New Orleans contractors to be paid at last…

Governor delivers long-awaited payment promise to St Bernard subcontractors.

On 28 August 2005, Hurricane Katrina ripped through New Orleans to become the costliest and one of the five deadliest in US history. More than four years on and New Orleans’ residents are still recovering.

It is almost two years since a team of subcontractors – including several demolition companies – helped demolish the St Bernard Parish homes damaged by Katrina; and many are still to be paid.

However, according to New Orleans City Business, there’s now a light at the end of the tunnel for these contractors.

On Wednesday, Governor Bobby Jindal announced that the parish will receive three federal grants totaling $21 million for hurricane recovery efforts and hazard mitigation. The first grant is a commitment of $20.5 million in community development block grants to allow the parish to pay for demolitions that Jindal said the Federal Emergency Management Agency would not cover.

“When FEMA refused to reimburse St. Bernard Parish for these demolitions, we were determined they not be stuck paying this bill,” Jindal said. “We fought to cut through the red tape to get funding. We’re happy to announce funding that will go towards the demolition of more than 750 blighted structures that served as old wounds and reminders of the destruction of Hurricane Katrina and would have burdened the parish’s effort to attract new businesses to the parish.”

Read the full story here.