From the outside, this looks a lot like Henry's group is negotiating in bad faith with the explicit goal of getting complete control of the Jazzland property and avoid any accountability for their use of infrastructure created through a massive amount of public investment.
Businessman Troy Henry, the public face of Bayou Phoenix, has claimed that NORA is demanding unreasonable approval power over tenants, contractors and other aspects of his future plans for the site. Henry, who reiterated those claims in a public meeting on Thursday, said Bayou Phoenix will never agree to those demands.
“No deal is better than a bad deal. And having one hand on the steering wheel trying to drive with somebody else having another is a bad deal, and a disaster waiting to happen,” Henry said at a meeting of the Industrial Development Board.
In one regard, he's right. No deal really is better than a bad deal. It's just that the deal he is angling for is one in which he fully privatizes a public project and collects the profit with no accountability or oversight. That deal would be the bad deal.
The current plan the Henry is bucking against would have the New Orleans Redevelopment Authority (NORA) take over nominal ownership of the property from the Industrial Development Board (IDB) and act as a landlord leasing it to Henry's development company.
NORA’s executive director, Brenda Breaux, said at a city budget hearing on Thursday that Bayou Phoenix is asking for a lease that's below the fair-market rate. She said NORA can live with that, but “there has to be an exchange for what the public benefits are, to protect the public’s interest.”
“It's not that (NORA) is intending to approve every tenant or whomever goes on that site, but there are some safeguards that the general public, the 390,000 citizens of New Orleans, would like to see,” Breaux said.
But now it looks like Henry prefers to own the land outright. His strategy for getting it in that case would be to clam up these negotiations and deal directly with the IDB who may be more willing (maybe a little desperate, even, at this point) to sell.
With prospects for a master lease looking dim, exasperated IDB members on Thursday refused to consider extending an agreement with City Hall that gives the administration the right to lead redevelopment efforts. The agreement expires at the end of November, after which the IDB would seemingly be able to do as it pleases.
That's not an ideal outcome. We talked about this in greater detail last month on the CBC podcast. You can find that in this post. The land now formerly known as Six Flags/Jazzland was purchased and developed through a large public investment of federal and state dollars. The public, through its elected representatives, should maintain control of its destiny and it should be used for the maximum benefit of the public. IDB can't just dump it to Troy Henry so he can turn a profit doing whatever the heck he wants. The city's economic development director Jeff Schwartz agrees.
“If that site is not redeveloped through a solicitation process, whether the existing one or a future one, there’s no guarantee that someone who buys the property on the private market has to do anything with it,” Schwartz said. “They could sit on it for another 10 years. They could turn it into a gas station.”
If that is allowed to happen simply because IDB is tired of dealing with this, it would be a monumental betrayal of the public trust.
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