Collateral, What a Concept!

I have a great idea for a business I’d like to start here in Erie. It’s a really great idea and I can show you a solid plan and even better, some very nice artist renderings. That’s all I’ve got, no real money to invest, just an idea, or at least the kernel of an idea.

If I made that pitch to one of local banks here in town, what do you think their response would be? Now keep in mind, I’m a really good person, everybody thinks so! So now what do you think would I get a loan? Not likely huh?

Now imagine I went to the State or better yet City Council, and gave them the same pitch along with the promise to create jobs and economic development. Now how would I make out? You betcha! I’d have a big ole pile of taxpayer cash!

If you don’t agree, I’ll simply point to history, because it’s on my side. All I have to point to is the non-existent Parade Street grocery store, the laughable juice pressing plant, and the big hole in the ground where Koehler Brewery once stood on State Street. All three of those ill-fated projects enjoyed the largesse of the taxpayers of the city of Erie and the Commonwealth of Pennsylvania.

Which makes it laughable at best that City Council is trying to get back some of the money dumped into the Koehler money pit. It’s laughable that Councilman Jim Thompson is throwing around phrases like “moral obligation” to the Erie Times News when referring to the pay back of taxpayer money.

Time after time the Council has been kicked in the backside for doling out money with little if any regard for the taxpayers all in the hope that something magical might happen and the projects might actually take off. These folks are so desperate for some good news on the economic development front that they’ve become easy pickings for scam artists like the late Herb Fiss and his alleged juice plant.

Now after getting stung so many times they want to take a get-tough stance and act responsible. Here’s a news flash for Thompson and friends, they should have done the due diligence on the front end of these deals not after the bottom falls out! A simple Google search of Fiss would have revealed all they needed to know to send him packing with the empty wallet he came to town with!

I don’t have a problem with economic development monies being spent to expand local operations or o help grow a business, that makes sense, but these so-called developers that don’t have much more than pretty pictures need to put up some realistic collateral to back up the funds they get for taxpayer funded sources.

Think about it, if they aren’t willing to make that kind of commitment, then how committed are they to the project they want to build?