Spinning Plant Leaving Bunkie

By GARLAND FORMAN & RAYMOND L. DAYE
    Gulf Coast Spinning -- once seen as an economic savior for the parish -- is halting construction of the plant in Bunkie and plans to build the facility in Shreveport, Bunkie Mayor Mike Robertson said.
    Zagis USA CEO Dan Feibus told the newspaper Monday that “the first stage of the plant has to be built in Shreveport for us to make our production schedule.”      Zagis USA is the parent company of Gulf Coast Spinning.
    Feibus said there have been snags affecting the Bunkie project that would prevent the first phase from being built in time to meet commitments the company has.
    He referred additional questions to attorney Jerry Harper.
    Harper said it appears Gulf Coast will locate Phase I in the vacant GM plant in Shreveport “so we will not have to build a plant from scratch.”
    Harper said Gulf Coast had signed a contract for $350 million of product prior to initiating the project in Bunkie.  He said it was the pressing nature of that contract that drove the company’s efforts to locate a site for the plant.
    Both Harper and Feibus said the company hopes to locate Phase II of the spinning plant in Bunkie. Harper said that would depend on the success of Phase I.
    Harper said arrangements on addressing the liens in the project are ongoing.    
        General contractor Alfred Palma LLC filed a lien for almost $1.7 million against Gulf Coast on June 1. Subcontractors have filed liens against Palma totaling almost $1.4 million.
    Steven Grissom, secretary of Louisiana Economic Development, could not confirm that GCS was moving, but did say that “it’s our understanding that Gulf Coast Spinning has delayed construction due to challenges raising capital and it is evaluating alternative sites within Louisiana at this time.”
    Feibus said the company’s financing “is being organized at this time. We are making arrangements to get all of the contractors paid.”
    He said Gulf Coast fell victim to “believing promises of funding that didn’t materialize, but the company will make adjustments and continue the project.”
    Robertson said Feibus told him in a telephone conversation that the company “has decided to move its operation from the Bunkie site to a site in Shreveport. I have asked for a formal statement from him several times, with the assurance he would send one. As of this date, a statement has not been received.”
    The mayor said GCS has been trying to resolve some issues since construction stopped in late 2014. Those issues apparently were unable to be resolved to GCS’ satisfaction.
    Robertson said there have been rumors for several months concerning why construction had stopped.
    “I was not privileged to all the conversations that have taken place and I am in no position to make a statement on behalf of GCS,” he said.
Great fanfare
    In December 2013, Gulf Coast’s decision to locate its plant in Bunkie was met with great fanfare -- earning the honor of Gov. Bobby Jindal personally making the announcement.
    “In the end, Bunkie was the best site for us,” Feibus said at that time. “There were several reasons to pick Bunkie, but it started with the group promoting Bunkie. The state wanted to see this plant in Bunkie.”
    Even as late as the brief comments to the newspaper last week, Feibus hinted at the move but added, “it is certainly nothing to do with the people in Bunkie. That mayor has been great.”
    Dirt work on the 588,000 sq. ft. textile plant in Bunkie started in July 2014 in the Bunkie Industrial Park on La. Hwy. 115 south of Bunkie.
    The iron and other material for the construction of the building was delivered to the site in the fall, but no work has progressed since then.
    GCS had estimated it would open Phase I of the plant in late January 2015 to begin production, with additional construction continuing after that to get to the full size. When the plant was completed, it was expected to employ 307 people.
    Robertson said all parties involved in the project were  confident that the spinning plant would be built.
    “I do know that the City of Bunkie and our partner Cleco have done everything possible to make the spinning plant a reality,” Robertson said. “Cleco has gone to great expense to bring electrical power to the industrial park. To my knowledge, Cleco has gone beyond the call of duty to make this plant a reality. For Cleco to make this type of investment, the assurance of the construction of the plant must have been overwhelming.”
    Robertson said Cleco representatives repeatedly told him that the utility company was willing to do everything it could to bring the jobs to Bunkie.
    “I was not privy to all the discussions involved in the construction of the plant, but it is apparent something must have been held back by GCS,” Robertson added.
Cleco investment
    Cleco officials said they would not comment on the issue at this time.
    Cleco’s investment in the  preparing for GCS to locate in Bunkie included running a special electrical line from the power plant in St. Landry to the Industrial Park and constructing an electrical substation near Eola.
    A Cleco subsidiary also purchased the property from Bunkie and helped to finance the project.
    Robertson said Bunkie was paid for the 40-acre site and is not out any money as a result of GCS’ decision.
    It is not known at this time if  the state money to construct the plant in Bunkie would follow the company to Shreveport.
    “Obviously, there was some kind of breakdown in the planning by GCS that could not be foreseen by those on the outside,” Robertson said. “I am greatly disappointed that GCS has made this decision. GCS has not only let the people of our community down, but has let the people of Avoyelles Parish and Central Louisiana down.”
    Robertson is also upset because other potential tenants to the Industrial Park were turned away because GCS needed 40 acres of the 148 acre park.     He said one tenant couldn’t locate at the site because it was not compatible with the cotton spinning plant.
    “GCS has lost a great opportunity to locate in an area that fully supported their efforts,” he said. “I personally don’t think they will find another community or another partner like Cleco that was as dedicated to bringing jobs to this area. They will never know of the greatness the people of Avoyelles and Central Louisiana have, nor will they experience the ‘can do’ attitude of the people of Bunkie.
    “We are not going to let this hold us down,” he continued. “We will come out of this a better community with our sights set on securing another industry that will experience the greatness of the people in Central Louisiana.”
    Harper said Gulf Coast has some issues with Cleco related to the project and “if we are not able to re3solve our issues, there is the potential for litigation.”
Related Liens
    The line of liens related to the project began with a lien by Merrick Construction of Cottonport, filed with the Avoyelles Clerk of Court on January 14, for $944,328.68.
    Merrick claims in the lien affidavit that the amount represents “labor, materials, supplies, equipment and related construction services” for the Gulf Coast Spinning Plant project.
    On March 13, NCI  Group Inc. filed a lien against Palma for $446,751.30, stating that it “was engaged by contractor (Palma) to supply certain pre-engineered metal building and components, and related materials” at the Gulf Coast job site.
    Palma filed his lien against Gulf Coast on June 1, stating, “There is an unpaid balance due and owing Alfred Palma LLC for work associated with building slab, building shell, site paving and grading, site utilities, basic electrical and mechanical related to office building in the amount of $1,691,489.73.”
    Palma also asks for an additional $500 to cover “the cost of preparing, executing and filing” the lien paperwork.