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Wednesday, April 17, 2019

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Port to lower rent for tenants

Port to lower rent for tenants

At a special meeting in Galliano Wednesday, the Greater Lafourche Port Commission voted unanimously to lower basic rents for port tenants by 20 percent beginning April 1.

The reduction is set to expire on March 31, 2016, or if the benchmark price for a barrel of crude oil reaches $70 for 60 consecutive days. Crude oil prices have been hovering in the mid $40 range for several weeks, part of a slump in prices that began after a triple digit peak in June of 2014.

Port Commission Executive Director Chett Chiasson said that the rate reduction was due in part to a slowdown in the oil and gas sector due to falling oil prices.

“We are taking this action to assist in the long tem sustainability of our tenant base. We watch the price of oil and its trends carefully and are aware that the lower prices are leading to budget cuts by tenants and other operators at Port Fourchon,” he said. “By taking this action, we are attempting to help minimize the impact of the falling prices on our community.”

Chiasson also noted that the rental reductions apply only to basic rent and not rent paid on improvements.

In addition, the reductions have no effect to tenants at the South Lafourche Leonard Miller, Jr. Airport, which the commission also oversees.