The developer for LSU’s new arena may call on Baton Rouge’s Metro Council and the state to agree to allocate some local and state sales tax revenue to the project according to a draft agreement from November, The Baton Rouge Advocate reported.
The draft proposal would have 2 cents of sales tax from Baton Rouge and 2-4 cents from the state going toward Oak View Group through a rebate.
OVG was the sole finalist to construct LSU’s arena but has recently been criticized due to its former CEO being indicted for rigging the bidding stage of another project to build University of Texas-Austin’s Moody Center.
Despite the scrutiny, an OVG spokesperson told the Advocate it’s still working closely with LSU to develop the arena project. LSU Athletics spokesperson Zach Greenwell told the Reveille there has been no agreement finalized with OVG for the arena project.
It’s unclear whether the proposal has been altered since its draft in November. The deal requires the Metro Council’s approval.
The new arena would be in council member Carolyn Coleman’s District 10, who hasn’t commented on the arena or sales tax proposal because she considers this a matter for university officials to handle before it reaches the council.
East Baton Rouge Mayor-President Sid Edwards took a similar approach to Coleman in an email statement, leaving the situation up to LSU to “do the right thing.”
