The Terrebonne Port Commission would like to purchase approximately 22 acres from Pipeline Construction Maintenance, Inc. ("PCM"), which is owned by Michael Fesi. Mr. Fesi currently serves in the Louisiana Senate.
The property would be purchased at fair market value, and then a portion of the property would be 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 Construction and Development Priority Program to fund the purchase.
The Port Construction and Development Priority Program was created by the Legislature in 1989. The purpose of this priority program is to allocate state funds to port projects that have the highest prospects of success as determined by objective standards such as technical and financial feasibility and overall impacts. A port authority must submit an application for consideration in order to be eligible for funding. These applications are reviewed, evaluated, and prioritized. As allowed by statute, DOTD contracts with the National Ports and Waterways Institute for assistance with the economic evaluation of these projects. The program requires a 10% cost participation from the ports based on the project's construction cost. Because there is a backlog of projects, DOTD allows ports to proceed under a reimbursement request, provided that port priority guidelines are followed.
There will be no contract between PCM and the DOTD. The purchase agreement and lease agreement will be between PCM and the Terrebonne Port Commission.
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