The city of New Orleans' financial crisis has nearly drained its fund balance, the money it keeps in reserve so the city has cash on hand for emergency expenditures.
With hurricane season approaching, Mayor Helena Moreno announced her solution Tuesday: getting an advance on the rent that Caesars New Orleans casino pays annually.
"We are working on a deal to sell the city's rights to the next nine years of rent payments at a discounted rate of 8.75 percent," she said.
In return, New Orleans would get $103 million up-front.
That does, of course, mean less money for the city in the long run.
"Roughly about $4.7 million less a year. I hate it, too," Moreno said, "but ultimately, we do need this huge amount of money coming in up-front to help us build our reserves."
Moreno said the city is negotiating with TPG, a Ft. Worth-based asset management corporation, for rights to Caesar's lease.
The plan, which needs New Orleans City Council approval, is set to go before the council next week.
