The City of New Iberia will hold a public meeting June 16 to discuss the creation of a new Economic Development District to be located at the Lagniappe Village shopping center at 1102 Admiral Doyle Drive.
The shopping center, owned by RockStep Capital, currently houses national chains such as TJ Maxx, ALDI and PetSmart among others. According to New Iberia mayor Freddie Decourt, the developer reached out to request the EDD in order to help cover infrastructure improvements for the parking lot. The ordinance that creates the EDD would also implement a one-cent sales tax on all purchases in the district.
DeCourt says the purpose of the tax will be to refund the developer for an initial investment into improvements for the facility's infrastructure.
“The city keeps none of this money. This goes to pay the developer back for their investment," DeCourt said. "Much like the other developments and investments the city has been attracting, it comes with some incentives. Our median income is lower than some surrounding communities, so without these incentives businesses don’t come.”
The one-cent sales tax will only be applied to sales within the shopping center itself, not citywide, a fact that city officials argue is important for consumers concerned about additional costs.
“People will ultimately have a choice of whether or not they shop there,” said councilman Ricky Gonsoulin. "It's not every business in New Iberia that's going to have this."
DeCourt says the EDD will increase the city’s sales tax revenue, give residents more opportunities to do shopping in the community, and create additional economic opportunities within the city, a sentiment that Gonsoulin concurred with.
“We’re not trying to re-invent the wheel here. This is done all over the state and nation to try and attract businesses,” said Gonsoulin. “There’s some naysayers out there who say we’re taxing them to death. We’re not. We’re creating an environment and a quality of life for people to raise their families. That costs money.”
Additionally, since the district does not have residents within the boundaries, voter approval is not required. Local residents will have an opportunity to voice their opinions on the district’s creation during the June 16 council meeting.
Both the procedural resolution and the ordinance allow for the creation of the EDD passed with unanimous approval from the council.