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Schipske: LB Taxpayers Deserve Full Explanation About Who Or What Killed Deal To Bring Tesla to LB

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  • (Nov. 23, 2009, updated Nov. 24) -- 5th dist. Councilwoman Gerrie Schipske has issued statements on her non-taxpayer-paid internet journal/blog and via email in the wake of news stories (including LBReport.com) indicating that the cutting edge electric carmaker Tesla Motors, may be close to inking a deal to locate in Downey...instead of in LB at the former Boeing site (Conant/Lakewood) in ELB.

    Her blog statement appeared Nov. 23. She also transmitted a somewhat lengthier statement by email on Nov. 24. LBReport.com provides both below:

    [blog statement]

    The taxpayers of Long Beach deserve a full explanation about who or what killed the deal to bring Tesla to Long Beach.

    How did we lose this revenue producing opportunity to Downey? Long Beach has so much more to offer to a business than most southern California locations -- we have manufacturing space at the Boeing site, nearness to freeways, an airport, a port, railroad, convention center, training programs at our local community college and most importantly a workforce ready and willing to work.

    We also have an enterprise zone that provides tax credits for employers. And just recently the City announced it won the 'Most Business Friendly City Award' in Los Angeles County.

    So what went wrong?

    Anyone who has worked in corporate America knows how important it is to develop positive relationships in order to do business, which is exactly what the City of Downey did and the City of Long Beach did not do.

    Unlike the City of Downey, which marshaled its Mayor and Council to actively court Tesla through calls, letters, ads and personal outreach, Long Beach apparently treated Tesla as a 'second-class citizen' according to comments made to me and to the press by Tesla President, Elon Musk. (It would be interesting to examine how much time and effort was really expended by Long Beach officials and staff in recruiting Tesla.)

    I would like to congratulate the City of Downey for getting Tesla, and thank them for helping to keep these important types of jobs in the region.

    On her non-taxpayer-paid internet journal, Councilwoman Schipske writes that she had been "outspoken in her desire to keep alive the possibility of Tesla Motors locating its plant in Long Beach. She personally contacted Elon Musk, President of Tesla to ask him what the City of Long Beach was doing to encourage his company to locate there. She also mounted a letter writing campaign called 'Long Beach -- We Can Do Better Than Downey.' She used her blog to prod Long Beach officials to actively market the City to get Tesla here."

    [emailed statement]

    Gerrie Schipske, councilwoman for Long Beach’s fifth district, has been outspoken in her desire to keep alive the possibility of Tesla Motors locating its plant in Long Beach.

    She personally contacted Elon Musk, President of Tesla to ask him what the City of Long Beach was doing to encourage his company to locate there. She also mounted a letter writing campaign called "Long Beach -- We Can Do Better Than Downey."

    She used her blog to prod Long Beach officials to actively market the City to get Tesla here. So today upon learning that Tesla has signed a letter of intent with Downey to locate a plant which will manufacture 20,000 electric vehicles and produce 1,000 jobs she issued the following statement:

    "The taxpayers of Long Beach deserve a full explanation about who or what killed the deal to bring Tesla to Long Beach. How did we lose this revenue producing opportunity to Downey? Long Beach has so much more to offer to a business than most southern California locations -- we have manufacturing space at the Boeing site, nearness to freeways, an airport, a port, railroad, convention center, training programs at our local community college and most importantly a workforce ready and willing to work. We also have an enterprise zone that provides tax credits for employers. And just recently the City announced it won the 'Most Business Friendly City Award' in Los Angeles County.

    So what went wrong?

    Anyone who has worked in corporate America knows how important it is to develop positive relationships in order to do business, which is exactly what the City of Downey did and the City of Long Beach did not do.

    Unlike the City of Downey, which marshaled its Mayor and Council to actively court Tesla through calls, letters, ads and personal outreach, Long Beach apparently treated Tesla as a 'second-class citizen' according to comments made to me and to the press by Tesla President, Elon Musk. (It would be interesting to examine how much time and effort was really expended by Long Beach officials and staff in recruiting Tesla.)

    I read the memo Long Beach produced as 'evidence' that it had been on top of courting TESLA --so did the President of Tesla, Elon Musk. He was 'insulted' to use his words. The memo contained disparaging remarks about him -- comparing him to the failed car designer Delorean and pointing out that there was a pending lawsuit against Tesla (as if the City of Long Beach doesn't have numerous suits against it) which was shortly after dismissed. Additionally, the memo had an attachment -- the one and only letter sent to Tesla from the City of Long Beach -- and it was to invite Tesla to exhibit their car at a proposed electric vehicle mall in Long Beach. As Mr. Musk said to me over the phone regarding that letter: 'there wasn't an invitation to build cars there.'

    Not one to cry over split milk, I would like to congratulate the City of Downey for getting Tesla, and thank them for helping to keep these important types of jobs in the region.


  • Via DowneyPatriot.com: Downey Mayor Says Downey Deal w/ Tesla "99.9% Done"

  • LB Group of Sierra Club Urges LB City Officials To Woo Tesla

  • Long Beach Chamber Pres/CEO Randy Gordon Cites Benefits For Tesla & LB For Electric Carmaker To Locate In LB; LBReport.com Provides It In Full

  • See City Mgm't Memo re TESLA & City Hall Business Attraction Efforts

  • Councilwoman Schipske Says Mayor Foster, City Mgm't Failing To Encourage TESLA Motors (Cutting-Edge American Electric Car Co.) For Former Douglas (Boeing) Site In Favor of Movie Studio


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