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Regular Session, 2010
SENATE BILL NO. 716
BY SENATOR DORSEY
TAX/TAXATION. Creates the Thomas H. Delpit Area Special District in the parish of East
Baton Rouge and grants it certain TIF and tax authority to finance economic development
projects within the district. (7/1/10)
AN ACT1
To amend and reenact R.S. 33:9038.31(3) and to enact R.S. 33:9038.43, relative to the2
Thomas H. Delpit Area Special District; to create the district and provide for its3
authority; to grant to the district certain tax increment finance and tax authority; and4
to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 33:9038.31(3) is hereby amended and reenacted and R.S. 33:9038.438
is hereby enacted to read as follows: 9
§9038.31. Definitions10
As used in this Part, the following terms shall have the following meanings,11
unless the context requires otherwise:12
* * *13
(3) "Local governmental subdivision" means any municipality or parish or14
any municipality, parish, local industrial board, or local public trust authorized15
pursuant to R.S. 33:9038.33(N) or 9038.34(N) having jurisdiction over the16
geographical area bounded by the Mississippi River, the Orleans/Jefferson parish17 SB NO. 716
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line and the Orleans/Plaquemines parish line, or the Thomas H. Delpit Area1
Special District; but the provisions of this Part shall not apply to any of the2
financing of construction, renovations, or improvements of any convention center,3
hotel complex, and ancillary facilities within any municipality having a population4
in excess of one hundred ninety thousand persons but not more than two hundred5
five thousand persons according to the latest federal decennial census. However, the6
provisions of this Part shall apply to any parish having a population of not more than7
one hundred thirty thousand persons and not less than one hundred twenty thousand8
persons, according to the most recent federal decennial census, only as provided in9
R.S. 33:3098.41.10
* * *11
§9038.43. Thomas H. Delpit Area Special District12
A. Creation. The Thomas H. Delpit Area Special District, a special13
district and political subdivision of the state, hereinafter referred to as the14
"district", is hereby created in the parish of East Baton Rouge.15
B. Boundaries. The district shall be comprised of the area of East Baton16
Rouge Parish within the following boundaries:17
West on Terrace Street from Braddock Street to Napoleon Street; then18
south on Napoleon Street to E. Harrison Street; then east on E. Harrison Street19
to Georgia Street; then north on Georgia Street to Braddock Street; then north20
on Braddock Street to Terrace Street.21
C. Purpose. The district is created to provide for cooperative economic22
development between the district, the city of Baton Rouge, and the owner or23
owners of businesses, residences, and other property within the district in order24
to provide for housing, renovation, restoration, and development within the25
district.26
D. Governance. (1) In order to provide for the orderly development of27
the district and effectuation of the purposes of the district, the district shall be28
administered and governed by a board of commissioners of four people as29 SB NO. 716
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follows:1
(a) The mayor-president of East Baton Rouge or his designee.2
(b) One member appointed by the city-parish metro council.3
(c) One member appointed by the Senator representing the district.4
(d) One member appointed by the member of the House of5
Representatives representing the district.6
(2) A majority of the members of the board shall constitute a quorum for7
the transaction of business. The board shall keep minutes of all meetings and8
shall make them available for inspection through the board's secretary. The9
minute books and archives of the district shall be maintained by the board's10
secretary. The monies, funds, and accounts of the district shall be in the official11
custody of the board.12
(3) The board shall adopt bylaws and prescribe rules to govern its13
meetings. The members of the board shall serve without salary or per diem and14
shall be entitled to reimbursement for reasonable, actual, and necessary15
expenses incurred in the performance of their duties.16
(4) The domicile of the board shall be established by the board at a17
location within the district.18
(5) The board shall elect from its own members a president, vice-19
president, secretary, and treasurer, whose duties shall be common to such20
offices or as may be provided by bylaws adopted by the district. At the option21
of the board or as provided in the bylaws, the offices of secretary and treasurer22
may be held by one person. The board shall hold regular meetings and may hold23
special meetings as provided in the bylaws. All such meetings shall be public24
meetings subject to the provisions of R.S. 42:4.1 et seq.25
E. Rights and powers. In addition to the taxing, tax increment finance,26
and bonding authority provided for in Subsection F of this Section, the district,27
acting by and through its board of commissioners, shall have and exercise all28
powers of a political subdivision and a special district necessary or convenient29 SB NO. 716
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for the carrying out of its objects and purposes including but not limited to the1
following:2
(1) To sue and to be sued.3
(2) To adopt bylaws and rules and regulations.4
(3) To receive by gift, grant, donation or otherwise any sum of money,5
property, aid or assistance from the United States, the state of Louisiana, or any6
political subdivision thereof, or any person, firm, or corporation.7
(4) For the public purposes of the district, to enter into contracts,8
agreements or cooperative endeavors with the state and its political subdivisions9
or political corporations and with any public or private association,10
corporation, business entity, or individual.11
(5) To appoint officers, agents, and employees, prescribe their duties, and12
fix their compensation.13
(6) To acquire by gift, grant, purchase, lease, or otherwise such property14
as may be necessary or desirable for carrying out the objectives and purposes15
of the district and to mortgage and sell such property.16
(7) In its own name and on its own behalf, to incur debt and to issue17
bonds, notes, certificates and other evidences of indebtedness. For this purpose18
the district shall be deemed and considered to be an issuer for purposes of R.S.19
33:9037 and shall, to the extent not in conflict with this Section, be subject to the20
provisions of R.S. 33:9037.21
(8) Establish such funds or accounts as are necessary for the conduct of22
the affairs of the district.23
F. Funding. The district shall have such tax increment finance authority,24
taxing authority, and other authority that is provided to local governmental25
subdivisions in Part II of Chapter 27 of Title 33 of the Louisiana Revised26
Statues of 1950, including but not limited to:27
(1) Ad valorem tax increment financing and bonding as provided in R.S.28
33:9038.33.29 SB NO. 716
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(2) Sales tax increment financing and bonding as provided in R.S.1
33:9038.34.2
(3) Cooperative endeavor authority as provided in R.S. 33:9038.35.3
(4) Bond authority as provided in R.S. 33:9038.38. 4
(5) Ad valorem and sales tax authority as provided in R.S. 33:9038.39.5
G. Pledging of finances. The district may pledge any taxes collected6
under the authority of this Section to any economic development project in7
furtherance of the purposes of the district. Such financing may include, but8
shall not be limited to loans, mortgages, the issuance of bonds, or the issuance9
of certificates of indebtedness.10
H. Term. The district shall dissolve and cease to exist one year after the11
date of all bonds, notes, and other evidences of indebtedness of the district,12
including refunding bonds are paid in full as to both principal and interest;13
however, in no event shall the district have an existence of less than three years.14
I. Liberal construction. This Section, being necessary for the welfare of15
the city-parish and its residents, shall be liberally construed to effect the16
purposes thereof.17
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor18
and subsequently approved by the legislature, this Act shall become effective on July 1,19
2010, or on the day following such approval by the legislature, whichever is later.20
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Ann S. Brown.
DIGEST
Dorsey (SB 716)
Present law authorizes entities defined as "local governmental subdivisions" to implement
ad valorem tax and sales tax increment financing and to issue revenue bonds backed by a
pledge of the tax increments to finance all or any part of an "economic development project".
"Economic development project" is defined as, without limitation, any and all projects
suitable to any industry determined by the "local governmental subdivision" including public
works and infrastructure and projects to assist the following industries:
(1)Industrial, manufacturing, and other related industries.
(2)Housing and related industries. SB NO. 716
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(3)Hotel, motel, conference facilities, and related industries.
(4)Commercial, retail, and related industries.
(5)Amusement, places of entertainment, theme parks, and any other tourism-related
industry.
(6)Transportation-related industries.
(7)Hospital, medical, health, nursery care, nursing care, clinical, ambulance, laboratory,
and related industries.
(8)Any other industry determined by the "local governmental subdivision" whose
assistance will result in economic development.
Present law authorizes such "local governmental subdivisions" to enter into a joint venture
or cooperative endeavor for a public purpose with a federal, state, or local governmental
agency or with a private or public firm, partnership, corporation, or other entity.
Present law authorizes such "local governmental subdivisions" to issue revenue bonds and
other bonds and forms of indebtedness.
Present law authorizes such "local governmental subdivisions" to levy an ad valorem tax of
up to 5 mills and a two percent sales tax after the governing authority of the district gives
notice and meets in open and public session to hear any objections and the favorable vote
of a majority of the electors of the district voting in an election.
Proposed law creates the Thomas H. Delpit Area Special District and provides that the
district's boundaries shall encompass the following area:
West on Terrace Street from Braddock Street to Napoleon Street; then south on Napoleon
Street to E. Harrison Street; then east on E. Harrison Street to Georgia Street; then north on
Georgia Street to Braddock Street; then north on Braddock Street to Terrace Street.
Proposed law provides that the district is created to provide for cooperative economic
development between the district, the city of Baton Rouge, and the owner or owners of
businesses, residences, and other property within the district in order to provide for housing,
renovation, restoration, and development within the district.
Proposed law grants to the district all the ad valorem, sales tax, and occupancy tax increment
finance and bonding authority, and the ad valorem and sales tax levy authority granted to
"local governmental subdivisions" as described in present law.
Proposed law provides that the district may also pledge any taxes collected under the
authority of this Section to any economic development project in furtherance of the purposes
of the district. Such financing may include, but shall not be limited to loans, mortgages, the
issuance of bonds, or the issuance of certificates of indebtedness.
Proposed law provides for the district to be administered and governed by a board of
commissioners of four people as follows:
(1)The mayor-president of East Baton Rouge or his designee.
(2)One member appointed by the city-parish metro council.
(3)One member appointed by the Senator representing the district. SB NO. 716
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(4)One member appointed by the member of the House of Representatives representing
the district.
Proposed law requires the district to cease to exist one year after the earlier of the date all
indebtedness of the district is paid in full as to both principal and interest; however, the
district must exist three years.
The proposed law must be liberally construed to effect its purposes.
Effective July 1, 2010.
(Amends R.S. 33:9038.31(3); adds R.S. 33:9038.43)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Local and Municipal
Affairs to the original bill.
1. Technical amendments.