New Orleans World Trade Center runners-up get shot at project

New Orleans CityBusiness, Oct 27, 2008 by Reports

Developers Darryl Berger and Pres Kabacoff have nearly four months to come up with $27 million to get their chance to redevelop the World Trade Center building at the foot of Canal Street.

Berger and Kabacoff were runners-up during a recent round of bidding for the project. The project was awarded to Full Spectrum of New York, which backed out its deal to convert the city-owned building into a hotel and residences in August.

The New Orleans Building Corp. unanimously approved a motion last Tuesday to give Berger and Kabacoff a chance to take over the project rather than reopen bidding. The motion, which Mayor C. Ray Nagin introduced, sets up a 120-day period, which, at the end of, Berger and Kabacoff must sign a lease and provide $27 million.

"On the 121st day, if the lease is not signed and the money not delivered, we go immediately go back to RFQ (requests for proposals)," Nagin said.

Kabacoff and Berger have to pay a $600,000 deposit within 30 days. Immediately after the deposit is passed into escrow, the council will ratify the lease. After 90 days, the deposit is no longer refundable. And after 120 days if the lease is not signed and the $27 million is not paid, the project will be open to bidding.