Posted: Jul 14, 2014 11:08 AM by Melinda Deslatte
Source: Associated Press
BATON ROUGE - Gov. Bobby Jindal's administration is leasing away the rights to a state-owned parking garage and its annual income stream for $2 million. The deal appears to have the state taking a loss for upfront cash to balance Louisiana's budget.
The 91-year lease will generate less money than the state paid for the garage, while also giving away possibly millions in income the state could receive in parking revenue over the life of the contract.
The Division of Administration said the facility was built for employees in a nearby state office building that recently sold, so the garage wasn't needed. The administration says the lease will pay the highest appraised value.
But the attorney general's office criticized the deal, saying the appraisal didn't reflect the real worth of the downtown property.