Activists sue Sheriff, Port of South Louisiana over controversial grain terminal tax payments

Published 1:55 pm Sunday, January 19, 2025

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An environmental justice group has filed a lawsuit against the Port of South Louisiana and St. John the Baptist Parish Sheriff Mike Tregre over unpaid taxes that amount to “gratuitous donations” to a company that planned to build a grain elevator in the area.

The Descendants Project, a non-profit based in St. John the Baptist Parish, argues in the suit filed last week in the 40th Judicial District Court in Edgard that Greenfield Louisiana LLC never paid the millions it owed in taxes to the sheriff’s department and the port.

Greenfield argues it has paid all property taxes due to Tregre’s office as required under the most recent agreements with the sheriff and the port. The attorney representing Tregre did not immediately respond to a request for comment. 

The company planned to build a grain elevator in Wallace, a majority-Black town in the parish’s West Bank. In 2021, the company purchased a $40 million property for the project, which is estimated to generate over $300 million in new tax revenue. 

But last summer, Greenfield canceled the project in a surprise announcement that drew praise from activists and criticism from business leaders and some politicians. 

The company attributed the decision to lawsuits from The Descendants Project and permitting delays. Due to its cultural and agricultural importance, the area was considered a site for National Historic Landmark status.

“As a result of multiple unfounded lawsuits filed by the Descendants Project, Greenfield was compelled to halt all progress of the proposed $600 million grain export facility in Wallace, Louisiana,” Lynda Van Davis, counsel for the company, said in a statement. “The decision to cancel the project was heartbreaking, especially after investing millions into planning a sustainable, state-of-the-art facility.”

The current lawsuit arises from a 2022 contract Greenfield entered into with the sheriff and the port. The contract was a “payment in lieu of tax agreement,” or PILOT, a developer tax incentive. 

Under this agreement, Greenfield sold its $40 million property for free to the port, which then leased the same property back to Greenfield. As a public entity, the port is exempt from most property taxes. 

Greenfield was responsible for certain payments to the port and the sheriff: 

  • $4 million to the sheriff in a one-time payment 
  • $300,000 annually to the Port 
  • $200,000 annually to the Port

The company was also responsible for paying the sheriff an annual $2 million once the terminal took off or beginning in 2025, whichever came first. However, according to the lawsuit, Greenfield never paid the reduced amounts required under the agreement. 

“Each year when the money comes due or is about to come due, the Port and the Sheriff forgive Greenfield’s failure to pay and extend the deadline to begin paying,” the lawsuit states. 

It alleges that this amounts to a gratuitous donation, illegal under state law, “because the Sheriff and the Port gave Greenfield something of value—deferral of a debt—in exchange for nothing.” 

The company, port, and sheriff signed a breakup agreement in December. Under this agreement, Greenfield paid $500,000 as a termination fee and $87,000 to the sheriff. This contract ended the PILOT, canceled other payments, and returned the property to Greenfield. 

The Descendants Project seeks to void the breakup agreement and past contracts that forgive Greenfield for missing deadlines. They also request that the judge stop the port and sheriff from making further “gratuitous donations” during the lawsuit.

While the grain elevator project is canceled, Greenfield’s role in the future of the land is unclear. 

“Today, Greenfield remains committed to exploring alternative plans to enhance the economic vitality of Wallace,” Van Davis said.