TEDA could hand TPC property control

In an action not uncommon to the idea of re-gifting, the Terrebonne Economic Development Authority Board of Commissioners was forwarded a recommendation by the TEDA executive committee that could hand over operations of an empty 195,000 square foot building on eight acres donated by Weatherford to the economic body earlier this year.

For several months, TEDA members have discussed what to do with the building and land on Industrial Boulevard, but until now had not received any serious prospects for the property.

Terrebonne Port Commission Executive Director David Rabalias issued a request to TEDA that the TPC be given an opportunity to acquire the property either outright or by way of lease management.

“[We are] thinking about the location of the property and what it entails as far as the type of property and type of tenant it could attract. David and I did some talking and there may be come consideration where the port may be a better place for the Weatherford property to stay,” TEDA Chairman Don Hingle said. Hingle also sets on the Terrebonne Port Commission Board.

Hingle said that due to the location of the Weatherford property, next to the Port of Terrebonne, a transition of the property for industrial use would be convenient. “I’m not sure we want to be in the leasing business at this time and manage property, whereas the port does that every day,” he said.

The TPC is one of few oil and gas service ports in Louisiana, and according to Rabalais could help generate tax revenue for the parish by leasing the Weatherford property to petroleum or petroleum support businesses.

“We have looked at [the Weatherford property] for awhile,” Rabalais said. “The building does have a lot of problems in that it floods. Any major renovations would have to go to new flood codes and the basic elevation would have to change. That’s one of the reasons they have had so much trouble selling the building. But based on its location in the industrial sector of the parish, next to the port, we feel it would be easy for us to manage because we are always there and we deal with the industrial sector more than TEDA does.”

Rabalias said one idea for use of the property, which would not require major renovations, would be to use it as an industrial storage facility. “Pipe, equipment … it would make a good opportunity for the industry in that aspect,” he said.

Turning the Weatherford property over to the TPC, Rabalias said, could boost the Terrebonne Parish’s tax revenue and increase job opportunity.

“I don’t feel like we have the expertise [to manage the property],” Hingle said regarding TEDA.

“I echo 100 percent what Don said about us getting out of the leasing management business,” TEDA CEO Steve Vassallo said. “Anytime I look at property, whether it is a donation or purchase, you always have to [consider] what is the best use for that.’

Vassallo said that if Weatherford would not approve TEDA passing the property on to the TPC, another possible move might be for TEDA to look into entering an agreement with the TPC taking control of the building, but earmarking an income stream of 10 to 15 percent for TEDA.”

Rabalais said his attraction to the Weatherford building comes in its being accessible by water with moderate modifications to the rear of the property. “This alone could not only change the whole dynamics of the building, but also open[s] it up to a whole new market,” he said in a letter to Vassallo dated Aug. 29.

“I think the port is in the best position to manage [the Weatherford property],” TEDA board member Lori Davis said.

Davis said she knows of companies looking for containment storage facilities and believes this property might be suitable for that use. “I think that is something we need to think about, for Terrebonne Parish to become the [container storage] location of choice,” she said.

Rabalais said that the TPC has been in contact with the Port Association of Louisiana to express interest in becoming a location for offshore equipment and containment storage. “We were one of the proposed areas,” he said. “They will have to have several places strategically located.”

“That all sounds well,” TEDA Board member Clarence Williams said. “[But] one of my concerns is, can we generate a revenue stream for TEDA? One thing I’ve been observing lately is the level of sales tax revenue and the decrease that the parish is realizing. I would think we [should ask], what is the income stream for TEDA.”

Hingle said that many economic development organizations begin by looking at office parks, but when TEDA was started organizers knew they had a port. “We thought that would be kind of our industrial park until it is full,” he said. “It was envisioned that would be kind of a hand-in-hand contact with the port being involved in management of industrial property [and] referrals and TEDA would focused more on expansion and development of businesses and training.”

Hingle said that TEDA may not be forever funded by the parish and has to face a budget with limited revenues, but that the organization’s measure of success would be seen in additional jobs, sales tax and property tax. A goal he believes could be enhanced with this property move.

“We have to talk to Weatherford to see if they are OK with changing the direction,” Hingle said.