| Advisory opinion request regarding whether Jessica Knox, an employee of the Housing Authority of New Orleans, may lease retail space from On Iberville Phase III, LLC. |
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The Housing Authority of New Orleans (HANO) has been a financial partner with HRI, Inc., and McCormack, Baron, Salazar (MBS) for several years in the redevelopment of the Iberville Public Housing development, which is now referred to as Bienville Basin (Project), in downtown New Orleans. HANO owns the land upon which the Project was constructed. Additionally, HANO loaned more than $13 million for the Project, which is being repaid out of the Project's cash flow. Finally, HANO is also providing public housing subsidies and project based vouchers for the affordable housing units included within the Project.
In the most recent phase of the Project, which is referred to as On Iberville Phase III, a portion of the buildings are designed for small retail operations in addition to the residential units. While the buildings were constructed on land leased from HANO, they are owned by On Iberville Phase III, LLC, which is controlled by HRI, MBS, and their tax credit investor partners. HANO, either directly or through an affiliated entity, is not a member of On Iberville Phase III, LLC, or any other limited liability company associated with the Project. Furthermore, private funds were used to finance the retail construction.
Jessica Knox, a Senior Strategic Specialist with HANO, has submitted a proposal to lease a retail space from On Iberville Phase III, LLC. Ms. Knox, in her capacity as an employee of HANO, has not participated in any transactions involving the Project. Additionally, proposals submitted by potential retail tenants are not reviewed by HANO. Finally, while On Iberville Phase III, LLC, will loan the tenants sufficient funds to build out the retail space, it will not use any funds borrowed from HANO.
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La. R.S. 42:1113 prohibits a public servant, a member of her immediate family, or a legal entity of which she has a controlling interest from bidding on or entering into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of her agency.
La. R.S. 42:1112B(5) prohibits a public servant from participating in a transaction involving the governmental entity in which, to his actual knowledge, any person who is a party to an existing contract with such public servant, or with any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, or who owes any thing of economic value to such public servant, or to any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, and who by reason thereof is in a position to affect directly the economic interests of such public servant has a substantial economic interest.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Haley Williams |
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