WWL>Topics>>11-21 12:30pm Garland, New Orleans Bio District

11-21 12:30pm Garland, New Orleans Bio District

Nov 21, 2013|

Well "lo-and-behold"…we've done many a think tank shows asking—where’s the money coming for the huge hospital complex in downtown New Orleans. We've been assured over and over it's a done deal…try not to be negative. Now comes the revelation that the one of the complex's jewels--the Bio District--has not secured a reliable source of annual funding. Are you surprised? And, what now? Garland spoke to State Treasure, John Kennedy.

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Automatically Generated Transcript (may not be 100% accurate)

Welcome back. As usual in particular today. Talk about rather complicated subjects. We're we're thinking about you receive medical sooner but. More specifically the bayou district. MD and I have still appear with -- -- -- Moore who is chairman of the board of the bar district. And I was confused as to. I just envisioned by the district has been building. In the middle of that 15100 acres of university medical -- But apparently it's not it's it's an infantry and challenging film -- quite get this wrong. We're basically trying to attract. Other technologies. Bio. By companies to just -- and work with -- promote jobs and technology so effectively grow and the reason of on this so you're pursuing is what's McNamara's reviews -- Jim Jim. Jim MacNamara who is really headed up this project for years -- or aggravated with me every time I have him up here. There's always say OK some great show me the money and recently it's getting negative and always looking for them licenses. In this and I have university medical some repair which was primarily Children's Hospital which are things can be running at. And I asked them the same thing and they said basically. It's gonna be okay but this is morning. Two wrong things after -- their built. In John Kennedy joins me -- loose on them about the monies when it comes to. This could be users are state treasurer John welcome to show. You've gone. Out at home. Hello to all -- -- Ginger shall be enjoying it. Forgive me for repeating this but what I ask. Have you guys talked to the mayor. Certain. And had a million. You were being punted 700000. Plus at the time. The governor viewed coated new thought partisan recruits includes even north of district was apparently the mirror and made up. People who bird's owner. John do you think. The question that you raised for me two or three years ago. About these -- great projects and they should be done they have tremendous promise for this city. But nobody seems to know where the money is to run them you think part of it is just miscommunication. Not really. How we work on the paper about district is as we call this is pretty. -- extraordinary. Creation I mean it's. It's not just appeal it has this very unique bonding authority and more importantly -- has the authority to issue bonds -- story. Which is going to be a huge benefit in terms of beginning about medical businesses in the war ones as interest rates rat so that's a very valuable. Playing -- But they can't. Do any saying without reliable source of annual fun to go recruit to -- structures and recruit to so scientific -- -- why haven't they gotten money app I can't speak from from the -- pushed back to back can kill you. What I think from the state perspective to reason that -- district hasn't gotten money -- it more -- to be part of what the governor. Has always referred to as the -- medical -- it was about district it was the new hospital. And he charities which is the -- Having two reasons they haven't given them money. Is because we we don't have the deep projects that the state is gone. Or in the middle of doing it cost more than anticipated. Our number one. The cost of a new hospital. I think so like any other large construction project is likely to cost more than one point 11 point two billion it's hard to get information but it would. I'm predicted just -- you know for because that's what these pork projects all which were number two. They've got planned money to operate operating capital he can't just open the doors -- -- -- Number three the privatization which I have supported in still support. I think children is just up. Columbia wonderful park with the state but the fact is that the privatization. Effort has cost us. About 400 million dollars more than they watched it that when the governor rolled out he said that. The proper relations will only have to spend 626. Million dollars. And and that was compared with the 950 -- million that the state spending and I thank company and headed by a great deal -- cited money. Well not not too which turned out we're actually spin spending more and improvisation and we spent one mistake the front of the hospital. And I should step back. For Uighurs. Win and I have vote Jim McNamara crew -- to have the year that are currently represented there -- up. An -- Umenyiora great project and -- all which is bringing up where's I see the money to have formed the unit. I don't see the money to run the the capital hopefully couple weeks and and and he's always. Kind of got a little aggravated with me and said let's nothing negative let's get this thing -- Venue for university medical center John Kennedy -- -- treasure years ago. Who casually mentioned. It's good to great project reproduce it very closely but we don't see the money to broaden. Well. A couple of days ago the disorders begin to surface. That the bayou district. Doesn't head of the reliable source of annual fund. And we're gonna dream to more appear with the as soon as the chairman. Chairman of the board in the bayou district and John Kennedy's they treasure. And in June -- like what you and I talked about sounded like a lot of news communications not understanding. What the bayou district is in particular by the leaders the mayor the governor. And John Kennedy. You should go -- deeper than that we just don't have the money so far. What they -- chose not to spend the money. To -- -- the bottom line or it. Number one I think about -- to -- usually -- watching and it was something that was promised is part of the whole arrangement. Number two but what what did -- -- from almost big mistake respect the State's done is given them. It's like giving somebody the most expensive fishing rod in the world but not Vietnam War. Officially. We have set up but really expensive fishing rod has bonding authority tax exempt status. Ready to go. But without the money to actually operated its all for not. Did the governor's. Administration is not chosen to fund it. I'm not sure why I'm because he's talked about it repeatedly I'm saying I suspect that part of the region as. That the hospitals don't cost more than was originally planned and at this juncture. The privatization. Is costing about 400 million dollars more than was originally planned -- money gets tight and that may be. Why I don't know I haven't discussed within. I would like to see about district work. Actually to work and other places it has this huge marketing. Tool with the would -- be bonding authority in the tax exempt bonds -- But. Also read that did did the mayor would like the -- so I know it's very confusing but -- and it pork yes. Does it look like the money's going to be there it could be there they wanted it to but it doesn't look to me not -- But let me switch over university medical center at 400 million dollars more. Being spent improvisation. That we intend to do -- Children's Hospital tremendous organization. -- they they seem to be funded and everything they do. Have been -- seen indications that they have. The funding for capital expenditures. No that doesn't mean they do they tell. But I haven't seen any indication it's very hard to get. To getting information. I don't know that. When the privatization. Of all the cancer hospitals was announced. About this time last year the prediction was that they would all we would have to take 626. Million dollars to the product companies. And acting like a great deal to me because we were spending under 65 million to run the hospitals ourselves. Charmed -- would not say 300 million. But. The budget. Is not 646. Million we're gonna expand this year closely one point one billion. So that's obviously about 40500. Million dollars -- And we column -- slave. 400 million and now we're gonna -- an expert ponder or maybe 200 million and that obviously impacts the whole scenario. -- you -- you hear anything that gives you hope that the bio difference gonna get the sounds like the mirrors going in different correction in -- -- thing that just no money at this point. Well I'm certainly don't like it just me and I'm saying they can make some money. I -- no indication that they're going to. -- and ethnic. Totally understand. With. You had said. John about base is no money. But also in -- effect that in some cases there's concern about holding back on expenditures like this because of the costs going up. I do they'll still have a very positive feeling about about district. I mean I think for one thing as you mentioned with the bonding authority. We've tried to use that but unfortunately we've come up with projects. That were not supported because with felt that they were not. Totally consistent with the -- about district but my feeling is those products are still out there we've talked to some major file size companies that are innocent community the world's. And it's a matter of time before I think we're able to use of bonding authority and I think that also now we are we have a development agreement with the New Orleans business alliance. To work with them to try to form closer collaboration coordination sharing resources. I think what we do that. The the possibilities. For using up on his authority will increase greatly. I also think that it's a matter of time as you know of course we've been a recession and an hour just coming out of that end. As we come out of that I think the options again possibilities for -- initial revenue or are going to be there. Stan and I and I look -- thank you for your hard work -- -- not I hope this works. I'm just saying that it gets from point. I'm speaking for the sake -- not for you we've talked of L very eloquently don't mind about the vision and what it could be and what it's going to be. But you know it did at some point taxpayers -- and I don't blame them we hear the talk about children's -- -- Gotten. Joan Lynn complicated so big still not rectified or decided. Love to have your back on that later they've -- W John thank you so much for the call is all --

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