Durel sells road tax
City-parish president says it will benefit builders most

Claire Taylor


Lafayette City-Parish President Joey Durel tried to convince more than 250 real estate agents, home builders and mortgage bankers Tuesday that a proposed 1-cent sales tax for roads will benefit their industries more than any other.

"You are who is building Lafayette right now," Durel said at a luncheon hosted by the Acadian Home Builders Association, the Acadiana Mortgage Lenders Association and the REALTOR Association of Acadiana.

Voters in some Lafayette Parish communities will decide Nov. 7 whether to attach an additional 1 cent in sales taxes to what they already pay. The tax would be dedicated for building roads.

The additional sales taxes collected in the year since hurricanes Katrina and Rita are not enough to complete even Kaliste Saloom Road, Durel said. A 1-cent sales tax is expected to generate $30 million in revenue that can be bonded over time to build $400 million in road projects, he said.

Lafayette Parish pays the lowest taxes of seven major cities in Louisiana, at least 1 cent less than those in other parishes, Durel said.
"If you decide it's not important, we're going to be fine. We'll be sitting in traffic, but we'll be fine," he said.

Barbara Rogers, president-elect of the REALTOR Association, said she supports the road tax because it may be the only way the industry can continue to build new homes in undeveloped areas farther from the city.  "The frustration level is very high," she said.  Besides, shoppers from surrounding parishes who visit Lafayette will help pay for new roads with the added sales tax, Rogers said.

If voters approve the sales tax on Nov. 7, it will be collected beginning Jan. 1. Some smaller projects could begin within six to eight months, Durel said.

Carole Horn of Van Eaton & Romero said some have heard that the planning commission's Growth Opportunity Technical Team is considering who should pay for improvements like roads and drainage when new developments are built. Many in the industry are concerned that impact fees will be imposed on developers to pass along some of the costs, when they already are facing higher construction costs, insurance and other expenses, she said.

The three associations believe impact fees are an unfair tax that will undermine the industry and put home ownership farther out of the reach of median income citizens, Horn said.

Durel said there has been little discussion about impact fees on the technical team and no decision by the City-Parish Council.
But, "progress ain't free. It doesn't just happen," Durel said.

If the road tax fails on Nov. 7, the Growth Opportunity Technical Team, of which Durel is a member, will probably increase its discussions about impact fees, he said.

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