Spirit-of-Charity-Innovation-District-Prospectus

Spirit of Charity Innovation District Prospectus September 2019 A historic opportunity in the middle of one of the world’s great cities A Renewed New Orleans GOING DIGITAL New Orleans is at its highest point, in nearly every economic development ranking, in the city’s 300 year history New Orleans ranked #1 for Growth in Technology Jobs in the USA HEALTHCARE BOOM New Orleans ranked #1 in the USA for Growth in Health Care Jobs 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 Surprise You” Spirit of Charity Innovation District About Spirit of Charity Innovation District Spirit of Charity Innovation District An area of untapped community promise and market potential for investment Existing Conditions • 116 acres • 6.7 acres of zoned public park land • 223 condominiums • 112 rental apartments • 70,365 sf of existing retail • hotels (580 rooms) • 3.5M sf of existing office space • 12 acres of surface parking Duncan Plaza City Hall Tulane Health Sciences Center 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) • DXC Technology • 11,800+ jobs (2015) Source: GNOF Charity Hospital DXC Technology Veterans Affairs Delgado Charity School of Nursing LCRC NOBIC University Medical Center CHARITY HOSPITAL The iconic building continues to be the Spirit of Charity Innovation District anchor institution • Th e i c on i c bui l d i n g c on ti n ue s to be th e Spi ri t of C h ari ty In n ov ati on D i s tri c t’ s major lan dmark • Hi s tori c h os pi tal h e ld i n re v e re n c e by th e pe ople of Ne w Orle an s • R e c e n t R FP award e d to 53 Tul an e P artn e rs – a partn e rs h i p be twe e n Ne w York bas e d de v e lope r, E l Ad U S Holdi n g , In c an d loc al de v e lope r, C C NO D e v e lopme n t CHARITY HOSPITAL A Catalytic Redevelopment Process for Spirit of Charity Innovation District The development team is embracing several programmatic elements outlined in the Spirit of Charity Innovation District Strategic Plan, including: Tulane University (anchor tenant) Housing (affordable and market rate) Retail and Parking Community Spaces Potential Education Space for Orleans Parish School Board CENTRAL BUSINESS DISTRICT (CBD) ASSETS AND DEVELOPMENT Class A office space and multi-family investments surround the Spirit of Charity Innovation District • $7 billion of investment since 2005 • 2018: permits totally $566,877,871 in construction costs issued for Downtown projects • Representing 316 individual projects Veterans University Affairs Medical Hospital Center LCRC Mississippi River LSUHSC Superdome Arena Innovation District • 35% increase over 2017 (308 permits at $419,593,490) 10 French Quarter Union Passenger Terminal 0.5 mi Class A Office Space Convention Center Recently Constructed/Renovated Multi-Family Units (since 2014) Hotel POPULATION OVERVIEW 2010 Population 2017 Population % Change 1,167,764 1,260,660 8% 343,829 388,182 13% 2,276 2,970 30% Spirit of Charity Innovation District 737 1,048 Block Group/Census Tract Source: U.S Census Bureau, 2013-2017 American Community Survey 5-Year Estimates 42% Geography New Orleans MSA New Orleans New Orleans – Metairie MSA New Orleans New Orleans CBD Opportunity Zone Block Group 2, Census Tract 134 42 CDB OZ POPULATION GROWTH The area in the immediate vicinity of the Spirit of Charity Innovation District has experienced significant growth • 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 43 Source: U.S Census Bureau, 2013-2017 American Community Survey 5-Year Estimates; 2000 U.S Census; PolicyMaps MEDIAN RENT 2017 Median Rent Insufficient Data $695 or less $696 - $850 $851 - $1,051 2012 –2017 Growth in Rent Insufficient Data -2.17% or less -2.16% - 6.43% 6.44% - 13.84% $1,052 – $1,362 13.85% - 24.25% $1,363 or more 24.26% or more Note: The median gross rent in Orleans Parish is $954 44 % Growth in Median Rent Median Gross Rent Rent in the area immediately surrounding the innovation district is often times higher than the city median, and is rising Note: The five-year percent change in median gross rent in Orleans Parish is 3.5% 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 • 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 % of Income Spent on Housing Insufficient Data 21.34% or less 21.35% - 23.19% 23.20% - 24.88% 45 Source: U.S Census Bureau, 2013-2017 American Community Survey 5-Year Estimates; 2000 U.S Census; PolicyMaps 24.89% - 27.33% 27.24%or more EQUITY INDICATORS AND AFFORDABILITY Enterprise Opportunity 360 Measurement Report illustrates the difficulties and opportunities for cost-burdened households 46 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% Percent of Renter-Households Receiving Housing Choice Vouchers (2017) 11.61% 14.51% HIGH HOUSING NEEDS DESIGNATION Enterprise has determined the Spirit of Charity Innovation District census tract meets key criteria for greater housing investment 47 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 employers • Surrounded by significant business activity, the Innovation District is able to accommodate both small and large businesses % of Jobs at Firms with 500+ Employees Insufficient Data 9.74% or less 9.75% - 23.12% 23.14% - 38.28% 48 Note: Only jobs at private firms are included Source: Longitudinal Employer-Household Dynamics, 2015; PolicyMaps 38.29% - 55.74% 55.75% or more JOBS The Spirit of Charity Innovation District is located in the middle of one of the highest concentration of workers in New Orleans Jobs Immediate Vicinity of Innovation District Orleans Parish New Orleans MSA 59,379 173,336 511,079 • The high concentration of labor presents unique opportunities for small businesses • Workforce housing in the area is also a pressing need which redevelopment in the Spirit of Charity Innovation District could address 49 Source: Longitudinal Employer-Household Dynamics, 2015; PolicyMaps Workers Insufficient Data 297 or less 298 - 617 618 – 1,139 1,140 – 2,282 2,283 or more 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) BLOCK GROUP 2, CENSUS TRACT 134 COMMUTING PATTERNS 453 18,544 Live outside block group, work in the block group Live in block group, work outside of the block group 65 Work and live in block group 50 INDUSTRY OVERVIEW 51 Spirit of Charity Innovation District Block Group 2, Census Tract 134 Orleans Parish New Orleans MSA Public Administration 20.6% 4.8% 3.9% 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% Information 3.7% 2.3% 1.5% 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 INDUSTRY OVERVIEW Average Hourly Wage Average Yearly Wage Public Administration $26.37 $54,850 Health Care and Social Assistance $23.57 $49,026 Professional, Scientific, and Technical Services $32.82 $68,266 Administration & Support, Waste Management and Remediation $17.69 $36,795 Arts, Entertainment, and Recreation $17.48 $36,358 Management of Companies and Enterprises $32.05 $66,664 Accommodation and Food Services $12.40 $25,792 Information $28.07 $58,386 Other Services (excluding Public Administration) $19.03 $39,582 Real Estate and Rental and Leasing $24.27 $50,482 Source: Emsi 2019.1 52 Note: Wage data is representative of Orleans Parish INDUSTRY OVERVIEW Spirit of Charity Innovation District Block Group 2, Census Tract 134 Orleans Parish New Orleans MSA United States Median Household Income $63,083 $38,721 $50,154 $57,652 % with a bachelor’s + 46.2% 28.2% 36.5% 30.9% Median Age 54.0 35.9 37.7 37.8 % of Population Aged 25-34 9.3% 18.5% 15.2% 13.7% Source: U.S Census Bureau, 2011-2015 American Community Survey 5-Year Estimates 53 Spirit of Charity Innovation District WORKFORCE PROFILE • 388 workers live in the Spirit of Charity Innovation District • The 8,660 jobs* in the District hold better wages than the City average and employ more women and African Americans • 24 people both live and work in the District • Sixty-one percent of District workers earn over $40,000/year • One-eight of the District workers earn less than $15,000/year (compared to the City average of 1/4) 54 CDFI INVESTMENTS A significant portion of the city’s CDFI investments have occurred in the immediate vicinity of the Innovation District • Nearly 1/4th of all CDFI investments in Orleans Parish occurred in the immediate vicinity of the Innovation District • Lenders have a strong history of investment in small businesses, affordable housing and commercial developments Amount ofCDFI Investment Insufficient Data $20 or less $21 - $101 $102 - $13,573 55 Source: CDFI Fund, 2014; PolicyMap $13,574 - $100,000 $100,001 or more NEW MARKET TAX CREDITS The New Orleans CBD is a hotbed of NMTC deals for not only the City, but the State of Louisiana • 11% of Louisiana’s 417 NMTC projects from 2012 – 2016 occurred in the immediate vicinity of the Innovation District • There is a strong track record of leveraged developments in the area • Both investors and developers are familiar with tax incentive structures and complex deals 56 Source: CDFI Fund, 2014; PolicyMap 2012 – 2016 NMTC Projects Insufficient Data or less or more