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Debate rages over controversial commercial real estate sale

A plan to sell commercial real estate across from the Louisiana Capital may have run into a roadblock with the recent news that the property was appraised nearly $2 million less than Governor Bobby Jindal had hoped. Governor Jindal had hoped to generate approximately $5 million in the sale of the building in downtown Baton Rouge, which previously housed an insurance company. Unfortunately for the plan, the newest appraisal put the value of the location at $2.8 million.

The controversial plan has caused some Louisiana lawmakers to questions the rationale behind the move itself, arguing that the building could be used for purposes other than being sold to private investors. For instance, the parking structure is currently used by state employees and lobbyists during the legislative sessions, and the building, some argue, could be converted into office space for government employees.

The issue was set to be voted on by lawmakers on November 9th, but amid the most recent appraisal and the concerns of State representatives there is speculation that the vote will not occur.

Not content with the value of the appraisal, the Governor's office has scheduled another, bringing the total appraisals to three. The first placed the value of the location at $4.9 million.

Regardless of one's opinions regarding the political aspects of the dilemma, these types of delays and considerations can occur when businesses or government entities need to determine who should buy or fill a spot within a property. The appraisals process can be a complicated issue that determines a company's course of action when either considered to sell or buy a property.

Source: Daily Comet, "Property valued at $2M less than expected," Melinda Deslatte, Nov. 1, 2012

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