PROPOSED DONATION BY CITY OF OLD LIBRARY BUILDING TO SHREVEPORT CHAMBER MAY BE ILLEGAL

The Shreveport City Council will consider a donation of the old downtown library building to the Greater Shreveport Chamber of Commerce at its next meeting on Sept. 14.

I previously published in Focus SB and on Settle Talk a column on this proposal: "Shreveport City Council Should Impose Restrictions on Proposed Donation of Downtown Library to Shreveport Chambers."

An attorney versed in municipal law contacted me over the Labor Day weekend suggesting that this donation was prohibited by the Louisiana Constitution, specifically Art. 7. Sec. 14 that reads, in part, as follows:

"Except as otherwise provided by this constitution, the funds, credit, property or things of value of the state or of any political subdivision shall not be loaned, pledged, or donated to or for any person association or corporation, public or private."

This section does have numerous exceptions to this prohibition, and there are many court decisions and attorney general opinions interpreting these provisions of the La. Constitution.

He also sent this text to me:

“The City's proposed donation of the building to the Chamber must be governed by Article 7, Section 14 (A) of the Louisiana Constitution of 1974. Generally, this provision prohibits the donation of public property.  In the Cabela's case, 938 So. 2d 11, the Louisiana Supreme Court established a three-prong test to determine whether this constitutional provision is violated: 1) There must be a public purpose; 2) The transfer must not be gratuitous; 3) The public entity must receive at least an equivalent value in exchange for the transfer.

I am not certain the City can simply declare the building surplus and donate it to the Chamber without undertaking the Cabela's three-prong analysis!

It is possible the City can grant the Chamber the right to use the building for 25 years under 33:4712.2. Nevertheless, the procedural requirements of 33:4712 must be observed. The procedural requirements of 33:4712 are comprehensive.”

The purpose of the media, in this writer's opinion, is to educate the public on issues of public interest by reporting facts, and when expressing opinions, to have those factually based.

This column is intended to  only raise this issue for the Council and not to express a legal opinion. Presumably, counsel for the Chamber and/or the Shreveport City Attorney's Office will address this issue before the council vote.