Negotiations begin for Baron’s land

Negotiations began between L-M Management president Porter Baron and Terrebonne Parish Port Director David Rabalais for 100 acres of Baron’s more than 1,700 acres of land near Gibson.

The port intends to buy the land and rent it out to a perspective client company the Terrebonne Economic Development Authority has lined up. The port would then try to bond out the cost of the purchase.

The interested company could bring about 125 non-oil field jobs to the Gibson area.

Overall, Baron was happy with what Rabalais and TEDA brought to him Monday.

“Good talk and we’ll see what comes of it,” said Baron. “It’s all very interesting. We’ll see.”

Baron wouldn’t divulge any details, but said he found out more about the proposed railway enhancement to his property. And he said what he saw looked good, but wanted it to be put in more definitive terms.

The railway improvements come at the request of the interested company.

Rabalais said TEDA sent Baron some drawings of the proposed railway upgrade to Baron’s property from the railway company, BSNF Railroad, and Baron liked them.

As well he should, as the upgrades could inflate the value of the remainder of Baron’s 330 acres of “useable” land, the non-wetland, non-woodland variety, even more.

“We haven’t come to any agreement on anything, yet, but I’m hoping he gets back to us today [Monday] on something,” said Rabalais.

Rabalais also said they didn’t talk about an appraisal, which Baron has said in the past he did not want to have.

“All we’re looking for right now is a price. He needs to let us know what he wants. We made him an offer and we’re waiting to find out if that’s what he wants,” said Rabalais. “If not, then we want to know what he wants so that we can take that and hopefully enter into successful negotiation with a potential client.”

These negotiations are merely a continuation of the saga that has evolved around Baron’s 1,700 acres of derelict land near Gibson.

At the end of the 2007 Regular Legislative Session, state Senate Bill 33, died. The bill could have potentially given the port the ability to expropriate Baron’s land, by expanding the port’s existing, state constitutionally-protected expropriation powers.

Rabalais had been on record saying the bill was intended to give the port leverage against Baron to bring him back to the negotiation table with a more reasonable asking price.

Before the bill, TEDA and the port negotiated with Baron on more than one occasion, bringing interested companies to the table. Baron then upped his asking price to three to four time the soon-to-be-assessed tax value of the land, about $30 million.

The 100 acres the anonymous company is specifically interested in is Tract A and the old service marine yard on the property.

The Port mailed a letter of intent to Baron seeking to negotiate a price and purchase his land last week. Baron said he received it on Friday.