Development deal in trouble

• By GARY PERILLOUX
• Advocate business writer
• Published: Aug 15, 2009 - Page: 6B

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A $3 million investment to build modular houses in Clinton and employ 150 people might not come to fruition.

Louisiana Economic Development Secretary Stephen Moret said Friday that Superior Homes of Louisiana LLC hasn’t been able to launch operations in a 71,000-square-foot facility in East Feliciana Parish due to the recession and soft housing market.

Announced in April 2008, the Superior Homes deal was expected to see manufacturing begin in October, more than 10 months ago. Superior’s president, Flynn Foster, leveraged investment from partners in Texas and South Dakota, where parent firm Superior Homes LLC had been in business for 50 years.

Moret addressed Superior Home’s fate Friday after a state board voted to look into the status of a company it granted a $1 million economic development award to last year. Superior would have to repay grant funds if it doesn’t fulfill job and capital investment requirements, but the project isn’t considered in default yet, Moret said.

That bridge won’t be crossed until after the end of the year, when some employment must be demonstrated. The company had several years to reach 150 jobs, which were to begin paying $13 an hour, plus benefits.

“They have not yet missed any of their employment requirements, because they’re in the startup-and-employment phase,” Moret said, adding: “It’s looking unlikely that they’re going to be able to proceed on the schedule that was envisioned.”

Superior Homes had planned to build modular components that would be assembled into buildings for residences, schools, restaurants, dormitories, cafeterias and light commercial buildings. But residential sales were considered crucial; and in 2008, Superior faced “the implosion of the national housing market,” Moret said.

The state’s economic development department, LED, is exploring options that could include the possibility of another entity taking over the project.

Foster couldn’t be reached for comment Friday.

The Louisiana Economic Development Corp. board of directors, which oversees state financial assistance on business projects, voted Friday to direct LED staff to talk to Superior’s leadership and see what action would be most appropriate to save or restructure the deal. Were Superior Homes to reach employment of 150, it would be the fifth-largest private employer in East Feliciana Parish, according to the Baton Rouge Area Chamber.

At the same meeting, the LEDC board also approved new Economic Development Award Program grants for two maritime companies, one that’s reviving a defunct boat manufacturing business in Caddo Parish and one that’s moving its mooring technology company from Amelia to Morgan City in St. Mary Parish.

Caddo Manufacturing LLC is reviving the former VIP Boats maker, which closed in 2008 after a nearly 40-year run in Vivian. The new company has been formed by boat manufacturing veterans Billy Breed and Joel Euton and majority partner Jimmy Dempsey.

The company’s chief executive, Ernie Avra, appeared before the LEDC board, which granted $340,000 to Caddo Manufacturing as part of a $1.59 million renovation of the 340,000-square-foot facility already producing boats in Vivian.