Spirit-of-Charity-Innovation-District-Prospectus

Spirit of Charity Innovation DistrictAn area of untapped community promise and market potential for investment 7 Duncan Plaza City Hall Tulane Health Sciences Center Charity Hospital Vet

Spirit of Charity Innovation District Prospectus

September 2019

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A h i s t o r i c o p p o r t u n i t y i n

t h e m i d d l e o f o n e o f t h e

w o r l d ’ s g r e a t c i t i e s

A Renewed New Orleans

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PUNCHING ABOVE ITS WEIGHT

New Orleans named #3 Big City in the USA

ON THE MOVE

Named One of Ten Tech Markets to Watch

RISING TECH HUB

Recognized as a “Rising Tech Hub That May

New Orleans is at its

highest point, in nearly

every economic

development ranking,

in the city’s 300 year

history

Spirit of Charity Innovation District

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About Spirit of Charity

Innovation District

Spirit of Charity Innovation District

An area of untapped community promise and market potential for investment

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Duncan Plaza

City Hall

Tulane Health Sciences Center

Charity Hospital

Veterans Affairs

DXC Technology

Delgado Charity School of Nursing

LCRC

University Medical Center NOBIC

• 3.5M sf of existing office space

• 12 acres of surface parking

Major Employers & Assets

• Tulane Medical Center (235 beds)

• Tulane School of Public Health and Tropical Medicine (1,400+ students)

• Delgado Community College Charity School of Nursing (400+ students)

• City Hall

• New Orleans BioInnovation Center (NOBIC)

• 11,800+ jobs (2015) Source: GNOF

• The iconic building continues to

be the Spirit of Charity Innovation District’s major landmark

• Historic hospital held in

reverence by the people of New Orleans

The iconic building continues to be the

Spirit of Charity Innovation District anchor

institution

The development team is embracing several programmatic elements outlined in the Spirit of Charity Innovation District

Strategic Plan, including:

1 Tulane University (anchor tenant)

2 Housing (affordable and market rate)

3 Retail and Parking

4 Community Spaces

5 Potential Education Space for Orleans Parish School Board

CHARITY HOSPITAL

A Catalytic Redevelopment Process

for Spirit of Charity Innovation District

CENTRAL BUSINESS DISTRICT (CBD) ASSETS AND DEVELOPMENT

Class A office space and multi-family investments surround the Spirit of Charity Innovation District

University Medical Center

Veterans Affairs Hospital

Arena Superdome

Union Passenger

French Quarter

Mississippi

River

LCRC LSUHSC

for Downtown projects

• Representing 316 individual

projects

• 35% increase over 2017 (308

permits at $419,593,490)

• Superdome to the West

• Central Business District to the South

• French Quarter to the East

Four economically vibrant areas surround the Spirit of Charity Innovation District

• New Orleans is #1 in the Country for jobs growth in healthcare

• BioDistrict includes the Spirit of Charity Innovation District, and stretches farther north

• 1,500 acre District

• Over $2 billion invested in state

of the art facilities, including:

• Louisiana State University School of Medicine

• Louisiana Cancer Research Center

"We’re working also on a long-term extension of the Saints, keeping them here another 15 years, and with framework in place for another 15 beyond that So the goal is the to have the Saints here for 30 more years."

Governor John Bel Edwards

CENTRAL BUSINESS DISTRICT

Four economically vibrant areas surround the Spirit of Charity Innovation District

• The area holds over 13.9 million

square feet of office space

• Represents the largest concentration of jobs in

Louisiana with 62,000 jobs

FRENCH QUARTER

Four economically vibrant areas surround the Spirit of Charity Innovation District

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• Founded in 1718

• Heart of New Orleans tourism,

drawing over 17 million visitors

annually

• Home to eight New Orleans landmarks, including St Louis Cathedral and Jackson Square

• Hosts major events, including French Quarter Fest and

Southern Decadence

Spirit of Charity Innovation District:

Data

Spirit of Charity Innovation District LAND USE OVERVIEW

Reflecting a healthcare history and opportunities for further investment

17 Source: Charity Innovation District Briefing Book

Hotel Residential Retail

Other (I.e Downtown Library and Duncan Plaza)

All Occupational Licenses Hotels, Motels, B&B’s

Short Term Rentals Full Service Restaurants Alcohol Beverage Outlets Live Entertainment Permits

Spirit of Charity

Innovation District

14831482

Dominant Zip Code (70112)

58532N/A539213

City of New Orleans

11,5713494,5838611,454156

CURRENT REGISTERED BUSINESSES

Recent increases in Spirit of Charity Innovation District permitting total nearly $87 million in new construction—reflecting investments across the City

Public Transit

The Spirit of Charity Innovation District is the most transit accessible area in New Orleans—63% of the District has bus or streetcar access

• Workers from across New Orleans

commute into downtown through the Spirit of Charity Innovation District

transfer hub

• Three main circulation routes service

the Spirit of Charity Innovation District

• The Canal Streetcar line connects the

Spirit of Charity Innovation District to Mid-City, the rest of the CBD and the French Quarter

• A multi-modal transit hub is envisioned

for the district

CBD-3 Cultural Arts District:

Designed to address the Canal St Theater District

CBD-7

CBD-4

CBD-3

NEW ORLEANS OPPORTUNITY ZONES

In the City of New Orleans, much of the Central Business District (CBD), Medical Corridor and surrounding

neighborhoods are OZ’s

Anchor Institutions and Assets

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MAJOR EMPLOYERS

• The digital transformation company will

be hiring 2,000 employees in their Poydras Street office

• Average salary $63,000; full annual

payroll over $130M

• Total job impact, including indirect and

induced = 4,500

• Fueled by partnerships with local

two-year colleges and four-year universities

DXC TECHNOLOGY

The largest economic development

announcement in New Orleans and a

Spirit of Charity Innovation District

resident

• The Uptown campus is land-locked

and driving the university’s downtown growth

• Will serve as anchor tenant in the

former Charity Hospital redevelopment

• Tulane’s 35-acres within Spirit of

Charity Innovation District house the university’s:

o School of Medicine

o School of Public Health

and Tropical Medicine

o School of Social Work

o Administrative offices

TULANE UNIVERSITY

This key university partner occupies 1/3

of the Spirit of Charity Innovation District

• NOBIC is a $50MM wet-lab & office

building dedicated to research, innovation, and technology

commercialization

• The BioFund serves as NOBIC's

investment arm

• Both are located in the Spirit of Charity

Innovation District and a qualified opportunity zone

• The BioFund holds a proven

management & investment track record

• Offerings include pro-bono technical

assistance for affiliated companies

• Investments are across many industries,

but specialize in bio

NEW ORLEANS

BIOINNOVATION CENTER

(NOBIC) AND BIOFUND

• 1,041,300 square foot facility in

the heart of the Spirit of Charity Innovation District

• Currently used as a low-barrier

FORMER VETERANS AFFAIRS

HOSPITAL

FORMER WARWICK HOTEL

• 130,000 square foot former

hotel

• Purchased by New Orleans

Redevelopment Fund in June

2019 for $8 million

• $60 million renovation planned

for hotel/retail/commercial uses

DUNCAN PLAZA

• 4.5 acre public park and green space in

the Spirit of Charity Innovation District

• New Orleans Downtown Development

District currently overseeing redevelopment efforts

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Payroll Subsidies

• Quality Jobs Program (QJ): up to a 6% annual cash rebate on qualified payroll

expenses incurred by companies creating new jobs, for up to 10 years

• Digital Interactive Media and Software Development: an annual 25% tax credit on

qualified payroll expenses incurred by companies producing digital interactive

products or platforms

• Qualified Entertainment Company (QEC): an annual 15% or 20% tax credit on

qualified payroll expenses incurred by entertainment companies that create a

minimum of five net new jobs, each with a salary equaling or exceeding $45,000/yr.

• Enterprise Zone: a $3,500 or $1,000 one-time tax credit for each new job created, if

Investment Subsidies

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• Research and Development: up to a 30% annual tax credit on qualified research

expenditures incurred in Louisiana — with no cap and no minimum expenditure.

• Digital Interactive Media and Software Development: an annual 18% tax credit on

qualified production expenditures incurred by companies producing digital

interactive products or platforms.

• Quality Jobs Program (QJ): either a one-time state sales/use tax rebate on capital

expenses or a one-time 1.5% investment tax credit for qualifying expenses.

• Enterprise Zone: either a one-time state sales/use tax rebate on capital expenses or

a one-time 1.5 percent investment tax credit for qualifying expenses.

Investment Subsidies

Angel Investor: up to a 25% one-time tax credit to investors who invest in businesses

certified by the Louisiana Department of Economic Development (LED) as “Louisiana Entrepreneurial Businesses.”

Historic Rehabilitation Tax Credits: A federal income tax credit worth 20% of qualifying

expenses is available for the rehabilitation of historic, income-producing buildings When combined with the corresponding state historic tax credit worth 20% of the same

qualifying expense total, a one-time gross subsidy equal to 40% of building renovation

costs is generated.

New Markets Tax Credits (NMTC): A federal income tax credit worth 39% of a qualifying investment or loan made to a business within a qualifying census tract.

Property Tax Incentives

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Payment in Lieu of Taxes (PILOT): a series of annual tax payments, in amounts

negotiated in advance between a company and local government The company

benefits from lower and predictable tax bills while local government taxing bodies

receive a commitment to be paid a pre-determined amount annually over the life of the PILOT agreement.

Industrial Tax Exemption Program (ITEP): waives, for ten years, 80% of the property tax due on a manufacturer’s qualifying capital investment related to the manufacturing

process.

Restoration Tax Abatement (RTA: freezes for up to ten years the property tax due on

an existing building The tax is frozen at the building’s pre-renovation assessed amount.

Zoning Benefits

• Floor Area Ratio (FAR) governs the building massing

• The maximum FAR is 12, but can be increased via bonuses for green buildings, affordable housing, public space, landmark preservation and transit oriented development

• There are no maximum height restrictions: minimum height is 3 stories

• Under current zoning regulations, overall development capacity of the district as zoned is 47 million square feet, of which only 8–10 million has

Spirit of Charity Innovation District

Team

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STRATEGIC PLAN

Facilitated in 2018 by the Greater New Orleans Foundation, creates a new community vision for the District

Guiding Principles

• Mixed income community designed to “Live,

Work, Play, and Heal.”

• Economic development driven by job creation

• Equitable development and economic inclusion

• Small business development and local

hiring/training

• Live and work potential across all income levels

• Maintenance of historic fabric and culture

Retain Existing

Jobs

Incubate Small

and Local Businesses

Articulate Workforce Development Career Pathways

Promote Equitable Land

Use

Foster Local Retail and Attract Regional Retail

Engage Anchor

Institutions

Create 21 st

Century Green Infrastructure

Improve Mobility

and Transportation

Address Homelessness/

Transitional Housing

Build Affordable

Housing

Innovate On Early Childhood Development

Capitalize On Opportunity Zone Status

ENGAGING the Spirit of

Charity Innovation

District

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New Orleans – Metairie MSA New Orleans

New Orleans CBD Opportunity Zone

POPULATION OVERVIEW

POPULATION GROWTH

The area in the immediate vicinity of the Spirit of Charity Innovation District has experienced significant growth

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• Since 2000, the Central Business

District Opportunity Zone has grown by 62.5%

• The Central Business District

Opportunity Zone is the second fastest growing Census Tract in Orleans Parish when measured

by percent of population growth

Source: U.S Census Bureau, 2013-2017 American Community Survey 5-Year Estimates; 2000 U.S Census; PolicyMaps

INCOME SPENT ON HOUSING

For many working individuals living in or near the Innovation District, a significant portion of income is spent on rent

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• In Orleans Parish 35.5% of a

working individual’s income is spent on rent

• In the Central Business District

Opportunity Zone over 52% of a working individual’s income is

spent on rent

Source: U.S Census Bureau, 2013-2017 American Community Survey 5-Year Estimates; 2000 U.S Census; PolicyMaps

Insufficient Data 21.34% or less 21.35% - 23.19%

EQUITY INDICATORS AND AFFORDABILITY

Enterprise Opportunity 360 Measurement Report illustrates the difficulties and opportunities for cost-burdened households

INDICATOR

Spirit of Charity Innovation District CENSUS TRACT

REGION (CBSA)

Percent of People in Poverty (2013-17) 26.30% 18%

Share of 2-Bedroom Rental Units that are Affordable at 50% of AMI (2012-16) 13.76% 23.88%

Residential Vacancy Rate (2013-17) 32.49% 13.32%

Percent of All Low-Income Households that are Severely Cost-Burdened (2009-13) 45.53% 38.20%

HIGH HOUSING NEEDS DESIGNATION

Enterprise has determined the Spirit of Charity Innovation District census tract meets key criteria for greater housing investment

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MAJOR EMPLOYERS

The Innovation District sits in the middle of a major business hub

• Over half of the businesses in the Central Business District are considered large

% of Jobs at Firms with 500+

Employees

The Spirit of Charity Innovation District is located in the middle of one of the

highest concentration of workers in New Orleans

Source: Longitudinal Employer-Household Dynamics, 2015; PolicyMaps

Insufficient Data

297 or less

298 - 617

618 – 1,139 1,140 – 2,282 2,283 or more

Workers

Note: Number of workers is by employment location and includes only primary jobs The immediate vicinity of the Innovation district is defined as any census tract that touches the pink box (excludes French Quarter).

Immediate Vicinity

of Innovation District

Orleans Parish

New Orleans MSA

BLOCK GROUP 2, CENSUS TRACT 134 COMMUTING PATTERNS

INDUSTRY OVERVIEW

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Spirit of Charity Innovation District Block Group 2, Census Tract 134

Orleans Parish

New Orleans MSA

Health Care and Social Assistance 18.5% 12.3% 13.8%

Professional, Scientific, and Technical Services 10.3% 8.5% 6.4%

Administration & Support, Waste Management and Remediation 10.0% 6.1% 6.2%

Arts, Entertainment, and Recreation 7.9% 2.8% 2.1%

Management of Companies and Enterprises 7.8% 1.9% 1.7%

Accommodation and Food Services 6.4% 19.5% 12.8%

Other Services (excluding Public Administration) 2.4% 2.9% 2.7%

Real Estate and Rental and Leasing 2.0% 1.7% 1.8%

Source: U.S Census Bureau, 2011-2015 American Community Survey 5-Year Estimates

Note: Economic data is representative of workers who work in the geography regardless of where they live Jobs represent only primary jobs