The commission granted preliminary approval to surrendering potential sales tax revenue for building roads, providing drainage and extending utilities to the proposed site, but proponents of the project must come back next month with supporting information.
State Treasurer John Kennedy said he wants to know why the state should surrender any future tax revenues for the project.
"We're giving a major benefit to the private sector," Kennedy said. "Are we getting the best for the state? Would we get them anyway?"Durel told the commission that because the Louisiana Avenue-Interstate 10 area is vacant "it's tough to attract development there."
Durel said he believes using a penny each in local and state sales taxes to build roads, improve drainage and extend utilities is a worthwhile venture that will pay off and bring additional development.
Kennedy said Target and the other stores that have expressed interest in locating there usually pay for their own infrastructure.
Members of the State Bond Commission say they like the idea of a new shopping center locating along Louisiana Avenue in Lafayette but they're not sure the state should have to pay a part of providing access to it.
Durel said that because the site is so far from other development and residential areas, "the only thing this has going for it is the interstate. The interstate makes it attractive. The TIF (tax incremental financing) makes it work."
Kennedy also expressed concern about the viability of the project.
"If the shopping center doesn't work and they don't get sales, we can't service (pay off) the bonds," the commission chairman said.
Bond attorney Ray Cornelius of the Adams and Reese law firm said the state is not liable for the bonds. Wells Fargo Bank is guaranteeing the bonds and will be responsible to the investors who purchase them.
Kennedy said he wants proof that the state is not bound to paying more than $10 million for the work, as pledged Tuesday to the Joint Legislative Budget Committee. Cornelius said he will supply that guarantee along with the other information at next months meeting.
When Durel and supporters come back to the commission next month, they will have to supply documentation, such as the primary beneficiaries of the funding, the economic value of the project, who's involved and the cost of issuing bonds. That information was missing from the original application.
Kennedy, who contested commission approval of TIFs to fund the construction of Bass Pro and Cabela's stores, questioned how the state decides which stores are worthy of such help.
Durel said the project is not designed to help any particular store but instead is to promote economic development in an area where there is none.
Among the stores mentioned during the committee meeting as proposed for locating at the site are Target, J.C. Penney, Office Depot, Lane Bryant, Ross Dress for Less, Petco, Wendy's and Chili's.
Sen. Joe McPherson, D-Woodworth, who owns a nursing home in Lafayette, said the state is not just giving up $10 million for this project but another $10 million for a road in the Youngsville area.
"There's no analysis of whether these 'incremental dollars' deteriorate the state sales tax base," he said.
Durel said the way the city/parish government looks at it is that it is not getting any money from commercial development because there isn't any at this site. So, it isn't a bad deal to surrender one cent sales tax to "build roads that everybody will use" and get three cents' tax income that the city/parish wouldn't get without the development.
Kennedy said he believes if a TIF is going to be used for commercial development, it should be reserved for a "destination" location that would draw shoppers from other areas, not just spread local money around.
"This is going to be a 'destination' for our area," Durel said. "There's nothing there now."