Wednesday, January 08, 2014

Connecticut's Inherent Corruption #3

10 jobs per year per loan-for a total of $5,150, 000 spread among four loans.  $4,750,000 of these loans are deferred until 2017 and 2018.   Welcome to Connecticut's Department of Economic and Community Development's taxpayer-funded aid program.  Free taxpayers money with liberal repayment terms all for a mere 10  jobs a year being created supposedly.
Connecticut's Inherent Corruption #3 features Back9Network which is a fledgling Hartford-based cable golf network that's received more than $5 million in state grants and loans from Connecticut's taxpayers.   They owe the state a great deal of money.  They were supposed to start broadcasting January 1, 2014 and have not yet.  They are also being sued by one of the their former Vice President's for $80,000 which he has claimed he spent in his own money for the company and apparently was let go by the company.
But to me here the more fascinating part of this issue: The loans, one in 2012 for $750,000 and one in 2013 for $4 million, for which payments are deferred until 2017 and 2018 loans were made under the Connecticut's Department of Economic and Community Development's Manufacturers' Assistance Act program.
Here from the Department of Economic and Community Development website is what it means:
Economic and Manufacturing Assistance Act (MAA) – Incentive-driven direct loans for projects when there is a strong economic development potential
Eligible uses for MAA funds
Planning, including but not limited to: feasibility studies, engineering, appraisals, market studies and related activities
Acquisition of real property, machinery or equipment or any combination, provided such assistance does not exceed the fair market value
Construction of site and infrastructure improvements relating to a municipal or business development project
Construction/renovation/demolition of buildings
Relocation expenses for the purpose of assisting manufacturing or other economic-based businesses to locate, construct, renovate or acquire a facility
Working capital in conjunction with a business development project
Business support services such as labor training, day care, energy conservation, pollution control, recycling and the like, in conjunction with other state agency

I am unclear as an economist as to how these loans and funds apply to a Cable TV Golf Channel.  But again what do I know about economic development and free taxpayers monies.   I do not know how to play Connecticut's "Pay For Play"  Economic Game with Hartford's Omnipotent One Party Rule. 

No comments: