Now we know what the "innovation district" was for

The "Spirit of Charity" planning process that has been going on in a parallel universe to the actual selection process for the Charity Hospital developer finally fits in to the big picture. It's basically a way to boost Kabacoff's bid. 

Subsidies: Unlike the Tulane Partners plan, HRI would rely on revenue from a tax-increment financing district proposed for an area of the CBD to surround the hospital. Tax increment financing uses tax revenue from future development, and in this case, HRI is proposing to divert $40 million in sales tax revenue from the 382,000 square feet of retail and 82 apartments across the street. The project would also rely on between $211 million and $224 million in tax credits. The option that includes City Hall as a major tenant would call for $91.6 million in prepaid rent, presumably from City Hall, as that financing element isn't called for in the other two scenarios.

We knew the Spirit Of Charity Innovation District meetings  headed up by Andy Kopplin and the Greater New Orleans Foundation was basically just an excuse to create a TIF.  But we weren't exactly sure who was set to benefit from that. It's not surprising that it would be Kabacoff given the way the non-profit industrial complex works around here. HRI (and, I suppose, GNOF) have also marshaled support from various other gangsters of that scene.

Tenants: LSU was provided commitment letters from Tulane University and the United Way for office space, the Historic New Orleans Foundation for museum space, Pythian Market for a grocery and Audubon Primary Academy for educational space.

Note also the "rent" from City Hall.  That's gonna be a fun budget item to talk about.  There is no public comment from LaToya or any of the councilmembers about the prospect of moving over there yet.  But  rest assured, they've been talking about it.

A recent edition of Danae Columbus's political gossip column hinted at this a few weeks ago. In that column, Columbus (a political consultant who has previously been accused of using her Uptown Messenger platform to promote her clients' interests)  described GNOF's sham public input process as "three lively, well-attended city-wide community workshops" and put a heavy thumb on the scale in favor of moving City Hall over to Charity.  It was pretty clear at that point what development model the insiders were favoring. Today's announcement only clarifies which firm's plan contains that model.

None of that is too too surprising.  But here is something else to look for.  If City Hall really does move into Charity, what happens to the old building?  Recall that this was originally Mitch's idea about 5 or 6 years ago.  Back then, he was pushing several projects at once to redevelop the area realtors now call "South Market District." These developments included the luxury/STR eligible apartment blocks that now dominate the area, a new Rouses grocery, the Loyola Avenue "streetcar to nowhere" and other curious arrangements that never panned out like this "Jazz District" partnership with the Grand Ole Opry. At the time we speculated that maybe that City Hall property would make an attractive spot for more hotel/luxury resort type development in the new downtown theme park.

Who knows what would happen to that space now? There are plans underway now to redesign Duncan Plaza.  I wonder if that picture changes a bit if the building next door suddenly needs to go "back into commerce"?  What would we do with that space?