Letters From Our Readers

Sometimes It’s Best to Admit You’re Wrong

Read the original here, with links to other sources.

by Karley Frankic

February 13th, 2009

When it comes to development in New Orleans there seems to be a repeated offense of pushing the “Hail Mary” project. Much like that desperate pass in the last seconds of a football game, zoning and permitting, preservation of neighborhoods and just plain logic are compromised by claims of huge financial returns.

A good example of a “Hail Mary” project: the New Orleans World Trade Center. Last month the Bureau for Government Research released a thorough report that took a hard look at what it is costing taxpayers to hold onto a building that the City has been unable to find tenants for. The recommendation: sell it.

Now we have the City’s latest “Hail Mary” Project: LSU/Charity plan. The time has come to admit that the numbers are bad.

The Foundation for Historical Louisiana released a study conducted by the architecture firm RMJM Hillier, that LSU has hired to design the $98 million Louisiana Cancer Research Center in at Claiborne and Tulane Avenues. There is no disputing the experience and reputation of this international architecture and engineering firm. Their report clearly shows that renovating Old Charity Hospital into a state of the art medical facility as opposed to acquiring hundreds of individual lots and building a suburban style center would save both time and money.

The State’s Legislative Budget Advisory Committee heard testimony from both sides. Despite not providing any cost analysis to back up his claims Jerry Jones, State Facilities Manager, objected to the well researched numbers from RMJM Hillier presented. Mr. Jones said that the State estimates they will have to spend $54 million just to acquire the land.

Memories are short around here. Any recollection of St. Charles Ventures, the Albertson’s Developers, that got edged out by A & P on a strategic lot and had to buy the Dr. Tichenor’s plant adding close to a million dollars in expense? What about the lengthy legal battles and eventual multi-million dollar payout for the Convention Center Phase IV to purchase TWIROPA on Tchoupitoulas Street?

In both cases the City supported the projects - giving subsidies and claiming huge returns - but neither project was ever built and returns on taxpayer investment was never realized. The site of the Convention Center Phase IV has since been wrapped in with land from failed River City Casino by the developer, MidTown Group of Miami, who demolished the 100-year-old building last year. And now Blaine Kern is planning on building a Mardi Gras World Facility on the casino site.

Why would a medical complex succeed when groceries, hotels and convention centers couldn’t overcome delays and extra expenditures from eminent domain, which the state legislature drastically restricted in 2006?

The proposed LSU site is composed of 70 acres of private property owners. There will almost certainly be legal fights that will increase expense much more than estimated.

And then there is the notion that an urban hospital is not as good as a suburban medical center. That notion is unfounded. There are numerous examples of internationally renowned urban hospitals in America including John Hopkins in Baltimore and Mt. Sinai in New York.

Inserting suburban models in a city is just bad planning. The residential development River Garden (locally referred to as Faubourg Wal-Mart), sucked up every possible public subsidy to tear down structurally sound housing in the St. Thomas project in order to build singles, doubles and apartments that are already falling apart. One homeowner who purchased his home just a year ago is calling in the warranty a second time for shoddy workmanship. And the development did not get rid of the crime as promised.

Then there is the idea that a big project is going to save downtown. Both Armstrong Park and construction of the elevated Interstate 10 on Claiborne Avenue were touted as expensive modern projects that would save downtown. All they have managed to do is to cut into pieces the historic Treme neighborhood and reduce the property values adjacent to the park and expressway. In fact, the first draft of the City’s Master Plan has recommended removing the elevated expressway as they are already doing in San Francisco, New York, Portland and Milwaukee.

Finally there is Jazzland/Six Flags. That project received a huge HUD loan and taxpayer subsidies. Now the park is a blight in the swamp that continues to waste money.

The track record of the City’s “Hail Mary” projects is dismal. They do not produce the promised return on investment and in some cases caused a terrible impact on the city. Perhaps logic will reign this time around.