Booth Criticizes Sweetheart Loan for Carney’s Company
Oct 19th, 2009 by admin
UPDATE: The NRCC blasts Carney.
“Memo to career politician John Carney: public service is about helping the people you represent, not enriching yourself. Carney’s stealth solicitation of $350,000 in taxpayer money for his own company betrays a degree of arrogance so staggering that it raises troubling questions not only about his judgment, but his integrity. He owes struggling Delaware families an immediate answer to the question they’ll soon be asking: what was he thinking?” - Andy Seré, NRCC spokesman
Letter to the Editor from State Sen. Joe Booth:
The recent application by DelaWind, LLC for a $350,000 state loan should require more scrutiny from public officials and DEDO’s Pre-Venture Fund Board, given the fact that DelaWind is a corporation headed by former Lt. Gov. John Carney and has been in existence for less than one year.
Three hundred and fifty thousand dollars is a lot of money to invest in the development of offshore wind power, an effort that has until now been conducted by the private sector and without the use of taxpayer money. It would seem that this application really lacks sensitivity to State workers who lost 2 ½ percent in pay this year, as well as other Delawareans struggling in this economy.
The current Administration promised change instead of the same old political payoffs and “business as usual” in bad economic times. The public might well perceive this proposed use of taxpayer funds as lining the pockets of former officials who are now running for another office. While it may be the view of some, that’s not my definition of “growing a Green economy”.
In the past, I have defended the strategic development fund to help Delaware businesses compete with surrounding States, but this particular project is a highly suspicious use of taxpayer money. The mere request and the asking of consideration are offensive to the public that takes note.
The DelaWind application for a loan of $350,000 from the Strategic Fund was originally on the Agenda for a meeting of DEDO’s Council on Development Finance scheduled for Monday, October 26. Interestingly, since I inquired about the application, it has been removed from that Agenda, but now may be shifted to DEDO’s Emerging Technologies Pre-Venture Fund Board agenda for its’ meeting the very next day, Tuesday, October 27.
I hope this Administration sticks to its promises of transparency and withdraws this application promptly. If this thinly veiled political pay back for a former Lt. Governor and current candidate is approved, you can rest assured more of our hard earned tax dollars will be funneled to politicos rather than businesses which truly make a difference in the lives of Delawareans.
Joseph W. Booth
State Senator
19th District
Dave’s question: Setting aside the cronyism, the ‘booby prize’ aspect of it and the quality of the application, who loans money to a guy who’s going to be doing something else for the next 12 months?
I can’t tell you how much this ticks me off if it’s true. I deal every day with local startups and established small businesses who have no access to capital to hire people with. For the skids to get greased for Carney, for an enterprise that has dubious long-term prospects is a pure outrage. I could easily find 10 good, local business plans to fund for $350K.
Shameful of true, and more evidence of continued cronyism.
Loan approval checklist:
Business with no track record? Check
Emerging, unproven technology? Check.
Company president with no business experience? Check.
I can see why this one went to the top of the pile. Can’t wait to see the application.
The guy was finance director for the entire state. Experience managing the finances of a multi-billion dollar enterprise may count for something. We have loaned to other emerging businesses in the state, that is how you build a new industry instead of spending tens of millions in an ill fated attempt to keep GM or Chrysler.
Anon, I don’t see your point.
Now Dave’s point is more interesting. 5 to 10 businesses could have been jumpstarted for the price of this one. Is it political cronyism? It is a legitimate business and a man with the connections in this state always beats out the man without. The Democrats have made this state operate like a banana republic. It is par for the course. I no longer expect better. It does not even raise my outrage if it is a legitimate operation. I do not know what that says about my level of cynicism.
I am just planning for the day when we have our turn to do it right and I pray that we don’t fall into the same games.
My point is that this loan application would be laughed out of any bank in America.
If this was a Republican, it would be a huge deal. Look at the outrage about the fry machine. This is 1000 times worse.
“The guy was finance director for the entire state. Experience managing the finances of a multi-billion dollar enterprise may count for something.”
I disagree Dave, The previous Budget Director JJ Davis one time described her job to me as managing a whole bunch of Checkbooks and she is correct. I would not underestimate the accounting skill required to hold the position but it is not the same as the entrprenurial skills required to successfully initiate a start up business of an financially unproven industry. By the way how much of his skill will Carney lend to this enterprise if he is running for or serving in Congress?
Oh, I get it in the Chicago thug corrupt Obama administration ONLY businesses with a Democrat Congressman as an investor will get the government capital to succeed.
It looks as if the Carney - Minner - McKinney approach to economic Development is alive and well in the Markell administration.
Just a quick point. One could easily have the same argument of Blue Hen Promotions, and all the money thats been funneled to it, but that company is owned by a republican legislator.
Blue Hen Promotions made the front page of the News Journal in an investigative report by the paper’s top dog. And they provided goods for every dollar they received. No grants. No loans.
A Democratic administration backs the risky business venture of his party’s Congressional candidate with state money? If they were Republicans it would be front page NYT and people would be calling for indictments.
You are right on anon. The hack job done on Blue Hen Promotions was a disgrace and RSC357 is either a Dem shill or woefully ill informed. No money was “funneled”. The State bought stuff from a vendor.
[...] Carney, who is running for Congress, is head of Delawind. Some are putting two and two together and getting their signals crossed to say Delaware is loaning Carney money to run for [...]
We must shut down this sweetheart loan program immediately. Who else is getting this pork?
I agree. Shut all of these loans down. 90% of these applications would get (and probably have gotten) laughed out of a bank.
By the way, here’s the original agenda for Monday’s meeting:
Council on Development Finance. The Delaware Economic Development Authority will conduct a public hearing on Monday, October 26, 2009 at 9:00 A.M. at Buena Vista. The following projects will be discussed:
1. The Independence School Project – In 2003, the Applicant received industrial revenue bond financing in the amount of $8,250,000 through The Delaware Economic Development Authority. The Independence School is requesting that DEDA issue new bonds in connection with the redemption of the 2003 bonds.
2. Sanosil International, LLC – The Applicant is requesting a loan in the amount of $750,000 from the Delaware Strategic Fund program. The Applicant proposes to use the proceeds to hire additional resources, expand marketing and sales activities and fund core operations for its patented ecological disinfectants. Sanosil International is currently located in Newark, Delaware.
3. PTM Manufacturing, LLC– The Applicant is requesting a loan from the Delaware Strategic Fund in the amount of $1,000,000 to be used for working capital and for the expansion of its green energy conservation, patent protected “HVAC insulation” product. PTM is located at 400 Bellevue Road in Newark, Delaware.
4. Delaware Economic Development Office – The Applicant is requesting a $1,000,000 allocation from the Delaware Strategic Fund to be used as matching funds for a proposed grant from the U.S. Economic Development Administration to create the Renewable Energy Facilities Revolving Loan Fund.
5. Elcriton Inc. - The Applicant is requesting a matching grant from the Delaware Strategic Fund under the Delaware Technical Innovation Program in the amount of $50,000. The Applicant proposes to use the proceeds in the continuing development of “platform” bacteria strains that are suitable for industrial scale fuel-alcohol production from sustainable and environmentally friendly feedstocks (bio-based fuels). The business is located at 15 Innovation Way in Newark, Delaware.
6. DelaWind, LLC: This Wilmington based firm has applied to the Strategic fund for a $350,000 loan. The applicant is seeking these funds to continue core operations, to raise additional funding and secure Federal loan guarantees, to start sales and marketing efforts in the onshore and offshore markets, to complete wind tower design and engineering and to prepare for facilities expansion to accommodate tower fabrication.
Not to mention the NRG application which was removed from the agenda along with Elcriton and Delawind.
Them too. That’s worse than the Carney thing.
I wonder who tipped off NRG that there was about to be some scrutiny brought upon this loan program.
One question that’s going to have to be asked sooner or later: is the Markell administration as ethically compromised as the Minner administration was?
<i.One question that’s going to have to be asked sooner or later: is the Markell administration as ethically compromised as the Minner administration was?
The format of your question is inherently sleazy:
“Do you beat your wife as much as your predecessor?”
Besides, your question has already been asked. Asking it repeatedly is a sign of loserhood. If you have any answers, cough ‘em up, along with your evidence and your best arguments. Lay it out or shut up.
Well, they avoid FOIA requests until they’re publicly called on them, there’s the Vince Meconi situation, they’re giving state money to Carney and Venables’ neighbor, and G-d only knows what we don’t know yet.
I’ll agree that the Minner standard is very hard to reach, but there appears to be plenty of that stink leftover.
If it wasn’t Delaware, this story would be beyond belief.
Inspector General anyone?
Mike Protack
Yea Tenn. walker, being chair of the money committees had no influence with the state using his company exclusively. It was just a coincedence. Get a clue.
RSC357
Blue Hen Promotions dealings with the State predate Oberle’s tenure as the joint chair of the JFC (He was joint chair along with Nancy Cook whose son is Deputy Secretary of Finance)
There is no exclusive contract. Get some facts and not some weak, lame talking points from the DSC.
Gosh, if I’d join the Democrat party and become a good servile member would I get a check too? I figured Democrat control would bring an expansion of welfare but 350 grand would buy quite the pile of chicken wings and beer.
Minner, Meconi, Carney and DPC…what do they all have in common? Corruption. That and they are all now Markell’s problem. Some he created, some he inherited but the fact is he is doing NOTHING to fix ANY of them.
He PROMISED not to hire Meconi, then he hired him but SWORE he would make small potatoes, then they paid him big bucks but he SWORE for only a short time, now the guy’s got a job for life with the stimulus money coming in. - Shameful
Carney loses to Markell in the primary, is running for U.S. Congress and now his less than 1 yr old wind energy company is looking at nearly half a million in startup capital? Has or will Markell throw Carney under the bus where he needs to be or will he stay silent like he has about the disaster that was Ruth Ann Minner? - Time will tell
Hmmm…. Democrat, scandal, 100 percent Obama approved
and not a word from DP about the Rs and the wasteful spending with all the travel that the Rs have spent?
John Carney’s loan is 40% larger than the total legislative travel expense for three years. Nobody cares. I’m with Al Mascitti. I’m surprised it’s so low.
and its also larger than the french fry fiasco, but you knuckleheads beat that horse to death? (no pun intended tenn. walker) As a taxpayer it still pisses me off that your “budget hawks” like Miro, Stone, Simpson, Hudson are “pimpin all over the world” like Ludicris.
You mean “As a Democrat…”
“and its also larger than the french fry fiasco, but you knuckleheads beat that horse to death?”
The french fry fiasco was also for a Democrat. Bob Venables. I’m so glad Delaware is using it’s dwindling funds to create companies for Democrats.
I’ll go out on a limb here and say that the Carney Scandal, the French Fry Fiasco (nice RSC) and the World Travelers are all ridiculous. No one is safe here and it’s time to stop ALL of this nonsense. Any dollar WASTED is a dollar STOLEN.
Carney’s scandal AND the French Fry machine are in a little bit different league because of the political ramifications around them. It “pisses me off” as a taxpayer to know that Carney, a Democratic primary loser for Governor, former Lt. Governor in the Minner administration (arguably the worst in the history of the state) and current candidate for the U.S. House of Representatives would come to the State of Delaware looking for a hand out for a startup company that is less than 1 yr old.
Separately, it “pisses me off” as a taxpayer and someone who had previously respected the Senator in question, to learn that a French Fry vending machine was at the center of a controversy involving any number of sweetheart deals and promises.
Carney may not be related to someone in government but he’s guilty by association in this case. He’s less than a year removed from his term as LT. Gov. and asking for taxpayer money. Stop nepotism.
Evan Q, great points. Does it “piss you off” to learn that Lofinks college was paid for by your taxpayers dollars, although he gets a free pass here at DP?
Delaware, a state that cut employee pay and frantically expanded gambling because of its dire financial condition wants to give $350,000 to a company that has no website, no phone number, and no employees other than two or three executives, and suddenly Democrats are all for “corporate welfare.”
Carney’s company should be called Delawindron.
RSC - I’m assuming this has been proven (I read about the embezzlement) and yes it pisses me off. It’s a travesty.
You may have me confused with a GOP hack. I’m not. The Delaware GOP has plenty to answer for and I’m not 100% convinced it’s salvageable but I think it’s a little closer to where the Founding Fathers stand so I do indentify more closely with them than the Democrats.
Crooked, don’t forget the same state gave the new Governor a 29% pay raise….presumably so he could give back 20% and pretend like he took a paycut.
RSC357, that is a silly game. Lofink was charged and convicted of criminal activity. This happened a couple of years ago. He was a low level employee who did something that we already have laws against and went to jail for it. The public also was able to go for whatever restitution it could recover. We have no complaint with the state going after Lofink, and it has no public policy significance except that the procedures were way too lax with too little oversight.
I think Lt. Gov. Carney would resent being compared to a convicted criminal.
The problem with this is that there is no recourse once it is approved. It is not illegal. The question is should it be done. The only way to stop it is to talk about it. Talking about something two or three years ago that we all agree upon and that has already been resolved to our liking has no bearing.
The only reason your point is worth addressing is because a commenter did not know the details.
David - Carney IS stealing taxpayer dollars in this instance (presumably to free up cash he can use to finance his campaign) so I wouldn’t worry too much about what he would or would not resent. As Lt. Governor he was woefully deficient in holding Minner accountable for the outright disasters she wrought upon the state and he did nothing to try and stop her destructive policies.
Talk about 8 years of failed policies, all backup up by John Carney Democrat for Congress.
Carney IS stealing taxpayer dollars in this instance
Mark the date, we now officially have Carney Derangement Syndrome.
Tell me you wouldn’t say the same thing if this was a Republican former Lt. Governor who helped the previous administration bankrupt the state government…was now running for Congress and was seeking nearly half a million dollars from the state…..
The fact is the only difference between me and you is I can admit it when BOTH sides are sleasy on the edge of criminal.
I didn’t say his loan should have been approved. Frankly I haven’t been following the story that closely. But applying for a legally available loan, from a fund designed exactly for that purpose, is not “stealing.” That is CDS.
Actually if they failed to apply for the loan because of the COO’s political plans, the company investors might have a legitimate gripe.
noman -
A man less than a year out of being LT. GOVERNOR…who is already signed up to run for Congress…a company less than a year old with no real accomplishments or promises…and we’re not supposed to be outraged that they’re asking for nearly half a million dollars in TAXPAYER money?
Like there is no way that he could get that deal sweetened?
David, let me bring you up to speed. I’m not talking about Lofinks son stealing a million bucks 3 years ago. I’m talking about Lofink the Rep. that had his college paid for by the House of Representatives! This is far worse than Carney because it benefitted Lofink personally. Please read the news sometime, and stay current before commenting.
RSC…would you mind sourcing that? I’ve actually looked around and not seen anything but the Lofink theft…I’d be interested in hearing more.
Democrats are anti-education now? I’ll pay for the entire House membership to go back to college if they promise to enroll in economics, finance, history and ethics courses.
*American History anon…taught by a Constitutional scholar
“But applying for a legally available loan, from a fund designed exactly for that purpose, is not “stealing.” That is CDS.”
Maybe not. But if Carney had contact with officials on the matter, isn’t he an unregistered lobbyist then?
Evan, it was in the NJ’s expose’ of the legislators travel story. I’m hearing rumors that they was never a policy for this.
Hello from Russia!
Can I quote a post in your blog with the link to you?