– The St. Martin Economic Development Authority is taking advantage of state tax breaks to draw new businesses to the parish, Executive Director Jennifer Stelly told the St. Martin Parish Council’s Administrative and Finance Committee at this past Tuesday’s committee meetings.
Stelly explained the Industrial Tax Exemption Program after Arrow Aviation was approved by the Louisiana Board of Commerce and Industry Louisiana Board of Commerce and Industry for its Industrial Ad Valorem Tax Exemption Program.
ITEP provides an 80 percent abatement of all ad valorem taxes for a new company moving into a parish or an existing company doing an expansion, for that investment.
“They don’t take away any of the taxes they’re already paying, it’s only on the new investment,” Stelly said.
Taxes for a milliondollar investment would be $100,000, she said as an example, but the abatement of 80 percent means the company would pay $20,000 in ad valorem taxes annually.
“This is a really good tool for St. Martin Parish as far as economic development goes,” Stelly said. “We don’t have any parish incentives (or) local incentives that we can offer anybody, and we compete against big entities like Lafayette Parish who have a lot of money to throw at projects. It’s really good for me to be able to go into a meeting with somebody and say we’re ITEP friendly here in St. Martin Parish and never turn them down, because when it comes down to the bottom line, it really matters.
Tax
Before 2018, the abatement was 100 percent and parishes received no taxes for programs approved for ITEP.
Gov. Jeff Landry introduced an executive order in 2024 when he took office that reduced ITEP to 80 percent and allowed for all taxing entities in a parish — parish council, school board, parish sheriff and municipal government, if the work is located in a city — that have a stake in the matter to have a vote whether to approve the exemption. If approved, the government entity would collect 20 percent of what it normally would in taxes. If not approved, the full 100 percent would be collected by that governing body.
Each body could approve or not approve the exemption, and the company would then decide whether to make the investment or not.
Arrow Aviation has been in the parish a very long time, Stelly said, and makes consistent investments every five years or so.
This investment is a $1.2 million investment, Stelly said.
Tauzin said that the abatement is offset by the increase in economic activity for the company in the parish, and the offset only applies to the new investment.
Tauzin said that all three parish presidents he’s worked with as a parish councilman agree that the ITEP program is a good economic driver and a good investment because of the jobs that are created.
“So it really is a good economic driver for Jennifer to be able to use this, and there’s some stipulations put in there for them to be able to use this,” he said. “They have to maintain a certain amount of employees on some of them.
“I support it. I think it’s a good idea. I think we should do it when it’s available because we’re not losing that tax base, all we’re doing is giving a tax incentive for them to come here and do business here instead of going to Lafayette or Broussard or Youngsville.”
The tax abatement is for five years with an option for the company to extend it for five more years, on a depreciating basis, Stelly said.
No taxes on property or inventory are included in the abatement program, she added. The abatement applies only to building materials and machinery equipment. There is a jobs requirement tied to the ITEP, so if the company falls below the number of jobs or salaries provided requirements, it would be removed from the program or have to get permission from the state to continue in the program.
The governor’s executive order, recently clarified, also removes the need for individual councils to approve the exemptions and giving final say to the governor, with a committee comprised of representatives from the parish council (preferably the parish president), school board (preferably the superintendent), the sheriff and parish economic development head.
Public Works
Johnny Moyer of Optimum Cable and Internet Service made a presentation to the Public Works Committee about his company’s plans to construct a network to provide service in the parish.
Moyer gave a similar presentation at St. Martinville’s City Council meeting on Monday as the company plans to make St. Martinville the first city in the parish to which Optimum provides service.
Moyer said he’d like to see his company begin applying for permits from the parish as soon as possible.
“We will likely complete the full construction by the end of the year,” Moyer said.
Parish President Pete Delcambre said parish attorney Lee Durio would look over the preliminary contracts and when everyone is in agreement, the process can move forward.
District 2 Councilwoman Carla Jean-Batiste reported to the Public Works Committee that work on La. 182 in the parish has been going smoothly but continuing roadwork on La. 92 (Smede Highway) in front of ESA is leading to slow traffic in the area.
“Once completion of that we’ll have some better roads for a long overdue project,” she said.
Delcambre said that Petroleum Parkway work goes to bid next month. The parish will work to make sure road access is available for both the La. 92-1 and Petroleum Parkway projects.
Tauzin reported that U.S. Army Corps of Engineers Col. Cullen Jones, the New Orleans District commander, moved a project for clearing snagging of trees and silting of Bayou Teche from the Keystone Locks to Arnaudville to the top of the list of projects in the district and got funding for it.
Tauzin said the project will start in about 2 1/2 months.
“The worst areas of it were from just past St. Martinville to the Keystone Locks,” Tauzin said. “St. Martinville going to Parks isn’t real bad, but when you get from Breaux Bridge to the Interstate it’s kind of bad. When you get from there going back, it’s really, really bad, the worst area being Poche Bridge to the Cecilia area.”
Tauzin said the Teche-Vermilion Fresh Water District approved an $8.4 million project to replace the Ruth Bridge structure and nearby locks south of Breaux Bridge.
“So that’s two big projects that are going to be getting done in the Bayou Teche area,” he said. “I just wanted everyone to know what’s going on. It’s very helpful to our communities.”
In other business
Delcambre and the council recognized the work that parish tourism director Laci Laperouse did for the state’s annual Pardoning of the Crawfish, which was held in St. Martin Parish for the third straight year.
Lt. Gov. Billy Nungesser pardoned Huval the Crawfish on March 11 in Henderson, honoring the Huval family.
The previous two years’ pardonings were in Breaux Bridge.
In answer to a question from JeanBatiste regarding the parish council considering an agreement with Cajun Rush Soccer Program to run a recreational league in St. Martin Parish, Delcambre said he feels comfortable with the council moving forward with the agreement.
Delcambre also said that the list of roads to be worked on this year has been narrowed down and presented to council members for their input, and said the parish has an additional $700,000$800,000 available in addition to what has been budgeted, and work should be able to start quickly once engineering reports are completed.
