It presages revival, councilwoman says

Thursday, September 14, 2006

By Bruce Eggler

Developer Elie Khoury's plans for a 530-unit condominium development in Central City have won the unanimous approval of the New Orleans City Council.

Councilwoman Stacy Head, whose district includes the site, called the plans "incredibly exciting."

Khoury's $100 million project, expected to be known as Felicity Place or the Residences on Felicity, involves a 4.8-acre site on which Albertson's planned to build a supermarket until that grocery chain abandoned the New Orleans market a few years ago.

The site includes most of the block bounded by Felicity, Baronne, Euterpe and Carondelet streets and large parts of two adjoining blocks, including the back side of the block containing the former Houston 's restaurant. The entire site is vacant because all the buildings that once stood on it were demolished or moved in anticipation of the Albertson's construction.

Architect Lawrence Adams of the Mathes Brierre firm said the project "will bring life back" to the neighborhood.

Khoury, who also is converting the former Krauss Department Store building on Canal Street to condominiums, has said he expects the one- and two-bedroom Felicity Place condos, averaging 948 square feet, to sell for "mid-range" prices of $170,000 to $270,000.

The project will comprise three buildings ranging from six to 12 stories, plus 632 off-street parking spaces. Most of the units will ring the perimeter of each block, with the parking spaces hidden behind them. The 12-story building will be in the middle of the largest block.

Following the lead of the City Planning Commission, the council approved Khoury's requests to change the site's zoning from C-1A, general commercial, to RM-4, multiple-family residential, and to approve a conditional-use permit with a "residential planned community overlay." It agreed to waive almost 200 of the 817 off-street parking spaces required by the zoning law and to approve several other waivers.

No one spoke against Khoury's project before either the council or the commission.

Saundra Reed, co-chairwoman of the Central City Renaissance Alliance, said the project has been endorsed by a long list of Central City organizations and that Khoury has promised to sign an agreement spelling out specific ways the neighborhood will benefit, including a $50,000 contribution to an affordable home ownership fund that will provide gap financing to Central City residents seeking to buy homes.

The council approved the plans 6-0 last week, with Councilwoman Shelley Midura absent.

In other actions at the same meeting, all by 6-0 votes, the council:

-- Approved restoration tax abatements for seven properties, including five in the 700 block of Canal Street , between Royal and Bourbon streets, that are owned by Royal Boutique LLC and Bourbon Hotel LLC and are part of two hotels in the block. Another of the sites is the former St. Elizabeth's Orphanage at 1314 Napoleon Ave. that Khoury converted to luxury condominiums after buying the property from novelist Anne Rice.

The restoration tax abatement is a state program designed to spark renovation and redevelopment of buildings in designated historic, downtown or economic-development districts. Under the program, the owner of a qualified business or residence can make improvements to the property without paying added tax on it for at least five years, which can mean substantial savings to the owner.

All of the tax abatements approved by the council were recommended by Mayor Ray Nagin's administration.

-- Approved plans for a four-story, 37-unit apartment building for elderly residents at 3501-09 St. Claude Ave. and 1115-29 Gallier St . The site comprises seven vacant lots across Gallier from the now-closed Bywater Hospital , previously St. Claude Medical Center.

The building, which developers said will not be a nursing home or assisted-living facility, is to have 27 one-bedroom units, nine two-bedroom units, a manager's apartment and community rooms including a library and physical therapy unit. The ground floor will have parking for 32 vehicles.

The project was endorsed by the Bywater Neighborhood Association. The apartment for a full-time manager was added at the association's request. The site is in Councilman James Carter's district.

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Bruce Eggler can be reached at beggler@timespicayune.com or (504) 826-3320.