No to Tesla
Feb 05, 2010 | 1592 views | 12 12 comments | 7 7 recommendations | email to a friend | print
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

**********

Published: February 5, 2010 - Volume 8 - Issue 42

comments (12)
« Thunderchild wrote on Tuesday, Feb 09 at 04:39 PM »
I have no interest. I will not get involved on an ongoing boondoggle which I am sure would be buried like other politically hot items such as the gunning down of unarmed citizens by our police department, the traffic death traps approved by our public works departments, the attempted give away of City land to Krekorian Theater, and other issues I have brought up from time to time in the Patriot and it's predesseeor the Eagle.

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....
« moeferrara wrote on Tuesday, Feb 09 at 03:50 PM »
Alright Thomas, since you seem to "know so much" why don't you go to a meeting and challenge what the city has been saying about their safety of the site? Or better yet, actually show us here. If there's still problems shouldn't they be public?
« Thunderchild wrote on Tuesday, Feb 09 at 03:33 PM »
The facts speak for themselves, the Boeing/NASA site is not cleaned up, there has been no closure on the site and documentation as to the "progress" on the cleanup stops in June 2008.



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!
« moeferrara wrote on Tuesday, Feb 09 at 03:23 PM »
Tesla *is* the way of the future. To say that they are making an unmarketable product is to show how much you know about the auto industry. The Tesla Roadster was instrumental in finally causing the comeback of the all-electric car, and the Model S is simply a continuation of what was a successful and more importantly, *profitable*, experiment that was the Roadster.

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.
« Thunderchild wrote on Tuesday, Feb 09 at 10:59 AM »
Yes The Boeing/Nasa site is notoriously contaminated, and movie production no doubt ceased as workers refused to expose themselves to toxic chemicals!

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.
« kbandell wrote on Monday, Feb 08 at 04:25 PM »
...as I recall, the site on which Tesla is/was ostensibly planning to manufacture goods is a site which is notoriously toxic (although the etiology of the toxicity remains, again as I recall, unclear)....I remember reading an article to the effect that even in a slow market and because of issues of toxicity, certain production crew members refused to work on site at the Downey facility....elucidation of this issue would be appreciated....please advise....in peace....
« jdejoya wrote on Saturday, Feb 06 at 10:11 PM »
Doris and Thomas may be right in their assessment. It does seem odd to me that Tesla is wants to build this rather expensive electric car here in California instead of low labor cost state like Alabama. Maybe it is a matter of convenience for Elon Musk since he also owns SpaceX which is located in Torrance. Whatever Tesla's reasons are, I believe that it is still a high risk venture. Even if Tesla comes to Downey, I seriously doubt that the jobs created would last. With all the electric cars coming into the market,competition will be tough. I also believe that their battery technology has not been properly resolved. Their current prototypes run on laptop batteries ganged together. I have not seen or heard any news that this critical technology has been resolved.

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.
« moeferrara wrote on Saturday, Feb 06 at 10:12 AM »
Someone actually has to explain why we want Tesla here to you? Oh...my...gosh.
« georgemanzanilla wrote on Friday, Feb 05 at 02:46 PM »
they are rightfully hell bent on getting tesla into downey because its a GREAT opportunity. I dont know if you've been to Downey studios, but the buildings are EMPTY. nothing is being produced there on a consistent basis. movie crews don't even frequent downey businesses.

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!
« maryadriel wrote on Friday, Feb 05 at 02:17 PM »
You must have a job, but there are plenty of people in Downey & the surronding area that need jobs. Tesla is bringing a lot of jobs with it & they plan to hire locally.

JOBS

JOBS

JOBS

THAT'S WHY!
« Thunderchild wrote on Friday, Feb 05 at 01:37 PM »
I agree with Doris Hannson there is some snake oil being sold to the citizens of Downey. If Elon Musk would quit playing games and come out and announce the final site fine, but his snake oil has left a sour taste in my mouth.

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

« bruins80 wrote on Friday, Feb 05 at 09:29 AM »
Dear Ms. Hannon,

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
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