Leave it to New Orleans to teach a lesson in how to screw up economic development. The Crescent City government managed to run off not just a Top Golf but its main competitor as well. The Times-Picayune reported Tuesday
The company behind New Orleans' unfinished Drive Shack golf-entertainment complex at the site of the former Times-Picayune building is now considering walking away from the flailing project, leaving potentially millions of dollars in unpaid construction bills in limbo along with a crumbling eyesore along Interstate 10. Illegally dumped tires and graffiti now cover parts of the construction site on Howard Avenue that was once touted by city and state officials as bringing 350 permanent jobs to the area. The $29 million project has been in the works for more than four years. It was billed as a way to revitalize an underdeveloped area of the city and was partly funded by tax subsidies. But it has been beset by difficulties from the outset, most recently the financial woes of its Dallas-based corporate parent during the coronavirus pandemic.The company reported in March that it lost $37 million in 2021 and total losses over the last three years at $160 million. Such losses crippled any expansion plans.
Drive Shack declined to comment further. But Joe Jaeger, who led the consortium that bought the 3800 Howard Avenue site in 2016 for $3.5 million, said that he is scheduled to meet with Drive Shack representatives in the next few weeks to discuss possible alternatives to a Drive Shack venue. There are $1.8 million of construction liens filed against the project.What about Top Golf? Well, Top Golf was once interested in New Orleans but the powers that be screwed that up as well. You can't make this up.
In 2019, Drive Shack rival Topgolf International had quietly pursued a deal with Convention Center leaders to build one of its outlets in the $1 billion "entertainment district" planned for the center's upriver acres. However, the Topgolf project was shelved amid complaints from the owners of the Drive Shack project, which had the backing of local politicians and Gov. John Bel Edwards.The Times-Picayune reported in May 2019:
Last month, a proposal to locate a rival Topgolf complex less than three miles away from Drive Shack's site, on land owned by the Ernest N. Morial Convention Center, a state agency, caused a political kerfuffle that ultimately drew in Gov. John Bel Edwards. Drive Shack's head of real estate wrote to Mayor LaToya Cantrell to complain that the Convention Center's process in approving a lease with Topgolf had not been transparent and competitive, while Jaeger lobbied the governor and other officials, arguing that the center's leadership shouldn't be competing directly with private-sector projects.x At one point, Jaeger said that the Drive Shack project was likely "dead" because of the competing project. In April, however, Edwards said the Topgolf project was “not something we’re going to pursue right now,” amid tense negotiations between the Cantrell administration and tourism leaders over finding money to help upgrade the city's problem-plagued infrastructure.Article behind a paywall.
Good job, New Orleans. You managed to go from two to zero. Good job.
13 comments:
Pollitians and biz don't mix...
Is Harvey Johnson a "consultant" on this for New Orleans?
In New Orleans economic development means paying "the tax". If you don't pay "the tax" to the right people you can't do business and you might get a concrete overcoat and a trip down the river.
Democratic leadership strikes again.
still better than jackistan..
What they ran off was a future eyesore. There is much more to life that golf in New Orleans and Louisiana. A golf driving range might count as economic development in Mississippi. In Louisiana more jobs are created in a month by new entertainment venues alone than Mississippi creates in all sectors.
We are getting a Top Golf just near the Costco.
Can't wait!
10:42, Top Golf is awesome. Try out the one in Baton Rouge. Louisiana folks seem to love it.
But I agree, the term “economic development” gets thrown around too much.
“Economic Development” here in Mississippi is a term from our politicians that means “we comin’ to spend ya’ money without ya’ll’s authorization, since bein’ y’all’s money is actually our money” If Tate has done one thing right it was to deny money to the city pertaining to venues. The crime has to be stopped and I would be inclined to say I have no problem bringing the feds in to clean it up. I don't really care for that idea but you can’t have rallies or pray these things to go away. It is up to our leaders, the right ones, to make the decision. There was a time when “WE” had control of the city and things were positive and you were proud to call Jackson your Hometown. Not so much anymore. Now, the so called venues are to line peoples pockets and that’s all. You eradicate the crime and positive development will follow. It shows investors you are serious about making a change for the better.
Makes you wonder what all it took for Mr. Jaeger to pull off the hotel/golf course on airport road? Sounds as if he is rather adept in working situations.
There's a difference between economic investment and the taxpayers being involuntary investors in less than reliable businesses with "short life spans" and limited markets.
Democrats at work they are ruining NO. Take care of your tourists. Make them feel safe at all times. I have heard so many say they didnt care if they ever went back to new orleans. that is just sad. But its leadership.
TOP GOLF themselves has shown their choice of location in many cases is an automatic fail. Beer golf balls and pretty ladies is all great and everything but once the non-golf locals find it....it's over. Turns into a fight pit and shooting gallery. NO government couldn't build a doghouse .
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