Evangeline Parish Police Jury approves Cabot tax exemption

By a vote of 8-1, the Evangeline Parish Police Jury granted Cabot Corporation’s request for an industrial tax exemption program (ITEP) at a special meeting held Wednesday, April 14.
The lone vote in opposition came from Juror Sidney Fontenot. “We are in a financial bind with the parish, the courthouse, and the prison that we need to build,” he said. “Money we’re giving up is money well needed, and everybody needs to understand that. We do need what we’re trying to get. If we give this tax back to Cabot, can we go next year and ask the public to vote for another tax, will the public vote for it? I’m afraid we won’t be able to.”
Making the motion to grant the approval was Juror Bryan Vidrine who acknowledged it was a tough decision “because we need more money.” He went on to say, however, “Cabot has been a good steward of the parish and would like to do some things that will benefit the parish tremendously.”
In his motion, Vidrine proposed adding a language in the resolution that would allow the Board of Industry and Commerce to send the renewal application back to the police jury after the first five-year period.
Juror Kevin Veillon seconded the motion and stated, “I think that’s very fair.”
Cabot Facility Manager Derek Turner, after speaking with executive counsel from Louisiana Economic Development, assured the police jury that if it requests “to see this again in five years then the board would honor that and send it back.”
Turner submitted a letter to be included with the resolution stating Cabot’s position in agreeing with the police jury’s request. He expressed his supervisors have given their approval that the request be made part of the contract.
Police Jury President Ryan “LeDay” Williams still voiced some hesitation based on differences of opinions given to the police jury concerning the renewal process. “A lot of different things are being floated around,” he said.
Turner went on to read from the administrative code pertaining to ITEP renewal contracts that says the board “shall have the option of submitting a board approved renewal application to the local government entities for approval in accordance with the procedures for approval of the initial exemption contract.”
Police Jury Attorney Chris Ludeau commented it is his understanding the letter from Cabot “is an integral part of the contract” because it is something “everyone is agreeing to be bound by.”
He went on to say the board is “bound to what the initial contract terms are.”
Juror Eric Soileau, who had been on the fence on the issue of the exemption request, said many of his constituents felt the 10-year exemption period was too long and that it “created heartburn for a lot of” them.
“When I explain this and (Cabot’s) willingness to work with the parish,” he said, “I think they’ll understand.”
Turner, along with Cabot certified public accountant John Vidrine, presented new findings based on new rules governing ITEPs since Governor John Bel Edwards’ changes in 2016. Turner explained “of the $6.7 million (which about half is from the police jury) that we’re asking for, you’re actually going to get back about $2 million because of the ITEP changes.”
Based on those figures, it is about $1 million a year difference in what the police jury is giving up compared to what it will be receiving. That equates to around $100 thousand a month, if the whole 10-year exemption is granted.
Soileau, again, said it was a difficult decision to make but voiced his concerns for the workers at Cabot who could be affected by the police jury’s decision. He said, “It scares the hell out of me if something would go wrong,” he said. “In today’s economy and job market, where would they go to get that kind of employment? On one hand, we don’t get something, but we gain on the other hand.”
The Evangeline Parish School Board will vote on the issue at its meeting held Wednesday, April 21. Sheriff Charles Guillory will make his decision on Tuesday, April 27. If only the police jury grants the exemption, then Cabot would only be exempted from paying that share of the taxes in question.