Council rescinds short-term rental approval at 1201 Canal after residents— complaints and withdrawal

The New Orleans City Council voted July 10 to rescind a prior approval that would have allowed commercial short-term rentals at 1201 Canal Street and to accept a withdrawal of the owner—s application, responding to testimony from residents who said the developer misrepresented facts and issued eviction notices to long-term tenants.

Council members moved and adopted motion M25 3 93 to receive and accept a withdrawal of the interim zoning district (IZD) appeal that would have allowed 25% of the units at the property to be used as commercial short-term rentals. After extensive public comment, the council also approved motion M25 3 89 directing the Department of Safety and Permits to scrutinize any future applications from the same owner and to cancel permits issued on the basis of inaccurate or misleading information.

Dozens of residents and unit owners spoke at council chambers and in written comments, describing what they said were deceptive application materials and eviction notices served to tenants. Several speakers said the appeal sought to convert long-term housing into a transient lodging operation and asked the council to block reapplication for a five-year period or permanently. Public commenters included Gary Keene (first president of the condominium board at 1201 Canal), Kim Keane, Michelle Calvo, Monique Blossom of the Louisiana Fair Housing Action Center, and representatives of Jane Place and other tenant groups.

Owners and residents described inconsistent paperwork and signatures on applications, eviction notices giving tenants 30 to 60 days to vacate, and a pattern they described as a developer-led effort to remove long-term tenants. Several speakers asked the council to use the municipal code—s authority to revoke permits and bar reapplication for up to five years; the council noted that Section 26-6-28 provides such authority.

Action taken: The council received the owner—s withdrawal and rescinded the prior approval. The council adopted both motion M25 3 93 (rescinding the prior interim zoning district approval for commercial short-term rentals at 1201 Canal Street) and motion M25 3 89 (directing Department of Safety & Permits to review any future filings and to consider rescission of permits issued on the basis of misleading information). The motions were adopted by the council; the record shows unanimous support at the time of the rescission votes.

Council members said they will seek further changes in the appeals process through the pending transient lodging study and will consider additional restrictions to prevent abuse of the appeal pathway while the study is underway.

Several speakers urged that the council impose a five-year ban on reapplication by the same owner; the council did not adopt an explicit five-year ban on the record but directed staff to evaluate permit enforcement and use code authority where appropriate.