A deal discussed to build a new LSU arena would hinge on both the Metro Council and university officials agreeing to let the developer involved in it tap sales tax revenue related to the project, documents show.
A draft agreement from November, obtained through a public records request, calls for local and state government to give up sales tax collections generated in and nearby the arena.
Baton Rouge would "rebate" 2 cents of sales tax, and the state 2-4 cents. The rebate would go to Oak View Group, the company that is the sole finalist to build the new arena.
In the deal's term sheet draft, OVG acknowledged the Tiger Athletic Foundation — a nonprofit supporting LSU athletics that is shepherding the arena project — has no authority to force government officials to rebate those taxes. But it says "this requirement shall be a condition to the closing."
It's not clear how much taxpayer money that deal would entail or if the terms of the agreement have changed in the months since that draft circulated. LSU officials have previously emphasized that no deal has been finalized.
LSU officials did not respond to multiple requests for comment on the status of the deal or the arena project in general.
The proposed arena has been under increased scrutiny since OVG's CEO, Tim Leiweke, was indicted on federal charges in Texas earlier this month. He has since stepped down from that position.
Authorities say Leiweke rigged the bidding process to develop the Moody Center at UT Austin — an arena that has inspired the new facility in Baton Rouge.
LSU officials said after news broke about the indictment that they have paused work on the project to evaluate the potential impact of the criminal case against Leiweke.
On Monday, Leiweke appeared in U.S. District Court in Austin, where he pleaded not guilty and was released on a $1 million bond.
A rebate of the city-parish's sales tax revenue would require Metro Council approval. The new arena would be located in council member Carolyn Coleman's District 10.
A rendering of the potential LSU arena with "Our Lady of the Lake Arena" on the side, submitted to officials by international architecture firm Populous.
Coleman says it is premature to comment on the proposed arena and tax deal, but added she considers a new facility a "transformational project" that needs to go through the proper channels at LSU before the council weighs in.
"We don't know it in its total entirety," Coleman said, though she acknowledged "it could require city and state funds and I don't want to throw that out the window."
In an emailed statement, Mayor-President Sid Edwards also declined to take a position on the deal but said he is "confident that LSU’s leadership and all stakeholders will be transparent and do the right thing."
"I ran for office to make Baton Rouge a safer and cleaner city — and I’ll continue to ensure that tax dollars are invested in a way that priorities those two goals," Edwards said. "Until LSU proposes an actual deal, it’s premature to take a position on it."
In an April 16 email to several people involved in the deal, Charles Landry — a prominent land-use attorney who has played a central role in negotiations — expressed confidence the city-parish would approve the deal. Landry noted that he helped facilitate council approval for similar tax distribution agreements for ExxonMobil's plant in North Baton Rouge and the new Amazon distribution center on Florida Boulevard.
"For what it's worth, I do not see the rebate of sales and use tax by the City Parish as a political issue whatsoever," Landry wrote to other attorneys involved in the deal. "I got this done for Amazon and for projects and Exxon. I have already spoken to 11 of the council members who support this rebate."
Landry declined to comment this week on the arena proposal.
In 2023, the Legislature created a special taxing district, the LSU Economic Development District, which plans to levy a 1-cent tax near the stadium. In May, Landry said a smaller subdistrict will also levy a 1-cent sales tax at the site of the arena.
Those taxes are in addition to existing state and local sales taxes already in place.
