By VICKIE JAMBON, Staff Reporter

LAPLACE – The Louisiana Airport Authority and the Canadian Commercial Corporation recently signed what’s known as a Protocol of Intent to proceed with a 25,300-acre Louisiana Transportation Center (LTC).

By signing the document, the two groups have agreed to work in a public/private capacity to develop the LTC on the Mississippi River between New Orleans and Baton Rouge.

The site, selected through the LTC Site Selection Study, more exactly places the development near the communities of White Castle, Donaldsonville and Belle Rose.

The LAA released a statement saying, “The complex will have access to air, highway, rail and water transportation systems and will be the ideal facility to accommodate the rapid growth in inter-modal freight transportation and e-commerce distribution activities.”

LAA officials went on to say that the concept is a cost-savings to companies that locate on site and has the potential to change the global lines of transportation with Louisiana at the forefront.

Original plans for the new multi-modal transportation facility date back 10 years.

The Canadian Commercial Corporation is introduced by the LAA as an organization created by the Canadian government to work in global market places to promote opportunities for Canadian businesses.

Canadian Commercial Corp. President J. Hugh O’Donnell said his company will look at studies prepared by the LAA and will also review independent assessments to access what is needed to proceed with plans for the LTC site.

O’Donnell said that by mid- to late September he will know the preparation work he will need to perform. He said his group would then take six months to get the preparation work ready.

The CCC president said, “We will go to the marketplace to seek investors. The state, the private sector and others may invest.”

O’Donnell later added, “Our formula is that – for every $1 million spent, 10,000 jobs will be created.”

LAA Chairman Glen Smith said the project would span out over 30 years and would end up costing $4.4 billion.

“The Canadian government endorsed the deal. O’Donnell is charged to go out and find projects for the airport. They will take top companies that apply and narrow them down,” said Smith.

Smith added that the state would contribute $88 million for the land acquisition stage, which is Phase I of the project.

“The state will put in money along a five year time span for the 25,000 acres,” said Smith.

He said the increased value of the land over the next 30 years would prove beneficial to the state’s interest.

LAA Executive Director Glenda Jeansonne recently said in a release that the state would see amazing returns in terms of new business development, jobs and taxes.

The agreement signed by the CCC and the LAA mentioned figures provided by a recent study.

The study performed in by Economist Dr. Loren Scott with Loren C. Scott & Associates of Baton Rouge states that the LTC has a potential to create more than 70,000 new jobs in 40 years.

Agreement claims goes on to quote Scott’s report when the document says the venture will create $46 billion in new household earnings for state citizens, $195 billion in new sales for state business and $2.5 billion in new state taxes.

Phase I of the project involves project preparation.

The CCC and interested Canadian companies, airport designers, builders and financiers will take the next six months to further review the LAA’s master plan and develop a time-line for implementation said the LAA.

Once this is complete, the parties will enter a project negotiation.

At this point, the two groups will discuss a mutually acceptable agreement for the Project Implementation Phase, which represents Phase II.

According to the LAA, the financial obligations of each party have not been worked out as of yet. SNC-Lavalin Inc. was selected by the CCC to build the future airport facility.

Karl Ray, SNC-Lavalin Executive Project Coordinator for the Airport Division, said his company has turned down many airports in the past. “The influence of the CCC made us take a second look,” said Ray.

Ray said his company, founded in 1911 and housed in Vancouver, is a good partner for the airport facility.

“We’re a whole basket of expertise. Our network is broad and dynamic. An airport is a port. It’s linked with the rest of the world. We make sure that happens,” said Ray.

Ray went on to say, “The LAA should be the landlord we should be the tenant. We believe the landlord-tenant relationship works best.”

What SNC-Lavalin means by this is that that their engineering and construction company will build the facility for the LAA and then proceed to lease the facility from them. SNC-Lavalin will lease the right to operate the airport’s runways and its port terminals.

“We are going to right-size the airport. We are not going to give you rooms for four children when you only want two children. You won’t spend money for what you don’t need. We are going to start small. We will build as you grow and as your needs develop,” said Ray.

O’Donnell, Smith and Ray said Gov. Kathleen Blanco endorsed the project on Aug. 18.

Thirteen new members were added to the LAA by Blanco on Aug. 16. They are Ross P. Barrett-congressional Dist. 4, Dr. Aubrey A. Baudeau Jr.-Jefferson Parish, Constance M. Beach-St. Tammany Parish, Riley L. Berthelot Jr.-West Baton Rouge Parish, Maurice Brown-Iberville Parish, Rita G. Bourque-Ascension Parish, Shelia Cunningham-At Large, David L. Guerry-East Baton Rouge Parish, Steven M. Joffrion Sr.- Ascension Parish, Leroy J. Labat-At Large, Harold P. Schexnayder Sr.-Iberville Parish, Janelle C. Simoneaux-Assumption Parish and Michael R. Suldo-At Large.