The West Bank of the parish has developable land available in every community, and while some of the land is currently zoned for commercial use, owned by estates or used for agriculture, numerous subdivisions have sprung up across the area in the last nine years.
But since the economic downturn, many of those subdivisions have had trouble selling lots. In fact, construction approval on some of the subdivisions has expired because of a lack of activity by the developer.
Subdivisions where the approvals have expired include some huge developments. One development in Hahnville, called Rivercrest Estates, had 113 lots. Another in Ama, called River Breeze Estates, had 83. Other expirations include Ashton Oaks in Luling and the third phase of Ashton Plantation, which included 119 lots.
“We’re generally not privy to the reasons why developers didn’t follow through with construction after receiving approvals – therefore it is hearsay,” Steve Romano, the parish’s residential review planner, said. “But considering how things slowed down with regard to processing subdivision applications and noticing how long it has taken for homes to get built on the last few newest subdivisions, I can only speculate that the reasons were related to economics – that the real estate market slowed down considerably.”
While those failed to get off the ground, 17 new subdivisions in Hahnville, Boutte, Luling and Bayou Gauche have been constructed to completion since 2000.
But just because they were constructed, doesn’t mean that the lots are selling.
April Freese-Templet, branch manager for Coldwell Banker Tec Realtors, said the building situation isn’t good right now because construction loans are limited.
“I think the reason lots aren’t selling has more to do with the mortgage industry than with our local economy,” she said. “We have a strong economy here because of the plants, but there is a lack of affordable financing right now.”
Freese-Templet said that before Ashton Plantation was built, local realtors were begging developers to build subdivisions on the West Bank.
“Once the banks are able to begin lending construction loans and lower the down payment on lot loans again, I think the lots will begin to sell.” she said.
Councilman Paul Hogan, who works as a civil engineer for RJM Enterprises, said that most of the developments RJM has built are doing fine. However, South Lakewood in Luling, which has 85 lots, has only sold eight.
“A lot of it had to do with the downturn in the market,” Hogan said. “Most of the lots we have sold at South Lakewood have occurred recently, which indicates the market is improving.”
And while the market may be on its way back, an upcoming change in base flood elevations has many in Bayou Gauche waiting to build.
“In Legend Oaks in Bayou Gauche, we have seven or so lots left out of 51,” Hogan said. “But because of new home elevation requirements in the area, many people are holding off on construction.”
FEMA changed the way they evaluate flood zones after Hurricane Katrina, and their new maps, which were released in January, show a drastic change on the West Bank. While FEMA has not required the parish to adopt the revised maps, new flood zones are expected to be in place within the next three years after additional work is completed on the East Bank hurricane protection levee.
At the heart of the issue are areas on the West Bank, especially within the Sunset Drainage District, including Bayou Gauche, Paradis and Des Allemands, that would lose the X flood zone status. Construction in an X zone is considered to be outside the 100-year floodplain and is not required to carry federal flood insurance. The proposed maps do not recognize hurricane protection levees on the East or West Banks because the Corps has determined they are currently not up to standard.
Earl Matherne, the parish’s coastal zone manager, estimates over 60 percent of West Bank residents would have seen a drastic increase in their flood insurance premiums under the revised maps. At the same time, however, the maps represent premium reductions on the East Bank.
Existing flood insurance policies would lose discounts associated with their flood zones if the policy exists before any potential zone change. But those not “grandfathered in” to the system could pay substantially higher premiums; some upwards of $4,500 a year.
The parish will take all of this into account as they analyze both the East and West Bank for the area’s comprehensive land use plan. The parish will also consider what things currently exist in each community and what the transportation, drainage and sewage needs will be in the future.
An important factor in the land use plan for the West Bank will be wetlands, which is the biggest hurdle to growth in the area, Romano said.
“Second would be the fact that the railroad lines hem in some of the developable land,” he added.
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