New TEDA details emerge

New information provides new hints explaining the Terrebonne Parish president’s desire to axe the parish’s independent economic development agency and bring its tasks under the aegis of parish government.

But insight as to how well grounded Michel Claudet’s game plan is, and whether perceived missteps by the Terrebonne Economic Development Agency justify elimination of its chief funding mechanism remains elusive.

As part of his 2014 budget, Claudet proposes eliminating the funding local government gives to TEDA – the mainstay of its financial income – which is derived from half of the parish’s occupational license fees. The plan has drawn sharp public criticism from two parish council members, Arlanda Williams and Christa Duplantis Prather.

Reasons cited by Claudet were read from a prepared statement before council members.

“I have worked with the TEDA organization since I began my term in 2008. I have had an opportunity to closely watch the actions of the TEDA organization in the business community,” Claudet told council members. “I have particularly watched with a careful eye the actions of TEDA during the last 25 months and I have heard the requests of the businesses in our community who need assistance in expansion and businesses who want to locate in our area. Prior to my government service I personally served as a CPA, Attorney, CLU and was involved in many business transactions. I also owned numerous businesses and I also started a bank in this community and served as its Chairman until I ran for Parish President. I feel I am a good judge of the performance of the TEDA organization in our community. Also, as the chief elected official of the Terrebonne Parish Government I am charged with the budget and the fiscal responsibility of making certain our dollars are well spent. It is my belief that the continued funding of the TEDA organization in its present form is not in the best interest of the parish and that the function of economic development would be better served by having this function within parish government at the present time. “

Claudet then said that he does not “intend to argue this in the media and I do not intend to wallow in the mud over this issue. I have a legislative branch to whom I am accountable and it is to them that I owe explanations – not to the media. One final note, anyone who knows me should know that I would not take an action like this unless I truly believe this is for the good of Terrebonne.”

Referring to criticism of TEDA’s outreach to China as part of its economic development agenda, Claudet noted that “this has nothing to do with China.”

DIFFERENCE OF OPINION

An examination of e-mails and memos to and from Claudet and some of his staff over the past six weeks, supplied by parish government in response to a public records act request from the Tri-Parish Times, as well as interviews with business leaders, government officials and TEDA staff and board members, show a divide between parish government’s perception of the job the agency is doing and its own assessments.

The emails and subsequent interviews also show disparities between how Claudet and staff members view the mission of the agency as opposed to its own staff’s view of what it should be doing.

Executive Director Steve Vassallo, in some ways a lightning rod for TEDA’s critics, has already resigned from his position. But the work done by TEDA – which all indications show has been approved by its board of directors – is seen as an issue.

The e-mails examined are by no means conclusive, and more detailed electronic discussion of TEDA may exist in documents dated prior to Aug. 1, the cut-off date for the public records request.

But issues related to TEDA grew steadily in communications after Sept. 1.

The emails include a Sept. 14 compilation of alleged problems with TEDA contributed to by several parish government staff members.

Among these was a complaint that very few loans are being produced.

The tracking of loans, the email from a parish government staffer alleges, fell behind and some became delinquent after a newly hired Vassallo laid off two key TEDA employees in an attempt, he said, to streamline operations.

A project intended to attract offshore firm Danos & Curole to the Port of Terrebonne was cited as a failure – the firm eventually opened shop in St. Mary Parish – as was lack of “incentive guidance” for expanding or relocating firms. Site selection assistance was cited as a shortcoming and inaction on flood insurance rate increases was also listed as a problem.

“To my knowledge there are no visitations taking place to retain the businesses we currently have in Terrebonne,” one report reads. “I recall that the previous TEDA Administration was working with existing businesses for the retention of existing companies.”

Another staff report states “I have not heard from TEDA regarding working with interested businesses who want to locate in Terrebonne. The previous TEDA Administration would call me periodically to find out what was required for a specific location for a perspective business coming to Terrebonne. This is not happening currently. I do not hear from TEDA at all.”

COUNCIL TO DECIDE

Extensively interviewed about those comments and others, Vassallo said one of the problems is that the alleged shortcomings – for the most part – were never communicated directly to him or the board he serves.

Vassallo also supplied detailed answers to the criticisms, stating in several cases that certain tasks were not part of TEDA’s mission. He also provided data that directly contradicts some of the comments made.

Ultimately the parish council will decide whether Claudet’s plan to place economic development under the Department of Planning and Zoning has merit, and lines for the most part appear drawn on that, with one or possibly two council members being the swing votes.

Claudet himself appears confident he will get his way and has already told TEDA officials he wants any unused money in the agency’s coffers turned over to the parish government, providing the council accedes to his requests.

The Oct. 3 letter to TEDA Chairman Clarence Williams mentions a meeting between the two men which was also attended by TEDA board members Louis Watkins and Chris Lapeyre.

It gives thanks for “a very meaningful discussion concerning the merits and problems with TEDA.”

Claudet says he reviewed the potential for parish government and TEDA sharing roles, or TEDA performing some specific tasks for the parish government after the conclusion of its contract on Feb. 1.

“I find that this would be unworkable,” Claudet’s letter states.

“For all of the above reasons, and subject to council approval of my proposed budget, it is my request that TEDA fulfill its functions through February I, 2014, wind down its operations as quickly as possible thereafter and return to TPCG all unobligated funds that are for the taxpayers of Terrebonne Parish. I hope that the transition will be very smooth and I commit to amicably work with TEDA to accomplish the above. We trust the above is self explanatory.”

MARDI GRAS SURVEY

Vassallo said plans are for the agency’s attorneys to review that request, to see if it can be accomplished legally.

A suggestion that Claudet’s expectations for TEDA’s performance differ from Vassallo’s vision emerges in discussions over one alleged shortcoming, a report of Mardi Gras’ economic impact in Terrebonne.

According to Vassallo, Claudet asked for surveys to be done to make that determination.

But there were issues, Vassallo said.

Businesses were not able to supply a breakdown in many cases of which revenue related to Mardi Gras and which did not, he said.

One example cited were jewelry stores, which do a bang-up business selling accessories purchased as gifts among and to Mardi Gras royalty.

Jewelers, Vassallo said, told his staff they could supply the information the following year, by noting which purchases were Mardi Gras related.

Vassallo recalls that this was received with displeasure by Claudet, who allegedly saw it as a “fail.”

Documentation of TEDA’s outreach to businesses for retention and other efforts were already supplied to the Tri-Parish Times and published in an article appearing last week.

Board members of TEDA did note that during the tenure of former director Mike Ferdinand, various duties were taken that were not necessarily seen as part of the economic development mission but as honey-dos for Claudet. Among those programs, board members said, were a generator distribution plan discontinued under Vassallo.

TEDA board members said they hope parish council members vet Claudet’s plan carefully. At risk, some say, is the potential that strides already made, such as work toward partnerships with Chinese firms, might fall by the wayside under a parish-run economic development program.

The first public hearing on the budget was set for this week. All departments in the parish will be heard from through December.

Discussion of TEDA’s continued existence could have difficulty finding a niche within the budget process, although the agency’s allies on the council are in the process of trying to find out just when the item may be discussed.

Another TEDA program that has been well reviewed – in some circles – is also at risk according to TEDA partisans. A TEDA-run entrepreneurship fest, which drew 500 people this year and is expected to be bigger next year, could also go belly-up. The parish government has not expressed strong approval of it.

Although Claudet said China was not an issue in his decision, at least three parish council members have mentioned their own distrust of doing business with the Chinese as an economic development tool as a reason they would side with Claudet.

SIDES LINE UP

Danny Babin was critical of the China connection from the beginning. Dirk Guidry and Pete Lambert, citing distaste for working with the Chinese expressed by constituents, are also clear that the project is first on their list for reasons not to support TEDA’s continued existence.

But council members who say they clearly see the value of work TEDA has done and will continue to do plan to speak up when hearings on Claudet’s proposed budget take place.

Arlanda Williams is among those voices.

“I work well with the parish administration as well as the TEDA administration,” Williams said. “I think the two leaders are intelligent and strong men. If we sit down and come up with an intelligent and strong compromise then we can do nothing but further the growth of the parish. Each parish in Louisiana needs an economic development arm and an agency that is strictly concerned with economic development. So I see the need to continue TEDA and highlight any downfalls and correct them so that everyone is even on what needs to take place, what problems need to be corrected.

I wish that we could work together of one accord.”

Terrebonne Economic Development Authority director Steve Vassallo addresses the Terrebonne Parish Council in this file photograph. Shortly after providing the parish with an update on TEDA’s activities, Vassallo presented his letter of resignation. Emails obtained by the Tri-Parish Times indicate problems between the Parish President Michel Claudet and TEDA had already been emerging.

CLAUDETTE OLIVIER | TRI-PARISH TIMES