A public-private partnership, the Joint Development Committee will have "exclusive oversight" over the Federal City in Algiers.
A committee created to mend a years-old rift between two groups that have clashed over control of the Federal City in Algiers has been ratified and became active this month. But the Joint Development Committee, as it is called, is not yet fully operating because it still lacks members.
The Marine Corps Support Facility New Orleans, center, is viewed as the anchor for the Federal City project in Algiers. A Joint Development Committee is in place now to oversee Federal City.
Four of the seven members have been appointed to the committee, which will oversee the ongoing conversion of the former Naval Support Activity into a mixed-use campus anchored by the Marine Corps Support Facility, the 29-acre military compound at Opelousas and Hendee streets.
The committee is a public-private partnership representing the Algiers Development District board and the nonprofit New Orleans Federal Alliance. They have clashed in recent years over over control of Federal City, considered one of Louisiana's top economic development projects. It has been funded primarily with $150 million through bonds and Louisiana Economic Development's "Mega Fund," money that has yielded the facility that is home to the Marine Forces Reserve and Marine Forces North commands.
The committee, which became active Dec. 1, will be funded by revenue that Federal City generates, such as through leases. It represents the middle ground in the dispute that has threatened to derail future development, primarily the state's attempts to lure a proposed Marine Corps information technology command to Federal City.
Appointments coming
New Orleans City Councilwoman Kristin Palmer and state Rep. Jeff Arnold are the Algiers Development District appointees. Palmer was selected this month to serve as the committee's interim chairwoman.
The New Orleans Federal Alliance has appointed two of its board members: Norma Grace, the retired University of New Orleans vice chancellor for technology and economic development; and Bob Farnsworth, the National World War II Museum's senior vice president for capital programs.
Mayor Mitch Landrieu appoints the alliance's third member to the committee, and GNO Inc. also will appoint a member.
The Algiers Development District board also has another appointment, which will be made in January, said Arnold, who chairs the Algiers board.
He said his group wants its third appointee to have expertise in a project such as Federal City, rather than elected officials - the Algiers board comprises elected officials or their appointees.
The Algiers board gets three appointments, because the board will provide funding to the committee, Arnold said. The Algiers board will still be able to override committee action, if the Algiers board "feels it is not in the best interest of Algiers or the project," Arnold said.
"Exclusive oversight"
Based on the cooperative endeavor agreement both sides signed Oct. 10, the Algiers board appears to be gaining broader authority over the project. However, the board stands to own the Algiers acreage outright, should the Navy give up the land.
Under the cooperative endeavor agreement, the Joint Development Committee has first dibs at any revenue Federal City produces, ahead of the alliance.
The committee has "exclusive oversight and authority" over the project, including determining how state "Mega Fund" money will be spent, according to the cooperative endeavor agreement. The committee will follow state opening meeting laws, meaning the public is allowed to observe its business.
The Algiers Development District board will provide the committee with funding and meeting space.
The agreement means the Algiers Development District board will eventually own Federal City improvements currently owned by the New Orleans Federal Alliance. That includes the Federal City Auditorium and the parking garage and retail center after the seven-year life of new market tax credits expire, according to the agreement.
The Algiers Development District board also will have say over covenants spelled out in the Federal City master plan.
Alliance loses members
Meanwhile, the alliance, a nonprofit created in 2004 specifically to oversee the Federal City, recently saw the resignation of its chairman, businessman Bill Ryan. Grace has replaced Ryan as the alliance's chairman.
Ryan, a former Marine Corps officer and decorated Vietnam War veteran, is the point man in the group the city selected to redevelop the Naval Support Activity's east bank campus in the Bywater neighborhood - a position some saw as a conflict with his volunteer role at Federal City and one that led to his resignation from the alliance.
Ryan said Thursday he committed to the alliance and the city that he would sever ties to the alliance once its cooperative endeavor agreement with the Algiers board was signed.
His departure marks the alliance's second loss this year. New Orleans Councilwoman-at-large Jackie Clarkson resigned in August. She said her position in the alliance conflicted with her role as the City Council's budget committee chairwoman, which has oversight for the Algiers Development District board's budget and activities.
Still unclear is the role retired Marine Corps Maj. Gen. David Mize will play in Federal City. Mize, who led the state and city's charge to stop the Navy from closing the Algiers base, leading to Federal City's becoming a reality, is the alliance's president.
But Mize also is the only alliance member who is paid for his work on Federal City, and his position is not spelled out in the cooperative endeavor agreement. Also, the New Orleans Federal Alliance reportedly will be unable to pay Mize's salary, and the Algiers board has not been inclined to do so in the past.