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The City of New Orleans

Mayor Mitchell J. Landrieu

Finance Loans & Grants

Louisiana's Community Development Block Grant Program

The primary objective of the Louisiana Community Development Block Grant (LCDBG) Program is to provide assistance to units of general local government in non-entitlement areas for the development of viable communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Non-entitlement areas are municipalities with a population of less than 50,000 and parishes with an unincorporated population of less than 200,000. Each activity funded under the LCDBG Program must address one of the following two national objectives: Principal benefit to low and moderate income persons (at least fifty-one percent) Elimination or prevention of slums and blight.

Payment in Lieu of Taxes (PILOT)

Made to compensate a local government for some or all of the tax revenue that it loses because of the nature of the ownership or use of a particular piece of real estate property. Usually it relates to the foregone property tax revenue.

The Industrial Development Board will essentially own the facility and lease it back at a predetermined rate which will be less than the ad valorem on the facility. Timeframe is determined by a cost benefit analysis. Past PILOTs have ranged from 10 to 30 years.

Industrial Revenue Bonds

Industrial Revenue Bonds can be issued by New Orleans Industrial Development Board to finance industrial sites and buildings, equipment, storage facilities and pollution abatement and control projects.

The issuance of revenue bonds for manufacturing facilities generally takes about 90 to 120 days to complete. The following steps, with minimal variations in order, depending principally on the type of Issuer, are generally required for the issuance of bonds:

  • Communications begin with the Issuer to determine qualification of Project.
  • Submission of an application (together with applicable fees, if any) to the Issuer.
  • Adoption of the official intent resolution (preliminary approval) by the Issuer.
  • Submission of application to State Bond Commission for preliminary approval. (A check must be sent and made payable to the Louisiana State Bond Commission representing the State Bond Commission initial application fee in the amount of $1,500.)
  • Determination of the structure and method of offering the Bonds.
  • Financing documents drafted and distributed to all parties.
  • Financing documents to be reviewed and finalized, and Official Statement, if applicable, to be drafted.
  • Issuer adopts final approval resolution approving the issuance of the Bonds, the execution of financing documents and the sale of the Bonds; Issuer will also conduct a public hearing at this time.
  • Volume cap application is filed with State Bond Commission.
  • Obtain state volume cap allocation.
  • Obtain approval of the parish governing authority.
  • Obtain approval from the Louisiana Secretary of Economic Development.
  • Bonds are delivered to the original purchaser.
     
  • Industrial Revenue Bonds

To view additional Louisiana Economic Development (LED) Incentives, please visit http://www.opportunitylouisiana.com/index/incentives leading directly to LED incentives

 
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Last updated: 5/6/2015 12:08:52 PM

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