Day197 Monday 03/14/11

ran 4.5 miles
On a local level, the Tea Party of Lafayette, Louisiana earned an impressive victory recently by putting a stop to a potential TIF (Tax Incremental Finance) district on Kaliste Saloom Road and Camellia Boulevard. Developer Glenn Stewart and Lafayette Economic Development Authority pulled the plug on this TIF District because people became involved and spoke up to stop it. In an article written by Real Estate Investor Jeremiah Supple at teapartyoflafayette.com he explains what a TIF is and outlines how unfeasible this particular proposal was.

A TIF, as described by Mr. Supple, can be used as a ‘loop hole’ around the laws that prohibit a parish to raise taxes without a vote of the public. The taxes on a TIF typically go to reduce the developer’s cost to develop the project. In that respect, tax dollars go to the developer. In a TIF, it is the Council, instead of the public, that determines the taxes paid and who will receive it. In the case with Parc Lafayette, the developer, Glenn Stewart, said he needed another $20 million from tax dollars to change his project of building a Boutique Hotel into a 300-room 5-star hotel.

These are the numbers Mr. Supple used to back up his argument that this TIF was a bad idea and a potential added burden to taxpayers of Lafayette.

• It takes 65% occupancy to break even on service debt in a new hotel in Lafayette, The market is 52%, with 500 more rooms coming on line this year.

• It takes $22 to $24 dollars per square foot to service debt on a new retail center, the market is $15.

• It takes $28 to justify new construction on Office space the market is $17.

Congratulations, Tea Party of Lafayette, for standing up and telling local government that more taxes for expansion we cannot afford is unacceptable. The disappointment in local government that this TIF was even proposed is far outweighed by the proud act of watching people come together to exercise their rights and to express their disapproval of any new taxes that cause more harm than good---especially loop holes that the people who are taxed do not even have the ability to vote for.

Become involved in Lafayette and make a difference! Check out teapartyoflafayette.com and acadianapatriots.com.

1,520.8 miles to go.