Welsh wants economic development district to levy two-cents sales tax
The town of Welsh wants to create a new economic development district to allow it to levy an additional two-cents sales tax to help subsidize the cost of road improvements needed for a proposed truck stop and convenience store.
The additional sales tax would only be collected on inside sales made at the truck stop and convenience store. The additional sales tax would not apply to fuel or affect any other businesses, according to Mayor Karl Arceneaux.
On Tuesday, the council agreed to enter into a cooperative endeavor agreement with the Louisiana Department of Transportation and Development to improve the turning radius onto the west Frontage Road, just north of I-10. The project will also include a concrete island in the center for a stop sign.
“This will keep the trucks from having to turn into the oncoming traffic to make the turn,” Arceneaux said.
The project is expected to cost the city over $300,000.
The council wants to add the additional two-cents sales tax to its current two-cents sales tax on all in store sales made at the truck stop and convenience store to help recoup the costs of service road improvements. The additional sales tax would not apply to fuel or affect any other businesses, according to Arceneaux.
“I talked to the developer and he doesn’t have a problem with adding the additional two-cents sales tax because most of the business will be transient traffic,” Arceaneaux said. “It won’t affect many locals and will be for inside sales only.”
Arceneaux said if the truck stop and convenience store makes $250,000 worth of inside sales a month, at four-cents, it would generate about $10,000 a month for the town which would take just over 30 months to recoup the cost.
The city of Jennings recently created a new economic development district to allow the city to levy a one-cents sales tax within the district’s boundaries to help subsidize a sewer lift relocation project. The lift station is being relocated to accommodate construction of Heberts Boudin and Cracklins.
Arceneaux said the additional sales tax revenue is also expected to help Welsh recover the lost of losing two major tractor and equipment dealerships that will be relocating out of the city.
“I feel like this is a great opportunity for us because we don’t know when we will get another opportunity like this,” Alderwoman Jackie Balmer said. “If we want Welsh to grow and be here in the future we have to accommodate big truck traffic and that’s why the service road has to be updated. In the long run, I think we will be glad to have this.”
Alderman Clint Hardy said had road improvements been made earlier to the frontage road, the town may not be losing businesses.
Alderwoman Andrea King, who voted against the agreement with the DOTD, said there are a lot of opportunities, but you can’t just jump on them just because they are opportunities.”
Construction of the truck stop and convenience store is expected to begin soon on a six-acre site on the West Frontage Road.
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