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Plaza Tower owner needs more time as threat, cost of demolition looms

City officials say it will cost $27 million to demolish Plaza Tower.

NEW ORLEANS — New Orleans is chipping away at the "Dirty Dozen" list. Wednesday, the city demolished the DeGaulle Manor in Algiers. Officials say the site has been vacant for 14 years and has had 15 code violations. It's the second building on the list they've torn down. 

"We know it's been a dumping site for years and crime has occurred at this site. So hopefully today, this will give the community some form of relief," Anthony Davis, New Orleans Director of Code Enforcement said. 

As they work through the list, city officials have hit some trouble in moving forward with bulldozing another long abandoned building – Plaza Tower. Davis says it would take tens of millions of dollars to demolish Plaza Tower. 

"We know now definitively that it's going to take $27 million to demolish Plaza Tower. Obviously, we're not going to use $27 million of taxpayers dollars to bail out a private owner," Davis said. 

The city has been trying to get the owner of Plaza Tower, Joe Jaeger to do something about the blighted skyscraper. In the last few years, it's posed multiple issues for the city, including debris falling, fires, and squatters. Last year, the city hit Jaeger with multiple fines, they say, the largest amount the city has ever imposed. Now, as they try to avoid the $27 million demo cost, they're hoping to work with Jaeger and potential buyers. 

"Economic development is working with some other buyers potentially, to rehabilitate the property. And we feel that that's the best course of action as we go forward," Davis said. 

In a statement to WWL Louisiana Wednesday, the Mayor's office said: "The City remains committed to the safety of its residents as we continue to aggressively pursue enforcement on blighted properties, including Plaza Tower. However, our preference is always voluntary compliance and redevelopment. We will continue to work with all interested parties toward that effort."

Jaeger has said several times in the past few years that he's in discussion with a potential buyer, and said it again Wednesday. 

In a statement, he told WWL Louisiana: "The property is under contract, and we are working with two other potential buyers as a backup. All are from out of town. Since all buyers need to obtain financing, the process in this environment takes a lot longer than any of us would like." 

But, he adds, there may be issues with the buyer who is currently under contract. 

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