Dear Editor:
Would someone please explain to me why the City Council is so hell bent on getting Tesla Motors into Downey? I don’t like their childish way of announcing where they will go – Downey or Long Beach.
The biggest factor to me is that they are a consistently losing company. Since opening nine years ago, they have lost an average of $26 million a year. Maybe to our City Council that is not a lot of money, but it sure is to me.
No thank you for me.
— Doris Hannon,
Downey
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Published: February 5, 2010 - Volume 8 - Issue 42
Downey was such a simple place to grow up, when Tarzan Books were banned in the City Library and citizens complained because the City wanted to put in sidewalks....
I know a little of what I am talking about since I have been in the environmental consultation business for a few decades. In fact I worked with one of the consultants on the project in 1990.
There is no way a brownfield site vintage WWII will ever be converteed into a State-of-the-Art "green" facility without a lot of money being dumped into it. The damned roofs leak like a sieve!
Also the Boeing/Rockwell/NAA site was contaminated but has undergone one of the best clean-up efforts of a site of it's nature. To say it's still contaminated today is likewise "snake oil".
So much negativity on what will be a monumental gain for Downey.
The former Alcalde said that the Manufacturing will be " one of the most green buildings in America". I doubt that short of razing the entire complex that a post WWII can be retrofit to 21 century "green" standards especially on a barely controlled brownfield site. Do you know what they are using to abate the toxic soup in the groundwater? MOLASSAS. Yes the same stuff grandma made her cookies with, and the last report I read was dated June 2008 (geotracker database http://geotracker.swrcb.ca.gov/).
And the City of Downey bought this toxic soup, and took on the responsibility for cleanup.
Remember Delorean? Well, he had the right idea and product, but was not able to market his car due to financial issues, resulting in the collapse of his company. Now, I am sure that the Irish goverment was not too happy after providing the facilities and manpower to build his car.
While Tesla is doing due diligence in selecting a site, I would recommend that Downey also does its own due diligence on the viablity of the project, focusing on both technology and financial issues. We know that Tesla was promised funding from the Federal government. I don't know where the funds are, if they are already in Tesla or still with the Feds.
If we are just interested in selling them a vacant lot or building, then let's do it as a real estate deal. However, if we want the jobs to stay and be meaningful, Downey needs to look deeper into the details of Tesla project and then decide if this will be good for Downey.
We don't have to be negative, just careful.
its natural for a company to take on debt and lose money when its developing a new product. by all means, tesla's financials will probably get worse before they get better (since it will discontinue the roadster next year). however, as an investor, you have to look at the long-term viability and the core products of the company. if you think the company will fail then don't invest in it, simple as that.
Doris and Thomas, from my understanding they are doing their due diligence in picking the site. as none of us work for tesla, it wouldn't be right to assume the reasons why. if you dont know, maybe you should start by asking "why". Go to the council meetings, the Pac meetings, call city hall, or your city council member. I've gotten plenty of answers to questions, and i'm sure you would too.
I don't know if either of you own businesses but i give all the credit to business owners and investors out there creating jobs and finding opportunities. It takes a lot of guts, motivation, work and POSITIVE thinking to start a business. i give a lot of credit to tesla for taking on such a HUGE undertaking as building a new car from scratch. just to put things into perspective, tesla will be the first american car company since ford, in 1956, to go public. It's a new company and its a radically new product. Of course its risky, but thats business.
Thomas, I would be more welcoming to people and companies that plan on investing money and creating jobs in our community. Let's not be so negative!
JOBS
JOBS
JOBS
THAT'S WHY!
And if you have read any of my letters to the editor of this newspaper you know what I think of the Downey brand of snake oil put out by the city council and the former Alcalde (I am a fan of Zorro!)!
Let's face it Tesla is building a house of cards on borrowed money to manufacture an unproven and posibly unmarketable car. And this in an unsettled economic climate in a state out of control in trying to drive out manufacturing. Remember, all the parts in this jalopy will have to be manufactured also. And what if the parts become un-obtainable due to the restrictive nonsense of the state legislature?
Elon Musk should go back to South Africa and build his car there.
Thomas D. Smith
The reason we are so excited about Tesla coming to Downey is the jobs for our city. They will create between 1200 to 4000 jobs in our city and region. This really is a fantastic opportunity for the long term benefit of our city and citizens. This is exactly what we need now and for our future. High tech, well paying jobs in Downey.
And this will be one of the most green buildings in North America.
Tesla coming to Downey is a great thing for many reason and that is why we are so excited. We work with them on a daily basis.
BTW, their finances are not paid by the city in any way and most start up companies lose money in the first few years. But they just received a $ 400 million loan from the DOE and are looking at a $ 100 million IPO offering...
The technology and advances and benefits that they bring to the Downey Studio / NASA site are too many to list here.
I welcome the opportunity to let you or anyone else know or explain what is happening and why. Things are moving well for our city and Tesla and there are reasons for everything happening. It is all good for our city and residents. Our staff and council have worked very hard and we are looking forward to making the formal announcement in the near future.
Feel free to write me at city hall at mguerra@downeyca.org
Mario A. Guerra
Downey City Council