RÉSUMÉ DIGEST
Act 268 (SB 192) 2015 Regular Session Johns
Prior law authorized the governing authority of the city of Lake Charles to create, by
ordinance, a special taxing district and political subdivision of the state. Provides that the
district is comprised of the area west of Lakeshore Drive commencing at South Board Du
Lac Drive on the south to the north boundary of Veterans Park on the north and any area
described in prior law, which provides for development of the lakefront in the city.
New law instead provides that the district is comprised of all or a portion of the area of land
described in prior law. Otherwise retains prior law.
Prior law provided that the district has as its purpose cooperative economic development
between the city, Lake Charles Facilities, Inc., or the district, in order to provide for the
renovation, restoration, and development of a hotel within a certain area of the district and
the utilization of sales tax increment financing of the costs and expenses associated with
infrastructure improvements constructed in accordance with the Downtown Plan for
commercial and residential development of property located in the district.
New law clarifies that the purpose of the district includes financing costs and expenses
associated with development in the district. Deletes reference to Lake Charles Facilities, Inc.
and requires that the site plan for any hotel constructed immediately adjacent to the Lake
Charles Civic Center set forth the elevation and design of the hotel and designate the parking
area. New law further requires that the site plan be approved prior to construction by the
governing authority of the city. Specifies that the utilization of sales tax increment financing
must be in accordance with the terms and conditions of the voter referendum held on
March 5, 2007.
New law provides that "costs and expenses" include costs of construction, renovation, or
relocation of a hotel and related improvements, public buildings and other public structures,
and any other costs associated with an economic development project as provided in prior
law (R.S. 33:9035.1).
Prior law made reference to the Southwest Louisiana Convention and Visitors Bureau.
New law refers to the bureau as the Lake Charles/Southwest Louisiana Convention and
Visitors Bureau.
Prior law authorized the district to levy a hotel occupancy tax in order to provide funds for
the purposes of the district. Prohibited a hotel in the city from advertising room rates to the
general public at below market rates.
New law clarifies prior law by providing that a hotel cannot advertise room rates that are
below market rates for comparable hotels as reflected in the information received by the
bureau. Authorizes the district, if this information is not available, to use data collected by
any other public agency which regularly creates or receives data regarding room rates for
comparable hotels in the parish.
Prior law authorized the district to incur debt and to issue bonds, notes, certificates, and other
evidences of indebtedness. Authorized the district to pledge the taxes collected pursuant to
prior law to any financing of the hotel property and to pay revenue bonds from an
irrevocable pledge and dedication of up to the full amount of hotel occupancy tax increments
to finance or refinance any project or projects, or parts thereof, which are consistent with the
purposes of the district.
New law retains prior law but removes authority granted to the district to retire any bonded
indebtedness of Lake Charles Facilities, Inc. New law additionally provides that any
ordinance or resolution adopted by the district authorizing the pledge of tax increments
collected to secure bonds, debt obligations, or any other authorized financing shall be
published at least twice in the official journal of the city within 10 days after adoption.
Requires that the notice advise the public that any person in interest has 30 days from the
date of last publication to contest the legality of the ordinance or resolution. Provides that
after 30 days, no one shall have any cause of action to test the regularity, formality, legality,
or effectiveness of the ordinance or resolution. Prior law provided that the district under no event will have an existence of less than three
years. New law deletes prior law.
Effective August 1, 2015.
(Amends R.S. 33:9038.57(B), (C), (F)(1) and (2)(c), and (G)(2), (I), and (J); adds R.S.
33:9038.57(K))