LED’s Pierson: “No Fallback Plan” for V-Car

Louisiana Economic Development’s Assistant Secretary Don Pierson said this morning that there was “not a fallback plan” in case a Department of Energy Advanced Technology Vehicle Manufacturing (ATVM) Program loan is not approved by March 1, 2010. Lincoln Parish News Online had asked Pierson if there were any plans to renegotiate the original contract and try to extend the project timetables.

He was interviewed by LPNO after he participated in a panel presentation at a West Monroe Economic Forum sponsored by Louisiana Senator David Vitter.

The loan process has been stalled since last year and is said to be necessary in order for Monroe’s V-Vehicle project to be sufficiently capitalized. If the project does not have at least $350 million in capital by March 1, Section 4.03 (E) – Failure to Commence Phase III – of the Cooperative Endeavor Agreement releases the participants from further obligations. If the capital is not in place by April 1, 2010, over $6 million of the state taxpayer’s money must be refunded.

The agreement was signed last June and announced in a high-profile event at the old GM Guide Plant, site of the proposed project.

Pierson said LED remains “confident of the (ATVM loan) confirmation in the near future,” even though the deadline is but ten days away. He said there was an “active dialogue” among the interested parties and that their goal is to make the deadline.

Lincoln Parish News Online has reported extensively on the controversial company and the Monroe project. Archived stories can be found here. We will continue to report on this ongoing story.

7 Responses to “LED’s Pierson: “No Fallback Plan” for V-Car”

  1. Jeff Says:

    Walter,

    They are working like crazy out at the site. I saw the V-Car people at a book review at Bayou Desaird the other nite. Four of the executives were there and they were very upbeat on the project. By the way Terry Denmon son Randy Denmon was with them. Denmon Engineering is site engineers for the project.

    Thanks

  2. Fed-up Fed Says:

    Walter–I want to thank you for the great amount of time and trouble you go to in order to keep your taxpayers informed about what’s happening to their money. While this particular issue has no relevance to me (directly) in Texas, I am grateful to those of you who go to so much effort to oversee public funds. God knows we have enough people around who don’t give a flip about where the money comes from, as long as they get to spend it. I hope you are able and willing to keep up the good work you’re doing. If I ever run into a problem over here, I certainly know who to call for help. Thanks again. Ole Fed-up Fed

  3. News-Star, V-Vehicle Flack for Pact Extension « Lincoln Parish News Online Says:

    […] Lincoln Parish News Online What isn't in the newspapers is often more newsworthy than what is. « LED’s Pierson: “No Fallback Plan” for V-Car […]

  4. Wascator Says:

    Isn’t this the same Denmons who have engineered the taxpayer-funded lakes with Francis Thompson and his brother Mike?
    Go figure… i’d be upbeat, too.

  5. OPPJ Hell-bent to Sell V-Vehicle Bonds « Lincoln Parish News Online Says:

    […] then the local deadline also slides. While the Louisiana Department of Economic Development denies any plans to extend the contract terms, such a move would not be […]

  6. V-Vehicle Deadline Extension from LED « Lincoln Parish News Online Says:

    […] Secretary Don Pierson said categorically there were no plans for any deadline extension. There was “not a fallback plan,” Pierson […]

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