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Jun 13, 2023

St. Bernard DA sues Port Nola to block $1.8B Violet project

The St. Bernard Port Violet Terminal on the Mississippi River in Violet, photographed Wednesday, Dec. 30, 2020. The Port of New Orleans has agreed to purchase the property and plans to use it to

The St. Bernard Port Violet Terminal on the Mississippi River in Violet, photographed Wednesday, Dec. 30, 2020. The Port of New Orleans has agreed to purchase the property and plans to use it to accommodate supersized container ships.

The St. Bernard Parish District Attorney's Office is suing the Port of New Orleans in an effort to stop the port from building a proposed $1.8 billion container facility at Violet, citing the "questionable circumstances" of the deal that set the project up.

The lawsuit, filed in 34th Judicial District Court on behalf of St. Bernard Parish government, is the latest in a long-running battle between some St. Bernard Parish politicians and residents who argue that the giant container port — called the Louisiana International Terminal — would disrupt life in the parish and cause environmental damage.

Port Nola, which has argued that the downriver container facility is long overdue to allow it to compete with other Gulf South ports for big ship business, has the support of Gov. John Bel Edwards as well as regional and parish economic development agencies.

Port Nola's CEO, Brandy Christian, called the lawsuit "preposterous" and "election-year theatrics."

The lawsuit, filed by District Attorney Perry Nicosia, argues that Port Nola does not have the authority to operate a shipping facility within the borders of St. Bernard Parish.

Rendering of the proposed $1.5 billion container terminal at Violet, St. Bernard Parish.

In a press release Friday, Nicosia said the lawsuit asserts that the cooperative endeavor agreement between the St. Bernard Port Authority and Port Nola is not valid.

"The lawsuit filed lays out the entire legislative process by which the St. Bernard Port Authority was created (and) further proves that Port Nola was stripped of all its jurisdiction in St. Bernard Parish by legislation passed in 1992 by then Senator Sammy Nunez, then Representative Thomas Warner, and then Representative Ken Odinet," the DA's office said in a press release.

Nicosia also asserted that the St. Bernard Port Authority, as a political subdivision of the state, was not legally allowed to divest itself of exclusive authority to operate a container port in the parish. It referred to the "questionable circumstances" of the deal between St. Bernard Port Authority and Port Nola, but didn't elaborate.

The comment appears to refer to allegations made in a lawsuit filed last year by Stop the Destruction of St. Bernard Parish Inc., a group of parish residents represented by attorney Sidney Torres III. In that suit, the group pointed to a history of legal disputes over St. Bernard Port's acquisition of the land now earmarked for the terminal. The group also asserted that officials form the two ports "colluded" to ensure their complex deal ended that litigation, and that the deal was approved by the two ports' boards without adequate deliberation.

Port Nola won a court decision earlier this year that halted the residents' lawsuit. The district court in St. Bernard Parish ruled that the lawsuit was premature until environmental and other studies were completed. But the protest group was granted an appeal, which will be heard in the 4th Circuit Court of Appeal in New Orleans later this summer.

Torres on Friday commended Nicosia for the lawsuit.

"We have been fighting this battle for several years on behalf of thousands of residents of our parish and will continue to do everything necessary to prevent the destruction and devastation that will come to pass if the Port of New Orleans is not stopped now," Torres said by email.

"We have long alleged the illegality of the Port of New Orleans’ actions in St. Bernard Parish and support the District Attorney’s lawsuit which will bolster our legal action," he added.

The project has been the subject of controvery since Port Nola first announced at the end of 2020 that it had purchased 1,100 acres at Violet and agreed with St. Bernard Port to build the LIT.

Most of the time since has been spent in community engagement and laying the groundwork to fund the project and the infrastructure improvements required so that the massive increase in truck traffic could be handled without having to use the two highways that currently are the only major roads in and out of the parish.

Last year, Port Nola and the state signed a deal with two private operators who agreed to provide $800 million to help build the terminal, though that deal is contingent on progress on the permitting front, as well as financing the infrastructure upgrades.

Port Nola's board recently approved $8 million in contracts that will finalize design of the LIT and lay the groundwork for construction.

But earlier in the summer, the project was set back when political maneuvering in the last days of the state legislative session caused $130 million of a needed $180 million for infrastructure upgrades in St. Bernard Parish to be removed from the state budget.

Christian, in her emailed response, lamented the holdups.

"For decades, it has been clear that a new container terminal is needed downriver from the Crescent City Connection Bridge in order to secure the future of the state’s trade-based economy and to make Louisiana the premier shipping gateway in the Gulf," she said.

"Unfortunately, it’s situations like this that have left Louisiana struggling to compete with neighboring states," Christian went on. "Election year theatrics, when this process has been going on for years with regular outreach and input, are unproductive."

Email Anthony McAuley [email protected].