EPPJ sides with industrial board and PPE

The Evangeline Parish Police Jury voted to support the Evangeline Parish Industrial Development Board, which, during a board meeting April 3, formally joined plaintiff Pine Prairie Energy (PPE).

PPE filed suit in January against the parish tax collector and assessor’s offices, seeking repayment, with interest, of nearly $1.45 million the energy storage facility paid “under protest” in ad valorem property taxes.

The taxes were paid after an attorney representing the tax assessor’s office made a determination that a “memorandum of understanding” (MOU) between the parish’s industrial development board, the parish police jury and PPE, exempting the facility from paying the taxes, was unconstitutional. PPE is also asking for legal reaffirmation of the MOU.

The MOU, issued about seven years ago, stated the facility would be excused from paying ad valorem property taxes for 15 years, as an incentive to locate in the parish.

No court date has been set, but the case will be heard in the 13th Judicial District Court, with Judge Thomas Fusilier presiding.

Dr. Tojo Ward, chairman of the Evangeline Parish Industrial Development Board and chairman of the Acadiana Economic Development Council, spoke to the parish police jury during a special meeting Wednesday, April 17. The “letter of guarantee,” of support for the industrial development board, dated April 10, was the only item on the agenda.

The industrial development board formally joined with PPE during a meeting of the board April 3. Ward said PPE is paying legal expenses. Attorneys representing PPE attended the special police jury meeting Wednesday.

Ward said the tax assessor’s legal challenge to the MOU has created a “dark cloud of uncertainty,” over the parish’s ability to attract industry.

He said the prospect of a court battle is particularly troubling because just under a year ago, the Evangeline Parish Industrial Park became the second Cleco SmartSite in the state. The designation was expected to make the industrial park more attractive because industries wouldn’t have to spend the time and money on environmental and other tests that would otherwise be necessary to move there.

Juror Eric Soileau, who was police jury president when he spoke at the SmartSite announcement ceremony on May 2, 2012, said, at Wednesday’s police jury meeting, the legal issue over taxes is a “serious black eye,” to efforts to encourage new industries to locate in the parish.

Juror Lamar Johnson, who represents the Easton community where the natural gas storage facility is located, said $11 million in sales tax has come from the facility.

During a police jury meeting about the lawsuit earlier this year, Ward said PPE has also provided $3.75 million to Pine Prairie schools “as a gift,” and $300,000 to improve police and fire interests in the area.

He said the facility is “one of the largest, if not the largest” natural gas storage facilities in the nation. When the facility was built, natural gas was expected to be stored in three underground caverns. Natural gas is now stored in five caverns, and there are 12 to 15 more caverns where natural gas can be stored there, Ward said.