A plan to build a new Omni Hotel in New Orleans may have new life after the New Orleans Ernest N. Morial Convention Center approved a new funding plan to present to the Bond Commission.
According to a statement issued by Russ W. Allen, president of the Ernest N. Morial New Orleans Exhibition Hall Authority (Authority), and Jim Cook, president and CEO of the New Orleans Ernest N. Morial Convention Center, the authority has agreed to commit $120 million in funding from the convention center to the hotel project.
The convention center authority applied to the State Bond Commission for approval in September.
The State Bond Commission was set to vote on a financing package for the project last week, but the item was withdrawn before the meeting amid disagreement between state and local leaders about the project.
Funding for the project was all but stalled due to concerns about the funding.
Senate President Cameron Henry told WDSU he wants to make sure the financing package protects taxpayers and that the stakeholders involved are prepared to hold up the tax incentive guarantee to Omni.
Bond Commission approval is needed before construction on the hotel can begin.
The hotel is set to be built at the old Sugar Mill site across from the Morial Convention Center.
A full statement from Allen and Cook regarding the new proposal can be read below:
“The Authority approved a second amendment to the development agreement for the pivotal Omni Headquarters Hotel, authorizing the commitment of $120 million in funding from the Convention Center. The Authority has applied to the State Bond Commission for approval of these financial obligations in September. We will continue providing information and working with the staff and members of the State Bond Commission.
“This brings us another step closer to delivering a project that has been decades in the making. That progress reflects close collaboration with state leaders to find a model that balances the efficient use of tax dollars with the activation of new tax revenues and long-term employment opportunities. The ongoing engagement of the Governor, his administration and legislative leadership throughout this process has helped refine the financing of this critical investment to increase the competitiveness of our state’s tourism and convention industry. The return on this investment will deliver jobs, economic growth and additional entrepreneurial activity for generations. We also appreciate the support of the Mayor and Council on zoning and land use matters and continue to work with them through that process.”
READ MORE:New Orleans Ernest N. Morial Convention Center board agrees on new deal for Omni Hotel
