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4:38 pm
Wed April 30, 2014

Negotiations Over World Trade Center Development Fall Apart

Negotiations between the city of New Orleans and Gatehouse Capital Corporation to redevelop the former World Trade Center have collapsed.

According to a statement released Wednesday by Mayor Mitch Landrieu's administration, the city rejected the developer's final offer to turn the long-derelict high-rise into a W Hotel with rental apartments on the top floor.

The New Orleans Advocate reports the city notified Gatehouse that it was terminating talks in a letter dated April 17.

The company's original proposal offered to make a single upfront payment of $10 million to the city in return for a 99-year lease, which would work out to an annual lease payment of $391,000. Officials said that amount was "significantly lower" than fair market value.

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