Capitol grounds site on block for $5 million

The former Department of Insurance site on the grounds of the State Capitol is again on the block this year, and the asking price is $5 million. Commissioner of Administration Kristy Nichols told the Joint Legislative Budget Committee today that the 17-lot tract is for sale, along with more than $40 million worth of other state-owned properties. The site that was formerly home to an insurance building currently has a two-story parking garage located on it but is otherwise vacant. What makes it unique among the properties on the state’s list of those for sale is that it’s one of the last remaining open parcels of land on the Capitol grounds—leading some to question why the state would want to sell property in such a prime location to a private developer. “A lot of people have concerns about it because it is a state-owned property, and a lot of lawmakers were hearing certain things about what might be done with it,” says Sen. Gerald Long, R-Winnfield, who chairs the Senate Natural Resources Committee, which must approve the transfer of the site to the Division of Administration before it can be sold. Another concern surrounds the appraised value of the property. The state had at least two appraisals done on the site last year: one valued it at close to $5 million, the other less than $3 million. “They want nearly $5 million for it, and I’m not sure that is what the appraised value is,” says Rep. Pat Smith, D-Baton Rouge, whose district includes the building site. “It’s one thing to sell state property. It’s another to make sure you get the best price for it.” —Stephanie Riegel