Leger (HB 516)
Present law (uncodified) creates the Ernest N. Morial-New Orleans Exhibition Hall
Authority (authority). The purpose of the authority is to acquire, construct, reconstruct,
extend, improve, maintain, and operate projects within the city of New Orleans in order to
promote the economic growth and development of the city and its neighboring parishes.
Present law defines "project" as any convention, exhibition, or tourist facility, other than
lodging facilities, and the necessary furnishings, machinery, equipment, and items incidental
thereto. Proposed law would have specifically removed the limitation relative to lodging
facilities and allowed for site improvements and infrastructure relative to the authorized
projects.
Present law authorizes the authority to enter into contracts to acquire, construct, improve, or
operate projects relative to restaurants, retail outlets, offices, parking, entertainment, and
similar activities. Proposed law would have further authorized such contracts relative to
hotels.
Present law exempts the authority from state law on the letting of public contracts for the
making of any public works or for the purchase of any materials or supplies as it relates to
any lease or sublease for allied services such as restaurants, retail outlets, offices, and
entertainment. Proposed law would have further extended such exemption to hotel services.
Present law authorizes the authority to incur debt and issue bonds. However, present law
specifically precludes the authority from utilizing nontraditional tax-free bonds from any
source when such use would benefit any properties being developed by a private entity.
Proposed law would have eliminated this prohibition, and would have added that neither the
full faith and credit of the state nor that of the authority shall be granted to any private
person, firm, or corporation.
Present law authorizes "expansion projects" for the Earnest N. Morial-New Orleans
Exhibition Hall (convention center), including Phase III and IV. Proposed law would have
authorized a Phase V expansion which would have allowed a joint venture between the
authority and a private entity for a tourism development plan to enhance the convention
center and install basic infrastructure to facilitate private development on property owned by
the authority, the public component of which would have been divided into the following
four stages:
(1)Stage 1-Public infrastructure improvements on Convention Center Blvd., from
Poydras St. to Orange St., including utility and traffic improvements, and a park and
pedestrian mall; public infrastructure improvements by Henderson St., Tchoupitoulas
St., Orange St., and the Mississippi River flood wall to extend Convention Center
Blvd. from Henderson St. to Orange St., including a traffic circle, public utility
infrastructure to support private development, and soil remediation; and the
relocation of existing power lines along Convention Center Blvd. and the
incorporation of a "people mover" system along Convention Center Blvd., from
Poydras St. to Orange St.
(2)Stage 2-Development of a riverfront festival park along the river at existing wharfs,
providing access to the river through the development of approximately five acres for
recreational, hospitality, commercial, and residential use; and development of
Riverfront Festival Park infrastructure, including public utilities, lighting, and
landscaping.
(3)Stage 3-Integration of the convention center with its surrounding urban areas through
the renovation of the south end of the existing convention center by creating a new
south entrance; incorporation of a new kitchen and restaurant facility at the south end
of the Convention Center; development of an executive conference center to be
integrated as part of a new, privately developed hotel; and relocation of existing
convention center functions currently at the south end of the facility to accommodate
a new entrance.
(4)Stage 4-Renovation, restoration, construction, or demolition of the buildings bearing
municipal address No. 2 Canal Street World Trade Center buildings and site preparation for the development of a riverfront festival park. Activity associated with
the modification or demolition of the World Trade Center and the development and
operation of the park will be conducted in a fashion which ensures no interference
with or adverse effect upon the main line trackage of the New Orleans Public Belt
Railroad.
Proposed law would have changed the description of Stage 4 from "demolition of the New
Orleans World Trade Center buildings" to "demolition of the buildings bearing municipal
address No. 2 Canal Street".
Proposed law would have authorized the authority with the approval of the State Bond
Commission, to issue its negotiable revenue bonds in one or more series for the purpose of
providing funds to finance the Phase V expansion project.
Proposed law would not have impaired outstanding bonded debt obligations of the authority,
and would have prevailed if any provision of proposed law was inconsistent with present
law.
Proposed law would have further provided that provisions of proposed law shall not have
affected, altered, or diminished any rights or powers of the Board of Commissioners of the
Port of New Orleans with respect to any property it owns, operates, or administers.
Proposed law would have become effective upon signature of governor or lapse of time for
gubernatorial veto.
(Proposed to amend §§4(intro. para.), 4D, 4G, 4M, 20A, and 23 of Act No. 305 of the 1978
R.S., as amended; Proposed to add §20F of Act No. 305 of the 1978 R.S., as amended)
VETO MESSAGE
"House Bill No. 516 by Representative Leger grants additional powers to the Ernest N.
Morial-New Orleans Exhibition Hall Authority. The bill also would allow for the first time
the Authority to use non-traditional tax free bonds that would benefit any properties being
developed by commercial, private entities and the bonded debt could count against the state
debt limit. In addition, this project could be funded through the capital outlay bill.
For these reasons, I have vetoed House Bill No. 516 and hereby return it to the House of
Representatives."