$55M IBM Project Holds Groundbreaking; Shell Teases $12.5B GTL Facility
- Sep 26, 2013
Prior to the groundbreaking of IBM’s 800-job Baton Rouge project, the Louisiana Governor’s Office announced the selection of Ascension Parish as the potential site for a 740-job Shell facility.
According to the Governor’s Office, the Mississippi shores near Sorrento, La. could be the location of a Shell natural gas to liquids (GTL) facility if site evaluation and preliminary engineering studies yield positive results.
The facility would be one of the first GTL sites built on a commercial scale in the US. If it gets a green light, the project would cost about $12.5 billion, create 740 direct jobs that would pay an average of $100,000 plus benefits, as well as 3,900 indirect jobs, and at peak development activity could generate 10,000 construction jobs. The construction period and first 15 years of activity would have a $77.6 billion economic impact.
Shell would cover the $32 million worth of road improvements necessary for the facility and would also be eligible for a full refund by the state if the facility is developed.
Improvements are expected to be completed by 2016, which includes construction and development of new roads, as well as lane expansions of portions of Louisiana Highways 22 and 70. Other incentives include a $112 million performance-based grant for land acquisition and infrastructure expenses, access to LED FastStart, Louisiana’s chart-topping workforce training program.
With regards to the IBM Services Center, the project is set for a September 26 ceremonial groundbreaking ceremony, according to a report by The Advocate.
As reported by CPE earlier this year, the $55 million riverfront project will be developed in two phases. The first comprises a $30.5 million, eight-story office building, set to finish by spring 2015, while a second residential element, set to complete by the summer of 2016, consists of a 95-unit 11-story apartment tower and nine townhomes.
The Advocate reports the acquisition of the project site, incidentally the former location of The Advocate’s offices, has just closed. Lafayette Street Holdings, a company under the control of the nonprofit Wilbur Marvin Foundation, which handles real estate assets of the Baton Rouge Area Foundation, paid $4.1 million for the asset.
The IBM Services Center is Louisiana’s largest software development project to date.
Rendering courtesy of the Baton Rouge Downtown Development District