Darrell Doan's Deal Defaulting?
https://www.elkgrovenews.net/2024/12/darrell-doans-deal-defaulting.html
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| Elk Grove economic development "guru" Darrell Doan. | |
Elk Grove City Hall playing favorites with taxpayer money
Since the late afternoon of Friday, December 20, comments have been made about a high-profile Elk Grove business's demise. A call to that business yesterday confirmed that, as of yesterday, the establishment was still operating, and according to the person speaking for the company, there were no plans to close.
A saying that became prominent during the Great Recession pertains to this establishment. With the help of Elk Grove Mayor Bobbie Singh-Allen, the city council, and the city's economic development "guru" Darrel Doan and the deal they conjured, this is a case of privatizing profit and socializing risk.
One of the more poignant comments about the business on social media was from a person who represented themselves as an Elk Grove small business owner. That comment said:
'City of Elk Grove gave them so much of a leg up that all
us other businesses don't get'
Singh-Allen and Doan successfully pushed for a $500,000 taxpayer loan guarantee for this business!
If the business siezes operations, it will default on the loan. That's right, if things crap out for this business, Josephine and Joseph Taxpayer will be left with the tab, so to speak.
Technically, the city can take possession of the business's equipment and fixtures. But it's like taking possession of a car sold six months ago - as soon as it leaves the car dealer, it immediately loses 20 percent of its value, with more lost value as time passes.
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Based on comments about this business, which started with much ballyhoo from the mayor earlier this year, it has been severely criticized in every aspect of its operation. Its future is, at best, murky.
We wish no ill will to the business, especially its employees. However, the overwhelming criticism points to a problematic operation.
Given the public's interest in this taxpayer-backed private venture, the community will continue monitoring it. As this story advances, we will examine the city's economic development department, which has overpromised and underdelivered throughout its history.
One question that has lingered for years is why a city hall department head who has under-delivered for almost a decade is still employed?
We suspect the city manager, the mayor, and the city council are hesitant to fire this person because doing so would reflect poorly on them.
So as this person dilly-dallies around collecting a fat paycheck, along with any number of taxpayers-paid junkets, he's ensconced until that fat taxpayer-funded CalPERS pension kicks in.
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2 comments
I still recall the staff report presentation to the City Council and Darrell Doan telling the Council that they cannot lose on this deal. Well, the personal property the owner put up as collateral for the City loan guarantee is an undeveloped residential parcel along Garden Highway that is about 2% dirt and 98% Sacramento River water! Hey! Maybe the City can build a mini-Seaworld there to go along with the zoo!
So much tax money spend on a single business. Why was this business benefitted to the detriment of all others? Perhaps because it was in the mayor's vision of making Old Town into San Diego's Gaslamp District with it's expensive and trendy restaurants and shops? Looks like the mayor has failed the citizens/taxpayers yet again to the cost of $500,000 and counting should this business fail. If so, perhaps Old Town may be better defined as the "Gasfire District?"
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