More on the Jindal’s Economic Miracle
Over at his blog, CB Forgotston points out an uber-ironic happening on the Northshore:
On July 13, 2010, Bobby Jindal announced that Globalstar would move its headquarters from California to St. Tammany Parish.
LED committed to provide Globalstar with a performance-based grant of $4.4 million to reimburse expected relocation costs, as well as $3.7 million in performance based incentives to offset facility costs for Globalstar’s new headquarters and research and development operations in Covington. Jindal Press Release July 13, 2010.
Globalstar has committed to relocate or create more than 150 new jobs by the end of 2011, increasing to more than 200 new jobs by 2013. Additionally, the agreement calls for Globalstar’s total Louisiana employment to increase by more than 500 by the end of 2019. LED further estimates that the Globalstar project will result in $26.1 million in new state tax revenue and $8.3 million in new local tax revenue over the next 10 years. Ibid.
Thursday, there was an on-line story in New Orleans CityBusiness that raises grave concerns over the future of Globalstar.
By the time the company had settled into its Covington headquarters in September, two former executives had announced their departure, a $1 billion project to refurbish the satellite system promised to improve service was months behind schedule and the company’s stock price was plummeting. New Orleans CityBusiness, June 14, 2012.
Globalstar stock fell from a high of $1.91 per share in October 2010 to 26 cents as of May 18. Ibid.
Commitment not met
Globalstar committed to relocating or creating more than 150 jobs in the area by 2011 and an additional 50 in 2013. The company employs 91 in Covington now. Ibid.
Yes, this is the same Bobby Jindal who is mentioned as Romney’s “dark-horse in plain-sight” VP nod, generating massive buzz over his zingers against the Obama administration (including is infamously stupid “Obama never ran a lemonade stand” line).
But this is much worse, and much “realer” than Obama’s investment in Solyndra. See, Jindal didn’t just offer Globalstar a loan. He literally gave Globalstar more than $7m in taxpayer money. Gave it away. And Jindal has repeated this again and again, without any accountability regarding the effectiveness of giving State money away to private enterprise in hopes they might create a couple jobs here and there.
Move along, nothing to see here of course.