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New Iberia council advances Line Avenue economic district after residents worry about sales-tax costs
Summary
After a public commenter warned that a local sales-tax increment could force a retiree to skip medication, the New Iberia City Council defended a proposed economic development/TIF district for the Line Avenue shopping center and voted to create the district while reserving a later vote to levy any tax and set accountability terms.
A public commenter opened the meeting by warning the council that a small sales-tax increase tied to a developer-backed economic district could directly harm low-income residents: "Perhaps she'll go without that medication. Perhaps she'll go without lunch or two," the commenter said, calculating an additional $22.50 in charges for a $200 purchase.
Mayor (speaking as the city’s lead on the item) framed the proposal as a standard economic development tool used across neighboring towns to attract retailers. "In a town like New Iberia that is very competitive with our neighboring communities, and we don't always win, this is how we've been getting new businesses," the mayor said, citing past projects that brought stores and jobs to the city.
Council members pressed for specifics on scope, sunset and accountability. Several members asked whether the tax would apply to the whole city (it would not) and how long any levy would run. Councilman David Merrill asked for a clear time limit and monitoring mechanisms; the mayor and staff said those requirements would be written into the cooperative endeavor agreement with the developer.
Andrew Jarreau of Foley & Judell, representing the city’s legal/technical advisers, told the council: "What the ordinance does tonight actually just creates the district. . . the council will have to take additional action after this to levy the tax. . . [and] you could require essentially receipts on what they're spending the money on." Jarreau said the cooperative endeavor agreement could include itemized reporting, a sunset date and other accountability measures.
Supporters on the council and in public comment said the district would fund infrastructure (sidewalks, signage, parking-area improvements) and help retain retail sales that now flow to Lafayette, creating local jobs and sales-tax revenue. Skeptics argued that developers—some of whom are out-of-state—should bear upkeep costs and not rely on public dollars, and urged a voter referendum for the sales-tax question.
The council moved forward to create the economic development district tonight; members said a later council action would be required to impose any tax and to approve the cooperative endeavor agreement spelling out receipts, the sunset and enforcement. The council invited the developer and the city’s firm to return with those contract terms for further review.
What happens next: the ordinance introduced tonight establishes the district boundary. Any levy of a sales tax and the cooperative endeavor agreement that would bind the developer to reporting, standards and a sunset must be approved at a future council meeting.
