A new report by the Jefferson Parish Office of Inspector General says the Jefferson Parish Government should altogether abandon the Gretna Brew Pub project.
According to the report, Jefferson Redevelopment, Incorporated, "failed to establish fair and reasonable criteria for the lease, management, and occupancy for two commercial leasable spaces constructed with public dollars" and, "in concert with (Jefferson Facilities, Incorporated), selected a vendor without requiring sufficient details to support an informed selection." That, the OIG report says, means the public has "no assurance it will receive the highest value and optimal return on its $10.3 million."
The OGI also said the request for proposal for the project served as "a formality rather than a genuine effort to solicit competitive interests as determined by the outcome: Port Orleans (and Avo Taco) as the only proposer." The OIG report noted that the proposal incorporated architectural renderings featuring the Port Orleans and Avo Taco logos already affixed to the proposed buildings.
Lastly, the OIG stated that JFI's lease agreements with POB Gretna Beer, LLC, and POB Restaurant Gretna, LLC, "are materially deficient." That's because, the report says, the terms and conditions of the lease "are incompatible with those that may be executed in the private sector exposing both JFI and (Jefferson Parish) to unreasonable and incalculable long-term risks." The OIG sought the opinion of a commercial lease expert to determine of the lease agreement was in the parish's best interests.
The report notes that at-large council member Jennifer Van Vrancken agreed with all three findings, but that her response did not identify a timetable for corrective actions.
Interim District 1 council member Joe Marino did not specifically agree or disagree with the report, but he criticized the commercial lease expert's opinion as "flawed."
JFI and JRI agreed that the project "is not economically feasible as a private venture," but noted that the project "represents a strategically structured economic development public-private partnership." Their response also outlined amendments to the lease.
In a press release announcing the findings, Inspector General Kim Raines Chatelain minced no words when describing the deal.
“Jefferson Parish bypassed laws intended to prevent favoritism," Chatelain said. "Now, public funds are constructing commercial spaces which was steered toward one, preferred tenant, undermining transparency, fairness, and competitive process and subjecting public to materially deficient lease terms.”
To read the full report, click here. To read the commercial lease expert's analysis, click here.
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