Dew Drop Inn Redevelopment

Sponsor: Harmony Neighborhood Development

Type of QALICB: New Orleans Historic Redevelopment

Owner: Harmony Neighborhood Development

City and State: New Orleans, LA

Contact Person: Michael Hellier

Phone: 5045243919

Contact Email: [email protected]

Allocation Amount Requested: $3,500,000 to $4,000,000

Brief Description of QALICB:

A visitor can still feel the electricity and sense the historical events that transpired in this New Orleans institution, once known as  the South s swankiest night club . In an effort to repair and resurrect the Dew Drop Inn back to its former glory the original owner s grandson, Kenneth Jackson, has formed a partnership consisting of himself, Harmony Neighborhood Development and other Dew Drop advocates. Through creative partnerships, this project is bringing back all of the uses the historic Dew Drop Inn has been known for with a community driven twist. The barbershop and restaurant/performance space will be operated through a job training model available to at-risk youth. A large portion of the space will house the MIC at the Dew Drop. The Milne Inspiration Center(MIC) increases opportunities and resources to decrease unproductive behaviors that often lead youth to crime and prevent them from reaching their full potential. They accomplish this by creating safe spaces that cultivate the voice, vision, and development of young leaders in the neighborhood. 
 
Census Tract:
 
22071009200
 
Demographics (2006-2010 ACS):
 
Median Income - 23.3
 
Poverty Rate - 44.2
 
Unemployment Rate - 27.4
 
Project Metrics:
 
-HUB Zone
-Adjacent to Harmony Oaks HOPE VI Redevelopment -Medically Underserved Area -Louisiana Enterprise Zone -Major Disaster Declaration declared on 8/24/12 -USDA-ERS Food Desert

But For Statement:

The Dew Drop Inn, and surrounding properties, have been vacant since at least 2005, continually deteriorating and presenting a dangerous and un-appealing condition for the surrounding community. During this period, this area has not attracted any investment interest, except for the partnership we have formed. While historic tax credits are available here, it is clear that the development would not take place without NMTC financing. Without this structure potential investors would not be interested in the deal, evidenced by the lack of development within the census tract and by the long-term marketing period the property has experienced. The development team is exhausting all funding strategies, but it is evident  that without the net benefit anticipated from the NMTC transaction, the redevelopment would not be able to move forward.

 

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