Kenner Council backs 20-year PILOT to finance renovation of Westminster Tower senior housing

The Kenner City Council on Sept. 19 voted 7-0 to support a JEDCO payment-in-lieu-of-taxes (PILOT) arrangement for Westminster Tower LP and an affiliated nonprofit to finance urgent renovations at the Westminster Tower senior housing complex.

The resolution asks the Jefferson Economic Development Commission to extend tax-exempt status to the project so the ownership group can complete renovation work while maintaining HUD-required affordability. Council members voted to approve the resolution without opposition.

JEDCO president and CEO Jerry Bologna told the council the property —301 Idaho Avenue—4 has been tax-exempt for decades under nonprofit ownership and now faces a transition to a private ownership structure that includes a for-profit partner. "This payment in lieu of taxes, which would extend that tax exempt status, is going to go a long way into achieving, achieving these goals," Bologna said, describing the financing mechanism as essential to preserve low rents while funding capital improvements.

Why it matters: Westminster Tower serves low-income seniors and, according to the presentation, includes 200 apartments in Tower 1 and roughly 67 units in Tower 2. The new ownership group and developer, Housing Preservation Inc. (HPI), plan a multimillion-dollar renovation to the buildings and systems; the presentation cited a roughly $3.5million to $4million renovation budget within a broader $16.5million project scope. Supporters said the PILOT preserves affordability required by HUD while enabling the capital work.

Oliver Haynes (HPI) told the council the acquisition and renovation will be completed under HUD program guidelines that allow tenants to remain in place during work and generally require the renovation scope to be completed within 12 months. "We'll be able to renovate these communities with the residents still in place," Haynes said, describing a process that includes an on-site management and maintenance team and social services support for residents during the work.

Council members asked about the length of the exemption. Bologna said the resolution contemplates a 20-year PILOT; he and Haynes explained that the 20-year term aligns with HUD affordability requirements and lender (Fannie Mae) underwriting expectations. As Bologna put it, the board had approved the JEDCO action on Aug. 28 and the councils ratification supports the final steps needed for the PILOT to move forward to parish-level consideration.

Vote and next steps: Council Member Sharwitz moved to approve the resolution; Council Member Brannigan seconded. The motion passed unanimously, 7-0. Council staff said the approved council resolution will be provided to Jefferson Parish for its ratification and that the project will proceed under HUD oversight and lender conditions.

Context and limits: The councils action was a local endorsement of JEDCOs PILOT; it does not itself grant a tax exemption. The project remains under HUD program rules and subject to lender conditions and additional approvals described in the presentation. The council discussion noted that the PILOT would not be in perpetuity: the tax-exempt lease or PILOT term described in the presentation is 20 years, after which the property would return to the tax rolls if not otherwise extended.

Provenance: The councils discussion and JEDCO presentation began with Jerry Bologna (JEDCO) at the item introduction and concluded with the roll-call vote recorded later in the meeting.

Ending: With the councils support, JEDCO and the project team will proceed with the PILOT steps and liaise with Jefferson Parish for ratification; project proponents said the renovation work will be prioritized to limit resident displacement and completed under HUD timelines.