Looking into the future the Pelican feeding its young from a self-induced wound in its own breast (as depicted, mysteriously, on the state flag of Louisiana) is accepted as an appropriate symbol of both self-sacrifice and rebirth. Through his selfless efforts, man is raised from the slavery of ignorance to the condition of freedom conferred by wisdom. Given the current state of affairs in Louisiana, one hopes that the understanding of the Pelican as a symbol shall point the way towards a new consciousness of ourselves as a whole, and lead us to face our futures with strength, grace, wisdom and faith, to learn from our mistakes and carry our successes and zest for living to future generations.

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Levee Board Eyes South Shore Deal

July 20, 2006
Source: www.nola.com
By Frank Donze

Hotel and gambling complex talks to start

With much of its revenue-producing waterfront real estate still in tatters nearly 11 months after Hurricane Katrina, the Orleans Levee Board took steps Wednesday to launch negotiations with a Nevada-based firm looking to develop a hotel and gambling complex at the agency's dormant South Shore Harbor marina.

Representatives of Atlantis Internet Group Corp. submitted a detailed proposal to lease Levee Board property inside the marina as well as water bottoms along the Lake Pontchartrain shoreline that fronts Hayne Boulevard for condominiums.

While the company envisions an investment of more than $200 million, officials said the development likely would take shape in phases, over a period of years.

Board member Eugene Green, who heads a committee charged with reviewing the deal, said his panel plans to begin a formal review of the Atlantis offer as early as next week in hopes of bringing a recommendation to the full board before the end of August.

"It's my intention to come back in 30 days with a clear response," Green said.

But board member Dan Foley cautioned his colleagues to carefully analyze what he labeled a "substantial" proposition.

"The devil is in the details," Foley said, noting that before the board discusses a lease, it first must examine a range of complex issues, ranging from the development team's financial wherewithal to the project's merit.

"I need to know more about the quality and the scope of this project," he said. "Is it too big? Is it too small? Are there competitive projects that might be better?"

Most importantly, Foley said, is whether or not the board as it is currently configured will even be in a position to close a deal with Atlantis. If voters approve a proposal on the Sept. 30 ballot to merge local levee boards into a regional authority, it is unclear what branch of government would oversee development of Levee Board property.

Under the merger initiative, the board's myriad assets that are unrelated to flood control, such as Lakefront Airport and South Shore Harbor, would be moved to the state's Division of Administration while local and state officials decide what to do with them.

Keeping B.R. informed

Board President Michael McCrossen said Michael Olivier, the state's secretary of economic development, along with staffers from the Division of Administration and the state attorney general's office have been kept "informed every step of the way" about the discussions with Atlantis.

With eastern New Orleans struggling to recover from the epic storm, Green said it is essential to encourage economic development in the area. Green said he is hopeful board members can finalize an agreement with Atlantis before Dec. 31, the date that the existing board would go out of business if voters authorize a regional flood control agency.

"We need to be focused on getting something done," he said. "We're not going to get bogged down. We can make a decision."

Donald Bailey, Atlantis' president, said he welcomes a full vetting of his project, which calls for a luxury hotel atop a barge, a 2,000-seat arena and two restaurants inside the marina and waterfront town homes and other amenities along Lake Pontchartrain. While the company wants to pursue all available tax incentives, Bailey said it is prepared to use private money to build the development.

"We want it to be scrutinized," Bailey told the board. "If there's any stone unturned, we want it done before the fact."

To that end, Bailey noted that the Atlantis proposal calls for three public hearings before an agreement is signed.

Gambling on gambling

In its offer, Atlantis asks for a 50-year lease that would include rental payments and a share of gambling revenue if the company can secure a license to operate one of the 15 casino boats allowed under state law.

The company has proposed a $100,000 up-front payment for the exclusive option to lease the Levee Board property, including a 17-acre man-made peninsula in the lake just north of the marina. The offer calls for Atlantis to pay for road repairs and other infrastructure improvements with the company recouping its investment via a 50 percent discount on its first few years of rental payments.

As for bringing back gambling to South Shore Harbor, that decision is out of the Levee Board's control.

Until August, when Katrina laid waste to the marina, South Shore Harbor was home to the Belle of Orleans gambling boat. The casino, which was badly damaged by the storm, has been moved to Mobile, Ala., where it is undergoing repairs.

The casino's new owner, Kentucky hotel operator Columbia Sussex Corp., has ceased lease payments to the Levee Board, which has taken the company to court.

The boat, which carries a coveted Louisiana casino license, is slated to move to a dock near Amelia in St. Mary Parish, where voters Saturday approved a proposition to accept the riverboat.

But two other riverboats owned by Harrah's Entertainment Inc. in Lake Charles may be up for grabs.

Harrah's has abandoned the floating casinos, which were damaged by Hurricane Rita, and is awaiting agreement from the Louisiana Gaming Control Board to sell the two licenses to Pinnacle Entertainment Inc.

While Pinnacle plans to twin one of the boats with an existing casino it operates in Lake Charles, the company has not announced plans for the other license. The state gaming board would have to approve any transfer of that license.

Frank Donze can be reached at fdonze@timespicayune.com or (504) 826-3328.