PROPOSED AMAZON TIF DISTRICT NEEDS CAREFUL REVIEW BY CADDO COMMISSION

John E. Settle Jr. 
Editor/Publisher
focus SB News

Caddo Commissioner Steven Jackson placed on the Caddo Commission Aug. 19 agenda an ordinance to create the North Caddo Economic Development District, which would be a Tax Incentive Financing (TIF) District. The purpose of this district is to allow incremental increases in sales taxes, property taxes and hotel occupancy taxes to be separately deposited and then “loaned, donated or pledged in furtherance of economic development projects” as defined by state statute. 
The ordinance was set for a first reading, which means it would at a minimum lay over for enactment until a second meeting of the Commission. 
For good or bad, the Aug. 19 Commission meeting was cancelled at the last minute due to concerns over obtaining a quorum of seven members. The commissioners had been alerted that a commission employee who attended the Monday work session had tested positive for Covid. (This employee was masked and sat in the socially distanced chambers, with no personal interaction with the commissioners, who were separated by substantial distance and several Plexiglass partitions.) 
Jackson’s proposed ordinance has several issues that need to be carefully reviewed by the Commission Economic Development Committee. 
Initially, the suggested area for the district along North Market needs careful review. The map attached to the ordinance shows that it runs from Martin Luther King Drive south to Hearne Avenue. Seemingly, it encompasses the entire Amazon fulfillment center site and the first row of businesses on both sides of North Market, as well as the shopping center north of I-220. 
Secondly, it is unknown if any of the businesses in this corridor have been contacted for any discussion of the TIF and its proposed boundaries. Although further Commission action would be needed to impose additional taxes or tax set asides, the inclusion of the new Amazon facility may be premature, if merited at all. 
The Economic Development Committee, chaired by Commissioner Lynn Cawthorne, reviewed TIFs at its last meeting with a telecon briefing by an experienced TIF attorney. Jackson’s proposal should be carefully vetted by this committee with input from his attorney, along with input from the businesses within the district, especially Amazon. 
The Economic Development Committee passed a resolution to have all the empty I-49 interchanges north of Shreveport placed into separate TIFS. This resolution has not been enacted upon by the Commission. 
Currently, there are two TIFS in Shreveport -- the Red River District and Mall St. Vincent (Dillard’s and the old Sears building are not in the district). Additional sales taxes imposed in each district are dedicated for expenditure in that area. 
TIFs can be a great benefit to the building owners within the district. However, care must be taken in setting up the district lines as well as determining the purpose of the TIF – i.e., additional sales tax, dedication of increase in ad valorem taxes due to property appreciation, etc. 

THIS ARTICLE WAS PUBLISHED IN THE August 27 ISSUE OF FOCUS SB - THE INQUISITOR. SUBSCRIBE TODAY AT http://www.theinquisitor.com