Following its construction in 1938, Charity Hospital New Orleans immediately became a beacon of quality medical care, dramatically expanding the public healthcare resources of the city and surrounding area, as well as earning a national reputation in handling trauma. It also was the impetus for the development of a sizable medical district that organized around it, featuring two prominent medical schools with their own hospitals, as well as multiple specialty clinics and a nursing school. During the collapse of the levee system during Hurricane Katrina, “Big Charity” as it was fondly known then, shuttered its doors, a severe blow to its surroundings.
The city and the area came back from the devastation of the storm, with the Tulane University Medical School, hospital and clinics leading the way by re-opening first. The facility formerly referred to simply as Charity re-located nearby after building a new campus of hospital/clinic/training facilities under its official name of LSU Health Sciences System with its related entity the LSU Health Care Delivery System. The New Orleans Veterans Administration Medical Center also built new facilities located on an adjoining campus. The two combined represent an investment of approximately $4.5 billion into the area and extended the existing medical district physically, as well as dramatically expanding the services offered.
The LSU Real Estate and Facilities Foundation has selected 1532 Tulane Partners, Inc. as the developer for an adaptive reuse of the facility that will take its place in the burgeoning future of the surrounding district. It will become a mixed use building with commercial office and retail users, as well as residential space. A historic approach is being taken in cooperation with the Louisiana Dept. of Culture, Recreation and Tourism and the National Park Service. There will be greater public access to this cultural landmark with space devoted to the history of the building and the art of Enrique Alférez. The existing landmark appearance of the building will be restored, and street access will be far more open, with landscaped courtyards offering outdoor café and entertainment seating.
Charity Hospital Redevelopment
As the developer, the focus of 1532 Tulane Partners, Inc. is on creating a vibrant center of neighborhood activity with its historic adaptation of the one million square foot former Charity Hospital building. Its overall development combines historic preservation interests with a planned renewal of the surrounding community’s business life and participation. Charity will serve as the hub with effects reaching far beyond the walls.
1532 Tulane Partners, Inc.
1532 Tulane Partners, Inc. is a Louisiana corporation created for the purpose of redeveloping the former Charity Hospital Building. It is owned by a local developer, Joseph Stebbins, and a New York based developer, Yoel Shargian. Both have extensive backgrounds in real estate planning, financing and building.
Approximately half of the Charity building is designed to attract office users seeking Class “A” space, particularly those participating in the bio-medical district that extends from Poydras and Canal Street with the project located between the two. At the inception of the Request for Proposals by the Real Estate and Facilities Foundation, an anchor tenant size office user provided a letter of interest for leasing office space in the building. Since its selection, 1532 Tulane Partners, Inc. has been actively negotiating with the anchor tenant for its lease of the twelve story wing fronting LaSalle Street. Another significant office user now in lease negotiations is a national co-working space innovator that wants approximately 150,000 square feet in the main tower. The developer is also negotiating with LSU Health Foundation New Orleans to move the developer’s offices into the historic Butterworth and Hutchinson Buildings at 1541-45 Tulane Avenue. The developer’s architects and contractors plan to join the developer there.
The innovation hub will allow for residents of the city to have affordable access to collaborative space and spur entrepreneurial growth within the Spirit of Charity Innovation District. Here, community members will have an opportunity to launch enterprises and businesses, expand existing operations without large capital expenditures, and grow entrepreneurial enterprises.
An agreement is in place with Sonder, Inc. for 150 residential units of the total 392 units planned. The office anchor tenant is negotiating for 75 residential units for their use, and approximately the same number is reserved for marketing to middle income or work-force users. The balance is available for full market rate tenants whether long term typical apartment dwellers or short term corporate and medical/hospital users.
Retail and Public Space
The retail component is designed to serve the office and residential users with goods and services. Also included in this category is certain space dedicated to public access celebrating the history of the building – an interactive museum of sorts where people are invited to video their personal Charity stories and see displays such as the antique medical artifacts now housed by the Louisiana State Museum. With a landscaped plaza area fronting Tulane Avenue and local retailers located in the small shop space there, workers and residents both will be welcome to browse.
The existing proposal for the creation of a Tax Increment Finance District within the Spirit of Charity boundaries is an opportunity to provide employment and careers both city wide and in the neighborhood. The developer proposes to have any such funds administered by a district-wide non-profit, the Greater New Orleans Foundation, to provide grants and subsidies to qualifying residents or businesses for direct career or business growth in the area. 1532 Tulane Partners will set aside space at reduced rates to recipients of any such grants.
The existing underutilized basement of the building will be converted to on-site parking, thus adding positive parking space count without removing any useable square footage from the building or from the surrounding area. The developer also proposes to establish a public transportation hub at the building to expedite access by bus and connections to the Canal/Loyola streetcar lines.
Every small, disadvantaged, minority-and women-owned enterprise seeking work on the Charity Hospital Redevelopment project must register their business at www.dbecompliancesuite.com and www.lsu.edu/supplierdiversity.
Firms that are registering as a Historically Underutilized Business (HUB) must provide evidence of their DBE, MBE, WBE, WOSB, SBA 8(a) or SDVOSB certification at the time of registration with LSU Supplier Diversity.
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