Morgan City Council looks at creating economic development district

By BILL DECKER
bdecker@daily-review.com
The Morgan City Council on Tuesday got a look at ordinances that would create an economic development district funded by a tax on hotel and motel guests.
The ordinance was introduced at the regular fourth-Tuesday meeting. Mayor Lee Dragna has promoted the district as a way to promote the city.
“Someone has to say, ‘Come to Morgan City,’” Dragna said after the meeting. “Not St. Mary Parish. Not Cajun Coast. Just Morgan City.”
Another ordinance introduced Tuesday would rezone a portion of the M.D. Shannon school property for residential use only, part of the plan to develop lots for sale there.
Also Tuesday, the council picked Waste Pro of Louisiana as the city’s new residential trash collection contractor beginning Nov. 1. The council heard a generally positive audit report, and decided to join in a large lawsuit over chemical contamination with a proposed nationwide settlement in the billions.
Development
district
The council passed a resolution authorizing advertisement of its intention to create the Morgan City Hotel/Motel Corridor Economic Development District. The ordinances introduced Tuesday would actually create the district, composed entirely of property containing hotels, and authorize a tax of 2% on hotel and motel occupancy.
The tax does not require a citywide vote, Dragna said.
The tax authorization ordinance said the district “to create a special trust fund, … the purpose of which is to fund economic development projects selected by the District. …”
The tax actually levied may be less than 2%.
Dragna read from a letter from Emmy Fuson of the Louisiana Travel Association, indicating that they’d agreed on a way to smooth over concerns on the part of hotel and motel owners.
The letter requested a sunset provision requiring reauthorization of the tax every three years and a tax of 1%.
The ordinance says 2%, but “the intent is to levy 1%,” Dragna said.
Two members of the association are likely to be on the district’s five-member board.
Typically, ordinances that are introduced at one meeting come up for a public hearing and passage vote the following month. The next City Council meeting will be Aug. 22.
One way to promote economic development here would be to create a sports complex for baseball, softball, pickleball and tennis, Dragna said after the meeting.
“That’s the next generation of tourism,” he said.
Trash pick-up
The council agreed with Public Works Director Mike Loupe’s recommendation to name Waste Pro of Louisiana as the city’s next residential trash pick-up contractor.
Waste Pro USA operates in 10 states. Its Louisiana operation currently serves 75,000 Louisiana customers, Assumption Parish residents among them.
Waste Pro submitted the low base bid of $21.48 per household per month. Waste Pro was one of four companies submitting bids, including Waste Management, Pelican Waste & Debris and current contractor Republic Services.
Waste Pro has agreed to put new trucks on the road in Morgan City, a major consideration for Loupe. He said older trucks sometimes lead to breakdowns and cleanup expenses.
Morgan City households will pay a rate higher than the $21.48. The exact charge was not available at press time.
Audit
Morgan City got good marks on its 2022 audit, performed by Kolder, Slaven and Co.
One recurring item in audits, the use of separate budgets for the 6th Ward Morgan City Court and the City Marshal’s Office, appeared again. Accountant Kristin Holcombe said the standard is to have them included in the city government budget.
The city court and marshal’s budget are audited separately.
Other black marks were largely technical in nature, including the inclusion of a purchase option in a lease agreement for equipment, which made the agreement subject to bid laws, Holcombe said.
Also, the agreement under which the city government purchased the M.D. Shannon property for $100,000 over three years was an extension of credit beyond 90 days, which means the deal should have gone before the State Bond Commission, she said.
The firm recommends that the city government should have a big enough reserve to handle operating expenses from one to two months. Holcombe said the general fund, utility fund and city budget are all at the borderline between one and two months.
She said city officials may want to look at reducing expenses or increasing revenue to increase its reserve funds.
M.D. Shannon
The council introduced an ordinance that would rezone a portion of the M.D. Shannon school property to R1-E, which forbids commercial uses, mobile homes and containerized homes.
The city bought the land from the St. Mary Parish School Board with plans to sell 15 lots for garden-style homes on the property while keeping the school building for youth programs and other events.
The Planning & Zoning Commission recommended approval of the rezoning at its July 18 meeting.
The ordinance could come up for a public hearing and passage vote as soon as Aug. 22.
Lawsuit
The council voted 3-1 to join in a lawsuit, the settlement of which could put money into the city treasury. How much has yet to be determined, but it will be 10% larger because the council met a deadline with Tuesday’s vote, local attorney Gerard Bourgeois said.
The lawsuit is over the development and use of a widely used class of chemicals called PFAs. The chemicals came into use in the 1960s in foam used to smother flames in aviation accidents. PFAs have also been used in nonstick cookware and fabric treatments.
PFAs break down slowly and have been linked to health problems, according to the U.S. Environmental Protection Agency website. National media accounts say the possible effects include liver damage and some forms of cancer.
Bourgeois said tests of Morgan City water found traces of the chemicals that were below the level considered dangerous.
The 3M chemical company reached an agreement June 22 in a series of lawsuits to settle for $10.3 billion. More negotiations are underway with Dupont, another industry giant.
Councilmen Tamporello, Steve Domangue and Tim Hymel voted to take part in the lawsuit. Councilman Mark Stephens voted no because he’s uncomfortable with the idea that money is coming from the lawsuits without cost. He said he had the same objection to a similar agreement settling opioid lawsuits.
“Somebody somewhere is paying,” Stephens said.
Spending
The council approved six Finance Committee recommendations for this item:
—$10,000 from excess sales tax revenue toward the purchase of a bus for the Morgan City Youth Center.
—$12,325 for 10 AR-style rifles for the Police Department.
—Up to $10,000 from the City Hall construction fund to repair the exterior of the Police Department and 6th Ward Morgan City Court.
—Up to $300,000 in American Rescue Plan money to build a pavilion at Lake End Parkway.
—Up to $30,000 from excess sales tax revenue to upgrade analog cameras at the Police Department and Morgan City Jail to digital.
—$53,200 from excess court and fine revenue to install eight cameras at entrances to the city. The cameras would be linked to a national database that could quickly find and identify vehicles belonging to fugitives or those fleeing a crime scene.