By ROBIN SHANNON

L’Observateur

CONVENT – The St. James Parish Council on Wednesday gave absolute final approval for the parish to issue $600 million in revenue bonds to help fund construction of the Nucor steel and iron facility planned for Convent.

The council approved issuance of Gulf Opportunity Zone Bonds through the parish, but at no expense to the parish. The bonds are part of a lucrative incentive package from Gov. Bobby Jindal’s administration that helped lure Nucor Corp. to the state.

Parish Bond Attorney Hugh Martin said the bond issuance was approved by the State Bond Commission in October but needed to go back before the parish council for final approval. He said St. James Parish would only serve as a vehicle for the bonds so they are essentially tax-free to the bond purchasers. Martin said Nucor is on the hook to repay the $600 million loan.

The bonds will finance construction of the first phase of the project, a $750 million direct reduced iron facility, which could begin construction within the next two years, pending acceptance of air and water quality permits from the Department of Environmental Quality. The facility uses natural gas to refine raw iron ore into pure iron by removing an assortment of contaminants through a heating and cooling process. The pure iron pellets are used in materials manufactured at Nucor steel mills across the country.

St. James Parish President Dale Hymel Jr. said the GO Zone bonds must be closed and delivered by Dec. 31.

In other action Wednesday, the parish accepted a donation from the Motiva Convent Refinery of about a tenth of an acre of land near the refinery to be used for improvements to the parish water system.

Parish spokeswoman Melissa Wilkins said the land would be the site for a water line booster pump, which will increase water pressure to surrounding residents and businesses in that area, part of the parish’s fourth district. The tract sits along Louisiana Highway 44 near Star Enterprise Road in Convent.

“Motiva is delighted to have been able to help St. James Parish address the water pressure issue in this way,” said Motiva Convent Refinery General Manager David Brignac. “Donating this small parcel of land made good sense for the parish and Motiva since we all benefit from the improvements to our water system.”

Wilkins said the parish will begin taking bids on the pump station project in November with a target date of December to begin construction. She said the project should be completed in about three months. The work is 100 percent funded through a $265,000 federal grant, which includes design, engineering and construction supplies.

The council also accepted a bid for lighting installation near the Veterans Memorial Bridge.

Sol Inc. of Florida submitted a $104,700 bid for the lighting project. Wilkins said it was the only bid received for the project.

The contractor is responsible for installing solar lighting along the Veterans Memorial Bridge approaching the east bank side of St. James Parish. The project is federally funded through an energy efficient grant. The target date for the project is the beginning of 2011.