State Says The Company Has Not Met Job Growth Targets

An economic development deal between Textron's Bell Helicopter and the state of Louisiana is on the rocks, with the state saying that the company has not created promised jobs and is in violation of the agreement.

Television station KLFY reports that the decision was announced last week by Development Secretary Don Pierson, who said the decision followed "four years of underperformance by the company."

The state agreed to the incentive package with Bell in 2013 under the administration of Governor Bobby Jindal. Louisiana spent $26 million to build an assembly facility in Lafayette, and Bell said it would employ 115 workers at the plant. But currently, Pierson said, there are only 22 people employed at the plant, which does not even meet a lower job benchmark negotiated after the initial deal was closed.

Pierson said the state is now trying to recover the millions of dollars it paid in incentives to attract the plant.

Bell says it has not violated the terms of the deal with Louisiana, but with the loss of incentives, it has begun the process of closing the plant.

(Image from file)

FMI: Source report