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Wednesday, March 27
Updated: March 28, 7:55 PM ET
 
Proposed bill would use $17M to upgrade arena

Associated Press

BATON ROUGE, La. -- Almost $17 million in state construction money would be used to upgrade the New Orleans arena for a pro basketball team and build an indoor practice field for the New Orleans Saints under a bill approved by a House panel Wednesday.

Adding suites and locker rooms to the arena, the proposed home for the NBA's Hornets if their move from Charlotte is approved by the league, will cost $10 million.

Providing the Saints with a practice facility will cost $6.75 million, under the bill, which amends the current state construction budget.

A 15-2 vote by the House Appropriations Committee sent the bill to the full House for debate, which could occur next week.

Rep. Warren Triche, D-Thibodaux, voiced strong objections, saying the bill represents a break in state officials' pledge to accommodate the pro sports franchises only with money raised in the New Orleans area.

"All this talk about `Oh we're going to raise this through city funds,' all this malarkey and phony baloney goes out the window," Triche said.

Rep. Ed Murray, D-New Orleans, said the state owns the arena and would own the proposed practice facility, arguing that there should be no objection to spending state construction money on state-owned facilities. Other, non-construction financial incentives for the teams are to be funded by the New Orleans area hotel tax.

Wednesday's vote came a day after development of an apparent House-Senate rift over another key piece of Louisiana Gov. Mike Foster's package to keep the Saints and lure the Hornets.

House and Senate committees approved differing versions of a bill that would provide part of the money promised to the NFL and NBA sports franchises.

Saints officials said only the bill approved unanimously by the House Committee on Ways and Means ensured Louisiana would enable the state to keep its monetary promises to the NFL team. Gov. Mike Foster worked out a $186.5 million package with the Saints that lasts through 2010. A Senate committee's separate version of the bill endangers funding for the agreement, they said.

"We want to make sure there is sufficient funding to honor the contract," said Arnold Fielkow, Saints director of administration.

For either version of the bill to become law, it must be passed by a majority of the House and the Senate. Floor action on either bill is not expected until next week at the earliest.

The bills start with the same premise. They each rededicate 1 percent of a New Orleans area hotel-motel tax that is estimated to generate between $7 million and $8 million. That money currently goes into a fund that New Orleans area lawmakers divvy up to make grants for pet projects -- often called a slush fund by critics.

The House and Senate measures each divert $2 million from that fund to expand the New Orleans convention center and millions more to a newly created New Orleans Sports Franchise Fund. It would fill in the blanks for whatever money the state promised the Saints and Hornets that hasn't been found through other means.

For example, in the state's package with the Saints, Louisiana must pay $12.5 million in the first year. Much of that will come from reimbursed rent for the Superdome, remarketing suites and getting a share of concession sales. Whatever portion is left unpaid would come from the rededicated hotel tax money.

The disagreement centers on what would happen if the fund keeps growing. A bill by Sen. Diana Bajoie, D-New Orleans, caps the amount the Saints and Hornets can receive at $5 million. Any money beyond that goes back to the legislators' fund.

The Senate Committee on Local and Municipal Affairs, chaired by Bajoie, unanimously approved the bill Tuesday afternoon.

Fielkow reminded Senate committee members that the state's package for the Saints increases in cost -- to $15 million in 2003, $20 million in 2006 and $23.5 million in 2008. Without the growth money, it's unclear if the state will have enough other New Orleans area sources to tap for the money, he said.

Bajoie said she doubted the penny would generate as much money as Fielkow and some legislators predict.

"There's only so much you're going to get out of this one penny," Bajoie said.

Bajoie said she's willing to work on her bill, and she said the New Orleans legislative delegation was looking at other means of coming up with money for the Saints and Hornets.

Bajoie's bill also would set aside up to $1 million of the rededicated hotel tax to a proposed motorsports speedway project in eastern New Orleans if the Saints and Hornets don't use their whole $5 million.

The House committee also voted unanimously for a bill to increase the New Orleans area hotel-motel tax and a food and beverage tax in the city to pay for convention center construction. Alcohol lobbyists opposed the bill.




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