GOED Picks Another Loser: Minnesota Tax Refugee Defaults on State Loans

[TexasTowelie]

For more evidence that the Governor’s Office of Economic Development has no business picking winners and losers in the marketplace, we turn to Donnerite, a Minnesota company that moved to Howard to slurp up GOED business incentives and then defaulted on its $644K in state loans:

The South Dakota Economic Development Finance Authority authorized a notice of default and ‘right to cure’ letter be sent to Donnerite….

Authority members Monday told Steve Westra, commissioner for the Governor’s Office of Economic Development, to take action when he deems it necessary to protect the authority’s interests and to commence a lawsuit “if the default is not timely cured.”

…Owners Bill and Deb Donner moved to Howard from Spicer, Minnesota. They intended to provide services to trucks and heavy equipment in North Dakota’s oil fields [Bob Mercer, “Howard Business Faces Default Notices on State Government-Backed Loans,” KELO-TV, 2019.05.06].

Expert capitalist Russell Olson cheered the Donners’ westward expansion when it was announced, expressing certainty that Donnerite would fill the gap left by the state’s last failed pony in Howard, Knight & Carver:

“Donnerite Company is the perfect fit for Howard and the vacant Knight & Carver building,” said Russell Olson, CEO of Heartland Consumers Power District. “We have been working with state and local officials for some time to fill that space. Bill and Deb Donner have a passion for small towns and have run a successful company for nearly two decades. They will have a positive impact on the community and we at Heartland are excited about Howard’s bright future [Office of the Governor, press release, 2013.12.05].

Read more: http://dakotafreepress.com/2019/05/07/goed-picks-another-loser-minnesota-tax-refugee-defaults-on-state-loans/