Lt. Gov.  Billy Nungesser was in Lake Charles Thursday and one of his stops was 710 Ryan St. — the old Zephyrs Building. Purchased by the New-Orleans based Green Coast Enterprises, the company has made it past the first stage of permitting that is required to receive historical tax credits. Not only that, but they have also laid the groundwork for other downtown Lake Charles property owners to apply for tax credits by getting those properties on the National Register.

Claiming federal and state tax credits for fixing up historical structures according to certain guidelines have been a major boost in revitalizing downtown areas across the state.

State tax credits, however, are on the chopping block.

“Historical tax credits are a big issue in Baton Rouge,” Nungesser said, “so I need everyone to contact their legislators.”

Earlier this month, state lawmakers returned to the Capital for their third session. The focus is streamlining Louisiana’s tax system as lobbyists push back to retain the status quo that serves special interests. Gov. Jeff Landry and Department of Revenue Secretary Richard Nelson have a tough job ahead. They want to do away with state income tax.

The Louisiana Rehabilitation Historic Structures Tax Credit Program reimburses property owners up to 25 percent of what they spend to renovate.

Nungesser said there has been talk about getting rid of the incentive before, and the tourism office did a study, sharing the value of how it has brought back life and commerce to many communities.

“One hundred projects will die if this goes away,” Nungesser said.

The governor assured him that anybody who has applied and been approved for credits will receive them. July ends the fiscal year. Nungesser. also passed along ideas to Landry about tax reform solutions that do not involve getting rid of the Rehabilitation Historic Structures Tax Credit Program and Movie Tax Credits.

“The Historical Tax Credit has been such a part of bringing towns back all over Louisiana, we ought to raise it, not lower it, because we need more money and incentives,” Nungesser said.

He said he’s talked to architects and others who said if the tax credits for this type of work ends here, they plan to go to Alabama, where this type of work has just started based on the success Louisiana has had with the program.

Jackie Dadakis of Greencoast said redeveloping the 40,000-square-foot Zephyrs building will be about a $19 million project. On the ground floor will be a food and beverage space. Office space will be on the second floor.

“We couldn’t be more excited about getting started,” Dadakis said — but with permitting in the early stages, don’t expect the sounds of hammers and saws any time soon.

She admitted there have been times when she was less enthusiastic. Tackling a renovation of any kind requires a leap of faith. Tackling the renovation of a historic building, tax credits or not, requires something more.

“We had hoped to have begun construction a year ago,” she said. “That’s when Silicon Valley Bank collapsed and a lot of regional banks pulled back. We had to go back to the table. But in real estate, there is always something, the cost of insurance right now for commercial properties. The Lieutenant Governor made a point when we were talking just now. As much as we might love this place, without the tax incentive it might be  easier to get projects done in another state.”

Thursday’s event was more than a chance for Nungesser to point to how tax credits could have a direct impact on downtown development here. A huge crowd turned up at the event, the first of two stops for Nungesser and the mayor of Lake Charles. Next was Port Wonder, a tour that shows off what’s been done and what’s planned to connect the downtown area and the lakefront.

Mayor Nic Hunter was not surprised at the big turnout. He said 710 St. Street deserved to have life again, and a lot of people recognized that.

“We wanted to come and acknowledge that and say thank you to the group that’s trying to do it,” Hunter said.

Historical restoration credits are up in the air in Baton Rouge, but, Thursday’s news event in downtown Lake Charles, talking with Nungesser and the ongoing support of the city of Lake Charles has restored Dadakis’ faith in her plan to take the next step to develop 710 Ryan St.