TEDA documents shed light on L-M negotiations

The Terrebonne Economic Development Authority released documents relating to the Terrebonne Parish Port Commission’s offer to purchase 112 acres of land from South Carolina-based L-M Management President Porter Baron.

The documents revealed the Port Commission offered Baron $50,000 per acre for the land, which is out by Gibson near Bayou Black.

Interestingly, the port commission also notified Baron of its intent to enter into negotiations at an undetermined, future date for an additional 75-acre tract.

The port commission intended to purchase the land from Baron and then lease it to an anonymous company code-named, “the Mars Project company.”

Baron rejected the port commission’s offers in a letter dated July 12.

In the letter, Baron informed TEDA CEO Michael Ferdinand another prospect wished to purchase all of the land owned by L-M partnership on Bayou Black, roughly 1,700 acres, and would not entertain the port commission’s offer.

Baron also voiced his grievance with having to deal with the interested company anonymously through TEDA and the port commission.

“For the future, understand that we will negotiate with the prospective company who will occupy the property,” wrote Baron.

Despite the impending buyout offer, which Baron admits would take months of negotiation; he sent another letter to Ferdinand. In it he expressed his desire to meet with a representative of the Mars Project company and to have a representative of the company telephone him.

Ferdinand and TEDA, as a whole, don’t really care who buys Baron’s land, just as long as someone buys it and develops it. And so TEDA forwarded Baron’s request to the Mars Project company and asked the anonymous company to keep TEDA in the loop if it does choose to deal with Baron directly.

Baron indicated he thinks he spoke to a representative of Project Mars last Friday, but characterized the phone conversation as “strange.”

The situation surrounding the sale and development of Baron’s land has taken many twists and turns. Baron’s 1,700 acres of land sit near the roughly 1,900 acres of land owned by Diamond Services operator and owner Wallace Carline.

In past negotiations with the port commission and TEDA, Baron was accused of asking for an unreasonable amount of money for his land, somewhere on the order of about $60,000 an acre for all his land.

But as the Diamond Services Shipyard takes its first few steps forward on its 250 acres of Carline’s land, it leaves behind 1,650 acres of undeveloped land, which Ferdinand said has been shopped to companies looking to expand or open operation in the area.

TEDA representatives did verify, however, that nearly two years ago, Carline was asking for a $65,000 per acre per year lease for about 100 acres of property adjacent to Baron’s land.

Ferdinand explained companies have not been as interested in Carline’s land because of the lack of a railway. He also said the railway company, NSBF, that owns the rail would likely be unwilling to expand its railway into Carline’s land, because the spur would have to be added to a curve in the track

This would make the railway that much more hazardous and increase liability for NSBF.