Talks between the Robideaux administration and Bernhard Capital Partners over the potential purchase of Lafayette Utilities System have been ongoing since at least the beginning of the year.
Robideaux administration considering sale of LUS’s electric division Mayor in ongoing discussions with private equity firm to purchase or manage the division
Lafayette needs less uncertainty from local government not more. But that’s not the direction we’re going.
The gist: A major real estate developer has reportedly moved to purchase the Less Pay Motel and the adjacent former Coca-Cola building, together comprising a whole block of the beleaguered Four Corners area.
What we know: Two separately owned properties are under contract for an undisclosed redevelopment project: the Less Pay Motel at 120 N. University Ave. and the former Coca-Cola bottling facility at 1506 Cameron St. Representatives of both properties have confirmed independently that the buildings are pending sale, but would not disclose terms or the buyer.
UPDATE: A public notice for a $15 million artist loft development called Bottle Art Lofts, located at the bottling facility, links HRI Properties, a New Orleans-based development outfit with extensive experience in historic rehabilitation, to the sale of that property. The development would include 40 units with a "leasing preference" for artists and would be primarily financed with the equity sale of low income housing tax credits. State records list HRI's New Orleans address for Lafayette Bottle Art Lofts, LLC, the company issuing the public notice.
HRI also submitted qualifications to redevelop the old federal courthouse, a project that was ultimately awarded to a team helmed by Jim Poché of Southwest Group.
It's unclear if HRI is also the buyer of the Less Pay Motel.
“A number of things we have wanted to see are coming to fruition,” says Greg Dugan, who has owned the Coca-Cola facility with his wife, Stephanie Cornay Dugan, since 2001. The Dugans currently use the building for fabrication and storage for their company ASCO Window Coverings, located a few blocks away in the La Place neighborhood. Dugan declined to comment further but says more information on the deal will be available by early next week.
Dewitt “Zeen” David of NAI Latter & Blum confirms that a sale is pending on the Less Pay property but also declined further comment, citing a confidentiality agreement. David is the listing agent for the Less Pay Motel, which is owned by M&L International LLC, according to Louisiana secretary of state records.
Why this matters: The Less Pay Motel has been an albatross of sorts for Four Corners, a historic intersection that once was a bustling city center. Plans for redevelopment of the site, which at one time envisioned a police precinct under former Mayor Joey Durel, have faltered over the last decade. Mayor Joel Robideaux quashed Durel’s plan upon taking office, saying he preferred to see the property moved into private commerce. A successful redevelopment could be transformative for Four Corners and the University Avenue corridor. Robideaux has made University Avenue a signature development project for his administration, although Dugan notes that he and his wife have been working to redevelop the Coca Cola building since before the Robideaux administration’s initiative began. Dugan says he believes they've found the right buyer to realize a revitalizing vision for the neighborhood.
"We’d be very enthusiastic to see that site moved in commerce," says Robideaux.
Additional reporting by Leslie Turk
More and more brewers are choosing to take the microbrewery route, avoiding the pricey startup costs and permitting minefields that plague conventional production breweries. Starting this fall, Sawbriar Brewery will bring the microbrewery concept to Lafayette. The focus is craft, not production.
No project is perhaps more emblematic of the morass Downtown has been in than the old federal courthouse. Yet, a project of this magnitude is exactly what we need to catalyze development.
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The acquisition opens the door to better employment benefits for iLandMan’s 21 full-time employees, who will retain their jobs in Lafayette.
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While headlines have focused on the creation of 400 jobs, there’s a lot more to unpack about the benefits to Lafayette’s digital economy.
As a result of Waitr’s hard work and pluck, our community now has all the ingredients needed to power an explosion of growth in our digital economy.
The gist: The news broke this week that app-based food delivery service Waitr was acquired by a Texas billionaire in a $308 million deal that will take the company public. CEO Chris Meaux says the company intends to expand operations in Louisiana and will continue to call Lafayette and Lake Charles home.
Meaux tells The Current..."We're committed to Lake Charles and Lafayette; that's where the bulk of our employee base is from a corporate perspective. We're committed to Louisiana. This is gonna remain our home and that was an important factor in this deal." Waitr's management staff will remain the same, with Meaux continuing to serve as CEO. He also will be the newly public company's board chairman.
You can breathe now: In the immediate wake of the acquisition, it wasn’t particularly clear where Waitr would end up. It's now owned by Texas billionaire Tillman Fertitta, the CEO of seafood restaurant chain Landry's. Fertitta also owns the Golden Nugget Casino in Lake Charles.
Waitr is a major success story for Acadiana and Lake Charles. Losing its growing payroll and employment would have been a huge blow for a down and out Lafayette economy. Waitr employs between 400 and 500 people in Acadiana, including drivers, and accounts for roughly $25 million in annual payroll in Louisiana, according to a rough estimate from Meaux.
What to watch for: The acquisition will accelerate Waitr’s growth rapidly. Before the deal, Waitr was projected to double its revenue next year to $250 million. Capital infusion of this scale will put Waitr in the driver’s seat nationally in the app-based food delivery space in secondary markets. Meaux says the company will add three or four new cities to its portfolio per month and begin buying up smaller competitors. The company will continue to emphasize small and mid-size cities in its growth and marketing strategy. Meaux refers to Waitr as a "small town company."
Locally, Meaux says the company is expanding beyond its offices at The Daily Advertiser building on Bertrand Drive. One possible landing spot is the Lemoine building Downtown. Meaux indicates the company is close to deciding on a site, but would not disclose where it would end up. Meaux says the company will continue to hire more software engineers, customer service reps and restaurant support staff going forward. Lafayette is Waitr's software engineering hub.
Much of our GDP has been lost to an industry that seems unlikely to ever fully recover. And none of our industries are on pace to have the kind of billion-dollar growth our economy needs to get back on track.