In New Orleans, where the charm of historic streets often meets the reality of urban decay, the Old Canal Street Hotel stands as a prominent example of neglect. Situated at the high-profile corner of Claiborne and Canal Street, this property, instead of being a welcoming beacon for visitors seeking Hotels Close To Canal Street In New Orleans, has become a symbol of urban blight. It has notably been included in the city’s “Dirty Dozen” list of blighted structures.
Owned by Governor House of New Orleans L.L.C., linked to developer Joe Jaeger, the hotel has accumulated a history of complaints and code violations. City records indicate fines and hearing costs totaling $8,100 since 2019. These penalties stem from a range of issues, from unsanitary conditions and rodent infestations to graffiti and a damaged roof, painting a grim picture for a building in such a visible location near Canal Street hotels.
According to Thomas Mulligan from Code Enforcement, such blight significantly harms the city’s image. He emphasized the location’s importance, stating, “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,”. This is particularly concerning given Canal Street’s role as a central hub for tourism and its proximity to numerous hotels.
The future of the Old Canal Street Hotel is uncertain as the city contemplates a demolition order to address the extensive disrepair. Mulligan acknowledged potential legal challenges from the owner but expressed confidence in the city’s legal position. “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 stated.
Zach Smith, former Director of Safety & Permits, pointed out the financial hurdles and lengthy processes often faced by investors in maintaining large commercial buildings. He questioned the point at which a building becomes beyond saving, noting the struggles of well-intentioned investors facing prohibitive renovation costs. “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 commented. He further highlighted the building’s negative impact on the surrounding community and the city’s preservation efforts.
In response to inquiries, Jaeger’s attorney stated that the property is currently for sale and actively being marketed. However, this claim is met with skepticism from real estate broker Ron Mazier. Mazier suggested a possible strategy of “strategic blight,” where developers might delay sales to capitalize on anticipated property value increases, potentially outweighing the cost of fines. “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 explained.
Despite the issues with the blighted hotel, the Downtown Development District remains focused on the Canal Street area. They recognize the prime location’s potential, especially with the development of the new medical corridor. This area holds significant promise for future growth and development, and addressing blight is crucial to fully realizing the potential of Canal Street as a desirable destination, including for those seeking hotels close to Canal Street in New Orleans. The juxtaposition of the neglected Old Canal Street Hotel and the surrounding development highlights both the challenges and opportunities present in this important New Orleans district.
