Nederland EDC wants funds back from business
The Nederland Economic Development Corp. will seek to recover $12,500 in incentive funds, which comes from tax payers' money, that it loaned to Shannon Landry, owner of the Jaguar Salon and Day Spa.
The NEDC filed a breach of contract lawsuit against Landry and her business with the Jefferson County District Court on June 4. Judge Donald Floyd, 172nd Judicial District, will preside over the case.
The NEDC was formed to aid and promote business and the development of new businesses in Nederland and Jefferson County. Landry applied for a grant and was given a conditional $12,500 for her business.
The NEDC utilizes various means to aid and promote businesses, both existing and new, including grant incentive contracts that provide economic assistance to businesses within the city, the suit said, adding that those incentives are subject to the recipient's compliance with certain performance obligations specifically delineated" within the economic incentive contract.
If the business fails to meet those underlined performance obligations, it is required to pay back the NEDC, the suit said.
"These performance requirements include, but may not be limited to, construction and/or maintenance of certain improvements which expand the property tax base of the city, the creation and/or retention of certain jobs and respective salary levels by the recipient business during the term of the economic incentive contract," the suit said.
Landry has failed to meet the above described requirements and refused to turn in her reports to the NEDC, the suit said. She originally entered into the agreement on April 13, 2005.
"Plaintiff would show that defendant Jaguar has failed and/or refused to comply with its reporting obligations, including, without limitation, defendant's obligations to report its employment levels, its total payroll and other reporting obligations, the suit said. "Plaintiff has provided a notice and opportunity to Jaguar and Landry to cure, yet defendants have failed and refused to do same."
The NEDC is suing for the contract relief, court costs and any additional relief deemed fit.
The NEDC is represented by attorney James Wimberley of the McPherson, Monk, Hughes, Bradley, Wimberley & Steele law firm.
Case No. E179-431