Clearly this is the only way they could finance this project

Barry Kern, Joe Jaeger, and Arnold Kirschman aren't the sort of people who can swing the credit to develop property in New Orleans.  Humble disadvantaged small time developers like that are going to need a little help. That's what public subsidies like this are for.

The building sold in 2016 for $3.5 million to local investors Joe Jaeger, Arnold Kirschman, Barry Kern and Michael White. In addition to the tax approved Thursday, Drive Shack has secured a 12-year freeze on its property taxes in lieu of paying the city nearly $260,000 annually.

Per the latest agreement, Drive Shack would receive three-fourths of tax proceeds leveled through the newly created Broad Street Sports Entertainment and Dining Economic District, which covers only the area where The Times-Picayune building sits. The city would receive one-fourth of the tax proceeds and is obligated to undertake up to $450,000 in street improvements around the site. If, however, the city is able to reconnect Howard Avenue with the Central Business District, the city and Drive Shack would then split tax proceeds 50-50.