4/11/13, "Electric car charging station project in limbo," Chicago Tribune, Julie Wernau
"FBI said to be looking into 350Green's project for drivers of electric vehicles in Chicago, 19 other markets"
p. 1, "Three years ago, a Los Angeles firm named 350Green was picked to build a large network
of charging stations for electric vehicles in the Chicago area. Other
contracts soon followed in Ohio, Pennsylvania, Utah, California and
Kansas.
The project, which put Chicago on the map as an early adopter of electric car technology,
is now in limbo, with 350Green soon to be replaced by another company
amid evidence of unpaid bills and accounting issues. Several hundred
charging stations were supposed to have been installed by 350Green
before the end of 2011, but work stopped some time ago, the company
said. Projects by the company in 19 other markets also have been halted....
The city of Chicago has no money in the project. It acted as the administrator of about $2 million in state and federal grants awarded
to 350Green. In this role, the city parceled out that money after
350Green submitted copies of checks that showed it had paid contractors.
Less than $200,000 in grant money remains, according to city documents....
,
is now in limbo, with 350Green soon to be replaced by another company
amid evidence of unpaid bills and accounting issues. Several hundred
charging stations were supposed to have been installed by 350Green
before the end of 2011, but work stopped some time ago, the company
said. Projects by the company in 19 other markets also have been halted....The city of Chicago has no money in the project. It acted as the administrator of about $2 million in state and federal grants awarded
to 350Green. In this role, the city parceled out that money after
350Green submitted copies of checks that showed it had paid contractors.
Less than $200,000 in grant money remains, according to city documents.... p. 2, "The capitalization of 350Green hinged on government grants, although it promised to raise an additional $6.8 million from private sources. Mason said the expiration of the Alternative Fuel Vehicle Refueling
Property tax credit at the end of 2011 sunk the project's financing.
Mason said the company counted on the tax credit for about 50 percent of
the project's funding. The tax credit was extended in 2013, at which
point, Mason said, it was too late....350Green's business model
called for consumers to pay $50 to $60 per month for charges."You can't live on government subsidies," Gerzanych said in 2011. "And building a business model that depends on government subsidies will never work. And when government subsidies go away, your business
goes away.".
"That's a $97,000 difference," Haug said. "We're a 100-year-old family-owned business
. That's not chump change."After hearing "next week, next week, next week," that it would be paid, Haug said, the company was contacted by FBI investigators. Haug said that's when it lost hope 350Green would pay.
Jodi Wise, administrative assistant at RJ Underground, which did drilling work on the project and whose offices are in Kenosha, Wis., said the company never received a $28,700 check, although paperwork provided to the city shows it was paid in April 2012 by 350Green.
RJ Underground is owed $90,000, Wise said...
On Wednesday, Brian Brockman, a spokesman for Nissan North America, said the company still believes Chicago is a great market.
"We look forward to working in ways that make sense as an automaker to speed the rollout of charging infrastructure and to help serve the needs of Nissan Leaf owners," he said." via Tom Nelson
.
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