Depot deal rescinded: City considers other options for project

Published 12:48 am Wednesday, September 28, 2016

 

NATCHEZ — The Natchez Board of Aldermen voted unanimously Tuesday to rescind a lease agreement with a New Orleans hotelier to develop the historic railroad depot on Broadway Street.

The recommendation to rescind the agreement came from Mayor Darryl Grennell, who said he and City Attorney Robert “Bob” Latham met Tuesday afternoon with New Orleans Hotel Consultants President Warren Reuther and his attorney and former city attorney Walter Brown.

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The city and Reuther, Grennell said, are in agreement that the best course of action would be to rescind the agreement, which former Mayor Butch Brown cast a tie-breaking vote to approve in November 2015.

Grennell’s recommendation included the city proceeding with the development of the depot by issuing a request for proposals, which would include compensation for the money Reuther has spent so far on renovations, or the city taking over the renovation project and repaying the money Reuther has spent.

Reuther has previously said he has spent approximately $80,000 on renovating the depot.

The aldermen did not discuss openly Tuesday specifically rescinding the lease agreement. Discussions likely took place prior to the regular meeting when the aldermen met in executive session for more than an hour for a handful of reasons, including “potential litigation regarding the depot.”

The motion to rescind the agreement was made by Ward 1 Alderwoman Joyce Arceneaux-Mathis, in whose ward the depot is located. Arceneaux-Mathis voted previously to award the lease to Reuther.

Prior to the vote, Arceneaux-Mathis thanked Reuther, who was present in the audience, for coming forward at a time when the city could not afford to renovate the depot after having bid the project three times and presenting a plan to do so.

“I just want to thank Mr. Reuther for having come forward, placed a proposal, brought a letter of intent and tried to be a good corporate citizen for the city of Natchez,” Arceneaux-Mathis said. “We don’t know where we’re going to go, but hopefully, we’re going to go with a public entity down there.”

After the vote, Ward 3 Alderwoman Sarah Smith asked that the city still explore the circumstances surrounding the first lease and development agreement with Reuther.

The city came under fire for the perceived lack of transparency and questions of legality in previous dealings for the depot, including a lawsuit filed by resident Gwen Ball alleging the city did not follow legal procedure. The lawsuit was later dismissed because it was not filed within 10 days of the aldermen’s decision as required by city law.

Smith said she is particularly concerned with a resolution that is a part of the city’s minutes for the board of aldermen’s Sept. 8, 2015, meeting. The resolution states the city is declaring the property surplus, and aldermen have said they do not recall voting for such a resolution.

“We know we had a board (that) did not recall a resolution to surplus to property,” she said. “We know it did not happen above board. I think that’s a problem the city needs to look at. … We can’t white out minutes and do things that make it look clear. Amending the minutes has to come before (the board). We’ve got a history of having this happen in our town.

“I feel like everyone is here for this reason,” Smith said, referring to the packed city council chambers. “A lot of people think this is aimed at Mr. Reuther, and some aldermen think this is aimed at Mr. Reuther, and it’s not. … We’ve got to do things above board.”

Latham advised Smith that if the aldermen determined that the resolution was somehow erroneously inserted into the minutes, they could then vote to clarify the minutes.

Grennell told Smith the city would look into the resolution and make a determination.