April 16– Apr. 16–New Orleans Mayor LaToya Cantrell and City Councilman Jay H. Banks say they are supporting a deal to extend Harrah's contract in New Orleans that will eventually lead to the construction of a $325 million hotel.
Their support for the extension, which requires the Legislature's approval, along with Senate President John Alario's backing strongly improves odds for its passage. The legislative push comes after Harrah's attempt to gain an extension last year fizzled in the Senate amid Cantrell's tepid response and Alario's opposition. The casino is in Banks' district.
Last year's bill cratered over questions about whether the proposal was the best deal for the state, especially surrounding upfront and annual payments from Harrah's owner Ceasar's Entertainment to the state and New Orleans. The Senate version significantly increased those payments from the House version, touching off negotiations that collapsed just before the Legislature adjourned.
The House version would have required Caesar's pay $63.6 million annually to the state and $3.6 million to New Orleans; the Senate version upped the state payment to $83.6 million annually and New Orleans' portion to at least $6 million.
This year's bill requires a $6 million annual payment directly to New Orleans starting Aug. 1, and at least $65 million in annual payments to the state.
The upfront payment under the current bill will be $20 million to the city, conditional upon the City Council's approval of the amended lease.
The city is also in line to receive as much as $8 million in increased rent and additional property and sales taxes, according to Banks' office.
Cantrell issued a statement describing the deal as a "win-win" for the city and state, adding that the city is investigating how the deal will add jobs. Previous projections based on Harrah's building a new hotel pegged job creation at 600 construction jobs and 900 permanent positions.
"This is a major development, and it must be emphasized that this agreement does not require one cent in city or state incentives or subsidies," Banks said in a statement.
The hotel is proposed for construction next to the casino's existing site, and would not include any expansion of gaming. There are also improvements slated for the casino itself, as well as Fulton Street, including a glass roof that would allow for year-round use.
