Author: Christiaan Mader

On the charter fix, the vote split along the city-parish line

To put it bluntly, to win, Fix the Charter needed the city to show up, and it did. City precincts edged the parish and saw bigger margins of victory.

Continue 4 min read
0 Comment(s)

Council is figuring out its new superpower on tax exemptions. That gives economic developers the jitters.

The gist: The City-Parish Council rejected two property tax exemptions Tuesday night, including one for Stuller Inc. That racks up four defeats since local agencies gained a say in a state tax incentive program that economic developers believe is an essential tool for business recruitment and retention.

Continue 1 min read

Stuller sought roughly $100,000 in property tax abatement over 10 years, through the state’s Industrial Tax Exemption Program. The jewelry manufacturer’s application claimed a $1.7 million investment in its manufacturing operations that would add six jobs to its existing local workforce of around 1,200. A council skeleton crew of five, exercising the relatively new power to approve ITEP applications, voted unanimously to reject Stuller’s application and that of Advanced Products and Systems, a Scott-based manufacturer in front of the council for the second time this year.

Hating incentive programs is all the rage. See what I did there? (I’ll show myself out.) Portions of the right and left seem to agree on this issue. Progressives say it’s corporate welfare. Free-market purists say it’s unfair. See the hubbub over Amazon’s HQ2. Or conservative Councilman William Theriot’s axiom, “We should take some from some and exempt others.”

Growing resentment on either flank could pressure politicians, locally and nationally, to halt or rein in incentive programs. Consider that the last four ITEP applications to come before the council were rejected. 

"We need to come together on a better approach,"  LEDA CEO Gregg Gothreaux tells me. "This situation is very difficult. It reflects my worst fears when the rules were changed."

For decades, ITEP was a rubber stamp. Until 2016, that is, when Gov. John Bel Edwards reformed the program by executive order, requiring applicants to show some job growth and empowering local taxing bodies to approve the exemptions. Critics of ITEP argue the state was wheeling and dealing with local money. Together Louisiana, an advocacy group organized to fight ITEP, claims the program exempted $4.9 billion in property taxes for companies statewide in 2016.

$3.7 million. That’s the total amount of exemptions Stuller has claimed through the program over the last 10 years, according to The Advertiser. Tax Assessor Conrad Comeaux said Tuesday night that the actual amount is lower, given the program accounts for depreciation.

$17 million. That’s Stuller’s property tax bill over the last 10 years, according to Comeaux. Coming up short of an endorsement, the assessor defended the program in remarks to the council, noting that $33 million in parish tax revenue is “lost” to the homestead exemption each year, versus around $2.5 million annually to ITEP.

$89 million. That’s the local household income produced by Stuller’s payroll, according to Stuller CIO Michael DeHart.

The council’s vote sends a message. Depending on which side of the spectrum you’re on, it’s a good or bad one. Some fear the vote will have a chilling effect on business recruitment down the line. That problem, they say, is exacerbated so long as companies don’t know what the rules of the road are in Lafayette Parish. Others believe it's high time the program was stopped. 

We have to provide a level of certainty to companies so they know the financial implications of their investments in our area,” says Jim Bourgeois, One Acadiana’s executive vice president for economic development.

Some parishes have adopted a uniform approach, according to Councilman Bruce Conque, who voted against the Stuller and APC exemptions. Conque says he believes ITEP should be used to recruit new businesses rather than expand existing ones.

Conque said Tuesday night that there lacks a “coordination of efforts” among the local taxing authorities that now have a seat at the ITEP table — LCG, the Lafayette Parish School Board and the Lafayette Parish Sheriff’s Office. Conque tells me Sheriff Mark Garber was unaware of his authority on ITEP as recently as early this year.

“None of the governing bodies have any specific guidelines by which people who want to apply for an exemption can know the rules,” Conque says. “It’s a gamble.”  

Lagniappe. Should Saturday’s proposition to create separate city and parish councils succeed, ITEP applicants could be denied by either the city or the parish council.

0 Comment(s)

On the charter amendments’ final stretch, all eyes on undecideds

The gist: The current mayor is against the proposal to create separate city and parish councils, in its current form. Former mayors support the effort. So does former LUS Director Terry Huval and even Youngsville Mayor Ken Ritter. The lines are drawn, but a lot of people still don’t know what to think about the proposition. Undecideds are in the driver’s seat ahead of Saturday’s election.

Continue 1 min read

Twenty percent of voters are undecided. That’s according to a scientific poll conducted by pro-amendment Fix the Charter PAC. Organizer Kevin Blanchard says the group’s message plays well in the parish, but the swath of unswayed voters keeps the election up in the air. “I like our chances,” he tells me.

This week former mayors Dud Lastrapes and Joey Durel penned a letter supporting the amendments. Read it here. Durel has been an active supporter of the campaign for some time. Lastrapes is one of the last mayors of Lafayette before consolidation. The campaign has gained institutional support where previous attempts at substantial changes to local government had not. Fix the Charter has raised about $60,000 to date, with TV and radio ad buys airing this week. In 2011, an effort to end consolidation failed miserably, with virtually all spending activated in support of the status quo.

Opponents say the proposal smacks of corruption, will raise taxes and will cede too much of the city to liberals. That’s the mixed bag of complaints circulated by Facebook page Lafayette Citizens Against Taxes and its fellow travelers. The page says the amendments were drafted too swiftly and in the dark, giving rise to suspicion of ulterior motives.

LCAT posts have stoked suspicion that the amendment campaign is really for the benefit of development company Southern Lifestyle Development, given the company employs several figures in Fix the Charter PAC. Most recently, the group has claimed split councils would pave the way for Drag Queen Story Time, a tangent to the debate aimed at the heart LCAT's base.  The page and its companion organization Citizens for a New Louisiana are the only public opposition to materialize, outside the mayor-president.

After months of silence, Robideaux has begun fighting the amendments. The mayor-president penned an op-ed on Friday to make his case against the proposition. Robideaux had yet to weigh in on the topic, even as he was probed for his opinion by council members back in August. Recently, he had privately told amendment supporters that he would withhold public comment. The flip irritated some of his erstwhile allies.

"I was disappointed and surprised that the mayor took a stance after he told me he wasn't [going to take a public position]," says Herb Schilling, owner of Schilling Distributing Company. Schilling was one of Robideaux’s biggest supporters in his 2015 campaign. The Northside businessman has backed the charter amendments, circulating a letter to Upper Lafayette addresses.

Robideaux’s op-ed argues the configuration of proposed council districts strips too much power from the city over parish money for drainage and roads, and that the parallel councils are headed for deadlock without a “mechanism” for resolving conflict. Robideaux has since taken to Facebook to sound alarms that the parish council makeup — only two of the seats would come from majority city of Lafayette districts — will make future charter amendments difficult to achieve.

“Any future efforts to change or improve the charter to help the City of Lafayette would be much more difficult, if not impossible,” Robideaux writes. He also created a hashtag. #LetsGetItRight. Because that’s what you do now.

It’s unclear if Robideaux, badly damaged in reputation from the LUS/Bernhard affair, has much clout. There’s even some anecdotal evidence that Robideaux’s opposition has driven some undecideds to support the proposition.

Fix the Charter rebutted Robideaux’s op-ed on Friday, calling the mayor-president’s concerns “penny-wise but pound-foolish.” The way supporters see it, gaining sole control of the city’s substantially larger resources is more important than control over the parish budget. To wit, in the current budget, the city has financed $72 million in capital improvements, including $42 million in roads, all by its lonesome.

Meanwhile, the parish is selling garages to make ends meet. As to the mechanism for resolving conflict, Fix the Charter President Carlee Alm-LaBar says that’s the mayor-president’s job.

“Citizens outside the city of Lafayette are equally as frustrated,” says Youngsville Mayor Ken Ritter, chalking up dysfunction in parish government to bad leadership. Ritter fundamentally supports the idea that the city of Lafayette should have its own council, like Youngsville. “In looking at it from the vantage point of someone in a city that has a five person council and mayor, I know how effective we’ve been,” he tells my colleague Leslie Turk.

What we’re watching on Saturday: The geographic breakdown, win or lose. Conventional wisdom has it that parish voters hold all the cards, although the 2011 deconsolidation vote got clocked in city districts too. This time around, city voters could be moved by the inclusion of an amendment to shield LUS from management contracts like what Bernhard Capital Partners proposed to public uproar. Retired LUS Director Terry Huval has supported the effort with a “protect LUS” message. On the parish side, Fix the Charter’s Blanchard says parish voters are receptive to the message that a dedicated council would improve accountability on parishwide issues. We’ll tag this election #TooCloseToCall.

0 Comment(s)

Crypteaux could weather the crypto winter

The gist: If you read the tech blogs, there’s been a big crunch on the crypto market. After a bonkers 2017, the SEC has become a major buzzkill, signaling intent to sheriff the crypto wild west. That could actually make LCG’s crypteaux concept more attractive.

Continue 1 min read

I don’t understand anything you just said. That’s OK. The broad strokes are that Mayor-President Joel Robideaux announced this year that he wants Lafayette to launch a digital currency as an alternative means of public finance. Last year there was a gold rush on the stuff, particularly around Bitcoin, with cryptocurrencies netting billions in profits for investors. There’s been something of a correction in the sector this year, capped off by a ruling by the SEC that initial coin offerings – called ICOs — should register with the federal government and be regulated like any other type of security. Observers have suggested that the developments frosted over what was once the hottest place for investment.

Ok, I understand it marginally better. Good deal. So here’s the thing, lots of people tried to cash in on the cryptocraze. There are digital currencies that support journalism, others that pay cam girls. In Ohio, you can pay your taxes with Bitcoin. The sector attracted a lot of criminal actors and folks that plain didn’t know what they were doing. In a recent talk, Crypteaux architect Joe Castille — perhaps better known as a political consultant, and the ghostwriter of Brian Pope’s demise — characterized the world of crypto entrepreneurship as one lousy with naifs waving white-papers. There’s an argument to be made that the SEC’s ruling will clear out the riff raff like a brushfire, leaving only vetted concepts to thrive in a healthier crypto ecosystem.

Keep in mind that municipal securities are exempt from SEC registration. At least that’s what Investopedia tells me. So while it’s tempting to fear the SEC’s rules on ICOs as a valve closing, in theory a municipally backed ICO could squirt through the regulatory gaps. “Different laws apply,” Castille tells me.

What’s the latest on crypteaux? That’s unclear at this point. Robideaux set up a public innovation trust earlier this year — and put himself on it — but the board has yet to meet. The parishwide trust is a possible vehicle for funds raised in a municipal ICO. LCG recently paid IBM and mega-consultant KPMG $150,000 for developing a Smart City road map that suggests crypteaux and e-residency, concepts championed and researched by Castille, are worth exploring. Castille and his new company, Crypto Research LLC, studies the application of cryptocurrencies and blockchain — a whole other enchilada —in the public sector as a means of addressing budget problems in tax-averse communities. Sound familiar?

Is this crazy? Not necessarily. But it’s a thorny space and one likely to be a tough sell for your average voter. Just because the SEC’s recent crackdown doesn’t necessarily apply to crypteaux doesn’t make the path forward clear.

0 Comment(s)

How do the voting odds stack up for the council split?

The gist: The charter amendment proposition is at the mercy of a low-turnout election that features a pair of taxes and a lackluster secretary of state race. Organized and adequately funded advocacy for the change could squeak out a win where full deconsolidation failed. 

Continue 1 min read

Last time deconsolidation was on the ballot, it got clobbered. Before you pitchfork me, Charter Fixers, I understand this isn’t exactly deconsolidation. But it’s the best analog available to set a basis for comparison.

That was October 2011, a big state and local ballot year. Turnout was fine, by relative standards, with 34 percent of registered Lafayette Parish voters participating. The results were predictable. Bobby Jindal took home 71 percent of the local vote. State Rep. Joel Robideaux coasted to re-election with a 58-point margin in the parish. Voters rejected a $561 million bond proposition from the school board by a wide margin. And they said “nah,” 63 percent to 37 percent, to a full-stop dissolution of consolidated government following a one-sided race in favor of the status quo.  

Turnout is expected to be low. And that could favor the charter amendment, says UL Lafayette political science prof Pearson Cross. “I think it would at least give them a chance,” he says. Cross says voters tend to resist change, and they didn’t go for the last major attempt at restructuring local government. Around 2,000 early ballots had been cast as of Wednesday afternoon, reflecting a slower rate than October's vote. Cross says he could see voter participation of less than 20 percent.

This is a different proposition with different dynamics. Deconsolidation faced an uphill battle. True PAC, a political action committee founded to fight the effort, raised around $30,000 and garnered support from big names in local politics. Don Bacqué, a former state rep and charter commission member, formed True PAC. He now backs the charter amendment and has lent his voice to Fix the Charter PAC, the campaign supporting the split. That’s a major dynamic flip. Fix the Charter has raised around $40,000 for this effort and will hit the streets this week with mailers and an upbeat ground game.

Original charter framers support the change. Five members of the nine-person charter commission that proposed consolidation in the early 1990s have signed on in support of split council amendment, arguing in a statement that the charter, as LCG's constitution, was always intended to be honed. 

"The proposed amendments to the charter improve on our original vision," the statement reads. "While there is no perfect proposal, these amendments are a step in the right direction." 

Ed Abell, James Jackson, Jean Kreamer, Paul Colomb and Alan D. Hebert are signatories to the endorsement. 

Opposition is scattered. That doesn’t mean it won’t be effective. Activist conservatives aligned with Citizens for a New Louisiana/Lafayette Citizens Against Taxes oppose the proposition. Michael Lunsford, executive director of Citizens for a New Louisiana, says the groups will be sending mailers, targeting issues on the Dec. 8 ballot — “That’s what we do,” he tells me — but didn’t specify whether the campaign would single the charter amendment out. LCAT, the Facebook portal for Citizens founded by Lunsford and others, has hammered the proposition as a “non-fix” cooked up to raise taxes.

LCAT's opposition has taken a wide berth. At one time, the page posted speculation that the proposition could be a Trojan Horse built to sell LUS. Former LUS Director Terry Huval has since endorsed the charter split as a way of protecting LUS. Most recently, LCAT suggested that several key figures in the Fix the Charter movement — former LCG Public Works Director Kevin Blanchard, former Planning Director Carlee Alm-LaBar,  former city-parish attorney Stuart Breaux and Councilman Jay Castille — are pushing the split for the benefit of their employer, Southern Lifestyle Development. Voiced as a question, the innuendo falls short of a direct, baseless claim (none of the parties are named). 

Regardless of truth or variety, the scattershot opposition could nevertheless be effective. It does fall short of a concerted, well-financed campaign, however. 

“I haven’t seen real mobilization against it,” says Cross of the charter amendment opposition in general. “It could be that they’re banking on people not going for the last one.”  

A city fix that’s up to the parish? That’s how I’ve generally read it. It’s part of the perversion of consolidation: city residents will have their government determined by people who don’t live there.

But consider this: The 2011 deconsolidation vote, which would have delivered full autonomy to the city of Lafayette, arguably died in the city. While parish voters overwhelmingly opposed it, the deconsolidation campaign failed to deliver large portions of the city.

Fix the Charter's success may depend on winning the debate within city limits. 

Disclosure: Southern Lifestyle Development has advertised in The Current. 

0 Comment(s)

After major revisions to old federal courthouse contract, council coming around ahead of final vote

The gist: The old federal courthouse renovation project appeared doomed last month after council members pounced on purchase provisions that placed the risk of cost overruns on Lafayette Consolidated Government. But new changes to the contract now make the deal an outright $1.4 million sale that requires the development team to pay for sewer upgrades and removing asbestos.

Continue 1 min read

A game changer: That’s how Councilman Bruce Conque describes the revision. The original deal put the $1.4 million purchase price in escrow, with excessive expenses for the project to be paid from that pool of money. In October, Conque and other council members shredded the contract at introduction, fuming that the deal put too much power in the developer’s hands and gave approval of overages to the mayor-president rather than the council. In particular, the deal would take the unusual step of saddling city-parish government with the cost of sewer upgrades needed to accommodate the 68-unit, 25,000-square-foot complex. Developers, in most cases, pay some of the upfront costs for utilities. Downtown and the city’s urban core more broadly are virtually out of sewer capacity.

Kenneth Boudreaux, a perennial no vote on previous attempts to put the city-owned Downtown property back into commerce after years of blight and vacancy, complained that all proceeds from the sale should be “profit.”

The revised purchase agreement appears to hit all major concerns levied thus far:  The sale is a lump sum transaction that requires the development team to pay for peripheral infrastructure needs. 

“I’m thrilled,” says Conque. “This benefits everyone, and this project can now move forward.

It’s not quite over. Conque and Jay Castille, another staunch opponent of previous redevelopment attempts, will propose two other amendments to the contract, one to prevent the developer from sitting on the project by eating penalty fees against rising costs, and another to require that the facility’s appearance conform to the city’s Unified Development Code. The previous version gave the mayor-president approval of the complex’s facade.

Earlier this year, Mayor-President Joel Robideaux unilaterally selected the team behind the project, led by developer Jim Poche, architect David Weinstein and Ed Krampe, a personal friend of Robideaux's. 

Counting chickens: No vote is final before it’s cast, but early indications place the support count at eight. One of the assumed no votes, Boudreaux, will not be at Tuesday’s meeting after announcing health complications associated with a cancer diagnosis earlier this week. With a majority reportedly on board, approval of the contract would be a significant win for Mayor-President Joel Robideaux after months in the doghouse over his pursuit of a deal to privatize management of LUS.

0 Comment(s)

LPUA will take up lowering LUS rates

The gist: Utility rates were hiked in the last two years to pay for rising operating costs and a $240 million bond package that never came to be. On Tuesday, Councilman Kenneth Boudreaux will present a pair of ordinances, one to reduce electric, water and wastewater rates and another to reclaim the revenues for a bond sale.

Continue 1 min read

NextGEN Utility Systems put a spotlight on the rates by promising to lower them for three years. In council discussions over the course of the affair, council members Kenneth Boudreaux and Bruce Conque questioned whether the rates could be lowered, given the bonds were never issued. The idea is that the rates were raised unnecessarily, and thus some value ought to be returned to LUS customers.

Conque says he would support reductions on electric rates only.

Why were rates raised in the first place? In 2016, LUS sought — and received — approval to apply for $240 million in bonds to build a new power generating plant and other pricey capital improvements. Rates were raised 8 percent to finance the debt, but the LPUA, hearing pushback on plans for the new power plant, decided on a phase-in compromise and reduced the authorized amount to $70 million in February 2018. Mayor-President Joel Robideaux has said that event prompted him to reignite talks with Bernhard Capital Partners/NextGEN Utility Systems, despite that discussions had begun in 2016 and never stopped. In April, Robideaux pulled the bond request from the state bond commission agenda the day it was set to be heard, effectively orphaning the rate increase.

Boudreaux says the money ought to finance bonds, given that was the principle justification for raising it.

“We’re in essence taxing ratepayers,” Boudreaux tells me.

OK. Give me my money back. Hold on to your receipt, ratepayer. It’s more complicated than that. LUS interim Director Jeff Stewart says that while plans for the generating plant were shelved, the system needed the funds to rightsize revenue for the water and wastewater systems, and to finance about $100 million in other capital improvements:

  • $48 million in electric system upgrades, including LED streetlights ($7M) and a new substation ($14M)
  • $41 million in wastewater, including expansion of a sewer plant ($26M)
  • $6.5 million in water system projects

These projects were included in the February resolution authorizing LUS to sell bonds. LUS faces flatlining electric revenue growth as customers use less energy and will spend millions to upgrade sewer capacity in Lafayette’s urban core and on an EPA mandated,10-year review and repair of the rest of its wastewater system. Stewart tells me reducing the rates is possible but requires a thorough review.

“The opportunity may exist, but we haven’t fully evaluated those options yet,” he says.  

What to watch for: How else the NextGEN affair impacts decision-making around LUS. If there’s a silver lining in the acrimony that erupted over the privatization scheme, it’s that LUS has taken center stage in civic conversation. Major changes are already in play. LUS is set to cleave off Fiber, and both systems will need new directors. NextGEN’s proposal introduced into the public lexicon plenty of new concepts around energy and raised awareness about the disruptions LUS faces going forward.

0 Comment(s)

IBM and top government consultant draft smart city roadmap for Lafayette

The gist: Big Blue and mega-consultant firm KPMG outlined a comprehensive smart city action plan for LCG over the past year, developing concepts like digital payments for public services and smart traffic sensors for more efficient traffic control.

Continue 1 min read

Smart cities are what again? It’s a catchall term for the use of innovation to make government more efficient and transparent. More often than not, it’s associated with advances in automation, data and the internet of things (IoT). Concepts can be as cutting edge as AV transit and as boring as fiber-connected traffic counters.

Around 70 initiatives were identified, according to LCG spokeswoman Cydra Wingerter, over the course of the past year. Wingerter shared a sampling of the results, which were discussed in part at a soft reveal during LCG’s PlanLafayette week in October:

  • Smart Fire Alarms deployed parishwide and connected via LUS Fiber to improve Lafayette Fire Department response times.
  • Digital Payment Network to accept remote credit card payments and platforms like Venmo and PayPal for public services.
  • Digital 311 to improve public service requests and provide real time data and collect public feedback.
  • Smart Traffic Improvements like predictive analytics, adaptive traffic controls to carve paths for emergency response vehicles and updated sensors for traffic volume. The I-49 Connector got a mention, too.
  • Disaster Preparedness Plan includes a companion mobile app for notification and e-learning modules for flood and hurricane prep education. This piggybacks on the city’s Bloomberg Challenge application. Lafayette was a finalist for the challenge but came up short.

I’ve asked for the full list of projects and a copy of the contract with IBM/KPMG, but have received no response from the administration.

Where do Cryptocurrency and Blockchain fit in? You probably aren’t asking this question, but you should. At the Opportunity Machine’s innovation conference in October, Crypteaux architect and Robideaux adviser Joe Castille mentioned that IBM/KPMG validated his public innovation ecosystem concept. There’s a lot to unpack here, but the broad strokes include funding public projects through yields from a cryptocurrency launch — Castille used the I-49 Connector as an example — and establishing an e-residency program to attract blockchain entrepreneurs, an idea that’s worked well in Estonia. Yes, Estonia.

Innovation is a key priority for the Robideaux administration. A Lafayette-based team pitched a freight hyperloop corridor among other transportation concepts at a major conference in Columbus, Ohio, and placed in the competition. Robideaux and mayoral assistant Kate Durio took part.

What to watch for: Whether Robideaux has the political capital after the LUS controversy to get anywhere with his ideas, particularly those that require the council to sign off. Robideaux recognized the challenge in remarks at that conference in Ohio:

So you can have this vision of all these really great things, but when you sit down with your council members and say, "We need to spend money on a smart city initiative," and let's just say it's $1 million. They're going to come back and say, "How about you spend it digging out that ditch that's in this neighborhood that's flooded three times?" That's the reality that we face.

Joel Robideaux,
via Smart Cities Dive

0 Comment(s)

Council/administration fault line grows wider after property tax failure

Council members and the administration are at odds on how to fix the parish budget.

Continue 5 min read
1 Comment(s)

NextGEN withdraws proposal hours ahead of big council votes

The decision was made “in response” to the ongoing discussions of the company’s proposal and the “importance” of the city’s decision whether to accept it.

Continue 4 min read
0 Comment(s)

Crucial council votes could quicken or prolong a resolution to the LUS private management affair 

The gist: Depending on a pair of council votes next week, NextGEN Utility Systems could walk away from Lafayette or find itself in a potentially lengthy open competition for the right to run LUS.

Continue 1 min read

NextGEN could ride on to the next town pending the result of a City-Parish Council resolution, authored by Councilman William Theriot, officially opposing “for now” the sale, lease or private management of LUS. While non-binding, the resolution would signal to NextGEN — and any other interested party, for that matter — that the current council isn’t interested in monetizing LUS. NextGEN Managing Director Jeff Baudier, a former Cleco executive who joined NextGEN in April of this year, says the firm is spending too much money to face the futility of a dead deal (Jim Bernhard told the council the company had already spent $1 million), should the council resolve to oppose private management.

“We can’t keep beating our head against the wall,” Baudier tells me. Despite mostly negative press, he says, the firm has received interest from beleaguered and indebted cities across the Southeast, where the company hopes to one day operate 50 utilities.

Meanwhile, NextGEN could face other bidders if Councilman Kenneth Boudreaux’s resolution calling for a request for proposals succeeds by vote of the LPUA next week. And those bidders, Baudier points out, would have a look at all of NextGEN’s cards.

“Now our competition can come in and copy our structure,” Baudier tells me, noting that the company’s public proposal and presentations expose NextGEN’s pricing. NextGEN, by way of parent private equity firm Bernhard Capital Partners, has been in talks with the Robideaux administration since at least late 2016. Robideaux signed a non-disclosure agreement with BCP in April 2017 and supplied the company with LUS financial and operational information before the group’s formal due diligence study began in April 2018. Baudier says an NDA is a normal course of business for the firm.

Should the conversation continue? That’s the question at the heart of both resolutions. There’s virtually universal recognition now that NextGEN’s proposal is tainted by an early lack of transparency. Even Robideaux called for a reset and admitted that his unilateral approach was a “misstep.” But some argue that the administration’s failure to disclose the talks shouldn’t derail an important conversation about the future of LUS. Boudreaux believes the RFP process conducted by LUS’s contracted consultant — confusingly, NewGen Strategies and Solutions — can air it all out.

“I’m convinced this is going to give us the best snapshot of LUS we’ve ever had,” Boudreaux tells me. “But the process doesn’t guarantee anything happening … and this is at someone else’s cost, by the way.”

An RFP could be long and painful. Boudreaux pegged the end of January 2019 as the deadline for LCG to arrange its part of the RFP, a process that could be tricky in and of itself. Some estimate a fully vetted bidding process could take 18 months, lingering this issue into next year’s elections. Meanwhile, per a resolution passed earlier this month, LUS would remain without a permanent director until the private management pursuit is exhausted. That means progress at a crucial inflection point for LUS would remain stalled.

What to watch for. Whether and how NextGEN wins enough favor to get a second act. Early indications would stack the odds against the company. Both resolutions will be considered on Nov. 5, but Theriot’s outright opposition measure is the trump card; the full council will take it up after Boudreaux’s RFP proposal is heard at the LPUA, which meets before Monday’s council meeting. (Ordinarily on Tuesdays, the council meeting was rescheduled to accommodate Election Day.) NextGEN has a short window to show there’s enough public support for considering its bid. To that end, Baudier will hit the airwaves in the next few days. Conventional wisdom holds that the public is by and large opposed to the deal, but Baudier pushes back on that sentiment.

“There is no way that 160,000 residents know about every part of this deal,” he says.

Where’s the vision? NextGEN’s offer puts $324 million in financing on the table for use by a tax-averse community. Baudier says the firm’s management concept is commonplace internationally as a means of raising money without raising taxes. Communities tend to get behind these deals, he offers, when they see an identified use for the cash windfall. Lafayette has yet to put an idea forward, potentially tamping down enthusiasm. He says it’s not NextGEN’s role to provide one.

Speaking of votes. Baudier reaffirmed to me that the firm has no intention of structuring a deal to avoid a public vote.

0 Comment(s)

An over-simplified guide to the 2018 constitutional amendments

If PAR’s too lengthy and haiku’s too short, this guide’s for you.

Continue 5 min read
0 Comment(s)
Plus-Mark