The city and developer of the $900 million New Orleans revitalization project have reached a preliminary agreement on a $1 billion agreement, the city said Tuesday.
The agreement, signed Tuesday in the U.S. District Court for the Eastern District of Louisiana, is the first to include the city’s plan to redevelop the downtown area into a mixed-use neighborhood.
The agreement calls for $400 million in state and federal tax increment financing to fund construction, which would include $400.6 million for a new police precinct and $50 million for the renovation of the city-owned Convention Center.
The $1 million contribution from the state and $500,000 from the city is contingent on the city meeting certain benchmarks to qualify for the federal government’s Community Reinvestment Act, which is a federal program that can help build or restore public services.
The city was one of six states and cities to qualify in 2020.
The city said the agreement, which was reached after a three-day hearing Tuesday, is designed to support economic development in the region.
The deal will require the city to create 10,000 jobs for new and existing residents, which will be supported through a tax-increment financing program.
The mayor, City Council President Kevin Johnson, said the goal is to create more than 2,000 construction jobs over the next 10 years.
The new development agreement also includes $300 million in local property tax relief and $100 million in tax credits for developers.
The Associated Press contributed to this report.