Public Watchdog.org

Why The Park Board Should Adopt A Transparent Shibley Oaks Acquisition Process (Updated)

04.04.18

In a comment to our 03.26.2008 post (“Why Is The Park Board Discussing ‘Shibley Oaks’ In Closed Session?”), an anonymous reader asked:

“Is there never a place for closed sessions at the Park Board meeting? What about if they wanted to talk about negotiation tactics to acquire the land? What if they wanted to discuss a deal that is part City / part Park District for acquiring the land? What if they want to discuss maximum offering price that is lower than the $2.2 million; should that be none [sic] to the other side of the transaction? While I agree there is abuse of closed sessions, do you never see a reason for them?”

Because those questions demonstrate a fundamental misunderstanding of both closed sessions and the ability of the Park District to acquire land irrespective of the owner’s desire to sell it, we have decided to take this opportunity to address that misunderstanding in advance of tomorrow (April 5) night’s Park Board meeting for which the District’s acquisition of Shibley Oaks is an agenda item.

As we understand it, the Board will discuss – in open session for a change – whether there is a need, or even a significant want, for spending as much as $2.2 million of taxpayer money acquiring the Shibley Oaks property from its current owner. Given that the principal feature of that property appears to be nothing more than the 15 old oak trees situated on less than 1 acre of land in a commercially-zoned area along Busse Highway, the fundamental questions that need to be asked are:

(1) “Does the Park District’s mission include the acquisition of private property for the primary purpose of preserving that property’s nature and character”; and

(2) “Does the District need or want a park at Shibley Oaks?”

If you look at the District’s “Environmental Policy” the answer to question No. 1 may be: “Yes.” That leaves the Park Board to answer question No. 2

Assuming for the sake of argument that some reasonable justification can be made for the property’s acquisition by the District, what purpose would closed-session negotiations serve?

The Illinois Open Meetings Act (“IOMA”) expressly provides that: “(1) It is the intent of this Act to protect the citizen’s right to know; and (2) The provisions for exceptions to the open meetings requirements shall be strictly construed against closed meetings.” That’s why even the recognized exceptions to IOMA’s open-meeting mandate, such as discussions about the acquisition of land, are merely permissive rather than mandatory. In other words, unless some other non-IOMA statute requires non-public debate and deliberations by the Park Board, NO closed sessions are ever required.

According to the commentator, closed session discussions of “negotiation tactics” would enable the Park Board to deliberate and decide in secret on a maximum offering price and a negotiation plan (presumably starting with a lowball offer followed by a series of escalating offers and counter-offers) that might result in the property’s acquisition below the owner’s asking price.

That would be a reasonable idea IF the acquisition process was your typical voluntary arm’s-length one between a private seller and a private buyer.

But the District’s acquisition of private property for a public purpose does not need to be a typical arm’s-length negotiation between a willing seller (i.e., the Shibley Oaks owner) and a willing buyer (i.e., the District). That’s because the District, like most other governmental bodies, has the legal authority under eminent domain laws to acquire the property for its fair market value (“FMV”) by the process of condemnation even if the owner doesn’t want to sell.

What does that mean from a practical standpoint?

Simply, that the Park District can call ALL the shots and, therefore, doesn’t need to hide its acquisition efforts and “negotiation tactics” in closed sessions.

Assuming the Park Board decides that buying the Shibley Oaks property makes sense, it should go about getting the property appraised (by a certified MAI appraiser) to determine its true FMV; i.e., the maximum price the District would have to pay for the property if it instituted a legal condemnation proceeding.

Once the Board has the FMV it can formulate an initial offer to the owner – presumably lower than the FMV and expressly conditioned on voter approval of its acquisition via a referendum question on this November’s ballot.

Assuming the PRPD’s initial offer is not accepted by the owner, the Board should then invite the owner to a special meeting convened for the sole purpose of “negotiating” – IN OPEN SESSION – a purchase price less than the FMV. That way, should the owner tender any counter-offers, the Board could discuss – IN OPEN SESSION – and vote on whether to accept or reject each of those counter-offers, and what amount the District might offer in response. Any such back-and-forth would occur in full view of the taxpayers who deserve to see just how competently the Board is negotiating on their behalf.

This process could continue until either the parties reach agreement – once again, subject to voter approval in November – or the “negotiations” reach the FMV, at which point both the owner and the taxpayers would know that the District can compel the property’s sale under eminent domain/condemnation. And so would any prospective private purchaser, thereby deterring such a purchaser from insinuating itself into the situation.

Of course, such a transparent process is nightmarish to the bureaucrats and elected officials who fear the taxpayers and loathe having any accountability to them – as well as to those folks who want the Shibley Oaks property for a park but rightly fear that its acquisition, even if approved by the Board, would never pass via referendum. All those folks would prefer a secretive process – much like the Roman Catholic College of Cardinals runs for electing a pope, where nobody on the outside knows jack until the white smoke starts pouring out of the Sistine Chapel’s chimney.

While that might work for picking the religious leader of the estimated 1.2 billion Roman Catholics worldwide, it’s a perverted way of acquiring private property for a public purpose in a community of less than 40,000 residents where IOMA mandates the open and transparent process of government.

Unfortunately, opacity and unaccountability has been standard operating procedure not only here in Park Ridge but throughout Illinois, whose motto should probably be changed from “Land of Lincoln” to “Land of 7,000 Secretive Governmental Units.”

So we’ll be curious to see how many Park Board members can grasp the foregoing analysis and adopt a transparent, open-session acquisition process – assuming a majority of them can discern any kind of value to the District and its taxpayers from acquiring the Shibley Oaks property in the first place.

Updated 04.07.2018. According to yesterday’s Park Ridge Herald-Advocate story about Thursday night’s Park Board meeting (“Referendum, grants suggested for buying Park Ridge land for park,” 04.06.2018), the Board already has an appraisal for the Shibley Oaks property.

That’s a good thing.

The H-A story doesn’t say whether the District has an MAI appraisal or just a half-baked “market analysis” some broker threw together – although Commissioner Rob Leach’s comment that the appraisal was higher than the property’s actual value because Uptown properties were used as comparables suggests the latter.

That’s disappointing. But even more disappointing is the Board’s refusal to publicly disclose the amount of the appraisal/market analysis, on the grounds that it’s “confidential.”

Why? What’s so “confidential” about it?

In a word: Nothing. Which is why this appears to be just more of the same kind of anti-transparent, unaccountable secrecy that had the Park Board inexplicably discussing Sibley Oaks in closed session over the past several months.

The taxpayers deserve better.

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