Capital One Tower declared blighted; attorney assures rebuild planned

Published 8:36 pm Wednesday, June 15, 2022

The Capital One Tower was declared blighted at Wednesday’s Lake Charles City Council meeting — but plans are underway for a rebuild that includes wind-resistant glass and other updates for the 22-story building built in the 1980s.

The council considered the demolition of 18 residential properties, a church, the Capital One Tower at One Lakeshore Drive, which is owned by Hertz Lake Charles One, and two additional commercial properties — Motel 6 at 1101 West Prien Lake Road and Inn On the Bayou at 1103 West Prien Lake Road, both owned by Next Level Hospitality.

All three commercial properties were declared blighted by a unanimous council vote. The residential properties received various votes including going ahead with demolition, allowing for permit pulls, in some cases repairs and curator appointment.

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The blight declaration of the commercial properties is an enforcement of Section 12.5-9 of the city Code of Ordinances, prohibiting blighted and abandoned properties in the city. At this time, the city is reserving its right to impose civil penalties as permitted by the ordinance, according to a statement from City Administrator John Cardone.

“We feel that this structure (Capital One Tower) meets the definition of blight under our current ordinance, which states that no commercial structure boarded shall remain in that state for more than 12 months,” noted Doug Burguieres, director of Lake Charles planning and development. “You can see clearly by the photographs that we’ve submitted, the integrity of the plywood has become compromised and could be dislodged from the building and become a flying projectile.”

The city, with the support of the Lake Charles City Council, is working to address concerns over lingering damaged, abandoned and/or blighted residential and commercial structures throughout the city, Cardone wrote in his statement.

“Not only do blighted and abandoned structures present aesthetic challenges to the community, potentially hindering long-term recovery efforts, but as we find ourselves in the midst of another hurricane season, there is concern for public safety as some of these larger commercial structures present potential hazards in the event of another storm,” he said.

New Orleans Attorney Martha Curtis, lead counsel representing the Hertz Group, spoke on the company’s behalf.

“We have signed a contract with Lemoine construction in the mortgage book and with John Williams, an architect out of New Orleans,” she said. “We have done everything we can. We want to be here.”

The Hertz company filed suit against insurance company Zurich/American Guarantee and Liability Insurance Dec. 23, 2020, Curtis said.

“We have a policy that provides up to $500 million in repair costs for that building and we have not received our replacement costs.

“On May 20, 2022, Judge Robert Wyatt, 14th Judicial Court, ruled that we were entitled and there was a motion for summary judgment and we won,” Curtis said.

Oct. 11, 2022, has been set for a jury trial.

“Judge Wyatt told us that we would go at that date because we are a hurricane case and he gives hurricane cases top priority. We’re going to file a permit by the end of this month. We want to rebuild. We want to be in Lake Charles.”

Curtis said she has heard rumors that the homeless are living in the tower and she expressed doubt as there are security guards working on site, the building is lighted and someone is on the premises to sign in visitors.

“We have a contract to rebuild. We’re going to rebuild. We have no intent to abandon the property. The property is not abandoned,” Curtis said.

Attorney Matt Pettaway spoke on behalf of Next Level Hospitality.

“A permit was pulled for demolition this afternoon,” Pettaway said. “There’s a dozer on site and work is set to begin next week.”