St. Thomas Hope VI Developer Agreement Evaluation/Negotiation
Lambert Advisory served as City of New Orleans’ negotiator on one of the most controversial projects in the City’s history - a tri-party development agreement between the city, Housing Authority of New Orleans, and one of the city’s largest developers associated with a $300 million development effort.
PROJECT SUMMARY
The St. Thomas public housing development was one of New Orleans largest and most troubled properties. While there was broad agreement that the property needed to be redeveloped, when a Walmart was proposed which was central to the project’s financing stack, the resident’s of the surrounding historic community responded with vitriol.
Lambert Advisory evaluated and served as the City of New Orleans’ negotiator with regard to a tri-party development agreement between the city, Housing Authority of New Orleans, and one of the city’s largest developers associated with this $300 million development effort. The evaluation and negotiations centered on securing a $25 million city investment in the 67-acre St. Thomas public housing redevelopment project through the increment financing tied to a Walmart. In return, the city was able to broaden the housing mix on the former public housing property and enhance the city’s long-term tax revenue. The firm was also able to successfully negotiate a development agreement with broad support given what had been considered one of the most controversial projects in the city’s history.
Today the former St. Thomas development, now called River Garden, is considered to be the flagship of the City’s former public housing properties which have been redeveloped since Hurricane Katrina. Property investment and values surrounding the property are among the fastest growing in the city.
