Statement
Last year, LED positioned the State of Louisiana as a strong candidate for the joint-venture plant proposed by Toyota and Mazda. Though that final site selection has occurred in Alabama, we believe we’ve built a strong case for future automotive manufacturing projects to locate in Louisiana. From the former GM site in Shreveport to the Franklin Farm site in Richland Parish to England Airpark in Rapides Parish and other locations across the state, LED will continue to put Louisiana’s best foot forward in site selection competitions for proposed automotive assembly centers and their suppliers. With the nation’s most productive manufacturing workforce and No. 1 state workforce training program, Louisiana can make a compelling case for new investment. We’ve learned much from this and prior engagements with automotive executives and site-selectors.
Louisiana proposed a smart incentive offer that would have guaranteed strong return on investment for the state and a beneficial operating environment for the prospect companies. Our total package included a land acquisition and site preparation fund ($110 million); the Competitive Projects Payroll Incentive Program, an enhanced version of the Quality Jobs Program for highly competitive projects ($173.1 million over 10 years); a facility training grant ($35 million); the comprehensive workforce services of LED FastStart®, the nation’s No. 1 state workforce training program (no cost to the client, but estimated to have a $46.8 million replacement value if services were purchased on the private market); a PILOT, Payment In Lieu Of Taxes agreement, or Industrial Tax Exemption Program abatement (estimated value of $90.6 million); a flexible performance-based grant for building machinery, equipment and land acquisition ($25 million); and a performance-based grant to assist in establishing a mixed-use development with amenities serving the project site and region ($20 million). At an estimated $500.5 million in total value, we believe the package is comparable to the state offer in Alabama, where officials apparently have not included the value of their local property tax exemptions or the value of 1,200 acres of donated land for the site, which all would be in addition to their reported $380 million state offer.
As a project with a very rapid timetable, the joint venture by Toyota and Mazda likely was destined for a state and a site featuring a concentration of existing automotive industry infrastructure. Toyota already operates an engine production facility in Huntsville and we surmise that asset (which dates back to the early 2000s) provided a strong selling point to project leaders. Nevertheless, worldwide automotive production is surpassing 90 million units annually, and there are more innovative trends afoot in this industry than we have seen in our lifetimes. We will re-examine the strategic investments in training and infrastructure that Louisiana needs to be a player in this industry. Through this process, and by working in partnership with our state, regional and local leaders, LED will redouble our efforts to attract automotive investment and jobs to our state.
— LED Secretary Don Pierson
