County Loan to Haagen

In playing the charade of “no favoritism” in allocating a $25-million loan at 2 1/2% under prime to Haagen, the supervisors are ignoring their fiduciary role. (That is defined as “pension--or a person--who stand in a special relation of trust, confidence or responsibility in his--or her--relation to others.” The extended definition also mentions money.)

To exercise the role of a fiduciary, one must exercise the “prudent judgment of a mature business person.” We see no evidence of a plan that will ensure the life and profitability of a number of stores that have already proven to be economic failures. What is the source of funds for repayment of the $25 million in 18 months? Not having demanded, received and approved such a plan, the supervisors are violating their fiduciary responsibility.

Supervisor Deane Dana says he is nervous. He and the others rightly should be. In a few years, when no stores are open, a number of people have been made wealthy, when the $25 million has disappeared, when someone raises the question of civil and possibly even criminal liability, I’m sure that he and many others will be even more nervous.

G.G. MICHEL

Pacific Palisades