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County Loan to Haagen

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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.

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G.G. MICHEL

Pacific Palisades

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