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City Council unanimously overrides mayors veto on Charity Hospital settlement with Tulane
Summary
The New Orleans City Council on July 10 voted 7-0 to override Mayor Cantrell—s veto of an ordinance funding a $20 million settlement with Tulane University tied to redevelopment of Charity Hospital and transfer of Tulane's 12.5% interest in the Wisner trust.
The New Orleans City Council voted unanimously July 10 to override the mayor—s veto of an ordinance that would provide $20 million to Tulane University in exchange for Tulane transferring its 12.5% interest related to the Wisner trust and other settlement terms tied to redevelopment of Charity Hospital.
The vote followed several hours of debate in which council members and public speakers urged the council to move forward with the settlement to end protracted litigation and advance plans to redevelop the Charity Hospital site into a biomedical corridor. Council member Jeruso moved to override the veto; the motion was seconded by Council President Morrell. "With that, I move to override the veto," Jeruso said before members voted. The motion carried 7 yeas, no nays.
Council members said the settlement is part of a longer effort to secure the city—s interest in the Wisner trust and to clear legal obstacles that have delayed redevelopment of the Charity campus. Supporters told the council the city would gain Tulane—s 12.5% interest in the Wisner trust and other assets currently held in escrow; the transcript records an escrow amount cited as about $1,200,000. Public commenters urged the council to act to stop further deterioration of the Charity Hospital building, to advance economic development and to protect the city—s long-term financial interest in the Wisner assets.
Opponents and some council members raised procedural and legal questions after a memorandum from the city law department criticizing the ordinance appeared in council mailboxes the day before the vote. Several council members said that memorandum, prepared at the request of the city attorney after the mayor—s veto, undercut the council—s authority and raised ethical concerns because the law department is representing the mayor in related litigation. Council members said the appropriate channel for such legal advice would have been to offer an opinion during committee consideration, not after the veto.
Council members also disputed the mayor—s memo on the merits, calling the settlement a negotiated exchange in which the city would receive tangible assets and litigation relief rather than a gratuitous donation. A member of the public, Michael Craig Burnside, spoke against the arrangement on financial grounds; other public speakers and charter-school advocates urged the council to follow legal requirements and complete the settlement.
Action taken: The council overrode the mayor—s veto and passed the ordinance funding the settlement. The motion to override was moved by Council member Jeruso and seconded by Council President Morrell; the recorded tally was seven yes votes, zero no votes.
The council recorded that the ordinance amends the 2025 capital budget to appropriate unencumbered bond funds for Charity Hospital redevelopment and related uses consistent with downtown plans. The council instructed staff to continue work on settlement implementation and related budget and contract steps.
The matter drew extensive commentary at the meeting, and council members said they expect follow-up actions to finalize legal transfer of the Wisner interest and to document the city—s receipt of escrowed funds.
