20,000 Home Subdivision Coming to New Orleans

[Sean in New Orleans]

Here we go, expect more major announcements in the coming months. New Orleans is still in the recovery stage, but, at the same time we are entering the infancy stage of rebuilding our City. In New Orleans proper, look for Downtown high rise residential development, as well as condos along the Mississippi River in the lower 9th Ward. Lakeview will remodel and rebuild what is there...trouble spot is New Orleans East...

Massive subdivision planned on West Bank

By Greg Thomas
Real estate writer

A California homebuilder plans to develop a massive West Bank community with as many as 20,000 residences, marking the first major investment in the region since Hurricane Katrina destroyed or damaged some 200,000 homes.

"We want to rebuild New Orleans," said Bruce Karatz, chairman and chief executive of KB Home, which has partnered with the Shaw Group of Baton Rouge on the purchase of a 3,000-acre tract of land near Avondale.

The two companies will work together to build condominiums, townhomes, single-family homes, and retail stores on the property.

"We're talking a new city," said Steve Dwyer, an attorney representing Joseph Marcello, the landowner who contracted to sell the Churchill Farms property, as the tract is known, to the partnership for an undisclosed sum. The Marcello tract has long been considered one of the last big tracts in the metro area suitable for development because of its elevation.

The KB Home project, arguably one of the largest real estate deals in the area's history, will be officially announced at a press conference this morning. But the proposal has already won the backing of Jefferson Parish President Aaron Broussard, who has been briefed on the project.

"I think this is the most exciting news Jefferson Parish can hope for at this time. Any time two major national corporations make a commitment to come into this parish speaks of the confidence (they have) in the rebirth and resurgence (of the area)," Broussard said.

"These are major players putting their money where their mouths are," he said. "They are anticipating a great influx of people coming to Jefferson (Parish)."

The Shaw Group, a consulting, engineering and construction firm, will bring more than its building expertise to the partnership with KB. Shaw also has a ready pool of workers in a market where labor is hard to come by.

"We've got the labor," said Jim Bernhard, Shaw's chairman and chief executive officer. "I think we can get it done. Everyone needs a home to stay in."

Karatz said the partnership between Shaw and KB Homes makes for a powerful entity, and he thinks the two can get the job done quickly.

But he said he'll need local officials to cooperate by expediting the necessary regulatory proceedings.

"What normally takes three months, we need done in weeks," said Karatz, who met with Governor Kathleen Blanco Monday to brief her on the project. The governor's office couldn't comment on the meeting late Monday.

Broussard said he will attempt to expedite any red tape involved.

"Timing is so critical" for the developers, Broussard said. KB Home and Shaw Louisiana have "got to get into the marketplace (quickly) to be a very competitive option."

Furthermore, the availability of attractive new construction could help lure evacuees back to the area, Broussard said.

"There's a work force that has to get back into this area," Broussard said. "We're contingent on housing to sustain the rebirth of the hospitality industry. This is virgin acreage available immediately to the market place," he said.

Byron Lee, the District 3 Councilman for Jefferson Parish whose area includes Churchill Farms, said he "certainly welcomes a Fortune 500 company coming to Jefferson Parish."

The land is off Highway 90 near Lapalco Boulevard, roughly running from Nicole Boulevard to the hurricane protection levee in the Avondale-Waggaman area. Karatz did not offer a specific completion date for the project and would not reveal the total cost of the project.

Jefferson Parish may not be the only place KB Homes pursues development opportunities.

Steve Davis, Gulf Coast President of KB Homes, said he sees possibilities for additional development in Mandeville-Covington and in Slidell.

KB Home is a powerhouse in the industry. Last year, the publicly traded company build 31,546 homes across the country, posted revenues of more than $7.05 billion, and employed approximately 6,000 people. The average KB Home sells for about $277,000, according to Karatz.

Shares of KB Home have climbed steadily over the past year from $44.63 in the first week of December 2004 to a close of $71.07 Monday, down 13 cents from Friday's close.

Shares of the Shaw Group closed at $30.63 on Monday, up $1.03 over Friday's close.
http://www.nola.com/newslogs/tpupda..._05.html#097971
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[CajunMama]

KB Homes...I recognized that name from Extreme Makeover: Home Edition.

http://www.kbhome.com/extreme/

[sunny]

Wow. This is GREAT news for Jeff Parish! We are starting to make strides in Jefferson. Heck, I don't even complain when the hammers and saws wake me up at 6:30 am on Saturdays and Sundays

Who knows, Jefferson may come out on top of things!

[Lindaloo]

Sean, that is Jefferson Parish closer to St. Charles, not Orleans!(Avondale ring a bell?). IMO this is misleading people to think that all is well and good for Orleans Parish and New Orleans.

[Scorpion]

Until the next hurricane wipes it out.

[Lindaloo]

Until the next hurricane wipes it out.

Yep! They are spending all this money on condo's and not even worried about fixing the reason people lost their homes to begin with. FIX THE LEVEE!!

[CajunMama]

Until the next hurricane wipes it out.

Yep! They are spending all this money on condo's and not even worried about fixing the reason people lost their homes to begin with. FIX THE LEVEE!!

This is a corporation coming into build the subdivision. KBhomes has nothing to do with fixing the levee.

[Lindaloo]

I know. But, it would be nice if they would fix the levee system BEFORE they start building new homes. If there is ever another MAJOR like Katrina then those homes are gone too.

[sunny]

We were talking about the levee issue yesterday. Some people here are convinced there is NO WAY the levee system will be ready by next season. And that came from someone in my Governmental Relations practice group.

[Sean in New Orleans]

Sean, that is Jefferson Parish closer to St. Charles, not Orleans!(Avondale ring a bell?). IMO this is misleading people to think that all is well and good for Orleans Parish and New Orleans.

I know where it is...it's 20 minutes to the SW of Downtown New Orleans via Hwy. 190. Metro New Orleans is still New Orleans for those of us that live here. There is no seperation of the urban areas..it's all connected. Everywhere should come back just fine except New Orleans East. Bank on it. We got hit hard in New Orleans, we know it, but, as previously stated, we are coming back, and we are proud. I am so proud to call New Orleans home, as is everyone in the Uptown community, which is now home to almost 100,000 permanent residents in New Orleans. Uptown, Downtown, the Bywater, the Marigny, and Algiers are the areas presently inhabited and we are a great start for New Orleans.

[Sean in New Orleans]

Well, we can only hope about the levees, as well. Last I heard at the Chamber meeting was that the levees should be ready by June 1 and will be 3 to 4 feet higher than pre-Katrina 2005. They are out there now working on them...we aren't at the levees, ourselves, to see it, but, they are out there working and repairing and raising the levees. But, the issue isn't the levees around New Orleans. The saviour will be the category 5 flood wall to be built from Morgan City to Slidell. But, we aren't going to get funding for that until mid 2006, from Congress, and it will take 5 years to build. At least, that's the word I'm getting. The expedited study on building the category 5 floodwall and its' costs won't be completed until around May.

[Lindaloo]

Um yeah okay Sean. Guess those homes will be built, but the major energy supplier is leaving.

"Most of us agree that having 1,500 people in one location in a flood plain isn't a good idea," said Entergy Chief Executive Officer J. Wayne Leonard. "That would be hard to justify, especially to our board given the cost and disruption we have incurred" from Hurricane Katrina."

Entergy remains committed to re-establishing a major presence in New Orleans, Leonard said Thursday. But the slow pace of recovery in the city and the continuing risk posed by hurricanes are forcing executives to consider shifting some crucial operations to other locations, he said.

[CajunMama]

Entergy Corp. is considering moving at least a portion of the utility holding company's headquarters out of the city to locations that are not so hurricane vulnerable, the company's head says.

Entergy is not completely leaving...it's a partial pull out according to the article that Sunny posted. While that's not good it doesn't say they are entirely leaving NO. That's the companies headquarters. I'm sure they're still going to supply power to the residents and businesses there.

[TSmith274]

The Entergy situation is a perfect microcosm of what is the ongoing disaster in New Orleans. Businesses are closing everyday. Why? Because our recovery is all but halted until guarantees are made to build cat 5 levees. We need them NOW! Please help us by writing your representatives in D.C. I'm still waiting for our president to follow through on at least ONE of his promises made during his nationally televised speech from Jackson Square. Despite the rosey picture that is often painted, we need help badly!

[sunny]

The Entergy situation is a perfect microcosm of what is the ongoing disaster in New Orleans. Businesses are closing everyday. Why? Because our recovery is all but halted until guarantees are made to build cat 5 levees. We need them NOW! Please help us by writing your representatives in D.C. I'm still waiting for our president to follow through on at least ONE of his promises made during his nationally televised speech from Jackson Square. Despite the rosey picture that is often painted, we need help badly!

THANK YOU.

[Lindaloo]

The Entergy situation is a perfect microcosm of what is the ongoing disaster in New Orleans. Businesses are closing everyday. Why? Because our recovery is all but halted until guarantees are made to build cat 5 levees. We need them NOW! Please help us by writing your representatives in D.C. I'm still waiting for our president to follow through on at least ONE of his promises made during his nationally televised speech from Jackson Square. Despite the rosey picture that is often painted, we need help badly!

THANK YOU!!

[Zackiedawg]

Isn't part of the problem for the city the original building of the levees to begin with, which not only opened up once-swampy lands to build on expanding the city into natural flood zones, but causing subduction of those lands making them even more flood prone than before? And the building of the levees diverted crucial replenishing nutrient-rich soils to build up the marshlands within the alluvial fan of the Mississippi, which has resulted in an almost-unbelievable rate of landloss in the delta region which once protected New Orleans from ocean surge?

I know it's been mentioned ad infinitum in many different places and venues. But New Orleans would be remiss to ignore the warning shot fired by Katrina...it may have seemed bad, but it didn't even directly strike New Orleans. The building of Cat 5 levees and storm surge walls would have to be completely fortressing the city...all sides, all canals, all lakes, all inlets would have to be gated. Even then, the city can fall prey to its usual enemy...rain. A juicy hurricane can deliver 20 inches or more, and New Orleans already floods in an average rain. Build a fortress of Cat 5 walls around the city, knock the pumps' power supply out with the hurricane, then fill the bowl with 20 inches of rain...and you've got a disaster again. And the city will just keep sinking, and the land will keep receding.

Unless some section west of the city is opened back up to some diversionary flow of the Mississippi, allowing more sediment to flow back to the bayous south of the city, the Cat 5 storm surge walls will eventually become sea walls - nothing south of the city but ocean.

Has there been any fruitful or serious discussion on the boards to try to replenish the quickly receding marshlands before they recede right up to the city boundaries? We don't hear much about the goings-on in New Orleans down here...I'd appreciate some insight.

BTW - glad to hear parts of the city are getting back to some normalcy and repopulating. I spent 4 years in uptown while going to Tulane...and the city always lives inside of me. I go back every few years, and am planning on a trip in 2006 to get back in there and help the economy and tourism restore to normal!

[TSmith274]

Has there been any fruitful or serious discussion on the boards to try to replenish the quickly receding marshlands before they recede right up to the city boundaries? We don't hear much about the goings-on in New Orleans down here...I'd appreciate some insight.

You know what you're talkin' about! It's nice to see people who understand our problem.

As for the river diversions that you were asking about... Yes, there are comprehensive plans to restore the coast using these diversions. In fact, there are already several in operation right now. They have been successful, however, many more are needed. Also, there are many other aspects of the coastal restoration plan. Closing gaps, rebuilding barrier islands, etc...

I think LSU scientist Ivor Van Heerden put it best... "The coast IS a renewable resource, much like a forest. It just needs to be replenished. It can be done."

I'd suggest Googling "America's Wetland"... a campaign to save coastal Louisiana. Also, read the Times Picayune story "Washing Away". Solutions and projections are described in detail.

[Matt-hurricanewatcher]

Fix the levees to cat5 strength or let the river/gulf have it. Its not worth one more life lossed!!!!

[f5]

nothing can withstand a CAT 5 that why they are a special breed.