§ 33:130.865.1 — Payment in lieu of taxes

Louisiana § 33:130.865.1

• Jurisdiction: Louisiana
• Title 33: Municipalities and Parishes

Text

§130.865.1. Payment in lieu of taxes
A. Any property that is acquired or owned by the district or any subdistrict is hereby
declared to be public property used for public purposes and shall be exempt from all ad
valorem taxes. However, any improvements thereon, other than those improvements owned
by the New Orleans Exposition Hall Authority, shall be subject to all ad valorem taxes, or,
in the alternative, a payment in lieu of taxes, subject to the process defined in Subsection B
of this Section.
B. Subject to prior review by the New Orleans City Council of an economic
development project with a payment in lieu of taxes agreement as provided for in this
Section, the district or any subdistrict may designate any property it acquires or owns, each
no greater than one discrete parcel subject to its own ad valorem tax bill, to be an "economic
development project" that may be leased to a lessee subject to the lessee making payments
to the tax collector for the city of New Orleans in an annual sum in lieu of ad valorem taxes
to compensate the city of New Orleans for any services rendered to the economic
development project. The annual sum, together with any fees and charges to be paid by the
lessee, shall not be in excess of the ad valorem taxes the lessee would have been obligated
to pay in that year had the property been owned by the lessee during the period for which the
payment in lieu of taxes is made. The payment to be made in lieu of taxes, together with any
fees and charges of the district or any subdistrict, shall constitute statutory impositions within
the meaning of R.S. 47:2128. Prior to entering into the payment in lieu of tax agreement, the
district or any subdistrict, acting by and through the board, shall provide the city of New
Orleans office of economic development with the payment in lieu of tax proposal for
property designated an economic development project serving the public purposes of the
district or subdistrict, which proposal shall consist of the following:
(1) The term of the payment in lieu of tax proposal evidenced in a payment in lieu
of tax agreement.
(2) The annual amount of the payment in lieu of taxes to be paid by the lessee.
(3) A description of the economic development project identified in the payment in
lieu of tax proposal, which at a minimum shall consist of one or more of the following:
(a) For each distinct parcel and lot within the economic development project,
including areas therein that are leased to sublessees, creation of at least ten new permanent
jobs.
(b) For each economic development project in aggregate, creation of an affordable
workforce housing development of not less than seventy-five housing units, defined to be
priced at an affordable or workforce rate, as then defined by the United States Department
of Housing and Urban Development, for a minimum period of thirty years.
(4) Documentation that the economic development project identified in the payment
in lieu of tax agreement will meet all required city standards, including but not limited to the
city of New Orleans local hire and disadvantaged business enterprise rules, as well as all
applicable rules within the Comprehensive Zoning Ordinance of the city of New Orleans.
Each payment in lieu of tax proposal, as defined in this Section, shall be submitted prior to
acquiring or owning an economic development project with the payment in lieu of tax
agreement. The proposal shall be submitted to the city of New Orleans office of economic
development for review via personal delivery to the director of the office, in exchange for
a stamped receipt by the office or via registered or certified U.S. mail. The office of
economic development shall have forty-five days from the date that the proposal is received
to review the payment in lieu of tax proposal, pursuant to those standards in this Section and
any additional requirements which may be adopted by the office of economic development,
and transmit a recommendation of approval or denial to the New Orleans city council
through the clerk of the city council. The city council shall have fifteen days from the date
that the proposal is received by its clerk to review the payment in lieu of tax proposal,
followed by an additional thirty-day period to adopt a resolution disapproving or approving,
with or without amendments, the proposal. The thirty-day approval period shall include a
hearing before the city council economic development committee, which may recommend
a vote of disapproval, approval, or approval with amendments on the resolution to the full
city council. The payment in lieu of tax agreement shall be deemed denied for execution by
the district or any subdistrict if the city council fails to adopt a resolution approving the
proposal, with or without amendments, within the thirty days following the fifteen-day
review period. The payment in lieu of tax agreement related to an economic development
project within the district or any subdistrict shall become effective upon approval by
resolution of the board of the district or any subdistrict after the payment in lieu of tax
agreement has received the approval of the city council and has incorporated the city council
amendments, if any, to the payment in lieu of tax agreement.
C. All economic development projects for which a payment in lieu of tax agreement
is approved shall submit annual project compliance reports to the city council and office of
economic development with such data that shall be required by the office of economic
development.
D. Failure to comply with any provision of the approved payment in lieu of tax
agreement shall be grounds for amendment or cancellation of the agreement by further
council resolution.
E. In connection with the lease of any property owned by the district or subdistrict
to a private entity, the contract of lease or other agreement shall not be subject to R.S.
33:4710.11(D)(4) and (5).
F. Nothing in this Section shall be construed to relieve any party of the obligation
to comply with the Comprehensive Zoning Ordinance of the city of New Orleans, including
but not limited to provisions related to inclusionary zoning.

Legislative History

Acts 2023, No. 212, §1.