Sunnyside balks at being fed $ conduit

SUNNYSIDE (1-20-98)--- The Sunnyside City Council has tabled a decision to act as a federal-dollar conduit for a "banking" program headed up by Luz Gutierrez of Yakima.

The Yakima-based loan program, called "WAME" is funded by the federal Dept. of Economic Development.

Gutierrez claims the program will help businesses, which in turn will generate profits and therefore local tax dollars to benefit Sunnyside.

WAME provides loans to existing and upcoming small businesses in Yakima County.

Staff say the loans are for all moderate and low income persons who can't qualify for business loans through a regular bank. The program reportedly isn't just for women and minorities.

Apparently without tongue in cheek, they indicate even white males can try their luck at a loan.

On hand at the Jan. 20 council meeting to sing the program's praises were Sunnyside businessmen John Mares, H&H Upholstry; Juana Soto, El Alacan western clothing store; and Pete Garza, a Sunnyside City jailer who operates a security business on the side.

All received loans through WAME. Sunnyside's Paul Sears also urged the council to agree to act as a WAME dollar conduit.

Money to keep WAME going flows from the feds, through Olympia, and down to Washington State areas dubbed "Economic Enterprise Zones".

Various Yakima County cities are asked to "buy in" to the program by acting as a conduit for a portion of the federal bucks.

Gutierrez is asking Sunnyside to administer $50,000 of the countywide program, which has a total budget in the hundreds of thousands of tax dollars.

Councilmen balked at approving the program because Sunnyside's chunk was mostly all for WAME office equipment.

In answer to queries, Gutierrez said 60% of WAME's overall budget goes for loans. When no more federal dollars are forthcoming, WAME will continue to exist through interest collected on the loans. WAME can pay its operating costs, but can't make a profit.

Part of the reason the council tabled a WAME decision is because of a memo from City Finance Director Bud Shatz.

Shatz said Gutierrez was unable "to adequately satisfy me with some questions I have had regarding the expending of the 96 grant funds as well as the current budget request of the 97 grant of $50,000.

"Because I will need to have further discussions with them so that I can adequately and accurately provide the council with information regarding the future administration and operations of these grants, I am asking the Council to hold this matter over until (the) January 26 workshop meeting so that I can be present along with Luz Gutierrez to discuss this matter with the Council."

Gutierrez told city fathers "the state is getting concerned" that Sunnyside seems to have doubts about WAME.

Indicating they couldn't give a rip about the state's concerns, the council tabled the discussion until Jan. 26.