Dawn Elsbree’s ‘Listening Tour’ mostly hearing from same old establishment
By Charles Douglas
Humboldt Sentinel
With criticism mounting over the failure of the Headwaters Fund Board to create jobs, their response is to engage in a protracted bout of listening. As a result, their head staffer is headed to Eureka City Hall on Tuesday to deliver the results of a peculiarly one-sided conversation concerning local economic development.
Coming off of a series of swipes by the Humboldt County Grand Jury concerning the cozy relationship between the Fund Board and the Community Development Department — which both overseas the staffing of the Headwaters Fund and occasionally receives grants from their pot of money — Fund Coordinator Dawn Elsbree is tasked to explain to the Eureka City Council why her Board isn’t so out of touch with the needs of small business.
“The vast majority thought we should be supporting our entrepreneurs — both the successful companies already here and new start ups,” Elsbree stated in her executive summary. “The most frequently cited supports requested were: pre-permitted land for business development, industrial parks, incubators, in particular a high tech one, access to low interest capital, and mentorship programs for businesses.”
Elsbree claimed to have interviewed over 100 business and community leaders from April to August of this year; while supporting new businesses is often cited by the Headwaters Fund and the Economic Development Division of the county in general as vital to future economic growth, very few of the individuals listed in her interview list actually fit that description.
Ironically enough, Elsbree said a unifying concern of her survey was a political climate described as divisive, with a vocal minority controlling processes — yet her interview list appears to be a roster of insiders, from Supervisors Virginia Bass and Mark Lovelace, to Security National billionaire Rob Arkley, to an assortment of high-level bureaucrats, bankers, realtors and financiers. The only journalist interviewed was Hank Sims of Lost Coast Communications, a company controlled by Blue Lake Casino and by Patrick Cleary, a former executive at Chase Manhattan.
“People feel that the moderate majority has become disillusioned and checked out of decision making processes and are no longer heard,” Elsbree went on to state. “The request is for politicians to take a stand in helping to create a unified vision that the community as a whole is behind and becomes the tool for shutting down the extremes.”
One pointed criticism of the Headwaters Fund that made it through Elsbree’s filter was the lack of access to low interest capital. Gap loan funds available through the Headwaters programs with Arcata Economic Development Corporation and Redwood Region Economic Development Commission had, she admitted, too high an interest rate, often topping 9 to 10 percent. No solution was presented in Elsbree’s report on this matter.
The Headwaters Fund was established in the wake of the state and federal governments’ purchase of the Headwaters Forest from the former Pacific Lumber Company. To make up for the loss of local timber jobs and property tax revenues, $22 million was set aside for local economic development, and the Board of Supervisors adopted the Headwaters Fund Charter in 2002 to provide for semi-independent management of the fund.
Elsbree’s report came with zero comments from Euerka City staff, and is set to round out the end of the evening’s City Council meeting, which starts at 6 p.m. on Oct. 18.
In addition
Councilmembers are also looking at a big-ticket public works contract, as the 1950-vintage water reservoir is in dire need of maintenance. The low bidder on the contract is Farr Construction of Sparks, Nev. to re-coat the roof structure of the 20 million gallon tank; this will require $250,000 from city water reserves as part of a $1 million bid.
In his end-of-meeting report, City Manager Dave Tyson is recommending the scheduling of a future meeting to discuss campaign financing — the prior City Council adopted an ordinance implementing a $500 cap on campaign contributions, although this law only took affect after the conclusion of the 2010 City Council campaigns for the Mayor and Councilmembers representing the first, third and fifth wards.
“The request is for politicians to take a stand in helping to create a unified vision that the community as a whole is behind and becomes the tool for shutting down the extremes.”
That quote must have originated with Arkley, right Dawn? We won the last election, therefore anybody who disagrees with us has a minority stake that must be ignored for the greater good of the majority.
What an arrogant statement!
JJ, I think you’re onto something.
That statement stands out like a sore thumb. Given some of the details in this article, the sentiment– without much of a construct around it– should make one wary and very suspicious.