New Orleans Mayor Helena Moreno announced on Tuesday that the city is set to receive more than $100 million in advance lease payments from Caesars New Orleans Casino, in a deal designed to provide a vital infusion of cash to its general fund reserves. Moreno called it an “outside the box” move that will shore up the rainy day fund and reassure rating agencies that the city is not a credit risk.
As part of a 30-year-old deal that allowed it to operate the state’s first land-based casino, Caesars operates its New Orleans casino on city-owned land under a lease with the city. The current agreement, which runs until 2058, brings in about $16 million a year in rent, plus additional payments for local education initiatives.
