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Mayor tied to Tesla Supercharger site questioned over ‘conflict of interest’

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Tesla Supercharger station in Aberdeen, Washington [Credit: Trebor Thickweb via app check-in]

He was young. Ambitious. Gifted. One of the greatest players to ever set foot on a professional baseball diamond, “Shoeless” Joe Jackson’s career ended in tatters for his alleged role in the infamous Chicago “Black Sox scandal” of 1919.

Call it a “conflict of interest.” It involved money. Lots of it.

Something else that involves money – lots of it – is afoot in Aberdeen, Washington: A Tesla Supercharger station and a “Gateway Center.” Aberdeen Mayor Erik Larson is a staunch proponent of both.

Updated: Mayor Larson fines himself $500 for violating the state’s conflict of interest ethics code

Mayor Larson is making the rounds looking for funding to help cover the costs of Gateway Center construction which is expected to cost upwards of $8M to complete, and incorporate Tesla’s Supercharger station into the design.

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Questions within the community are swirling around what appears to be a conflict of interest regarding the mayor’s involvement in the Tesla deal. Documents have surfaced showing that the mayor has, or had, a financial interest in the electric car company that’s building the Supercharger station, apparently while he was negotiating with the company to bring the project to a city-owned lot. Why the station is being built on publicly owned land rather than on a private site is also in question.

Background

Mayor Larson negotiated the original agreement with Tesla for the charging station, which could have cost the city up to $2,000 a month in utility bills. The lease agreement came before the Aberdeen City Council for approval last summer. Originally, the City of Aberdeen was on the hook for paying  electricity costs.

Tesla Supercharger station in Aberdeen, Washington during construction [Credit: Trebor Thickweb via app check-in]

As noted in the Aberdeen City Council meeting agenda dated July 13, 2016, the lease language at that time included (see page three):

“The Mayor has negotiated with Tesla Motors, Inc. for the construction of a Tesla supercharger station in Aberdeen on the city of the former Chevron station. The supercharger will be incorporated into the design of the Gateway Center. …  the city will also be responsible for… paying the utility bills for Tesla vehicles that use the charging station, up to monthly cap of $2,000 per month.” (Emphasis added.)

Reading further, Item 8 of that actual lease agreement specifies that:

“Tesla agrees to arrange for all Tesla-related utility services provided or used in or at the Premises… Tesla shall pay directly to the utility company the cost of installation of any all such Tesla-related utility services and shall arrange to have the utility service separately metered. (Counterparty) shall be responsible for paying all utility bills related to such meter after installation, including payment for electricity consumed at the Premises during the Term, up to two thousand dollars ($2,000) per month.” (Emphasis added.)

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Other Cities, Other Charging Stations

Tesla lease agreements with city governments aren’t new. Similar charging stations exist in five other Washington cities: Centralia, Burlington, Ellensburg, Kennewick, and Ritzville. There are eleven Supercharger stations in Oregon. All are located on either hotel/resort type private property or some other type of retail/outlet center. But the Aberdeen location is on a city-owned lot.

In California, two Supercharging stations on publicly owned property exist in Ukiah and Crescent City. But the terms negotiated by those cities for the stations are jarringly different from those negotiated for the Aberdeen site:

In Ukiah:

– “Tesla pays for the entire project, including staff time and utility costs.” (Ukiah Daily Journal, August 8, 2015.)

In Crescent City:

  • The city is being paid by the tenant for use of its property. A proposal by Recargo, Inc. to build and operate a universal electric vehicle charging station in Crescent City included a $4,800 annual payment from Recargo to the district for use of the property. (Del Norte Triplicate, October 11, 2016.)
  • “Essential components” of the city’s lease agreement with Tesla includes: “(1) the term, which is five years with two five-year options to renew, (2) Tesla will build and maintain the facility, and (3) the lease amount is one dollar per month.” (City of Crescent City Council Agenda Report, April 6, 2015.)
  • Tenant “agrees to arrange for and pay for all Tenant-related utility services provided or used in or at the Premises during the term of the Lease.” (#10 – Utilities – City of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)
  • “Tenant shall pay directly to the utility company the cost of installation of any and all such Tenant-related utility services and shall arrange to have the utility service separately metered.” (#10, UtilitiesCity of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)

In Aberdeen:

  • The city (re: taxpayers) could get stuck with “up to 30,000 for the costs of installing the new infrastructure for the city” per the re-negotiated August agreement.

[Credit: Conservelocity]

Key items in the re-negotiated agreement between the city and Tesla include (Aberdeen City Council Meeting Agenda, August 24, 2016. See page 3):
  • The provision requiring the city to pay for electricity used by Tesla vehicles was removed.
  • The proposed new lease requires Tesla to pay for all costs of charging Tesla vehicles.
  • The lease also requires Tesla to install infrastructure “that would allow the city to add charging stations for other electric vehicles at some point in the future.”
  • The city “will reimburse Tesla up to $30,000 for the costs of installing the new infrastructure for the city.” (Emphasis added.)

According to minutes from the August 24, 2016 Aberdeen City Council Meeting, a motion to adopt the re-negotiated lease agreement carried.

An interesting wrinkle, as announced by Tesla on November 7, 2016, is that Tesla has decided to stop offering unlimited free use of its network fast-charging stations worldwide beginning this year.

So, other than hopes of helping “attract potential tenants to the center as the first project participant” and providing “nearby restaurants and retailers with additional business” per Mayor Larson, just how, exactly, does the supercharging station tangibly benefit Aberdeen taxpayers or offset “up to $30,000” in reimbursements to Tesla “for the costs of installing the new infrastructure for the city”?

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The Daily World reports that “A $30,000 grant will help Aberdeen reimburse Tesla for installing the station.” In light of the agreements hammered out with other cities for charging stations on public land, however, why is Aberdeen on the hook for reimbursing Tesla for any installation costs?

Another wrinkle:

According to an October 28, 2016 story in The Daily World, five Aberdeen sites were in the running as possible locations for the new Supercharger station, including the parking area for the Center. Larson explains:

“They (Tesla) could have easily worked with Gateway Mall or sought out private ownership, but they were interested in the Gateway Center parking lot.”

Why was a publicly owned site selected instead of a privately owned one? Is city government using public funds to compete with private business?

Additional questions swirl around Mayor Larson’s financial interest in Tesla Motors.

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Some questions:

  1. Did Mayor Larson disclose his financial interest/common stock in Tesla Motor Company anywhere other than on his 2015 and 2016 PDC F-1 forms?
  2. As a candidate, Mayor Larson reported his stock value as $4.5K – $23.9K. After he was elected, he reported the value as $24K – 47.9K. What’s up with that?
  3. The mayor apparently handled all negotiations with Tesla, even though he had/has a financial interest in the motor company (See PDC F-1 forms, above). Did the city know about his financial interest in this company? If so, did it okay the mayor as negotiator of the Tesla lease agreement anyway? Why?

Perhaps a contract negotiator sans an apparent financial interest in the project under negotiation might be a good idea?

While we’re raising questions, what of Shoeless Joe? After the Black Sox scandal, Jackson never set foot on a professional baseball diamond again. He was banned for life along with seven other Chicago players for their alleged involvement in intentionally throwing the 1919 World Series to the Cincinnati Reds. Jackson’s alleged involvement in the conspiracy is still the subject of hot debate. Some maintain that the only things Joe was guilty of were being young, ambitious, gifted, and a bit naive.

Ring any bells?

Kristine Lowder

This guest post was written by Kristine Lowder of Conservelocity. Do you have a post you’d like to share? Email it to us at info@teslarati.com

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Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

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Credit: Ford Motor Co.

Ford is canceling the all-electric F-150 Lightning and also announced it would take a $19.5 billion charge as it aims to quickly restructure its strategy regarding electrification efforts, a massive blow for the Detroit-based company that was once one of the most gung-ho on transitioning to EVs.

The announcement comes as the writing on the wall seemed to get bolder and more identifiable. Ford was bleeding money in EVs and, although it had a lot of success with the all-electric Lightning, it is aiming to push its efforts elsewhere.

It will also restructure its entire strategy on EVs, and the Lightning is not the only vehicle getting the boot. The T3 pickup, a long-awaited vehicle that was developed in part of a skunkworks program, is also no longer in the company’s plans.

Instead of continuing on with its large EVs, it will now shift its focus to hybrids and “extended-range EVs,” which will have an onboard gasoline engine to increase traveling distance, according to the Wall Street Journal.

“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said in a statement.

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While unfortunate, especially because the Lightning was a fantastic electric truck, Ford is ultimately a business, and a business needs to make money.

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Ford has lost $13 billion on its EV business since 2023, and company executives are more than aware that they gave it plenty of time to flourish.

Andrew Frick, President of Ford, said:

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

CEO Jim Farley also commented on the decision:

“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting.”

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Farley also said that the company now knows enough about the U.S. market “where we have a lot more certainty in this second inning.”

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SpaceX shades airline for seeking contract with Amazon’s Starlink rival

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Credit: Richard Angle

SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.

Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.

Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.

A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.

American CEO Robert Isom said (via Bloomberg):

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“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”

Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.

The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:

“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”

CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”

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There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.

SpaceX successfully launches 100th Starlink mission of 2025

Currently, the company is focusing on expanding into new markets, such as Africa and Asia.

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Tesla Model Y Standard stuns in new range test, besting its Premium siblings

Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.

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Credit: Tesla

The Tesla Model Y Standard stunned in a new range test performed by automotive media outlet Edmunds, besting all of its Premium siblings that are more expensive and more luxurious in terms of features.

Testing showed the Model Y Standard exceeded its EPA-estimated range rating of 321 miles, as Edmunds said it is the “longest-range Model Y that we’ve ever put on our loop.” In the past, some vehicles have come up short in comparison with EPA ranges; for example, the Model Y’s previous generation vehicle had an EPA-estimated range of 330 miles, but only drove 310.

Additionally, the Launch Series Model Y, the first configuration to be built in the “Juniper” program, landed perfectly on the EPA’s range estimates at 327 miles.

It was also more efficient than Premium offerings, as it utilized just 22.8 kWh to go 100 miles. The Launch Series used 26.8 kWh to travel the same distance.

It is tested using Edmunds’ traditional EV range testing procedure, which follows a strict route of 60 percent city and 40 percent highway driving. The average speed throughout the trip is 40 MPH, and the car is required to stay within 5 MPH of all posted speed limits.

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Each car is also put in its most efficient drive setting, and the climate is kept on auto at 72 degrees.

“All of this most accurately represents the real-world driving that owners do day to day,” the publication says.

With this procedure, testing is as consistent as it can get. Of course, there are other factors, like temperature and traffic density. However, one thing is important to note: Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.

Tesla Model Y Standard vs. Tesla Model Y Premium

Tesla’s two Model Y levels both offer a great option for whichever fits your budget. However, when you sit in both cars, you will notice distinct differences between them.

The Premium definitely has a more luxurious feel, while the Standard is stripped of many of the more premium features, like Vegan Leather Interior, acoustic-lined glass, and a better sound system.

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You can read our full review of the Model Y Standard below:

Tesla Model Y Standard Full Review: Is it worth the lower price?

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