Apartment-gate: A red herring or an albatross for the Mayor?

By Christopher Tidmore
Contributing Columnist

In 1930, the Pontalba Building Museum Association donated the up-river building flanking Jackson Square, erected by the Baroness Pontalba, to the city to provide a permanent source of income for the “public good.” Today, the Upper Pontalba is supposed to benefit the city through the French Market Corporation and its mission to beautify the riverfront—with the original sixteen townhouses in the upper building converted to 50 apartments all sold at market rents.

That is, save one. In theory, the Mayor has use of one of the prime apartments, 530B, to promote the city, at his or her discretion. In practice, the apartment tends to be reserved for special guests, noted dignitaries, and gatherings which enhance the economic and political position of the Crescent City. At least, the historic apartment tended to be so used for public purposes until the last few months.

The Metropolitan Crime Commission revealed last week that LaToya Cantrell instead decided to occupy the apartment as her personal home, rent free. For a Chief Executive who remains embroiled in a controversy of charging the city for first class travel upgrades (potentially in violation of city regulations) and facing an increasingly strong recall effort, the news that Mayor Cantrell could be augmenting her income by taking possession of a free apartment could not have come at a worse time.

On Thursday, September 29, the Metropolitan Crime Commission claimed that it possessed evidence—from photos to witnesses—that Cantrell had “been inhabiting and/or personally utilizing” the apartment. Included in a letter to the New Orleans City Council were several photos of Cantrell walking near the building as recently as this past month as well as images of a city-owned SUV parked outside the Pontalba. In addition, WVUE-TV reported that it had reviewed hundreds of hours of French Market Corporation surveillance video which showed Mayor Cantrell inhabiting the apartment “almost every day” over a 26-day period this summer, often for hours at a time and occasionally spending the night as well.

In its letter, the MCC asked the City Council to investigate whether Cantrell currently lives within the building and whether she has complied “with city policy and/or state law by inhabiting this city-owned apartment without paying rent or being taxed for the fair market value use of this unit.”

The French Market Corporation has indicated that similar-sized units carry a fair market rental value of $2,991 per month. Normally, though, the city’s apartment does not earn that amount, as it is typically used as a hotel for visiting dignitaries or as a venue for parties; events and usage which lay at the Mayor’s discretion, which underlines Cantrell’s counterargument.

Indeed, her office confirmed on Friday that the mayor was living in 530B, and had every right to live there. Her spokesperson Gregory Joseph further argued that the Mayor was under “no obligation” to pay for its use. “The mayor’s usage of the city-owned apartment at the Pontalba is consistent with the usage of past mayors,” he maintained. “In addition, the most recent franchise agreement contains no rules governing how that unit should be used.”

Under Orleans Parish and FMC regulations, that interpretation may be correct, yet Cantrell still would have to report the free apartment as an employment benefit for income tax purposes. One of Cantrell’s allies, City Councilman Eugene Green, who sits on the FMC board which manages the Upper Pontalba, said he reviewed policies and saw no problem. “Councilmember Green is not aware of any regulations or procedures that may have been violated,” Green’s chief of staff Sandra Thomas stated.

However, as the recall effort surpasses an estimated 25 percent of the signatures needed to initiate a recall election for mayor, and with more than four months remaining to achieve the 20 percent of Orleans registered voters required, a torrent of anger on social media and talk radio flew out over the apartment revelations as the week concluded. Repeated critics noted that no previous mayors had used the city’s Pontalba apartment as a residence, though some did admit that Cantrell’s predecessors did use the property to entertain personal friends and associates.

This article originally published in the October 3, 2022 print edition of The Louisiana Weekly newspaper.