(The Center Square) – Two new resolutions concerning “payment in lieu of taxes” programs were introduced on Tuesday by the Shreveport City Council.
One of the PILOT programs is between the Northwest Louisiana Finance Authority and Barret Senior, LP, and the other is between the same public trust and Fairfield Building Lofts, LP.
The first project is estimated to cost $20.2 million, involving Barret Senior, LP. The Northwest Louisiana Finance Authority will refurbish the previously vacant Barret Elementary School and lease it to Barret Senior to use as a 74-unit senior housing facility in the city.
The Northwest Louisiana Finance Authority is a public trust that can buy and use property as public property for essential and governmental purposes, exempting it from all taxes from the state and municipality.
“During the term of the PILOT Agreement, the company will receive the benefit of a reduction in ad valorem taxes associated with the Project as well as an abatement on sales and use taxes on construction materials and equipment purchased for the redevelopment,” outlined the company.
The project involving Fairfield Building Lofts, LP, is estimated to cost $18.8 million as the public trust refurbishes another empty building in Shreveport. Similar to the Barret Senior project, the Fairfield Building project is a 50-unit workforce housing facility located by the LSU-Oschner building.
Shreveport and Caddo Parish offer a number of economic development incentives – the PILOT program being just one. Apart from the property tax abatement program, they have the Restoration Tax Abatement, which is a five-year, 100% property tax abatement for rehabilitating existing structures.
Both projects are requesting economic development financing, which is why they are entering into the PILOT agreement if approved by the City Council.
The city of Shreveport must approve the PILOT since they are a beneficiary of the public trust.
These resolutions cannot be adopted before Sept. 23.
