Posted on 07/08/2007 6:58:19 AM PDT by Libloather
What are Jefferson buildings really worth?
Documents say one thing, lawsuits say another
Sunday, July 08, 2007
By Gordon Russell Staff writer
It suited Mose Jefferson just fine when the taxpayer-financed nonprofit he controlled sold a Central City office complex and political stronghold to a friend for a mere $10,000.
That's all he paid for the building when he bought it a couple of years later. It was a fair price, Jefferson said, even though it brought in more than twice that annually in rent for just one of the complex's eight units -- the one leased with taxpayer money by his longtime companion, then-City Councilwoman Renee Gill Pratt.
But when it came to collecting insurance due to damage from Hurricane Katrina, Jefferson claimed the building was worth substantially more. A lawsuit he and a business associate filed last summer against their insurer show that Jefferson had insured the 3313 S. Saratoga St. complex for almost 40 times what he paid for it, according to the suit.
The suit also raises questions about claims by members of the Jefferson family that none of them has any stake in a large, dilapidated apartment complex nearby. The second building, at 2712-16 Loyola Ave., made news after Assessor Betty Jefferson, sister to Mose and U.S. Rep. William Jefferson, slashed the assessed value to $45,000 shortly after she took office in 1998. That was less than one-seventh the amount William Jefferson paid for the 27-unit complex in 1984. Meanwhile, the building was insured for $268,800, according to the lawsuit.
The lawsuit resembles thousands of other claims filed by New Orleanians unhappy with their post-Katrina insurance payouts. It is notable only in that it differs with earlier claims by members of the Jefferson family that the two buildings had little value.
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(Excerpt) Read more at nola.com ...
A town hall meeting Saturday on public housing and the Road Home program was enlivened by the unexpected arrival of U.S. Rep. William Jefferson, making his first public appearance in New Orleans since he was indicted last month on federal corruption charges, and a combative speech by Mayor Ray Nagin.
Nagin said the city is on the brink of making a full recovery from Hurricane Katrina, but he repeated his frequent finger-pointing at state and federal officials for holding back money from the city.
He said that after five years as mayor, he's "getting worn out" and is on the "downslope of my political career." But he promised to "keep pushing," and he called on residents to take to the streets on Aug. 29, the storm's second anniversary, and demand that Washington do more to help the recovery.
"On that day, everybody in New Orleans should be calling the White House and asking to speak with Mr. Bush. On that day, everybody in New Orleans should be taking to the streets and making some noise and saying that this is unacceptable -- that two years after this event, we're still struggling to rebuild one of the greatest cities in the world," Nagin said.
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http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-8/118387779858780.xml&coll=1
The corruption is amazing, in its extent.
All property insurance policies require that the insured cover the building to at least 80% of its value. They also describe the penalty for only insuring to 10% value will be a claim payment for 10% of loss.
This should go nowhere. Oh wait....louisiana..
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