Louisiana Residents Sue to Void SpaceX Tax Deal Over Alleged Open Meetings Violations

Three residents of Vermilion Parish, Louisiana, and a new nonprofit have filed a lawsuit against parish officials, alleging violations of open meetings laws in their handling of a significant tax incentive agreement with SpaceX. The suit, filed Monday, seeks to void the deal, which could have implications for the $100 billion project intended for the parish.

The plaintiffs contend that a series of eight alleged violations occurred across four meetings in July and August, characterizing these actions as a deliberate effort to shield critical decisions about the SpaceX project from public view. The lawsuit targets both the Vermilion Parish Police Jury and the Vermilion Parish Industrial Development Board, a body reconstituted to facilitate the tax agreement.

The agreement, structured as a Payment in Lieu of Taxes (PILOT), exempts SpaceX's Starbase Louisiana from local property taxes while requiring the company to pay $25 million annually to local taxing authorities. The lawsuit focuses on three key decisions: the approval of a settlement with ExxonMobil that cleared the way for the project's land acquisition, the revival of the industrial development board, and the final approval of the PILOT agreement itself.

According to the suit, the Vermilion Parish Police Jury approved a settlement with ExxonMobil on July 15 without the matter being on the public agenda, nor was it added through a motion during the proceedings, thereby denying the public prior notice. The suit further alleges that after the settlement was approved, a staff member from the governor’s office took possession of the agreement documents, preventing public review. An attorney for the police jury, responding to a public records request, claimed the body had no digital copies and that the governor’s office held the original documents for processing.

Shortly after the ExxonMobil settlement vote, the police jury is accused of illegally amending the agenda during a meeting to appoint members to the Vermilion Parish Industrial Development Board, a body that had been inactive for nearly 30 years. The suit claims this maneuver was used to circumvent public notification requirements, as emergency situations are the only permissible reason for adding items mid-meeting.

Further violations are alleged regarding the board's operations. The suit claims that the police jury did not livestream two meetings, contrary to state law requiring governing authorities in communities of 25,000 or more to broadcast proceedings live. The lawsuit also states that neither the July 23 meeting of the industrial development board, nor the August 25 board meeting where the PILOT agreement was approved, were properly noticed. Public notice for these meetings reportedly only referenced the project by its state code name, Project Osprey, and was posted in a limited manner.

The industrial development board itself is described in the suit as obscure, lacking a website, publicly listed email, or clear reference in local or state law. Created in 1972, it became inactive in 1997 before being resurrected for the SpaceX deal.

The plaintiffs, identified as Pecan Island resident Cheryl Choate, Abbeville residents Robert Young and Rebecca Young, and the nonprofit Vermilion Citizens Coalition, Inc., are represented by attorney William Most. They assert that their aim is not to halt the SpaceX project but to advocate for transparent governance.

Governor Jeff Landry has been a proponent of such deals, defending the use of secrecy and non-disclosure agreements, including for the Meta Hyperion Data Center. He has stated that such measures are necessary to secure economic development opportunities and prevent other states from gaining a competitive advantage. However, critics argue that this secrecy limits public input on projects with significant local impact. Residents of Pecan Island have expressed concerns about the potential disruption from frequent rocket launches, with SpaceX aiming for up to 30 per day to support its Starlink satellite network and data center ambitions.

Officials in Vermilion Parish have largely supported the SpaceX deal. Vermilion Parish President Chad Vallo previously told The Times-Picayune that the public was informed of the deal shortly after its announcement. The lawsuit's outcome could hinge on whether the court finds sufficient grounds to invalidate the tax incentive agreement due to the alleged procedural irregularities.