Predevelopment Agreement for Redevelopment of Charity Hospital in New Orleans to go Before LSU Board of Supervisors Jan. 25
BATON ROUGE – The LSU Real Estate and Facilities Foundation (i.e., LSU REFF) has put forth to the LSU Board of Supervisors a proposed predevelopment agreement with 1532 Tulane Partners (a partnership between El-Ad US Holdings and CCNO Development LLC) for the adaptive reuse of the former Charity Hospital Building at 1532 Tulane Ave. in New Orleans, adjacent to the LSU Health New Orleans campus. The LSU Board of Supervisors will consider the agreement at its Jan. 25 meeting in Shreveport; related documents are available at https://lsu.edu/bos/minutes.php.
Upon approval by the LSU Board of Supervisors, the agreement, which will govern the parties’ obligations during a 6-12 month due diligence period, will be signed by 1532 Tulane Partners and the LSU REFF’s subsidiary, Charity Hospital Redevelopment LLC. Following the due diligence period, proposed lease documents will be presented to the LSU Board of Supervisors for consideration and approval. Subsequently, LSU will enter into a ground lease with Charity Hospital Redevelopment LLC, which will then sublease the Charity Hospital land and building to 1532 Tulane Partners.
Upon execution of lease documents, Charity Hospital Redevelopment LLC, the LSU REFF, LSU and the State of Louisiana will not have any responsibility for operations and maintenance of the facility. 1532 Tulane Partners, as the developer, will be solely responsible for all costs and operations of the building, as well as for selecting and contracting with residential, retail and commercial tenants. Currently, the developer anticipates that the building will be occupied by both residential and commercial tenants, with the potential for a small amount of retail on the ground floor, and is committed to devoting a portion of the residential space to affordable housing.
Negotiations for the predevelopment agreement have been in process since October, when the LSU Charity Hospital Redevelopment Project Management Committee identified and the LSU REFF approved 1532 Tulane Partners as the preferred developer team. This recommendation was the culmination of a rigorous, six-month competitive selection process led by the committee in partnership with JLL, the LSU REFF’s project advisor. Information about the rationale for recommending 1532 Tulane Partners can be accessed online at www.charityprojectneworleans.com.
Contact Ernie Ballard
LSU Media Relations