Politicians and economic development gurus are scutrrying to put as much space between themselves and the company which promised to build a $225 million gas-fired power plant that would generate 171 MW of elelctricity and create 190 good-paying jobs at the Resaca City's abandoned municipal airport.
Apparently, it was too good to be true, or so Michael Rodriguez, the editor of the San Benito News, thinks he found out.
Working together with Buford Davis, editor of the Henderson, Nev. Press, Rodriguez revealed that the building in downtown Las Vegas that was portrayed on the Telemark Development Group Inc., website as theirs, was actually a doctored photo synthetically placed on a building at 2373 Rennaissance in Las Vegas and that the company had never "owned, rented or leased" the property.
"The News traced the physical address listed on Telmark and its parent companies, PowerCom International and FranklinGlobalResources “Contact Us” webpages, which is 850 South Boulder Hwy., #120, Henderson, Nev., to a UPS store PO Box," Rodriguez wrote on the News Sept. 22 weekend issue.The revelations in the daily prompted San Benito Mayor Joe H. Hernandez to issue a statement Wednesday distancing himself and the City Commission from the power plant.
“There appears to be some confusion about the power plant issue and how it surfaced,” Hernandez said in his statement. “The project itself, was proposed by the Economic Development Corporation, and was reported to the media by the same entity. The City Commission had very little knowledge of the project, outside of what was presented in the newspaper articles.”
In response to Hernandez's directive that he issue a statement about the controversy, San Benito EDC Director Solomon Torres issued a statement last Wednesday that said:
“The San Benito Economic Development Corporation is disappointed that the proposed 171megawatt power plant is no longer planned for San Benito by Telemark Development Group. In March, the EDC received developers Peter Del Mastro, Larry Muno, and local representative Ben Neece and gave them a tour of two sites of interest, the San Benito cityowned airport property and the former La Palma Power Plant owned by a private company. The developers were pleased with the airport property and how it fit their specifications for the construction of a natural gas-fired powered plant.
“To identify local investors, the group returned in July and conducted an information workshop in San Benito for potential investors from Mexico and featured attorney Matthew Schulz, who specializes in processing EB5 investor visa petitions for projects in the United States.
“Ultimately,” Torres continued in his statement, “the developers planned to make an offer to the City of San Benito this fall for the purchase of the property. The development group did not plan to ask the City or EDC for any financial assistance or financial participation in the project. The concerns that have been raised recently about the legitimacy of the investors give Telemark the opportunity to respond about its corporate structure and existence. We encourage Telemark to do so and hope that the proposed new power plant becomes a reality somewhere in Cameron County.
As previously reported, Del Mastro has said that Telemark planned to fund the construction of a San Benito power plant by encouraging foreign investors to take advantage of the Employment Based: Fifth Preference (EB-5) federal program, which awards conditional permanent residency in exchange for a $500,000 to $1 million investment in a targeted employment area.
Instead, on September 16, Del Mastro sent Hernandez a letter of Intent/Termination where he announced the company was rescinding the Letter of Intent and memorandum of Understanding with the city and the EDC.
"This letter is being sent to you as formal notice to the City of San Benito by PowerCom International, a wholly owned subsidiary of Telemark Development Group, of it’s intention to rescind the Letter of Intent and Memorandum of Understanding entered into with the City of San Benito on July 19, 2013 effective immediately. This decision was made pursuant to a unanimous vote of the Board of Directors of Telemark Development Group Inc. at it’s meeting of September 13, 2013."
Was Telmark Development Group a fly-by-night operation trying to bilk Mexican investors of millions with the promise of U.S. residency under the EB-5 program?
Or was it a legitimate outfit scared away by the provincial infighting of factions within a small border community?
If the former, the citizens of San Benito are indebted to editor Rodriguez for uncovering the scam before any public commitments were made on their behalf. If the latter, then it may be time to conduct a political cleanup so as not to scare legitimate investors who could have given an economic boost to this Rio Grande Valley burg.
11 comments:
I believe the former is accurate. Under the EB-5 program guidelines, "Create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years." Each investor must put up a minimum of $500K to create those 10 jobs. The project was to create 150-200 jobs. Do the math: 200 jobs divided by 10 jobs created per investor = 20 investors. 20 x $500K = $10M. Telemark has previously stated they raised $5M. Now we're at $15M. Where is the other $200-210 MILLION coming from? The power plant/distribution center project does not create or support enough jobs to raise enough capital to build this project solely with EB-5 money, and Telemark did not provide enough information to make it seem feasible.
You raise a good point, though, Juan. However, when a company photoshops their logo onto a building to feign legitimacy, it's better to err on the side of caution and send them packing than to be embroiled in the middle of another EB-5 scam. Hell, as fast as they ran from SB, it’s a good bet something is rotten in…Telemark.
To 5:15pm
If you would have paid attention you would know the other portion of the project was going to come from private investment obtained by Telemark. Telemark never asked San Benito for a red dime. They wanted to purchase the airport property and develop it. Its been sitting unproductive for approximately 15 years. The EB-5 money was only seed money for initial costs. If you do the math you'll see that the project could have supported at least 15-20 EB-5 investors. Comparing Telemark's approach to the scam operation in McAllen is a joke. There is a big difference between the two types of programs, which was explained in two seminars by the attorney who was going to personally handle the applications with the Immigration Service. The bottom line is San Benito risked nothing. All they had to do was sell the unproductive airport property and gain dozens of jobs and tax revenues and a 3000 seat arena that Telemark was going to donate to the city. Michael Rodriguez never mentioned that, did he? Michael Rodriguez was trying to play Sherlock Holmes and screwed up a good deal for San Benito. Telemark gave references to at least 10 previous power plant projects that it was involved in. Did anyone from the city call any of them? No. Did Sherlock call any of them? No. Either they can pay for the airport property or not, and there are plenty of safeguards to assure payment or return of the property. This pendejo, Rodriguez, screwed his community. Why do people do business in Nevada? Tax purposes, idiot. Its unfortunate that the City fathers listened to a want to be detective, rather than letting the professionals, i.e. EDC, do the job they were hired to do. The public officials buckled under like pussies to this idiot at the San Benito News.
Stumped, as usual.
reminds me of Enron in houston, says very little for the due diligence the edc director dude should have done, guess he is too buzy and dont care or maybe was going to get some kind of payola for this deal who knows, but thats what the SB City officials wanted when they hire him and thats what they got, nothing, heard he is on the way out by the end of the year, from the grapevine, rumor mill etc. dont know if its true or not.
To 4:24pm
You should hope he's not on the way out. He is working against reactionary forces in San Benito. Look it up: Reactionary = A reactionary is a person who holds political viewpoints that favor a return to a previous state (the status quo ante) in a society.
San Benito needs to progress, not regress. What was the risk to the city, anyway?
Anyone company that puts a fake building on their web site is not one we should be doing with.
Stumped 4:12:
What kind of reputable company photographically imposes their business logo onto a building it never inhabited in reality? Who does that?? History tells us wannabes and con artists represent themselves in such manners, not legitimate businesses.
SB News Editor Michael Rodriguez reported with impartiality from the beginning as information was disseminated from EDC and city officials. Some citizens questioned Telemark's viability, and Rodriguez simply conducted his own investigation with information available for city officials to examine all along. Had the city conducted its own background investigation from the beginning, this wouldn't be the controversy it has become.
The EDC "professionals," as you call them, had six months, from March to September, to do the investigatory work Rodriguez did in a matter of days; they failed. For whatever their reasons, they either didn't do the research, did but overlooked their findings, or became complicit with the scheme. Rodriguez didn't screw this community he saved it from its officials. What's more, he likely saved potential investors.
Most people are aware of the tax advantages of incorporation in Nevada. If they are conducting business in Texas, tho, they are subject to any and all taxes and expenses as a Texas corp. Hence, your argument doesn't hold water, "idiot."
Did city officials "buckle under," or are they reacting like they got caught with their hands in the cookie jar? Why are they pointing fingers at each other like co-conspirators scampering to get the best deal from prosecutors? Selling each other out is very unprofessional and unbecoming of people who are supposed to be leaders of this community. It is just one of the reasons why the investigative work Michael Rodriguez did is important and necessary to protect this community.
The EB-5 was "only seed money for initial costs?" Let me explain something to you Nevada boys in terms you might understand: In Texas, we don't comp shit. You want to sit at the table with the big boys, you bring your table stakes. Somehow city officials let you ante up and place your blind with money that was not yours; never should've happened. You raised the stakes for all to see the flop that you got to see with house money. When we all saw the flop and knew you were holding nothing, you folded and ran from the table like the pussies you claim our officials to be. Didn't even try to sweeten the pot for the turn; just walked when your bluff was called.
Son, that's why the game is called Texas Hold'em, not Nevada Hold'em. C'mon back if you ever want to try again. Next time, at least bring table stakes and a better game.
Great points, RSB. They are scrambling like RATS! There was a BIG score in it for someone along the way, you can be sure. One point to consider...sometimes the BIG rats and masterminds just sit back and watch the others scramble. Take a look at those that have been quiet on this issue as well.
I've heard the term 'drug corridor' used more than once lately???
Just food for thought.
well written, I couldn't have said it better, I'm starting to think your the editor from sb news. if you are good job on the reporting. I think 4:12 is telemark or the edc. Either way, all of them suck, including sb officials.
HUM, my guess is the SB EDC director is too busy either with his company soluciones or just too much traveling to many conferences to have a little time to check out references on this telemark company. very busy, very busy???!!! $$$5&&&& rats
how come the sb officials city and edc dont let the progreso mayor and his gang show SB how business is done???? maybe they can learn a lesson or 2.
POP, GOES the WEASEL(s) !!!
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