NEW ORLEANS — Neither 1031 Canal Development nor the Kailas family has paid a dime to the city of New Orleans, despite claims from the company’s attorney, according to the Cantrell administration.
“As I checked last night, no bills have been paid currently,” Chief Administrative Gilbert Montano said Tuesday at the administration told the City Council that the collapse has cost the city at least $11.6 million dollars.
The figures were current as of December.
“The Kailas family, 1031 Canal, have been working extremely hard from day one throughout this process,” 1031 Canal Development attorney Kerry Miller told Newell Normand on WWL Radio last Monday as the company spoke publicly for the first time since the Oct. 12 collapse. “For example, they’ve paid out of pocket all the police and fire support that’s been done in connection with this site.”
The company contracted with the city for off-duty police protection at the Hard Rock site between Oct. 25 and Nov. 12, which carried a $70,000 price tag, according to city records.
But that bill has not yet been paid, Montano said.
“When you contract a service in October … your payment is due somewhere in between there, and it has not been provided between October and December,” he said.
Late Tuesday afternoon, 1031 Canal Development issued a statement that says it “has paid, and continues to pay, for security support at the site, along with fire watch protection for Saenger Theater events. Those payments have been made directly to the sheriff’s deputies and fire personnel working on site.”
But “Saenger Theatre events” are only those events, such as stage shows or concerts, that happen at the theater, not the ongoing, around-the-clock staffing of firefighters at the Hard Rock site.
Some of the biggest expenses on the growing $11.6 million tab for the Hard Rock site are damage. The city estimates it will cost $1.6 million to fix North Rampart Street, streetcar lines in the area and the Saenger Theatre’s roof. The RTA has lost nearly $4.8 million because of route changes and lost fares.
Firefighters being on scene around the clock costs $9,000 a day -- nearly $1 million so far.
“We are going to attempt and adamantly attempt to get every penny repaid,” Montano said.
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