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Showing posts with label fair share. Show all posts
Showing posts with label fair share. Show all posts

Tuesday, December 17, 2019

What do we want for our city during the brief time it has left?

Gambit asks various political players and advocacy groups what they would like to see from the Governor during the next legislative term. There are some good answers as wells as some bad ones. LaToya says some good words about some interesting topics like the LaSalle Street controversy, the public defender's office, and "rail connectivity." We should wait to hear what she has in mind for those items, though, since she also takes a minute here to thank the Governor for his help with the Fair Sham. If her solutions to the new priorities are involve more giveaways to oligarchs the way that plan did, then that's going to be a problem.

Ethan Ellestad wants the Governor to appoint better people to the Convention Center board and Superdome Commission. But he's not likely to do anything different with those patronage opportunities than in his first term.  If anything, the fact that he doesn't have a reelection campaign to worry about now could make this even worse. Appointments are more likely to reward past donors now than they are to encourage community or labor support in the future.

Ethan also talks about housing but he frames that in stark capitalist terms as an "investment."
“For the culture,” Ellestad says, “it is investing in making sure people can stay in the communities where they’re from, because they are not just the creators of the culture, which comes from working class black communities, but also they are part of the service industry, which is the backbone of the tourism industry.”
Of course we need to make sure poor and working class people are not displaced from their neighborhoods.  But to turn that question of basic human dignity into a matter of "tourism industry" benefit is demeaning.  Your right to your city isn't based on your potential commoditization as a "culture bearer." You deserve more respect than that. I've written about this before. Unfortunately Ethan Ellestad's organization has embraced this dehumanizing and exploitative rhetoric wholeheartedly. It's going to continue to be an impediment to true housing justice.

Gambit also asks for comments from GNO Inc. for some reason.  Nobody should care what they think.

If I had to pick the best comment out of all of these it would probably be this from Anne Rofles.
“New Orleans’ risk of sinking into the Gulf of Mexico is already pretty high, but it is assured if Gov. Edwards continues to allow every chemical plant, oil refinery, pipeline and gas terminal that wants to come here to come here,” says Anne Rolfes, founding director of the environmental advocacy group Louisiana Bucket Brigade. “Right now he is rolling out the red carpet for them, and New Orleans will simply not exist if he does that.”

Last week we learned that, over the past decade, the state of Louisiana, one of the most environmentally threatened places in the nation, has slashed funding for its Department of Environmental Quality more than almost any other state.
In a 10-year period marked by a dramatic increase in newly built and planned petrochemical plants in the state, the Louisiana Department of Environmental Quality has seen its budget slashed by nearly 35 percent and its staff cut by almost 30 percent.

So says a new report from the Environmental Integrity Project, a Washington, D.C.-based organization that terms itself an environmental enforcement watchdog.

Louisiana’s funding cut percentage ranked second among the states, tied with Texas. The state ranked fourth in the percentage of staffing cuts, with Illinois, North Carolina and Arizona seeing larger cuts of 38% to 32%, according to the report.
Meanwhile the state continues to pour millions of dollars into state subsidies for the very industries most in need of monitoring. During this year's election campaign, John Bel told us as plainly as he could that that isn't likely to change in his second term.
Edwards has suggested Louisiana can continue to embrace natural gas for “20, 30, 40 years,” as the U.S. transitions to renewable energy. “There’s going to continue to be a demand for hydrocarbons for a long time to come,” he said, adding, "We are a natural gas state." 
John Bel was just narrowly reelected specifically because New Orleans turned out to vote in record numbers.  And yet he'd prefer to go on subsidizing oil and gas production for "20, 30, 40 years" even if it means New Orleans no longer exists. Enjoy those years while you have them, I guess.

Tuesday, October 22, 2019

Well there's something you don't see every day

Anne Milling is.... right about something.... ?
But Anne Milling said that convention centers across the country are not generating as much money or as many out-of-state tourists as they did in the past with the internet allowing people to livestream presentations. Milling said the project was a "folly" and "a far cry" from its original mission of spurring "economic development by hosting trade shows and conventions."

"Rather than acknowledge this change in paradigm, today the commission is suddenly modifying its mission," she said. "No longer is it just about trade shows and conventions, but rather it now wants to be an entrepreneur, a developer, a kingmaker today. But the commission wants to build hotels, parking garages, entertainment centers and even a golf driving range with taxpayer dollars and public subsidies."

Milling said that the money would be better put toward the city's Sewerage & Water Board and other infrastructure issues.
Well my whole universe has been exploded. I'm gonna go think this over for a while. 

Wednesday, October 16, 2019

Moving the loot around

The Convention Center has done some re-jiggering of the financing that will go into building its new publicly financed for private profit hotel project. There is a lot of money being moved around here. It's a bit of a shell game, though. A more cynical person than I might even think the entire purpose of it is to cause the Advocate to write this.
Michael Sawaya, the center's president and general manager, told the Finance Committee of the facility's governing board that he and his team had negotiated a reduction in the upfront cash contribution to the hotel project that will come from public funds to $7 million, down from a previously proposed $41 million.
A casual observer might read that and think, "oh so they're not taking quite as much public money."  But that's not what this is.  It just means they're taking less public money in the form of a large lump sum payment from the Convention Center.  Instead they are just spreading that money around.  For example, they are subsidizing a parking garage. 
The Morial Center also has agreed to fund construction of the hotel's $27 million parking garage, which the center will own and lease back to the hotel for a base rent of $300,000 a year plus 2% of parking revenue.

"What we’re doing is taking our contribution and investing it in the parking garage, which is a more positive impact for us and the public," Sawaya told the committee.
Why that is a "more positive impact" for the public is anybody's guess.  It probably works out well for lead developer Darryl Berger. We already know he understands the parking business.  Anyway they're also taking steps to hide their subsidy in other ways. In most cases a PILOT, is basically a property tax break. Meanwhile I'd love to hear more about this hotel and sales tax "rebate."
The other main terms of the revised agreement include: a PILOT, or payment in lieu of taxes, to the city of between $3 million and $5 million a year, depending on a formula related to revenue from nearby hotels; a ground lease payment by the hotel developers to the center of $250,000 a year, rising by 2% a year; and hotel tax and non-room sales tax rebates to the hotel of 8.42% and 4%, respectively.
Maybe a smart person can tell us more. But what this looks like is, the hotel is shaving its property tax liability by making up front payments to the city. The savings there, go toward "rent" it pays to the Convention Center.  Then the Convention Center kicks back to the hotel some of what it had paid in sales/hotel taxes. Remember the Convention Center is all public money one way or another so this appears very much as though it's just serving to skim away tax money the hotel would otherwise be paying to the city. That would be more or less in keeping with the Fair Sham ethic.

Again, maybe a smart person can tell me that's wrong. Will there be any at this meeting?
Convention Center leaders said they plan to hold a public meeting Monday and have invited local business leaders and other interested parties to hear about the latest proposals and express their views.
Also, this Friday is the deadline for bids on developing the 47 acre disneyland the Convention Center wants to go up around the hotel project. So hurry up and get your proposals in.  Try to keep the prison labor to a minimum if you can.

Also should mention, Citadel frequently does business with the Convention Center.  Is it too soon for them right now?

Monday, September 16, 2019

Fair Sham

During last week's CNN climate forum, Elizabeth Warren hit a home run. Warren was asked about the Trump administration's decision to reverse Obama era efficiency standards for light bulbs. Her answer brought out a point that Democrats, even the "good Democrats" often fail to make about where the true onus for effective climate action lies.
“Oh, come on, give me a break,” Warren, a 2020 Democratic presidential candidate, said during CNN’s Town Hall forum on climate change. “Look, there are a lot of ways that we try to change our energy consumption and our pollution, and God bless all of those ways. Some of it is with lightbulbs, some of it is on straws, some of it, dang, is on cheeseburgers.”

“That’s what they want us to talk about,” Warren said, before noting that, in her estimation, the fossil fuel industry wanted to cast the climate fight as “your problem.” She continued: “They want to be able to stir up a lot of controversy around your lightbulbs, around your straws and around your cheeseburgers, when 70% of the pollution, of the carbon that we’re throwing into the air, comes from three industries.”

The industries Warren mentioned are the oil industry, the electric power industry and the building industry, according to The New York Times.

In other words we aren't going to solve a problem caused by institutional corruption and  mismanagement by shaming the individual victims of that mismanagement into submission.  We're not going to reduce carbon emissions by drinking out of paper straws. Anyone who tells you differently is not really on your side. 

Similarly, in New Orleans, we aren't going to relieve decades worth of decay and negligence visited on our drainage system by shaming people into picking up their trash. But for some reason, LaToya Cantrell can't help but to do just that at every opportunity. Even, here, where the topic is really more about expanding the Department of Public Works, she can't help but get in a dig.
Officials outlined more on how they plan to spend money from the "fair share" deal. The money will help the Department of Public Works hire 42 extra employees and fund more tasks being brought in house. They'll bring in five more maintenance inspectors and 28 new pieces of equipment, including vac trucks, pothole patchers, dump trucks, excavators, pickup trucks and trailers.

"We are owning our responsibilities and seamlessly working together," Cantrell said. "It's a shared responsibility. We're not being reactive because we're doing the work every single day and have been doing it every single day since I've been in office."

Cantrell ask citizens to do their part by cleaning up the city and dumping trash appropriately. Someone recently dumped three boats on Martin Luther King Avenue.

"You can't make it up," Cantrell said. "It's present. It's there."
What does a boat left in the street have to do with causing people to need... boats in the street every time it rains?  I really have no idea.  But it's obviously evidence that we've done something wrong.

It's notable, also, that Cantrell's hostility toward the citizenry appears here in a story about her so-called "fair share" deal with the hospitality industry.  She's very proud of her grand bargain. She's so proud, in fact, that #FairShare has already transcended its original meaning to become a catch-all mantra applicable to whatever the mayor happens to be talking about at the time.  A new gambit at extracting patronage dollars out of the French Market is about “...getting our fair share, based on what’s coming back to the city, and these are assets we control.” A scheme to skim fees off of other governmental agencies for tax collection services is apparently about getting a "fair share."  The city raised the fees it charges to Bayou Boogaloo saying they also need to pay a "fair share."  LaToya's PAC is using it as the title of a fundraising campaign.  The city's and the mayor's official Twitter feeds frequently tag random messages about anything and nothing with #FairShare.  It's basically LaToya's #MAGA now.  More to the point, Cantrell's muddled, scattershot use of the phrase now indicates she never grasped its value in the first place.

The original context was the structural inequality of the tourism industry in New Orleans. An obscene portion of the wealth generated by tourism accrues to a cohort of owners and oligarchs while the majority of workers who make that wealth possible struggle for low wages, poor benefits and minimal job security. Moreover, the tax revenue collected off the backs of these workers feeds directly back into systems and institutions meant to further line the pockets of the very same oligarchs. A "fair share" of that revenue should be used to support the city's working class. It should build affordable housing. It should fund better schools, better transit, better city services. It should help the city build and maintain the basic infrastructure that makes life possible here without further burdening its poorest and most vulnerable people. 

So does Cantrell's "fair share" deal actually do any of that?  Not really. The city does receive the temporary windfall of a one-time payment plus a share of one or two new revenue streams (depending on future developments.) But the new money is grossly insufficient to the need.
Mayor LaToya Cantrell’s hard-fought “fair share” infrastructure deal could provide more than $20 million a year for the struggling Sewerage and Water Board over the next decade. But that doesn’t come close to meeting the $3 billion in funding required by the Sewerage and Water Board’s 10-Year Capital Improvement Plan.

That was revealed by Cantrell administration officials on Monday at the first meeting of the City Council’s Ad Valorem and Special Dedicated Revenue Committee. The committee aims to take a bird’s eye view of the city’s finances and release a public report in early 2020. 

“Oh wow, so every year, you’re hundreds of millions of dollars short leading up to 2028?” Councilwoman Helena Moreno asked at the meeting.
Sure, $3 billion over 10 years is a tall order. In a better world, every city in America would have ample support from a federally funded and guided Green New Deal initiative to repair crumbling infrastructure and stem the tide against the threat of climate change.  But until we get there we have to depend on our local leadership to do the best they can. The #FairShare isn't the best we can do in New Orleans.

In fact, it was never intended to be. The closest description of what it actually was intended to do came from Stephanie Grace all the way back in June. Her key observation at that time was that all of the recurring revenues generated by the deal do not come from the tourism industry giving up any of its accustomed share. Instead they come from new taxes on the "man behind the tree." 


The latest evidence that it always helps to have some metaphorical man behind some imagined tree is the deal to send more money to New Orleans to help rebuild its aging infrastructure, which has apparently cleared all remaining hurdles in the state Legislature. Despite a period of tense, on-again, off-again negotiations among New Orleans Mayor LaToya Cantrell, Gov. John Bel Edwards, legislative leaders and representatives of the tourism industry, all sides emerged with much of what they wanted.
"All sides" got what they wanted.  True! But that requires some explanation of which "sides" wanted what. Let's look at how the spoils are divided.

Number one on the list was the Convention Center wanted to build their publicly funded but privately profitable hotel. Check. Walt Leger got that for them.
House Bill 617, passed by the Senate on a 33-0 vote on Sunday, authorizes the Convention Center to build and own the $550 million, 1,200-room hotel proposed for the upriver end of the giant exhibition hall. The bill also clears the way for the Convention Center to develop other vacant land it owns next to the site.
Number two was the tourism cabal wanted less public scrutiny over the marketing and convention brokering agencies they control.  Check.  The technically public New Orleans Tourism Marking Corp will be folded into the technically private (but publicly funded) New Orleans and Company.  The city's "infrastructure fund" gets a cut NOTMC's corpse.  But the lion's #FairShare of that still goes to the NO and Co.
About $5.5 million of the Marketing Corp.’s budget, which comes from a nightly fee charged on hotel rooms, would be redirected to the city’s infrastructure fund as part of the overall deal. Other money the group receives, including $2 million a year from Harrah’s Casino and its hotel and $7.8 million from a self-assessment by hotels in the city, would go to New Orleans and Co.
The key difference, though, is that these operations will be more fully privatized under the new regime.  The city had a direct oversight role with NOTMC.  The new entity says it will "invite" them to sit in on the back bench at some of their meetings.
Oversight of the combined organizations is another detail being worked out. In an internal company email sent Wednesday and shared with NOLA.com | The Times-Picayune, Perry said New Orleans and Co. intends to invite the two City Council district members and a rotating at-large member to serve on an “ex-office” basis with New Orleans & Co. Perry later clarified that his group is still working out the details for a formal City Council presence on the board, but his plan is to invite council members to serve on a leisure marketing committee run by Romig.
Number three was the city wanted to pull in more recurring revenue from local hotel/motel taxes. This, more than anything, was the core of the "fair share" argument. And they did sort of get what they wanted.  But the trick is in how they got it. What the city is getting is a completely new tax based on a revival of a so-called "lost penny" that hadn't been collected since 1966.  In other words, the tourism agencies aren't "sharing" their previous take at all.  The "man behind the tree" is.

Number four was various parties for various reasons wanted a new tax on Short Term Rentals.  The hotel industry wanted it in order to equalize the tax paid on STRs with that applied to hotel rooms.  The STR industry, while not happy about being taxed, is happier on balance with becoming a critical revenue generating industry the city will be reluctant to crack down on in the future. The city, again, just wants to get paid.  And they will. Maybe. The new tax still has to be approved by voters on the November ballot this year.  Also the city is having difficulty projecting just how much revenue it's going to actually see from it.  One thing we do know is whatever amount the tax does eventually produce, we still have to "fair share" 25 percent of it back to NO and Co. So, congratulations on that as well. 

Number five on the wish list was the Convention Center wanted to ret-con its legally questionable collection of a tax originally intended to pay for its Phase IV construction. Over the years, that money has become a kind of slush fund the city's elite have used to pass money around among themselves for their own pet projects and those of their cronies.  So, yeah, in exchange for a paltry $50 million one time payment, they get to keep doing that now.   Already, they've got big plans. 
New Orleans tourism officials' plans for a massive entertainment district on empty land upriver from the Ernest N. Morial Convention Center are back on the table.

The Convention Center's board, which finally won approval in June to build a 1,200-room hotel on part of the land after lengthy political wrangling, has asked interested firms to submit ideas by Oct. 4 for how to develop the 20 acres adjacent to the hotel site.

In its request for new master plan proposals, the Convention Center said it "expects the development to be reflective of the unique culture and history of New Orleans and include elements not commonly found in other parts of the nation."
They're putting out for bids on a shiny new entertainment district to go with their hotel. It will be built on some of the highest ground in the city convenient to downtown. Ideal for building affordable housing, maybe.  But that would only happen if the city were serious about giving its workers a "fair share" of the benefit their labor actually produces. LaToya Cantrell's fair sham deal was never really supposed to do that.


The mayor herself even admitted the fair sham isn't going to be enough last week when city officials laid out their plans for some of the money they know they will have on hand.  The deal left far too much money and power in the hands of the tourism cabal. So, naturally, she is asking you to make up the difference.
But she said it will take far more than the "fair share" deal’s millions to fix all the roads, canals and pipes that have crumbled during years of deferred maintenance and that are being further battered by the effects of climate change. She said that’s precisely why voters should pull the lever for a trio of infrastructure funding initiatives on Nov. 16. 

Part of what voters will consider is tied in with the fair share deal: a tax on short-term rentals whose proceeds will help to fund city infrastructure.  The other initiatives include a 3-mill tax to pay for repairs and maintenance of infrastructure, a $500 million package of infrastructure bonds and another $10 million in bonds for maintenance work.
When they do get down to fixing the canals and pipes, however they pay for it, let's hope they get it right this time.  The last big drainage project only just recently wrapped up. And already people are raising questions about that one.
The SELA improvements all stem from widespread flooding on May 8, 1995. The resulting $3.1 billion in insurance claims set a record at the time for an unnamed storm event, and the federal flood insurance program had to foot the bill for repairs.

So, Congress responded by authorizing $1.5 billion in drainage improvements over the next 20 years, with the idea that improving the infrastructure would prevent rising flood-repair costs in the future. The Uptown culverts were among the last pieces of that puzzle.

But after this summer’s floods, there are questions about whether those improvements have had unintended consequences for New Orleans’ antiquated drainage system.

When the Corps completed the SELA culverts, they were turned over to the Sewerage & Water Board. The board’s executive director, Ghassan Korban, doesn’t believe the increased capacity in the SELA culverts would have any negative impact on surrounding drainage, but he said he’s hired an outside engineering firm to analyze the flow and determine if it’s causing any bottlenecks.
A couple of independent engineers quoted in that story think maybe the SELA work is making the flooding worse. Sewerage and Water Board is skeptical but they say they'll check it out.  Last year we read in The Lens that the new culverts are "large enough to accommodate three city buses side-by-side."At the time that seemed like a colorful description but, really, who knows what might be down there

Whatever they find, though, it's important to understand, the mayor is not going to ask the city's ruling classes to pay to dig it out.  According to her version of events, they are paying their fair share.  So, obviously, we must be the problem now.
Joey Wagner, the Corps’ senior project manager for the SELA projects, bristled when WWL-TV asked what he would tell Bossier and others who think the construction has contributed to recent flooding.

“Like the mayor says, move your cars to the neutral ground," he said. "We all know there are certain areas of the city that are going to flood. And it’s going to continue to flood until the system is totally overhauled.”

And Mayor LaToya Cantrell backed up Wagner at a news conference last week: “Until the city, until we start dealing with our local issues relative to infrastructure, then we will not see the system working as intended.”

She focused her ire on the large amounts of debris New Orleanians regularly dump into the drainage system, and then blamed the intensifying rainfall.
To quote Senator Warren again, come on, give me a break.