During a recent government meeting, council members raised significant concerns regarding the financial and legal implications of a public safety substation project in Shreveport. To date, approximately $231,000 has been spent on the site, which is subject to specific deed restrictions that could impact its future use.
One council member highlighted that the deed, recorded in September 2023, stipulates that the property must be used exclusively for a public safety substation for a minimum of 25 years. If the conditions are not met, the property must be returned to the donor. This raised alarms among council members, particularly regarding the potential for financial loss if the city were to change the use of the property or close the substation.
The discussion also touched on the legal ramifications of the project, with concerns about compliance with IRS guidelines for bonds issued for public purposes. The city attorney clarified that while the building must serve a public function, it does not necessarily have to remain a police substation for the entire duration of the bond. However, any change in use could lead to complications, including the risk of losing tax-exempt status for the bonds.
Council members expressed frustration over the lack of access to the deed prior to the project's approval, suggesting that had they been aware of the restrictions, they might have voted differently. The meeting underscored the need for transparency and thorough review of legal documents in future municipal decisions to avoid potential liabilities and ensure responsible use of taxpayer funds.