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NEW ORLEANS - Council President Helena Moreno and Vice President JP Morrell are undertaking a major review and action plan for economic development incentives to improve transparency, create clear guidelines, and reduce subjectivity in the decision-making process for economic development incentives. Morrell and Moreno believe that this is necessary to create a more inclusive, fair, and non-political business climate in New Orleans. Several pieces of local and state legislation will begin to be introduced, including today. Today, Moreno and Morrell filed an ordinance to set a clear determination on when the clock starts ticking for consideration of certain incentives. While this may appear like a minor clarification, the ambiguity of timeline starts can lead to lessened transparency for projects.
Morrell and Moreno’s staff have begun the heavy task of analyzing current incentives and are also looking at initiatives working in other cities. Currently, the New Orleans City Council may grant Restoration Tax Abatements, Industrial Tax Exemption Program exemptions, and Payment in Lieu of Tax exemptions in the River District. The Finance Authority of New Orleans and the Industrial Development Board also provide incentives.
The councilmembers are partnering with GNO Inc., community and business stakeholders, along with state legislators as they work through a proposal that will require many voices at the table.
"The public should never have to play catch-up on multi-million dollar projects that will impact the city for decades to come," said Council Vice President Morrell. "Economic development projects that receive tax incentives must receive scrutiny and transparency so that the public can be informed and engaged. Any entity looking to do business in the City of New Orleans with tax incentives should have no problem with public participation in the review process."
“Let’s face it, not everyone feels like it’s a fair playing field doing business in New Orleans, and that’s not good for moving our city forward," said Council President Moreno. “We need to change the way things are done so that New Orleans is a fair city to do business where everyone gets a fair shot if you follow the processes. Decisions on incentives should be based objectively, not subjectively, and increasing the level of transparency around incentives will leave less room for error, provide a more inclusive, equitable, and professional business climate, and ensure support for meaningful projects that benefit the people of New Orleans.”
“I’m excited to work with Councilmembers Moreno and Morrell as well as Senator Jimmy Harris on reforming and bringing transparency to how our city evaluates and awards economic development incentives across the board," said State Representative Jason Hughes. "Specifically, we’re working together to bring more deliberation and transparency to the Industrial Development Board PILOT process. This will both improve outcomes and build confidence that these incentives have tangible returns.”
The ordinance will go before the Economic Development Committee on Monday and be considered by the full Council on February 22.
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