§9023. Creation of nonprofit economic development corporations; procedure for authorization to act; powers and authority; preparation of plan

A. There is hereby authorized in the state and each local governmental subdivision of the state the creation and organization of nonprofit economic development corporations, hereinafter sometimes referred to as corporation. No such corporation, however, shall be organized, transact or do any business, or exercise any power as may be granted herein until the legislature or the governing authority of a local governmental subdivision shall declare a need for such a corporation.

B. Any group of three or more persons may apply to the legislature of the governing authority of a local governmental subdivision of the state in writing for permission to organize and be designated an economic development corporation. Each application shall include proposed articles of incorporation, bylaws, description of proposed corporate structure and a full and complete listing of the assets of the proposed corporation. Each application shall also include a proposed economic development plan. Said plan shall provide an overall policy and plan of action, stating goals and objectives for alleviating the conditions of economic distress affecting the jurisdictions in which said corporation is to act. It shall set out the geographic location in the affected jurisdiction where local economic development activities should be directed to achieve maximum effort which area upon the approval of the governing authority shall be designated an economic development area, and shall specify, so far as practical the types of activities that may best achieve the purpose of increasing the aggregate income of the community, enabling income to be distributed to low and moderate income persons, and creating greater job diversity by attracting and retaining job producing establishments. It shall be stated in each application whether the proposed corporation shall develop proposals on its own for projects to achieve the goals and objectives stated in its proposed plan or whether it will issue request for proposals from other public or private association, corporation, or individual for economic development projects.

C. The corporation is hereby authorized and shall have all the authority and power necessary in order to carry out and effectuate the purposes and provisions of this Chapter, including without limiting the generality of the foregoing, the following specific powers which shall be in addition to others herein granted and which shall be self-operative:

(1) To sue and be sued.

(2) To adopt, and from time to time amend and repeal bylaws, orders, rules and regulations to govern the affairs and conduct of its business in order to effectuate the provisions of this Chapter.

(3) To acquire by purchase, lease, lease-purchase, option, gift, grant, bequest, or device, any property immovable or movable, or any interest therein which it may deem necessary to carry out the purpose and provisions of this Chapter and to make capital improvements, acquire equipment, and provide funds for such purpose through cooperative endeavor agreements which may provide for the transfer of title to such property upon successful achievement of the goal set forth in such agreements.

(4) To sell, convey, mortgage, lease, transfer, donate, option, exchange, or otherwise dispose of any property, either immovable or movable, or any interest therein, as the objects and purposes of the corporation may require to carry out the provisions of this Chapter.

(5) To issue revenue bonds of the corporation, payable from and secured by a pledge of any revenues of the corporation, derived or to be derived by it from or held or to be held by it in connection with its undertaking of any economic development project or projects of the state and local government of the corporation, including any loans, grants, or contribution of funds made or to be made to it by the federal government or by state or local governments in aid of any of its other activities or operations, including tax increments or sales tax increments, and to pay or cause to be paid from the proceeds of the issuance of such revenue bonds, all or a portion of the costs of an economic development project as specified in R.S. 33:9035 and to give local citizens preferential treatment in job development. A corporation is not required to obtain any right, title, or interest in any real or personal property in order to pay the costs of an economic development project. The principal of and interest on any bonds issued by a corporation may be secured by a mortgage or other instrument covering all or any part of any lands or all or any part of a development project, including any additions, improvements, extensions to, or enlargements of any development project thereafter made; provided however, that a corporation may only grant such a security interest in real or personal property which it owns. Bonds which are issued under this Section are declared to be issued for an essential public purpose and, together with all interest thereon and income therefrom, shall be exempt from all taxes.

(6) To make, enter into and execute all contracts and agreements, with any person or agency, public or private, necessary or incidental to the performance of its duties and the execution of its powers under this Chapter.

(7) To borrow money and to apply for and to receive and accept from any federal agency, the state, and/or the political subdivisions of the state or from any source, public or private, grants, loans, or advances for or in the aid of an economic development cooperative endeavor, project or projects, and to give such security as may be required and to enter into and carry out contract of agreements in connection therewith.

(8) To invest any funds not required for immediate use in property or securities in which public bodies may legally invest funds subject to their control.

(9) To declare or designate, subject to the approval of the chief executive officer or governing authority of local governmental subdivision of the state, areas of said governmental subdivision as economic development areas.

(10) To prepare or cause to be prepared an economic development plan for the development of an economic development cooperative endeavor, project, or projects.

(11) To enter into partnerships, joint ventures, and other relationships with any federal, state, or local governmental agency or with any private or public firm, partnership, corporation or other entity.

(12) To delegate to a private development corporation or other entity any duties and responsibilities as the corporation deems necessary or convenient in order to carry out the purposes of this Chapter.

(13) To give local citizens preferential treatment in job development.

(14) To exercise all or any part or combination of powers herein granted and to do and perform all acts and things necessary or convenient to carry out the powers expressly granted by this Chapter.

D. All economic development corporations formed pursuant to this Chapter shall, whenever practical, cooperate with each other to the fullest extent possible in accomplishing the overall aim and purpose of this Chapter. Each application as specified above shall describe how the proposed corporation shall interact and cooperate with other economic development corporations to carry out the purposes of this Chapter.

E. After receipt of said application from a proposed economic development corporation the legislature or the governing authority of a local government subdivision acting under the provisions of this Chapter shall hold at least one public hearing for the residents and property owners of the proposed affected jurisdiction or economic development area after notice given ten days prior to the date thereof in a newspaper of general circulation to the affected jurisdiction. After said public meeting, the respective governing authority shall by a majority vote of its members approve, disapprove, amend, or change the application of said proposed corporation. Approval of the application by said governing authority, along with the approval of the governor or chief executive officer of such local governmental subdivision acting hereunder, shall act as authorization for the proposed corporation or corporations to exercise the powers granted herein for the purposes established by this Chapter and set forth in said corporation's economic development plan.

F. Before approval of the legislature or such local governing authority is granted as provided herein, but subsequent to the submittal of said application to the legislature or such local governing authority, the proposed corporation shall have submitted said economic development plan to the designated state and regional clearinghouses for review and comment as to the conformity of said application and economic development plan to the state and region's overall economic development goals. Within thirty days of receipt of said plan for review, the state and regional clearinghouses shall submit its written comments to the governing authority of the affected jurisdiction or economic development area. After receipt of said comments, or if no action has been taken by the state and regional reviewing agencies within the thirty day period prescribed herein, the governing authority, shall proceed as specified above to approve, disapprove, amend, or change the application submitted by the proposed corporation or corporations.

G. After final approval of said application the governing authority of the affected jurisdiction may approve funds for the capitalization and operation of said corporation for the furtherance and implementation of its economic development plan, at a regular meeting or at a special meeting called for that purpose.

H. After final approval, a certificate setting forth the findings and declarations of such governing authority acting hereunder and signed by the respective chief executive officer shall be filed by said corporation with the secretary of state and with each parish recorder of mortgages of the affected jurisdiction or economic development area along with the articles of incorporation of said corporation as provided for hereinbelow.

I. Economic development corporations shall be subject to audit by the legislative auditor under the provisions of R.S. 24:513.

Added by Acts 1978, No. 617, §1. Amended by Acts 1979, No. 668, §1; Acts 1990, No. 1082, §1; Acts 2002, No. 78, §2, eff. June 25, 2002.