Aug 11, 2026
KEY TAKEAWAYS: Demolition has begun on the long-vacant former Mercy Hospital complex in Mid-City. The $16 million project will remove about 350,000 square feet of structures. An underground retention system will hold about 3.8 million gallons of stormwater to help reduce flooding. Demolition i s expected to be completed in early 2027.   Demolition has begun at the long-vacant former Mercy Hospital in Mid-City as part of a $16 million project that will clear the property for redevelopment and create a stormwater retention system designed to reduce neighborhood flooding. The project will remove the roughly 350,000-square-foot hospital complex, which has been vacant since Hurricane Katrina, according to the City of New Orleans. Work has started on the former nursing school and central power plant, with demolition of the seven-story main hospital building to follow. The property’s existing underground structure will be converted into a stormwater retention facility capable of holding about 3.8 million gallons of runoff during major rain events. Project estimates indicate the system could reduce street flooding in the immediate area by about 12 inches during a 10-year design storm. The stormwater improvements are being funded with $11.5 million in city bond money approved by voters and a $4.5 million contribution from Woodward Interests. The city will own and maintain the system’s inflow and outflow infrastructure, while Woodward will maintain the underground retention basin. Paul Flowers, CEO of Woodward Design+Build, said clearing the property will create opportunities for redevelopment at a prominent Mid-City location near the Lafitte Greenway and Bayou St. John. “The demolition of this blighted building will make way for the redevelopment of this site and will spur improvement of sites adjacent to ours, bringing renewed energy to the already active crossroads of the Lafitte Greenway and Bayou St. John,” Flowers said. City officials said the project is intended to address several priorities, including removing a long-standing blighted property, improving stormwater management and preparing the site for future development. “The demolition and redevelopment of the former Mercy Hospital site is a priority for the City, and an example of how community and economic development should be done,” Deputy Mayor of Economic Development Jeff Schwartz said. Mayor Helena Moreno described the start of demolition as progress on a property that has remained dormant for more than two decades. “This is a big day,” Moreno said. “When I ran for mayor, I said my administration will push for progress. For far too long, people have waited for things to happen, and we are pushing back against that and getting things done and this is one of those projects.” Mercy Hospital was constructed in the 1950s and operated in Mid-City until closing following Hurricane Katrina in 2005. The vacant property has since been the subject of redevelopment discussions involving city officials, developers and neighborhood residents. District B Councilmember Lesli Harris said the project could turn the former hospital property into an asset for the surrounding neighborhood while addressing chronic flooding concerns. “This has never just been about knocking down a blighted building, it’s about what comes next,” Harris said. Safety and environmental monitoring will continue during demolition, including air-quality and vibration monitoring, according to the city. Asbestos abatement is underway inside the main hospital building, with inspections required before structural demolition begins. Demolition is expected to be completed in early 2027. ...read more read less
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