James Joseph Whitney Sr.
September 15, 2009
Genevieve D. Carlos
September 17, 2009
The Terrebonne Economic Development Authority will submit to the Terrebonne Parish Council a plan to create Tax Increment Financing districts within the parish.
The TEDA board passed the motion during its meeting last week.
A TIF district uses projected property and sales tax revenue increases to finance current infrastructure improvements. The improvements could help the value of property in the district to rise, paying for the cost of the improvements through an increase in tax revenue.
Like any publicly created district, TIF districts have the power to tax, said Ray Cornelius with the Adams & Reese law firm, who helped draft TIFs legislation in Louisiana.
The Terrebonne Parish Council would have to approve the creation of the districts, said TEDA CEO Mike Ferdinand.
TIF districts were created in 1952 in California and have been used there extensively since then.
“TIFs allow you to take an area,” Cornelius said. “The increased taxes in the district are used for economic development.”
“TIFs are becoming more and more used in communities,” Ferdinand said. “It allows us to have another tool in our chest.”
“They’re becoming more attractive because of the instability of the economy,” he said.
Also at the meeting, the board passed a motion to end TEDA’s membership in the South Louisiana Economic Council, the Thibodaux-based regional economic development agency, if no response was received from SLEC by last week.
“We have little representation from them,” said board president Mike Voisin.
TEDA originally set an Oct. 15 date to come to an agreement with SLEC, but board member Morris Hebert motioned to move the date up to last week.
“Communication has been nonexistent,” Hebert said. “It’s a lack of communication on their end. I don’t see any reason to delay.”
TEDA has not paid dues to SLEC in more than five years.
Board member Brad Doyle said belonging to a regional economic group is important.
“If you’re not part of the region, you suffer,” Voisin said, adding that he was saddened by the possible termination of the relationship between TEDA and SLEC. “There are other regional groups.”
On Monday, Ferdinand said SLEC board chairman Jake Giardina had contacted TEDA and agreed to meet with the TEDA board.
Ferdinand said an agreement still must be reached by the Oct. 15 deadline.
Also, TEDA announced that it issued $5 million in Gulf Opportunity Zone Bond financing to Houma Anheuser-Busch distributor Buquet Distributing on Sept. 3.
GO Zone financing was established after hurricanes Katrina and Rita by the federal government to provide businesses located in hurricane damaged areas with reduced interest-rate loans.
The funding will allow Buquet to expand its facility by 30,000 square feet.
“With the change in financial markets in the past year, many projects in many communities have had to be placed on hold because of available financing and strength of the individual project,” Ferdinand said in a release. “The act of this bond issuance moving forward is a testimony to the strength of our local economy and Buquet Distributing.”
Terrebonne Economic Development Authority board president Mike Voisin (left) and board member Charles Adams sign documents for Buquet Distributing’s GO Zone financing. * Photo provided by TEDA
