TEDA chief: Grants still available

Terrebonne Economic Development Authority CEO Mike Ferdinand had one principal message for businesses in the parish wanting to grow their operations.

“If you’re looking at some level of expansion, let us know so we can coordinate with the state of Louisiana,” Ferdinand said at last week’s Houma-Terrebonne Chamber of Commerce meeting in Houma. “Just because tax credits and grants are out there doesn’t mean you qualify. We help you with the process.”

Ferdinand said TEDA helps businesses apply for tax and other economic incentives.

“States can apply, South Central Planning and Development Commission can apply, but most businesses can’t apply on their own,” he said.

But receiving tax breaks depends on the level of employment a business sustains and the amount of its payroll.

Ferdinand said people have gone to TEDA asking for free money.

“We work on a cost/benefit analysis,” he said. “If a public body is going to invest in your business, there has to be a cost benefit to the taxpayer.”

And because of the federal stimulus bill, a significant amount of money is available to businesses, he said.

Ferdinand identified areas within different sectors of the economy that are most likely to receive incentives. Projects that enhance the environment are high on the list.

“Brownfields are being focused on,” he said. “If you have a green project, it could be eligible for funding,” he said.

In the energy sector, programs being considered for incentives also have a green focus.

“Fossil fuels are not being incentivized through the federal government,” Ferdinand said. “The ‘Cash for Clunkers’ idea is to put cars on the road that will burn less fuel, but that has a negative effect on our economy locally.”

In education as well, projects aimed at moderate- to low-income people and that take into account the environment can receive incentives.

For projects involving public safety, “If you’re given a lot of money it’s best to run it through existing programs,” Ferdinand said.

TEDA assisted several companies with applying for Maritime Innovation Grants, he said. A company in the parish received one.

“They’re (the grants) are spread throughout the U.S.,” he said. “We were blessed.”

In the housing sector, Terrebonne is an entitlement community because of its relatively large population, allowing the parish to manage its own dollars. The state would manage the money if the parish’s population were smaller, Ferdinand said.

However, TEDA’s main focus is on economic development. “If you have a shovel-ready project, you can get funding,” he said.

The agency works closely with South Central Planning and checks the Federal Register daily to see what opportunities exist for businesses in the parish.

The amount of Gulf Opportunity Zone (GO Zone) bonds has been expanded by $2.2 billion after funding for that amount in the New Orleans area was withdrawn, Ferdinand said.

He recommended businesses transfer traditional financing to bonds.

Establishing Community Development Districts, prevalent in Texas and Florida, can help with paying the cost of building infrastructure, he said.

Businesses can receive a $2,500 tax credit from the state through the Enterprise Zone program for each new job created and a 5 percent rebate on payroll through the state’s Quality Jobs program.

“If you’re creating jobs, call us,” Ferdinand told the chamber audience. “We don’t want you to pay more taxes than you have to.”

Like the book in his hand suggests, Terrebonne Economic Development Authority CEO Mike Ferdinand explained at the Houma-Terrebonne Chamber of Commerce meeting last Tuesday that it is the job of TEDA to find free money available to businesses. * Photo by KEYON K. JEFF