This editorial in today's Journal Star states what I have said in at least 10 blogs; namely that when it comes to spending money where the need is to "rob Peter to pay Paul", politicians can't say no. The paper points out that the City Council DID say no to Cullinan Proprieties request for a low interest loan of $675,000.00 for a construction project that supposedly would bring more business to downtown Pekin. A business that would compete against other competitors who received no low interest loans when they started up year ago.
Against the City Manager's strong recommendation. Good for the council to stand up against blackmail attempts by wealthy businesses to get money from the taxpayers rather , as the Journal Star says, from local banks like they used to do.
However, I don't recall the Journal Star protesting the building of the RiverPlex that took and takes business away from a number of health clubs that pay taxes. The RiverPlex, owned by the Park District, doesn't pay taxes and missed their financial projections by a country mile.
Why use their credit line at banks when the politicians are so pleased to act as bankers with taxpayer dollars? Look at taxpayer money lost when Peoria County and the City of Peoria, with pressure all the way from Springfield, lent money to soon to go bankrupt FireFly. And on a National level, who can forget the Solyandra (sp) scandal and dozens of other business that borrowed large sums of money from the Obamanites only to go belly up.?
I recall years ago when Dianne Cullinan (now Oberhelman) appealed to the Peoria City Council for an $8 million loan to support the Shoppes. I was one who testified against the loan and the City Council, by a close vote, denied the loan. What happened? Dianne's project proceeded and appears to be a success with a minimum of taxpayer dollar spent, and that, mainly on infrastructure.
Then look how a majority of current City Council members has put the taxpayers on the hook ($37 million or so) for the Marriott project.
The Journal says they believe in capitalism but has the pendulum swung too far? Of course it has. I blogged on robbing Peter to pay Paul many, many years ago. Should Counties and Cities be making loans like as if they are a knowledgeable bunch of loan officers? Of course not. But they say "everybody else is doing it and can now point to Bass Pro in East Peoria. The reasoning is that banks approved these loans. Of course, but when risky loans are made like loans to FireFly, In-Play and Globe Energy , the banks were first in line to get their money back while the governmental bodies were left holding the empty bag.
So everybody is "doing it" and that is anoher prime factor of the sorry financial situation of governement bodies all over the nation and the nation itself.