In an effort to stem the righteous indignation and outrage of the people in Cheyenne County, both the local rag newspaper and radio station have mounted offensives to deflect responsibilities away from Economic Development Director Gary Person, County Attorney Paul Schaub and the three Cheyenne County Commissioners who participated in the EMagine Concepts funding fiasco.
The latest word from KSID Radio news has Paul Schaub now trying to ease the blow to the taxpayer by agreeing with one commissioner's statement that, "If we get anything back on it we'll be darn lucky." Further details about the level of debt that EMagine Concepts managed to pile up show a total owed to the IRS of more than $80,000 in back taxes (which will supersede any other claim), $88,000 owed to Adams Trucking for rent and other fees, plus the forlorn $160,000 owed to the repayment of a loan made by the commissioners last year. This balances with an asset valuation currently being held under lock and key of only $30,000. The mathematical scenarios leading to a recapture are enough to give pythagoras a headache.
Schaub knows full well that the likelihood of recapture of any funds by the county will come at the expense of valued treasure it can ill-afford to expend. Perhaps it would be better for Mr. Schaub to investigate, or cause to be investigated at a criminal level, what appears to be fraudulent financing applications by Erik Mellum and his now defunct company. Certainly criminal consequences should await the leaders of a company that clearly had no intention to make good on it's pledge to repay.
Furthermore, there remains a burden of proof to be borne by those elected and appointed officials of Cheyenne County who failed to properly ensure the protection of the monies advanced to EMagine Concepts. There is evidence that financial concerns were voiced to members of the County Commissioners prior to the authorizing vote. Even after one commissioner expressed concern over the balance sheet and the value of the, "collateral" being offered, Person and Schaub still labored for the approval of the loan.
Shame continues to rain down upon these men, who failed in their fiduciary responsibility to the people they were entrusted to lead. Blame must be most heavily laid at the feet of Person. It clearly should fall upon his shoulders to ensure that the businesses he seeks to attract to the county are financially worthy of the money he seeks to fill their coffers with.
KSID Radio are reporting only a portion of the story. They should be investigating how the process to seek approval of the funds was done. All information related to the discussions between Gary Person and Erik Mellum and the County Commissioners should be made public. It should be done so, not at the request of an official request, but out of a sense of owning the failure of this process and a desire to see a better practice put into place for the future.
If proper and due diligence are found to be wanting in this case, Gary Person should immediately present his resignation letter to both the city and county as economic development director. Likewise, Paul Schaub should find himself in similar arrangements.
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