Answer

The organization may use the public civic center, paying the same rental fee as any other user. If the town waives the rent, there must be a public benefit to avoid Article VII, §14 of the Louisiana Constitution violation. To determine whether constitutional requirements are met, the courts and the Attorney General use the Cabela’s Test. Under the Cabela’s Test, in order for the expenditure of public funds to enhance value of surplus property to not be considered an impermissible donation, the public entity must show: 1. That there is a public purpose served for which it is authorized to pursue; 2. That the transaction on its face does not appear to be wholly gratuitous; and 3. That the public entity has a reasonable expectation of receiving an equal or greater benefit than the value of the uncompensated use being given up. In this case, the benefit is in tourism, increased revenue, community good will and so on according to the Mayor. See, AG Op. No. 07-0266 in which the Attorney General opined that a city could declare the annual Veteran's Day parade a City-sponsored event and provide reasonable financial assistance or other in kind services to ensure the proper health and safety precautions are taken and may expend public funds to promote, encourage, and develop industry, trade, or commerce within the City. The opinion noted that the expenditures must be reasonable and that the City must be able to demonstrate it has a reasonable expectation of receiving equivalent value for the funds it would spend associated with the Veteran's Day parade. Louisiana Legislative Auditor website: 08/03/2025 12:55:58 AM