The Shreveport City Council is expected to pass unanimously the ordinance creating the downtown Film and Entertainment Gateway Economic Development District (District) at its meeting this afternoon.
This new District covers the city-owned Red River District, two city-owned buildings leased to Curtis "50 Cent" Jackson, three downtown buildings owned by Jackson and two downtown lots (one dirt and one paved) also owned by Jackson.
The District is created to promote TV and film production/editing. Moneys generated for the District (District Fund) can only be expended upon the recommendation of an oversight board subject to confirmation by the City Council.
The District Fund money can be remitted directly to Jackson or any other business owner in the District. The only limitation on these monies is that it must be expended in the District. It is envisioned that Jackson will be the recipient of most if not all of the money deposited in the District Fund.
The District will have three funding sources under this ordinance:
1. City sales taxes collected in the district over and above a 2024 sales tax baseline. Currently the City sales tax is 2.75%. These monies will be directed to the District Fund.
2. An additional two (2%) percent district sales tax that is expected to be recommended to the City Council and approved. These additional sales tax collections will be deposited into the District Fund.
3. Sales and use taxes on items purchased out of state that are for use/consumption in the District. Assuming the out-of -state retailer collects the City sales tax portion and remits it to Shreveport, then the purchaser will owe an additional 2% use tax. If sales tax is not collected by the out of state retailer and remitted to the City, be that the current 2.75% or the anticipated 4.75%, then the purchaser must also remit that amount to the City for deposit in the District Fund.
This means that the sales taxes collected on everything from lumber to paint to cameras and carpet purchased IN the state of Louisiana and OUTSIDE the District will not be remitted to the District Fund.
Jackson most likely will purchase big ticket items needed for film production and editing out of state due to the lack of availability and/or cost in Louisiana. In those instances Jackson must pay an additional 2% use tax that will be directed to the District Fund, which will be over and above sales taxes.
In essence Jackson will be paying sales taxes, and possibly use taxes, on the front end on purchases for the District with the anticipation of getting a refund of these monies on the back end when TV and/or film production/editing is accomplished. This public private partnership will incentivise redevelopment within the District without any public funding other than the remission of sales taxes.
Bottomline, if Jackson delivers on his development plans for the District, he will be rewarded by the refund of monies from the District Fund. The goal of this economic district is to effectuate a permanent economic base for the District that will not only benefit the District but all of downtown Shreveport.
John came to Shreveport in January of 1977 when he was transferred to Barksdale AFB.
He’s been active in Shreveport politics since deciding to make Shreveport his home.
John practiced law for 40 years and he now monitors local politics. He regularly attends Shreveport City Council and Caddo Parish Commission meetings.
John is published weekly in The Inquisitor, bi-monthly in The Forum News, and frequently in the Shreveport Times.
He enjoys addressing civic groups on local government issues and elections.