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Lee County approves tax-sharing participation for Louisiana Energy Services’ $350M expansion
Summary
The commission approved Ordinance 108 to participate in a state gross-receipts tax sharing program for a Louisiana Energy Services expansion, described as a $350 million eligible project over 10 years that the company said would create about 40 jobs; the measure passed 4–1.
Lee County commissioners voted to approve Ordinance 108, authorizing the county to enter a participation agreement under the Local Economic Development Act with Louisiana Energy Services (referred to at the meeting as Yuranko). The presenter said the company is committing to a $350,000,000 expansion over a 10-year period that the company estimates will create roughly 40 new jobs in the community.
A representative for the company described the project as an expansion already under way in small phases and said the county’s action would allow the firm to participate in a state GRT (gross receipts tax) sharing program designed to support large capital projects. “We are asking to be able to participate in that program and provided a participation agreement to you guys to follow through the process,” the company representative said.
County staff clarified how the incentive would work. The staff presentation said the county currently collects 0.375% of GRT; under the proposed arrangement the county would abate roughly half of the applicable quarter-percent portion of that general‑fund share for the eligible portion of the project, which staff estimated at approximately $1.0–$1.2 million from the general fund (approximate figure provided by staff during the presentation).
The ordinance was moved and seconded on the floor. On the roll call vote, the commission approved the ordinance with four votes in favor and one vote against (Commissioner Sims opposed). No amendment was offered during the meeting.
Why it matters: The ordinance commits the county to a GRT-sharing arrangement tied to a private capital expansion. The action reduces anticipated county general‑fund GRT receipts for the period of the participation agreement in exchange for the company’s stated capital investment and projected jobs. Commissioners said they had been reviewing the project for months prior to the vote and that the state’s program shares a majority of the tax benefit with the state rather than the county.
What remains: The approval authorizes participation and does not, by itself, obligate additional county cash beyond the abatement; the county and company will proceed with the participation agreement and related intergovernmental documentation.
