Pittsburg

Chamber, Lumpy’s Diner Question Pittsburg’s $300k Loan

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A $300k loan by the City of Pittsburg is in question after social media posts accused the Pittsburg of a lack of transparency and creating too much competition.

A social media post by Lumpys Diner – Pittsburg, questioned how the city could give Sean McCauley Investments (SMI) a $300k grant to open Lighthouse Café, another breakfast and lunch restaurant. The owner called it a competitor funded by the city and using taxpayer money.

Her post prompted the Pittsburg Chamber of Commerce to call out the city for more transparency, community engagement and fair business practices.  They even put in a public records request they announced online.

According to documents provided Monday by Jordan Davis, Director of Community and Economic Development, for the city of Pittsburg,  they state the following:

  • Per Resolution 24-14498 – authorizes the City Manager to negotiate an execute a loan agreement for energy efficiency improvements. This is for the Vidrio Commercial Area (APN: 085-390-077) which was purchased in 2022 by Sean McCauley Investments—where the southernmost space would be converted into a restaurant.
  • The resolution, which was approved a 3-0 vote by Adams, Killings and Baneles on June 17, 2024, it authorized the city manager to negotiate and execute a loan agreement with SMI in an amount not to exceed $300k for energy efficient upgrades. Absent from the vote was Lopez and Scales-Preston on June 17, 2024.

As of Monday, McCauley says he has not received a dime from the grant because the work on the building is not yet completed.

Davis echoed McCauley stating no monies have been issued yet because work is still on going but added the spot was never a place for a restaurant so conversations inside the building had to be made, but part of the terms and conditions was one space (960) had to be a restaurant.  He also confirmed the grant to SMI was from funding by the Pittsburg Power Company, not general funds.

“That spot was never a restaurant space, it had no ventilation work and no HVAC,” explained Davis. “We worked with Sean McCauley on what needed to be done for it to become a restaurant, which he pointed to more energy efficiency,” explained Davis. “So the grant became contingent on a restaurant.”

Davis added, “We need to get people downtown, getting restaurants downtown is  a way to do it. We allow restaurants, we don’t get to say what kind. I can say foot traffic will increase, and it will be super beneficial to everyone with the amount of people that can be brought in.”

Davis also confirmed that under funding from the Pittsburg Power Company, Lumpy’s Diner in Pittsburg received a $348k loan to purchase the building  (615 Railroad)– also a $0 down loan with 5% interest on a 20-year term in 2018. The loan has since been paid off.

Davis said the funding source is the same between Lumpy’s Diner and SMI, the only difference is the terms of the agreement.

Natalie, owner of Lumpy’s Diner in Pittsburg, issued the following statement on April 18:

Hey Pittsburg, it’s Natalie from Lumpy’s Diner.

Most of you know me, or at least you know Lumpy’s. We’ve been a fixture here in our historic downtown for years, serving up breakfast and lunch, pouring coffee, and being part of this community. I’ve poured my heart, soul, and savings into this place, just like many other small business owners in our town. We work hard, we pay our taxes, and we try to make Pittsburg a better place to live and work.

That’s why I have to speak out today, and honestly, I’m furious.

I recently learned that the City of Pittsburg gave a $300,000 “grant” – let me repeat that, THREE HUNDRED THOUSAND DOLLARS of what I can only assume includes our tax money – to Sean McCauley. Now, we all want to see investment in our historic downtown. The understanding, as I and many others were led to believe, was that this money was intended to help bring in a business that would fill a gap, specifically a dinner restaurant.

Something to bring folks downtown in the evenings and complement the businesses already here, like mine.

Imagine my shock and, frankly, my anger, when instead of a dinner spot, Mr. McCauley used that massive grant to open Lighthouse Cafe – another breakfast and lunch restaurant. Yes, you read that right. A direct competitor to Lumpy’s, funded in part by the city, using taxpayer money.

So let me get this straight: The City of Pittsburg, which often tells us how tight the budget is and how there’s no money for this or that, somehow found $300,000 to essentially subsidize direct competition against a long-standing local business? My business? In our historic downtown?

This feels like a slap in the face. Not just to me and my hardworking staff at Lumpy’s, but to every taxpayer in this city. We are struggling small businesses, trying to survive inflation, rising costs, and all the usual challenges. How are we supposed to compete when the city itself is funding our competition?

What message does this send? That loyalty and years of service to the community don’t matter? That taxpayer money is just play money for projects that end up hurting existing businesses?

We need answers. We need transparency. Why was this decision made? Was there any consideration for the existing businesses, like mine, that have been anchors in this community for years? Why wasn’t the intended use of the grant (a dinner establishment) enforced?

I love Pittsburg. I love serving this community. But this is wrong. Our city leadership needs to be held accountable for how they spend our money and how their decisions impact the local businesses that form the backbone of our town.

I’m not just fighting for Lumpy’s; I’m fighting for fairness and responsible governance in the city we all call home.

Thanks for listening.

– Natalie, Owner of Lumpy’s Diner

Pittburg Chamber Chimes in — Seeks Public Records Request

The Pittsburg Chamber of Commerce followed Lumpy’s Diner and issued the following statement:

Addressing Concerns: Chamber Seeks Facts on Lighthouse Cafe Buildout Funding

We’ve heard the community’s concerns regarding the funding for the new Lighthouse Cafe downtown and its potential impact on neighboring businesses like Lumpy’s Diner. Supporting a fair and vibrant local economy for all Pittsburg businesses is central to the Chamber’s mission.

To get the facts straight, the Pittsburg Chamber of Commerce has taken formal action. We have filed Public Records Act (PRA) requests with both the City of Pittsburg and the Pittsburg Power Company to obtain official records detailing the source, terms, and approval process for the reported $300,000 funding associated with this project.

Understanding how these decisions are made and how such funds are deployed is crucial. We are committed to gathering this information to advocate effectively for transparent processes and fair treatment for our entire business community. We will share updates as appropriate as we learn more through this formal process.

Sean McCauley took to social media requested an apology from the Pittsburg Chamber of Commerce CEO Wolfgang Croskey.

The City and SMI worked tirelessly to assist with a 27 year operator having to leave from thier existing location to relocate to Old Town, this restaurant operator serves 700 plates on a weekend day…. on top of this we opened and improved space for over 17 new entrepreneurs and over 30 new jobs in downtown…. The chamber has issues with this?? wow. Lumpys will thrive under these new conditions. She needs to compete and be better. it’s called capitalism. it’s business 101. the chamber should know this. can’t wait for you to recieve your records request and us to get an apology,” said McCauley.

Council voted 3-0 on the item

June 17, 2024 City Council Meeting

The Pittsburg City Council took up the item at its June 17, 2024 meeting which was approved in a 3-0 vote by Adams, Killings and Baneles. Absent from the meeting was Lopez and Scales-Preston on June 17, 2024.

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