Economic Development Committee Meeting on Rivana Apartments PILOT - June 23, 2026
Economic Development and Special Development Projects Committee Meeting - June 23, 2026
The Economic Development and Special Development Projects Committee met on Tuesday, June 23, 2026, at 10:00 AM to discuss a Payment-In-Lieu-of-Taxes (PILOT) agreement for The Rivana Apartments, an affordable housing development in the River District. The meeting included a presentation from the Office of Economic Development, the development team, public testimony, and extensive council deliberation. No vote was taken; the item was deferred to the full City Council on July 9, 2026.
Consent Calendar
- Roll call: Councilmembers JP Morrell, Aimee McCarron, Eugene J. Green, Jr., Jason Hughes, and Matthew Willard were present. Councilmember Lesli Harris (District B, non-member) also attended. The roll call was approved 5-0.
- Approval of April 29, 2026 committee meeting minutes: Moved by Morrell, seconded by Willard, passed 4-0 (Morrell, McCarron, Green, Hughes).
Public Comments & Testimony
- Nicole Webre (unpaid investor/partner): Expressed strong support, noting that voters have overwhelmingly supported affordable housing via the housing trust fund and bond sales. Cited a SmartAsset study indicating an individual needs $86,445 per year to live comfortably in New Orleans and a family of two needs $201,000. Also referenced an HRA report on mandatory inclusionary zoning that concluded any new development requires subsidy.
- Gary Crockett (self-represented): Raised concerns about whether units would go to true long-term residents versus transients (e.g., Tulane students). Questioned the cost gap: $300,000 construction per unit but $500,000 total development cost. Noted that only 10 permanent jobs are projected for $100 million in subsidies and argued that fortified homes could be built at lower cost.
- Terri North (CEO, Providence Community Housing, 51% partner): Stated that Providence is a 501(c)(3) committed to affordability. Expressed support, noting 220 units in an area of opportunity where residents earning $15/hour would qualify for 60% AMI units. Emphasized that rents remain affordable for 40 years and that Providence has 2,000 units in New Orleans and 3,300 regionally.
- Ora Adun (resident): Expressed skepticism, thanking councilmembers Hughes and Morrell for demystifying the PILOT. Cited opportunity cost, city austerity, environmental risks, and geographic segregation. Recommended deferral until tangible benefits are clear.
- Emily Walsh (online comment): Added to the record.
Discussion Items
- Presentation by Tracy Jackson (Office of Economic Development): The Rivana Apartments will consist of 220 affordable/workforce housing units, 240,000 square feet (18,000 sq ft commercial), on a 1.3-acre site at 1480 Chapatula Street. Financial closing is required by end of July 2026, construction starts August 2026, completion June 2028. The PILOT term is 40 years, with a $3,000 application fee, $5,000 closing fee, and $5,000 annual administrative payment (escalating 3% per year). Total development subsidies: $105 million. PILOT value over 40 years: $33.4 million (estimated by assessor). After PILOT expiration, property tax revenue is estimated at $835,000 annually ($4.2 million in first five years). Jobs: 225 construction, 10 permanent commercial. The capital stack includes low-income housing tax credits, CDBG ($16.5M), convention center funds ($6.5M), state capital bond funds ($6.2M), and deferred developer fees ($1.6M). OED recommended approval.
- Councilmember Jason Hughes: Sought clarity on what the city is giving up—currently $0 in taxes because the property is owned by the convention center. Questioned the use of MSA-wide AMI, noting it includes Jefferson and St. Bernard parishes with different income levels, potentially inflating affordability figures. Requested specific rent breakdowns: for a studio at 20% AMI, monthly rent is $1,617 (subsidized; resident pays 30% of income); for a one-bedroom at 60% AMI, rent is $997/month. Expressed sticker shock at $477,000 total development cost per unit (including $318,000 construction cost), compared to homes in his district valued at $125,000. Asked how the city selects PILOT projects and noted the city workforce is being furloughed while property taxes are foregone.
- Council President JP Morrell: Questioned why the commercial retail space is also covered by the PILOT. The developer explained that tax credit investors devalue retail revenue and underwrite conservatively (30% vacancy, $11/sq ft vs. market $25-30), and the commercial space helps cover debt service on the residential component. Morrell expressed concern that this project may set a template for future phases to also seek PILOTs. He noted the city bears significant risk and questioned the sustainability of $477,000 per unit development costs. He stressed the need for a clear public explanation when council members vote to forego property tax revenue.
- Councilmember Matthew Willard: Asked about worst-case scenarios: if the project fails, a regulatory agreement runs with the land, ensuring rents stay affordable for 40 years (contrasting with older 15-year compliance periods). Queried per-unit cost comparison: the Lafitte Greenway project had $550,000 total development cost per unit. Noted there are 3-4 total phases in the River District; only the first is 100% affordable. Stated a fundamental concern: if everything is on a PILOT, the city gets no new property tax revenue to support services for new residents.
- Councilmember Lesli Harris: Defended the project, noting the land currently produces zero tax revenue. Without the PILOT, there would be no development and no housing. The project will provide 220 units of resilient, affordable housing near downtown jobs and transit. She urged colleagues to recognize the value.
Key Outcomes
- No vote taken. The resolution (R-26-XXX) was deferred to the July 9, 2026 full City Council meeting under the Regular agenda.
- Councilmembers Hughes, Morrell, and Willard expressed strong skepticism and requested developers and OED provide more transparent, jargon-free explanations to the public and council before the full vote.
- Developers were directed to meet individually with council members prior to July 9 to address specific concerns.
- All public comments and the online comment were added to the official record.
- The meeting adjourned at approximately 11:15 AM.
Meeting Transcript
Ms. Spears, can we get started? Please call the role. We sure can. Council Member Willard. Here. Councilmember Morrell. Here. Councilmember McCarran. Councilmember Green. Councilmember Hughes. We have a four. All right. Thank you, Ms. Spears. Thank you to everybody who's here today for this economic development committee meeting. Today we are going to have a discussion on the pilot agreement for the Ravana apartment. Before we do that, can we move into approval of the last meeting minutes? Second. Second. Move by Council President Morrell, seconded by Council Vice President Willard. All in favor? All right. And for the record, Councilmember Hughes is present. Four years, zero nays. The minutes are approved. At this point, I'll turn the meeting over to Councilmember Harris. Thank you, Chair Willard. I am really excited today because we are moving one step closer to the vision of the river district neighborhood that I've stood behind, a mixed-use neighborhood with affordable housing right in the heart of District B with accessible amenities. As I've said so often, the river district is required to build 900 units of housing, at least 450 of which must be priced with affordable or workforce level rents. The Ravana, which we are discussing today, is the first phase of developing the affordable housing with 220 units that are all required to remain affordable for 40 plus years. Test piles are in the ground, and I know RDI and Providence need to get to financial closing by July 29th in order to maintain their key funding sources, which includes state uh and local braided sources. As folks may remember, the river district has its own unique approval process for pilots involving the RD and I subdistrict, the state body created through the New Orleans Exhibition Hall Authority Economic Development District. State law requires approval of the RD and I subdistrict as well as the council, including a hearing before the Economic Development Committee that we're doing right now. Thank you again to Councilmember Willard for accommodating this hearing today on a schedule that allows this per project to move closer to its July closing. As I mentioned, the Ravana exceeds the standards set for its pilot, and we will meet all other city requirements, including local hire rules, DBE participation, and applicable zoning, including the convention center overlay rules. Uh we have the developers here. If y'all would like to come up and introduce yourselves, I know we have a presentation on the Ravana and the pilot. Thank you, Council Members. Uh good morning, thank you all as Councilmember Harris noted for calling such a uh a meeting on such short notice. Um I'm Jeff Schwartz, I am the Deputy Mayor for Economic Development for the City of New Orleans. Uh I'm joined here by my colleague uh Tracy Jackson, who is the city's Jackson Voice, excuse me, who is the city's uh incentives administrator. He's prepared a report uh to brief uh this committee uh on. Uh and I'm also joined by uh Emily May and Michael Meredith, who are uh some of the uh alchemists uh and lead developers uh behind the uh Ravana uh project. Uh Tracy, do you want to walk us through the presentation and I uh can provide any color commentary and then we can go to uh any any questions. Great, thank you. Absolutely. Good morning, council members. Uh once again, my name is Tracy Jackson Bush with the Office of Economics Development. Uh thank you all for this opportunity.
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