Jennings City Hall

The city of Jennings is one step closer to creating its first economic development district.

The creation will allow the city to levy a new one-cent sales tax within the district’s boundaries to help offset a sewer lift relocation project. The project will help accommodate construction of Hebert’s Boudin and Cracklins.

The City Council introduced an ordinance Tuesday creating the district following a public hearing where no one spoke. The council is expected to adopt the measure at its March 14 meeting.

“The council is in support of the economic development district because this is going to create a template to lure new businesses and cover expenses of accommodating those new businesses,” Mayor Henry Guinn said.

The district includes 1.7 acres at the corner of La. 26 and Interstate Drive between Walgreens and Shoney’s restaurant. The site was the location of an old convenience store, but has been vacant for several years.

The sewer lift relocation project is expected to begin by the end of the month. Construction of Hebert’s Boudin and Cracklins will begin once the lift station is relocated from the property, Guinn said.

The state allows parishes and municipalities to create economic development districts and provides for the collection of up to a two percent sales tax to help offset the cost of infrastructure projects.

The sales tax will not affect any other businesses and will have a minimum impact on local residents who buy items from Hebert’s Boudin and Cracklins, Guinn said.

Under the measure, the city will collect an extra one-cent sales tax from sales at Hebert’s Boudin and Cracklins to recoup costs associated with relocating the sewer lift station which is estimated at $360,000. The lift station, which is located in the center of the property, needs to be relocated before construction begins on the store, Guinn said.

Revenues generated from the extra sales tax will be dedicated revenue and placed in the city’s utility fund to cover the cost of relocating the lift station, Guinn said. The city estimates it will take six years for Hebert’s Boudin and Cracklins’ to reimburse the city for the project.

The city can vote to remove the district and the additional sales tax after six years or they can keep the district in place.