Heeding residents' opposition, the Westwego City Council squelched the proposed expansion of a chemical storage facility along River Road despite a last-minute offer by the company to contribute more than $100,000 annually to the city's general fund. The council refused to vote Monday night on Blackwater New Orleans LLC's request for a letter of no objection and a zoning...
Heeding residents' opposition, the Westwego City Council squelched the proposed expansion of a chemical storage facility along River Road despite a last-minute offer by the company to contribute more than $100,000 annually to the city's general fund.
The council refused to vote Monday night on Blackwater New Orleans LLC's request for a letter of no objection and a zoning variance that would have allowed the company to add about 16 million gallons of diesel fuel to its existing storage facility.
Blackwater needed the variance because the $6 million expansion would have violated city rules for how close petroleum products can be stored to the property line and nearby homes. The letter of no objection also was a requirement for storing petroleum products.
Councilman Glenn Green, who introduced the request at the council's Sept. 13 meeting, refused Monday night to make a motion that would have allowed the council to vote on the issues. Green said he's been "beat up" by residents who vehemently oppose the expansion and cannot ignore their feelings. He added that he's ready for the Blackwater issue, discussed since August, to finally go away.
"It keeps coming back like heartburn," Green said.
Blackwater had enlisted the Jefferson Parish Economic Development Commission to conduct a study that showed the expansion would generate more than $600,000 in additional revenue for the city during the next decade.
Blackwater CEO Michael Suder said the company was prepared to create an annual $15,000 scholarship fund for Westwego high school seniors, make a one-time $100,000 donation to the city's general fund, and then make monthly payments of $8,500 to the general fund for the duration of the company's contract for diesel storage. That contract was good for at least three years, and Suder said it could last as long as eight years.
Francis Marrocco, the company's chief commercial officer, said that after safety and odor concerns, the main question asked by residents was how the expansion was going to benefit the city. He said the additional benefits offered by Blackwater should make it clear that the company wants to be a good neighbor.
"We've gone above and beyond," Marrocco said. "The sentiment has been that the risk versus reward wasn't there, and we've tried to address that situation."
But the company's financial offers angered many residents, who accused Blackwater of trying to buy the council's approval. Gil Breaux, a Westwego property owner, questioned whether the council would allow anyone else seeking a variance to offer money in an attempt to get approval.
"Basically you're saying that the variance is for sale for $100,000," Breaux said.
Marrocco stressed that the company developed the financial arrangement only after several city officials asked, "What's in it for the city?"
Ken Cantrell, who lives near the plant, said that despite the company's assurances, the new tanks would still be too close to residents under the city's laws. "It may be a safe product ... We had safe drilling in the Gulf of Mexico for 900 years, and we had a big explosion out there," Cantrell said.
But some said the diesel expansion was the lesser evil. Former Councilwoman Millie Adams initially opposed the expansion, but she submitted a letter Monday saying she supported storing diesel over any other chemical.
Resident Gregory Aicklen, who lives near the facility, agreed, saying some of the chemicals already stored at the plant are more dangerous than diesel fuel.
"I'm not for the expansion, but if they expand, I think diesel is safer than the other products," Aicklen said.
Allen Powell II can be reached at apowell@timespicayune.com or 504.826.3793.