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Gov. Jeff Landry tried to appoint a business owner and major donor from Texas to chair the Ernest Morial Convention Center Oversight Board, but the New Orleans hotel industry exercised veto power.
Landry went on to appoint business owner Russell Allen to serve as an at-large member on the 13-member board.
But the governor has yet to accept other board positions picked by the Louisiana Restaurant Association, a move that some hospitality industry officials worry is an attempt to pressure the association to support Allen as chairman.
New Orleans hospitality leaders declined to make Allen chairman of the board because he had no background in the industry, said four people familiar with the matter who spoke on condition of anonymity.
Shane Guidry, a New Orleans business owner who co-chairs Landry’s transition team, said he recommended Allen to serve as board chairman.
“We have a new way of doing things,” said Guidry, who plays a key role in deciding who will serve on the state commissions that Landry controls.
The main purpose of the 40-year-old state-owned convention center is to attract tourists to the city to spend money at the hotel, which is mainly funded by a 3% hotel occupancy tax and other food and beverage taxes. Restaurants and other parts of the hospitality industry.
The Louisiana Secretary of State’s Office has no record of Allen registering to vote in the state, and public records show Allen has a long history of owning property and voting in Harris County, home to Houston.
But he has been a major contributor to Landry and other Republican candidates and causes.
The Houston-based K-Solv Group, controlled by Allen, donated $125,000 in 2022 and 2023 to support Landry’s campaign for governor. Allen, 55, is among a group of wealthy businessmen who have provided Landry with private jets in recent years, particularly during the 2023 gubernatorial campaign.
K-Solv is described on its LinkedIn page as “a leading provider of chemical distribution and marine services, as well as renewable fuels.” K-Solv’s subsidiary is Garner Environmental Services, which describes itself as “a Texas-based emergency response company” that handles disaster response. It is registered to do business in Louisiana.
Allen told People he had purchased an apartment at the Four Seasons Hotel New Orleans, but two attempts to contact him went unanswered.
River District Project
The Convention Center Board of Directors oversees the management of the facility and approves major contracts, among other official duties.
It also faces a series of major decisions regarding the River District, which is proposing a $1 billion development of nearly 50 acres of riverfront land near the upstream end of the convention center.
As expected, the project will create an entire community over the next decade or so, including new offices, residential units, entertainment venues and retail outlets.
The convention center board also oversees the Economic Development District, which was created to make key decisions on how to use new sales taxes collected within the river district.
decades of tradition
In trying to appoint Allen as president, Landry broke with a decades-long tradition of governors selecting hospitality industry leaders. The outgoing chairperson is elected by the then-Governor. John Bel Edwards is Jerry Reyes, General Manager of the Westin Canal Plaza Hotel.
Asked after Wednesday’s bill signing event in New Orleans why he wanted Allen to serve as chairman, Landry responded: “Listen, that guy moved to New Orleans. We all want to attract people to the state.”
When someone pointed out that Allen had no background in the hospitality industry, Landry said, “Let me ask you a question. How’s it going so far? If the city was in trouble, we wouldn’t have to deal with this.”
The governor then walked into the elevator and could not be asked any more questions.
Unable to appoint Allen, Landry instead appointed James Cook, the well-respected general manager of the New Orleans Sheraton Hotel.
Cook noted that his appointment is interim, pending confirmation by the state Senate.
“I am grateful for the opportunity to serve on such an important board for our community and industry,” Cook said. He said he was not involved in any discussions about Allen’s proposed appointment.
other members
In addition to Allen and Cook, Landry appointed five other board members. They are: Desi Vega, a restaurateur in New Orleans; James Capella, a bar and restaurant owner in New Orleans and Jefferson Parish; Edgar “Dook” Chase IV Chase IV), a New Orleans restaurateur; Jack Rizzuto, a New Orleans restaurateur and former Jefferson Parish Council member; Stephen Caputo, general manager of the Monteleone Hotel in New Orleans .
Guidry said he recommended Landry appoint Allen, Vega, Rizzuto and Capela because all would help move the state forward.
Landry has yet to fill three vacancies, including one reserved for candidates put forward by the Greater New Orleans Chapter of the Louisiana Restaurant Association.
Under convention center rules, the restaurant association provides three candidates, and the governor selects one to serve on the board.
Pending candidates proposed by the association include: Melvin Rodrigue, president of Galatovar Restaurants and former convention center board chairman, who hopes to remain on the board; Emery Whalen, executive with QED Restaurant Group in New Orleans Chairman and Owner; Octavio Mantilla is co-owner of BRG Hospitality, which owns restaurants in New Orleans.
Guidry said the Landry administration hasn’t had time to decide among the three.
The Greater New Orleans Hotel and Lodging Association also put forward three names, and the governor picked one to serve on the board, per convention center rules.
The mayor of New Orleans selected three board members. Two must come from names provided by the New Orleans and River Region Chamber of Commerce and New Orleans companies that promote tourism in the area. All terms are four years, ending in July.
The mayor’s current board members include Ralph Mahana, general manager of the Windsor Court Hotel; Geri Broussard Baloney, a lawyer; and Entergy executive David Ellis.
The governor’s choice for president must come from a list of six provided by the Restaurant and Lodging Association. Neither organization released Allen’s name.
Concerns about Landry’s behavior at the convention center come at a time when he is extremely powerful. Only two months after taking office, the new Governor successfully pushed the legislature to pass 20 anti-crime bills at the just-concluded special session.
Restaurant Association President and CEO Stan Harris did not respond to two requests for comment.
Mavis Early, executive director of the Restaurant and Lodging Association, praised the selections of Cook and Caputo but declined to comment on other appointments or the process.
Politicians believe Landry will try to get the Legislature to change convention center rules at its upcoming regular session to allow him to choose the president.
Staff reporters Jeff Adelson and Sam Karlin contributed to this article.
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