EBR School Board approves new ExxonMobil ITEP request for potential ‘Innovation Suite’

UPDATE: On Thursday, Oct. 19 the East Baton Rouge Parish School Board approved the tax break for ExxonMobil 7-2.

BATON ROUGE, La. (WAFB) - ExxonMobil Corporation in Baton Rouge is seeking another tax exemption for what the company is calling a potential ‘Innovation Suite.’

It would be a $250 million dollar group of potential projects brought to East Baton Rouge Parish, related to advanced recycling to address plastic waste, and ultra-pure isopropyl alcohol to supply domestic microchip production.

“That could create hundreds of construction jobs, generate more than $20 million dollars in new and construction payroll, and these projects truly are innovative. They are beyond what you would typically expect from an energy company like ExxonMobil. It would give us the opportunity to bring new industries like the microchip manufacturing industries to Louisiana and attract additional capital investments to the Baton Rouge area,” said Dana Michell, Public & Government Affairs Advisor with Exxon Mobil Corporation.

ExxonMobil is the biggest taxpayer in East Baton Rouge Parish. It’s the company’s latest application for an industrial tax exemption, part of the ITEP program, which is really just an economic incentive to help attract capital investment to the area. However, none of these projects are ever 100% guaranteed.

“Louisiana really has a tremendous opportunity to be at the forefront of innovation. We have an opportunity to be a part of the emerging industry, the microchip manufacturing industry in Louisiana, and we have an opportunity to address plastic waste through advanced recycling facilities. There’s a tremendous opportunity to attract additional investment to the Capital area, beyond what ExxonMobil could even bring to the area,” said Michell.

With the Innovation Suite, ExxonMobil has committed to hiring 15 graduates from its North Baton Rouge Industrial Training Initiative, and about 80 construction jobs resulting in about $8.4 million in payroll according to Michell.

Because of changes made to the Industrial Tax Exemption Program back in 2016, ITEPs were granted as a 100% property tax deferral, and now it’s only an 80% property tax deferral.

That now requires additional levels of approval from the East Baton Rouge Parish Metro Council, the East Baton Rouge Parish School Board, and the East Baton Rouge Parish Sheriff.

“ITEP is needed to help Louisiana compete with other states, and in ExxonMobil’s case, other countries. There are future projects that have been canceled due to competitive costs, infrastructure, or economic policy. So ITEP really is needed to help keep Louisiana competitive,” said Michell.

But some people may have received a mass text from an organization called ‘Families for Fair Taxes,’ asking people to complete a survey on whether or not they’d like their school board member to vote yes or no, on Exxon’s exemption request.

“If these exemptions were so good for our school system, our children, then why are we in the situation we are in today,” questioned Edgar Cage, the interim lead organizer for ‘Together Baton Rouge.’

Cage is pushing back against this new exemption, citing the chaos at the beginning of the school year in East Baton Rouge Parish regarding the bus issues, and other major problems plaguing the school system.

“It’s not good for the kids in our school system, because if it was so good for economic development, why did they have to sit on an un-air-conditioned bus and ride three or four hours. Why are the bus drivers making only 18 thousand dollars a year, why are the schoolteachers are below the southern average, and we can’t keep the best and the brightest. But history is going to judge what’s going to happen Thursday. This is an opportunity for our school board to put the kids first, what they were elected to do, and what’s their job as school board members,” said Cage.

Officials with ExxonMobil say if the two projects here in the parish actually come to light, it would add roughly $13.5 million dollars in additional tax revenue over the next 20 years. The EBR School System would get about $3 million of that money.

“These projects will enter the final investment decision phase in 2024. And so, it’s important to recognize that ITEP is an important part in attracting investment into the Baton Rouge area, but by no means are these projects a guarantee,” said Michell.

However, folks like Cage need to see more of a return on investment from previous applications.

“If the school board had the monies that they had approved for these exemptions, we would not be in the situations we’re in now,” said Cage.

Officials confirm that members of the Metro Council approved the proposal a few weeks back at their meeting.

Sheriff Sid Gautreaux will make his decision after the EBR School Board decides on Thursday night.

The EBR School Board meeting will take place at the central office beginning at 5 p.m. Thursday.

Below is a statement with more details on the ‘Innovation Suite’ from ExxonMobil officials:

Click here to report a typo.