One River Place property sold downtown

Advocate staff photo by RICHARD ALAN HANNON -- The property long planned to be home to developer Richard Preis' One River Place can be seen through what remains of the sign that advertised the proposed condominium tower. The site has been purchased by Shaw Group chief executive Jim Bernhard.

Jim Bernhard, chairman and chief executive officer of The Shaw Group Inc., has purchased the downtown property on River Road that Richard Preis had long planned for his residential tower, One River Place.

Bernhard would not comment on the purchase, which he made through New Investments LLC for $3.3 million, other than to say the 55,000 square feet of riverfront property between Lafayette and Main streets represents a chance for him to invest in the future of Baton Rouge and Louisiana.

Other properties on the block are a residence on Main Street and Azteca’s Mexican Cuisine at Lafayette and Main. Architect Trey Trahan owns the undeveloped southern portion of the block and is reported to be involved in plans for the development of the site, though Trahan did not return a call for comment Wednesday.

Preis, who recently completed his involvement in the nearby Hampton Inn and Suites across Lafayette Street, said the offer to buy the property at market rate came last month. He and business partner Joe Traigle agreed they’d be willing to sell if a cash deal could close by the end of the year, for tax purposes.

“It was the right price and the right person, who has a high energy level for downtown, as I do,” Preis said. “It was a good buy and a good sell. And I come from an old school, where that’s how it should happen.”

Preis said he still believes in riverfront development downtown, noting when he announced One River Place a decade ago it was because Baton Rouge was one of the largest cities on the Mississippi River that didn’t have residential development along the waterfront.

As he has noted in the past, Preis said Hurricane Katrina and the financial crisis hamstrung his efforts to get his 17-story office and condo tower developed.

Davis Rhorer, executive director of the Downtown Development District, said the DDD welcomes the purchase and any development that might come from it.

“Obviously, we are excited about this investment in downtown Baton Rouge,” Rhorer said. “This piece of property is a prime piece of real estate on the river and is primed for future development. We’re happy to work with developers as the project might move forward.”

Comments

1) Comment by phil - 04/01/2013

DMJ: Yes I used to live downtown years ago but never even considered living there when I purchased a home. I live very close to 3 large grocery stores and 3 large drug stores in the suburbs, which actually is in the city limits (so I get to pay all of those city taxes). Speaking of taxes, I believe the DDD used to get funds from the general fund in addition to the property tax they collect downtown. I think if downtown folks want to pay for a grocery store out of their own downtown property taxes then I say go for it. Just do not ask me to pay. My council district needs things too and I hope my council member will keep that in mind. Speaking of the DDD, what in the world do all of those full-time employees do all day? Seems like they have too much time on their hands to sit around and come up with new creative ways to spend tax funds. Then they also are considering taking in more area and collecting even more taxes. So I have a recommendation. Use those DDD property taxes to build a grocery store downtown instead of supporting the DDD which I think is way too top heavy. Or maybe the RDA could redevelop an entire block downtown including YOUR property and convert it to a nice grocery store with plenty of off-street parking. Of course, parking is not an issue downtown, especially if you are talking about libraries and grocery stores. In summary, best of wishes downtown using YOUR private money or YOUR tax money to improve it. Also maybe even convert on of those expensive new park areas downtown to a grocery store.

2) Comment by rockynoggin - 03/01/2013

Plenty of folks moved out to Livingston and Ascension in the 90's when nothing was out there to speak of but now they are booming and have all the "comforts" - I agree planning is needed to help manage growth and make sure that infrastructure is able to keep up. I'm not so fired up about the idea of offering public incentives to businesses (i.e MY tax dollars for YOUR convenience). I'm happy our downtown is growing, let's just give it time and the market will be there.

3) Comment by mcBR - 03/01/2013

Obviously there are many people on the Advocate's website who don't understand anything about economic development, or history for that matter. Because of the flight from downtown brought on by suburbia, many businesses on main street shut down. People don't want to live downtown because they don't have access to services. Services don't locate their because no one is living there. This is where smart government planning can help.

4) Comment by nimby? - 03/01/2013

if there was a chance for profit it would already be there .

5) Comment by DMJ - 03/01/2013

phil, I'm guessing those grocery stores closed quite a while back, probably the same time you and everyone else moved to the 'burbs. Guess what? People are moving back. I know you don't make it downtown much, but it's changed a LOT in the past few years. Residents of Spanish Town, Beauregard Town, the 10s of thousands of people who work downtown every day, festival goers, convention attendees, hotel guests and other random tourists... they have no grocery store, no pharmacy and no hardware store. It's inconvenient and it's not conducive to residential development. If the DDD wants to put up some money, or whether only private investors put up the cash, doesn't matter to me. It just needs to be done. It's a good investment either way.

6) Comment by foldgers - 03/01/2013

I am not saying it is needed downtown per say, but I would think that considering now downtown has a few nice hotels for tourists and more in the works, I would assume something along the lines of a WalGreens or CVS would fit perfect down there. Tourists come in, check into their hotel and then realize they need to cab it to fill a prescription. Not too tourist friendly. Not to mention, if something like that were to be built, it may attract more people to move downtown. Almost every downtown in larger cities have this. Look at New Orleans. Once again, I am NOT saying it is needed, I just think it would be smart...not to mention, I would think it would be quite profitable. Late night place for those who are out to grab some water, snacks( besides Shlitz and Giggles), condoms, visine, morning after pills, birthday cards, make up for girls who need a touch up, residents down there who may need shampoo at 1am and don't feel like driving, hotel guests who may need toiletries after a late night flight and cab ride to the hotel... I just do not see how one would not make a killing down there. In fact, anyone want to open one with me? I would even do it without the help of subsidizes...NOT NEEDED, but would make a killing!

7) Comment by Being_Stupid - 03/01/2013

Bernhard has the money to not only acquire the land, but then develop the land after he buys it. That is the problem a lot of developers face. They might acquire the land somehow, but then they don't have the money to make it happen. Or if they have the money and the land, then they don't have the political clout or the zoning.

8) Comment by phil - 03/01/2013

Grocery stores? I can remember at least 3 that were very near the downtown area years ago and all closed down. I suppose those folks downtown mush be starving since they have NO access to food. Maybe the people who live downtown should open their own grocery store using their own money and see if it can make it or not - or maybe they should just move to the suburbs (I have 3 major grocery stores within a couple of miles in the suburbs). OR maybe one of those major downtown developers could spend a few $million for a new grocery store or maybe the redevelopment group could get some NMTCs, find a large block of homes downtown to "redevelop" and.....

9) Comment by Aloysius - 03/01/2013

First, contrary to the report printed here, there are more than one residence and Azteca's on that block. There are a total of THREE residences, THREE commercial properties and ONE bar, the Bald Eagle Pub (once upon a time the Thirsty Tiger). Hard to miss, especially since it is across the street from where The Advocate used to be. Second, to DMJ and his comments that downtown needs a grocery, a pharmacy and a hardware store. WHY? Is there a grocery, pharmacy and hardware store in the Country Club of Louisiana? Or Santa Maria? Or in a myriad of other neighborhoods? They thrive without those "needed" establishments. We downtown residents do the same thing CCL residents do--we drive to the grocery, pharmacy or hardware store when we need something, then drive home to our neighborhood. Just like everyone else does. AND, by the way, downtown is about to get its THIRD grocery. There is already one on Spanish Town Road and one in the Main Street Market parking garage complex. The one on Third and Florida will be the third.

10) Comment by Citizen Jane - 02/01/2013

I remember those apartments that Pries wanted to build. First it was a 27 story building, then an entire city block of high density housing with limited parking that was completely out of the scope of the Historic Neighborhood design parameters put in place by the Planning Commission. It also violated several areas of the UDC including the size of the street you can build something that big on and did not fit with the current zoining of the property. Just because Pries wasn't able to change the zoning and other laws in place to fit in with what he thought should be there doesn't mean that the Spanish Town Gestapo et. al. were obstructionist. They were simply following the letter of the law.

11) Comment by Being_Stupid - 02/01/2013

I would like to see that hotel that Richard Preis envisioned be built. That was a nice hotel on paper. Richard Preis had some great plans and a vision for Downtown Baton Rouge. A few years ago, Preis tried to build some really nice residential town homes on the outskirts of Spanish Town but he was shot down by the Planning and Zoning Dictatorship, the Spanish Town Neighborhood Gestapo, and the Historic Preservation Commission (HPC). The DDD and Davis Rhorer offered no assistance and sided with the obstructionists. Only the very rich and politically connected can afford to develop in Baton Rouge.

12) Comment by phil - 02/01/2013

If you check the Secretary of State website, there is very little information (other than the Agent) listed for New Investments, LLC on the Corporations database .

13) Comment by phil - 02/01/2013

I agree there is a lot of potential downtown and I think private individuals and private companies in the private sector need to realize that it is not the role of poor and middle class taxpayers to subsidize their profits with TIF areas and other tax subsidies.

14) Comment by DMJ - 02/01/2013

Downtown still needs a grocery, a pharmacy and a hardware store. These very simple amenities will make residential life in downtown appealing and practical.