Market Study COVER_31Aug2011.ai 8/31/2011 1:04:29 PM
State of Louisiana Medical Center of Louisiana at New Orleans Charity Hospital Adaptive Reuse Market Study
31 August, 2011
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able of Contents
T1 Background and Process 1 Participants ...... 2 Options For Reuse ...... 3 Government...... 3 Biomedical ...... 4 Housing...... 4
2 Available Properties 5 Available Properties ...... 5 The State Intends to Retain ...... 9 The State Plans to Use Until 2014...... 10 Immediately Available ...... 11 Preliminary Floor Area Calculation...... 11
3 History of Charity Hospital 13 History of Charity Hospital ...... 13
4 Adjacent Development 15 Community and Development...... 15 Charity Hospital Complex Location ...... 15 Entergy Thermal ...... 16
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BioDistrict New Orleans...... 18 Potential Development Projects ...... 19 Schools ...... 19 The Planning Effort...... 20 Development Program ...... 20 Residential Development...... 22 South Market ...... 22 Rouses Supermarket ...... 23 Saratoga Lofts, The Maritime and 930 Poydras...... 23 Other Development ...... 24 Sports and Entertainment District ...... 24 Iberville Revitalization ...... 24 Historic Theater District ...... 25 Loyola Avenue Streetcar...... 26
5 Development Resources 27 Tax Incentives ...... 27 Historic Preservation Tax Incentives...... 27 Other Incentives an d Resources ...... 29
6 Supplemental Information 32
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Background and Process 1 The State of Louisiana, in accordance with the November 2008 Programmatic Agreement (see Supplemental Information), among the U.S. Department of Veteran Affairs, the Federal Emergency Management Agency, the City of New Orleans, the Louisiana State Historic Preservation Office and the Advisory Council on Historic Preservation regarding the funding to repair or replace Healthcare Facilities comprising the VA Medical Center and the Medical Center of Louisiana at New Orleans, seeks to find an adaptive reuse for several buildings, most notably the former Charity Hospital. The State is fulfilling the requirements of the Programmatic Agreement (PA) and would ultimately like to see the building redeveloped as it is a crucial component of the continued development of downtown New Orleans. Charity Hospital is one of nine historically significant buildings within the Medical Center of Louisiana at New Orleans (MCLNO). The intent of this Market Study is to provide information about the buildings, their potential uses, and economic development activities in the surrounding areas. Since Hurricane Katrina in 2005, the former Charity Hospital building has been unoccupied. Currently, Louisiana State University (LSU) Health System is preparing to remove the contents of the building.
Contact Information
The State of Louisiana has engaged Jacobs to develop this Market Study. All comments, requests and questions should be directed through the State at the following contact: Mark E . Bradley State of Louisiana, Office of Facility Planning & Control 1450 Poydras Street, Suite 1130 New Orleans, Louisiana 70112 Charity Hospital (504) 568-8545
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Participants During the development of the Market Study, the State solicited input from a broad base, the groups included are: ♦♦ State of Louisiana, Division of Administration, Office of Facility Planning and Control ♦♦ City of New Orleans ♦♦ New Orleans Downtown Development District ♦♦ Greater New Orleans Biomedical Economic Development District ♦♦ State of Louisiana Historic Preservation Office ♦♦ Regional Planning Commission ♦♦ Preservation Resource Center Group meetings on the topic of the Market Study were held on: ♦♦ September 8th-9th, 2010 – Interactive Planning Session (see Supplemental Information) ♦♦ September 30th, 2010 – Work Session (see Supplemental Information C) ♦♦ October 18th, 2010 – Public Meeting (see Supplemental Information D) ♦♦ March 15, 2011 - Public Meeting (see Supplemental Information E) ♦♦ March 30, 2011 - Public Meeting (see Supplemental Information F) Additional participants of the above meetings included representatives from the City of New Orleans Planning and Commission, Advisory Council on Historic Preservation, Committee to Reopen Charity, American Institute of Architects, National Trust for Historic Preservation, Foundation for Historic Louisiana and FEMA, among others. In addition, public input was sought at three meetings as indicated above.
Images from the Charity Hospital Complex Adaptive Reuse Work Session on September 30, 2010
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Options For Reuse Throughout the process of soliciting input regarding the potential adaptive reuse options for Charity Hospital, three primary reuses were identified: government, biomedical, and housing. Given the size of the building and the need for complimentary support services, the reuses for Government, BioMedical and Housing were discussed in the context of mixed use developments. Each of these reuses is further discussed in this section. Government
The participants suggested consideration of governmental reuse given Charity Hospital’s art deco architectural style and the iconic nature. The State of Louisiana has confirmed no interest from State agencies regarding the acquisition of the building, thus eliminating the agencies as potential occupants. In initial meetings, as well as subsequent follow-up meetings, the City of New Orleans has expressed interest to relocate City Hall to the former Charity Hospital site. This would likely require a form of public-private partnership. New Orleans City Hall and related support facilities are currently located in a variety of leased and owned facilities within downtown New Orleans. The fragmentation and multiple locations of City offices coupled with a high degree of deferred maintenance at the current City Hall building, provide a strong motivation for the City to consider a single location. Preliminary conversations yielded the following list of considerations from the City: ♦♦ The City currently resides in the following spaces: ◊ City Hall: addressed at 1300 Perdido Street with approximately 297,000 square feet and 770 staff ◊ Annex: addressed at 1340 Poydras Street with approximately 125,000 square feet and 307 staff ♦♦ The City understands the possibility of not being the sole tenant of the building, andremains interested in adjacent space utilization ♦♦ The City has security concerns related to public entry, as well as adjacent space utilization that would need to be addressed ♦♦ The City desires an office finish similar to other Class B office buildings in New Orleans ♦♦ The City prefers to time the potential occupancy with lease expirations at the Annex building ♦♦ The City desires a long-term lease, potentially with an option to buy at termination orother predetermined milestone dates ♦♦ The City has significant parking requirements for its staff that would need to be addressed ♦♦ The City desires to be in a facility that has achieved a minimum of LEED Silver Certification from the USGBC
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Biomedical
The buildings that the State seeks adaptive reuses for are all within the boundaries of the BioDistrict. An adaptive reuse of the former Charity Hospital building, or one of the other facilities for BioMedical research or support would be a natural fit in the area. Housing
The Downtown New Orleans residential population is growing quickly, and projected to continue this trajectory. Currently, several multifamily projects are either recently completed or poised for development. As these projects come online, Charity’s surrounding neighborhood will become an increasingly attractive place to live. The shift to higher density residential housing in Downtown will be one of New Orleans’ defining changes over the next decade, and will bring New Orleans in line with the residential patterns of many other major cities.
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Available Properties 2 Nine properties are addressed in the Programmatic Agreement. While the focus of this Market Study is the former Charity Hospital, the State plans to address all buildings within the complex that are listed below. A site map of the building locations is provided on the following page. The nine properties located within Charity Hospital Complex fall into three categories: Buildings to be retained by the State for long-term use
♦♦ Dibert Memorial Building addressed at 340 North Claiborne Avenue ♦♦ Lepeyre-Miltenberger Building addressed at 1550 Tulane Avenue ♦♦ Power House addressed at 422 Freret Street ♦♦ Laundry Building addressed at 405 LaSalle Street Buildings the State plans to use until 2014
♦♦ General Services Building addressed at 1508 Gravier Street ♦♦ Maintenance Shop addressed at 433 LaSalle Street ♦♦ Delgado Building addressed at 1545 Tulane Avenue ♦♦ Butterworth Building addressed at 1541 Tulane Avenue Buildings for immediate availability:
♦♦ Former Charity Hospital Building addressed at 1532 Tulane Avenue The State is flexible in their intention of each building, and would entertain alternate scenarios regarding long term use and timing of the buildings. Each building is described later in this section, and further documentation is located in this document under supplemental information. The State makes no warranty to the accuracy of the building documents.
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Figure 2.1: Available Properties
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Figure 2.2: Street Access
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The State Intends to Retain
Dibert Memorial Building
♦♦ Located at 340 North Claiborne Avenue ♦♦ 58,035 SF; 4 floors; built in 1926 ♦♦ Last functioned as a Primary Care Clinic ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine Lepeyre-Miltenberger Building
♦♦ Located at 1550 Tulane Avenue ♦♦ 52,615 SF; 8 floors; built in 1933 ♦♦ Last functioned as Wetmore TB Clinic/Outpatient Rehab ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine Power House
♦♦ Located at 422 Freret Street ♦♦ 19,345 SF; 2 floors; built in 1938 ♦♦ Last functioned as a utilities building ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine
Laundry Building
♦♦ Located at 405 LaSalle Street ♦♦ 37,276 SF; 4 floors; built in 1938 ♦♦ Last functioned as a laundry building ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine
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The State Plans to Use Until 2014 General Services Building
♦♦ Located at 1508 Gravier Street ♦♦ 15,574 SF; 2 floors; built in 1938 ♦♦ Last functioned as an office building ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine Maintenance Shop
♦♦ Located at 433/435 LaSalle Street ♦♦ 12,312 SF; 1 floor; built in 1938, 1950 ♦♦ Last functioned as a maintenance shop ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine Delgado Building
♦♦ Located at 1545 Tulane Avenue ♦♦ 15,665 SF; 3 floors; built in 1927 ♦♦ Last functioned as a primary care clinic ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine Butterworth Building
♦♦ Located at 1541 Tulane Avenue ♦♦ 22,651 SF; 5 floors; built in 1950 ♦♦ Last functioned as healthcare services office space ♦♦ Contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine
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Immediately Available Former Charity Hospital Building
♦♦ Located at 1532 Tulane Avenue ♦♦ 998,749 SF; 20 floors; built in 1939 ♦♦ Last functioned as a hospital ♦♦ FEMA determined Charity Hospital to be potentially eligible for individual listing under Criteria A and C in the NRHP in a letter dated November 3, 2005 ♦♦ Also contributing element to NRHP-eligible New Orleans Medical Historic District under Criterion A: Health/Medicine
For more details regarding the nine historic properties, see the FEMA Comments on the FP&C Draft Summary Report of Stabilization Measures for the Nine (9) Historic Properties of the MCLNO Campus located in this document under supplemental information. Preliminary Floor Area Calculation With the reuse of Charity Hospital still under development, and its final interior layout unknown, the preliminary floor area calculations provide a beneficial method of measurement and comparison of values of the existing space. Table 2.1 on the following page outlines the preliminary calculations. The measurements are based on the Building Owners Managers Association (BOMA) Standards for “Preliminary Floor Area” and is calculated by subtracting the areas of the major vertical penetrations, parking and occupant storage on a floor level from the interior gross area of that floor level.
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Table 2.1: Preliminary Area Calculations of the Former Charity Hospital
EXTERIOR GROSS INTERIOR GROSS VERTICAL PRELIMINARY AREAS OUTSIDE FLOOR LEVEL NOTES BY FLOOR AREA1 (EGA) AREA2 (IGA) PENETRATIONS FLOOR AREA3 OF EGA
A B C D E SF SF SF (=B-C) SF
BSMT 94,600 93,068 3,497 89,571 11,264
1 82,091 76,112 5,107 71,005 8,018
2 81,651 75,671 4,471 71,200 0
3 66,157 60,776 3,191 57,585 0
4 66,157 60,776 3,191 57,585 0 Same as Level 3
5 66,157 60,776 3,191 57,585 0 Same as Level 3
6 66,157 60,776 3,191 57,585 0 Same as Level 3
7 66,157 60,776 3,191 57,585 0 Same as Level 3
8 66,157 60,776 3,191 57,585 0 Same as Level 3
9 66,157 60,776 3,191 57,585 0 Same as Level 3
10 66,157 60,776 3,191 57,585 0 Same as Level 3
11 66,157 60,776 3,191 57,585 0 Same as Level 3
12 66,157 60,776 3,191 57,585 0 Same as Level 3
13 26,416 23,999 2,104 21,895 0
14 20,282 18,422 1,462 16,960 0
15 9,003 8,041 1,023 7,018 0
16 9,003 8,041 1,023 7,018 0 Same as Level 15
17 9,003 8,041 1,023 7,018 0 Same as Level 15
18 9,003 8,041 1,023 7,018 0 Same as Level 15
19 6,660 5,885 700 5,185 0
20 6,660 5,885 496 5,389 0
BUILDING 1,015,942 938,966 53,839 885,127 19,282 TOTALS
Notes: Values in this table represent square feet 1 Exterior Gross Area: Defined from BOMA’s “The Gross Areas of a Building: Methods of Measurement” document 2 Interior Gross Area: Defined from BOMA’s “Office Buildings: Standard Methods of Measurement” document 3 Preliminary Floor Area: Defined from BOMA’s “Office Buildings: Standard Methods of Measurement” document
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History of Charity Hospital 3 History of Charity Hospital Charity Hospital was founded in 1732, when Jean Louis, a French seaman and merchant who made New Orleans his home in the New World, died, leaving his entire estate to “establish and maintain a hospital for the poor people of New Orleans.” By the time the Civil War began in 1860, Charity was one Charity Hospital - Beginning 20th Century of the largest hospitals in the world, able to accommodate 1,000 patients at a time. The hospital remained open during the war, caring for soldiers from both armies. Charity Hospital has been a fact of life in its present location for so long, that today New Orleanians often think it has always been there and always been the same. However, Charity Hospital has been located in six different buildings and in four different locations during its 260+ years.
By the early 1930s, the old facility was crowded and out of Charity Hospital - Construction 1938 date. Louisiana’s populist Governor Huey P. Long made it a priority of his administration to build a fine, new hospital facility that would equal or better any other in the country. The Art Deco Charity Hospital building has anchored New Orleans’ downtown medical and commercial district since 1939. A landmark twenty-story building, Charity Hospital witnessed many medical advances in its prime, including ground breaking research on sickle cell anemia and appendicitis surgery, and was one of the first known Charity Hospital - Approximately 2005 blood banks.
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When Hurricane Katrina made landfall on August 29th, 2005 Charity Hospital was operating as a 345-bed hospital, largely catering to the region’s poor and un-insured. Damage from Hurricane Katrina and its aftermath permanently shuttered the Hospital, and prompted Louisiana State University and Veteran’s Affairs to initiate plans to build modern facilities adjacent to the hospital. Charity Hospital was closed as a result of the damage from Hurricane Katrina and has been vacant since. Charity Hospital - Approximately 2005
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Adjacent Development 4 Community and Development Charity Hospital Complex Location Location The Charity Hospital Building is located at 1532 Tulane Avenue, New Orleans, Louisiana 70112. It is located near the center of the New Orleans Metro Area, and is roughly one-quarter mile from The French Quarter to the East, Superdome to the West and New Orleans Central Business District to the South. Opposite of Tulane Avenue and across Claiborne from Charity Hospital, the Louisiana State University Medical School is constructing a $1.2 billion dollar replacement hospital in conjunction with current and future LSU research facilities. The Charity Hospital site is several hundred yards from U.S. Interstate 10 (I-10), the main transportation corridor for the New Orleans Metro Area, with easy access to I-10’s ramp system. This location can serve demands from both city and regional sources. Within the vicinity of Charity Hospital major transportation upgrades are underway. From its terminus at the Union Passenger Terminal, a new Regional Transit Administration (RTA) Street Car line will service the Loyola Avenue corridor, and stop two blocks from Charity Hospital’s front entrance before finishing at Canal Street’s theaters. Construction of the line, which is currently under design, is anticipated to be completed by April 2012. Future phases of streetcar expansion will stretch the line down Rampart (the Northern boundary of the French Quarter) and East to Press Street. Zoning Zoning for Charity Hospital’s site allows for a wide mix of uses. Adjacent to the site, the Loyola Corridor stretches from Canal and down Loyola Avenue to the Ponchartrain Expressway. This corridor is zoned to permit high density development, and is seen as the logical residential compliment to the many CBD Office towers immediately to the south. Charity Hospital’s neighborhood is emerging as a mixed-use and walk-able, urban district. It sits between the Tulane Medical Center, City Hall, and an emerging residential corridor along Loyola Avenue. The potential to integrate a mix of uses into the fabric of the Charity Hospital would most likely be a sustainable option for redevelopment. The City of New Orleans is currently preparing a comprehensive zoning ordinance based on post-Katrina Master Planning efforts and discussions. Conversations with the City of New Orleans Planning Department confirm the zoning for Charity Hospital will allow for a variety of options and uses on this site. For more information regarding zoning, please contact Deputy Director of Planning Leslie Alley at [email protected].
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Charity Neighborhood Developments In Progress
The former Charity Hospital Building, and other historically significant buildings, are situated amidst booming Downtown New Orleans where residential population is quickly growing while projections continue on this trajectory. As lifestyle amenities come online, Charity Hospital’s neighborhood becomes a more attractive place to live. The shift to high density residential housing will be a change that continues to define New Orleans over the next decade. This growth compares with residential patterns of other major cities. In all, Downtown New Orleans boasts over $3 billion in recently completed and current development. Entergy Thermal
Entergy Thermal currently has facilities in place to provide steam and chilled water to the Charity Hospital Complex. The facilities are located on the corner of Tulane Avenue and LaSalle Street in New Orleans. The facilities are designed to provide up to 3,000 tons of chilled water cooling (via 2 x 1,500 ton plate and frame heat exchangers located in the Entergy Thermal plant) and 25,000 lbs/hr. of steam at 250 psi. Under normal operating conditions each chilled water heat exchanger is designed to deliver water at 44 degrees Fahrenheit to the Charity Hospital Complex when 56 degree Fahrenheit is returned.
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Figure 3.1: Anticipated Development Near the Former Charity Hospital Complex
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BioDistrict New Orleans The BioDistrict is a 1,500-acre area in the heart of the City of New Orleans, spanning portions of the Central Business District, Mid-City and Gert Town neighborhoods. The BioDistrict is bounded by Loyola Avenue, Iberville Street, Carrollton Avenue, and Earhart Boulevard, and includes the City’s judicial center, LSU and Tulane Health Science Centers, Xavier University and its School of Pharmacy, and the Charity School of Nursing for Delgado Community College, to name just a few key institutions. BioDistrict New Orleans has endorsed a leading strategy to integrate and leverage the cornerstone developments of a new academic teaching hospital referred to as the University Medical Center (UMC), a new Veterans Affairs (VA) Hospital, the Louisiana Cancer Research Center, and the New Orleans BioInnovation Center. The long-term mission of BioDistrict New Orleans is to build a globally competitive and innovative economy for the New Orleans region and beyond by utilizing catalytic institutional investments to: Louisiana Cancer Research Center ♦♦ Provide the finest 21st Century health care ♦♦ Teach a new generation of medical professionals cutting- edge techniques ♦♦ Perform globally competitive biomedical research; grow and attract entrepreneurial companies ♦♦ Create educational learning opportunities at all levels ♦♦ Expand local employment opportunities for everyone ♦♦ Anchor a vibrant, mixed-use urban community that contains the healthiest, smartest, and most sustainable Bio Innovation Center neighborhoods
BioDistrict 1,500 Acres
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Potential Development Projects
Projects considered for development within the BioDistrict include the following: ♦♦ Mixed-use BioDistrict Village ♦♦ Research and Development Corridor ♦♦ Civic Center Redevelopment including City Hall, Municipal Courthouse, City Library and Duncan Plaza ♦♦ Allied Health Campus ♦♦ Gert Town / Xavier University Town Center ♦♦ Tulane Avenue Redevelopment as “Smart Street” ♦♦ Clean Bioscience Related Manufacturing Business Park ♦♦ Infrastructure and Utility Upgrades throughout the BioDistrict Schools
♦♦ Three New Charter High Schools: Math and Science High School, Arts & Technology and Allied Health ♦♦ Re-opening of Gert Town Elementary School
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The Planning Effort
BioDistrict New Orleans is currently undertaking a comprehensive planning effort. The objective of this effort is to create a short- and long-term vision and associated “Action Plan” for the BioDistrict. The plan will identify a realistic and achievable framework for economic development, and identify and analyze sustainable public realm improvements. These improvements increase vehicle, pedestrian, and infrastructure connectivity; increase affordable and market-rate rental and home ownership opportunities; enhance streetscape design; increase green space and community space; enhance retail and commercial uses; and promote creative ideas to enhance the BioDistrict for future biosciences industry creation and economic development. Development Program
The following is the conceptual program for various facilities within the BioDistrict that servesas the foundation for overall planning process for the BioDistrict. Specific areas of focus include: global medical and bioscience research market trends; potential industries that could be targeted for the BioDistrict; medical, biosciences and research-related facilities and their anticipated demands; sustainability programming; and community facilities needs. Key items provided relative to global medical and bioscience research market trends include a review of the following: ♦♦ Research of the current condition of bioscience industry in New Orleans, the state and the nation ♦♦ Financial trends for biosciences for New Orleans’ universities and within the industry overall ♦♦ Building trends within the biosciences industry including research on state-of-the-art biosciences facilities and most recent biosciences-related building configurations The program study anticipates need for the following facilities within the BioDistrict: ♦♦ Biosciences, medical, research and other institutional-related facilities ♦♦ Parks and open space, transportation, district energy and infrastructure-related facilities ♦♦ Schools, housing and social service-related facilities
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The programming information provided outlines proposed quantity and type of space mix desirable within the BioDistrict over 5-, 10-, and 20-year periods. This data will be a fundamental driver of the future population, density, Floor Area Ratio (FAR) and other related projections, all of which are inextricably linked to economic activity, transportation, recreation, entertainment, retail, housing and other infrastructure needs for the BioDistrict and the region. Market-driven and institutional development in the BioDistrict over the course of the 20-year planning period is estimated to be in excess of 13 million square feet. Nearly 7 million square feet of this development is anticipated within the next 5 years.
Project Legacy Main Entrance Rendering Project Legacy Site Rendering
University Medical Center Rendering
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Residential Development The Downtown New Orleans residential population is growing quickly, and projected to continue this trajectory. Several multifamily projects are either recently completed or poised for development. As these projects come online, Charity’s surrounding neighborhood will be one of New Orleans’ defining changes over the next decade, and will bring New Orleans in line with the residential patterns of many other major cities. South Market
Across from the Hyatt and Superdome Sports and Entertainment District, high-end transit-oriented development has been proposed. Branded as “South Market”, the development will mix concierge residential units, a boutique hotel, and roughly 100, 000 square feet of street level retail. Domain has several projects in New Orleans, and envisions serving the New Orleans growing population of young professionals.
South Market Streetscape Rendering
South Market Site Plan South Market Site Rendering
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Rouses Supermarket
Among the new amenities supporting residential development in Charity’s neighborhood is the exciting conversion of a 40,000 square feet former auto dealership into a Rouses Grocery Store. Opening in 2011, Rouses Supermarket is within walking distance from the former Charity Hospital building. Saratoga Lofts, The Maritime and 930 Poydras
High-end residential units have boosted residential population of Downtown New Orleans. New residential units are typified by an emphasis on design, premium construction, and tailored to those who prefer urban living. Many of the Downtown residential units are geared towards housing the affluent professionals who will work in the Bio District. The Saratoga Lofts provide an excellent example of new residential development aimed at medical professionals.
Saratoga Loft The Maritime
930 Poydras
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Other Development Sports and Entertainment District
The Louisiana Superdome is undergoing a substantial re-make as a Sports and Entertainment District for the millions of visitors it receives every year. In addition to being the home of the New Orleans Saints, the Superdome will house the annual Sugar Bowl, a 2012 NCAA Final Four Championship and the 2013 Super Bowl. Within the same district is the New Orleans Arena, which is home of the New Orleans Hornets and hosts several other events. In response to the sports and entertainment district, the 1184 room Hyatt Hotel is also undergoing renovations. Iberville Revitalization
Within Charity Hospital’s immediate neighborhood, is another one of the large public housing projects pending re-development as a mixed-use, mixed-income neighborhood. The Iberville housing development will be revitalized under the guidance of Housing and Urban Development’s (HUD) Choice Neighborhoods Program. The Iberville revitalization effort has already created substantial demand for housing in the immediate vicinity. A crucial component of the Iberville revitalization program is that the former public housing units be replaced “one-to-one” into mixed-income buildings within the surrounding neighborhood. Charity Hospital’s re-use could attract a considerable demand for mixed-income housing, resulting from the programmatic requirements of the Choice Neighborhood Program.
Iberville Location Aerial
Iberville Revitalization Rendering Iberville Revitalization Siteplan
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Historic Theater District
In close proximity of Charity Hospital is the New Orleans Historic Theater District. The district is at the intersection of Canal Street and Rampart, with four historic theaters and anchored by the $65 million renovation of the Saenger Theater (scheduled to open its doors in 2012). The Saenger is being refitted to host traveling Broadway productions and other live performances. The remaining three theaters: The Loews, The Joy, and The Orpheum, have proposals to show a variety of live entertainment compliment the Saenger’s Broadway shows.
Vision diagram for downtown
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Loyola Avenue Streetcar
Major Transportation upgrades are also under development in vicinity of Charity Hospital. From its terminus at the Union Passenger Terminal, a new Regional Transit Administration (RTA) Street Car line will service the Loyola Avenue corridor, stopping a mere two blocks from Charity’s front entrance before continuing past Canal Street’s theaters and Press Street. The Streetcar line may also someday join a light rail line proposed to operate between Baton Rouge, the River Parishes, and New Orleans. The proposed light rail line would dramatically increase the passenger traffic in and out of the Union Terminal and New Orleans. Current construction funding terminates at Canal. However, RTA has secured bonds and initiated the engineering work to extend service to Press Street. These extensions will provide a street car line that spans the City from Uptown to Bywater.
Proposed and existing rail-transit routes downtown
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Development Resources 5 Tax Incentives Several strategies have been identified as potential mechanisms to assist in the redevelopment of Charity Hospital. Below is a list of those mechanisms. Historic Preservation Tax Incentives
The Louisiana Division of Historic Preservation administers the Federal Rehabilitation Tax Credit in conjunction with the National Park Service (NPS) and Internal Revenue Service (IRS), and two State tax credits in conjunction with the Louisiana Department of Revenue (LDR). The purpose of tax credits is to encourage the preservation of historic buildings through incentives to support rehabilitation of historic and older buildings. Since the inception of the Federal Rehabilitation Tax Credit, Louisiana has been a leader in certified tax credit projects, generating over $2 billion in private reinvestment in Louisiana communities. The State Commercial Tax Credit has leveraged more than $350 million in private reinvestment in Louisiana Downtown Development Districts and Cultural Districts. Applications for both federal and state tax credit programs must be submitted to the Louisiana Division of Historic Preservation. Additional information about these Tax Incentives may be obtained at www.louisianahp.org (click on tax incentives), or by contacting the Louisiana Division of Historic Preservation office at (225) 342-8200. Federal Historic Rehabilitation Tax Credit ♦♦ The Federal Rehabilitation Tax Credit is for 20% of the cost of rehabilitation expenses for an income producing building ♦♦ The credit is available for income-producing properties that contribute elements to a National Register Historic District, or individually listed on the National Historic Register. All properties must be certified by the NPS ♦♦ To qualify, the rehabilitation work must exceed the adjusted basis for the building (either the purchase price minus the value of the land, or the current depreciated value)
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State Commercial Tax Credit ♦♦ The building must be a contributing element to a Downtown Development District (DDD) or a Cultural District ♦♦ The building must be used for an income-producing purpose ♦♦ The Tax Credit is equal to 25% of all eligible expenses to rehabilitate the historic structure ♦♦ Eligible expenses must exceed $10,000 ♦♦ This credit may be used in addition to the Federal Historic Rehabilitation tax credits, provided the most stringent program requirements are met. It may also be combined with the State Residential Tax Credit Program if the building is mixed-use ♦♦ Please note that this tax credit program was extended through December 31, 2015 as a result of the 2011 Regular Legislative Session ♦♦ Developers should contact Jessica Richardson, Tax Incentives Reviewer, Louisiana Division of Historic Preservation at (225) 342-8160 or [email protected] for more information. Restoration Tax Abatement Program The Restoration Tax Abatement (RTA) is administered by the Louisiana Department of Economic Development through the Board of Commerce & Industry. The program provides a five-year property tax abatement for the expansion, restoration, improvement and development of existing commercial structures and owner-occupied residences. ♦♦ The Restoration Tax Abatement Program grants a five-year deferred assessment of the Ad Valorem Property Taxes assessed on renovations and improvements ♦♦ Taxes are based on assessed value of the property prior to any improvements ♦♦ Equipment that becomes an integral part of that structure can qualify for this exemption ♦♦ The program does not exempt the acquisition cost of the structure ♦♦ Commercial property owners and homeowners must expand, restore, improve or develop an existing structure in Downtown Development Districts, Economic Development Districts or Historic Districts; properties listed on the National Register of Historic Places are also eligible To apply, an applicant must first log in to FastLane through the LED web site(www.fastlane. louisianaeconomicdevelopment.com) and fill out an Advance Notification Form. The form should be filed prior to any construction activity, as some local governments may not be conducive to granting requests for this tax exemption if the project has commenced. Questions may be directed to: Randy Veillon (225) 342-2418 [email protected] www.louisianaeconomicdevelopment.com
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Other Incentives and Resources Other incentives include (1) New Market Tax Credits, Low Income Housing Tax Credits (LIHTC), HUD Section 221 (d) (3) and Payment In Lieu of Taxes (PILOT). For other resources see Traffic Counts, http://www.norpc.org/traffic_counts.html. For more information on additional incentives not listed below, see also “Incentive-Driven Development in Metropolitan New Orleans” written by the Metro Design Group which can be found in the supplemental information section of this document.
New Market Tax Credit Program The New Markets Tax Credit program encourages investment in urban and rural low-income areas. Private-sector investors receive credit against federal income taxes. The program allows corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities, or CDEs. Credits can be obtained every year the investment is held, for up to seven years of the credit period. For information regarding the New Markets Tax Credit Program, contact the program administrator: Mike Williams (225) 342-5360 [email protected]
Low Income Housing Tax Incentive To qualify for tax credits, the proposed development must involve new construction or substantial rehabilitation of existing residential units that is occupied by low income individuals and families. The costs associated with the development of these low income units are the building’s eligible basis. However, there are certain project costs not subject to inclusion into eligible basis. The housing credit is not available for any of the following facilities: hospitals, nursing homes, sanitariums, life care facilities, retirement homes (if providing significant services other than housing are mandatory for residents), employer housing, mobile homes and dormitories. Consult a housing credit tax advisor or Section 42 of the Code for more information. LHFA’s QAP provides information on the calendar year program including minimum project requirements, competitive criteria and underwriting criteria. To learn more about the Low Income Housing Tax Credit program, contact [email protected].
Payments in Lieu of Taxes (PILOTs) Payments in Lieu of Taxes are the result of a contractual agreement between a developer and a conduit issuer of Private Activity Bonds. To assist in the financing of deals which provide a discernible public benefit, entities that issue bonds often take title to the bond-financed facilities. Subsequently, the facilities are leased back to the developers. During this period, the property is exempt from ad valorem taxation because the title is held by a public or non-profit entity. Developers then make a payment in lieu of taxes typically equal to at least the pre-development level of taxation on the property. Combined with both tax-exempt bonds and sale-leasebacks, a PILOT encourages new development by providing developer with lower property taxes and facilitates the development of projects which provide public benefits.
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Supplemental Information
PAGE INTENTIONALLY LEFT BLANK 6 The information for the following documents can be found on the 106 consulting website. For access to the Consult 106 website, please go to http://www.consult106.org and use Login Id: c106consultant and Password: c106consultant.
♦♦ Programmatic Agreement (106 website) ♦♦ Programmatic Agreement, Stipulation VI.C.2.b., Secure and Ventilate Report (106 website) ♦♦ Downtown New Orleans, An Opportunity for Investment - New Orleans by the Numbers (106 website) ♦♦ Downtown New Orleans, An Opportunity for Investment (106 website) ♦♦ Worksessions & Public Meetings (106 website) ◊ 2010 September 8-9: Worksession ◊ 2010 September 30: Worksession ◊ 2010 October 18: Public Meeting ◊ 2011 March 15: Public Meeting ◊ 2011 March 30: Public Meeting ♦♦ Senate Concurrent Resolutions ◊ Regular Session, 2010 Senate Concurrent Resolution No. 69 by Senator Peterson (106 website) ♦♦ Charity Hospital Complex AutoCAD Drawings ◊ MCLNO Properties (106 website) ◊ Dibert Memorial Building (106 website) ◊ Lepeyre-Miltenberger Building (PDF file only) (106 website) ◊ General Services Building (PDF file only) (106 website) ◊ Maintenance Shop (106 website) ◊ Delgado Building (106 website) ◊ Butterworth Building (106 website) ◊ Former Charity Hospital Building (106 website) ♦♦ Tax Incentives ◊ Incentive-Driven Development in Metropolitan New Orleans (106 website) ♦♦ FEMA Comments on the FP&C Draft Summary Report of Stabilization Measures for the Nine (9) Historic Properties of the MCLNO Campus (106 website) 19-619-06B-04, PART 33 32 | supplemental Information
♦♦ Third Party Studies: Biomedical ◊ Real Estate Programming for BioDistrict New Orleans (106 website) ◊ Analysis of the Economic Impact of the Biosciences and Healthcare Sectors in NO Region (106 website) ◊ Charity Hospital Medical Merchandising Mart and Hotel (106 website) ◊ Innovations in Hospital Architecture (106 website) ◊ Medical Center of New Orleans Charity Hospital Feasibility Study Foundation for Historic Louisiana (106 website) ♦♦ Third Party Studies: Residential ◊ South Market District (106 website) ◊ Target Market Descriptions, An Analysis of Residential Market Potential - The City of New Orleans, LA (106 website) ◊ An Analysis of Residential Market Potential, The City of New Orleans (106 website) ◊ An Analysis of Residential Market Potential, The Earhart Development Area, The City of New Orleans, LA (106 website) ◊ An Analysis of Residential Potential - The Convention Center South Development Area, The City of New Orleans, Louisiana (106 website) ◊ An Analysis of Residential Potential - The New Orleans East Development Area, The City of New Orleans, Louisiana (106 website) ◊ Greater New Orleans, Multi-Family Report, Number 15 (106 website) ♦♦ Project Examples ◊ North Hollywood Mixed-Use Redevelopment Project Community Benefits Program (106 website) ◊ Ballpark Village Project Community Benefits Agreement (106 website) ◊ Attachment A Community Benefits Program (Los Angeles Sports and Entertainment) (106 website) ◊ BioDistrict, Visioning Session, Community Benefits Agreements (106 website) ◊ State of Florida Department of Health, Request for Information DOH 06-082 A.G. Holley Tuberculosis Hospital (106 website)
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