A judge has ruled that a controversial Brewpub project in Gretna is unconstitutional.
According to Jefferson Parish Inspector General Kim Chatelain, a judge ruled in favor of Jefferson Facilities Inc., finding the leases between the nonprofit and Port Orleans Brewing Co. as null and void.
It is unclear what this means for nearly completed project.
The multi-million-dollar project was backed by roughly $10.3 million in parish taxpayer funds and was nearly finished.
The project, constructed next to Gretna City Hall, was intended to house a brewery, restaurant, and parking garage.
Chatelain has repeatedly raised concerns surrounding the project, questioning the transparency of the project and whether a parish-created nonprofit may have put its tax-exempt status in jeopardy.
Jefferson Facilities, Inc. is a nonprofit economic development corporation authorized by the Parish Council to oversee the project.
Months ago, Chatelain published a report warning that if the lease moved forward, JFI could lose its tax-exempt status due to collecting percentage-based income tied to food, alcohol and gaming revenue.
Chatelain says federal tax guidance provides that where commercial activity becomes more than incidental, or where private benefit outweighs the public benefit served, its tax-exempt status may be challenged or revoked.
Chatelain also raised concerns that JFI’s board members may be subject to disclosure and suitability requirements under Louisiana Alcoholic Beverage Control laws and Louisiana Gaming Control laws.
Chatelain said JFI made no formal request for a legal opinion on whether lease terms would adversely impact their tax-exempt status and that JFI made no formal request for a legal opinion regarding whether lease terms would expose JFI board members to regulatory oversight.
Chatelain issued the following statement regarding the ruling:
“Six lawyers spent four and a half hours in court today arguing an issue the Office of Inspector General first raised exactly two years ago: whether these leases constituted a prohibited donation of public assets. Rather than addressing the substance of those concerns, the OIG was attacked for raising them. Today’s ruling underscores an important principle: legitimate concerns about the use of public assets warrant serious consideration, not scorn.”
Councilman Tim Kerner Jr. issued the following statement reacting to the ruling:
“Today’s ruling is about much more than an agreement or a legal decision. It is about the responsibility we have to the people who place their trust in us.
“When I ran for Jefferson Parish Council, I made a promise to serve with fairness, integrity, and always with the public’s best interest at heart. Raising concerns about this agreement was part of keeping that promise. Today’s ruling affirms that those concerns were well founded.
“I take no joy in the circumstances that brought us here. I simply wish doing what is right for the people of Jefferson Parish had not required such a difficult fight. My hope is that we can now move forward together, with respect for everyone involved, a commitment to the law, and a shared responsibility to protect the public’s investment.
“This was never about being right. It was about doing what is right. And that is a responsibility I will never take lightly.”
READ MORE:Judge rules controversial Gretna Brewpub lease is unconstitutional
