According to SI.com, Shinn says the downtown spot would help lure an NBA All-Star game to New Orleans, delivering tens of millions of dollars, a weekend full of events and national TV exposure for the city.
But the problem is that Shinn promised members of the City Council two years ago that he would build the practice facility in a different area, miles away in eastern New Orleans.
At the time, Shinn's promise raised hopes that the facility would help the neighbourhood emerge from years of economic troubles.
Council members have said Shinn is welcome to build the facility anywhere in the city - but city money will only go towards a site in eastern New Orleans.
Shinn's deal with the city allows him to build the facility in New Orleans - it does not specify a location. The team, state and city signed an agreement that says the city and/or state will pay up to $6.5million for a practice facility that meets NBA standards.
Shinn said league executives have advised him that failure to build the training centre next to the arena would scupper New Orleans' chances of landing an All-Star Game.
He said the dispute has concerned NBA commissioner David Stern, who was not a supporter of the decision to move the Hornets from Charlotte, N.C., to the smaller New Orleans in 2002.
"The league still has concerns about the viability of this market and whether it can sustain an NBA team," Shinn said. "And if the city isn't able to live up to its commitment to build a practice facility, it will just fuel this concern that much further."
Shinn's change of heart is reported to have not gone down well with eastern New Orleans residents, politicians and business leaders.
