Fertilizer company calls off plans for Jefferson Parish plant
11th December 2023 · 0 Comments
By Wesley Muller
Contributing Writer
(lailluminator.com) — A Texas fertilizer company announced early last weel it has halted its plans to build an ammonia plant in Jefferson Parish. The decision came one day before local officials were going to vote on the company’s request for a multi-million dollar tax break that would have helped subsidize the project.
APF River Partners, the local entity for the Texas-based American Plant Food Co., proposed the Cornerstone Chemical facility along the Mississippi River in Waggaman to manufacture ammonia fertilizers for industrial-scale farms.
The project faced immense public pushback from residents critical of its environmental risks and the company’s repeated waffling on an initial promise to bring more than 100 high-paying jobs to the community.
APF Chief Operating Officer Jerry Bilicek attributed the decision to pause the project to “several global economic and political factors” and said the project could be revived at a future date.
“Over the last 10 months, global political unrest and inflation have increased both the risk and the cost of capital for our project,” Bilicek said in a statement. “… We hope that project financials and economic conditions improve, and we can restart the project in the future.”
Early on Tuesday (Dec. 5), APF notified state and local officials it was withdrawing its application for a $3.6 million annual property tax break under the state’s Industrial Tax Exemption Program (ITEP). Louisiana’s ITEP offers industrial manufacturers huge exemptions on property taxes, which local governments rely on to pay for things such as public schools, drainage, roads, law enforcement and other public services.
Last year, APF initially said it would create more than 100 full-time jobs at the new plant with an average salary of $120,000. It would have totaled a hefty $12 million annual payroll.
Earlier this year, APF began changing the number of promised jobs and did so at least three times. In each case, the number was significantly lower than the initial 100 positions, and projected salaries fell by nearly half, according to records filed with state regulators.
The most recent change came in October when the company promised the state Board of Commerce and Industry it would create just 13 full-time positions.
Despite public criticism over APF’s changing promises, the Board of Commerce unanimously approved the company’s $3.6 million first-year ITEP application and referred it for local review with Jefferson Parish’s council, school board and sheriff.
Jefferson Parish resident Lisa Karlin, who joined with other residents in lobbying the council and school board members to oppose the project, said both entities were likely aligned to reject the company’s tax break.
Karlin said she believes APF found out it would be a close vote and decided to pause its project and hope for more favorable circumstances under the incoming administration of Gov.-elect Jeff Landry. The incoming governor has not provided details on whether he will retain the ITEP local review rules that Gov. John Bel Edwards put in place with an executive order.
Louisiana Economic Development spokesperson Ron Thibodeaux said APF would have to file new paperwork and go through the application process again if the company wants to revive its project in the future.
This article originally published in the December 11, 2023 print edition of The Louisiana Weekly newspaper.
