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Tax Incentives 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 19-619-06B-04, Part 33 JACOBS CHARITY HOSPITAL ADAPTIVE REUSE: MARKET STUDY | I PAGE INTENTIONALLY LEFT BLANK 19-619-06B-04, PART 33 ii | 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 19-619-06B-04, PART 33 CHARITY HOSPITAL ADAPTIVE REUSE: MARKET STUDY | III 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 For access to the Consult 106 website, please go to http://www.consult106.org and use Login Id: c106consultant and Password: c106consultant 19-619-06B-04, PART 33 CHARITY HOSPITAL ADAPTIVE REUSE: MARKET STUDY | 1 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 19-619-06B-04, PART 33 2 | Background and Process 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 19-619-06B-04, PART 33 CHARITY HOSPITAL ADAPTIVE REUSE: MARKET STUDY | 3 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, and remains 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 or other 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 19-619-06B-04, PART 33 4 | Background and Process 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. 19-619-06B-04, PART 33 CHARITY HOSPITAL ADAPTIVE REUSE: MARKET STUDY | 5 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.
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