NEW ORLEANS - The developer involved in a controversial plan to redevelop the Municipal Auditorium announced he wants to temporarily halt negotiations with the city over his plans to reopen the shuttered landmark.
In a statement issued Monday by spokesman Bob Dabney, developer Stewart Juneau and other investors wrote that their LeTriomphe Property Group, LLC “has requested a temporary suspension of negotiations on a professional services agreement for the redevelopment of the Morris X. F. Jeff, Sr. Municipal Auditorium.”
The plans for the building have been embroiled in controversy since last fall. At one point, the deal, estimated to total between $80 million and $100 million, called for the auditorium to be leased for 50 years to Juneau and other investors.
The plans for the building have been embroiled in controversy since last fall. At one point, the deal, estimated to total between $80 million and $100 million, called for the auditorium to be leased for 50 years to Juneau and other investors.
The deal drew the ire of inspector general Ed Quatrevaux, particularly because it included what some considered a vague consulting arrangement with Bernardo Wade, a photographer who is a close supporter of Mayor Ray Nagin. At one point, Quatrevaux called the proposed terms of the redevelopment deal an "abject waste" and "a contract for nothing."
"There were no deliverables. So, it wasn't much of a contract. It didn't produce anything of benefit for the city," he said.
City Council President Arnie Fielkow says the decision to halt negotiations was a good one.
"There needs to be competitive selection of any project going forward. But I think we all have the commonality, we want the auditorium put back into commerce, we want a good use for our community, wanna make sure that the citizens are in favor of its next use, so I think there needs to be a lot more discussion," Fielkow said.
The statement from Juneau and LeTriomphe did not address the controversy.
“LTPG remains confident that providing a landmark home for the cultural arts and creative industry in New Orleans in the damaged and unused auditorium is one of the most important projects that will be undertaken in the city in the near future,” continued the statetement from LeTriomphe. “We look forward to working closely with all segments of our great community on making the mission of providing a landmark home for the cultural arts in New Orleans a reality.”
Critics of the project hailed the news. In a statement from Friends of Armstrong Park, organizer Leo Watermeier, said his group hoped the new mayoral administration would launch plans to redevelop the auditorium, long a home for theatrical presentations, concerts and Carnival balls.
“We had opposed it from the beginning,” said Leo Watermeier, organizer of the Friends of Armstrong Park. “There had been no public input to a plan that meant a drastic change in use for one of New Orleans’ most important buildings. We were also skeptical of the business reality of the scheme and Mr. Juneau had refused our request to see his numbers. We support restoring the auditorium to its original use. FEMA money is available to accomplish that.”
No one from the city was available for an on-camera interview Monday, but a spokesman for Mayor Ray Nagin issued this statement: “The City of New Orleans negotiated in good faith and presented leTriomphe with a contract that is executable. To the best of the City's knowledge, the request to temporarily suspend negotiations was a business decision on the part of leTriomphe.
