Sounds to me like bad business decisions by the meat co. When you sign a lease you generally put in detailed renewal information. For instance, you say if the tenant is in good standing they have the option to renew for a period of "x" years. If the lease didn't have a renewal option that was a risk they should not have taken. Since they took the risk they should have been aware of the potential consequences and started to make plans over the entire period of the lease rather than waiting for the inevitable 60 day notice and playing the victim card.
If the building was for sale and they didn't exercise the option to buy it, that would be another missed opportunity that many would equate to a bad decision.
It seems there were a number of poor choices by the owners of Loleta Meat that put them into a bad situation and now they are dividing a community and asking for martyrdom. Thankfully for them, Loleta is filled with rubes who would rather defend bad business practices of "one of their own" than admit that the world is a constantly changing place, including their own little piece of it.
The "outsider" bit is pathetic. It is typical rube talk to chastise people because their grandpa's grandpa didn't settle here. People move, it has been happening for thousands of years. If you believe change isn't a fact of life you are in for a sad, bitter existence as you cling to yesteryear.
Do you know what really happened? Was it only 90 days or was it 120... was it 180? What did the owners promise, what did they offer AEDC and fail to deliver? Did they make a grand bargain? Do you know for certain that no papers were served on the owners of Plaza Design? I don't know and neither do the people who are accusing AEDC of being jackboot thugs or going RAMBO.
I suspect they have legal counsel and do not make moves like this without consulting their board of directors and legal advisers.
Did you read the fine print of their loan documents? Perhaps it is easier than you think. Perhaps they were served with court papers.
Also, why after several days has a court order not been issued to stay the lockout? You'd think if law was on the side of the business owners that would have happened by now.
A lot of questions haven't been answered by the owners of Plaza Design or AEDC. Simpletons believe they know what was right and wrong without any background. Perhaps there is much, much more to the story that you, me and the NCJ can begin to understand with the limited information both sides have provided.
If you don't make car payments they can come in the middle of the night and take your car from your driveway while you sleep.
AEDC is in the business of loaning money. When you apply for an AEDC loan you submit a business plan, do projections, personally guarantee the loan with property and/or your inventory. It is not a simple blank check that anyone can just show up and get. You agree to repay the loan and if you can't repay the loan there are quite a few ways to avoid AEDC taking over your store. That is a last-ditch effort reserved for situations where the business owner has repeatedly failed to make their obligations.
If AEDC is changing your locks you can assume the following: You are more than 90 days behind on your loan, you have avoided their loan officer and you have not met their fairly simple obligations to qualify for a forbearance or interest-only loan term.
For those of you who are sure the owners can sue, AEDC did the wrong thing etc, did you read the loan agreement? Did you see the 30,60,90 day letters AEDC provided?
Bottom line: The owners borrowed money and could not repay. AEDC is obligated to close the business, auction off the inventory owned by Plaza design (and return the consignment items) in an attempt to fulfill AEDC obligations to repay both Headwaters and SBA loans that were bundled for Plaza Design.
A family member of mine has an AEDC loan. They are easy to work with and not much different than a bank if you fall slightly behind. They understand tough economic times, however if you start selling off your inventory and you are not paying them, they will exercise their rights to shut the doors. Just like any bank (local or international)
If a Nazi is someone who lends you money then wants you to repay it according to the agreement you made, I guess you have a different definition of a Nazi than I keep.
McMenamins properties are really fun and they have extensive experience working with old buildings and seamlessly weaving modern touches into the mix. I think this is a fantastic idea, however it may be a bit too weird for the old boy network of Eureka. Nothing like some trippy masonic motifs mixed with Jimi Hendrix flying eyeballs.
Legal cannabis in CA will not spur growth in North Carolina or Kentucky. Industrial hemp is different than flowers for human consumption. Your valuation of the commodity, hemp, may be correct, however the value of specialty products is rarely tied to the price of bulk commodities.
Hemp will be a valuable commodity, bales of what amounts to high quantities cellulose will unseat corn as the choice for ethanol, tree pulp as paper and cotton for fiber. Industrial hemp will be the domain of large farms and agro-industry. Perhaps your publishing company will be using hemp paper in the next decade because it is both more sustainable and less expensive than virgin pulp paper?
Flowers for smoking will remain in the hands of the small producers and will not be the pursuit of major companies. Liability, the fact that pot will still be illegal in 49 states, and federal laws will prevent RJR from getting into the pot business. Quality slips in mass production. Flavor and aroma are paramount, and honestly abundant supplies of low quality cannabis already dominate the market in most of the country. It hails from Mexico, likely it would be imported as it can be produced for less.
Besides, do the top-tier winemakers fear the production of table grapes or the Gallo wines produced in the central valley? Is the mere 8.9% market share held by the entirety of craft brewers threatened by the 52% market share held by Anheiser Busch and their parent company?
The premium quality cannabis market should not feel threatened. The producers should be prepared for regulation and the need to market your products.
Humboldt, Mendocino and Trinity have a climate favorable to high-grade cannabis production. Long, dry summers prevent rot, mold and poor flowering. A single rainstorm and even high humidity can compromise a crop. The Southeast is no place to grow high-quality pot.
The author's arrogance is only superseded by his ignorance.
Range land is widely available in Humboldt County. Beef cattle do not need to spend their entire lives in the eel river valley unlike their dairy cousins, beef cattle can be in very remote parcels for much of their lives. I think Clint has parcels all over the county and his personal standards for his grazing and livestock meet or exceed the standards of the NOP and his organic certifier, CCOF. In addition he works with other ranchers to fulfill his herd needs after he is certain they meet his high standards.
Wholefoods is a great account to have because they pay on time, buy responsibly and offer a producer an extensive network for their products. Humboldt county cannot sustain many of the producer/processors who operate here and they would be remiss to skip an opportunity to work with a company like WFM.
The notion that HumCo. producers and processors should limit themselves to the local area is absurd and entirely unsustainable in it's own right. Many producers have to discount their products to sell them locally and can sell products at higher margins outside of the area. There is a huge demand for lower prices on organic/boutique products that do not allow discovery of the true cost of production. For whatever reasons, processors/producers feel compelled to race to the bottom of the market in order to gain shelf space in Humboldt's "sustainable" markets.
In Print This Week:
Dec 5, 2013
vol XXIV issue 49
The North Coast Journal Weekly
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