The window is closing on the timeline set by the New Orleans City Council for the owners of the Plaza Tower to sell or demolish the skyscraper, and city council leaders warn that the cash-strapped city will lose money if it's forced to tear down the derelict building.
"They are under a time constraint that we gave them of around 18 months to try and figure out how to get the financing done, and that clock is coming up pretty soon," council president J. P. Morrell said. "There certainly is a significant cost. The estimated cost to demo that building is $20 (million) to $30 million."
Morrell says if the 18-month deadline for the tower's owners to sell the tower or demolish it expires, the city will be on the hook to tear down the skyscraper. According to Morrell, if the building's owners can't afford to reimburse the city for the demolition, taxpayers would be stuck with a hefty bill.
"And that's going to be capital spend from the city that has to be spent to demo the building," Morrell said. "Even if we secure the plot of land from the Jaeger estate because they can't afford to reimburse us for the demo, that plot of land is not worth $20-30 million.
"If and when we demo it, and if this financing falls through, we're going to demo it at a loss--a pretty significant loss," Morrell added.
