Chelsea's must rezone or face shutdown

Chelsea’s Café is being backed into a corner to change its rezoning status. David Remmeter, owner of the popular Perkins Road restaurant and live music venue, pleaded “no contest” to charges of operating a bar without a license to do so and agreed to pay a $2,000 fine. His restaurant license is suspended for one year unless he meets certain conditions from the Louisiana Bureau of Alcohol and Tobacco Control, such as changing the zoning status to reflect operating as a bar. If Remmeter loses his restaurant license, he will be forced to shut down the business.

“The other part of the stipulation is he has a choice to get his city restaurant license to match the one he has from the state, or he can rezone and receive a bar zoning that would allow him to get a license from the state, called the restaurant conditional permit,” says ATC Commissioner Murphy Painter, who explained with that particular zoning, Chelsea’s Café can be a restaurant until 9 p.m. and be a bar until closing time, as long as ratio and qualifications are intact and there’s no zoning issues within the area. “That’s how complicated it is. I’m not a demon. I just do what I have to do.”

Remmeter says he is working to get his rezoning status through the Metro Council. In the meantime, he says, Chelsea’s will continue offering a full menu all day and live music after 10 p.m. Remmeter says that at his old location by LSU, alcohol sales outnumbered food sales. Since he moved to the Perkins Road overpass, food sales have surpassed alcohol sales. Painter, however, argues that the records show Chelsea’s is “selling barely more food,” which still puts the restaurant out of qualifications to be considered a “bona fide restaurant.”

“This is just the tip of the iceberg,” says Remmeter, who adds that a few restaurant owners in town are looking at ways get around the ATC restrictions. “It’s a big deal. We’ve got a strong business; people like this place.”—Rebecca Breeden

Airport officials: No specific airlines in running for incentives

Although no specific airlines have expressed interest in adding new nonstop flights to Baton Rouge Metro Airport, a new incentive package has been established to boost air service. The Metro Council signed off on the plan Wednesday night, which would reduce airport landing fees by 50% for up to one year for any airline that provides new nonstop service to a city not currently connected to Baton Rouge. "It's almost a necessity for mid-sized airports to offer incentives like this," says Jim Caldwell, Metro Airport marketing manager. "Washington and Chicago don't have to do this, but we do." Caldwell says incentives can serve as a tiebreaker for airlines that are considering service at two or three cities. "But more often than not, it's a way to eliminate a city," he says. While the current economic climate makes it unlikely that new flights out of Metro Airport will start anytime soon, Caldwell says a number of airlines have expressed the potential to add service in the future. "We have a good story to tell," he says.—Timothy Boone

Publisher: Advocate's Shuler, Ballard reveal political bias

The vicious state Senate campaign has been unfair to Lee Domingue, who has been a whipping boy, and to voters, who don't have a complete picture of all the candidates, says Business Report Publisher Rolfe McCollister. Part of the blame falls on The Advocate's Mark Ballard and Marsha Shuler. "They have demonstrated poor judgment and clear bias in their reporting in their zeal to 'get the governor,'" McCollister says. The Advocate also has bought a one-sided story peddled by Jack Dampf, the attorney for Paula Pennington de la Bretonne, about a business deal involving Domingue that went bad. "The fact is, deals and partnerships go awry all the time, and there is always friction when there are financial losses involved," McCollister says. "Dampf is only presenting to the media and the public his client's side. And, unfortunately, Shuler, The Advocate and WBRZ are willing to be the pawns." Read the column here. Send comments to editors@businessreport.com.

Funding guidelines for road projects move forward

The Louisiana Transportation Authority will get its first glimpse next week at proposed guidelines for public-private partnerships to fund transportation needs in the state. The 23-page draft details how the state will enter into agreements with private entities to plan, develop, finance, construct and maintain transportation projects. Sharon Lyles, deputy general counsel to the Department of Transportation & Development, says it isn't clear whether the nine-member board will simply discuss the draft guidelines or adopt them. The guidelines are key to a number of projects along the 10/12 corridor that are considering public-private partnerships for funding, including the Baton Rouge Loop, the Lafayette Metropolitan Expressway and possibly high-speed rail.

Lyles says the board will discuss the status of the Transportation Mobility Fund, intended to help get such projects off the ground. The Louisiana Legislature last year dedicated 7% of the motor vehicle license tax to the fund, but the budget crisis has put a stop to that.

So what does that mean for corridor projects? Baton Rouge Loop Project Manager Bob Schmidt says there is proposed legislation to prohibit future raids on the fund. In the meantime, the Loop is continuing with the first environmental phase of the project, for which it does have funding. "TMF provides funds for many transportation projects other than the Loop and groups like Driving Louisiana Forward are working to see that the funds are used for transportation projects and not budget shortfalls," Schmidt says. "We anticipate (and hope) this is resolved before the Loop is affected."—Penny Font

Perkins Rowe adding paid parking spots

Parking meters are being installed for 190 parking spots in front of stores in the Perkins Rowe lifestyle center. The pay parking spots account for about 7% of all the available spaces in the shopping center, says Rachel Rivet, a spokeswoman for the center. Rivet says the spaces were converted to keep spots turning over in front of stores and to allow shoppers the convenience of paying for close parking. The shift to paid parking is expected to reduce traffic by about 30% in Perkins Rowe, since shoppers won't be hunting for open spots. For long-term visitors, such as people going to dinner and a movie at Perkins Rowe, free spots are available in the parking garages. Center officials plan to use the proceeds from the parking meters for maintenance and events. The meters will become active in the next month. The time increments for the meters and fees have not been determined.—Timothy Boone

Labor drops cash in B.R. for Obama

Americans United for Change, a labor-affiliated organization, is spending at least $350,000 on a national media buy that targets cable television stations in Baton Rouge. Bradley Beychok, a Baton Rouge political consultant involved with the public information campaign, says about $100,000 is being used for the Louisiana buy alone, which also includes Shreveport and New Orleans. The new ad, dubbed “House of Cards,” begins airing today. The spot highlights the “transformational blueprint” President Barack Obama, a Democrat, has outlined in his fiscal year 2010 budget request to Congress. “This ad is designed to engage the American people in the process of bringing about the transformational change they voted for in November by contacting their elected representatives and asking for their help in putting our country on the road to prosperity,” says Tom McMahon, acting executive director of Americans United for Change. You can view the spot here.—Jeremy Alford

Cargill criticized for how it runs Port Allen facility

Agribusiness giant Cargill has leased the grain elevator at the Port of Greater Baton Rouge for decades, and some farmers say another company should have a shot at running the facility that handles a quarter of Louisiana’s grain. Farmers say Cargill doesn’t pay fair market value for their crops, which influences prices throughout the state, and doesn’t keep the elevator open long enough. “The Farm Bureau does not want to lose Cargill,” says Randy Brian, a port commissioner appointed by the Bureau. “They’re just asking that Cargill work with the farmers a little better than they do.” Cargill’s lease comes up for renewal in October 2010. For the full version of this story, click here.—David Jacobs

Lombardi pens column about higher ed consolidation

John Lombardi, LSU president, has written a column about consolidating colleges and universities for Inside Higher Education. It's a timely topic, given the discussion about reducing the number of schools in Louisiana. But Lombardi says shutting down small, semi-rural schools is not without cost. "The best policy perspective is to pay attention to the cost of delivering a college degree and the required investment in nationally competitive public research university performance," he says. "Public higher education institutions at all levels require clear measurements of performance relative to cost, compared to other competitive institutions of their type across the country." Read the column here.

Poll: Recession not causing most to dip into savings

Three-fourths of respondents to a Daily Report poll says the national recession hasn't forced them to tap into savings. But 17% of respondents say they have been forced to go into their savings or 401(k) lately, and 8% say they might have to soon, if the economy doesn't improve. Nearly 1,300 people participated in the survey.

Today's question: Do you support a new local hotel tax to subsidize the New Orleans Saints?