Structured Solutions closes doors
by
Katie Gauthier
Story Created:
Jan 20, 2012 at 6:31 PM CDT
Story Updated:
Jan 20, 2012 at 6:46 PM CDT
We have a new development in the happenings with Structured Solutions. Last week city council voted not to extend the California- based technology company's contract agreement.
You may remember C.E.O. Robert Yuan signed an agreement to create 50 jobs by January 1st and failed sharply creating only six.
News 5's Katie Gauthier went to Grand Island Friday and discovered Structured Solution's Sedona office was locked shut. Employees were told to clean out their desks and leave the building Thursday.
But the news doesn't come as a surprise to everyone.
"I'm not surprised in the least," said mayor Jay Vavricek.
"I don't know what other choice he would have had," said council member Linna Dee Donaldson.
Structured Solutions have closed their doors until further notice.
"I'm sorry, I've been cynical and somewhat expecting this to occur," said Vavricek.
But Mayor Vavricek also hopes for the best.
"This might be a temporary situation. I don't know if it's a long lived perpetual decision," Vavricek said.
But the empty parking lot speaks for itself.
"Here's the story. We have an applicant that has $600,000 of our money and that was extended in good faith for job performance."
But the business model was not successful.
Structured Solutions doors are locked at Sedona in Grand Island and many wonder if they'll ever open again.
"This is evolving literally as we speak, so we're hopeful," said Vavricek.
Hopeful the company can get back on their feet.
But the news was devastating to Sedona employees.
Council member Linna Dee Donaldson was waiting for lunch to be served at a local restaurant when...
"A lady came up to me who had just been told that she could clean out her desk and leave Structured Solutions, that her job was done," said Donaldson.
She was upset and scared about her future and needed someone to talk to.
"The newspaper described that as being verbally accosted. I was not. She was upset, but she was not loud and she was not unkind. She's just worried," Donaldson said.
Linna expressed her apologizes for the loss of a job and explains.
"The person who's caused all this heartache for everybody wasn't in the room. So I was there and so she came up to tell me how upset she was," Donaldson said.
The mayor is regretful for the loss of jobs as well but explains that the decision was made based off a failed business model.
"The employer's the one that you should be venting any frustration. The employer's the one you should be asking, hey what's going on," said Vavricek.
And next time the employer should follow these simple rules.
"When someone invests money or gives money to me for something. I'm gonna put it in a pot where I do what I say I'm gonna do with it. And if I don't meet my obligation. I should have some of that money left to get back," Donaldson said.
Structured Solutions is now required to pay back the tax payer's money - $600,000 in all.
And Mayor Vavricek explains that when picking the next LB840 candidate they will take extra precaution, but adds that any business model comes with a risk.
Most Popular