Questions surrounding Sulphur’s temporary City Court building now extend beyond the lease itself, reaching a $325,500 parking project, a $100,000 court contribution and whether work on the privately owned property should have been publicly bid.

SULPHUR, La. — A temporary home for Sulphur City Court and the Ward 4 Marshal’s Office has become the subject of state scrutiny after the Sulphur City Council voted 4-1 to ask the Louisiana Attorney General to review potential violations of Louisiana’s Public Bid Law.

The questions center on 501 Willow Ave., the former Masonic lodge the city began leasing in 2024 under former Mayor Mike Danahay’s administration.

The city authorized a base rent of $20,000 per month from BAB Rentals LLC for the temporary facility. The arrangement was approved by ordinance on Oct. 1, 2024, with three council members voting in favor and two absent.

But the lease is only part of what current District 4 Councilman Josh Baden wants reviewed.

Baden has questioned how the property was selected, whether adequate market analysis was performed before the city committed to the lease, and how hundreds of thousands of dollars in improvements to the privately owned property were handled.

On Aug. 24, the council approved Resolution No. 3710 by a 4-1 vote requesting an Attorney General opinion concerning potential violations of the Public Bid Law. Council Chairman Danny DiPetta cast the only dissenting vote.

The vote does not establish that anyone violated state law. It places the questions surrounding the transaction before state authorities for review.

The city committed to the lease before the property changed hands

The timeline surrounding 501 Willow is unusual enough to have drawn scrutiny on its own.

City records show the previous council authorized Danahay to enter into the lease with BAB Rentals LLC on Oct. 1, 2024, at a base rate of $20,000 per month.

KPLC later reported, citing Calcasieu Parish property records and documents obtained through public records requests, that the city signed the lease on Oct. 2 and that Justin Babineaux purchased the property through BAB Rentals on Oct. 3 for $640,000.

The temporary facility houses City Court, the Ward 4 Marshal’s Office and City Council meetings.

The city has said FEMA reimbursement is involved in the rental arrangement because the temporary location was needed as Sulphur continued recovery and reconstruction following Hurricanes Laura and Delta.

Former Finance Director Jennifer Thorn told KPLC that officials had considered several locations and that the Masonic lodge was the only property they reviewed that fit FEMA’s least-cost requirements while providing sufficient space.

That is one of the central counterpoints to Baden’s criticism: former city officials have maintained that the property was selected after alternatives were considered and that the arrangement was structured around the requirements of the city’s disaster recovery.

What remains disputed is whether that process was sufficient.

Was $20,000 a month a fair price?

Baden began raising questions about the transaction before he was elected to the council.

Among them was a basic real estate question: How did the city determine what the building was worth as a rental?

Baden has said the records he reviewed did not contain an appraisal, comparable lease analysis or other traditional market study establishing the rental value before the city entered into the agreement. KPLC reported that he specifically questioned whether the city had conducted a fair-market analysis.

That does not, by itself, establish that the rent was excessive or unlawful.

The city’s former finance director said several alternative properties had been considered and rejected because of cost or space limitations, and the city’s original 2024 council discussion included claims that the rent was less expensive than the modular facilities it was replacing.

The Attorney General request is intended in part to determine which procurement and valuation requirements actually applied to the transaction.

Then came the parking lot

The larger Public Bid Law question involves work performed after the city moved forward with the property.

Records reviewed by KPLC show 10X Services LLC, another company operated by Babineaux, invoiced the city $325,500 for parking lot and sidewalk work at 501 Willow.

Babineaux is therefore connected to the transaction in two capacities: BAB Rentals owns the property leased by the city, while 10X Services performed construction work associated with it.

Public Works Director Austin Abrahams told KPLC that the city interpreted the lease as requiring it to pay for the parking lot but not directly procure the construction contract. According to Abrahams, the owner was asked to obtain multiple quotes to support the cost.

That interpretation is now one of the issues under scrutiny.

Louisiana’s Legislative Auditor describes “public works” broadly enough to include construction or improvements to immovable property owned, used or leased by a public entity. The state’s Public Bid Law generally requires public work exceeding the statutory contract limit to be advertised and awarded through the required competitive process. The contract limit is $250,000, subject to statutory CPI adjustment procedures.

Whether the particular arrangement at 501 Willow legally falls within those requirements is precisely the kind of question the council is asking state authorities to resolve.

The $100,000 contribution

The parking project also involved money from Sulphur City Court.

KPLC reported that Abrahams emailed City Court Judge Charles Schrumpf in November 2024 asking whether the court would contribute $100,000 from its judicial building fund toward the parking lot.

Records show Schrumpf agreed, and a receipt dated Nov. 21 documented a $100,000 payment from Sulphur City Court.

The contribution matters because the full parking and sidewalk invoice totaled $325,500.

KPLC reported that the court contribution reduced the portion being paid directly by the city below the $250,000 Public Bid Law threshold then being discussed by officials. Baden has questioned whether separating the funding in that manner affected bidding requirements or amounted to an improper effort to avoid them.

No state agency has publicly concluded that bid splitting occurred.

That distinction is important: the council has raised the question; it has not adjudicated it.

State review was already expanding

By the time the Attorney General resolution reached a vote, the matter was no longer confined to the city council.

At the Aug. 24 meeting, current Mayor Jacob Stutes said his administration had already provided records to the Louisiana Legislative Auditor and the Calcasieu Parish District Attorney’s Office for review. He described the Attorney General request as an additional avenue for determining whether the transactions complied with the law.

The Louisiana Legislative Auditor routinely examines compliance with state procurement and public finance law by municipalities and other public bodies.

An Attorney General opinion is different from a criminal finding or court judgment. Attorney General opinions generally provide the state’s legal interpretation of Louisiana law based on the facts presented.

A divided council

The Aug. 24 discussion became contentious.

DiPetta argued that Baden’s presentation omitted relevant information and described the letter to the Attorney General as “incomplete” and “one-sided.” He also objected to how individuals were characterized in the request.

Baden defended the request and argued that outside review was necessary to determine whether the city’s handling of the lease and improvements complied with state law.

The exchange escalated to the point that DiPetta warned Baden he could be removed from the meeting for another outburst, while District 2 Councilman Troy Darby called for order.

When the vote was taken, however, the result was clear.

James LeDoux, Troy Darby, Danielle Monceaux and Josh Baden supported sending the matter to the Attorney General. DiPetta voted against it.

The resolution passed 4-1.

Baden had been questioning the deal before joining the council

The dispute also predates the current city government.

Baden began filing public records requests and publicly questioning the 501 Willow arrangement while still a private citizen. He later challenged District 4 incumbent Joy Abshire in the 2026 municipal election and won the seat by nine votes, 496 to 487.

Danahay did not seek another term as mayor.

That means the officials now reviewing the transaction are largely not the same officials who approved it. The 2026 municipal election produced an entirely new five-member council, according to reporting by The Current.

The original lease ordinance passed in October 2024 with Abshire, Dru Ellender and Mandy Thomas voting yes. Nick Nezat and Melinda Hardy were absent.

The legal question is now outside Sulphur City Hall

There are several separate issues buried inside the controversy.

The city entered into a substantial private lease while trying to relocate essential government operations after hurricane damage. Former officials say the chosen property met FEMA requirements and was preferable to the alternatives considered.

At the same time, records show public money was used for a $325,500 improvement to privately owned property, with $100,000 supplied by City Court, while the property owner’s company performed the work.

Louisiana law expressly contemplates that improvements to property leased and used by a public entity can qualify as public works.

Whether the specific structure used at 501 Willow complied with that law is no longer simply a political argument inside the council chamber.

The Legislative Auditor and district attorney have received records, and the City Council has now formally asked the Attorney General to weigh in.

Until those reviews are completed, allegations of bid-law violations, bid splitting or other misconduct remain allegations — not findings.

What is established in the public record is the money:

$20,000 per month in base rent.

$325,500 for parking and sidewalks.

$100,000 contributed by City Court.

And now, a 4-1 council vote asking the state to determine whether the process behind those expenditures complied with Louisiana law.

About the Author

Dalton Barron is an investigative reporter and Louisiana-licensed real estate salesperson affiliated with NextHome Bayou Pines.

His reporting focuses on public records, real estate, development, infrastructure, business, government, and local data across Southwest Louisiana.

Dalton Barron
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