Meetings
 
Agenda Item
Docket No. 24-290
 
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RE:
Advisory Opinion request regarding whether the Code of Governmental Ethics ("Code") permits the Terrebonne Port Commission to purchase land from a company owned by Senator Michael Fesi.
Facts:
The Terrebonne Port Commission would like to purchase approximately 22 acres from Pipeline Construction Maintenance, Inc. ("PCM"). The property would be purchased at fair market value and then leased back to PCM at a rate comparable to the rates charged by the Port Commission to other tenants. The Port Commission plans to utilize DOTD's Port Priority Program to fund the purchase.



PCM is a construction company. The property is 22 acres. All they need is 10 acres. It is waterfront property very desirable to industry in this area. The port will lease the 10 acres to PCM and lease the remaining 12 acres to another company to be determined. This will create more jobs for our region.



Generally, Ports submit requests for port priority funds if they have a project that they are interested in. The request comes in the form of a detailed application that includes a lot of information from the tenant (in this case, it would be PCM) about their company. This includes past and future projects. The application also includes a commitment letter from the tenant. Once DOTD receives these applications (usually only 4 to 5 per year) they are ranked and submitted to the joint Transportation committee for approval. Once approved they are added to the current list of previously approved projects. The projects are funded under DOTD's HB2 request. Because there is a backlog of projects, DOTD allows ports to proceed under a reimbursement request provided that port priority guidelines are followed. The program allows a port to request up to $15 million per project. This funding will only pay 90% of construction. The design costs and 10% of construction must come from the Port and tenant. The program funds $5 million per year per port. DOTD administers the entire program for the state. The program is initiated by a notice to proceed letter from DOTD to the port. DOTD reviews and approves requests for fund disbursement by ports.



In order to do the Port Priority program, the Port must own the land. In this instance, The Port would buy the land from PCM at FMV, the project would be completed and then the property would be leased back to PCM.



PCM is currently owned by Michael Fesi. Mr. Fesi presently serves in the Louisiana Senate.

Law:
La. R.S. 42:1113D.(1)(a)(i) No person identified in Item (ii) of this Subparagraph or the spouse of such person nor any legal entity of a person shall enter into any contract with state government.

(ii) The provisions of this Subparagraph and other provisions which reference this Item shall apply to the following persons:

(aa) A legislator and any person who has been certified by the secretary of state as elected to the legislature.

Recommendations:
To be discussed at the meeting.
Assigned Attorney: Mallory Guillot
 
 
ATTACHMENTS:
Description:
2024-290 - AO