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Napleton’s Secret Santa?

12.13.07

This week’s edition of the Park Ridge Journal brings a trifecta of holiday cheer.  

You can deck your halls with the City of Park Ridge’s 5% tax levy increase (“Aldermen Approve 5% Increase In Property Tax”).  You can jingle your bells with the Park District’s more modest 2.95% increase (“Park District Eyes $5.2 Million Property Tax Levy”).  Or you can let Park Ridge-Niles School District 64 really roast your chestnuts with its 11% tax increase (“Dist. 64 Agrees On $54.4 Million Tax Levy, 11% Increase”).

But before you start spiking the egg nog over the fact that the recent triennial re-assessment sent your home’s assessed value soaring by 25-40% while your market value actually may have declined by 10-15%, you might want to hoist your mug of glogg in a toast of good cheer to those lucky folks who own Napleton Cadillac. 

That’s because it’s beginning to look a lot like Christmas for Napleton – and for PRC Partners, which is likely to purchase the old Napleton Cadillac property for more condos and/or townhouses.  City Manager “Tiny Tim” Schuenke and the City’s Finance and Budget Chairman “Richie D” DiPietro are eagerly cutting a deal that will give Napleton $400,000 of the City’s TIF revenues to pay for the environmental cleanup of the old Napleton Cadillac site – which Napleton contaminated during all those years it was running a profitable dealership there. 

Apart from the financial concerns, it sure seems like wrongheaded policy to effectively reward environmental polluters by bailing them out from the consequences of their conduct, especially when the polluter clearly has the ability to pay its own way.  Is that the kind of message we, as a community, should be sending? 

And as if that weren’t enough, the City is ready to cut a tax revenue sharing arrangement with Napleton whereby the City will share any sales tax revenues generated by the new Napleton (formerly Tom Noe) dealership on a 50-50 basis once Napleton crosses a certain tax threshold – which is looking to be around the $225,000 the City says it has collected in sales tax revenue from Napleton during the past 12 months.

Why the giveaway?

One reason being floated by the City is that the Napleton deal is a lot like the giveaway to Bredemann when the City bought the Toyota and Buick properties for TA2.  You know how it goes: We let the first guy fleece us, so it wouldn’t be fair not to let the second guy do the same.  And the standard party line on these kinds of deals is that if you don’t give businesses such “incentives” they will leave for other communities. 

That kind of rationalization reminds us a lot of the scene in Mel Brooks’ “Blazing Saddles,” where the black sheriff holds a gun to his own head and stops the onrushing white citizens in their tracks with the warning: “Next man makes a move, the [N-word] gets it!”  Sure, an auto dealership that’s been located in our town for the past X number of years might pick up and leave.  But let’s face a simple fact: If a multi-million dollar business will pack it in over the kind of dollars we’re talking about here, it’s commitment to the community isn’t worth “a pitcher of warm spit” (borrowing a term John Nance Garner once used to describe the vice presidency of the United States).

What we’re really talking about here is something that’s becoming more and more prevalent in Park Ridge: Greed, pure and simple.  And also the increasingly well-known ability of savvy and well-connected businessmen like Bill Napleton and Joe Bredemann to pretty much have their way with a lifelong bureaucrat like “Tiny Tim” Schuenke, and a rubber-stamp official like Richie D.

But let’s not forget about our mayor at this festive time of year:  Howard “Old Fezziwig” Frimark, who amazingly saw nothing wrong with leading the City’s “Napleton” negotiating team even though Napleton Cadillac gave Frimark’s mayoral campaign $1,000 [pdf].  When somebody on the Council raised a question about the apparent conflict of interest, Frimark’s response was to disclose – at the January 22, 2007 Council meeting [pdf] – simply that he had “an economic interest with Napleton Cadillac,” without explaining the nature of that interest (or if it was, indeed, limited to that $1,000 campaign contribution), the extent or dollar value of that interest, or how long it had existed.

So sing a chorus or two of “Silent Night,” Park Ridgians, and worry not for Napleton and PRC.  Visions of sugarplums – and our tax dollars – are already dancing in their heads.

The Watchdog’s Kibbles And Bits – Box 2

12.10.07

Early Retirement…Or Evacuation?: At its meeting this past February 19th, the Park Ridge City Council, with the blessing of Mayor Howard Frimark, adopted an “Early Retirement Incentive” program (ERI) designed to give senior City employees a financial incentive to retire early by contributing City money to their pension fund. 

The reasons given for such a program are principally two: it’s supposed to save money in the long run by replacing the more senior, highly-paid employees with younger, cheaper ones; and it brings in “new blood” and “fresh ideas.” 

Frankly, we have never been fans of this kind of program because it seems like the replacement personnel tend to cost almost as much as the folks they replaced (and, if they are any good, they soon get raises that close whatever initial gap there may have been); and because they rarely provide enough new good ideas to justify themselves on that basis.

Plus, if the old guys and gals weren’t providing enough value for their salary and benefits, why were they kept around as long – and paid as much – and they were?

Since the ERI was passed, we have seen Public Works Director Joe Saccomanno, Asst. Development Director Brian Emanuel, Community Preservation and Development Director Randy Dangerfield, and City Manager Tim Schuenke all tender their resignations.  Rumor has it that some, if not all, of them found some additional impetus toward the exit by the increasingly political environment of City Hall.

Rumor also has it that Mayor Frimark is doing the old “Here’s your hat, what’s your hurry?” to Police Chief Jeff Caudill because he wants to install one of his cronies in that position.  Leading contenders?  Speculation centers on former PRPD officers William Hominick and Bob Kristy, with the dark horse candidate being a current member of the Des Plaines P.D. who is married to a close Friend of Frimark.

Cop Shop Fever: Now that the School District 64 Educational Services Center (“ESC”) building has been labeled a no-go, the Park Ridge P.D. is back in the hunt for a site for the big new cop shop it insists on building rather than renovating (and perhaps adding onto) the current facility. 

Forget about the fact that the City already owns two parcels – the old public works property at Greenwood and Elm, and the Courtland parcel just south of City Hall that the City bought almost two years ago specifically for a new cop shop.  The City is looking for a new site, and we have to wonder if the main impetus is private profit rather than public benefit.

As Richie Daley and his cronies in Chicago know so well, there’s money to be made from real estate deals between favored developers and public entities whose management either understands what’s going on or is about as business-savvy as a zucchini. It’s pretty well known that the property near the AT&T building is back in play.  A couple of parcels on N. Northwest Hwy. have also been hinted at.  Not surprisingly, when we tried to check the ownership of those parcels, we were stonewalled by land trusts and Limited Liability Corporations that conceal the identities of the true owners.  That’s the way the game is played when you’re trying to fly an “insider” or “sweetheart” deal under the public’s radar.

And that’s why we suggest that before the City buys another piece of land for any reason, it should insist on a full written disclosure under oath from the nominal seller as to the identity of each land trust beneficiary, each LLC member, each corporate shareholder, and each limited or general partner that has any interest in the parcel. 

Where big bucks from the public treasury are being paid out, the public deserves to know exactly who’s receiving them.

A Salute To Park District President Marty Maloney: Recently the Herald-Advocate printed a letter from one of our editors praising Park District president Marty Maloney for his principled vote against keeping Oakton Pool open for another big money-losing season (“A Profile in Courage,” Nov. 29 [pdf]).

Oakton Pool is a classic example of financial mismanagement of our tax dollars by public bodies, something on which the Park Ridge Recreation and Park District does not have a monopoly.

What business person in his/her right mind would keep open an enterprise that was consistently losing $50,000 to $70,000 a year because it didn’t have enough customers, it had too high overhead, and there was no realistic prospect of turning the situation around?  But even though Oakton Pool has been hemorrhaging red ink for years now, the Park District Board and Staff – save for Maloney – don’t have the nerve to close the spigot because it keeps a tiny-but-vocal minority of citizens happy.

But because we aren’t just critics, we will offer the Park District a solution: If Oakton Pool is as much of a treasure to the community as its fans claim, let’s see them put their money where their mouths are.  Let them all “subscribe” for an “Oakton Only” swim pass that will be priced at a premium calculated by the Park District to permit Oakton to operate on a break-even basis this summer.  If enough subscriptions are received by a March or April deadline, Oakton opens for another season; if not, it doesn’t.

Or…the Park District can keep the Oakton spigot open and watch another $50-70,000 of our tax dollars go down the drain.

“Hello, Kalo!” – Part II: Our recent bit about the Kalo Foundation’s putting the arm on the City of Park Ridge for $5,000 to fund a program and exhibition at the Park Ridge Public Library (“Kibbles And Bits,” 11-26-07) caught the attention of some Kalo-ers, who thought we were unfairly picking on this good cause.

We have no grudge against the Kalo Foundation, and we have previously admitted that $5,000 isn’t a big hit to the public purse.  But we also oppose any policy that provides public funding of private foundations whose purpose and function have no clear connection to the provision of essential municipal services.  And we like it even less when the finances of the private foundation seeking public funding are not readily viewable by the public, so that the taxpayers can judge for themselves whether the foundation is a serious endeavor rather than more of a hobby for the people involved in it.

Our tip to the Kalo Foundation:  Put your finances – your budget, your balance sheet and your profit and loss statement – on your website.  And come up with a “business plan” – which you can also post on your website – that explains exactly what you want to do and a concrete plan for getting it done.  Or just stop asking for our tax dollars and truly be a “private” foundation.

Time For Lights…Camera…Action!

12.04.07

If you’ve looked at our “banner” you know that the motto of PublicWatchdog is a quote from Thomas Jefferson: “Information is the currency of democracy.” 

More than fifty years after televisions became commonplace in most homes, we can watch the workings of the United States Congress and the Cook County Board from the comfort of our own easy chairs.  But if you want to see for yourself what our City Council is up to, you either have to hike down to City Hall or wait for the local papers to come out and hope that (a) they actually covered the meeting; and (b) they reported the important stuff accurately and completely.

But all that may change if Ald. Dave Schmidt (1st Ward) has his way.  Schmidt wants the City to start televising Council meetings live – and to replay recorded meetings – on the City’s public access channel that apparently was de-activated due to non-use.  According to Schmidt, “a better-informed public would be well worth the cost” of setting up and operating the system.  We agree.

But leave it to City Hall to find a way to gum up a good idea and keep the voters in the dark.  According to a recent story in the Herald-Advocate (“City meetings on TV could cost taxpayers $131,000+ in first year,” November 22)[pdf], the City wants to set up a Cadillac broadcasting system when a Chevy would be enough.  It’s an old government trick: If you don’t want something, make it so expensive that it becomes financially unattractive.

Instead of installing cameras only in the Council Chambers at a relatively modest cost (approximately $50,000, as best as we can estimate from the sketchy numbers the City has released), Finance & Budget Committee chairman Ald. Rich DiPietro (2nd Ward) and the bureaucrats have come up with a grand plan that requires the installation of cameras in at least three rooms at City Hall and one room at the Public Works building.  But that’s not all.

Although simply televising the meetings would be a quantum leap beyond what we currently have – which is nothing – live and recorded television broadcasts apparently are not enough for Richie D and the Killer Bs (as in “Bureaucrats”): They also want live streaming video and recorded video online because they “have a feeling most people would view it that way.” 

Here’s a suggestion: Wire up the Council Chambers only, so that the citizens can watch the Council meetings live and via taped re-broadcasts on cable access.  Then work out the scheduling so that most, if not all, of the various committees can hold their meetings in the Council Chambers rather than in two other City Hall rooms or the Public Works building.  And, at least for now, forget about wiring up the three extra venues, as well as about the streaming Internet.  That should save at least around $80,000 right off the bat, if not more.

Mark Twain is credited with comparing the making of laws to the making of sausage, and suggesting that people who like either shouldn’t watch them being made.  Being able to watch our City Council in action on television might not be pretty, but at least it would let the average voter see for himself where all the baloney is coming from.

The Golden Girl

12.03.07

Most of you probably have never heard of Linda Szczepanski.  Until recently, neither had we. 

But “Linda Ski,” as she is known in some quarters, might be one of the bigger “players” in Park Ridge politics by virtue of being the political hired-gun not only to Mayor Howard Frimark but also to two of his wing-men: Ald. Jim Allegretti (4th Ward) and Ald. Tom Carey (6th Ward).

We found out about her in researching “Hello, Kalo?” (”Kibbles and Bits,” November 26), where we questioned the wisdom of any local government body spending tax dollars on privately-owned special interests – like the City is considering doing for the Kalo Foundation, albeit at a relatively paltry $5,000.  We noted the potential for undue influence where members of such special interests have close ties to the government body from whom the funds are sought. 

Although the marquee names on the Kalo Foundation board of directors may be Vice-President Nancy Frimark, the mayor’s wife, and Secretary Sharon Curcio, the long-time executive director of the semi-secretive but now-disbanded Economic Development Corporation under several prominent chairmen (including Howard Frimark), we found it interesting that Szczepanski’s name also appeared there.

Why?  First of all, because Linda Ski is a Niles resident.  But more importantly, because she is a public relations professional and political operative who has been Mayor Frimark’s political “go to” gal since at least February 2005.  He paid her almost $28,000 during his 2005 mayoral campaign, before loaning her earlier this year to Allegretti and Carey for their aldermanic campaigns – which, in turn, paid her at least $4,000 and $4,300, respectively, for her services.

Or did they?  Actually, we’re not quite sure how much money Linda Ski got from the Allegretti and Carey campaigns because it’s not clear who was really paying her bills.  Schedule B of the “Allegretti for Alderman” D-2 campaign disclosure form [pdf] reports that Allegretti’s fund paid “LMS Political Solutions” (which stands for “Linda M. Szczepanski” and also goes by “LMS”) $4,008.05 this year; and Schedule B of the “Citizens for Carey” D-2 [pdf] shows payments totaling $3,581.29 to LMS and a payment of $709.65 to Linda Ski directly.

But while the Illinois State Board of Elections Campaign Disclosure website shows LMS [pdf] receiving five (5) separate payments in 2007 totaling over $2,300 and Linda Szczepanski [pdf] receiving six (6) separate payments totaling over $4,100, all of those payments are shown as having come from “Friends for Frimark for Mayor.”  Carey’s D-2 also reveals that “Friends for Frimark” provided $3,127.73 of the $7,025 in total contributions the Carey campaign took in.

And just to complete the circle, the “Friends for Frimark for Mayor” D-2 for 2007 [pdf] discloses those contributions to “Citizens for Carey,” shows no contributions going to “Allegretti for Alderman,” but does show a $750.36 contribution to “Friends of Robert Kristy,” the campaign fund for the Frimark ally who lost his 7th Ward aldermanic race to incumbent Frank Wsol.

One additional point of interest: Szczepanski is currently employed as Vice President of Empower Public Relations (www.empowerpublicrelations.com), the p.r. firm that just so happens to be representing Maine Twp. Trustee and Republican candidate for a 12th Judicial Subcircuit judgeship, Laura Morask.  So it looks like Linda Ski’s reach also may extend into Maine Twp. government.

What’s the bottom line on all this – other than perhaps somebody needs to be a bit more diligent with their paperwork?  Maybe it’s that if Allegretti and Carey want to be taken seriously as “independent” voices for their constituents rather than Mayor Frimark’s puppets, they have to overcome at least an inference that they owe their political souls to Frimark.  Or maybe it’s that we just need to pay a bit more attention to the “who knows whom” of Park Ridge government, and to a certain paid political propagandist with the cozy relationship to City Hall.

But one thing is certain:  If you’re looking for someone who moves in the “right” circles of the current City of Park Ridge administration to put in a good word for you or your organization, Linda Ski is somebody you should know.

The Watchdog’s Kibbles And Bits

11.26.07

(Bite-sized items of local interest)

  • Who’s His Daddy?  A letter to the editor in last week’s Herald-Advocate by Park Ridge resident Gary M. Zimmerman applauding the Park Ridge City Council for its vote to give the developers of Executive Office Plaza (“EOP”) 8 condo units more than what the zoning ordinance allows in return for some phantom “senior housing” can be judged on its own merits.  But in the interest of full disclosure, we note that Mr. Zimmerman is a little more “invested” in that plan than the average citizen.  He not only serves as member of City’s Zoning Board of Appeals but he also served as a member of the Ad Hoc Zoning Ordinance Committee which drafted the new zoning ordinance from which the EOP developers successfully obtained their variance.

Oh yeah…and Zimmerman was also the Campaign Manager for 5th Ward Alderman and lead EOP cheerleader Robert Ryan.  But you knew that, right?

  • Those Lazy, Hayes-ey, Crazy Days of Autumn.  Last week’s edition of the H-A also carried a story about the State of Illinois professional disciplinary action taken against Park Ridge insider Owen Hayes II (“Real estate agent reprimanded for misleading city during purchase,” November 22).  As reported here back on November 15 (“515 Busse Hwy – The Park Ridge Police Station That Almost Was”), Hayes was reprimanded for trying to sell a commercial building on Busse Hwy. to the City back in 2004 (for a tidy $200,000 profit) without telling the City that he was not just the broker for the property but was also its owner.

The H-A reports that 5th Ward Ald. Robert Ryan called Hayes “a good man…[who’s] done a lot for our community.”  Fair enough, but we’re surprised Ryan had no explanation why this “good man” didn’t disclose that he was the building’s owner; especially when at that very same time he was holding not one but two public positions: as a member (and past-chairman) of the City’s Economic Development Corporation, and as a member of the City’s Farmer’s Market committee – of which he remains chairman today.  Irrespective of his professional duties as a licensed real estate broker, we believe that Hayes’ positions of public trust back then demanded a lot more candor than he displayed.

We also wonder if Ald. Ryan’s comments would be so generous if Hayes were not the Treasurer and other half – with Gary Zimmerman – of his “Friends for Robert Ryan [PDF]” aldermanic campaign team that raised almost $8,000 to get him elected last April?

  • Who Ever Said He Was?  Last week’s editions of both local newspapers carried a letter from 1st Ward Ald. Dave Schmidt [PDF]denying that he is planning to run for mayor, presumably against incumbent Howard Frimark.  Schmidt’s letter made a number of insightful and spot-on comments about Park Ridge and its government, so it had value separate and apart from its primary purpose.  We also understand that the rumors of Schmidt’s mayoral ambitions have increased exponentially since he aggressively took up the cause against the EOP variance and proposed a City ordinance that would permit the recall of sitting elected City Council members.

We’ve heard no little amount of speculation about from where those rumors of “Schmidt for Mayor” are emanating.  But gee, who could ever think that someone who just became alderman would already be considering running for mayor against a guy who…hmmmmmm…began running for mayor as soon as he became alderman?  Never mind.

  • Hello, Kalo!  Last week’s edition of the H-A reports that the Kalo Foundation is coming to the City for a $5,000 handout to fund an exhibit and program at the Park Ridge Library on painter Albert Krehbiel in May, 2008.  Even though we realize that $5,000 is little more than a speck of sand on the City’s $50 Million-plus budget, we question the wisdom of adding yet another giveaway of taxpayer dollars to yet another private entity.

Actually, we have no opinion on how worthy the Foundation’s goals might be.  We also don’t know the state of the Foundation’s finances because they are not disclosed on its website (www.kalofoundation.org), or how active and successful it has been at fundraising.  We also wonder why, if the program and exhibit are so important and so worthwhile, the Foundation can’t sell 500 tickets at $10 each, or do a typical artsy-smartsy wine and cheese “benefactors” reception, and pick up the five grand the old fashioned way: By earning it. 

As a policy matter we question the advisability of any local governmental body tossing tax dollars at private special interests, however altruistic their purpose might be – especially to fund something as temporary and insubstantial as a program or exhibit when the Foundation’s first order of business should be its more substantial and permanent goal of acquiring and renovating the Kalo House. 

Government funding of a special interest becomes even more problematic, however, when the special interest has familial or other significant connections to people in that governmental unit which could make the process susceptible to undue influence.  The Kalo Foundation has those connections through Board of Directors members Nancy Frimark (wife of Mayor Howard Frimark); Sharon Curcio (former Economic Development Corporation executive director who served with former EDC chairman Howard Frimark); and, most significantly, political consultant Linda Szczepanski, whose relationship to not only Mayor Frimark but also to Frimark cronies Ald. Jim Allegretti (4th Ward) and Ald. Thomas Carey (6th Ward) are so substantial that we will be featuring them on our very next installment of PublicWatchdog.

Instead of the City giving the Kalo Foundation tax dollars, we encourage our readers who think the Krehbiel exhibit and program are worthwhile to visit the Foundation’s website and start buying up those Kalo Coffee Cups and “Orange Umbrella” prints.  Or see if you know any of the Foundation’s directors and write them a good-sized check – so that the Foundation doesn’t need to put the arm on our often far-too-compliant local governments.  

“PROUD”? Of What?

11.21.07

We here at PublicWatchdog are fans of Park Ridge.  We appreciate its character as a quiet, predominantly single-family home, bedroom suburb of Chicago conveniently located to almost anything a person could need or want.  And we get the impression that most of the people who live here feel the same way.

Which is why we continue to be amazed at how a relatively small group of people seem so intent on making significant changes to the small-town character and feel our community – with little or no accountability to the residents.  And we’re even more amazed at how they seem to be getting away with it.

It has been several years since a number of our local movers and shakers, many of whom are business owners and real estate professionals with economic interests in commercial property in town, decided that they were tired of the traditional Park Ridge and embarked on an Uptown Redevelopment (“UR”) plan to change the face and the character of the Uptown area. 

They baited us with talk about making Uptown a retail mecca, but they immediately switched us into helping the developers pick the “low-hanging fruit” – building condos and townhouses – while throwing in only enough retail to make things look legit.  After baiting us with rumors of big-name retailers like Barnes & Noble, Whole Foods, The Gap, Ann Taylor and Crate & Barrel, they smoothly switched us to lower-profile brands like Trader Joe’s, Chico’s and Joseph A. Banks.  Meanwhile, big-time retailer interest was so lacking that 15,000 square feet of retail space was redesigned into more condos. 

With such an inauspicious beginning to this redevelopment, one might expect that adopting a wait-and-see attitude as to further development would be the most prudent approach.  But now comes word that some of those same movers and shakers who gave us Target Area II have formed a new organization in town that is devoting its efforts to pushing for even more – and faster – redevelopment. 

Calling itself Park Ridge Organization for Uptown Development, or “PROUD,” it is billed as a not-for-profit, volunteer-based organization – although it already has received a substantial amount of taxpayer support by virtue of the City’s Economic Development Director, Kim Uhlig, having spent a great deal of her time during October assisting PROUD in its organization and start-up.

In a recent letter to the Herald-Advocate (“Help PROUD unify area businesses here,” Nov. 1 – PDF), local dentist Ross Rubino – not surprisingly, an Uptown commercial property owner – touted PROUD as “an important advocate for change” in response to what he called the “glacial pace” of UR.  He identified PROUD’s goals as making Uptown “as vibrant and meaningful…as possible” by promoting redevelopment that will “maintain the basic feel of our community” while “enhancing our considerable assets.” 

“Vibrant” has been the main UR buzzword since Day One, although not even UR’s biggest cheerleaders have ever explained exactly what it means in connection with our unique community.  Does “vibrant” mean 20% more people milling around the streets at night?  Or a 2:00 a.m. jazz club on Prospect?  Or 35% more businesses staying open past 8:00 p.m. on week nights?  Nobody seems willing to say.

The same goes for spurring redevelopment that will “maintain the basic feel of our community.”  Nobody is explaining how the “basic feel” of Uptown is being “maintained” by the addition of those hulking 4-story buildings in Target Area II that dwarf both the neighboring buildings (even Summit Square retirement home) and the structures formerly on those sites.

And what specifically are “our considerable assets” that are being enhanced by all this development?  Park Ridge’s primary “asset” has always been its location – comfortably close to both the Loop and O’Hare Airport, not too far from Lake Michigan, with relatively convenient access to the Tri-State and major shopping venues like Old Orchard, Northbrook Court, Woodfield Mall and Oakbrook Court.  Has the new development somehow changed our location when we weren’t looking?  

According to Rubino, PROUD is also trotting out the “more dining, shopping, and event options in our Uptown area” party line – the same tactic that was used to sell UR to us several years ago.  But PROUD has an extra card up its sleeve: The prospect of Park Ridge signing onto the “Main Street” redevelopment program [PDF], which ostensibly is designed for historic preservation of traditional business districts.  Neither Rubino nor PROUD are saying, however, what “unique [Uptown] qualities” and “historic [Uptown] buildings” deserve to be enhanced and preserved through the “Main Street” program.

We support reasonable development that both preserves and enhances the unique character of our community.  But the current Target Area II development eliminated rather than “preserved” what was on that site; and we won’t be able to tell whether it enhances our community until it is completed and our residents get an opportunity to more readily judge for themselves whether the results are attractive enough and economically successful enough to justify more of the same.

For those reasons alone, any rush toward new development deals would be foolish.  And being foolish is certainly nothing to be PROUD of.

515 Busse Highway – The Park Ridge Police Station That Almost Was

11.15.07

As the discussion of a new 39,000 square foot police station begins to heat up again now that it looks like School District 64’s headquarters at 164 South Prospect is not a viable site, we are reminded of the poem that begins “For want of a nail…” and goes on to describe how a kingdom was lost because one single warhorse lost its shoe due to a missing nail.  With that poem as background, it might be worth a short trip down memory lane to consider the new police station that we almost had back in the Spring of 2004.

The story actually began on January 23, 2004, when local real estate broker and long-time political insider Owen J. Hayes II formed an Illinois limited liability company named “515 Busse LLC,” apparently for the purpose of purchasing the commercial property located at 515 Busse Highway – across the street from the Public Works Building – which was then owned by the American College of Foot & Ankle Surgeons.

The timing of Hayes’ efforts to acquire that property were serendipitous: The College was looking to move out of town and its Director, J.C. (Chris) Mahaffey, a former chairman of the Park Ridge Economic Development Corporation (“EDC”), had reached out to the EDC’s executive director, Sharon Curcio, for help in finding a buyer.  According to a letter written by Mr. Mahaffey [PDF], Curcio “mentioned” the City’s interest in acquiring a larger police facility and Mahaffey asked her to suggest the College’s building.

Although Curcio reported back that the City was “not interested,” both City Manager Tim Schuenke and Chief of Police Jeff Caudill are reported to have said that the property was not brought to their attention when it was originally placed on the market in November, 2003.  It remains unclear how the City eventually became interested in the 515 Busse building, but sometime in late December 2003, Hayes – coincidentally, also a former EDC chairman – reportedly contracted to purchase the building.

For those of you who don’t remember the EDC, it was formed in the early 1990s to promote business development and growth within the City.  Although almost 50% of the EDC funding came from the City and the EDC’s office was located in City Hall, for almost its entire existence its meetings were closed to the public.  By 2004, Hayes’ fellow EDCers included current 5th Ward Ald. Robert Ryan and former 4th.Ward Ald. John Kerin; and Mayor Howard Frimark had only recently resigned his charter membership.

So Hayes was getting set to close on the 515 Busse property when the City became aware that property was for sale.  On March 30, 2004, Chief Caudill and City Manager Schuenke were given a tour of the building by Hayes, who ostensibly was acting as the broker for the College.  The property was listed for sale at $1,385,000, and Hayes indicated that another buyer was interested.

On April 5, 2004 city staff made a presentation to the City Council, and the Council instructed the City Attorney to prepare an offer at $1,150,000 to purchase the property. By April 9, however, Chief Caudill was tipped about a possible transfer of ownership of that property.  Upon checking the public record, he determined that ownership of the property had been transferred to Hayes on April 1, 2004, for a purchase price of $950,000.

That led to a closed session meeting of the City Council on April 19, [PDF], at which time the Council was informed about the property transfer to Hayes.  After deciding to instruct the City Attorney to proceed with a formal complaint against Hayes to the Illinois Office of Banks and Real Estate (the governmental body that regulates real estate brokers), the Council deadlocked 7 to 7 on a motion to pursue the purchase of the 515 Busse property, but at a price of $975,000.  At that point, the Council abandoned any further efforts to acquire that site; and the property was subsequently sold and now houses Avenues to Independence and, until very recently, the Howard P. Frimark Insurance Agency.  The Mayor has reportedly moved his business to 422 N. Northwest Highway, which appears to be another Owen Hayes owned building. [PDF].

On April 27, 2004 the City Attorney filed a complaint against Hayes [PDF] with Commissioner D. Lorenzo Padron at the Department of Banks and Real Estate.  Because of understaffing of that Department, however, the investigation of the City’s complaint languished until November, 2006, when an inquiry from an alderman prompted the City Attorney to follow up on the matter.

On October 25, 2007, a consent order [PDF] – the equivalent of a plea bargain – was entered by which the Department of Financial and Professional Regulation issued a formal reprimand against Hayes’ real estate license for violating 225 ILCS 454/20-20(h)(12)[PDF] – engaging in “dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud, or harm the public.”

Nevertheless, Hayes remains active in the community, continuing to serve as the chairman of the Farmer’s Market and recently serving as Treasurer for Ald. Robert Ryan’s 5th Ward campaign.

But how Hayes handled this particular transaction reveals how deals can be done in ways that look, sound and smell fishy when made public – and how, as the State’s Department of Financial and Professional Regulation found, they can violate the law.

But even worse is the fact that the kinky-ness of this deal may have cost the taxpayers a bundle of money.  Because of Hayes’ wrongful non-disclosure of his interest in the 515 Busse property, the City Council abandoned its efforts to buy that property for a new police station at either the original offer of $1,150,000 or the reduced offer of $975,000 – and it is now shopping for a new cop shop of almost double the size of the 515 Busse building…at more than ten times the price.

“For want of a nail….”

You Can’t Tell The Players Without A Scorecard – Part III

11.13.07

Since “The Manor” was annexed to Park Ridge’s Second Ward, Rich DiPietro has been the only alderman it has ever had.

DiPietro, known as “Uncle Rich” to some, “Richie D” to others, and labeled “Lord of The Manor” by the authors of Park Ridge Underground, has been a member of the City Council since 1995. He was elected and re-elected as a member of the Homeowners Party, facing (to the best of our knowledge) only one opponent – in 2003, when he defeated a badly underfunded political unknown by a mere 21 votes (298 v. 277).

But don’t let his quiet grandfatherly manner and Peter Falk/“Columbo”-esque style fool you. Richie D knows exactly what he’s doing and almost always gets what he wants – as was seen this past Monday night (Nov. 5) when he and three other aldermen allegedly beholden to Mayor Howard Frimark put the final touches on a sweetheart deal for the developers of Executive Office Plaza (“EOP”).

By a 4-3 vote, DiPietro, 4th Ward Ald. Jim Allegretti, 5th Ward Ald. Robert Ryan, and 6th Ward Ald. Tom Carey gave EOP developer Park Ridge 2004 LLC, led by Frimark supporter Bruce Adreani and his Norwood Builders, 8 more condo units than the 160-unit maximum the city’s recently-rewritten zoning ordinance permits. And they did it under the guise of ensuring that the developer will make 50 of those 168 units “senior housing,” although that “senior housing” requires only 1 “senior” (55 years old or older) per unit and allows an unlimited number of non-senior residents so long as they are age 21 or over.

Termed a “travesty” by 1st Ward Ald. Dave Schmidt, who led the opposition to this end-run around the zoning laws and was joined by 3rd Ward Ald. Don Bach and 7th Ward Ald. Frank Wsol in voting “no,” the passage of this variance finally got some of the residents opposing it asking the same question about DiPietro that they had previously asked about variance cheerleaders Allegretti and Ryan: “What is he thinking?”

As with Allegretti and Ryan, we don’t claim to know. But as with Allegretti and Ryan, some clues might be gleaned from public records that provide some useful transparency concerning Richie D’s political friends and relationships.

For those of you without a scorecard, DiPietro is the owner of Cross Tech Communications, a printing and graphic services business located at 111 N. Jefferson in Chicago. Cross Tech got $2,470 of sign business from Frimark’s mayoral campaign back on 2/17/05. Was it merely a coincidence, then, that Richie D personally contributed $250 to Frimark’s campaign on 3/26/05 – and an even bigger coincidence that Cross Tech dropped $440 of “in kind” (e.g., in printing services) contribution to the Frimark campaign on 3/31/05? Cumulatively, that’s $690 in contributions for $2,470 in revenues – PDF, not a bad deal at all.

And in a similar type of coincidence, Cross Tech contributed $2,250 and got $3,281 of printing business – PDF from Citizens for Strong Schools (“CSS”), the campaign fund that supported the District 64 tax increase referendum this past April. Cross Tech’s “in kind” contribution was made on 2/15/07, with $1,958 of business coming back to Cross Tech on 3/21/07 and another $1,323 of business received on 3/23/07. That’s not quite as profitable as the contributions to Frimark’s campaign, but it clearly beats a sharp stick in the eye.

These figures also don’t include any goodwill that DiPietro or Cross Tech may have earned from rubbing (or bending) elbows with other big CSS contributors like Norwood Builders (at $1,500) and PRC Partners (at $2,000) – PDF

Not all of these relationships involve political contributions. For example, in another one of those increasingly unsurprising coincidences, DiPietro used Norwood’s EOP project architect, OKW Architects, Inc., for his own business in 2000, a fact that he disclosed at the August 20, 2007, City Council meeting – PDF after one of OKW’s principals, Park Ridge resident Andy Koglin, spoke in favor of the EOP project. And for those of you without a scorecard, OKW is also the architect for PRC LLC, the developer of the Target Area II condos and townhouses which DiPietro also supported.

Once again, we have no hard evidence that any of these transactions and relationships provided a quid pro quo for DiPietro’s “yes” vote on the EOP variance. But they reveal a direct economic relationship between DiPietro and Mayor Frimark, as well as an indirect one (through CSS) with Norwood Builders – relationships that might (and we stress might) have influenced DiPietro’s decision-making on a Norwood project like EOP that Frimark also favors; and which could influence his decisions on other matters in the future.

Hurray For Craig Adams!

11.09.07

For years we have been reading the two main local newspapers and complaining about how often the reporting is just plain shoddy.  One of our biggest complaints was the newspapers’ failure to report – on non-unanimous votes – the names of each official and how he/she voted.

So today we want to give a big shout out to The Journal’s Craig Adams, whose article in this week’s edition about the Park Ridge City Council vote on the Executive Office Plaza zoning variance (EOP Condos OKd, November 7) not only identified each alderman and how he voted, but even gave the sequence of the voting – thereby correctly noting that 3rd Ward Ald. Don Bach’s “no” vote, coming after Ald. Rich DiPietro’s deciding fourth “yes” vote had already been cast, was rendered “moot.”

Way to go, Mr. Adams!  Thanks for contributing to a better understanding by your readers of exactly what’s going on at City Hall.

You Can’t Tell The Players Without A Scorecard – Part I

10.30.07

Ever wonder why some elected official votes a certain way for no apparent reason? Let’s consider the current debate over the variances being sought by the developer at Executive Office Plaza (“EOP”), between Touhy and Northwest Hwy. east of Washington.

The developer, Park Ridge 2004 LLC, a limited liability company whose shareholders include Norwood Builders’ Bruce Adreani, former Park Ridge resident and alderman John Chipman, and prominent Schaumburg developers Lance Chody and James Sharpe, wants to put 168 residential units on that site – 8 more than the new Park Ridge zoning ordinance allows.

To win that variance, the developer is including 50 units of what it has labeled “senior housing” – intended to be owned and occupied by people age 55 or older. But by a 5-2 vote on October 15, 2007, the City Council again deferred a decision on that variance, this time because the “senior housing” language in the variance ordinance did not ensure that those units would actually become – and remain – owned and occupied by people 55 and older.

The two votes against deferral came from 4th Ward Ald. James Allegretti and 5th Ward Ald. Robert Ryan. Their votes had residents of both those wards, and especially the 5th Ward residents in the EOP neighborhood who actively opposed the variance, wondering: “What are those two guys thinking?”

We don’t claim to know the minds of either of those aldermen, but certain facts and circumstances might – and we emphasize might – suggest a motive or two.

Take Ald. Allegretti, an attorney who could be expected to demand a locked-down guaranty for the “senior housing” if it actually mattered to him. He explained his “No” vote by saying that he wanted the deal done because it was taking too long, even though the Council didn’t receive the developer’s 168-unit version of EOP until August, after its 176-unit version crashed and burned. Attorney/Ald. Allegretti seemed unfazed by fellow attorney and 1st Ward Ald. Dave Schmidt’s identification of loopholes in the variance ordinance big enough to “drive a condo through.”

For those without a scorecard, Allegretti was the handpicked appointee of Howard Frimark (who reportedly favors the EOP variance) to fill Frimark’s aldermanic seat after he was sworn in as mayor. Allegretti sailed through his City Council confirmation hearing on June 6, 2005, in part because neither he nor Frimark had disclosed that, just three months earlier (March 7, 2005), Allegretti had contributed $300 to Frimark’s campaign fund [PDF] – a fact that was not yet a matter of public record (and, therefore, not discoverable by the aldermen voting on his appointment) because Frimark had not yet filed his report identifying Allegretti’s campaign contribution.

Just a coincidence? Maybe. But on July 13, 2005, little more than a month after his confirmation, Allegretti dropped an additional $200 into Frimark’s coffers. In Chicago, in Cook County, and in many parts of this state, that’s what sometimes passes for “pay to play” – although we suspect that in Chicago it would cost a lot more than $500 for an aldermanic appointment because the job pays around $100,000 instead of the $1,200 Park Ridge aldermen receive.

Allegretti also coincidentally shares office space with Frank DiFranco, the prominent local attorney who is representing Adreani in connection with criminal charges arising from Adreani’s brief encounter with a temporary waitress at the Park Ridge Country Club during the summer. And as a further coincidence, DiFranco (through his law firm DiFranco & Associates) [PDF] and Adreani (personally and through Norwood) [PDF] contributed $2,100 and $500, respectively, to Frimark’s mayoral campaign.

Ryan’s story is somewhat different. He explained his unabashed support for the variance by citing the “dire need” for senior housing in Park Ridge – without providing any documentation of such need, and without explaining why he would support a senior housing plan that could end up providing no senior housing at all. In response to Ald. Schmidt’s loophole complaints, Ryan (who is rumored to have met privately with the developer on the senior-housing alternative) applauded the developer for having made a decent effort to reduce the number of units for which it wants the variance.

Again for those without a scorecard, Ryan is a vice-president of HDR Engineering, a division of an employee-owned architectural, engineering and consulting conglomerate that markets itself to governmental bodies and developers of projects such as EOP – and such as what is currently contemplated for the other Target Areas of Uptown Redevelopment. HDR has already done business with the City on the Summit Mall parking lot project, so Ryan’s voting to help out a developer like Norwood (and EOP investor developers like Adreani, Chody and Sharpe) get this project built would appear to be good marketing for both Ryan and HDR.

Ryan reportedly was encouraged by Frimark to run for alderman against local preservationist and residential density foe Judy Barclay. We can’t tell whether any of Ryan’s campaign contributors might be playing a significant role in his decision-making on EOP, however, because Ryan’s campaign disclosure report [PDF] is curiously heavy on non-itemized contributions: Of the $7,670 in campaign funding he reported, $5,295 of it – almost 70% – is non-itemized, meaning it was donated either in ways that were not identifiable to a particular donor, or by individual donors who did not reach the cumulative legally reportable per-donor minimum of $150.

We haven’t heard any reports that Ryan or his campaign treasurer, local realtor Owen Hayes II, collected all that non-itemized cash by manning “Ryan for Alderman” kettles while dressed in Santa suits. But Ryan did have a fundraiser at “Hay Caramba!” restaurant that could have generated a lot of spare change. And although Hayes apparently did not contribute the $150 minimum needed to become a Ryan itemized contributor, Hayes did contribute $1,250 to the Frimark mayoral campaign [PDF] in 2005. So it seems like Ryan and Frimark share the favor – if not the money – of Mr. Hayes. None of these relationships should be viewed as inescapably untoward or nefarious. But they are the kinds of facts and circumstances that might – and again we emphasize might – contribute to the average citizen’s understanding of why a particular elected or appointed official is taking a particular position on a particular issue.

After all, that’s the principal reason we have these campaign disclosure laws in the first place.[PDF] indicates the link is to a PDF file.