Patterson council rethinks system for tax exemptions

PATTERSON — As Tuesday’s Patterson City Council meeting got underway at City Hall, colleagues and audience members paused to sing “Happy Birthday” to council member Travis Darnell. But it was parish Economic Development Director Frank Fink who got what he’s been wishing for.
Darnell and fellow council member Sandra K. Turner made and seconded a motion and then voted to pass a resolution giving the parish president the authority to act on their behalf on applications for Louisiana Industrial Tax Exemption Program benefits. The resolution passed unanimously.
Darnell and Turner voted no when the idea first surfaced at the March meeting, when it failed 2-2 on a tie vote broken by Mayor Rodney Grogan. Council member Joe Russo III was absent at that meeting. Under the council’s procedures, if the measure was to be reconsidered, it was up to one of the members who had voted no to bring it up again.
Fink, who was present at Tuesday’s meeting, and Parish President David Hanagriff have asked local governments to give the parish president authority to act on their behalf when prospective manufacturers who may come to St. Mary seek exemptions from local property taxes under the state-administered program.
The exemptions were created to get manufacturers to come to Louisiana and create jobs.
Without a unified authority, Hanagriff and Fink have been telling local governments, potential employers might look elsewhere so they don’t have to apply for the exemption separately from the parish council, the sheriff, the school board, and maybe a town or city council.
They’ve said that before the parish president makes his decision, an economic model would be used to determine whether the exemption’s benefits would outweigh the costs.
In March, Turner and Darnell expressed concern about giving up the council’s authority on the exemptions.
But Turner, who had asked to see the economic model, said Tuesday that “it was very impressive and informative. I was impressed to see what they use.”
Darnell feels more comfortable now that he’s had a chance to learn more about the process.
“We want to move forward,” he said. “But I think that the most important thing is to do our homework.”
Grogan said he hadn’t objected to the idea as much as he wanted more information. He also felt the city isn’t adequately prepared to offer a site for a new manufacturer and said council members should meet with the Planning and Zoning Commission to discuss the matter.
One of the selling points for the parish president has been that a resolution could be quickly withdrawn if the council doesn’t think it works to the city’s benefit. They may have to do a bit of fine-tuning later this year.
The resolution passed Tuesday specifically refers to a schedule offering 100 percent exemption from property taxes for the first five years with an option for an 80 percent exemption for the following three years. That’s the state system now in place.
Gov. John Bel Edwards has proposed a change offering an 80 percent exemption in each of 10 years, giving the local governments that give up the tax revenue something beginning in the first year.
The proposed change has to be approved by the Louisiana Board of Commerce and Industry. Under a tentative timeline provided by Louisiana Economic Development, the changes could go into effect as early as Aug. 20.
The parish council, the St. Mary Parish School Board, the sheriff’s office, and the councils in Berwick, Patterson and Morgan City have now signed on to the resultion.
Also Tuesday:
—Janis Merritt, who has been interim police chief for less than a month, brought a complicated personnel problem to the council.
It’s about employees returning to work for light duty because of a medical condition. Merritt said that for police officers, light duty could mean doing the filing or similar work. But even then, an officer could be in a position where physical action is required, such as dealing with inmate laborers.
Attorney Russell Cremaldi said he would prepare a report about the related employment law.
—The council made a $5,000 donation to the St. Mary Council on Aging, which runs senior centers and delivers meals to homebound people.
—Center of Hope Executive Director Crystal Hebert thanked the council for supporting the agency’s efforts on behalf of people with physical or developmental disabilities.
—The council heard about the upcoming Fit Fun & Fabulous mini sessions and follow-up scheduled for 10 a.m.-2 p.m. June 2 at the AARP building, 4014 Chennault St. in Morgan City.
The event is geared to encouraging healthy lifestyles and offers free health screenings, music and food.
Organizers say they’re considering a similar event for Patterson, possibly in February or March.
—The council approved a permit for Shaq’s 5K Run at 8 a.m. Saturday. The benefit run will start at Patterson High School.