New tenant making plans to move into GM plant

Shreveport's former General Motors Assembly Plant could soon be spinning textiles even if it never boots up its vehicle assembly lines.

Gulf Coast Spinning Company will relocate here and will use space within the facility to house a textile mill.

In an exclusive interview, Dan Feibus, CEO of Gulf Coast Spinning's parent company Zagis USA, confirmed his company's intention to settle in Shreveport.

"We are extremely close — but not finished — to finalizing and hope to locate and have an announcement in Shreveport in the very near future. But we do not have one yet. And in regards to why we're in Shreveport, we're very excited about it," he said.

Feibus would not offer details about their plans, such as the number of potential jobs the company could bring, in order to protect other parties involved and those unaware a deal is in the works. Negotiations are incomplete, he said.

An announcement could come as early as this week. What's still unclear is how a potential new tenant at the former GM assembly plant would impact Elio Motors, which is crowd source funding to raise capital.

Elio Motors rents approximately 1.5 million square feet of the former GM assembly plant from industrial developer Stuart Lichter which holds the lease to the 4.1 million square foot building. Elio Motors did not respond to multiple requests for interviews.

Licter, president and board chairman the Industrial Realty Group, also sits on Elio's board. He also did not respond to an interview request. Onno Steger, IRG's real estate director, said he could not speak about Elio or Gulf Coast Spinning Company.

The original plans

Outside of the former General Motors Assembly Plant is a drooping sign reading "New Home of Elio Motors."

There's no current manufacturing happening at the plant. By all outward appearances the facility seemed empty on July 1. There were a few cars in the parking and a lone guard manned the window inside the front entryway.

Elio Motors has yet to start production at the plant more than two-and-half years after it announced its much anticipated three-wheel Elio.

The project was supposed to breathe new life into the former GM plant, which once was a vital hub of manufacturing in Shreveport.

Elio's promise was to bring new jobs — 1,500 of them.

The parish got behind the project and bankrolled the $7.5 million transaction involving taxpayer dollars. The Caddo Parish Industrial Development Board purchased the facility. From there the building was leased to Lichter's Shreveport Business Park, which was determined to help Elio set up operations there.

Production, at one point, was set to start in March of this year but that was pushed back due to lack of capital. Since then, production has been pushed several times for the same reason.

In January, Elio Motors CEO and founder Paul Elio said he needed $230 million to start production and that production would be pushed back again until 2016.

Caddo commissioners and parish administrator Woody Wilson have backed away from the project and are insistent the plant's future is no longer in their hands. Lichter is the one to call, Wilson said when The Times inquired about Gulf Coast Spinning last week.

During the January community meeting in Ken Epperson's district, Elio said he was working on obtaining private investors to fund his venture. He also had applied for a $185 million U.S. Department of Energy's Advanced Technology Vehicles Manufacturing loan.

The company also has been selling off surplus equipment.

In the beginning of July, Elio participated in a live "Ask Me Anything" interview on Reddit.com. He took questions from Reddit users about whether he considered an electric-powered or other non-gasoline model vehicle in the future, whether the Elio could withstand crosswinds given its size and what he would say to once-excited potential customers now discouraged by repeated delays.

"Fair question," he wrote. "The (primary) cause of delay in the Elio Motors project is surrounding funding. Particularly this round. Because projects like Elio don't come along very often, there are not established pools of money that invest in these projects. In hindsight, I could have probably chosen better paths over the last year. But now with being able to take advantage of the JOBS Act (506(c) and Reg A+), we are now on our way."

Elio Motors, which long ago started taking reservations for the Elio, has since started to crowd source funding. Its goal is $25 million. It had received more than $19 million in "non-binding indications of interests" as of 7:30 p.m. Friday, according to its website.

Meanwhile, other companies have shown interest in the GM plant. And those who may know the details aren't willing to offer them for fear companies.

"Any projects that we may or may not be working with, we can't talk about it until an announcement is made," said Scott Martinez, executive director of the North Louisiana Economic Partnership, when asked about Gulf Coast Spinning Company.

Commissioner Lyndon B. Johnson and other commissioners indicated they've signed non-disclosure agreements in regards to activities at the former GM assembly plant.

"Whatever company that's supposed to be coming, there's some problems. I wouldn't say it's a 100 percent go," Johnson said. "There's still some mountains to climb. I wouldn't say it's a straight deal."

Another option for Caddo Parish

Gulf Coast Spinning Company originally intended to settle in Bunkie, where it was in the process of building a $130 million facility where more than 300 people would be employed, according to The Town Talk, another Gannett Louisiana newspaper.

The Bunkie project, which halted months ago, would have created an estimated additional 722 indirect jobs as well. It's unclear if the company could create the same number of jobs here.

Earlier this month Jim Clinton, president and chief executive officer of Central Louisiana Economic Development Alliance, told the Town Talk he heard there was problems with the project but he didn't specify what those problems were.

"We're sorry that Gulf Coast Spinning may not be happening, but that's a fine site and someone is going to build there and create jobs," The Town Talk quoted him as saying.

Feibus' Shreveport attorney, Jerry Harper, permitted his client to reveal few details about "the prior site" because of the "potential for further litigation."

Harper said they don't believe the complete story about the prior location has been told. They referred questions instead to their Baton Rouge attorneys at Breazeale, Sachse & Wilson, L.L.P.

"We're thrilled to be in Shreveport — we hope to be thrilled in Shreveport," Feibus said correcting himself. "But delays caused by other parties caused us significant loss of revenue and production over the past couple of years.

Harper said it was a lost of time and money.