Top Ten Unanswered Questions Regarding Juban Crossing Here’s my top ten list for things the Livingston Parish Council might consider about Creekstone developing Juban Crossing before handing out hundreds of millions of dollars: 1. The developer says Juban Crossing will produce $625M annually in sales, with 1.2M square feet of retail space. That is $520 per square foot. No retail space in the state of Louisiana achieves those numbers except the Mall of Louisiana. Livingston Parish doesn’t have the same per capita income or the population density the Mall of Louisiana does. Per DOTD, there are about 100K cars a day on the interstate by the mall exit, about 30K more than Livingston. There have been several news stories lately about former tenants at Town Center, who say Keller misrepresented the sales numbers there. 2. If Juban Crossing actually did $625M in sales annually, that would mean taxpayers are pledging $20.3M per year in sales tax revenue to this private developer ($625 x .0325) so he can issue bonds. For 30 years. That’s over $600M in future tax revenue as security. 3. Why do taxpayers have to give this developer $200M in bond money to build this development? A report in the Baton Rouge Business Report says the total cost of the project is $350M. The taxpayers get to pay more than half and the developer owns it all? 4. Did the parish council ever get any expert advice on whether this is a fair deal for the parish and the taxpayers? What consulting firm did they hire? Is it common for them to make a decision of this magnitude without expert advice? 5. Has the parish even ordered a Dun & Bradstreet report on the developer to see that they are sound financially and meeting all their other financial obligations? 6. Would making a decision of this magnitude without due diligence potentially expose the parish to more legal action? 7. Has the council considered any restrictions on the bond money? Will it only be paid out in increments as the various phases of the project are completed? What assurances or performance guarantees exist to make certain the project is completed in full or that it is actually as upscale as promoted? 8. The developer is asking for 100% of the drainage money on a project that will put 471 acres under concrete. To completely tie up the taxpayer’s drainage money for 30 years is questionable. That much storm water runoff is bound to create some issues, some of which may not be foreseeable over 30 years. 9. At 10.5%, Juban Crossing will be known as the highest sales tax rate in the state of Louisiana (with the exception of the special 10.75% rate at the New Orleans airport). In fact, this will be one of the highest sales tax rates in the entire nation, according to Vertex, which makes tax software for national retailers. 10. Has it ever occurred to council members that Juban Crossing is actually preventing development in Livingston Parish? This project has been talked about since 2005. Retailers that intend to expand only open a certain number of stores per year. Retailers continue to overlook the Livingston Parish market each year, waiting on Juban Crossing to happen. They are content to expand elsewhere and wait. Are we? Bonus question: Why would the council approve something that 60% of the voters oppose? (According to a poll done by the Livingston Parish News)
Posted on: Wed, 24 Jul 2013 18:59:39 +0000
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