NEW ORLEANS, La. — The New Orleans City Council on Thursday approved a long-term tax arrangement for the planned Omni New Orleans, clearing one of the last local hurdles for the $625 million convention headquarters hotel.
Instead of a regular property tax bill, the Dallas-based developers will make yearly payments to the city under a 45-year payment in lieu of taxes deal. Those payments are pegged to the per-room taxes paid at five large downtown hotels already open.
Council Vice President Matthew Willard sponsored the measure and called it an economic win. By his count, building the hotel would support some 2,500 jobs, with about 1,400 people working there for the long haul once it opens. Deputy Mayor Jeff Schwartz told a council committee last week the hotel would bring in $8 million a year in local taxes, including $5 million for the city and more than $1 million for the Orleans Parish School Board.
The 27-story tower is planned with 1,006 rooms and about 100,000 square feet of meeting space, directly opposite the Ernest N. Morial Convention Center. It would be the first hotel of 1,000 rooms or more built in the city in over 40 years. Developers have also promised restaurants, a parking garage and work on Mississippi River Heritage Park.
Not everyone is on board. Some residents have pushed back over the financing, housing costs and traffic. The Bureau of Governmental Research, a nonprofit watchdog, has urged the city to cap such breaks at 20 years and phase toward full taxes over that time.
Site work is already underway on the former Sugar Mill property, and construction could begin before year’s end. The Convention Center still needs state Bond Commission approval for its financing, and the partners are aiming to open in 2030.
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