The Standard Times reported:
What began as a promising multimillion-dollar economic venture to
generate hundreds of wind energy-related jobs in San Angelo turned into
an undertaking that blew south.
The city of San Angelo Development Corp. and the city are seeking to
recoup more than $2.7 million in damages, attorneys' fees and minor
costs resulting from a 2009 investment to bring a wind turbine tower
fabrication plant to town.
COSADC and the city hope to recover the money through a summary
judgment hearing scheduled Wednesday in the 119th District Court and
avoid going to trial.
The City's press release cited the difficulty
negotiating with a private equity owned company.
Negotiating with the
private equity hedge fund that today controls Hirschfeld is more challenging than
partnering with local ownership with whom the City has had close personal and working
relationships for decades.
Texas politicians, starting with Governor Rick Perry, trained PEU owners and affiliates that public money was loose and nearly free.
"The City and the COSADC could not agree to a minimal repayment," the
release stated. "Doing so, and allowing Martifer-Hirschfeld to walk away
with millions in taxpayer dollars, would constitute a serious breach of
public trust."
It's hard for
Insight Equity to monetize Hirschfeld with a multi-million dollar lawsuit hanging over its head. The City of San Angelo is the first I've come across that cited a PEU owner in suing for economic nonperformance. I hope it becomes a trend.
