We seem to be living in a time when those we elect to take care of business are declining to change direction when needed or recover in ways that protect our interests. The term “double down” has become an annoying cliché in political speak these days. We think it is because public matters have turned terribly personal.
We beg Mayor Wayne Seybold not to pursue such a path with regards to the troubled Earthbound RV business. Earthbound has failed to make payment on a $155,000 loan, causing the city to step in for the struggling company, as outlined in an agreement made with the Seybold administration.
Your local income tax dollars at work once again.
We have concluded that the city should never have backed Earthbound in the first place. We are aware that, at the time the deal was cut, we took the opposite position.
We were absolutely wrong.
We thought that given the choice between doing nothing and taking action, in a time of high unemployment it is better to take action. Clearly, this wasn’t true. We have seen no consistent employment from Earthbound, yet the community is now making bank payments for them.
We will no longer make the mistake of supporting risky ventures with tax dollars when private wealth is all that should be on the line.
City officials should have known better, and we made the mistake of thinking that they did.
The people involved in Earthbound, while honorable, had suffered bankruptcy. The recreational vehicle industry had nearly collapsed following the 2008 financial crisis and spikes in gasoline prices. Banks had turned down financing for Earthbound in the absence of local government backing.
That was smart of them: they are still getting their loan repaid.
Considering that start-up businesses typically fail even when they have the wind at their back, how could city officials not see that this business — luxury recreational vehicles — was no place to put taxpayer money?
Banks make loans. That’s why they exist. City and county governments, here or anyplace else, are not good bankers. Municipal decision makers, as a general rule, do not have the expertise to make good commercial loans. They are using someone else’s money — yours — in a gamble that is truly a long shot. Too often, unlike the banker in private business who makes a bad loan, there is little or no accountability for politicians who dole out government money.
We don’t think this should happen anymore.
It’s time for local governments, and the city of Marion specifically, to walk away from the roulette table … especially where entrepreneurial startups are concerned. Let’s work toward supporting new and current businesses with good, consistent government services, low and stable taxes and good schools.
The city should make an effort to recover the money it is currently losing on Earthbound — including, if needed, going to court.