Orleans News

Sheriff, Port of South Louisiana face lawsuit over $4M tax waiver for failed grain terminal


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The Port of South Louisiana and St. John the Baptist Parish Sheriff Mike Tregre are going through a lawsuit that alleges they illegally forgave hundreds of thousands of {dollars} in taxes owed for a now-defunct grain terminal challenge.

The Descendants Venture, an advocacy group for the progeny of Black slaves within the River Parishes, filed the go well with Monday within the fortieth Judicial District Court docket in Edgard claiming the port and the sheriff violated a bit of the Louisiana Structure that prohibits the state or any political subdivisions from loaning or donating something of worth to any particular person, affiliation or company.

On this case, one of many issues of worth was a $4 million cost in lieu of property taxes (PILOT) that Greenfield LLC, an organization that deliberate to construct a $400 million industrial grain terminal in St. John Parish, was speculated to pay to Tregre’s workplace by way of a posh tax settlement. Nonetheless, the sheriff failed to gather the PILOT price and ultimately forgave the debt, the lawsuit claims.

An legal professional for the sheriff’s workplace didn’t instantly reply to a request for remark Monday.

In April 2022, Greenfield struck an settlement with the port and Tregre providing to switch possession of a tract of land to the port and supply the sheriff an preliminary $4 million PILOT for the primary yr after which $2 million per yr starting in 2025. Moreover, the port was supposed to gather a $300,000 administrative price from Greenfield and permit the corporate to “lease” the land. On the finish of the lease, the port would then give the land again to Greenfield in alternate for $1.

This may have allowed Greenfield to keep away from paying property taxes on the 248-acre website of the large grain terminal close to the small majority-Black neighborhood of Wallace, Louisiana.

The Descendants Venture’s lawsuit claims Greenfield would have prevented roughly $200 million in taxes over the size of its lease. The corporate ultimately deserted the challenge with out paying the charges, and the sheriff and the port ultimately forgave the funds, in line with the lawsuit.

“Right here, the monies owed by Greenfield to the Port and the Sheriff, and by extension the advert valorem tax recipients, are issues of worth,” the lawsuit alleges. “By forgiving or deferring cost of these monies with out requiring something in alternate, the Port and Sheriff are donating issues of worth to Greenfield.”

The Port of South Louisiana denied the allegations in a quick assertion Monday afternoon.

“Our crew is reviewing the lawsuit and we’re assured that Port of South Louisiana did no mistaken, and the courtroom will rule in [the port’s] favor,” port govt Micah Cormier stated in an e-mail.

The Descendants Venture has been concerned in litigation over totally different points of the previously proposed grain terminal for the final two years. When information of the PILOT settlement first broke again in 2022, the Descendants Venture challenged the corporate’s constructing permits on the native and federal ranges.

The group, cofounded by twin sisters Pleasure and Jo Banner, filed a federal lawsuit in opposition to St. John the Baptist Parish in November 2022, difficult a parish zoning ordinance that allowed trade to construct on what was as soon as a residential space.

The Banner sisters testified earlier than the United Nations that yr in regards to the danger industrial growth poses to unmarked slave burial websites of their neighborhood. Wallace, with a inhabitants of 755 and protecting an space of simply 6.4 sq. miles, is just about surrounded by heavy trade. Simply throughout the river is the third largest oil refinery within the nation. Extra petrochemical vegetation could be discovered close by in Reserve and LaPlace.

Trade studies claimed the St. John grain terminal challenge would have been the most important of its form constructed within the U.S. in 4 a long time.

Greenfield introduced in August 2024 that it was abandoning the challenge. The corporate blamed native opposition and federal allowing delays for its demise.

The U.S. Military Corps of Engineers prolonged its allow approval deadline for the grain terminal challenge 5 occasions because the firm’s preliminary utility in 2021, together with the newest delay that added one other six months to the method. The Corps’ considerations included the proposed facility’s potential hurt to historic websites alongside the Mississippi River.

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