Tax break bid wins support of second New Orleans group

Alan Sayre

Thursday, Sept. 21, 2000 | 2:06 a.m.

NEW ORLEANS - The bid of Harrah's New Orleans Casino to get a break from its $100 million minimum annual state tax won the backing Thursday of a second business group in the New Orleans region.

Following the lead of the New Orleans Regional Chamber of Commerce, which endorsed the cut last month, the Downtown Development District threw its support behind the cut.

On Tuesday, the casino's owner, JCC Holding Co., said it was unlikely the casino could continue operating beyond March 31, 2001, unless the Legislature reduced the tax.

So far, the idea has drawn a cool public reception from legislators and Gov. Mike Foster. Foster said he will not consider calling a special legislative session until there is a wide consensus on what to do.

A major stockholder in JCC Holding and the casino's manager, Harrah's Entertainment Inc., said it could not renew the current state-required tax guaranty beyond March 31 without a tax cut. Casino officials say the gambling hall, which employs about 3,000, cannot make the needed revenue to pay the $100 million tax.

Foster said he wants to wait on a city-state study panel that will look at the economics of the casino. The current deadline would not allow the issue to be handled during next year's regular legislative session.

Casino officials have not said specifically whether they will seek other relief, such as allowing Harrah's to have its own hotel and unlimited food service. However, JCC Holding president Fred Burford said the casino has been talking with hotel and restaurant groups.

In its resolution, the DDD said tax relief would make Harrah's competitive with other casinos and keep the casino "as an employer, taxpayer and business partner in the City of New Orleans."

Funded by property taxes, the DDD was created by the Legislature in 1974 and concerns itself with a 106-block area of the city. It provides enhanced services, including police protection, and promotes economic projects.