Negotiations to redevelop WTC in New Orleans collapse - KNOE 8 News; KNOE-TV; |

Negotiations to redevelop WTC in New Orleans collapse

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NEW ORLEANS (KNOE 8 News/AP) - Negotiations between the city of New Orleans and Gatehouse Capital Corp. 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 based on a present value calculation. Officials said that amount was "significantly lower" than fair market value.

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