City Council approves microchip plant agreement

Photo by T. Scott Boatright

 

By T. Scott Boatright

 

Approving authorization for a cooperative endeavor agreement (CEA) to convey property to Bulldogs Microchips LLC and paving the day for roadwork to alleviate traffic congestion near Ruston Junior High School were primary order of business as the Ruston City Council met Monday evening at City Hall.

Mayor Ronny Walker explained the reason for asking for authorization for the CEA to be signed with Bulldogs Microchips LLC before City Attorney Bill Carter went into the formalities of the agreement.

“The Council knows but for those watching or are here tonight, a year or so ago (the city) built a new road into a 37-acre plot that we own on the north end of the old airport,” Walker said. “We did that because we knew if we built a secure business (area) designed for high-tech companies, we would have somebody come. The microchip facility is coming out of Huntsville, Alabama — Radiance Technology.

“It has a great story with someone coming from (Louisiana) Tech, a Tech graduate who is now CEO of the company. As part of that, in partnership with Tech, we are donating the land for the particular business — 6 acres — to the Tech Foundation. The Foundation in turn will take the money we got from the state for the building, build a building, and then they’ll turn around and lease it back to Radiance.”

Walker said the return for the city is two-fold.

“What this does, is not only do we get a new business and an anchor to our secure business (area), is also sets up the Foundation to be receiving rent from something that really didn’t cost them anything, so that’s a fantastic way that we partner with Tech to make sure that the Foundation goes on for years and years to come.”

That ordinance passed Monday authorized the city to enter into a CEA with Bulldog Microchips, an LLC that is a subsidiary of Louisiana Tech University Foundation.

The facility and equipment investment is expected to exceed $80 million with Radiance Technologies anticipating the creation of 150 new jobs with an annual payroll of $12.7 million by Fiscal Year 2032.

“The exciting thing about this is that we knew if we could get that anchor, there would be others,” Walker said. “We’ve already had a couple of calls. I was at Tech today for a meeting and got a call from a company we’ll be talking to within the next two weeks.

“So, we will have other companies that will want to come to that (business) park for that very reason.”

The road project near Ruston Junior High School is in conjunction with the ongoing Buc-ee’s project off of Tarbutton Road.

Ruston’s City Council passed a resolution authorizing the city to enter into a CEA with the state of Louisiana through the Louisiana Department of Transportation and Development relating to modification of a state route highway at where an Interstate 20 offramp leads to Tarbutton Road.

In layman’s terms, it approves construction of a new road that will lead to RJHS for parents and buses picking up and dropping off students to help alleviate some of the traffic congestion that backs up along the I-20 West service road on the north side of the service road where vehicles currently get stacked up pulling over to the side of the road to wait for students to be let out of school to be picked up.

Another key resolution passed by Ruston’s Board of Aldermen during the meeting was authorization for the city to enter into a CEA and building leader with the Louisiana Department of Children and Family Services relating the Ruston Sports Complex’s indoor facility to be used as an emergency shelter during a state or federal declared emergency or disaster such as a major hurricane strike on the state.

“We have engaged in discussions and negotiations with that state and we have worked through those and agreed on a cooperative endeavor agreement as well as terms for funding, etc., in a reciprocal obligation of the state and the city if there was a situation where the indoor facility would be a good fit for a shelter,” said City Attorney Bill Carter.

“At this point we’re simply asking the Council for approval to enter into the CEA and, if the situation arises, a lease agreement of the indoor facility for purposes for use as an emergency shelter.”

Walker said such an occurrence will happen under state control.

“They would come in and control everything,” Walker said. “They would bring in security, they would bring in bathroom trailers, they would bring in shower trailers — they control everything. The only thing the city would be responsible for is hauling off the dumpsters trashwise. We don’t have to do security or any of that.”

Also passed by the Council resolutions rescinding an act of subdivision and rescinding and/or revoking dedication of streets and servitudes relating to Lot 3 of the Russ-Town Industrial Park and another revoking the dedication of a portion of West Texas Avenue.

Carter said that several years ago the city created Lot 3 of the Russ-Town Industrial Park in conjunction with a project that ultimately did not materialize.

“The location of this lot actually encroaches on our 37 acres for the Business Park,” Carter said. “The city still owns the lot, and there were also some streets and servitudes dedicated, so we need to rescind that subdivision itself as well as the streets and servitude dedications so this piece of property will be cleared for inclusion into the new Ruston Business Park.”

Revocation of the West Texas Avenue property was done at the request of First Baptist Church.

That segment lies between South Trenton Street and South Monroe Street.

“We feel like this is an excellent opportunity for us to help one of our local churches and will also be a great addition to our downtown,” Walker said. 

In other business during the meeting, Ruston’s City Council authorized the city to enter in a professional services agreement with Hunt, Guillot and Associates, LCC for engineering services related to a city wastewater feasibility study, authorized the city to submit an application and enter into a professional services agreement for administrative and engineering services for the Fiscal Year 2026/27 Louisiana Block Grant Program as well as a resolution authorizing adopting a Sanitary Sewer System Resiliency Plan in order to bolster chances of receiving the aforementioned block grant.

Ruston’s City Council also approved a pair of resolutions authorizing the sale of vehicles and equipment as movable surplus property, the second of which OKs sale of three retired police vehicles to the City of Marion at the cost of $5,000 each as well as resolutions authorizing the city to accept the North Monroe Street: South Service Road West to West Park Avenue Project; the Dan Reneau Drive, South Homer Street and West Mississippi Avenue Project; and the Railroad Trail Project.

In addition, the Council also passed an ordinance amending Ruston’s Zoning Code to create the I-20 Corridor Major Travel Center Overlay District; a resolution for the city Hunt to enter into a professional services agreement with Hunt, Guillot and Associations for engineering services related to city downtown railroad crossing improvements; and approval for the city to continue abatement of a substandard building located at 1011 Jones Street.