$41,000: that's how much money the city of New Orleans could add to its coffers every year if it rented out the Pontalba Apartment currently used to host dignitaries.
That apartment has been at the center of controversy because Mayor LaToya Cantrell has used the public property for private use, which, according to New Orleans Inspector General Ed Michel, violates the Louisiana Constitution and the city's home rule charter.
"This could also be a possible grant of compensation for which the city may need to make payroll deductions," Michel said, adding that documents prove that the city owns the apartment, contrary to statements previously made by Mayor Cantrell. "Obviously, there are no written rules in place regarding to the use of the apartments, and we are waiting for the city's response."
Michel says the city has an obligation to be a good steward of the limited resources it has.
"This is a valuable resource that the city has," Michel said. "The apartment can be rented for about $2,900 a month, which could generate about $36,000 a year for the city. In addition to the $36,000 that the city could gain by renting the apartment just like the other 49 apartments at the Pontalba, the city is also paying about $5,000 a year in utilities for the apartment. So we're talking about $41,000 every year in perpetuity going forward. That's a significant amount of money."
Michel added that even when used for public purposes, the apartment may cost the city more money than it needs to spend.
"It's much more cost efficient to utilize a space at, say, a local hotel and pay one or two or three nights for a visiting dignitary, and I'm certain that the visiting dignitaries have not been that frequent here, which would justify vacant use of this apartment and voiding the city of honoring its commitment to obtaining fair market value for publicly-owned property."
