§ 26-80. Intergovernmental agreement between parish sales tax district no. 3 of the parish and cities in the parish in connection with the reconstruction and maintenance of roads; terms.

(a)

Collection of sales tax. The sales tax district will collect its two percent sales tax approved by the voters throughout the area comprising the sales tax district on November 4, 1986, the date of the sales tax election. The sales tax district will use the proceeds from its sales tax to construct, overlay and improve roads throughout the sales tax district, and to fund the tax proceeds into bonds for these purposes, in accordance with the priority road listings previously established by ordinance. Except as may hereafter be agreed by resolution of the St. Tammany Parish Police Jury, cities agree to use any amounts paid by the district pursuant to this agreement solely for road, bridge and drainage purposes. The parties mutually agree that the district sales tax presently is effective for the entire area of St. Tammany Parish, excluding the incorporated municipal boundaries as of November 4, 1986, the date of the sales tax election. Areas that were annexed by municipalities by valid ordinances effective prior to November 4, 1986, are not within the area subject to the district sales tax and thus not subject to this agreement. In addition to sales taxes collected by the state and the St. Tammany Parish School Board, the parties agree that, after signing of this agreement, a maximum of two percent sales tax for district and municipal purposes is effective for all properties located in the district and annexed into a municipality by ordinances adopted and published after November 4, 1986, collectable as follows:

(1)

Developed commercial properties. Dealers in retail sales on these parcels shall collect only the district's two percent sales tax and remit the entire amount to the district. These dealers shall not be required to collect city sales taxes. The entire net proceeds of these taxes shall be retained by the district.

(2)

Undeveloped commercial properties. Dealers in retail sales on these parcels shall collect only the district's two percent sales tax and remit the entire amount to the district. An amount equal to 50 percent of the net proceeds of these taxes shall be paid to the appropriate city at the time and in the manner specified in this section. The net sales tax revenues shall be those received by the district after accounting for all expenses of collection.

(3)

Manufacturers Retail Outlet development and Northshore Limited Partnership development on Airport Road. Sales by dealers in retail sales on these properties shall be governed by the provisions of subsection (a)(2) of this section. The city agrees to pay to the district an amount equal to 50 percent of the net proceeds of the city's sales taxes collected from those portions of these two developments annexed into the city prior to November 4, 1986. The city is empowered to recoup fully its initial costs of extending services to these properties and improvements to Airport Road prior to initiating disbursements to the district. The costs associated with the Northshore Limited Partnership development are fixed at $556,119.00. The estimated costs associated with the Manufacturers Retail Outlet development are $800,000.00. Payments by the city to the district shall be made within 15 days of the end of each calendar month. The properties subject to this subparagraph are more fully delineated on Exhibits A and B attached hereto and made a part hereof.

(4)

Sales taxable at point of delivery. Sales by retail dealers and collectors of sales taxes levied at point of delivery rather than point of sale shall be governed by subsection (a)(1) or (a)(2) of this section, as the case may be. By the term "developed" property is meant that parcel of land annexed by the municipality which contains a business making retail sales or producing sales tax revenue at the time of annexation or within three years prior to annexation. A parcel will not be deemed developed due solely to the fact that the parcel being annexed is adjacent to, contiguous with or derived from an area of developed land (as defined above) of common ownership with the parcel to be annexed. All other property not falling within the definition of "developed" shall be considered "undeveloped". This agreement is meant to apply only to existing sales taxes. Additional sales taxes which may be levied in the future by the party to this agreement shall be entirely payable to the levying entity.

(b)

Responsibility for road maintenance and improvements. The district will be responsible for making initial improvements according to parish specification to roads listed in Ordinance Calendar No. 767, Ordinance Police Jury Series No. 86-693, dated August 21, 1986, as amended to date, to the extent funding is available, whether or not these roads are annexed into a municipality. The annexing municipality shall be responsible for the maintenance and subsequent paving of all roads and bridges within properties annexed by the municipality.

(c)

Bondholders' rights. The sales tax district has issued bonds payable from the district's two percent sales tax pursuant to an ordinance adopted by the St. Tammany Parish Police Jury on November 19, 1987, as amended and supplemented by an ordinance adopted on May 19, 1988, (collectively the "bond ordinance"). The bond ordinance specifies the manner in which proceeds of the district's two percent sales tax must be administered and handled (copy of section 5.03 of the bond ordinance being annexed hereto as Exhibit C ). All payments from the district to the city required to be made hereunder shall be made on a monthly basis and be paid solely from monies considered surplus as defined in section 5.03 of the bond ordinance. If the sales tax revenues derived by a city are at any time insufficient to make mandatory payments required by ordinances authorizing sales tax revenue bonds of the city, the city may collect its two percent sales tax (in addition to the district's two percent sales tax) until the deficit is satisfied. The city shall cease the collection if and when the sales tax revenues become sufficient to pay the mandatory payments due on the bonds.

(d)

Zoning of annexed properties.

(1)

If a city, after the adoption of this agreement, annexes property into the municipality and enacts a zoning classification for that property that permits more intense commercial, industrial or land uses than the zoning classification adopted for the property by the parish prior to the annexation, the sales tax district shall not be obligated to honor this agreement as to that property. However, upon application by the annexing municipality, the police jury may agree to the change in zoning and, if it does agree, the annexed property shall be subject to this agreement. Any request for a zoning change that permits any such more intense land uses shall be forwarded to the police jury by certified mall, return receipt requested. If the police jury does not deny the request within 60 days of receipt of the request, it shall be deemed approved by the parish. Once a conceptual development plan and a PD or PUD zoning classification are established for a property, as provided above, further zoning actions consistent with that plan and classification shall not require parish approval.

(2)

The provisions of this subsection (d) shall not apply to properties 90 percent surrounded by a city, exclusive of roads.

(3)

Upon receipt of any request to annex an area, the city agrees to notify the police jury member in whose district the property is located by certified mail.

(e)

Pledge of cooperations. The parties hereto pledge their mutual cooperation in complying with the terms of the agreement, all to the end that the welfare of the residents of St. Tammany Parish shall be promoted and that the needs of the residents may be satisfactorily met.

(f)

Termination and miscellaneous. This agreement shall be binding upon the parties hereto for a period of 20 years from December 1, 1986. This agreement may be amended from time to time by the participating cities and the parish and district with the approval of their respective governing authorities. Division headnotes (subcatchlines) used above are for purposes of convenience only and shall have no legal bearing upon the construction of this agreement. This agreement shall be binding upon and shall inure to the benefit of parties hereto, its/their successors and assigns. It is the intent of the parties that this agreement shall be liberally construed to accomplish its purposes.

(g)

New parties. No agreement shall be offered to any municipality without also offering it to all municipalities.

(h)

Closing. If any one or more provisions of this agreement is for any reason held to be illegal or invalid, this entire agreement, except for this subsection, shall immediately become null and void. All parties agree to attempt in good faith to adopt a new agreement, which to the extent possible, accomplishes the same results as this agreement. Further, all parties agree to negotiate in good faith, refrain from challenging the validity or legality of this agreement and join in the defense of any legal challenge to this agreement. Legal expenses incurred in the defense of any challenge to this agreement shall be split by all parties proportionately by population unless otherwise agreed to in writing by the parties. Any constitutional or statutory provisions enacted after the date of this agreement which validates or makes legal any provision of this section shall be deemed to apply hereto.

(Code 1966, § 17-82.1)