From the Beaufort Observer
We here at the Observer have contended for
sometime now that care should be taken by government officials before
they take risks with taxpayers' money. We think economic development
incentives can be a good and effective way to promote economic growth
and development but that no all such grants are sound.
currently researching one such grant. That is one that was obtained to
run a sewer line down River Road to service an expansion of the Carver
Machine Works facility. The grant was supposed to create a prescribed
number of jobs and when Carver failed to do so the state refused to
disperse all of the promised grant money. The county and City of
Washington taxpayers were stuck with some $200,000 in "clawbacks."
not finished the research on this project but what we have already
learned is that it was not a good deal. The primary reason for this
assessment is that the officials who negotiated the grant and the Board
of Commissioners and City Council failed in a simple, well accepted
strategy in such undertakings: They failed to secure adequate
collateral to cover the risk. When Carver fell short, Carver had no
obligation to cover the clawback the taxpayers were forced to swallow. More here.