 (Oct. 10, 2020, 5:55 a.m.) -- Second district City Council candidate Cindy Allen declined to answer and abruptly exited an Oct. 8 Zoomed election debate presented by the Alamitos Beach Neighborhood Ass'n when asked if she acknowledges or disputes that if elected, her ETA sale agreement creates potential conflicts by entitling her to 10% of the firm's net revenue under certain terms for the next three years.
A few seconds after the moderator mentioned ETA (her recently-sold firm) Ms. Allen interrupted and indicated she wouldn't respond to the question. At one point she labeled it an "attack question." Ms. Allen thanked ALBA for the debate opportunity, announced she was leaving and disconnected electronically from the Zoomed event. A third party has webposted a video clip of the exchange at this link.. Ms. Allen's exit left her runoff opponent, Reform Ticket candidate Robert Fox, to field viewer questions for the final roughly half hour of the event.. The question was emailed to ABNA (whose Facebook page invited emailed public questions) by LBREPORT.com at 5:27 p.m. on Oct. 8. As submitted: the question was: "Directed to Ms. Allen: Do you acknowledge or dispute that if you're elected, receiving 10% of ETA's net revenues for three years would create potential conflicts between your business interest and your elective offfice?" The question didn't ask about allegations in a 10 page civil lawsuit brought by ETA's buyers (LBREPORT.com coverage here); it inquired about the ETA sale agreement that Ms. Allen signed in July 2020 whose provisions became public as an attached exhibit to the lawsuit. LBREPORT.com publisher Bill Pearl [author of this article] voiced surprise and disappointment at Ms. Allen's response. "Long Beach is a major California city and no candidate seeking elective office here should expect some privilege to avoid answering media questions about how their private business interests might affect their public duties," Mr. Pearl said. "We invite and urge Ms. Allen to answer the question," As of dawn Oct. 10, to our knowledge only two LB news outlets -- LBREPORT.com and the Beachcomber -- have told their readers that the July 2020 ETA sale agreement contains a provision entitling Ms. Allen (currently seeking a four year term on the City Council) to 10% to ETA's net revenue on certain terms for three years. [Scroll down for further.] |
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The ETA sale agreement provides in pertinent part: Section 1.02 Purchase Price. Subject to the terms and conditions set forth herein, and in consideration of the Company retaining the two SBA loans and Company credit card debt currently in place at the Closing Date rather than requiring the loans and credit card to be paid in full prior to the Closing Date, the amount of SBA loans not to exceed $86,933.84 on the Closing Date and Company credit card debt not to exceed $41,104.56 on the Closing Date, the aggregate purchase price for the Shares shall be equal to the payments in accordance with this Section 1.02 (the "Purchase Price"): Contact us: mail@LBReport.com |
  
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