2019-0074
INTRODUCED BY: LARRY COCHRAN, PARISH PRESIDENT
(DEPARTMENT OF ECONOMIC DEVELOPMENT & TOURISM)
RESOLUTION NO.
Title
A resolution authorizing the St. Charles Parish Council to approve the Industrial Tax Exemption application for Diamond Green Diesel, LLC, Project ID: 20180432-ITE for participation in the Industrial Tax Exemption Program for a project at Valero’s Norco Refinery in Norco, Louisiana.
Body
WHEREAS, Article 7, Section 21(F) of the Louisiana Constitution provides for the Board of Commerce and Industry (“BCI”), with the approval of the Governor, to approve contracts for the exemption of ad valorem taxes of a new manufacturing establishment or an addition to an existing manufacturing establishment, on such terms and conditions as the board, with the approval of the Governor, deems in the best interest of the state; and,
WHEREAS, Diamond Green Diesel, LLC, a joint venture formed between Valero and Darling Ingredients, Inc. and operated by Valero St. Charles Refinery, is applying for an Industrial Tax Exemption (“ITE”) and seeks approval of the BCI and the Governor for a contract granting an exemption for a project at Valero’s Norco refinery; and,
WHEREAS, Governor Edwards, through Executive Orders JBE 16-26 and 16-73, has set forth the conditions for his approval of ITE contracts, and affirmed that those conditions are in the best interest of the State of Louisiana; and,
WHEREAS, the Executive Orders provide that ITE contracts should be premised upon job and payroll creation and retention at new or expanded manufacturing plants or establishments; and,
WHEREAS, rules promulgated by the Louisiana Department of Economic Development (LED) and adopted by BCI mandates parameters for ITE approval and requires local review and potential action or consent by the relevant Parish Council, School Board and Sheriff; and,
WHEREAS, the project described herein, along with other expansion projects occurring simultaneously, satisfy all parameters for ITE approval including new job and payroll creation while generating an estimated $40-50 Million in additional Ad Valorem taxes and an estimated $40 Million in additional Sales/Use Taxes to local taxing authorities during the ITE period; and,
WHEREAS, in addition to satisfying the minimum program requirements, Diamond Green Diesel, LLC and Valero Refining, as operator of the manufacturing facility, commit to executing supplemental local performance obligations which will increase employment and procurement opportunities for local residents and businesses, as well as promise to continue productive partnerships with our school system.
NOW, THEREFORE, BE IT RESOLVED, THAT WE, THE MEMBERS OF THE ST. CHARLES PARISH COUNCIL upon consideration of the foregoing and the public discussion held this day, support the application for Industrial Tax Exemption by Diamond Green Diesel, LLC for the project referenced herein.
BE IT FURTHER RESOLVED, that the St. Charles Parish Council strongly encourages the Louisiana Board of Commerce and Industry to approve the ITE application.
BE IT FURTHER RESOLVED, that a copy of this resolution shall be forwarded to Valero New Orleans Refinery, LLC, Louisiana Board of Commerce and Industry, LED, and Governor Edwards.
The foregoing resolution having been submitted to a vote, the vote thereon was as follows:
And the resolution was declared adopted this day of , 2019 to become effective five (5) days after publication in the Official Journal.
CHAIRMAN:_________________________________________
SECRETARY:________________________________________
DLVD/PARISH PRESIDENT:____________________________
APPROVED:______________ DISAPPROVED:_____________
PARISH PRESIDENT:_________________________________
RETD/SECRETARY:__________________________________
AT:_______________ RECD BY: ________________________