New Orleans, Harrah's Settle Lawsuit

As reported by the New Orleans Time-Picayune: "The New Orleans City Council and the owners of Harrah's New Orleans Casino have settled a lawsuit the council filed in 2004 accusing Harrah's of breach of contract and bad faith for failing to develop the casino's vacant second floor.

"Under the agreement, attorneys for the two sides said Thursday, the city stands to get $52.5 million over the remaining 52 ½ years of Harrah's lease of the casino site, a city-owned tract at the foot of Canal Street that formerly held the Rivergate convention center.

"The total includes a minimum of $925,000 in annual payments to the city, subject to cost-of-living adjustments every three years, plus a one-time payment of $3.5 million for the right to close a block of Fulton Street near the casino.

"…Two ordinances were introduced at Thursday's council meeting spelling out the terms of the new agreement, which was negotiated over the past few months by Russ Herman, the private attorney who filed the council's lawsuit against Harrah's, and casino attorney Basile Uddo…"