What a Life for June 27, 2007
June 26, 2007Ellis Lottinger, Jr.
June 28, 2007Two companies are seeking state Gulf Opportunity Zone bond and Enterprise Zone funding to expand their facilities in Terrebonne Parish, company spokesmen said at the Terrebonne Economic Development Authority’s June meeting.
The Anheuser-Busch distributorship in Houma wants up to $8 million in Gulf Opportunity Zone (Go Zone) bond funding to expand its 30-year-old facility from 10,000 square feet to 18,000 square feet.
Local Anheuser-Busch wholesaler J.J. Buquet said the expansion would likely cost between $4 to $6 million.
The project is in the planning stages, and would not be undertaken until 2008.
“It’s a massive redo,” Buquet said. “I’ve seen an increase in business volume.”
The federal government established Go Zone funding in December 2005 to aid businesses affected by the hurricanes that year. Go Zone money is intended to aid recovery by promoting investment by the private sector.
Although Go Zone bonds are federal funds, businesses seeking Go Zone financing have to apply to the Louisiana State Bond Commission, which issues the bonds.
“Go Zone is tax-deferred,” Buquet said. “It’s a competitive rate.”
Public finance attorney Ray Cornelius told TEDA that the state Bond Commission is classifying an overload of financing requests as Go Zone funding.
“What will happen is a lot of projects have allocations that will not go forward,” he said.
Anheuser-Busch would have to return any unspent Go Zone money to the state.
Morgan City oilfield services-company Diamond Services Corporation wants to construct a ship-repair yard at a 1,900-acre site the company owns in Gibson on Bayou Black.
In addition to state Enterprise Zone financing, Diamond Services is seeking one-third of one percent exemption in sales taxes from Terrebonne Parish.
The company would receive a four percent exemption from the state through Enterprise Zone funding.
“We want the four percent,” Diamond Services spokesman Tim Tregle said.
TEDA board member Laurie Shannon said, if it qualifies for Enterprise Zone financing, the company would receive a $2,500 per employee benefit.
Katherine Gilbert, TEDA business retention and expansion director, said that the Enterprise Zone funding “is a given for a valid project.”
Tregle said that improvements made at the Gibson yard will cost $10 to $15 million, and would create 70-225 jobs.
The company is exploring constructing a 1,000-metric-ton dry-dock lift at the Gibson yard, which would be the largest of its kind in the U.S., he said.
The Enterprise Zone program was created by Louisiana to encourage businesses to expand into low-income areas by granting businesses income and franchise tax credits.
The program also encourages companies to purchase supplies in Louisiana so that sales tax dollars would not go to other states.
Diamond Services would have three years to create at least 200 jobs to qualify for Enterprise Zone financing.
Tregle told TEDA that the agency is “doing a fine job with business growth in Houma. I can’t give you high enough marks.”
TEDA’s June meeting was the first to be held in the agency’s new offices on Corporate Drive. TEDA formerly met in the Government Tower building in downtown Houma.
