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Started By
Message
re: ExxonMobil withdraws ITEP requests, future Baton Rouge expansion in question
Posted on 1/22/19 at 6:09 pm to Dan
Posted on 1/22/19 at 6:09 pm to Dan
quote:
Baton Rouge and Louisiana and general need to figure out more consistent and thoughtful ways to bring new type of industry and business. Fortunately it really seems that they’re in a position where they have to take it up the butt on tax rebates in order to keep these energy giants around that keep the economy stable
ITEP has caused the state to be lazy and not have those discussions and changes.
0
Posted on 1/22/19 at 6:14 pm to MrLSU
quote:Yes, you read corporate mumbo jumbo very well....but TBR cant read a 1st grade book
Exxon just politely told Louisiana to go frick itself and "may" means in corporate speak "it will" reduce jobs, operations, and cut off all local contributions.
Posted on 1/22/19 at 6:18 pm to LSUFanHouston
quote:
We know that when the movie credit program was being jacked around, we lost a ton of those projects, and we know now that the program has settled in, that a lot of those projects have come back.
I'm not suggesting that total value of incentives is the single factor in site selection. However, LA is so far behind in so many other metrics, that it really can't afford to also be behind in incentives. No company is taking less incentive money to come to LA and also deal with our pathetic regulatory and tax structure.
It's less about ITEP and other incentives than the total cost of the project and the operating expenses over time. Raw material costs, labor rates, permitting, construction costs, etc all get rolled into Cost of Goods Manufactured (COGM) one way or another.
If there are zero incentives on the table from LA and the COGM are lower in LA than in Texas even with their incentives, LA will get the project. And they will still apply for the incentives in LA because why shouldn't they. That's free money.
We're talking about peanuts here on these specific ITEP applications.
I'm totally fine with giving away the farm for greenfield projects. That's when the incentives can make or break a deal and we should make sure we are ultra competitive with our peer states in those instances.
Unfortunately, in an even steven type scenario, TX will prolly beat us out. It's just a better environment to do business and easier to attract / retain talent.
Don't think that Industry doesn't also factor in the litigious reality we all live in here in LA. We can blame the trial lawyers for that.
This post was edited on 1/22/19 at 6:29 pm
Posted on 1/22/19 at 6:26 pm to topdollarbill
Posted on 1/22/19 at 6:34 pm to Modern
quote:
Looks like the Mayor finally realized what’s up LINK
Now, put on a smile and make a deal. And not a Joe Alleva deal!
Posted on 1/22/19 at 6:36 pm to wickowick
Exxon is a pro at the game.
Baton Rouge should have been negotiating hard privately for years instead of bending over backwards. Now that it's public it will be a shite show.
Baton Rouge should have been negotiating hard privately for years instead of bending over backwards. Now that it's public it will be a shite show.
Posted on 1/22/19 at 6:36 pm to wickowick
Expansion is still definitely happening though
Posted on 1/22/19 at 6:36 pm to PawnMaster
The Mayor can’t make a deal for the school board. They are separate taxing authorities and I’m not sure if EBR Parish School Board could change their vote even if they wanted to.
Posted on 1/22/19 at 6:51 pm to Four Leaf Tayback
quote:
Expansion is still definitely happening though
Shell had already secured many contracts, legal and logistical hurdles towards building the 20 billion dollar GTL expansion in Convent when poof! Here one day, gone the next. Might not be for the same reasons, but don't think these corporations commit to breaking ground on a sizeable project like you or I might decide to drop anchor and fish this spot for a while
Posted on 1/22/19 at 7:09 pm to teke184
Sometimes I think the only reason BR survives is old dudes still doing business there out of habit. When they retire and die off, I’m not sure what will keep the city afloat.
Posted on 1/22/19 at 7:16 pm to Four Leaf Tayback
quote:
Expansion is still definitely happening though
Even if they've spent $50M in up front costs, they'd walk away from that in a heartbeat to avoid making an even worse investment in the multiple hundreds of million dollars or the billion dollar range.
Until it is brought online, no expansion is definitely happening.
Posted on 1/22/19 at 7:17 pm to RidiculousHype
Big business like predictability. Biggest issue with this you can’t have business waste money on proposals with no benefit. If XOM wasn’t going to be approved why make them waste money on a proposal? Why did the school board reject them? Was it on the merits of the project or just because XoM was the requester?
Posted on 1/22/19 at 7:22 pm to Four Leaf Tayback
I wouldn’t be so sure. They have not gotten near the point of no return and could very easily take the current work for the expansion and shift it to Texas without any interruption in engineering
Posted on 1/22/19 at 7:28 pm to Cuz413
I think the Shell GTL cancellation had more to do with rising construction costs in the area due to the amount of then current construction and locked-in projects.
Posted on 1/22/19 at 7:28 pm to C
quote:
Why did the school board reject them? Was it on the merits of the project or just because XoM was the requester?
They are the new whipping boy. The school board has no clue what merits may be.
Posted on 1/22/19 at 7:32 pm to WildManGoose
quote:
I think the Shell GTL cancellation had more to do with rising construction costs in the area due to the amount of then current construction
I thought someone said earlier it was still much cheaper to expand in Louisiana because low cost of COGM? What makes the COGM so much cheaper than neighboring states?
Posted on 1/22/19 at 7:37 pm to WildManGoose
That and cost of Nat Gas. My point was money can be spent on engineering and long lead build ups and outside forces can cause these companies to idle or abandon major projects
Posted on 1/22/19 at 7:38 pm to Mudminnow
Shell has roughly 5000 acres in AP with no neighbors. When you already own the land it's an incentive to build on your property
Posted on 1/22/19 at 7:44 pm to Martini
quote:
The school board has no clue what merits may be.
I saw where some teachers were calling this a "win" and rejoicing over this money being funneled to the schools. Yet they forgot to mention who they submit grants to for funding for field trips, school supplies, and technology.
stem camp
grants
more grants
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