News -> INDReporter TUE, FEB 15 11:15AM by Walter Pierce

Taxing districts on CPC plate

The Lafayette City-Parish Council is scheduled to vote Tuesday on introductory ordinances that would create a pair of economic development districts on a tract of land fronting Kaliste Saloom Road across from River Ranch. The project is in the early phase of development as a retail, dining, upscale lodging and park site known as Parc Lafayette. The twin districts, known as the Parc Lafayette Economic Development District and the Parc Lafayette II EDD, lie on about 34 acres skirted by Kaliste Saloom, Long Plantation and Camellia Boulevard, and Starling Lane.

Related introductory ordinances on the agenda would allow for the levying of additional taxes at businesses operating within the economic development districts: a 1 percent sales and use tax and a 2 percent hotel occupancy tax at phase one (21.2 acres); and a 2 percent sales and use tax and a 2 percent hotel occupancy tax at phase two (13 acres). The additional revenue over and above city and parish taxes that would already be applicable would be used to create trust funds, paving the way for the sale of bonds by the Lafayette Industrial Development Board and the Lafayette Economic Development Authority to fund infrastructure and other upgrades in the area.

In real estate developer parlance the site will be known as an “outdoor lifestyle center.” Announced more than a year ago, the land has been cleared, and basic infrastructure like utilities, storm water drainage and some paving are almost complete. It remains unclear what, if any, leases have been secured for the development.

Walter Pierce
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Comments (33)add
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written by You got to be kidding , February 15, 2011 - 04:29 pm
Joey Durel and Don Bertrand, those two Republicans sure do love tax increases!
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written by James Melancon , February 15, 2011 - 06:19 pm
There is a charm in these special taxing districts but it just adds more confusion to the tax system. Why not add a piggy back Parish wide income tax to the State tax?
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written by Ophelia 46 , February 15, 2011 - 06:54 pm
Here we go again. The original intent of the TIF district was to assist with infrastructure development in underserved areas for the purpose of economic development. Is this an underserved area lacking in infrastructure? NO. Have the taxpayers already paid taxes to install the infrastructure - e.g. roads, drainage, utilities, etc - in this area? Obviously, YES. So this tax will benefit only the commercial developer. One more thing: If this TIF is approved, won't the Council have to approve all the other developers who will make similar requests, thus creating a patchwork of TIFs and effectively increasing taxes without a vote of the people. Clever isn't it? And one more thing: If this project is viable, why was it not able to qualify for GO Zone bonds and why does it need government help?
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written by Compassionate One , February 15, 2011 - 07:22 pm
Hey Cowgirl!

How is your "fiscally conservative" hubby going to vote?
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written by BoFred , February 15, 2011 - 07:47 pm
Not for this in ANY way! This is one of the wealthiest areas of the state. I can't imagine what would locate there that I'd be interested in. I rarely go to RR now, & I certainly WILL NOT PAY ONE CENT OR TWO CENTS EXTRA FOR THIS DEVELOPMENT. I avoid RR as it is because of the the parking! And NOTHING PISSES ME OFF MORE THAN WHEN I HAVE TO GO THRU THERE AND I HAVE TO BE BEHIND OR WAIT FOR AN UNLICENSED GOLF CART!!! Ya wanna talk about "ENTITLEMENTS", how come these people are entitled to drive illegal vehicles on city streets??? AND I NEVER, EVER EVER SEE A BLACK & WHITE UNIT IN THERE UNLESS THEY'RE WORKING PAID SECURITY to redirect traffic!
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written by we know his record , February 15, 2011 - 08:41 pm
We all know Keith Patin is going to roll over for Durel & Co.
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written by LAFAYETTE NATIVE RESIDING IN CA , February 15, 2011 - 11:20 pm
Ya'll put these republicans in office and now you have to pay the rich. This is playing out all over america with these race hating,obama hating, liberal hating tea party and republican silliness.

Put the damm DEMOCRATS in office so that we can save the middle class and the poor.

Quit voting for them damm republicans because all they want to do is balance the budget on the backs of those of us who are less fortunate.

Ya'll a bunch of imbecils and ya'll go around repeating that silly sh&^ that ya'll hear jindal,palin,bret baer,beck,oreilly and the rest of those a%^holes.

Get ya'll lazy stupid a%%$@ out there and campaign fot the democrats to help obama tax them rich folks.

Otherwise, QUIT COMPLAINING!!
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written by ragin_cajun , February 16, 2011 - 01:51 am
Well, after reading Native's populist rant, I'm not sure if I should ask this question here or not...:) But I have a simple and totally serious question that will probably require some legal expertise to answer. But, perhaps someone here can answer since we're all pretty much local news junkies and I'm sure this question has been asked before.

The Home Rule Charter says very directly that all increases in sales and use taxes MUST go before the voters. So the Council doesn't have the authority to even do this. How do they get around that?

"All proposals to renew, levy a new or increase an existing sales and use tax shall be submitted to the voters for approval in accordance with the election laws of the state."

There's no wiggle room in there at all. Words mean what they say.
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written by Northsidian Shotgun , February 16, 2011 - 04:02 am
One day JOEY and his CRONYS will wake up and their first thought will be, why does my ass hurt like a mutha fo.....
Every dog has his day and these dogs day, is long overdue. Not every Republican smells, its only the present Administration that stinks with their slime bucket cronys.
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written by Unempirical Observer , February 16, 2011 - 02:37 pm
SHAMEFUL.
Using public funds to pay for private development costs to enrich only a few narrow set of investors.
A tax on the public resource base is a tax.
Sounds like classic example of state authorized extortion of the masses for private gain. Where have we seen such abuses like this (besides Denham Springs and the MegaFishingOutlet?)
Remember Durel's SuperTIFs that would blanket half of Lafayette?
What do you do when sales tax goes up to 12% in one area.

None of this is rehabbing an old inner city site. This is new speculative urban sprawl for the nouveau riche.
Let them pay higher retail prices and leave us all the option for higher sales tax if it is needed for our roads, bridges, ditches, recreation, schools, fire, police, water, planning and environmental quality.
This shameful charade should be rejected.
Can we get Shaq to come block this lay-up?
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written by LAFAYETTE NATIVE RESIDING IN CA , February 16, 2011 - 02:41 pm
QUIT COMPLAINING!! QUIT COMPLAINING!!

Get out and vote the progressive agenda so that we can lay out tax burden on the people who got us in this mess-the rich.
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written by andy hebert , February 16, 2011 - 06:14 pm
IMPORTANT Question:
Who will be in CONTROL of this “SPECIAL” TAX REVENUE SOURCE?
The C/P Council, the C/P Administration, a Parish appointed “Commission”, a City appointed “Commission”, Only City Registered Voters, Parish Voters, … just who?

As I understand, only those residing in a TIFF TAXING DISTRICT are eligible to CONTROL THEIR COLLECTED TAX REVENUES.

Not like the CITY OF LAFAYETTE SALES and PROPERTY TAXING DISTRICTS where those residing outside the DISTRICT can CONTROL THE SEPARATE TAX REVENUES.

I call for the City of Lafayette Leadership to establish its Corporate Limits as a TIFF District so we can CONTROL our own TAX REVENUES.

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written by LAFAYETTE NATIVE RESIDING IN CA , February 16, 2011 - 06:54 pm
I say: QUIT COMPLAINING!! QUIT COMPLAINING!!

If you are not rich, join the progressive movement so we can place the deficits that each state has on the backs of the people who caused.

Your whining and complaining is symptomatic of a facticious disorder. Either take your punishment from the republicans via taxing the middle class, or get well by joining the movement.

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written by Compassionate One , February 16, 2011 - 07:37 pm
Hey California Resident,

Why don't you go to Sacremento and help Jerry Brown? You guys have enough to worry about. MYOB dunderhead!
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written by LAFAYETTE NATIVE RESIDING IN CA , February 16, 2011 - 09:10 pm
written by Compassionate One , February 16, 2011
Hey California Resident,

Why don't you go to Sacremento and help Jerry Brown? You guys have enough to worry about. MYOB dunderhead!

I do not know what MYOB means.

I do know that Gov Brown will repair the damage that was done to california by dick and bush and the republicans.
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written by Wait a minute , February 16, 2011 - 10:48 pm
Won't the out of town residents pay the 2% tax on the hotel? We get a 5 star hotel & other people help to pay for it. If bonds are issued, the taxpayers are not responsible therefore there is no risk to the public. The bond holders are. This is my understanding. Am I wrong?
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written by Unempirical Observer , February 17, 2011 - 12:12 am
Aren't all public indebtedness part of the bond obligations and liabilities that go into factoring credit ratings for municipalities/parishes, the state and their subdivisions?

I'd say this is relevant if that's the question.
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written by The Original Northsidian , February 17, 2011 - 12:38 am
Folks if the investors need the taxpayers to finance their developments what's next?? A tax is a tax, is a tax, is a tax!! I don't care how you try to spin it.

THE REVOLUTION WILL NOT BE TELEVISED!!!!!
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written by ragin_cajun , February 17, 2011 - 02:40 am
There is an extra 2% tax at the hotel. There is also an extra 1% sales tax at the shopping center. Anyone who shops at that the shopping center will be charged a higher sales tax.

Whether it be out of town residents or not doesn't matter. I am against higher taxes on ANYONE. To say higher taxes are fine so long as my neighbor pays it instead of me is disgusting.

If there's no risk to the public, and Lafayette government isn't on the hook for the debt, then why even do this at all? Why can't the developer just charge higher rent, or charge a special fee of his own on every sale and every night's stay at the hotel?

Why does the taxing authority of the City of Lafayette need to back up the bonds if the developer issues them, and the city isn't borrowing the money?

This just doesn't pass the smell test.
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written by Dr.Northsidian Shotgun , February 17, 2011 - 06:44 am
Ga, why don't the same people who say the Home Rule Charter clearly states that the administration cannot increase the sales, or use tax, without the vote going to the registered voters, form together and file a suit against the ones who are attempting to raise the sales tax.
HELL, If it can be done in Egypt, it sure in the hell can be done in Lafayette Louisiana. They sure in the hell can't line us up and shoot us. All it will take is a few thou's and a willingness to correct the underhanded self interest crony group shenanigans to line their pockets at the expense of the working, " Tax Payers of the Parish.
In some other more plain words, either "PUT UP OR SHUT UP !
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written by LAFAYETTE NATIVE RESIDING IN CA , February 17, 2011 - 01:51 pm
written by ragin_cajun , February 16, 2011
I am against higher taxes on ANYONE. To say higher taxes are fine so long as my neighbor pays it instead of me is disgusting.

ragin cajun, now that you've slid from under that rock that you live under, you need to understand something about taxes.

Government must tax the populace so that we can do stuff. I am happy to pay a cent or 10 if it will enhance the community.

Where I get hazy with you pro constitution, lovers of the constitution, constitutional loving lovers, constitution this and constitution that and ben franklin this and john adams that and forefathers this and forefathers that and yadie yadie yadie....I get dizzy with your kind protesting and raising hell in the streets to give the rich more tax breaks and take the bargaining power from the common middle class worker and find any excuse not to do infrastructure in this country.

Slide back under your rock and let warm blooded americans discuss this issue.
Oh and don't forget, Obama is a socialistmusulimcommunistdictatornonchristianantiameric
anblahblahblah
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written by RCajunrunner , February 17, 2011 - 01:58 pm
Ragin_Cajun and Dr. Northsidian:

Councilman Theriot tried to bring up at the meeting Tuesday night that the Home Rule Charter does not allow for tax increases without a vote of the people. He was laughed at by the pro-tax increase crowd.
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written by Back Door Durel , February 17, 2011 - 06:26 pm
TIFs are a back door way to raise taxes without voter approval for the benefit of private interests. Given time, the entire parish will become a patch work of different sales tax rates, complicated by controls on where the funds are spent. This will become a mess not to mention a power grab by the parish government.
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written by Soop. , February 17, 2011 - 10:25 pm
If you don't want to pay the tax, don't shop there. It is that simple. I don't plan to shop there or stay there. But if it means Lafayette is more attractive to conventions, vacationers, etc ... then I am fine with it.

But the knee-jerk nihilists hear "tax" and they lose any rational ability to think this through. The owner wants it. Whatever shop owners chose to lease there will obviously have no problem with it. Whoever stays at the hotel will have agreed to it.

No one is forced to use it. This TIF stuff is purely voluntary and all by choice. Why are those who call themselves conservatives opposing this again?

All the best,

Soop
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written by BoFred , February 17, 2011 - 11:19 pm
You know what, I don't think I want to finance the finest hotel in Louisiana and there is a nasty smell to this deal. If the investors can't afford to build this then don't, and I don't think Lafayette needs another hotel, much less the most luxurious in Louisiana. I don't like the idea of a tax increase not voted on by taxpayers. I sure hope this fails. I don't expect it will. Lafayette is becomming a real example of how the finest minds can come up with the most diabolical ways to circimvent the law without breaking it.
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written by Docy B , February 17, 2011 - 11:46 pm
written by BoFred , February 17, 2011
If the investors can't afford to build this then don't,
Lafayette is becomming a real example of how the finest minds can come up with the most diabolical ways to circimvent the law without breaking it.

First of all Freddie, if you believe investors should pay their way and get off welfare, then you admit that oil giants should not get the 45 billion in subsidies.

As far as the diabolical circumvention of ways to steal our money, republicans call that capitilism, I call it socialism.

Yep, that's what your republicans are about-stealing our money.
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written by RCajunrunner , February 18, 2011 - 02:19 am
Looks like Docy B doesn't know the difference between a tax break and a subsidy.

Here's a hint: One involves government TAKING LESS of what one earns, while the other involves government actively GIVING public tax dollars to an entity to artificially support a good or service.

Oil companies receive tax breaks.

Entities like corn ethanol producers, solar, windmills, chicken plants in North Louisiana and the various non-profits that elected officials in government favor recieve subsidies.
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written by Unempirical Observer , February 18, 2011 - 02:45 am
Taxes are public funds.
Public funds will be used for a private purpose.
This in and of itself may not be an offensive action (such as investing in private activity in underserved and economically depressed areas to achieve a public good) however, in this instance, using public funds to enrich ONE Developer to promote a luxury product in the most affluent sector of Lafayette, and that fails to enhance the civic atmosphere of the Mean Average Population to this reader seems an unfair use of government and an unjust abuse of taxing power. TIF's were not presupposed for this purpose.
This is about a developer using our elected officials to capitalize (literally) on a captive audience (the body politic of Lafayette) to finance his projects, for his gain only. I don't see the exigent or future gain in exploiting TIF's for this purpose, not one so narrowly conceived.
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written by Positive attitude , February 18, 2011 - 04:25 am
Not sure if most people realize that Leda, 4 years ago, put together a TIF package to attract a 4 or 5 star hotel. Several people considered applying for it, but the economic atmosphere was not strong enough for it to be attractive at that time.
Dr. Stewart is taking advantage of something that any developer can apply for, if he or she can put the package together.
Unfortunately he has had to take the brunt of a lot of criticism for just answering the call of the economic development experts who think that Lafayette will benefit from a hotel/convention center.

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written by Cajun Yodeler , February 18, 2011 - 02:13 pm
written by LAFAYETTE NATIVE RESIDING IN CA , February 17, 2011
"Where I get hazy with you pro constitution, lovers of the constitution, constitutional loving lovers, constitution this and constitution that and ben franklin this and john adams that and forefathers this and forefathers that and yadie yadie yadie....
-------------------------

It is good to read you believe in rule of law.



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written by ragin_cajun , February 19, 2011 - 01:07 am
"Unfortunately he has had to take the brunt of a lot of criticism for just answering the call of the economic development"

Well, when you go to the government and ask them to levy an incremental tax so your "steak will have some sizzle", you might have to answer some questions, and you might encounter some skeptical taxpayers. I'm sure Dr. Stewart is a big boy and can
take care of himself. Especially with Joey Durel making the sales pitch for him. Sizzle for the steak--from his days as a "restauranteur" at Arby's I guess. What a tool.
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written by Unempirical Observer , February 19, 2011 - 01:18 am
Two words to describe this:
Corporate Welfare

Actually, it's worse than that. They are using the power of law and force to command taxation assessments that are directly given to the developer.
Any silly arguments that "you can just go shop somewhere else" are absurd. That is nothing but a talking point bamboozling redirection from the core ethical problem here, as stated by this poster and others.
The problem is that this is not helping restore an old part of town, an economically depressed area of town. It is helping those who do not need the help by using of the force of law to levy and collect taxes.
How is this different than those city-wide TIFs?
I'm sure they won't let us publicly demonstrate at this private property that receives public funds either.

And yes, last time one of these districts was put together to offer the developer at the corner of I-10/I-49 some off ramps and other public investment on private property for non-public needs. Those developers completely abused the term "mixed-use" to boot.

Also, I guess our convention center next to the dome just isn't good enough.
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written by ragin_cajun , February 19, 2011 - 01:50 am
Shotgun--

In some other more plain words, either "PUT UP OR SHUT UP !"

Great advice! Can you refer me to an attorney? I have trouble finding attorneys willing to do principled honest work like this. If you know of one, do tell. I have a little "war chest" set aside for just such a project, so I won't embarass you by showing up with no skin to put in the game.
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