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Housing project costs caused concern EBR officials questioned price, legality of work that is now under federal investigation
BY PATRICK SLOAN-TURNER Staff writer
Several East Baton Rouge Parish officials raised concerns internally about a federally funded effort to remodel three small houses, calling the price excessive and saying the affordable housing project violated construction laws by ignoring important safeguards, emails obtained by The Advocate show.
In an internal memo dated Jan. 23, 2023, former purchasing director Kris Goranson and former Office of Community Development Director Marlee Pittman raised concerns about the $480,000 cost of developer Jason Hughes’ Central Road project in Scotlandville, which they said was “well above” the average cost of construction in the area. The two also said Hughes was
acting as a contractor but had no license, was working without proper permits and invested in the properties beyond his budget. And the city-parish missed steps to make sure the rules were being followed, the officials noted. Hughes declined to comment for this story. The concerns echo broader problems raised in an internal audit last year that found the community
development office — which doled out hundreds of millions of dollars in federal grants during the COVID-19 pandemic — often failed to follow the rules for distributing taxpayer money or monitor whether it was spent correctly. The office is now the subject of a federal investigation into possible misuse of funds, multiple sources have confirmed. Hughes’ project was among
South Carolina-based group buys Louisiana’s largest dealership empire for $700M
Parts of caverns already under state of emergency
BY ANTHONY McAULEY
Staff writer
BY DAVID J. MITCHELL Staff writer
State regulators are examining the cause of an unexplained pressure drop in three conjoined underground caverns in the Sulphur Mines salt dome, parts of which have been under a state of emergency for a couple of years due to stability concerns. The latest potentially troubled cavern, owned by a Westlake Chemical subsidiary, is just south of one that prompted emergency measures in 2023 to contain a potential collapse, including a protective earthen berm that is now nearly finished construction. The new concern at the site, located in the Lake Charles area, involves “Cavern 2-4-5,” named that way because it used to be three separate caverns that joined in the 1950s. State officials said on Monday that they were being cautious with the drop in pressure, which is small but has been sustained for
ä See DOME, page 4A Sulphur Mines 10 210
LAKE CHARLES PROVIDED PHOTO
27 Staff map
WEATHER HIGH 96 LOW 75 PAGE 8B
ä See PROJECT, page 4A
All Star Automotive Group sold
More concerns arise over salt dome
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roughly half a dozen for which the Office of Community Development helped secure federal funding in early 2022 to build or renovate lowincome housing in Baton Rouge. Hughes, owner of Hughes Consultant Group LLC, was awarded $220,000 in grant funds to rehab the homes on Central Road in Scotlandville. The Metro Council
Matt McKay, who over nearly four decades went from teenage car salesman to owner of Louisiana’s largest auto dealership empire, has agreed to sell his All Star Automotive Group for a reported $700 million in what industry experts said is a record transaction for the state. McKay’s auto network includes 14 brands in 13 locations in Baton Rouge, Denham Springs and Prairieville, as well as a collision center, a parts warehouse and a used car “super center.” Brands include Toyota, Lincoln, Genesis and Hyundai — those four dealerships are located near to each other along a car dealer’s row on Airline Highway, where the huge used car center also can be found. The terms of sale were not publicly disclosed, but people familiar with the deal said it valued the group at around $700 million. That includes just under $200 million of real estate, all of which is fully owned by All Star, as well as group brand value of around $80 million, with the automobile inventory as well as other tangible assets making up the rest. All Star’s buyer is Charleston, South Carolina-based Hudson Automotive Group. As is typical in the industry, the deal is subject to approval by each of the carmakers who have “right of first refusal” when dealerships are sold, and often exercise that option to bring in another buyer at the same or a higher price. Chris Donner, All Star’s chief financial officer, said McKay had been planning the sale for some time. He said Hudson executives visited the dealerships last week to tell them they wanted continuity and planned to retain the roughly 700 employees in the group, which includes showroom salespeople,
Matt McKay’s All Star Automotive Group includes 14 brands in 13 locations.
ä See AUTOMOTIVE, page 6A
Business ...................10A Commentary ................7B Nation-World................2A Classified .....................7D Deaths .........................3B Opinion ........................6B Comics-Puzzles .....4D-6D Living............................1D Sports ..........................1C
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