Ohio-based development group Edwards Communities secured a $6 million tax break from the Industrial Development Board (IDB) this week for their 382-unit apartment complex next to Bayou St. John and the Lafitte Greenway.
On Tuesday, the IDB voted to provide the project with a payment in lieu of taxes, or PILOT. The PILOT allows the developers to pay $56,000 a year in taxes during construction, $160,000 a year once construction is complete, annual 2.5% elevations each year thereafter, and a $75,000 bump in 2025.
The IDB estimates that the PILOT will save about $6 million over the 12 years of the deal, while developers claim that the project will generate $29 million more in property taxes for the city over a 50-year period.
The development site is bounded by the Lafitte Greenway, Jefferson Davis Parkway, North Scott and Conti Streets. In addition to the one and two bed room apartments, the mixed-use project will have ground floor retail and restaurants and parking spaces for 570 cars. The projected project cost is $66.5 million.
Entrepreneur Sydney Torres purchased the nine-acre site in 2015, and Edwards Communities has it under contract to purchase the site from Torres. Our sources tell us that Torres plans to keep the front of the parcel closest to Bayou St. John for future development, while giving the back portion of the parcel to Edwards Communities for this project.
Edwards Communities secured city approval for the project in November and a density bonus after agreeing to include 14 affordable units in the project.