Two 11th-hour lawsuits are once again questioning the merits of Lafayette Utilities System's fiber-to-the-home proposal. The suits contend that LUS plans to illegally subsidize a new telecommunications department through its utilities division.
BellSouth filed suit late Friday on the heels of a Thursday suit by Lafayette residents Elizabeth Naquin and Matthew Eastin. Both suits challenge the ordinance that city-parish government has approved to issue $125 million in bonds for LUS to build out a fiber-to-the-home network. The network would allow LUS to offer phone, cable and Internet service to Lafayette homes and businesses.
BellSouth's suit says that LUS should not be allowed to use any utility department revenue to pay off bonds for the new venture. State law, agreed upon by both BellSouth and LUS last year, states a government entity like LUS is allowed to pledge its utility resources "to obtain the best available interest rates, terms and conditions for the bonds."
LUS plans to use utility department revenue for any bond payments that its telecommunications division can't cover during its beginning years. However, BellSouth argues that creditors should only be allowed to collect money from LUS' utility division after LUS has defaulted on its loan.
Local BellSouth representative John Williams did not return a call for comment by press time, but BellSouth Louisiana President Bill Oliver issued a statement last week. "BellSouth is opposed to government competing with private enterprise and using any form of subsidy to ensure the success of their business plan," said Oliver.
LUS Director Terry Huval says the suits amount to nothing more than a delay tactic to keep incumbent telecommunication providers from having to compete with a new player. He says the bond ordinance now being challenged is the same that the city-parish government approved in January ' before a Bellsouth and Cox Communications lawsuit prompted LUS to first get voter approval before moving forward. Voters approved the $125 million bond ordinance in July. The city-parish council approved the new bond ordinance last month, and last Friday was the last day anyone could legally challenge it.
"They waited until the absolute last day," says Huval, "and it's my understanding, the absolute last minute [to file the lawsuit]. They've had nine months to address these issues. So, the whole purpose of it is a delay tactic." ' NS
LOUISIANA BUSINESSES SHUT OUT OF FEMA CONTRACTS
Louisiana businesses across the state are hoping that recently hired FEMA Director David Paulison will make good on his promise to a Senate committee last week to rebid all the no-bid contracts the agency awarded post-Hurricane Katrina. The Times-Picayune reported on Monday that only two out of 140 contracts FEMA awarded through Oct. 3 have gone to Louisiana companies. Those two contracts amount to less than half of 1 percent of the $1.6 billion total awarded for items and services such as trailer homes and satellite phones. ' SJ
Clothing retailer Abdalla's, a Lafayette fixture for more than a century, announced last week that it is closing its doors.
The family-owned business first opened in 1895, and over the years had locations in New Iberia, Opelousas and Abbeville. The company eventually shuttered those stores and devoted its resources to the Oil Center location, which opened in 1999. With its signature blue sign in cursive script, the red brick building in the Oil Center remained a favorite spot for generations of Lafayette shoppers.
But the changing retail landscape and increasing presence of chain retail stores such as Wal-Mart and Target appears to have proved too much for Abdalla's. In a letter to their customers, co-owners Barbara Abdalla Black and Tom Black cite increased competition and dwindling revenue and write that it is "almost impossible for a single unit, family-owned department store to be profitable."
No official closing date for the store has been announced, and co-owner Barbara Abdalla Black did not return a call for comment by presstime. ' SJ
SAINTS' CHALLENGES DEEPEN ON AND OFF THE FIELD
After an inspirational victory over the Carolina Panthers in their season-opening victory the week after Hurricane Katrina, the Saints outlook has never been gloomier.
The team experienced one of its worst defeats in franchise history last Sunday, getting routed 52-3 by the Green Bay Packers thanks to a listless performance that prompted Sports Illustrated's Peter King to write, "No team, and I mean no team, should have put on a horsecrap performance like the Saints put on."
But things went from bad to worse on Monday, when X-rays showed that running back Deuce McAllister had a torn ACL and would miss the rest of the 2005 season. Without McAllister, their best player, the Saints face an uphill battle, and their chances of making the playoffs this year appear slim at best.
It's the scenario that diehard Saints fans dreaded most. Without a spirited run deep into the playoffs and steady fan support throughout the season, Saints owner Tom Benson might finally make good on his threat to move the team to another city. The Superdome sustained extensive damage during Hurricane Katrina, and chances for the new stadium Benson still covets are almost nil as New Orleans faces more pressing challenges. Coupled with anemic ticket sales for the team's three upcoming Baton Rouge games and the economic base in New Orleans a huge question mark for the foreseeable future, Benson the businessman could now claim that he doesn't have the financial support in Louisiana to keep the team here.
Further complicating matters is the legal term "force majeure" in the team's current contract with Louisiana. The San Antonio Express News reported last week that the clause frees parties from liability when an "act of God" prevents one or both parties from fulfilling their contractual obligation. Katrina certainly appears to qualify as force majeure, meaning Benson has a 90-day window where he could attempt to void all contractual obligations with the state. The 90-day window expires Nov. 28.
Despite sweeping changes enacted by Gov. Bobby Jindal's administration, the health insurance program for state workers and public school employees will have to use $88 million from its reserve fund to cover its costs this year.
The LPSB races are sure to get heated between now and Nov. 4, and with only 9 available seats, this year's field of 20 candidates will surely be wanting to set themselves apart from the crowd early; they'll get their chance next week, starting Tuesday with the kick-off of a three-day series of candidate forums.
Lawmakers say they've received complaints that waits have spiked, with people being forced to wait in line for more than an hour — and sometimes three hours — to handle routine tasks.
The campaign announced that Rep. Stuart Bishop of District 43 and Nancy Landry, District 31, have thrown their support behind the Naval Academy graduate and entrepreneur in his bid to unseat current Hunter Beasley in District 8.
A Lafayette man with an alleged taste for child porn was busted Thursday evening during a cyber crime sting launched by the Attorney General’s Office.
U.S. Rep. Vance McAllister says his chief of staff is on temporary leave after being booked with drunken driving.
It was a rare moment in Congress this week as Republicans briefly put aside partisanship in support of President Barack Obama's request to train and arm Syrian rebels, and while a number of Democrats opposed the measure, Louisiana's Democratic Sen. Mary Landrieu found herself on the same side of the issue as her Republican challenger Rep. Bill Cassidy.
Home Depot breach bigger than Target; Alibaba IPO could be big; Rivers' last project and more national and international news for Friday, September 19, 2014.
Friday's Blogs from the Bog!
City-Parish President Joey Durel is asking the council to sign off on a resolution approving a pair of deals that would lead to razing the seedy Lesspay Motel at Four Corners to build a new police substation as well as transforming nearly a block Downtown where the old federal courthouse building now molders into a mixed-use development.
In 2013, the IRS — already the least popular governmental agency in the country — became the target of intense investigations after it was revealed that they had specifically and improperly scrutinized applications for tax-exempt status from organizations associated with the nascent Tea Party movement.
Improving the running game was "a point of emphasis" during the offseason and the results have manifested themselves in the form of substantially greater production.
Louisiana's health department said Wednesday that its evaluation of the state's Medicaid privatization was on target, despite criticism from the legislative auditor that it lacked key data and contained inconsistencies.
The feds converge on your office, seizing records on several employees as part of a pay-for-plea investigation. WWYD? If you’re Mike Harson, you give yourself a $12k raise.
It’s football season and after back-to-back winless weekends for the Saints and the Cajuns many citizens are finding it difficult to be civil much less happy. Well, chew on this.
Considering his repeated stays in the local penal system, David Narcisse Jr. should have known that having a semiautomatic shotgun, even one given to him by a friend, wasn’t the brightest of ideas.
A state district judge on Tuesday threw out a last-minute retirement hike lawmakers gave to the state police superintendent, ending a political firestorm over a pension boost passed without public scrutiny on the last day of the legislative session.
The House has passed a bill to increase oversight of veterans' hospitals under construction, following a report that some medical centers take three years longer to complete than estimated and cost an extra $366 million per project.
An obvious follow-up question for any Republican politician who accuses Democrats of being science deniers is one about science, to which Jindal bobbed and weaved like a welterweight champ.
The Lafayette City-Parish Council is expected to decide tonight (Tuesday) whether to go along with a proposal City-Parish President Joey Durel made in February’s State of the Parish Address and consolidate taxes for mosquito control and the parish health units into a broader tax program that would also cover animal control.
U.S. District Judge Richard Haik has dismissed Greg Davis’ lawsuit against the LPSB, yet in his ruling, the federal judge doesn’t bite his tongue in pointing out the "threat" being posed by certain board members.
Of all the political offices being contested throughout Lafayette Parish, the race for Broussard’s top police post has literally become one of the most heated.
A state district judge is deciding whether to issue an injunction against the enforcement of a last-minute retirement hike that lawmakers gave to the state police superintendent.
A new website is up for Louisiana's state government employees and retirees to choose their health insurance plans for next year, a choice they must make by October.
That fact that New Orleans led both games in the final 10 seconds of regulation, and lost each by a field goal or less, is of little solace.