6 Flags redevelopment committee narrows field

NEW ORLEANS (AP) — A committee studying the redevelopment of the former Six Flag theme park in eastern New Orleans finds an upscale outlet mall is the only project still under consideration.

On Monday, the committee rejected a plan to reopen the site as a theme park.

The Times-Picayune reports (http://bit.ly/wd0eJG ) the joint venture of Provident Realty Advisors and DAG Development, which has proposed building Jazzland Outlet Mall at the abandoned site, will be present its plan next month.

The city of New Orleans has controlled the shuttered property since December 2009, when a Delaware court presiding over the bankruptcy of Six Flags Inc. agreed to allow the theme park operator to terminate its lease in exchange for cash payments to the city. Six Flags did not reopen the storm-marred park after Hurricane Katrina.

Committee members were more confident in Provident's ability to close the outlet mall deal. Provident and DAG have proposed a 400,000-square-foot, $40 million outlet mall and boardwalk entertainment district to include some adapted use of the theme park elements already in place at the site. Future phases of that plan propose a big-box retailer, amphitheater, sports field, water park and hotel.

Provident has built similar retail malls across the country.

"I feel like I have seen enough from them to know that we are offering something the public will respond to," said Deputy Mayor and Chief of Staff Judy Reese Morse, who also is a committee member.

But, the outlet mall is far from a done deal. If the city ultimately decides to move forward with Provident and DAG, it would basically be agreeing to allow the company to conduct due diligence for a period of six months to one year. Although the joint venture would pick up the tab for any preconstruction work done in that period, the city would forgo the opportunity to allow anyone else to develop the site during that time, at the conclusion of which Provident and DAG could walk away if they determine an outlet mall would not work on the site.

Deputy Mayor and committee member Cedric Grant also restated his long-standing concern that the outlet mall proposal will require a significant contribution from the city that may include a tax increment financing, or TIF, agreement and other incentives. Grant said he needed greater assurance that the developer would have "skin in the game" and asked the committee to push them for a specific dollar amount for their planned investment.

"We still need to see their money. In this instance, I would feel much better about it if they tell us the cost they are ready to put up," Grant said. "There's no question these are people experienced with doing development. But they are probably accustomed to using other people's money."

___

Information from: The Times-Picayune, http://www.nola.com