St. Tammany News

Slidell City Council will hold public hearing in March

Customers would have to shell out a little extra sales tax when they shop at the proposed multi-million dollar complex, commonly known as the Tech Park, if the Slidell City Council passes four ordinances introduced at Tuesday night's meeting. Two of the ordinances would create the Fremaux Community Development District and the Fremaux Economic Development District, which would establish the area bounded by Interstate 10, Fremaux Avenue and Old Spanish Trail into a special taxing district.

The third ordinance would increase the sales tax by 1 percent within the FEDD and would only be imposed on shoppers who buy goods within the district.

Finally, an ordinance was introduced that would levy a 1 percent hotel occupancy task to be paid by visitors who stay at the proposed hotel to be built within the Tech Park.

The huge project is being developed by Bayer Properties, LLC, of Birmingham, Ala., on 400 acres of land owned by local businessman Robert Levis. The final cost of the entire project is estimated at $1 billion, said Steve Pomerantz, Bayer Properties vice president of development.

Pomerantz told the City Council Tuesday the sales tax increase is needed to help pay for the cost of construction, slated to begin April 22 and be completed by 2010.

Even though the Louisiana Bond Commission awarded $250 million in Go Zone bonds for the project last October, Pomerantz said Bayer Properties must sell about $10 million in 20-year bonds to help construct the infrastructure in the area. There will be a boulevard running north and south through the middle of the complex and a frontage road that will parallel I-10, and the W-14 drainage canal must be widened.

Creating a Fremaux Community Development District would make it possible for Bayer to assess the property and instead of paying property taxes to the city, put the money in a special account to pay off the debt service for the bonds.

"We tax ourselves, and we pay the debt service," Pomerantz said.

He also added Bayer Properties will do its own assessment of the land.

The increase in sales tax would also go to paying off the debt service. Shoppers within the Tech Park would pay 9.75 percent sales tax, as compared to the 8.75 percent sales tax outside the FCDD.

Pomerantz said the retail center, which will go under the brand name of The Summit, is phase one of the entire project and will cost $150 million to build. The Summit will be a 750,000-square-foot, open-air shopping center with a Dillard's, Belk's and Barnes & Noble as the anchor stores. There will also be a 14-screen movie theater, a park and sidewalks, along with 50,000 square feet of office space.

The next phase of the project will be to build condominiums and single-family housing around the retail center, and then the University of New Orleans will build a Northshore campus and tech park on the northern section of the property.

"It will be a city within a city, a small downtown," Pomerantz told the council.

However, some council members were cautious about the proposals.

Councilman Landon Cusimano wanted to know how the city could impose a tax increase without a public referendum.

Bayer Properties attorney Ray Cornelius said state law states if there are no electors in the area to be designated an economic development center, there is no need for an election.

"There are no electors in the district," Cornelius said. "There is no way to have a tax election without electors."

Cusimano rebutted that Northshore Square Mall does not have residents, yet the city levies a sales tax on the stores.

Cornelius said the council could draft special legislation so that people could vote on the tax increase. He offered his help in drafting the ordinance.

Cusimano also wanted to know who would be on the board that would oversee the tech park area. Cornelius said the City Council would be the board and elect officers.

"We cannot do anything without the council's approval, " Cornelius said. He added that revenue generated by the retail center would go into a special city account to pay off debt service.

He suggested the council create the Slidell Industrial Board as an entity that would issue the bonds.

Councilwoman Kim Harbison wanted to know why there was such a rush to get the ordinances passed.

Pomerantz said the proposed bond issuance was tied in with the Go Zone bonds. There is a time limit on the Go Zone bonds, and if they are not used by May, they will no longer be available.

"You can't do one without the other . We need to form the FCDD and FEDD in order for the Go Zone bonds to be issued," Pomerantz said.

The council did pass two resolutions that instructs the city to publish in the local newspaper their intent to form a FEDD and FCDD and to levy the sales tax increase and hotel occupancy tax to pay for the construction of the Tech Park. The resolutions passed 8-0. Councilman Richard Hursey was absent.

Still, the council seemed a bit cautious about the process. But Councilman Kevin Kingston said the council still had a choice.

"These are just resolutions. We still have 30 days and still have time to say no," Kingston said. "We at least need to get moving on it."

Slidell Chief of Staff Robert Dunbar, representing Mayor Ben Morris, who was absent, agreed.

"This is a huge economic development and quality of life issue," Dunbar said. "It seems to me that if there is no financing, nothing happens, which would be a shame for the area."

The public will gets its turn to express their views on the tax increase when the four ordinances are presented in a public hearing at the March 25 council meeting.

To see the ordinances, go to the Slidell Web site at www.slidell.la.us, and click on City Council link, and go to the Agendas link.