Documents show that, contrary to a statement by the Office of New Orleans Mayor LaToya Cantrell, the Pontalba Apartment in the French Quarter is owned by the City of New Orleans and not the French Quarter Market Corporation. According to the city’s annual comprehensive financial report, the apartment is owned by the City of New Orleans, but all obligations and responsibilities of the apartment rest with the French Market Corporation. According to the city’s financial report, the condo was merged from a Louisiana Public Business Corporation into the French Market Corporation in March 2014. The French Market Corporation is a non-profit organization owned by the City of New Orleans, according to the city’s financial documents. This would mean that the apartment in Pontalba is owned by the city. The report states: “Local government corporation incorporated by the City on January 1, 1972 to provide for the operation and maintenance of the French Market Properties owned by the City of New Orleans. These properties include five buildings and the Farmers Market. The French Market is a non-profit corporation owned by the city and managed by a board of directors consisting of 12 mayor-appointed members merged into the French Market Corporation on July 14, 1988. Prior to the merger, Upper Pontalba’s operational purpose was to renovate and operate the Upper Pontalba Building, a four-story, 64-unit residential and commercial building in the French Quarter. “As a result of the approved and certified merger, Market and Upper Pontalba became one company, with Market being the surviving company and Upper Pontalba ceasing to exist. As the surviving company, the Market held all the rights, privileges and concessions it previously held, as well as those of Upper Pontalba. Additionally, all property and assets and debts of Upper Pontalba transferred and transferred to the market. The market is responsible for all liabilities and obligations of Upper Pontalba. “The apartment was shrouded in controversy after reports that Cantrell was using the Upper Pontalba apartment as a residence. Concerns over the use of the public building prompted the New Orleans Inspector General to issue a statement that the city should sell the apartment to the French Market Corporation for rent at fair market value: The report read, “To reserve this apartment at all.” keeping times for mayoral events is not a good use of the city’s resources,” said Edward Michel, Inspector General. “The OIG recommends that the city turn over the apartment to the French Quarter Market Corporation for rent to the public. This would ensure that the city receive an advantage commensurate with the fair market value of this high-demand property,” the letter reads.WDSU Investigations spoke to Michel and asked him about the key takeaways from this report. “We looked at the use of this apartment and believe that the personal use of this apartment by the bur germeister gives the appearance of a donation of public property, in violation of the Louisiana Constitution,” Michel said. A letter from the OIG to the mayor and the French Market Corporation said the upper Pontalba apartment is available to rent for about $2,900 a month, which would bring the city more than $36,000 in revenue each year. In addition, the report notes that the city would incur an additional $5,000 in utilities that it otherwise would not have paid. “We have to be good with government money. Allowing the use of this apartment without renting it out to any of the 300 people on the list to rent an apartment in upper Pontalba does not comply with the city’s obligation to maintain a fair market value for all public real estate”, Michel said Michel said the Louisiana Attorney General requires that in order for an issue or transfer of public funds or property to be legal, all three of the following must be true: 1. It must serve a public purpose 2. The property does not appear altogether gratuitously; and 3. Evidence must show that the public entity has a reasonable expectation to receive a benefit or value at least equal to the amount spent or transferred. Michel says that the use of the home as a residence did not appear to meet any of these requirements.” There was no written agreement at all documenting the use of this apartment which wi r found it particularly worrying as this is a valuable resource for the city,” said Michel. A spokesman for the mayor sent WDSU this statement, stating that the city does not own the apartment and therefore declined to comment on whether or not it should be abandoned: “The Office of the Inspector General’s report did not produce any significant findings and only reiterated our position reiterates that the most recent franchise agreement does not contain any rules as to how the unit should be used.Furthermore, since this condo is and always has been owned by the French Market Corporation, it would be inappropriate for the City of New Orleans to take a specific position on how they own theirs wants to operate the facility.”WDSU has contacted the Office of the Mayor n the OIG regarding the City’s ownership of the property. The Mayor’s Office has not responded at the time of this writing. To read the full OIG report, click here.
Documents show that, contrary to a statement by the Office of New Orleans Mayor LaToya Cantrell, the Pontalba Apartment in the French Quarter is owned by the City of New Orleans and not the French Quarter Market Corporation.
According to the city’s annual comprehensive financial report, the apartment is owned by the City of New Orleans, but all obligations and responsibilities of the apartment rest with the French Market Corporation.
According to the city’s financial report, the condo was merged from a Louisiana Public Business Corporation into the French Market Corporation in March 2014.
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The French Market Corporation is a not-for-profit organization owned by the City of New Orleans, according to the city’s financial records.
That would mean that the Pontalba apartment is owned by the city.
The report reads:
“Local government corporation incorporated by the city on January 1, 1972 to provide the operation and maintenance of the French Market Properties owned by the City of New Orleans. These properties include five buildings and the Farmers Market. The French Market is a non-profit corporation, owned by the city and managed by a board of 12 mayor-appointed members
“The Upper Pontalba Building Corporation (the Upper Pontalba), a Louisiana public benefit corporation incorporated on July 14, 1988, merged with the French Market Corporation. Prior to the merger, Upper Pontalba’s operational purpose was to renovate and operate the Upper Pontalba Building, a four-story (64-unit) residential and commercial building in the French Quarter.
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“As a result of the approved and certified merger, Market and Upper Pontalba became one company, with Market being the surviving company and Upper Pontalba ceasing to exist. As the surviving company, the Market held all the rights, privileges and concessions it previously held, as well as those of Upper Pontalba. Additionally, all property and assets and debts of Upper Pontalba transferred and transferred to the market. The market is responsible for all liabilities and obligations of Upper Pontalba. “
The apartment was shrouded in controversy after reports that Cantrell was using the Upper Pontalba apartment as a residence.
Concerns over the use of the public building prompted the New Orleans Inspector General to issue a statement that the city should give the apartment to the French Market Corporation for rent at fair market value:
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The report read:
“Keeping this apartment constantly reserved for mayoral events is not a wise use of the city’s resources,” said Edward Michel, Inspector General.
“The OIG recommends that the city turn over the apartment to the French Quarter Market Corporation for rent to the public. This would ensure that the City receives a benefit commensurate with the fair market value of this high-demand property,” the letter said.
WDSU Investigates spoke to Michel and asked him about the key findings of this report.
“We have reviewed the usage of this apartment and believe that the mayor’s personal use of this apartment gives the appearance of a donation of public property, which violates the Louisiana Constitution,” Michel said.
A letter from the OIG to the mayor and the French Market Corporation said the upper Pontalba apartment is available to rent for about $2,900 a month, which would bring the city more than $36,000 in revenue each year.
In addition, the report notes that the city would incur an additional $5,000 in utilities that it otherwise would not have paid.
“We have to be good with government money. Allowing the use of this apartment without renting it out to any of the 300 people on the list to rent an apartment in upper Pontalba does not comply with the city’s obligation to maintain a fair market value for all public real estate”, said Michael.
Michel said the Louisiana Attorney General requires that all three of the following must be true for any disbursement or transfer of public funds or property to be legal:
1. It must serve a public purpose;
2. The property does not appear as a whole free of charge; And
3. It must be demonstrated that the public sector entity has a reasonable expectation to receive a benefit or value at least equal to the amount expended or transferred.
Michel says that using the apartment as a residence did not seem to meet any of these requirements.
“There was no written agreement at all regarding the use of this apartment, which we found particularly troubling as this is a valuable resource for the city,” Michel said.
A spokesman for the mayor sent WDSU this statement that the city does not own the apartment and therefore will not comment on whether or not to give it up:
“The Office of the Inspector General’s report yielded no significant findings and only reiterated our position that the most recent franchise agreement did not contain any rules as to how the unit should be used. Furthermore, since this apartment was and is always owned by the French Market Corporation, it would be inappropriate for the City of New Orleans to take a specific position on how it intends to operate its facility.”
WDSU has contacted the Mayor’s Office regarding the city’s ownership of the property.
WDSU also asked if the mayor would let her nominating committee know if they would follow the OIG’s opinion.
The mayor’s office has not responded at the time of this publication.
Click here to read the full OIG report.
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