Opponents of Hyundai’s planned $5.8 billion Ascension Parish steel mill this week urged state financing officials to halt a proposed $900 million tax-exempt bond issue.
The pushback came during a public hearing Monday held by the Louisiana Public Facilities Authority on plans to issue up to $900 million in exempt-facility revenue bonds on behalf of Hyundai-POSCO Louisiana Steel.
The proceeds would finance or reimburse costs associated with constructing and equipping portions of Hyundai’s mill. The tax-exempt structure could allow Hyundai to borrow at a lower interest rate than it would through conventional taxable borrowing.
The bonds, according to LPFA, would not constitute debt of LPFA or the state and would be secured solely by payments from Hyundai.
Much of Monday’s roughly 40-minute hearing focused on concerns about the amount of public support being directed toward the project, the transparency of the process and how the project might impact the environment and nearby residents.
Anne Rolfes, director of the Louisiana Bucket Brigade, noted that notice of Monday’s hearing was posted Sept. 3, just 11 days before it was held.
“I think, by any measure, that is not a reasonable opportunity to really understand that $900 million bond. … This whole process of funding Hyundai has been piecemeal and it has been hidden,” Rolfes said.
One Ascension Parish resident argued that the state and parish have already assumed enough financial responsibility for Hyundai and other development at the RiverPlex MegaPark.
“I’m going to say no to paying for anything else to Hyundai because we’ve already committed more than enough funds,” the resident said.
Corinne Gibb, who described herself as a chemist studying industrial pollution in Ascension Parish, argued that Hyundai’s mill would raise the local level of pollution to an “unbelievable standard.”
“A steel refinery is not a green project and there is no governmental bond that should sponsor pollution from a steel refinery,” Gibb said.
Others raised concerns about displacement and whether the jobs promised by Hyundai would ultimately benefit residents of nearby communities.
“People are being approached and being asked to sell their homes at pennies on dollars,” one resident said. “These are places where ancestors have committed their lives to. We’ve got to be a little bit more human when it comes to making these decisions.”
No speakers expressed support for the bond issue.
LPFA Vice President Martin Walke said the authority initially granted preliminary approval for the financing in January and amended that approval in July and again in September. Public comments from Monday’s hearing will be submitted to LPFA’s board of trustees as part of the formal approval process.
The proposal is scheduled to go before the Louisiana State Bond Commission on Thursday. It would then return to LPFA for final approval at a later date.
