New Orleans tax study panel, after deadline, doesn’t have members

Wednesday, Sept. 13, 2000 | 4:22 a.m.

The panel, announced in late July as a group that would prepare an independent evaluation of the casino's financial situation, had been expected to issue a report this past Monday.

"Several of the appointees that had been chosen had conflicts," said Christine Gallatig, a spokeswoman for Mayor Marc Morial. "I'm not sure when we'll be ready."

The casino is mounting a lobbying effort to rally support for a reduction of its $100 million-a-year minimum state tax and restrictions on hotel and restaurant service. Casino executives say the gambling hall's future is in question, along with its 3,000 jobs.

Morial has not taken a stand on the tax break.

Gov. Mike Foster was invited to name two members and gave the task to Commissioner of Administration Mark Drennen and State Treasurer John Kennedy. They are still awaiting word of a first meeting.

"I have not been invited to a meeting, and I assume a meeting hasn't been held yet," Kennedy said.

Many people the mayor wanted to appoint had formed ties with the casino during their careers, Gallatig said. Bank presidents said their banks had handled portions of the casino's financing. University professors had conducted studies for the casino. Many attorneys were involved in the casino's 1995 bankruptcy filing, while the long list of creditors knocked many businessmen out of the running, Gallatig said.

Longtime casino opponent C.B. Forgotston said the study panel is a sham.

"There's 400,000 people in this city. I find it hard to believe that there's not someone who's not on Harrah's payroll," Forgotston said.

Ultimately, the decision on a tax break and the lifting of hotel-restaurant restrictions will rest with the Legislature.

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