[1. Call to Order – Jerald Jones, Chairman]
[00:00:03]
WELCOME TO THE AUGUST MEETING OF THE BOARD OF COMMERCE AND INDUSTRY.
WE CALL THE MEETING TO ORDER AND MISS SIMMONS, WOULD YOU CALL ROLL TO ENSURE WE HAVE A QUORUM? GOOD MORNING. GOOD MORNING.
[3. Approval of Minutes from July 14, 2023 meeting]
I WOULD ENTERTAIN A MOTION TO APPROVE.WE HAVE A MOTION FROM MR. MOSS. DO WE HAVE A SECOND? MR. SIMIEN? ANY QUESTIONS OR COMMENTS FROM THE BOARD ABOUT THOSE MINUTES? ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
[4. Quality Jobs Program – Michaela Adegbe]
GOOD MORNING, MS. ADEGBE. HOW ARE YOU TODAY? GOOD MORNING. WELL, AND YOURSELF? DOING VERY WELL, THANK YOU.LET'S TALK. WALK US THROUGH THE QUALITY JOBS PROGRAM, PLEASE.
THERE ARE NINE NEW APPLICATIONS.
20210008 365 LABS, LLC, EAST BATON ROUGE PARISH, 20200524 ALEXANDER/RYAN MARINE AND SAFETY, LLC OF LOUISIANA, TERREBONNE PARISH.
20210219 BASF CORPORATION, ASCENSION PARISH.
20210178 CHALMETTE REFINING, LLC.
SAINT BERNARD PARISH 20210362 COCA-COLA BOTTLING COMPANY, UNITED GULF COAST, LLC.
EAST BATON ROUGE PARISH 20220224 INTRALOX, LLC.
TANGIPAHOA PARISH 20220179, LAITRAM MACHINERY INC.
JEFFERSON PARISH 20210309 SHELL CATALYSTS AND TECHNOLOGIES US LP WEST BATON ROUGE PARISH 20210248 SOUTHLAND STEEL FABRICATORS INC.
ALL RIGHT. DO WE HAVE A MOTION TO APPROVE? DR. WILSON TO APPROVE.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? [INAUDIBLE]. ALL RIGHT.
FROM WHICH PARTICULAR MATTER, JOSEPH? THE SHELL MATTER. OKAY, AND ALSO DR.
THOMPSON AND MR. HOLLINS WILL BOTH BE RECUSING THEMSELVES FROM THE SHELL MATTER.
THAT MEANS THEY CANNOT VOTE NOR PARTICIPATE IN ANY DISCUSSION.
AGAIN. ANY OTHER COMMENTS OR QUESTIONS FROM THE BOARD? THERE BEING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
ONE RENEWAL 20180282 THOMAS PUMPING MACHINERY SAINT TAMMANY PARISH.
WE HAVE A MOTION TO APPROVE THIS RENEWAL.
I HAVE A MOTION. MR. SLOAN, SECOND FROM MR. MUELLER. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
TWO FULL TRANSFER OF OWNERSHIP TO NEW COMPANY.
20151287 CURRENT COMPANY NAME EXPRESS LANE INC DBA ZLIEN.
NEW COMPANY NAME PROCORE TECHNOLOGIES INC ORLEANS PARISH.
20170648 CURRENT COMPANY NAME FUJI OIL NEW ORLEANS, LLC.
BUNGE LODERS CROKLAAN USA LLC.
ENTERTAIN A MOTION TO APPROVE.
[00:05:01]
MOTION BY DR. WILSON SECOND FROM MR. SIMIEN. ANY QUESTIONS OR COMMENTS FROM THE BOARD? ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
[5. Restoration Tax Abatement Program – Travis Rosenberg]
ROSENBERG. HOW ARE YOU? I'M DOING WELL. GREAT.WALK US THROUGH RESTORATION TAX ABATEMENT PROGRAM, PLEASE.
THERE ARE FIVE NEW APPLICATIONS FOR THE RESTORATION TAX ABATEMENT.
20200080 FOR ANDRESS ARTIST AND ENTREPRENEUR CENTER LLC IN CADDO PARISH.
20220482 FOR ARLINGTON MANSION IN SAINT MARY PARISH.
20220388 FOR COOPERS CORNER LLP IN CADDO PARISH.
201408984 HOTEL MONROE HOLDINGS, LLC AND OUACHITA PARISH AND 20140899 FOR HOTEL MONROE HOLDINGS, LLC AND OUACHITA PARISH.
SO I WOULD ENTERTAIN A MOTION MOTION FOR MR. [INAUDIBLE]. SECOND FOR MR. HOLLINS. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
THAT CONCLUDES THE RTA AGENDA.
[6. Enterprise Zone Program – Joyce Metoyer]
GOOD MORNING. THERE ARE EIGHT NEW APPLICATIONS.20210185 CLOVER HOSPITALITY, LLC, CALCASIEU.
20190451 OCHSNER CLINIC FOUNDATION.
20200303 OCHSNER CLINIC FOUNDATION.
20200293 OSCHNER LSU HEALTH HEALTH SYSTEM.
20210290 SOUTHLAND TRUCK GROUP, LLC.
LAFAYETTE PARISH 20210448 STULLER, INC.
OUACHITA PARISH AND 2020 ZERO.
[CHUCKLING] WEYERHAEUSER IN OUR COMPANY, LIVINGSTON PARISH.
YOU'RE DOING WELL ON YOUR NUMBERS.
THE READING THAT'S A LITTLE BIT MORE DIFFICULT.
SOMETIMES. ALL RIGHT. DO WE HAVE A MOTION TO APPROVE THESE APPLICATIONS? HAVE A MOTION FOR DR.
THOMPSON. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE IS NONE.
ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
20160636 HARVEY HOSPITALITY, LLC.
THE EXISTING CONTRACT IS NOVEMBER 1ST, 18 THROUGH OCTOBER 31ST, 2023.
THE REQUESTED TERM DATE IS 12/31/21.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
THE EXISTING CONTRACT IS APRIL 26TH, 2019 THROUGH APRIL 25TH 2024.
REQUESTED TERM DATE IS 12/31/2021.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
20180333 OCHSNER CLINIC FOUNDATION.
THE EXISTING CONTRACT IS AUGUST 30TH, 2018 THROUGH AUGUST 29TH, 2023.
THE REQUESTED TERM DATE IS 02/28/2021.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
THE EXISTING CONTRACT IS JULY 13TH, 2019 THROUGH JULY 12TH, 2024.
THE REQUESTED TERM DATE IS JANUARY 12TH, 2022.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
20160868 OM SHANTI OM FIVE LLC, LAFAYETTE PARISH.
THE EXISTING CONTRACT IS JANUARY 1ST OF 19 THROUGH 12/31/2023.
[00:10:05]
THE REQUESTED TERM DATE IS 12/31/2021.THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
20170460 PLANTATION MANAGEMENT COMPANY, LLC, LIVINGSTON PARISH.
THE EXISTING CONTRACT IS APRIL 1ST, 19 THROUGH 03/31/2024.
THE REQUESTED TERM DATE IS 12/31/2021.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
20180312 PLANTATION MANAGEMENT COMPANY, LLC.
TANGIPAHOA. THE EXISTING CONTRACT IS 08/15/2018 THROUGH 08/14/2023.
THE REQUESTED TERM DATE IS 12/31/2021.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
CADDO PARISH. THE EXISTING CONTRACT IS NOVEMBER 27TH, 2018 THROUGH NOVEMBER 26TH, 2023.
THE REQUESTED TERM DATE IS 05/26/2021.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED IN 20161120 WORLD WAR TWO THEATER, INC..
THE EXISTING CONTRACT IS APRIL 1ST, 18 THROUGH 3/31/2023.
THE REQUESTED TERM DATE IS 10/01/2020.
THE PROGRAM REQUIREMENTS HAVE BEEN MET.
NO ADDITIONAL JOBS ARE ANTICIPATED.
WE HAVE A MOTION TO APPROVE THESE TERMINATIONS FROM MR. NASSAR, SECOND FROM MR. MOSS. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
THAT CONCLUDES [INAUDIBLE]. THANK YOU, MA'AM.
YOU'RE WELCOME. GOOD MORNING, MISS CHENG.
[7. Industrial Tax Exemption – Kristin Cheng/Hud Usie]
GOOD MORNING. [INAUDIBLE] HELP US THROUGH THE TAX EXEMPT TAX EXEMPTION PROGRAM, PLEASE.20161508 KOCH METHANOL SAINT JAMES IN SAINT JAMES PARISH.
SO DO WE HAVE SOMEONE HERE FROM KOCH METHANOL? PLEASE STATE YOUR NAME AND POSITION WITH THE COMPANY, PLEASE.
FIRST, GOOD MORNING, EVERYONE.
I'M FROM BATON ROUGE AND I'M EMPLOYEE OF KOCH COMPANIES PUBLIC SECTOR, WHICH IS ONE OF THE CAPABILITY COMPANIES FOR KOCH METHANOL AND KOCH INDUSTRIES , AND TELL US WHERE WE ARE AS FAR AS THE DEVELOPMENT OF THIS PROJECT AND WHAT'S LEFT TO BE DONE.
WE PRODUCE ABOUT 80,000 POUNDS PER HOUR EXCESS, AND IT ALSO IT ALSO ALLOWS US TO RECOVER WATER THAT WE USE IN THE PROCESS.
SO WE'RE BEING MUCH MORE ENERGY EFFICIENT WITH IT.
THANK YOU, SIR. WE HAVE A MOTION TO APPROVE MOTION, MR. NASSAR, SECOND FROM MISS COLA.
ANY QUESTIONS OR COMMENTS FOR MR. GUIDRY FROM THE BOARD? I'D JUST LIKE TO COMMENT CONCERNING KOCH.
I WANT TO THANK YOU ALL FOR BEING A COMMUNITY PARTNER.
YOU ALL ARE IN SAINT JAMES AND WHAT Y'ALL HAVE DONE FOR THE PUBLIC SCHOOLS.
THANK YOU, SIR. THANK YOU, SIR.
WE WANT TO BE A PREFERRED PARTNER IN THE COMMUNITY.
I THINK WE'RE MAKING POSITIVE STEPS TOWARD THAT.
ANY OTHER COMMENTS OR QUESTIONS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? HEARING NONE, THE MOTION CARRIES.
THANK YOU, MR. GUIDRY. THANK YOU.
NEXT, WE HAVE 24 NEW APPLICATIONS UNDER THE 2018 RULES.
WE DO HAVE FOUR OF THESE APPLICATIONS REQUESTING DEFERRAL TODAY.
[00:15:03]
THEN WE'LL DEFERRALS FIRST.20230059 APF RIVER PARTNERS, LLC, JEFFERSON PARISH 20210609 BOLLINGER SHIPYARDS HOUMA LLC, TERREBONNE PARISH AND 20200526 PLASTIPAK PACKAGING RAPIDES PARISH AND 20200526-A PLASTIPAK PACKAGING INC IN RAPIDES PARISH.
OKAY. WOULD ENTERTAIN A MOTION TO DEFER THESE FOUR MATTERS.
WILSON. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THESE FOUR MATTERS ARE DEFERRED TO OUR NEXT MEETING.
CONTINUING, WE HAVE 20220031 ALLEN'S ELECTRIC MOTOR SERVICE INC IN CADDO PARISH.
20230120 BEAVER LAKE RENEWABLE ENERGY, LLC IN RAPIDES PARISH.
20230198 ELEMENT 25 LOUISIANA LLC.
20230071 EXXON MOBIL CORPORATION.
20230072 EXXON MOBIL CORPORATION.
20220284 HOOD CONTAINER OF LOUISIANA LLC.
20210171-A INDORAMA VENTURES OLEFINS LLC.
SAINT JAMES PARISH 20220495 KOPPERS UTILITY AND INDUSTRIAL PRODUCTS INC.
20210113 LASALLE BIOENERGY, LLC.
20220546 MEZCO FABRICATION LLC.
20210241 MOREHOUSE BIOENERGY, LLC.
20230103 SIERRA FRAC SAND LLC.
20230093 SAINT CHARLES CLEAN FUELS LLC.
20230132 SAINT CHARLES CLEAN FUELS, LLC.
20190290-B WESTLAKE VINYLS COMPANY LP.
ASCENSION PARISH AND 20210148-B WEYERHAEUSER COMPANY LIVINGSTON PARISH.
OTHERWISE, I'LL CONTINUE TO FACILITATE THE MEETING, AND ALSO BEFORE WE MOVE.
WELL, FIRST LET'S GET A MOTION TO APPROVE.
WE HAVE A MOTION BY DR. WILSON, SECOND FROM MR. NASSAR. UH, QUESTIONS OR COMMENTS FROM THE BOARD ABOUT ANY OF THESE.
MISS [INAUDIBLE], DO YOU STILL WISH TO SPEAK OR YOU.
MS. [INAUDIBLE]? OKAY. IF YOU COULD JUST STATE YOUR NAME FOR THE RECORD, PLEASE. GOOD MORNING.
I LIVE IN JEFFERSON PARISH, THE TEXAS BASED, PRIVATELY OWNED AMERICAN PLANT FOOD RIVER PARTNERS WANTS TO BUILD ANOTHER CHEMICAL PLANT ON CORNERSTONE CHEMICAL SITE IN JEFFERSON PARISH.
AMERICAN PLANT FOOD HELD AN OPEN HOUSE FOR THE PUBLIC IN OCTOBER OF 2022, A FLYER SAYING THAT THERE WOULD BE 100 NEW PERMANENT FULL TIME JOBS PAYING $120,000 A YEAR WERE GIVEN TO ALL THE PEOPLE WHO ATTENDED PRESENTATIONS ABOUT THE FERTILIZER PLANT AND THE 100 JOBS PAYING $120,000 A YEAR WERE MADE TO THE WAGGAMAN CIVIC ASSOCIATION, THE S1 CIVIC ASSOCIATION AND CORNERSTONES COMMUNITY ADVISORY PANEL.
THE FLYER WAS DISTRIBUTED AT THESE MEETINGS.
THAT'S AN IMPRESSIVE $12 MILLION ANNUAL PAYROLL.
[00:20:02]
THE APPLICATION STATES THAT 103 NEW DIRECT JOBS WILL BE CREATED WHEN AMERICAN PLANT FOOD LAUNCHED ITS WEBSITE.THE HOMEPAGE STATES THAT THERE WOULD BE 100 PLUS JOBS WITH AN ANNUAL AVERAGE SALARY OF OVER $100,000 A YEAR AND EVEN AT $100,000 A YEAR, THAT'S STILL A VERY ROBUST $10 MILLION ANNUAL PAYROLL.
AN ARTICLE ABOUT THE PROPOSED FERTILIZER PLANT WAS PUBLISHED IN THE ADVOCATE ON NOLA.COM, WHICH HAS A COMBINED READERSHIP OF 98,000, AND IT STATES THAT THERE WOULD BE 100 NEW PERMANENT FULL TIME JOBS PAYING $100,000 A YEAR.
THE ARTICLE THAT WAS PUBLISHED ON NOLA.COM WAS SHARED ON SOCIAL MEDIA BY INDIVIDUALS AS WELL AS SOME NEIGHBORHOOD GROUPS, INCLUDING THIS ONE THAT HAS 2902 MEMBERS.
AMERICAN PLANT FOOD ITEP APPLICATION STARTING ON PAGE 214 OF YOUR BOARD PACKET SAYS THERE WOULD BE JUST 13 NEW PERMANENT FULL TIME JOBS, NOT 100 JOBS, WITH AN ANNUAL PAYROLL OF 728,000, NOT 12 MILLION AND NOT 10 MILLION.
THAT'S JUST $56,000 A YEAR, AND NO ONE HAS COME BACK TO THE PUBLIC TO SAY IT'S JUST 13 JOBS PAYING $13,000 LESS THAN THE MEDIAN ANNUAL HOUSEHOLD INCOME IN JEFFERSON PARISH.
APF IS LOOKING FOR AN ANNUAL TAX EXEMPTION OF 5.9 MILLION AND JUST OVER 47 MILLION OVER TEN YEARS.
THAT'S 3.64 MILLION IN TAX EXEMPTIONS FOR EACH JOB CREATED.
NOW, THE REASON I'M HERE IS TO MAKE YOU AWARE OF THE DISCREPANCY BETWEEN THE INFORMATION THAT AMERICAN PLANT FOOD HAS WIDELY DISSEMINATED TO THE PUBLIC AND THE INFORMATION PROVIDED TO YOU.
13 JOBS INSTEAD OF 100 AND SALARIES THAT ARE LESS THAN HALF OF THE ORIGINAL SALARY RANGE.
YOU KNOW, THE PROMISE OF 100 HIGH PAYING JOBS ALONG WITH AMERICAN PLANT FOODS, COMMITMENT TO HIRING LOCALLY GOT THE ATTENTION AND THE SUPPORT OF THE PUBLIC, AND I WANT YOU TO KNOW THAT IF YOU'VE HEARD THAT THE RESIDENTS IN JEFFERSON PARISH SUPPORT THE FERTILIZER PLANT, THIS IS NOT THE CASE WHEN THEY LEARN THE TRUTH ABOUT THE NUMBER OF JOBS, THE ACTUAL SALARIES AND THE 3.64 MILLION IN TAX EXEMPTIONS FOR EACH JOB CREATED, AND LIKE I SAID, NO ONE HAS COME BACK TO THE LOCAL COMMUNITY ABOUT THIS.
NOR HAS AMERICAN PLANT FOOD CORRECTED ITS JOB AND SALARY INFORMATION ON ITS WEBSITE.
IT'S BEEN THERE FOR MONTHS NOW.
I WOULD HATE TO SEE A PRECEDENT SET HERE WHERE AN APPLICANT INFLATES THE NUMBER OF JOBS AND SALARIES IN ORDER TO GET THE SUPPORT OF THE LOCAL COMMUNITY AND THEN TURNS AROUND AND GREATLY REDUCES THOSE NUMBERS IN ORDER TO GET THE ITEP EXEMPTIONS, YOU KNOW, MISLEADING THE COMMUNITY ABOUT ACTUAL JOB NUMBERS AND SALARIES ALSO LESSENS THE LIKELIHOOD THAT THE COMMUNITY WILL SHOW UP AT A PARISH COUNCIL MEETING OR A SCHOOL BOARD MEETING WHEN THE ITEP APPLICATION IS CONSIDERED FOR LOCAL REVIEW.
IT IT ERODES THE INTEGRITY OF THE INDUSTRIAL TAX EXEMPTION PROGRAM.
THANK YOU. THANK YOU, MISS [INAUDIBLE].
AS WE'VE DEFERRED THAT MATTER FOR THIS MEETING, IT WILL COME UP AT THE NEXT MEETING.
THANK YOU ALL VERY, VERY MUCH.
THANK YOU. ANY OTHER COMMENTS FROM THE PUBLIC? ALL RIGHT. WE HAVE A MOTION TO APPROVE THESE MATTERS.
ALL IN FAVOR? SAY AYE? AYE. ANY OPPOSITION? THERE BEING NONE. THE MOTION CARRIES.
THANK YOU. NEXT, WE HAVE ONE PRE-EO TIMELY RENEWAL AND THAT ONE IS 20151264 INDORAMA VENTURES OLEFINS LLC IN CALCASIEU PARISH.
HAVE A MOTION TO APPROVE FROM DR.
WILSON. SECOND FROM MAYOR TOUPS.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
NEXT, WE HAVE TO TIMELY POST-EO 2018 RULES RENEWAL APPLICATIONS.
THE FIRST FOR 20161893 ALLIANCE COMPRESSORS LLC, NATCHITOCHES PARISH AND 20161839 NALCO PRODUCTION LLC IN SAINT JOHN THE BAPTIST PARISH.
OKAY, BUT FOR THESE RENEWALS, DO WE HAVE A MOTION?
[00:25:05]
WE HAVE A MOTION FROM MR. SLOAN, SECOND FROM MR. [INAUDIBLE]. ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE BEING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.WE HAVE TWO REQUESTS FOR A CHANGE IN LOCATION ONLY.
DOW CHEMICAL COMPANY 20121051 AND 20140993.
THE ORIGINAL LOCATION ON THE CONTRACT WAS 21255 LA HIGHWAY ONE SOUTH PLAQUEMINE, LOUISIANA 70764 IN IBERVILLE PARISH THAT'S BEING CORRECTED TO 21255 LA HIGHWAY ONE SOUTH PLAQUEMINE, LOUISIANA 70764 IN WEST BATON ROUGE PARISH.
DID THEY MOVE THE PARISH LINE? NO, SIR. IT'S A CORRECTION ON THE CONTRACT.
SO IT'S JUST A CORRECTION OF ALL RIGHT.
SECOND FROM MR. SIMIEN. ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE BEING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
WE HAVE EIGHT TRANSFER OF TAX EXEMPTION CONTRACT REQUESTS.
CHAMPIONX LLC CONTRACTS 20140461, 20150207, 20150246, 2015 0247, 20160707, 20160762, AND 20160768, ARE BEING TRANSFERRED TO NALCO PRODUCTION LLC IN SAINT JOHN, THE BAPTIST PARISH AND FUJI OIL NEW ORLEANS LLC.
CONTRACT 20170648 IS BEING TRANSFERRED TO BUNGE LODERS CROKLAAN USA, LLC IN JEFFERSON PARISH.
DO WE HAVE A MOTION TO APPROVE THESE TRANSFERS? MOTION FROM DR. WILSON.
EXCUSE ME. ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE BEING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
WE HAVE ONE PARTIAL TRANSFER OF TAX EXEMPTION CONTRACT REQUEST FROM SABINE PASS LIQUEFACTION, LLC CONTRACT 20110659-K SABINE PASS LIQUEFACTION, LLC IS RETAINING $1,998,296,982 IN ASSETS IN CAMERON PARISH AND IS TRANSFERRING TO SABINE PASS LNG, LP $13,482,459 IN ASSETS IN CAMERON PARISH.
ALL RIGHT. DO WE HAVE A MOTION TO APPROVE THIS PARTIAL TRANSFER? MR. [INAUDIBLE] SECOND FROM MR. MOSS. ANY QUESTIONS OR COMMENTS FROM THE BOARD? BEING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
WE HAVE TWO CONTRACT CANCELLATION REQUESTS.
ARDAGH GLASS, INC 20130921 IN LINCOLN PARISH.
REQUEST CANCELLATION UPON NOTIFICATION THAT THE SITE CLOSED IN JULY OF 2023 AND AIT MACHINE LLC CONTRACT 20170323 IN TERREBONNE PARISH COMPANY REQUESTS CANCELLATION.
DO WE HAVE A MOTION TO APPROVE THESE CANCELLATIONS? MOTION FROM MR. NASSAR? SECOND FROM MR. SLOAN. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
THAT'LL TAKE US TO SPECIAL REQUESTS.
NEXT, WE HAVE SPECIAL REQUESTS FOR CITADEL COMPLETIONS, LLC CONTRACTS 20180199, 2018 0199-A AND 20180199-B CITADEL COMPLETIONS LLC IS REQUESTING TO AMEND THEIR EXISTING EXHIBIT A AGREEMENT FOR CONTRACT 2018 0199 TO ADD TWO ADDITIONAL YEARS TO THE PROJECT PHASE CONTRACTS.
20180199-A AND 20180199-B, WHICH WERE NOT ACCOUNTED FOR WHEN FILING THE FRONT END APPLICATION IN 2018 TO LOWER THE REQUIRED NUMBER OF JOBS AND PAYROLL INITIALLY AGREED UPON AND THEN ADD THE MAXIMUM ALLOWABLE RENEWAL TERM OF THREE YEARS AT 80%.
[00:30:02]
IS THAT IS THAT WHERE WE ARE? CORRECT. THEY DIDN'T ACCOUNT FOR HAVING THE FILE PHASE APPLICATIONS AS THE PROJECT PROGRESSED.SO NOW THEY WANT TO ADD THOSE PHASE CONTRACTS AND AT THE SAME TIME THEY WANTED TO LOWER THE NUMBER OF JOBS AND PAYROLL IN THE EXHIBIT AGREEMENT AND THEN THEY GOT LOCAL APPROVAL FOR THE RENEWAL TERM.
WE HAVE A MOTION TO APPROVE MOTION FOR MR. MOSS, SECOND FROM MS. COLA.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
NEXT, WE HAVE SPECIAL REQUESTS FOR LOUISIANA SUGAR CANE COOPERATIVE INC CONTRACTS 2017 0492, 20170492-A AND 20170492-B LOUISIANA SUGAR CANE COOPERATIVE IS REQUESTING TO AMEND THEIR EXISTING EXHIBIT A AGREEMENTS FOR EACH CONTRACT 20170492-A AND B TO REFLECT THE FOLLOWING REQUIRED JOBS AND PAYROLL.
20170492 IS GOING TO CREATE 20 NEW JOBS WITH $1,253,973 IN PAYROLL.
20170492-A IS GOING TO RETAIN 89 JOBS WITH $6,626,028 IN PAYROLL AND 20170492-B WILL RETAIN 90 JOBS WITH $6,644,542 IN PAYROLL.
OKAY. SO AS I APPRECIATE IT, HERE WE HAVE A SITUATION WHERE THEY DID WHEN THEY SUBMITTED THEIR APPLICATION, THEY DID NOT UNDERSTAND THE DEFINITION OF JOBS AND THAT'S CAUSING THE NEED TO AMEND.
CORRECT. WELL, THEY DIDN'T DO THE FRONT END ROUTE WHERE THEY SHARE ONE EXHIBIT AGREEMENT.
SO EACH ONE OF THESE CONTRACTS HAS AN INDIVIDUAL EXHIBIT AGREEMENT.
SO THEY DIDN'T THEY DID HAVE THE ADMINISTRATIVE ERROR ON THE JOBS.
OKAY. I GUESS WHAT I'M TRYING TO UNDERSTAND EXCUSE ME.
WHAT I'M TRYING TO UNDERSTAND IS.
THE DEFINITION OF JOB WITHIN OUR PROGRAM IS VERY DEFINED.
CERTAIN NUMBER OF HOURS AND HAVE CERTAIN BENEFITS, ETCETERA, ETCETERA, ETCETERA.
IS THAT FAIR? THEY'RE STILL CREATING THE TOTAL 20 JOBS.
IT'S GOING TO BE ASSOCIATED WITH THE FIRST APPLICATION, THE FIRST CONTRACT, AND THEN THE OTHER ONES ARE JUST RETAINING THE EXISTING AMOUNT OF JOBS, BUT THEY ALL QUALIFY FOR THE PROGRAM. OKAY.
MISS CHENG, DID YOU HAVE SOMETHING TO ADD? I JUST THOUGHT IF I WAS UNDERSTANDING YOU CORRECTLY.
IS THERE ANYBODY HERE FROM LOUISIANA SUGAR CANE COOPERATIVE? PLEASE STATE YOUR NAME AND YOUR POSITION WITH THE COMPANY, PLEASE.
GREAT. SO YOU'VE HEARD MY QUESTIONS.
JUST TRYING TO WRAP MY HEAD AROUND WHAT'S GOING ON HERE.
IS THAT IS THAT FAIR? YEAH, PRETTY MUCH.
DID YOU HAVE SOMETHING YOU WANTED TO ADD? STATE YOUR NAME. JAKE NICKENS, SUMMIT CREDITS.
YES, SIR, AND ESSENTIALLY THERE'S TWO ISSUES, AND I THINK BOTH HAVE BEEN HIT ON A LITTLE BIT HERE.
WHEN IT CAME TIME TO FILE THE PHASE A, THEY ESSENTIALLY PUT IN THE EMPLOYEES THEY HAD HIRED UP UNTIL THAT POINT WHEN THEY SHOULD HAVE PUT ZERO, AND SO IT CREATED A DOUBLE COUNT SITUATION. SO YOU HAD THAT AS WELL AS WHAT SEAN HIT ON WHERE THE WAGES OF CONTRACT, SOME CONTRACT EMPLOYEES WERE ALSO COUNTED IN THE INITIAL PAYROLL FIGURES. SO WHILE THE JOBS HAVE LARGELY REMAINED CONSISTENT, THE PAYROLL IS ALSO BEING ADJUSTED SLIGHTLY TO BASICALLY WEED OUT THOSE CONTRACT EMPLOYEES.
[00:35:01]
OKAY. SO AGAIN, THIS BRINGS IT MORE IN LINE WITH WHAT IS IN REALITY AT THE SITE.OKAY, GOOD. THANK YOU FOR THAT CLARIFICATION.
DO WE HAVE A MOTION TO APPROVE THE REQUEST? WE HAVE A MOTION, MR. [INAUDIBLE], SECOND FROM DR.
WILSON. ANY QUESTIONS OR COMMENTS FROM THE BOARD? ANY OTHER COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE BEING NONE. THE MOTION CARRIES.
THANK YOU. APPRECIATE YOU. THANK YOU ALL.
APPRECIATE IT. NEXT, WE HAVE A SPECIAL REQUEST FOR FLOPAM, INC CONTRACT.
20180148 FLOPAM IS REQUESTING TO AMEND THEIR EXISTING EXHIBIT AGREEMENT FOR CONTRACT 2018 0148 TO EXTEND THE COMMENCEMENT OF OPERATIONS DATE FROM DECEMBER 31ST, 2022 TO DECEMBER 31ST, 2024, AND ADD TWO ADDITIONAL YEARS TO THE PROJECT IN ORDER TO ACCOUNT FOR ADDITIONAL YEARS OF ASSETS COMING INTO SERVICE.
DO WE HAVE SOMEONE HERE FROM FLOPAM? STATE YOUR NAME AND YOUR POSITION WITH THE COMPANY, PLEASE.
ROBIN CALLAHAN. I'M THE CONTROLLER.
RIGHT. SO HELP US UNDERSTAND WHAT HAS LED TO THE NEED TO EXTEND THE CONTRACT.
THE CONTRACT ORIGINALLY WAS PLANNED TO BE IN SERVICE BY THE END OF 2023 AND WITH COVID AND SUPPLY CHAIN LABOR ISSUES, THINGS OF THAT NATURE, WE HAVE BEEN ABLE TO MEET OUR JOB REQUIREMENT, BUT WE HAVE NOT BEEN ABLE TO GET THE EQUIPMENT IN ORDER TO BUILD THE PLANTS AND HAVE THEM IN SERVICE BY THE END OF OUR ORIGINAL CONTRACT DATE.
WHEN DID YOU COMMENCE CONSTRUCTION? 2019. OKAY.
SO RIGHT IN THE MIDDLE OF RIGHT YOU BEGAN RIGHT BEFORE THE PANDEMIC AND SUPPLY CHAIN GETTING WORKERS SIMPLY KEPT YOU FROM BEING ABLE TO START OPERATIONS AS YOU NEEDED TO, AND WE HAVE EVERY INTENTION OF COMPLETING THE CONTRACT.
THE FINAL PRODUCTION LINE SHOULD BE UP IN FEBRUARY OF 2024.
THAT'S THE CURRENT DATE BARRING ANY UNFORESEEN CIRCUMSTANCES THAT SHOULD HAPPEN.
OKAY, THANK YOU FOR THAT EXPLANATION.
FIRST OF ALL, DO WE HAVE A MOTION TO APPROVE? WE HAVE A MOTION FROM MAYOR TO SECOND FROM MR. MUELLER. ANY QUESTIONS OR COMMENTS FROM THE BOARD? ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
GOOD LUCK. LAST WE HAVE A SPECIAL REQUEST FOR CORNERSTONE CHEMICAL COMPANY CONTRACT 2017 0416.
CORNERSTONE CHEMICAL COMPANY IS REQUESTING TO AMEND THEIR EXISTING EXHIBIT A AGREEMENT TO REFLECT A COMMITMENT TO RETAIN 350 JOBS, WITH 33 MILLION IN ANNUAL PAYROLL AT THE MANUFACTURING SITE.
THERE HAD ALSO BEEN AN ADDITIONAL REQUEST AT THE LAST MEETING TO TAKE UP COMPLIANCE ISSUES FOR 2022.
IS THAT CORRECT? CORRECT, YES.
OKAY, AND THAT'S STILL PART OF THEIR REQUEST, I ASSUME? YES, I ASSUME. OKAY.
THANK YOU, SIR. IS ANYBODY HERE FROM CORNERSTONE? GOOD MORNING. GOOD MORNING.
CHIEF OPERATING OFFICER FOR CORNERSTONE.
THANK YOU, MR. HAROLD. TELL US WHAT'S HAPPENING HERE.
AS PART OF AN EMPLOYEE TRANSFER FROM CORNERSTONE OVER TO DYNO NOBEL, OUR BASELINE EMPLOYEES THAT WE NEEDED TO KEEP FELL BECAUSE OF THAT, WE'VE BEEN IN NONCOMPLIANCE FOR THE YEARS 2021 AND 2022.
WE ARE ALSO WILL BE IN NONCOMPLIANCE FOR 2023.
WHAT WE'VE DONE OVER THE LAST YEAR IS WORKED WITH LED AND OUR LOCAL PARISH OFFICIALS ON TWO THINGS ONE, GETTING ACCEPTANCE AND BUY IN THAT THE MOVEMENT OF EMPLOYEES FROM CORNERSTONE OVER TO DYNO.
IS OKAY, AND IN YOUR DOCUMENTS YOU SHOULD HAVE NOTES THAT WE RECEIVED APPROVAL FROM ALL TAXING DISTRICTS FOR 21 AND 22 THAT THEY ACCEPT AND THEY RECOMMEND NO PENALTY. IMPORTANTLY, I'M LOOKING FOR A LONGER TERM SOLUTION.
SO THE LONGER TERM SOLUTION, AGAIN, WORKING WITH LED IS TO REDUCE THE BASELINE THAT WE HAVE TO COMPENSATE FOR THE MOVEMENT OF EMPLOYEES FROM CORNERSTONE OVER TO DYNO NOBEL.
IS THAT FAIR? WHEN DYNO NOBEL CAME TO LOUISIANA AS THE SITE.
[00:40:03]
WHAT WE DID IS WE HIRED AND USING LOUISIANA FAST START TRAINED THE EMPLOYEES MAINTAIN AND STARTED UP THE UNIT FOR THE FIRST THREE YEARS, AFTER WHICH TIME DYNO NOBEL MADE THE REQUEST TO PLEASE TRANSFER THE EMPLOYEES, AS YOU WOULD SAY, SIR, FROM WEARING CORNERSTONE UNIFORM OVER TO THE DYNO UNIFORM.FORTUNATELY, OUR BASELINE HAD THOSE EMPLOYEES IN.
CORNERSTONE. SO THAT'S WHY WE'RE HAVING TO MAKE THIS CHANGE TO OUR EXHIBIT A TO CHANGE THE BASELINE.
AS I APPRECIATED WHAT YOUR DISCUSSIONS WITH THE PARISH OFFICIALS WERE, AS LONG AS YOU GUYS MAINTAIN A CERTAIN LEVEL OF JOB, CERTAIN LEVEL OF PAYROLL WITHIN THE PARISH, EVEN THOUGH THEY MIGHT BE TWO SEPARATE COMPANIES, THEY ARE HAPPY.
THAT'S CORRECT. SO THE SECOND PIECE IS, AS WE WERE GOING THROUGH OUR GROWTH SPURT, WE INSTEAD OF BUILDING OFFICE BUILDINGS ON OUR PLANT SITE, WE RENTED OFFICE SPACE IN JEFFERSON PARISH, AND SO WE HAD SOME OF THE SITE EMPLOYEES MOVE THEIR OFFICE ALL STILL IN JEFFERSON PARISH FROM THE SITE OVER TO THE OFFICE BUILDING IN METAIRIE , AND SOME OF THOSE EMPLOYEES WILL MIGRATE BACK AND FORTH.
SO TO ENSURE WE'RE IN FULL COMPLIANCE, WE'VE STATED OUR NEW BASELINE NUMBER OF 410 IS WITHIN JEFFERSON PARISH AND THAT WE'VE ALSO INCLUDED THAT IN ALL DOCUMENTS AS WELL.
PARENTHETICAL. MR. PEARSON, WE NEED TO START THINKING ABOUT ITEP RULES FROM THE PERSPECTIVE THAT THIS CONCEPT THAT YOU HAVE TO BE SITTING IN A PARTICULAR CHAIR IN ORDER TO BE A JOB WITHIN ITEP.
GIVEN WHAT WE LEARNED DURING THE PANDEMIC, THAT PEOPLE CAN ACTUALLY WORK ANYWHERE AND SITTING IN A PARTICULAR OFFICE BUILDING IS MIGHT BE VIEWED BY SOME TO BE ANTIQUATED AND I THINK THAT'S SOMETHING THAT WE OUGHT TO BE THINKING ABOUT, BUT NEVERTHELESS, THOSE ARE THE RULES AS WE'RE SITTING HERE TODAY, AND BUT.
I MAY NOT GET THAT THOUGHT OUT LATER, SO I'M GETTING IT OUT NOW.
I HOPE SOME WISE PEOPLE WILL TAKE IT AND RUN WITH IT.
ANYWAY, SO WHERE WE ARE NOW THAT YOU'VE GOTTEN APPROVAL FROM THE LOCALS TO THE AMENDMENT THAT'S BEEN REQUESTED, IT'S MY UNDERSTANDING THAT LED'S ALREADY EXECUTED THE AMENDMENT.
SO THAT'S THE FIRST MATTER, AND LET'S GO AHEAD AND TAKE A VOTE ON THAT IF WE CAN.
WE HAVE A MOTION TO APPROVE THE RATIFICATION FOR MR. HOLLINS SECOND FROM DR.
WILSON. ANY COMMENTS OR QUESTIONS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? MOTION CARRIES.
THE SECOND MATTER THAT YOU REQUESTED THAT WE TAKE UP ALL THE NONCOMPLIANCE ISSUES AT ONE TIME AND I'M WE'LL VOTE ON THAT, BUT THE DIFFICULTY FOR US TO DO SO IS THAT.
WE. YOU HAVEN'T BEEN FOUND NON-COMPLIANT YET FOR 2022, AND FOR US TO ADJUDICATE A NONCOMPLIANCE THAT IS NOT FORMALLY BEFORE US IS PROBLEMATIC.
YOU KNOW, PERHAPS IT SHOULDN'T BE, BUT IT IS, AND SO I WOULD I WOULD ENTERTAIN A MOTION TO DENY THE REQUEST TO TAKE UP THE OTHER NONCOMPLIANCE.
MOTION FROM DOCTOR WILSON, SECOND FROM MR. NASSAR. ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE BEING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
I'LL BE BACK. I KNOW YOU'LL BE BACK.
HEY WE LOVE TO SEE YOU UP HERE.
IT IS WHAT IT IS, MR. CHAIRMAN. THANK YOU ALL VERY MUCH.
THANK YOU VERY MUCH. NEXT WE HAVE NONCOMPLIANCE FOR NEW OR FOR APPLICATIONS UNDER THE 2017 RULES.
THERE ARE TWO CONTRACTS FOR EQUILON ENTERPRISES, LLC, DBA SOPUS IN SAINT JAMES PARISH THAT WERE NON-COMPLIANT FOR THE 2020 AND 2021 REPORTING PERIODS.
THE EXHIBIT A FOR THESE CONTRACTS REQUIRED.
THE COMPANY RETAINS 66 JOBS AND 13 MILLION IN PAYROLL.
WE DID GET A LETTER FROM THE SAINT JAMES PARISH TAXING AUTHORITIES, WHICH CONSISTED OF THE SAINT JAMES PARISH PRESIDENT, SAINT JAMES PARISH SCHOOL SUPERINTENDENT SAINT JAMES PARISH SHERIFF AND SAINT JAMES PARISH ASSESSOR THAT STATED, WE RESPECTFULLY DEFER TO THE BOARD FOR ACTION RELATIVE TO THESE NONCOMPLIANCE OCCURRENCES, AND IN DOING SO, WE ASK THAT THE BOARD CONSIDER THE SPECIFICS PREVIOUSLY MENTIONED ABOVE AND THAT THE RENEWALS OF THESE TWO AND THAT THE RENEWAL OF THESE TWO CONTRACTS HAVE ALREADY BEEN
[00:45:10]
FORMALLY CANCELED.DO WE HAVE ANYONE HERE FROM EQUILON? GOOD MORNING, MR. CHAIR. GO AHEAD.
GOOD MORNING, MR. CHAIRMAN, MEMBERS.
EXCUSE ME. WE HAVE BEEN BEFORE YOU A COUPLE OF TIMES SINCE THEN DUE TO THE NON OPERATING STATUS OF THE REFINERY TO EXTEND CONTRACTS. IN THE INTERVENING TIME, THERE WERE A TOTAL OF 14 CONTRACTS IN PLACE AT THE TIME OF THE CLOSURE.
IN LATE LAST YEAR, WE CANCELED AND MARKED AS COMPLETE TEN PRE EXECUTIVE ORDER CONTRACTS , AND THEN EARLIER THIS YEAR, THESE TWO CONTRACTS THAT ARE SUBJECT TO THIS NONCOMPLIANCE, WE CANCELED RENEWAL AND MARKED AS COMPLETE THOSE TWO CONTRACTS.
SO THERE ARE TWO REMAINING ITEPS IN PLACE, PRE EXECUTIVE ORDER.
ALL OTHERS HAVE BEEN COMPLETED.
AGAIN, THE NONCOMPLIANCE WAS PERHAPS UNAVOIDABLE DUE TO THE SITE NOT OPERATING ANY FURTHER.
WE CERTAINLY APPRECIATE AND RESPECT THE IMPORTANCE OF THESE PROGRAMS. THE TIME THAT YOU AND STAFF SPEND ON THESE PROGRAMS, AND AS NOTED, THE LOCAL PARISH OFFICIALS DEFER TO THE BOARD.
SO JUST TO BE SURE THAT WE'RE ALL ON THE SAME PAGE, THE CONVENT REFINERY SHUTS DOWN.
EQUILON IS ONE OF THE SUBSIDIARY COMPANIES WORKING WITHIN THE REFINERY FOOTPRINT, IS THAT CORRECT? CORRECT, AND SO WITH THE SHUTDOWN, EQUILON SHUT DOWN AS WELL, AND AS I UNDERSTAND IT AND AS YOU ALL HAVE BEEN BEFORE THE BOARD BEFORE, THERE IS STILL A LOT OF PLAY IN THAT SITE WITHIN THE SHELL ORGANIZATION AND YOU DESIRE TO KEEP THAT SITE IN PLAY AND SOME CONTRACTS YOU'VE KEPT IN PLACE SO THAT YOU CAN THAT HELPS DETERMINE HOW THAT SITE MAY BE UTILIZED MOVING FORWARD. IS ALL THAT FAIR? TWO REMAINING CONTRACTS FOR THOSE PURPOSES.
THERE'S NO WAY TO COMPLY, AND SO WHAT WE'RE BEFORE HERE TODAY IS FAILURE TO MEET THE JOBS NUMBERS AND FAILURE TO FILE THE COMPLIANCE REPORTS. THE AS I APPRECIATE IT, THE LOCALS HAVE DEFERRED TO THE BOARD, AS YOU ALL KNOW.
THAT'S WHAT I THINK ABOUT THAT, BUT, MR. NASSAR, DO YOU HAVE SOMETHING YOU WANT TO SAY ON THIS ONE? YES, MR. CHAIRMAN, I WOULD LIKE TO GRANT THEIR REQUEST, SHELL'S REQUEST, EQUILON'S REQUEST.
WHEN THE FACILITY DID SHUT DOWN.
I JUST WANT TO REMIND THE BOARD AND THE PUBLIC THAT EQUILON/SHELL DID PAY IN-LIEU OF TAXES.
WE DID LOSE A LOT OF TAX REVENUE WHEN THE FACILITY WAS CLOSED.
SHELL DID STEP UP TO THE PLATE AND DID PAY GOVERNMENT ENTITIES IN SAINT JAMES PARISH IN LIEU OF TAXES AND HAVE ALSO DONATED HUNDREDS OF THOUSANDS OF DOLLARS TO OUR LOCAL SCHOOL DISTRICTS BESIDES THAT.
SO I JUST HOPE THAT THE BOARD KEEPS THAT IN MIND AND GRANT THIS REQUEST.
WOULD THAT, WOULD THAT BE A MOTION THEN, TO, NO PENALTY FOR NONCOMPLIANCE? YES, SIR. SO I HAVE A MOTION FOR NO PENALTY.
A SECOND FROM MR. [INAUDIBLE], AND DR.
THOMPSON HAS REQUESTED TO RECUSE HERSELF FROM THIS VOTE.
SO LET ME LAY THE TABLE AGAIN.
WE HAVE A MOTION SECOND TO FIND NO PENALTY FOR NONCOMPLIANCE.
THOMPSON RECUSING THEMSELVES FROM THE VOTE.
OTHERWISE, ARE THERE ANY QUESTIONS OR COMMENTS FROM THE BOARD? I'M SORRY. FOR THE RECORD, I DON'T THINK I ACTUALLY READ THE CONTRACT NUMBERS.
IT WAS 20161827 AND 20161827-A.
ALL RIGHT. DOES THAT CHANGE YOUR MOTION, MR. NASSAR? NO, SORRY.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE BEING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION THERE BEING NONE.
THANK YOU VERY MUCH. NEXT, WE HAVE NONCOMPLIANCE UNDER THE 2018 RULES.
[00:50:04]
WE HAVE ONE CONTRACT 20180323-A FOR BAGWELL ENERGY SERVICES INC IN IBERIA PARISH, AND THEY WERE NON-COMPLIANT FOR THE 2019 REPORTING PERIOD.THE ACTUAL JOBS AND PAYROLL CREATED WAS 24 JOBS, WITH 1 MILLION TO 1 MILLION, 28,843 IN PAYROLL.
THE COMPANY IS IN NONCOMPLIANCE DUE TO NOT MEETING THE REQUIRED PAYROLL ONLY.
THE PARISH COUNCIL ISSUED A RESOLUTION STATING THE IBERIA PARISH COUNCIL DOES HEREBY AUTHORIZE THE PARISH PRESIDENT TO RECOMMEND THAT THE LOUISIANA BOARD OF COMMERCE AND INDUSTRY TAKE NO ACTION FOR NONCOMPLIANCE FOR PROJECT YEAR 2019.
ALL RIGHT. WOULD YOU STATE YOUR NAME AND YOUR POSITION WITH THE COMPANY, PLEASE? MORNING. CHAIRMAN MEMBERS RUBEN RANGEL, SENIOR MANAGER WITH ADVANTOUS CONSULTING.
MR. ROGER BAGWELL, THE CEO OF BAGWELL ENERGY SERVICES, WAS UNAVAILABLE THIS MORNING AS HE'S MAKING SOME SALES CALLS WITH SOME CUSTOMERS AND POTENTIAL CUSTOMERS, AND SO HE'S OUT OF TOWN, BUT HE DID HAVE A STATEMENT HE ASKED ME TO SHARE WITH YOU.
CHAIRMAN AND MEMBERS OF THE BOARD, THANK YOU FOR THIS OPPORTUNITY TO COMMENT REGARDING BAGWELL ENERGY SERVICES 2019 PAYROLL NONCOMPLIANCE FOR CONTRACT NUMBER 2018 03238. FIRST, A LITTLE BACKGROUND ON OUR COMPANY AND OPERATIONS.
WE ARE A PRIVATELY HELD AND LOCALLY OWNED AND OPERATED LAND OFFSHORE CONSTRUCTION FABRICATION COMPANY SERVING THE OIL AND GAS INDUSTRIES FROM OUR IBERIA PARISH TWIN PARISH PORT FACILITY IN [INAUDIBLE].
WE MANUFACTURE FABRICATION MODULES, PRODUCTION EQUIPMENT, PIPING, SKIDS, VESSELS, TANKS, PLATFORMS, JACKETS AND MORE FOR OFFSHORE OIL AND GAS EXPLORATION AND PRODUCTION. THE ORIGINS OF OUR COMPANY TRACE BACK NEARLY 40 YEARS IN THE AREA, INCLUDING A SALE OF THE ORIGINAL COMPANY TO THE SHAW GROUP IN THE EARLY 2000 AND THEN A REPURCHASE OF THE BUSINESS FROM THE SHAW GROUP SUCCESSOR AND I IN 2014.
SINCE THAT TIME WE HAVE MADE NEW CAPITAL INVESTMENTS AT THE TWIN PORT FACILITY, INCLUDING ADDITIONS OF PRECISION FABRICATION EQUIPMENT FOR PROCESS INDUSTRY PIPING AND VESSELS, AS WELL AS THE ADDITION OF 15,000FT² TO OUR FABRICATION CENTER PAINTING AND BLASTING AREA AS WELL, ALONG WITH A COMMITMENT TO CREATING NEW JOBS IN THE AREA.
SPECIFICALLY REGARDING OUR 2019 NONCOMPLIANCE ITEM BEFORE YOU TODAY, PLEASE NOTE THAT DURING 2019 BAGWELL EXPERIENCED SOLID GROWTH GOING FROM ROUGHLY 66 EMPLOYEES AT THE BEGINNING OF THE YEAR TO A HIGH OF AROUND 116 IN AUGUST OF 2019, AND WE ADDED OVER $1 MILLION IN NEW PAYROLL FROM THE PRIOR YEAR.
HOWEVER, THE VERY LAST QUARTER OF 2019, WE HAD SOME UNEXPECTED WORK HOLDS FROM A COUPLE OF OUR CUSTOMERS THAT RESULTED IN US FINISHING 2019 LOWER THAN WE WERE TRENDING IN AUGUST OF THAT YEAR. AS NOTED, WE WERE ACTUALLY ABLE TO EXCEED OUR 2019 COMMITMENT ON EMPLOYEES 24 VERSUS 20, EVEN THOUGH OUR NEW PAYROLL NUMBER FELL SHORT BY AROUND $400,000.
THAT UNEXPECTED FOURTH QUARTER REALLY IS THE DIFFERENCE HERE.
FINALLY, AND EVEN THOUGH THIS WAS IMMEDIATELY PRIOR TO THE COVID PANDEMIC IN 2020, I'M PROUD TO SAY THAT OUR BUSINESS DID SURVIVE COVID, WHICH ISN'T NECESSARILY THE CASE FOR EVERYONE OPERATING THE SAME LINE OF WORK IN SOUTH LOUISIANA.
TO THIS DAY, WE CONTINUE A SLOW AND STEADY RECOVERY, UP TO ROUGHLY 150 EMPLOYEES CURRENTLY AND ALSO PROUDLY CONTINUE TO EMPLOY WORKERS FROM IBERIA AND THE SURROUNDING PARISHES. AS ALWAYS, WE APPRECIATE YOUR CONTINUED SUPPORT.
SINCERELY, ROGER BAGWELL, CEO.
I DON'T KNOW IF IT'S FAIR TO ASK YOU THIS QUESTION, BUT DO YOU KNOW WHAT THEIR PAYROLL FOR 2022 WAS? THE ANNUAL COMPLIANCE HAS BEEN SUBMITTED, BUT I DON'T HAVE THAT IN FRONT OF ME.
OKAY. JUST TRYING TO GET CONTEXT ON HOW THE REBOUND WAS AFTER THE PANDEMIC.
WE HAVE THE PARISH ASKING THAT THE BOARD TAKE NO ACTION AND NO RESPONSE FROM THE SCHOOL BOARD, AND ITEP WAS NOT APPLICABLE TO THE SHERIFF OR THE MUNICIPALITY.
SO WHAT IS THE PLEASURE OF THE BOARD? WE CAN PENALIZE.
WE CANNOT PENALIZE FOR THE NONCOMPLIANCE.
WILSON TO APPROVE WITHOUT PENALTY.
WE HAVE A SECOND FROM MR. MOSS. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE BEING NONE. THE MOTION CARRIES.
NEXT WE HAVE TWO CONTRACTS FOR K AND B MACHINE WORKS LLC.
THE FIRST CONTRACT IS 20170624 FOR THE 2021 REPORTING PERIOD.
[00:55:03]
THE EXHIBIT A FOR THIS CONTRACT REQUIRED THE COMPANY TO CREATE AND MAINTAIN 37 JOBS, WITH $2,648,497 IN PAYROLL. THE ACTUAL JOBS CREATED WAS 43 JOBS, WITH $1,981,311 IN PAYROLL.AND THE SHERIFF SUBMITTED A LETTER STATING, MY RECOMMENDATION TO THE BOARD OF LOUISIANA ECONOMIC DEVELOPMENT IS FOR ALLOWANCE OF CONTINUATION OF THE PROJECTS OF K AND B MACHINE WORKS WITH NO PENALTY.
THE SECOND CONTRACT IS CONTRACT 20180498 FOR THE 2021 REPORTING PERIOD.
THE ACTUAL JOBS CREATED WAS SEVEN JOBS WITH $173,342 IN PAYROLL.
THE PARISH AND SCHOOL BOARD SUBMITTED RESOLUTIONS RECOMMENDING THE CONTRACT BE HONORED BY THE STATE AGENCIES WITHOUT PENALTY, AND THE SHERIFF SUBMITTED A LETTER STATING MY RECOMMENDATION TO THE BOARD OF LOUISIANA ECONOMIC DEVELOPMENT IS FOR ALLOWANCE OF CONTINUATION OF PROJECTS FOR K AND B WITH NO PENALTY.
WE HAVE WE HAVE SOMEONE HERE FROM K AND B.
THANK YOU. WOULD YOU STATE YOUR NAME AND YOUR POSITION WITH THE COMPANY, PLEASE? YES. SCOTT HEBERT, RISK MANAGER AT K AND B INDUSTRIES.
THANK YOU, MR. HEBERT. TELL US WHAT HAPPENED HERE.
WE YOU KNOW, BUSINESS WAS DOWN.
WE HAD, YOU KNOW, THE HURRICANE AND 21, WE STARTED TO REBOUND A LITTLE BIT, BUT I THINK WE WERE A LITTLE OVERAMBITIOUS WITH THE 37 JOBS ON THAT ONE PROGRAM, AND YOU GOT TO FILL THAT BASE.
YOU GOT TO REPLACE THOSE ONES THAT YOU LET GO AND WHILE WE MADE PROGRESS, WE DIDN'T HIT THE NUMBERS WE NEEDED TO HIT FOR 2021.
HELP ME UNDERSTAND BECAUSE I'M STRUGGLING WITH THE NUMBERS A LITTLE BIT.
ON THE ONE CONTRACT WHERE YOUR GOAL WAS 37, YOU GOT 43.
SO YOU HAD THE PEOPLE, RIGHT, BUT THE PAYROLL WAS ABOUT $700,000 SHORT.
WHAT WHAT WAS THE WELL, WAS IT THE WAGES THAT WERE PAID? WAS IT THE LEVEL OF EMPLOYEES THAT YOU WERE HIRING? IT WAS THE TIME THAT WE HIRED THEM.
WE HIRED THEM LATE IN THE YEAR.
THAT WAY, WE DIDN'T HIT THE NUMBER.
THAT MAY HELP EXPLAIN THE NEXT ONE BECAUSE ON THE NEXT CONTRACT, YOUR GOAL WAS TEN JOBS AND YOU HIRED SEVEN, BUT THE DIFFERENCE IN PAYROLL WAS ALMOST OVER $500,000.
2021 WE STARTED RECOVERING LATE IN THE YEAR AND WE WERE HIRING PEOPLE LIKE CRAZY LATE IN THE YEAR, BUT IT'S THAT SAME SCENARIO.
THANK YOU FOR EXPLAINING IT TO US.
IT JUST IT HELPS US UNDERSTAND WHAT'S SEVERAL THINGS HAPPEN THROUGH THIS PROCESS.
WE HAVE TO UNDERSTAND WHAT'S GOING ON OUT THERE IN THE FIELD.
WE HAVE RECOMMENDATIONS FROM ALL THE LOCAL ENTITIES TO TAKE NO ACTION ON THIS MATTER.
I HAVE A MOTION FROM MS. COLA TO APPROVE WITHOUT PENALTY.
I HAVE A SECOND FROM MR. SLOAN.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
THANK YOU, SIR. THANK YOU VERY MUCH.
WE REQUESTED A DEFERRAL OF 20180296 AND 20190393 NONCOMPLIANCE FROM MARTCO, LLC. THEY WEREN'T ABLE TO HAVE A COMPANY REPRESENTATIVE ATTEND TODAY.
OKAY. DO WE HAVE A MOTION TO DEFER THE MARCO CONTRACTS? I HAVE A MOTION FOR MISTER SLOAN.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC THERE BEING NONE.
ALL IN FAVOR SAY AYE? AYE. ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES THOSE MATTERS ARE DEFERRED TO THE NEXT MEETING, AND THAT CONCLUDES THE PORTION OF THE AGENDA.
[01:00:07]
THANK YOU VERY MUCH, AND THAT BRINGS US TO THE END OF OUR PROGRAMS, BUT WE ANY OTHER BUSINESS.THERE IS NONE. MR. SECRETARY, ENLIGHTEN US.
[9. Secretary Remarks – Secretary Don Pierson]
WELL, I'M GLAD TO SHARE WITH THE BOARD AND.OUR STAKEHOLDERS HERE THAT WE'VE HAD A VERY RAPID PACE THIS SUMMER.
ONE WITH SLB AND ANOTHER ONE WITH [INAUDIBLE].
SO PLEASED TO SEE A CONTINUED STRONG PACE FOR OUR LOUISIANA ECONOMY.
THAT FOLLOWS A SIMILAR NUMBER IN 21 AND 22.
SO YOU'RE LOOKING AT A THREE YEAR PERIOD WITH MORE THAN $60 BILLION FLOWING INTO THE STATE, GIVING US A RECORD LOW IN OUR UNEMPLOYMENT STATISTICS. SO WE'RE EXCITED ABOUT THAT.
WE'RE ALSO MOVING FORWARD NOW THAT WE'VE HAD THE STATE SMALL BUSINESS CREDIT INITIATIVE FOR APPROXIMATELY FOUR MONTHS, BUT THAT MONEY IS BEGINNING TO MOVE OUT THE DOOR AS WELL IN SUPPORT OF SMALL BUSINESSES AND ENTREPRENEURSHIP.
SO REALLY JUST STRONG ACTIVITY TO REPORT ACROSS THE BOARD.
I WOULD NOTE FOR YOU ALL THAT OUR NEXT CNI BOARD MEETING WILL BE SET FOR 25TH OCTOBER AND THEN WE MOVE THE DECEMBER MEETING UP AWAY FROM THE HOLIDAYS. SO THAT WOULD BE CALENDAR FOR 6TH DECEMBER SUBJECT TO ANY COMMENTS OR QUESTIONS THE BOARD MIGHT HAVE.
THANK YOU, MR. PEARSON. ANY QUESTIONS FOR THE SECRETARY? GREAT. I WOULD ENTERTAIN A MOTION TO ADJOURN.
WE HAVE A MOTION AND A SECOND.
HAVE A GREAT WEEK.
* This transcript was compiled from uncorrected Closed Captioning.