Joint Transportation Committee defers decision on Belle Chasse CPI buy‑down invoice after members raise objections to using liquidated‑damages funds

Joe Donahue, secretary of the Louisiana Department of Transportation and Development, presented a packet and an invoice from Plenary Infrastructure seeking payment related to the CPI buy‑down in the Belle Chasse public‑private partnership contract. Donahue said the invoice calculation reflects the contractual mechanism to subsidize a lower toll rate for local residents and that Act 73 of the 2024 regular session directs proceeds generated from the Belle Chasse project to certain listed uses, one of which includes the CPI buy‑down.

Donahue told the committee that Treasury had received $3,555,000 in liquidated damages to date; $450,000 had been invoiced but not yet received; and an additional $1,490,000 was expected if the project met its currently anticipated final acceptance schedule, producing a total estimated liquidated‑damages pool of $5,495,000. He said the invoice at issue—the contractual CPI buy‑down payment to Plenary—was for approximately $1,100,000 and that the contract allows payment from the Belle Chasse escrow established for windfall proceeds and liquidated damages.

Several members, led by Representative Breaux and other West Bank legislators, objected to using liquidated‑damages money—funds that accrued because the developer failed to meet contractual deadlines—to pay the contractor for a CPI subsidy. Representative Breaux said constituents expected liquidated damages to fund alternative local facilities such as improvements to Woodland Highway or Peters Road. He asked that the committee defer a decision while DOTD explores other funding sources (Transportation Trust Fund or general fund) and requests an extension from Plenary. Other members raised concerns about contract terms, the role of outside counsel (Nossaman LLP), tolling rollout problems with the GoPass system, and whether Plenary might continue depositing anticipated LDs if payment was not made.

Donahue said the CPI buy‑down payment is a contractual obligation and that, under the contract and the statute, funds in the Belle Chasse escrow (held at Hancock Bank) can be used to pay the buy‑down. He agreed to request an extension from Plenary and to continue discussions with the developer. After discussion, Chairman Connick and Representative Breaux moved to defer action; the motion to defer was made on the record and carried with no objections noted on the audio record.

Committee members asked DOTD for additional budget and funding analyses and urged staff to consult outside counsel and to seek more information from Plenary about the invoice, its requested due date (correspondence cited July 3, the contract requires payment within 30 days of invoice), and whether an extension would be possible. Donahue said DOTD would continue to engage with Plenary and provide follow‑up information to the committee.