If not for a city government watch dog, would Elk Grove taxpayers have ever learned about Slow and Low loan default debacle?
https://www.elkgrovenews.net/2025/04/if-not-for-city-government-watch-dog.html?m=0
During the April 9, 2025, Elk Grove City Council meeting, an Elk Grove city government watchdog revealed that a restauranteur who received a $500,000 taxpayer loan was in default, and the city was starting foreclosure proceedings. Ms. Lynn Wheat made that revelation during public comment on non-agenda items.
According to Wheat's comments, she sent an email inquiry to city manager Jason Behrmann days before the city council meeting about the status of the loan to David Hargis, who opened the Old Town Elk Grove Slow and Low restaurant in May 2024, only to close it on December 31, 2024.
Wheat thanked Behrmann for his email response before the meeting, which said Hargis had defaulted on the $500,000 loan. Consequently, River City Bank seized $425,000 in Elk Grove taxpayers' deposits.
Wheat's revelation was made before Berhmann made his regular administrative report. During his report, Behrmann acknowledged Wheat's revelation and made a brief statement on Hargis' default and the city's foreclosure proceeding of real property collateralized for the loan.
While it was commendable for Behrmann to provide Wheat with an honest answer, it does leave a lingering question. Had Wheat not inquired, would the city manager have voluntarily disclosed the default?
Given that the city has initiated foreclosure proceedings and a public notice will eventually be published, how many people will be aware?
We can't help but wonder about elected officials' resistance to revealing any information that casts a negative light on them - and the entire Slow and Low saga is a negative statement about the decision-making process of Mayor Bobbie Singh-Allen and her four city councilmen - had Wheat never asked the question, this information would be buried in some unseen staff report.
Elk Grove taxpayers should be thankful that citizens like Ms. Lynn Wheat keeps an eye on the antics of our local elected officials because they will not voluntarily be transparent about their actions.
Keep this in mind as the city's next saga and possible debacle unfolds - the Elk Grove Sacramento Zoo.
See Wheat's entire commentary in the video below.
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2 comments
There was nary a raised eyebrow or question by the City Council when it was revealed they had been bamboozled out of $425,000. I fully believe that the City Council was well aware of the default and had planned to keep it on the down-low until Ms. Wheat pressed their hand.
I also don't expect the City to keep the public informed on how much additional attorney costs (because they never do anything in-house) or real estate transaction costs the taxpayers will incur as a result of this economic- development flop.
Taxpayers grab your wallets, because the zoo debacle has only got started!
For almost 25 years now, Lynn Wheat has been a guiding light against local government dishonesty. This is just another example.
She protects the rights and interests of ordinary citizens. Lynn has a deep knowledge of the city of Elk Grove and she plays a vital role in keeping a check on power, always trying to promote good governance.
Sadly over the years, Lynn has also tried to act as a deterrent to potential abuse of power. She endlessly encourages ethical behavior from those in authority . . . and yet?
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