Convention Center to consider millions in tax breaks for new ‘headquarters hotel’

By Jasmine Robinson

Contributing Writer

(Veritenews.org) – Officials with the Ernest N. Morial Convention Center are considering tax incentives for its new $600 million headquarters hotel that could be worth millions of dollars over the next 45 years.

Most consequential among proposed tax breaks is an anticipated payment-in-lieu-of-taxes deal, or a PILOT, for the incoming Omni Hotel. Commissioners deferred a vote of approval of the tax incentive at a meeting for the hotel taxing district on Wednesday, March 25.

A PILOT would free the hotel from paying regular property taxes – instead, it’d make annual payments at a fraction of what would be paid out in taxes over a period of time.

The PILOT would last 45 years, according to Convention Center officials in a statement to Verite News on last month. But the estimated value of the tax break is not yet clear. The hotel’s annual tax savings would depend on the building’s assessed value, for which Convention Center officials said they could not provide an estimate. 

“We do not know how the assessor would assess a hotel that has not been built, nor do we know how the assessor will value the peer group hotels in 2030,” the year the hotel is expected to open, said Convention Center president and CEO Jim Cook through a spokesperson.

Present at the meeting were members of UNITE HERE Local 23, a union representing hospitality workers. Kamille McCuin, a cocktail server and union member, expressed concern for a potential PILOT. She said the city should prioritize addressing infrastructure needs and helping residents who are facing rising costs.

“Why are we talking about more subsidies for a luxury hotel developer? Our neighborhoods, our communities [and] our working people need a break, not Omni,” McCuin said during a public comment.

City Council approval is needed to authorize the PILOT deal. If Omni is granted the PILOT it would join Shell as another district project to receive the tax break. Shell’s new regional headquarters is the only River District project that has broken ground.

In 2023, the City Council approved a 15-year PILOT deal for the proposed Shell office building, but not without pushback and subsequent controversy. The council questioned the legality of their vote fearing that it was taken  before the completion of a legally required review period, but state Attorney General Liz Murrill said that the vote was legal.

Officials are also considering other  tax incentives for the Omni hotel project. Within the hotel subdistrict, state sales taxes of 4.75 percent and hotel occupancy taxes of 0.75 percent would be rebated to the hotel for a period of 45 years. This would take effect with the authorization of a cooperative endeavor agreement, which needs state approval.

Since the site lies within a special economic development district created for the Convention Center, state law also allows the public board governing that district to levy an additional two percent in sales and hotel taxes within the Omni’s footprint, which would be used to further subsidize the headquarters hotel.

A December report by the Bureau of Governmental Research estimated that the net value of those tax rebates – accounting for rent the hotel would pay the Convention Center for use of the land – would be about $669 million over the 45-year life of the deal. The group suggested shortening the tax breaks to 20 years as one way to reduce the cost of the hotel to the public. According to the report, an Omni official said it has never before been offered such a long tax incentive period, adding that it usually receives tax breaks that last between 20 and 25 years.

Affordable housing

Other development plans for land around the New Orleans Convention Center are advancing.

River District Neighborhood Investors are moving forward with financing affordable housing in the district. The Rivana apartment complex is promised to deliver 900 housing units, with half set aside for affordable housing. The first phase will create 220 units, 165 of which will be affordable and workforce housing.

The $98 million project has been submitted for permits, according to RDNI developer Shawn Barney. As for financing, he said the developers have secured $37 million in equity investments, along with construction financing from Capital One and commitments from the convention center and city of about $6 million each. Developers plan to close on financing by July 30. A previous deadline was set for March 31 in a CEA.

On Wednesday of last week, RDNI got approval from RDNI subdistrict members for a PILOT deal for the Rivana apartments. The PILOT will now enter a review period with the city Office of Economic Development, with a City Council review to follow. The PILOT payment would be no more than $98,000 and the deal would last as long as the complex’s affordability covenant is in place.

“That is just the nature of the beast. Affordable housing does require that investment. But we think that it is useful and helpful in that it just freezes the baseline of taxes,” Barney said.

This comes after RDNI, a team of developers working to build up the River District, reportedly nearly lost operating control over significant portions of the riverfront acreage in November. Reports at the time suggested that Convention Center officials had doubts that RDNI could meet financial obligations.

A new cultural experience

Also considered   was the Louisiana Music and Heritage Experience, a proposed museum dedicated to showcasing the history of Louisiana music. The concept was previously attached to the River District plans, but the parcel is now under control of the Convention Center.

Commissioners granted approval to the Convention Center’s letter of intent with the Louisiana Music and Heritage Experience development team and approval to enter the museum into a lease.

Per the letter of intent, the museum’s developers have until July 1, 2027 to fully fund the project, which Cook said is an estimated $165 million. The lease is not binding until the project is funded in full. Last July, the museum had already secured $28.5 million in state capital outlay funding and $18 million in private donations.

Until then, the Convention Center can’t bring other tenants onto the property. The Louisiana Music and Heritage Experience is planned for a parcel at Henderson Street and Convention Center Boulevard, just across from the Convention Center.

But Russel Allen, president of the Convention Center’s governing board, said officials are still exploring other options for the property. And there’s a chance the museum could be moved to a neighboring parcel.

“We’re going to be passing a lot of these LOI’s as these lots come open. This is going to probably be a monthly occurrence when new opportunities are brought to us,” Allen said.

This article originally published in the April 6, 2026 print edition of The Louisiana Weekly newspaper.