It’s sink or swim for Bass Pro Shops in the marshy state of Louisiana.
While Bass Pro’s plans for an Independence store involving tax increment financing fall under scrutiny in Missouri, the Louisiana Supreme Court has denied such public financing for a store there.
On Feb. 4, the court said a proposal to issue up to $50 million in bonds for a 75-acre private development in Denham Springs, La. – called the “Bass Pro Shops Project” in court documents – was illegal because it diverted tax money dedicated to schools, law enforcement and other public purposes.
The court ruling does not spell the end of Bass Pro’s plans, however; Louisiana public officials have successfully worked to get the matter on Livingston Parish’s April 23 ballot, giving citizens possession of a potential development lifeline.
The $50 million question: Will they extend it to Bass Pro?
The public officials involved think so.
“It should pass overwhelmingly because everyone is on board to do this for Livingston Parish and the state of Louisiana,” said Marshall Harris, chairman of Livingston Parish, one of five entities sacrificing tax dollars to build the Outdoor World.
Well, not everyone is on board. There is Ponder Jones, the retired education official who brought the issue to the courts and has said publicly he will continue to fight it.
Others have sent letters to the editors of local newspapers expressing disapproval.
“I do expect that the opponents will mount some sort of an effort to block it,” said Robert Poole, a member of Denham Springs’ City Council, who supports the TIF proposal.
Poole also serves as secretary and treasurer of the Denham Springs Economic Development District, which would own Bass Pro’s building until the bonds are paid off, at which time Bass Pro could purchase it at a negotiated price. The proposed deal is similar to a $24 million incentives package Bass Pro officials worked out in Broken Arrow, Okla., and the $70 million TIF for the Independence development that is under Missouri Department of Economic Development investigation.
Despite the naysayers in Louisiana, Poole and Harris expect easy passage in Livingston Parish.
Of course they do. They are among officials at the five public entities that approved relinquishing between 0.5 percent and 1.5 percent of sales tax revenues until the bonds are paid off – estimated at 20 years.
Perhaps they’re right. Then again, perhaps it’s wishful thinking.
Perhaps they’ve been wowed by Bass Pro King Johnny Morris and his men into thinking it’s OK – or worse yet, it’s the only way to get Bass Pro.
The sales pitch says that redirecting public money to a private company is good for everybody involved because it generates jobs, stimulates the local economy and ultimately returns the favor in astronomical sales projections – at least $30 million a year from Bass Pro Shops.
Poole said he was “in awe” of a recent presentation by Morris & Co. at the Springfield headquarters. About 16 officials representing the five public entities – school board, city of Denham Springs, Livingston Parish, sheriff and a drainage district – flew to Springfield in mid-February, shortly after the court ruling came down.
“It was an opportunity for us to meet with Mr. Jim Hagale and Mr. Johnny Morris and share with them our absolute commitment of making this work,” Poole said.
The pep rally, in essence, assured Bass Pro brass that the Supreme Court would not stop their plan.
The Louisiana bunch got the royal treatment, touring the headquarters, distribution center and the Mecca Outdoor World. “I’m not a big outdoors type, like a lot of people are here, but I was absolutely left in awe by the cosmetic appeal of the place and the whole experience,” Poole said, adding that he would love to have a store like that in Denham Springs.
Giving credit where it’s due, Bass Pro officials have been resilient. They know how to play this game and are doing quite well, posting a reported $1.5 billion in annual sales prior to this national surge, if you’re keeping score at home. Also in February, they signed a memorandum of understanding to redevelop an auditorium in Buffalo, N.Y., using partial public funding.
Livingston Parish is not the only place questioning the practice. A citizens group outside Pittsburgh has spoken out against plans giving Bass Pro and Tanger Outlet Mall real estate taxes for infrastructure improvements.
The point is, the Louisiana Supreme Court got it right. If it’s public money previously approved by the public for a specific public purpose such as schools, then the voting public should have the only say in changing that arrangement.
Whether Livingston Parish’s voters buy into Bass Pro’s development as an investment or not, they at least will have a say.
Perhaps the Louisiana Supreme Court ruling can set precedent for Missouri, Pennsylvania and other states tempted by retail dollars.
“The Bass Pro folks would like to invest as little as possible and I don’t fault them for that. That’s a business deal on their part,” Poole said. “On the other hand, the local taxing authorities would like to get everything that they could and I don’t blame them. That’s a business angle on their part.”
What do the people think?
Eric Olson is Springfield Business Journal news editor.
