In a city celebrated for its vibrant streets and historic charm, the Old Canal Street Hotel stands as an unwelcome contrast, a stark representation of urban decay. This once-promising property, located prominently at the corner of Claiborne and Canal Street, has unfortunately earned a spot on the infamous “Dirty Dozen” list of blighted structures in New Orleans.
The hotel, officially under the ownership of Governor House of New Orleans L.L.C., an entity linked to local developer Joe Jaeger, has been plagued by a long history of complaints and consistent code enforcement violations. Since 2019, city records reveal a total of $7,800 in fines, coupled with $300 in hearing costs, levied against the property. These penalties stem from a range of issues, painting a grim picture of neglect: sanitation deficiencies, rodent infestations, pervasive graffiti, and a significantly damaged roof.
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Thomas Mulligan of Code Enforcement emphasizes the detrimental impact of such blight on the city’s reputation, especially given the hotel’s location. “It’s really the gateway to our downtown, so tourists are going to see it. People passing through New Orleans are going to see it, and it really gives an inaccurate and an unfortunate impression of the downtown,” Mulligan stated, highlighting the visual blight impacting the crucial Canal Street corridor.
The future of the Old Canal Street Hotel hangs precariously as the city actively pursues a demolition order to address the escalating disrepair. Mulligan acknowledges potential legal challenges from the owner but expresses confidence in the city’s legal standing. “We have an owner who has the resources to tie up a demolition in court for a little while, but we’re confident that we’re on the right side of the law,” he commented.
Zach Smith, former Director of the Department of Safety & Permits, points to the economic realities that property investors often face when dealing with large commercial buildings in New Orleans. He notes the complex and costly permitting processes and the significant financial burden of proper maintenance. “When are we going to say that a building just is too far gone? We see a lot of well-intentioned people come take the reins of property and they can’t make it work because it’s too damn expensive to renovate,” Smith explained, suggesting that in some cases, the scale of disrepair becomes insurmountable. He further emphasized the negative impact on the surrounding community and the city’s preservation efforts, stating, “The building is laughing in the face of neighbors, neighborhoods and the city that people are protecting for historic preservation.”
Despite numerous requests for an on-camera interview, Joe Jaeger’s attorney issued a statement indicating that the Canal Street hotel is currently for sale and being actively marketed to potential buyers.
However, skepticism surrounds the claim of active marketing. Real estate broker Ron Mazier proposes a different perspective, suggesting that some developers might intentionally delay property sales, anticipating future value increases that outweigh current penalties. “They’re banking on that appreciation to be more than the fines. So, it’s almost strategic blight. A strategic blight is when they hold onto the property knowing it’s going to go up in value and who cares about the fines? So, they have time to wait it out. And real estate is one of these things where it’s 3, 4, 5 years cycle,” Mazier elaborated, pointing to potential financial motivations behind the prolonged neglect.
The Downtown Development District remains focused on the Canal Street area, recognizing its prime location and the ongoing development of the nearby medical corridor. The dilapidated condition of the Old Canal Street Hotel, however, presents a significant challenge to the revitalization efforts in this vital New Orleans thoroughfare.
