declined to comment on talk among homeless advocates that city land on Poydras Street near South Claiborne Avenue had been earmarked as an alternative location for Ozanam Inn and other housing.

This looks like it's been in the works for quite a while. Rich developer gets a free building. Local magnate gets a piece. The city gets to maximize the property's revenue potential. All they had to do was scoot a decades-old charitable institution out of the way. Remains to be seen what the city's homeless advocates and their clients end up with out of the deal.  We sure hope it's a "fair share."