Jindal’s Solyndra? Monday, Jun 18 2012
1 7:00 am
How’s he explain this?
On July 13, 2010, Bobby Jindal announced that Globalstar would move its headquarters from California to St. Tammany Parish.
LED committed to provide Globalstar with a performance-based grant of $4.4 million to reimburse expected relocation costs, as well as $3.7 million in performance based incentives to offset facility costs for Globalstar’s new headquarters and research and development operations in Covington. Jindal Press Release July 13, 2010.
Globalstar has committed to relocate or create more than 150 new jobs by the end of 2011, increasing to more than 200 new jobs by 2013. Additionally, the agreement calls for Globalstar’s total Louisiana employment to increase by more than 500 by the end of 2019. LED further estimates that the Globalstar project will result in $26.1 million in new state tax revenue and $8.3 million in new local tax revenue over the next 10 years. Ibid.
Thursday, there was an on-line story in New Orleans CityBusiness that raises grave concerns over the future of Globalstar.
By the time the company had settled into its Covington headquarters in September, two former executives had announced their departure, a $1 billion project to refurbish the satellite system promised to improve service was months behind schedule and the company’s stock price was plummeting. New Orleans CityBusiness, June 14, 2012.
Globalstar stock fell from a high of $1.91 per share in October 2010 to 26 cents as of May 18. Ibid.
Commitment not met
Globalstar committed to relocating or creating more than 150 jobs in the area by 2011 and an additional 50 in 2013. The company employs 91 in Covington now. Ibid.
Questions need answers
All of this begs the question of where is our ethically-challenged head of LED, Stephen Moret on these latest developments?
Who is looking out for the taxpayers’ money?
Is this Bobby Jindal’s Solyndra?
Kudos to Jennifer Larino for this eye-opening story!