GO Zone bond OK’d for Buquet

Anheuser-Busch distributor Buquet Distributing will be receiving $5 million in low-interest federal Gulf Opportunity Zone bond money from the Louisiana State Bond Commission to expand and remodel its Houma facility, said Terrebonne Economic Development Authority business expansion director Katherine Gilbert at the authority’s board meeting last Wednesday.

Buquet’s expansion is expected to create seven new permanent jobs.

The commission has been distributing $8 billion in GO Zone bonds to businesses in areas along the Gulf Coast affected by hurricanes Katrina and Rita.

The bonds are tax exempt for investors.

Excessive demand for GO Zone funding in the state caused the commission last year to tighten access to the money, forcing many businesses to reapply for the shrinking amount of funds.

TEDA had applied for $8 million in GO Zone money on behalf of Buquet last year, but was refused even though the bond money had received preliminary approval.

A controversial review by the Louisiana Economic Development Department had found that Terrebonne Parish increased its amount of beer consumption since Hurricane Rita.

However, under a new rating system put in place by former Gov. Kathleen Blanco’s administration, the commission determined that the number and quality of the jobs created by Buquet’s expansion was insufficient.

The commission changed its decision at a special meeting on May 6, Gilbert said.

“The bond commission put a moratorium on future GO Zone bonds,” said TEDA CEO Mike Ferdinand, “but capacity became free.”

TEDA has 240 days to complete the financing for the project, Ferdinand said.

Also at Wednesday’s meeting, the TEDA board passed a motion supporting the Houma Downtown Development Corporation’s push to create a cultural district receiving special state and local tax exemptions.

“It would allow buildings being refurbished a greater tax credit,” Ferdinand said. “It’s a greater incentive to invest in downtown. It’s intended to foster culture.”

Original art sold in the district would be exempt from the 4 percent state sales tax and the non-obligated part of the parish sales tax, which is one-third of a cent, he said.

The Downtown Development Corporation would have to formally ask for the exemptions from the state Governor’s Office and the Terrebonne Parish Council, which would need to approve the new cultural district’s boundaries.