It is reported that a lucrative state incentive deal that figured prominently in luring North Carolina steelmaker Nucor Corporation to Louisiana has prompted debate in St James Parish as local officials have gotten a closer look at its details.
Parish officials said that at the heart of that discussion has been whether to grant Nucor local sales tax exemptions and how special payments that Nucor has promised to the school system, the sheriff and parish government should be divvied.
The payments have also been part of a debate in the parish about who should have a say in crafting such a deal and how much future tax revenue should be given up for the promised benefit of the USD 3.4 billion, 1,250 job facility that Nucor plans for 4,000 acres of riverside agricultural land in the east bank Romeville Paulina area, south of the Sunshine Bridge.
Under a state agreement, Nucor will make payments in increasing amounts as the facility’s five phases come online. The payments would be shared by the school system, sheriff and parish government.
Mr Stephen Moret Louisiana Department of Economic Development Secretary said that "Candidly, this is the first time we have faced a situation where there wasn’t universal enthusiasm about a major project among local government entities."
Mr Moret indicated an agreement has been reached that settles a sticking point over the School Board’s share of the Nucor payments.
Mr Mike Delaney Nucor attorney said that the School Board and Nucor agreed that the school system’s share of the payments should match its share of the total parish mileage rate, or about 40%. He added that "I think Nucor is enthusiastic about the parish, enthusiastic about the state, certainly, and enthusiastic about the people we've met."
St James School Superintendent Mr Alonzo Luce said that school officials were concerned the wording of the state agreement gave parish government a say on the schools' share. He said they have reached a good faith agreement with Nucor that still needs to be written.
Mr Moret also said that there has been miscommunication about the state agreement. When Nucor first discussed the payments, it was planning to build a USD 2 billion pig iron plant in its first phase, so the payments being discussed were larger.
He added that Nucor is now starting with a USD 750 million direct reduced iron facility, so the payments are initially less than first described, though the total capital investment will ultimately be the same.
The agreement between Nucor and school officials follows concerns raised by the school officials and Assessor Glenn Waguespack that they were not parties to the state agreement and were left out of negotiations.
School Board President Mr Charles Nailor said school officials had to file a public information request to get a copy of the state agreement after the September 15th 2010 announcement that Nucor will be locating in Louisiana.
(Sourced from www.2theadvocate.com)
