The massive development project known as Summit Fremaux got the Slidell City Council’s approval Tuesday night, as it passed four ordinances that would establish the project site a special taxing district.

The project, backed by local businessman Robert Levis and Birmingham, Ala., developer Bayer Properties, is estimated to cost $1 billion when it is finished. It will cover 400 acres of land between Fremaux Avenue and Old Spanish Trail along Interstate 10. Calling it a “city within a city,” Bayer’s co-owner, David Silverstein, told the council the project will contain 750,000 square feet of retail space, office buildings, housing, plus a tech park and Northshore campus for the University of New Orleans.

Partial funding for the project comes from $350 million in Gulf Opportunity Zone bonds issued by the federal government to help rebuild the area after Hurricane Katrina. The bonds were awarded in October 2007. To raise the rest of the money, the council agreed Tuesday night to declare the project site an economic development district and a community development district. Once that was done, the council approved an increase of the sales tax within the new district by 1 percent. Finally, the council approved a hotel occupancy tax levied on guests at a proposed hotel to be built in Summit Fremaux. The four ordinances give the go-ahead to Bayer to issue bonds for the expected $39 million to build the retail center, which is the first phase of the project. The extra sales tax will go to paying off the 20-year bond debt and for infrastructure and maintenance of the district.

The increase in the sales tax caused concern for a lot of citizens at the standing-room only council meeting. Some people were upset because Slidell citizens were not allowed to vote on the increase. Bayer’s attorney, Ray Cornelius, explained that since no one currently lives in the district, there is no need for an election, and only the council has to approve the increase.

Still, some Slidell residents were skeptical.

Buddy Lloyd, who lives in the Brugiere area along Fremaux Avenue, said residents have already paid tax money for the two major roads to be built in the district and the new I-10 exchange at Fremaux Avenue that is to open in several months.

“Just how much do we pay for this? We paid $20 million for the interchange, another $10 million for the roads. I’m not against the project, just opposed to raising taxes,” Lloyd said.

The parish and state have agreed to pay for an extension of the I-10 Service Road, between Fremaux and Old Spanish Trail, plus a boulevard that will run through the retail area.

Another Slidell resident, Tom Harvey, was worried the tax increase would never expire.

“Will there be an end to the bond issue?” Harvey asked the council.

“The tax will expire after the bonds are paid off,” Cornelius said.

However, if more work needs to be done within the district more bonds could be issued, and the tax increase would be maintained to pay off that debt.

But only the council can approve any new work or the issuing of any bonds, Cornelius said.

Council members also assured residents the increased sales tax would only apply to shoppers within the Summit Fremaux and not anywhere else in the city.

Councilwoman Kim Harbison said she was skeptical at first but learned the tax is only for that one district.

“It will go for infrastructure and maintenance. The district will be self-supporting,” Harbison said.

Council President Ray Canada said the council has made changes to the original ordinances to make sure Slidell doesn’t get saddled with financial responsibility.

“A lot of thought has gone into this,” Canada said.

Silverstein added that when all is said and done, it is Bayer that will take all of the financial responsibility.

“It’s all on our shoulders. The city will not lose a dime in this,” Silverstein said.

Bayer Properties has built similar projects in Birmingham, Ala., Louisville, Ky., and Reno, Nev. Silverstein said financing for each of the projects has varied, even having the Birmingham city government help pay for the development.

Several Slidell council members toured the Birmingham Summit last week and were impressed with the facility.

“The place is 14 years old, but it looks brand new. I was very impressed,” Harbison said.

“Similar financial tools have been used to build retail areas in Gonzales and other towns in the area,” Councilman Joe Fraught said. “I see a lot of good for Slidell. It will raise the level of retail and housing in the city.”

Silverstein said the retail area would be an “open-air lifestyle center,” not a closed-in mall. He said the marketing for the space will be aimed primarily at women, for upper-end stores.

“Retail response has been great,” Silverstein said. Department stores Macy’s and Belk’s have signed on to Summit Fremaux along with bookstore chain, Barnes and Noble. There will also be a 14-screen movie theater.

Asked why Slidell was chosen, Silverstein said that after studying the area for four years, Bayer Properties finds the site “a fabulous regional location.” Bayer hopes to attract customers from St. Tammany Parish, New Orleans and the Mississippi Gulf Coast.

“We are not speculators,” Silverstein said. “We will not have empty stores. Our leasing is going quite well.”

The main stores will be in a town square format, surrounded by extensive landscaping that will include fountains and sculptures, Silverstein said. Each storefront will be individualized so the retail center doesn’t look uniform.

“We do not want to put down malls, but we are offering an alternative form of shopping,” Silverstein said.

Forty acres of the district will be occupied by UNO. Norma Grace, UNO representative at the council meeting, said the university will first build a 70,000-square-foot building to house its Northshore campus. The university is hoping to attract high-tech companies to set up shop in its UNO Tech Park.

“With Michoud and Stennis nearby, we will be a hot bed of research, that will spur growth into spin off hi-tech companies,” Grace said.

Mayor Ben Morris was ecstatic about Summit Fremaux. He saw the project creating hundreds of jobs for the area. Silverstein estimates that while under construction, the project will generate 2,200 jobs. After Summit Fremaux is completed with the UNO Tech Park, Silverstein sees about 5,000 new jobs created.

“This will open doors to all our citizens,” Morris said, “I fully support it.”

Councilman Warren Crockett saw another financial boon to the city from the project.

“I’m not in favor of raising taxes, but this project will bring in sales tax revenue into other parts of the city from customers who come to shop at Fremaux and then shop elsewhere in the city,” Crockett said. “This will generate money all over the city. This will be nothing but good for the city.”

Of course, there was one nay-sayer on the Council and that was Richard Hursey who voted against all four of the ordinances that set up the Summit Fremaux taxing district.

“This has given me a lot of heartburn,” Hursey said. “Believe me, I think the project is great. I’m not against it, but it takes away the public’s right to vote on the tax increase.”

He suggested that if they increase the tax inside the new district, it should be offset by a tax decrease in Slidell.

But as Slidell resident Colleen Hawley said, “Nobody likes taxes, but I think the cost is worth it. This is a real plum for Slidell. I applaud everyone for their vision.”

The votes on all four ordinances was 7-1 with Hursey voting against. Councilman Bill Brochert was absent.