That's what has happened in Moberly MO- located about 40 miles north of Columbia.
Back in the Summer of 2010- international company Mamtek U.S. (their Web site no longer works) made a deal with Moberly city leaders that if the city would back $39-million in bonds- Mamtek would build a plant in Moberly to manufacture an artificial chemical sweetener.
The State of Missouri- about to make ANOTHER deal for a Chinese cargo hub in St. Louis- also put $7-million of state taxpayer dollars in the pot.
Partners in the deal was an outfit called "The Midwest US China Association" and you can see and hear all the sugury-sweet kudos given to the company in this YouTube video:
Mamtek U.S. defaults on their August bond payment- it's only later discovered that the company has "very little cash" anyway- and it's unlikely the company can make good on any of it's promises.
According to the MOBERLY MONITOR- city officials "don't think" the city is on the hook for the defaulted bond payments- but the MM story clearly shows that the same city officials don't really KNOW if Moberly is on the hook for the $39-mil.
Construction on the new Mamtek U.S. plant in Moberly has come to a standstill.
People hired to run the new plant have been fired.
The appears the State of Missouri can also kiss it's $7-million goodbye too.
I wonder if Missouri's Republicrats are still gung-ho on cutting the benefits of the state's poor and disabled to help finance that Chinese cargo hub in St. Louis?