State's bond authority has more than $600 million left
Time is running out for the state to allocate the remaining 9 percent of the $7.8 billion in Gulf Opportunity Zone bonds that the federal government awarded Louisiana to support private development projects after Hurricane Katrina.
View full sizeFour plantations once existed on the St. James Parish land that Nucor Corp. wants to use for its factory. This Thursday's State Bond Commission meeting will address how and when the state might approve projects wishing to tap more than $600 million remaining in the state's GO Zone bond authority. Under the program, companies or developers can issue tax-exempt bonds to finance qualified projects, which must be approved by the Bond Commission and the Department of Economic Development. The deadline for issuing the bonds is Dec. 31.
The economic development agency has asked the Bond Commission to keep at least $600 million available for projects it is recruiting to the state but which have not yet applied for the program. Those projects could include Nucor's major pig iron plant potentially going to St. James Parish.
Once an economic development project applies for the GO Zone bonds, it can no longer be kept secret. The commission agenda includes a discussion of the issue but no specific requests for authorizations. Delays in approval beyond Thursday's meeting would decrease the chances of developers getting their bonds to market before the end of the year.