Denham Springs Mayor Jimmy Durbin said earlier this week that $50 million of sales tax revenue bonds issued in 2007 to bring in a Bass Pro Shops store could be paid off years earlier than planned.
The bonds are supported by 72% of the 6% local sales tax collected in the 75-acre district near Interstate 12 in the suburb of Baton Rouge. The 18 stores within the district reported total sales of $50 million in fiscal 2011.
Durbin said the 30-year bonds issued by the Denham Springs Economic Development District could be off the books by 2020 or 2021 if tax revenues increase as expected. In addition, a Sam's Club under construction in the district could generate more sales tax revenue than all the other retail outlets combined, he said.
Durbin said revenue from the existing business would reduce the maturity of the existing revenue bonds to 23 to 24 years, but the revenue generated by the large new retailer could shorten the period further to 12 to 13 years.
