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ajc.com Georgia state flag: Save it or waive it?
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Glynn Wilson - For the Journal-Constitution Sunday, January 14, 2001 New Orleans --- The beams of spotlights bounce off the serrated bark of a dozen palm trees as you approach Harrah's New Orleans Casino at the apex of downtown, just a stone's throw from the Mississippi River. The ritzy scene looks more like Las Vegas or Atlantic City than the French Quarter, and that may be part of the problem. New Orleans likes to party in historic structures, not shiny new ones. And that in part led Harrah to file for bankruptcy protection 10 days ago in what employees and many residents see as a political move designed to force the state and city to renegotiate its contracts. At risk in the business gamble are 3,000 casino jobs. Mayor Marc Morial says he has been assured that no jobs will be lost, and the consensus among casino workers seems to be that the casino, open 24 hours a day, 365 days a year, will not close any time soon. "There aren't even any locks on the doors to close this place. It will never close," says Rodney Batiste, a lifelong resident of New Orleans. He loves his well-paying job as an environmental services worker in the gentlemen's room, and smiles at the question of closing. And he's right. There are no locks on the doors. "This place brings a lot of revenue and jobs to the city," he said. "We're one of the largest employers. . . . They will never let it close." But the partners in Louisiana's only land-based casino --- JCC Holding Co. and Harrah's Entertainment Inc. --- say they cannot continue to pay $100 million a year in state taxes, service the $450 million debt and continue to lose about $8 million a month, because of the lack of patrons and revenue sources. They want the tax bill reduced to $60 million a year, or they say they will stop paying the bills March 1. Gov. Mike Foster has indicated support for a bailout of Harrah's, but has said he will not call a special session to deal with the issue until legislators reach a consensus on what to do. Foster said any renegotiated deal would involve a long-term commitment from Harrah's so that money could be dedicated to education. Because of pressure from local hotels and restaurants, the state and city set restrictions on the operation that casino managers have said make it difficult to turn a profit. The casino does not have hotel rooms of its own, and it cannot serve full-course meals. It cannot offer the incentives of free food and drinks that gambling patrons have come to expect in Vegas and Atlantic City. The casino's original owner, Harrah's Jazz Co., closed a temporary casino in November 1995 and filed for bankruptcy reorganization. JCC Holding emerged from that proceeding in late 1998 and opened the current casino about a year later. A legislative audit released last week shows the casino had debts of almost $557 million as of September and an operating loss of $98 million. While riverboat gambling flourishes on the Mississippi River, especially around Tunica, Miss., New Orleans is not widely known as a gambling destination. People come here to eat, drink and be merry on the local party culture and freewheeling fun atmosphere --- not, it seems, to drop money in the slots or at the blackjack table. On a recent Friday night, there were enough customers to fuel the incessant ringing of the slot machines, but the place was not exactly packed. The metallic din of the slots was loud enough to partially drown the sound of the combo in the Jazz Court, where Ricky Sebastian played a drum solo. He sat under a domed skylight, where electronically generated shooting stars appear across the ceiling above a large, fake oak tree. The bartenders and waitresses don't seem worried that they might lose one of the best service jobs in the city. "I don't think we're going to have a problem staying open," said Jason Perez, while serving the favorite local brew on tap, Abita Amber. The management has held meetings with employees to explain the situation, he said. "It's just a business thing." In a town with many regular jobs for musicians --- who sometimes feel they are taken for granted --- playing at Harrah's is one of the better opportunities in town. Those musicians who play often in the casino say they hope it gets what it wants from the state and city, so they can stay in business. "It's a great gig," says Luther Kent, one of the casino regulars who is nationally known for his time singing with Blood, Sweat and Tears in the '70s. "I hope they get what they want from the state and city and manage to stay in business here. They really treat us right." Even new residents think Harrah's is just trying to squeeze tax breaks out of the political system. "I do think it's a ploy on the part of Harrah's to get tax breaks," said Andy Broyles, a native of Tulsa, Okla. He often drives by the casino property on Canal Street and has followed the news on the bankruptcy filing. "It seems busy," he said. "Due to the fact that they have $250,000 palm trees in front of the place, I don't think they're in that much trouble. This is a city of sin, so I don't see why they want to tax that sin so much." Leon Cordier, a longtime bartender at Bailey's Belle of Orleans, one of the riverbank casinos, agreed, although he is opposed to the tax breaks. "I think it's basically a business thing," he said. "But I think they had it in their minds all along that it would go out of business eventually. How can they expect to keep all those employees working when you declare bankruptcy?" ON THE WEB: Harrah's New Orleans Casino: www.harrahs.com
/our_casinos/nor/location_home.html
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