NuStar endorsed for tax break from parish council

Published 12:00 am Wednesday, December 14, 2011

By ROBIN SHANNON

L’Observateur

CONVENT – The St. James Parish Council voted Wednesday to endorse NuStar Logistics’ participation in a statewide economic development program that will allow the firm to take advantage of a sales tax rebate during construction of an expansion at its St. James crude oil storage facility.

NuStar’s participation in the Louisiana Enterprise Zone Quality Jobs Program allows for a 50 percent rebate of local sales and use taxes during the next phase of expansion at the west bank tank farm complex, a three-year, $3.2 million project.

The council approved a similar resolution earlier this year that involved Nucor Corp., which has started construction on a $750 million direct reduced iron facility, the first phase of a five-phase iron and steel manufacturing complex in Convent.

In other action, the council approved an ordinance that authorizes the transfer of property to the parish from Nucor as part of a cooperative endeavor agreement between the parish, the state and the steel-manufacturing firm. Parish President Dale Hymel said the land exchange is part of the tax incentive plan that helped attract Nucor’s new manufacturing facility to the region.

The council voted to introduce a new ordinance that would allow the parish to purchase about 116 acres of land on the west bank of the parish from the Bayou Cevreuil Land Co. to be used for wetland mitigation credits. The plot of land is located on the south side of Louisiana Highway 3127 near Lac des Allemands.

Hymel said the parish would use about $600,000 from the state’s capital outlay program to purchase the property. He said the land would be used in wetland assimilation and restoration programs in the coming year. This is the fifth such land purchase made by the parish in recent years, bringing the total to about 800 acres.

The council also approved a resolution allowing the parish to seek bids for renovations and repairs to the parish courthouse. Hymel said the parish is looking to renovate Courtroom B and the old council chambers on the second floor of the courthouse. He said the parish wants to add offices on the second and third floors of the building. The budget for the project is about $580,000.

Finally, the council approved a resolution to allow the parish to seek bids for the 2012 parishwide road improvement program. The parish has $1.15 million in the 2012 budget for street improvements and asphalt overlays for 10 streets that will be included in the program.

Hymel said each year parish public works crews conduct a review of every street in the parish to rate them on the level of deterioration. He said the streets are divided into four categories based on the level of work that needs to be done. Hymel said the work crews look at traffic congestion, street flooding and other problems that may cause damage when analyzing parish streets.

Streets selected for the program include Dey Say Street in District 2, South Angelle Street and Admiral’s Landing Street in District 3, Martin Street and Rev. Thomas Scott Street in District 4, Back Quarters Street, North Rosary Street and Harry Lane in District 6 and Fern Street in District 7.