By Fred Kirby
Thanks Commissioner Bob Main for safeguarding citizen’s assets. This county citizen was surprised by the published 19 September letter from John L. Knutson, President of Knutson Towboat Company; subject – mining company ORC. Wow! This letter, from a person who donated $1,000 directly and $1,000 indirectly (through CCAP) to the campaign of commissioner candidate Messerle, takes an unwarranted and vicious swipe directly at Messerle’s competitor, Bob Main, and indirectly at former county commissioners. Knutson blames the county (that’s you and me) for placing ORC “at potentially serious financial risk”. Wrong! Where’s the paid ORC spokesperson? Unintentionally, Knutson acknowledges that Main understands his fiduciary responsibility and puts the interests of his constituents first. Main provided a response in the 26 September paper.
ORC is a wholly owned subsidiary of an Australia based company. The parent and subsidiary have apparently been losing money for many years (about $4 million last fiscal year). Company stock is trading near 4 (Australian) cents a share. Company Officers and Directors own hundreds of millions of shares or have unexercised options (many exercisable between 6 and 35 cents) in the company that may be worthless. The company was successful securing a loan from an Australian financial institution (US $5 million) last month. They have no apparent problem meeting huge management salaries. And, of course, a company that appears to be on the verge of financial collapse must expect to pay the exorbitant 18% interest, plus 1% royalty on gross revenue, being charged for the loan.
If there was a strong world – wide market for chromite; if established mining companies believed that there was money to be made from local chromite mining; the major mining companies would be climbing over each other to negotiate better deals with the county. Apparently to gain sympathy, Knutson tells us that ORC has invested $100 million in our county. Say what? Where? The investment last reported was $30 million and the ORC web site says $60 million eventually. And, that’s investment in company business operations – not in the county.
Knutson wants us county taxpayers to help bail out ORC. Neighbors, we have been bailing out GM, Fannie Mae, Freddie Mac, Wall Street investment banks and other financial institutions, and solar panel companies. We send our tax monies to SCDC, and as economic and military aid to countries that have recently attacked us. Enough! Contrary to what Knutson states, the county has no obligation to negotiate any lease with ORC or to help ORC “effectively market their product” or “to raise the capital necessary to fund their operations”. Let the government of Australia help the Australian company stay afloat.
I welcome ORC to the county. I wish them success. They have received tax relief that most local business would love to have. I wish that no person was ever laid off. Been there – twice. But, why should we, the owners of Coos County, guarantee anything to help the parent get lower interest loans? Why should we be doing business with a company that cannot guarantee us that they will be around for the life of existing mining contracts?
The views expressed do not necessarily reflect the opinions of MGx.
For a guy that “understands his fiduciary responsibility and puts the interests of his constituents first”, Bob Main has been very, very silent about his role in letting Solid Waste go south. letting the IT department nearly fall over, and pulling that grand-standing stunt over the Road Department cuts. While asking the county employees to “be patient” for their raises he had the gall to hire a friend to do part-time County work at $50 an hour. That’s $104,000 a year at full time.
Bob Main’s a politician. He sits on the sidelines when it benefits him personally and takes a stand when the wind changes directions. He’s the same guy that threw a temper tantrum when his budgets were cut in 2007 – the only County manager to do so (the rest took their lumps and got on with their jobs). And how did he demonstrate his responsibility to his constituents? He closed the Assessors office doors for half the day.
G’Day Mate! Well said.