Members of the investor group that has been awarded the right to exercise a 10-year-old option agreement on 60 acres of undeveloped property on the campus of the Rev. Jimmy Swaggart’s Family Worship Center Church say they still plan to develop a medical complex on the site.
“We never lost the original concept,” says Terry Jones, who is a principal in the investor group, Health Science Park LLC. “The medical corridor is obviously growing so that remains a strong interest for us.”
After a nearly two-week trial, a 19th Judicial District Court jury on Thursday awarded HSP the right to exercise the 2006 option agreement, which had been negotiated before Hurricane Katrina. The verdict clears the way for HSP to buy the property for the pre-Katrina, agreed-upon price of $6.7 million.
Testimony during the trial suggested the tract—which is on the east side of Bluebonnet Boulevard and includes about 44 acres of developable land—has an appraised value today of more than $20 million.
The verdict also gives HSP the right to exercise a long-term lease agreement on two buildings on the west side of Bluebonnet Boulevard, including the 160,000-square-foot Ketchum and 140,000-square-foot Trotter buildings.
HSP’s original plans for the property called for developing a complex around a replacement facility for LSU’s then-aging Earl K. Long charity hospital. Though LSU has since closed EKL and partnered with Our Lady of the Lake Regional Medical Center to provide indigent care, the Bluebonnet-Essen area has since become the focus of efforts to develop a medical corridor.
Terry Jones and his partner in HSP, Stephen Jones, who is not related, say there are still plenty of opportunities for health care-related developments on the property even without an LSU hospital—perhaps more than ever.
“There is an opportunity to create a real 21st century, business center and medical complex,” Stephen Jones says. “One of the things we’ve gotta do is an analysis of where the needs are and we want to dovetail those with the other activities going on in the area. What will meet the needs of the new Children’s Hospital? What will be the needs of the General? What will be the needs of Our Lady of the Lake?”
HSP will effectively be starting over as it begins to plan for the development. But the partners say their original team of investors remains on board and committed to moving forward.
They also say they intend to be very involved in the development, whatever shape it may ultimately take.
“We’re not going to flip this,” says Terry Jones. “We’re in it for the long haul. We want to build something that will be a real light for the region—that will help the region shine.”
It is unclear if FWCC plans to appeal and, if it does, whether the property will be tied up during the appellate process. FWCC’s attorney could not be reached this morning for comment.
—Stephanie Riegel
