The Shreveport City Council will be asked at its next meeting on March 25 to approve a proposed lease to Curtis "50" Jackson. The lease is similar to the lease of Millennium Studios to Jackson.
On paper, the lease does have significant advantages to the City of Shreveport. Currently, the city is paying all the utilities, insurance and maintenance (which should be de minimis after a $4.5 million renovation) on the building known as Expo Hall or Stageworks of Louisiana.
The buildout on the building for a traveling sports venue was botched by SPAR or someone at City Hall. A secret, not released to the public, consultant's report paid for by the tourist bureau reveals that the city's renovation was defective for its intended use. Thus, more money plus contracting a managing agent will be needed if the original goals are to be accomplished.
So, the city, which owns too many buildings, basically has a white elephant in a prime location on the riverfront. It's unfortunate the building was never offered--or if it was, no interest expressed--to Sam's Town Casino which is directly across the street or to Bally's which is a block south.
Jackson's assumption of utilities, insurance and maintenance will provide some economic relief to the city. Additionally, SPAR will be able to maintain its offices in the building for a small payment of operating costs.
Control of Expo Hall may enhance utilization and investment return for the empty downtown block behind the building which Jackson purchased and used for his big entertainment tent during the Humor & Harmony festival. And in theory, this additional entertainment venue may fuel the development of the decrepit buildings Jackson purchased in that vicinity and maybe the other buildings he owns on Texas Street and the empty dirt lot on Spring Street.
The lease terms are very generous to Jackson. He can tie up this building for a total of 45 years on the terms set above with no escalation of the $200 per month rental.
The only requirements for utilization of the building have no real teeth.
The lease can be terminated by the City if no events are scheduled and held in any 180 consecutive day interval. One of the listed events that qualify to satisfy this requirement is "general business meetings." Thus, Jackson's local real estate broker and growth advisor could have coffee in the lobby and discuss the weather and sports as they conduct a business meeting. Such a meeting which would undeniably have an economic benefit assuming they did not bring coffee from home.
Major concerns of critics of the proposed lease have legs.
No renovation has taken place at any of the downtown buildings purchased by Jackson. Presumably state and parish ad valorem taxes have been paid and the entrance to one building has been secured. The only economic benefit to the city of these purchases to date was for the building owners and the realtors involved.
Secondly there has been no performance of the Millennium lease in terms of film production, job training, etc. Many reasons/excuses have been floated by City Hall and Jackson's camp. However, that fact is a reality that clouds Jackson follow up on promised activities at the studios as well as those for Expo Hall.
Lastly, there has been no proven economic benefit of the Humor & Harmony Festival that outweighed the costs to the City for many support activities for the festival. Thus, all the hoopla about economic benefit and promises of a pot of gold at the end of the yellow brick road are indeed questionable.
Mayor Arceneaux is admittedly in a tough spot.
He gave Jackson a key to the City which provided good pr and adulation from the African American community. Saying no to further dealings with Jackson would be very detrimental to his strained relationship with the African American council members, or at least three of them, as well as the African American community at large. As we all know, in today's world here in Shreveport, too many decisions are heavily influenced, if not decided, by skin color rather than economic practicality.