Let me get the requisite phrase out of the way: "I am business friendly. I want business to grow and flourish in Long Beach." Ok.
Now that the wheels have been greased in the local media (except for LA Times which did a feature a week ago indicating that Worthington Ford grossed $600 million in 2002 and did so well last year that they want to buy another dealership) for the Council to vote to approve a $600,000 loan (most likely forgiveable... which I cannot find is permissible under federal law) to retain 116 jobs (only 20 of which are Long Beach residents) at the current dealership, I ask you: what self respecting legislator would approve this deal without reading the CDBG requirements for job retention loans?
For your reading pleasure, I am posting an excerpt from the requirements that show a number of formulaes required before these funds can be used for job retention -- not least of these is the requirement that the local government pledge non-CDBG funds as well.
I haven't seen the loan application, nor calculation of the formulaes which would ok the loan, nor the financial information of the recipient which is required by law, nor where the City is getting non-CDBG monies to help this project. But maybe all of that will be cleared up before this deal is voted on by the City Council. Ooops. The vote is scheduled for tomorrow.
