Proposed food co-op, City Park splash park are among projects affected
The State Bond Commission approved low-cost bonds Thursday to support industrial expansions in the River Parishes and removed $22 million worth of projects from the state's construction budget to make way for an incentive package for a Nucor Corp. iron plant near Convent.
View full sizeThe Nucor site in Convent was photographed in September. Among the New Orleans area projects put on the back burner were a proposed food co-op on St. Claude Avenue, an Audubon Zoo exhibit, a City Park splash park and drainage improvements.
Valero Energy Corp. got final permission to issue up to $300 million in low-interest Gulf Opportunity Zone bonds to support the construction of a hydrocracker unit and other improvements at its St. Charles Parish refinery.
Nucor Steel Louisiana, a division of the Charlotte, N.C., steel giant, received approval to issue up to $600 million in GO Zone bonds, which were authorized by Congress after Hurricane Katrina to assist business recovery in the storm-affected region.
In other action related to the Nucor project, the bond commission adjusted the line-up of projects expecting money through the state's capital outlay budget this fiscal year. Gov. Bobby Jindal's administration made a deal with Nucor to provide incentives including money for the acquisition and improvements for the St. James Parish plant site. Jindal designated $30 million of those incentives to flow from the state's construction projects budget.
After accounting for other recent changes in the budget, about $22 million worth of projects had to be sidelined to make room for the Nucor incentive cash. The bond commission agreed Thursday to remove 118 projects from the capital outlay budget. The largest were a $2.7 million payment for an animal-disease diagnostic lab in Baton Rouge and a $2.5 million allocation to the Audubon Institute.
The Audubon money was for a new elephant exhibit at the zoo. A separate request to finance a new elephant barn was not affected. Institute spokeswoman Sarah Burnette said it appears the work would be delayed.
The proposed New Orleans Food Co-op, which would be based in the New Orleans Healing Center on St. Claude Avenue, will lose $375,000 in capital outlay money for grocery store equipment. State officials said they need to review the project's plan regarding who would own the equipment to make sure it meets the state rules.
Co-op President Michael Smith said he plans to meet with administration officials next week to discuss alternate financing. The for-profit business had hoped to open the $1.8 million store in March 2011.
Department of Economic Development Secretary Stephen Moret said the Nucor incentives are a good investment. The Nucor plant will employ 150 workers in its first phase and could expand in five phases to 1,250 employees.
Some lawmakers expressed concern that Moret could have drawn money for Nucor out of some other pot of economic development cash. Moret said the state's mega-projects development fund contains $55.5 million of unobligated funds plus money that could be used as an incentive for a car plant in Monroe if the company obtains financing to move forward.
The department also has $11.2 million in a rapid response fund and $80 million in federal recovery dollars that he wants to keep available for potential projects that could announce expansions of 500 to 2,000 jobs each in the near future.
Other trimmed projects in Orleans Parish included $1.3 million for a splash park and tennis center upgrades at City Park, a $125,000 University of New Orleans Science Building renovation, $50,000 for Louisiana Children's Museum Early Learning Village, $175,000 for a Jazz and Heritage Center renovation and addition, $225,000 for an eastern New Orleans walking and bike trail, $25,000 for a Treme community program for work on the Leverette Senior House, $250,000 for work on the Irish Channel St. Andrew Street Elderly Resource Center and $100,000 for construction of the Milne Boys Home in Gentilly.
In Jefferson Parish, about $1 million in various drainage programs were cut along with $125,000 for improvements to the Wally Pontiff Jr. facility, $500,000 the Cultural Center for the Arts in Gretna, $250,000 for a Lafitte Seafood Festival Pavilion, $285,000 in various equipment requests by the Gretna Police Department and $200,000 for the Avondale Booster Club and playground upgrades.
St. Tammany Parish lost $150,000 for Camp Salmen improvements and $80,000 for equipment for the Northshore Harbor Center. Plaquemines Parish lost $75,000 toward a sports complex.