Demolition to resume on New Orleans Six Flags site after scrap metal issue. What to know.
By Ben Myers | Staff writer
The stalled demolition of the former Six Flags in New Orleans East appears to be back on track now that developers have gotten city approval for a new contractor to tear down the abandoned amusement park.
Bayou Phoenix still plans to pay the company with scrap metal sales, despite previous objections from public officials. The group may also keep a portion of the proceeds for themselves, according to the most recent contract.
The New Orleans Redevelopment Authority, a public agency that owns the 227-acre site, recently objected to Bayou Phoenix’s plans to sell off the scrap, claiming that it retains ownership of about 90 old roller coasters and buildings – though some have already been demolished and sold.
Bayou Phoenix says it is granted title to all structures on site under the lease it signed with NORA in October 2023. It won development rights three years ago in a competitive solicitation, and has laid out plans to build a youth athletic complex, water park, two hotels, a movie studio and a plethora of amenities.
“The Bayou Phoenix position hasn’t changed. It’s our property, it’s our assets,” said Troy Henry, a Bayou Phoenix partner. "We are going to do with it as we see fit."
Asked if NORA officials had agreed to that, Henry said “they don’t have to, the lease is self explanatory.”
Bayou Phoenix will get a 30% to 40% cut of any scrap metal sales that exceed $450,000, according to the contract.
NORA’s executive director, Brenda Breaux, said the two sides had "come to an agreement to reinvest any funds received" into the overall development. She didn't say what that might entail, but said the two parties "are working together to bring this important property back into commerce."
Scott Hedlund, also a partner in Bayou Phoenix, confirmed there had been a verbal agreement but declined to go into specifics.
"It's reinvestment into the project," Hedlund said. "It's an agreement so we can keep the project moving forward."
City officials ordered a halt to the long-awaited demolition last month after learning the prime contractor, Smoot Construction and Consulting, didn’t have a licensing classification for rigging and dismantling. The new contractor, Christian Korver, has that credential, according to the state licensing board. Korver had been working as a subcontractor to Smoot.
Henry said that about 25% of the demolition had been completed before the city’s stop work order last month, and the new contractor indicated Korver had already received $112,000 from scrap metal sales.
The licensing mix up wasn’t the only snag. The state Dept. of Environmental Quality also notified Bayou Phoenix that it was required to complete asbestos inspections. That has been done, and the state has cleared the way for the demolition to continue, Henry said. An inspection report the group shared shows no suspected asbestos on the site.
While Bayou Phoenix worked to straighten out the licensing and inspection issues, Breaux notified the group in a Nov. 21 letter that plans to sell off the scrap metal violated its lease.
Breaux said the lease made NORA the owner of all structures on the site, and that Bayou Phoenix must pay for the demolition at its own expense. She also said the provision transferring title to Bayou Phoenix was temporary, and that the title transfers back to NORA at the end of a 50-year lease term.
Breaux on Monday did not address the underlying question of who owns the scrap.
City Council Vice President JP Morrell also recently urged NORA to take control of the scrap metal and use proceeds for the site's infrastructure. Morrell did not respond Monday to questions about whether the recent deal satisfies those concerns.
The City Council added $5 million to the 2025 city budget for NORA to use on the site, but specific plans for spending that money aren't clear.
NORA and Bayou Phoenix have worked through tense disagreements in the past. The two sides publicly criticized each other during lease negotiations, and Breaux skewered the group’s initial master plan.
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