GREENFIELD, Calif.- Cities on the Central Coast are trying to figure out if bringing new jobs to the area is worth the risk.
We first told you Monday Green Vehicles in Salinas shut down even after a big investment by the city and state.
The city said it lost $240,000, plus another $300,000 in grant money.
Some experts say: to make money you have to give money. Salinas gave money to Green Vehicles and lost it. Other cities on the Central Coast say they're paying attention to Salinas.
"Things change daily, things change weekly," said Greenfield city councilman John Martinez.
Greenfield is banking on a new air museum and over the next 10 years the plan includes a hotel, retail shops and vineyards.
Greenfield hopes it will be the first runway to long term economic success; but Greenfield is a small city, it doesn't have the money to invest in projects like these so it's at the whim of developers who already have the money.
On the other hand, the city won't suffer as much if the project goes under because, "Getting more investors like this and going after grants where the city, the taxpayers locally, doesn't have to fork out the money," said Martinez.
But Watsonville is another story. It voted to pony up a $750,000 loan to developers of the Manabe-Ow Business Park for infrastructure.
The industrial park will be built over the next 20 years, and the city said the pay-off, if it happens, is well worth the risk.
But if the project falls through, the 2,000 jobs it promised, goes with it. Last month councilman Emilio Martinez said that's a problem.
"Infrastructure money for jobs that weren't promised until 20 years later, 2,000 jobs 20 years later just doesn't make sense."
Meanwhile, Greenfield is laying stake in new jobs without paying for them.
"Go after the grants to support these projects so the taxpayer doesn't have to fork out the money," said John Martinez.
Salinas plans on asking the California Energy Commission to reimburse the money it lost.
Today, Salinas mayor Dennis Donohue said he thinks the city would support start-ups again, but just be more careful.
