Wednesday, December 10, 2008

SHOULD WE PAY FOR A FREE FERRY TO AVOCA ISLAND?


When the St. Mary Parish Council meets tonight, they will appoint a committee to study whether taxpayers should continue to pay more than $270,000 a year to provide free ferry transportation to Avoca Island, a 16,000 acre virtually uninhabited private island near Morgan City.

There is only one resident on the island, a care taker. Additionally, it serves as the site for a private hunting club, as well as various oil and gas interests.

St. Mary Parish Councilman Kevin Voisin began the discussion on the matter last month, when he introduced an ordinance to suspend parish operations of the ferry on Dec 31st of this year. However, at that same meeting, he later postponed the ordinance indefinitely, after hearing arguments from the care taker, and a group of camp owners and concerned citizens.

At that meeting, Voisin and the other members of the Parish Council agreed to appoint a committee that would have 180 days to offer solution(s) on what to do with the cable ferry that moves from Morgan City to the island, using cables which run underwater. Its hours of operation are 6 a.m. to 10 p.m., seven days a week, rain or shine.

Voisin said that the money it costs to operate the ferry, which Parish President Paul Naquin estimates at about $46 a passenger, could be better spend on parish infrastructure elsewhere, like roads. “This does not include the liability insurance we have to carry on that ferry, in case someone gets hurt, which this year cost us around $72,000,” he said

Voisin’s argument ignited fire from the care taker of the island, Jim Bodin.

Bodin said there are three cattle operations, along with oil and gas operations. Also, he said 60 people use the ferry to go their hunting camps. “Politicians say doors are open – has anyone come to speak to us,” he said.

Bodin also argued the island is the link for the direct natural gas line feeding the City of Morgan City. Bodin lives on the island and is employed by Avoca, Inc, a private company.

Clay Toups of Delta Operating Corporation, said his company has operated a gas well on Avoca Island for the past 20 years. “Can’t you cut the hours of operation down?” Toups asked. He said his company has paid $225,000 in property tax over the past 20 years.

Jude Cloutier, a commercial property owner, said his barge fleeting operation, “would have to shut down if the ferry shuts down.”

“Then, I would have to see a lower property assessment,” he said.

“I see you building a cheap low level bridge, that could open up miles of deep-water access, and make money for the parish,” he said.

Cloutier suggested the parish could build a bridge over nearby locks, which are only 75 feet wide. “There is a lock operator there all day opening and closing the locks. He could open and close the bridge as well, similar to what’s done every day at the Harvey Canal,” he said.

Parish Councilman Logan Fromenthal said that he sees the parish “spending and not getting anything in return. However, all information needs to be placed on the table before any decisions are made.”

Parish Councilman Gary Duhon said he thought the abrupt proposal to shut-down the ferry was “a railroad job. I want to see something happen over there – some development,” he said.

No one from Avoca Inc was present during the Council meeting last month.

However, Duhon commented in the wake of a letter from Avoca Inc President Robert Baird, who informed the Parish Council that the Avoca Board may have an interest in “reopening discussion regarding development on Avoca Island.”

Baird is an executive vice president for Whitney Bank, whose main headquarters are in New Orleans.

Parish President Paul Naquin took issue with Duhon for having met with Avoca Inc, without him, and in light of the fact that he indicated his interest in meeting with Avoca, to Bodin.

Duhon said that in meeting with Avoca, he “wasn’t looking for a pat on the back.”
“I want to make Morgan City and Amelia everything that Houma and Thibodaux is,” he said.

Naquin said, “So do I.”

After the meeting Naquin suggested the parish could take the money it is spending on operating the ferry, and bond it over 15 to 20 years. “This could generate a small amount of money to build a small bridge over the locks,” he said.

But Voisin questioned, “Why build a bridge to a hunting club?"

“If Avoca has this kind of money, why don’t they purchase the ferry from us. Frankly, another study about the ferry is not the answer,” he said.

Documents filed with the Securities and Exchange Commission define Avoca Inc. as a “passive royalty company that derives most of its income from royalties, bonuses and delay rentals under oil and gas leases covering its Avoca Island acreage, seismic permits and interest on its investments.” SEC records indicate Avoca Inc has owned Avoca Island since 1931.
Also, those same documents also show that in March of 1994, Avoca Inc. had on hand $1.2 million in cash, but a total of $4.424 million in assets.

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