McHenry County Blog

CBS ran a story about a McHenry County woman and her Lake County sister who invented an I-Pass holder.

As with many inventions, this one came out of frustration. The sisters--Ellen Jakubicek of Cary and Karen Rafalowitz of Lake Zurich—wanted to share the same I-Pass transponder. The Velcro wasn’t up to the constant pulling off. And the rear view mirror kept getting moved.

Jakubicek credits her husband Frank with the idea in the Northwest Herald.

The result was “SharePass,” a plastic container in which any state’s transponder will fit. It costs $6 and is sold at grocery and hardware stores.

In the Northwest Herald, the sisters credited McHenry County College’s Small Business Development Center for helping them get their business off the ground.

Before one can run for governor, one must get on the ballot.

Gubernatorial candidate Jim Oberweis apparently thinks “standing up for Marriage and OUR Family Values” is the way to corral enough Republican primary votes to make into the main event in November.

Wednesday my McHenry County mailbox received an 8½ by 11 inch glossy Oberweis card with a photo of a man wearing a wedding ring, putting a diamond ring on a woman’s ring finger.

Read what he says on the back of the card here.

Picture this on the bumper of a red Jeep at a Crystal Lake gas station:

The woman driving the Jeep said it was her second one. When a man ruined her bumper, she insisted that he get her another bumper sticker to replace the one he damaged.

Ex-Near North Insurance mogul and now sentenced federal felon Mickey Segal made most of his campaign contributions through his corporate entities. $17,000, however, came from his personal checking account.

Let’s call them “Personal Favorites.”

All but one of them identified Segal as “Michael.”

Gubernatorial candidate George Ryan reported his name as “Mike” in a thousand dollar donation received right before his 1998 election. Ryan got another $1,000 in 2001.

Both Republicans and Democrats got money.

Read the other Illinois politicians who received personal checks from Segal by clicking here.

The mysterious white card just arrived from the McHenry County Supervisor of Assessments.

It says for tax purposes the value of homes in McHenry County's most populated township have increased almost 7% (actually, 6.96%)--about the same as last year.

Too often, when property owners see this annual card, they think that their tax bills are also going to increase by 7%.

Not so since the tax cap took effect in the early 1990’s.

The total amount taxes that schools, municipalities, park districts, etc., can get is limited to the increase in the Consumer Price Index (CPI), plus new construction.

That’s not quite right for folks in the Crystal Lake-Cary-Fox River Grove area, and anywhere else where a Tax Increment Financing district has been approved, however.

As the on-going fight in Crystal Lake has shown, the local tax districts will not lose any money. They will still levy the maximum allowed under the tax cap rules. That means your tax bill will increase more that the CPI goes up.

To find out why Tax Increment Financing districts will increase your tax bill more than the CPI, click here.

"I don't want politics in the record unless we can't tell the story without them," (Judge Rebecca) Pallmeyer said last week before the trial broke for Thanksgiving.

Associated Press reporting what the Federal judge in the George Ryan case said.

The quote was contained in Mike Robinson's Monday's article about how the judge did not want to allow testimony of how Ryan courted the votes of gays and lesbians, but did not want any expenditures to show up on his campaign finance reports.

The Judge previously refused to allow testimony about how Ryan provided "little work jobs" to former State Representatives Roger Stanley (R-Streamwood) and Ted Lechowicz (D-Chicago) in order to increase their pensions.

Stanley was released from jail in August for charges unrelated to the pension arrangement.

If this trial is not about the way politics works in Illinois, what is it about?

With all the Illinois politicians having summer homes in Wisconsin, it should be little wonder that they should get involved with Wisconsin politics.

Do the names Stuart Levine, Nicholas Hurtgen, Joe Cari and John Glennon have a bi-partisan ring to them?

They should.

Each has been indicted by Chicago U.S. Attorney Patrick Fitzgerald for alleged illegal activities in Illinois. Two have pleaded guilty.

All have made contributions to current candidates for governor in Wisconsin.

While the four mentioned above have contributed to Republicans, the Wisconsin Democracy Campaign has listed what it calls “shady” contributions to incumbent Democratic Party Governor Jim Doyle, as well. Not all of contributors would make my “shady” contributor list, but they are posted here as the Democracy Campaign listed them.

If you are a real glutton for detail, you can see all Illinoisians--probably some you know--who are dipping into the politics of Wisconsin's gubernatorial campaign. (Can you find the former statewide Republican office holder who contributed $1,000 to the current Wisconsin Democratic Party governor?)

"It's a bipartisan scandal," Mike McCabe, executive director of the Wisconsin Democracy Campaign told the Milwaukee Journal-Sentinel yesterday. "It's one piece of evidence of how political corruption is taking root in this state."

"Thinka Topinka" is about as corny as one can get, but it’s State Treasurer Judy Baar Topinka’s web site for governor.

There’s even a downloadable petition.

Will she "Think Poe" for her Lt. Gov. candidate?

Here’s a copy of her letter asking for help in getting on the ballot:

Dear Friend:

Are you ready to change this State? I plan to formally announce later this month that I will run for Governor of the State of Illinois. It is a big undertaking and frankly, I could not have made it this far without the support of friends like you. From my first race for State Representative to my career as Illinois State Treasurer it has been a group effort. Now I need your help more than ever.

In order to get on the ballot I must file 10,000 signatures with the State Board of Elections next month. Your help collecting those signatures will be invaluable. Please download and print the petition forms located on this page and have your family, friends and neighbors sign them. Instructions for completing and returning them are included with the petitions. It does not matter if the page is full, every signature counts.

Thank you again for all of your help; together we will win!

Sincerely,

Signed Judy Baar Topinka

For contact information, click here.

“If you’re not OUTRAGED
You’re NOT paying attention”

Seen on a 2-door Chevy driven by a youngish woman driving west on Route 14 and turning south onto McHenry Avenue.

I’m not a fan of tollways. Motorists are forced to pay twice—once at the tollbooth and a second time at the gas pump. And, maybe even a third time, since the Illinois Department of Transportation (not the Toll Highway Authority) gets federal aid for each mile of the tollway's Interstate highways.

In Illinois, tollways are used to suck money out of the six-county area to build freeways Downstate that cannot be justified on the basis of traffic count. (The general rule of thumb is that one needs 20,000 vehicles a day to justify a four-lane expressway. Some of the diverted money is spent on other Downstate highways.)

Chicago Tribune transportation columnist Jon Hilkevitch’s article entitled, “Wider I-55 is in talking (but not funding) stage,” however, pulled up a thought from my American Legislative Exchange Council (ALEC, for short) days.

Serving as chairman of ALEC’s Transportation Task Force, I learned how the private sector is sometimes willing to finance public improvements. Locally, Peotone Airport comes to mind. There the private sector seems to have agreed to build the airport.

So, why not allow the private sector to add lanes to expressways?

For more information, click here.

Left Stream Sunday Chicago Tribune columnist Rick Pearson says that National Republican Party Chairman Ken Mehlman was in Illinois last week. Mehlman urged "a return to the traditional grass-roots style of organizing that proved so successful for the Bush campaign in Ohio last year.”

Mehlman wants to recruit “40,000 volunteers” and establish “a system of voter recruitment, registration and ID based on old-style, door-to-door canvassing combined with telephone banks,” Pearson writes.

It appears that either Mehlman did not tell the audience of party leaders about the spark plug that ignited the firestorm of volunteers or that Peason did not report it.

To find out the issue that inspired thousands to volunteer in Ohio, click here.

I have written a number of articles about the Crystal Lake Tax Increment Financing (TIF) districts, one of which the Crystal Lake City Council passed without dissent on Nov. 15th and the other of which is scheduled for a vote on Dec. 6th.

If you click here, you will see a list of most of them.

Otherwise, to find the TIF articles, you could go to the bottom of the articles for the earliest one and work your way up to the most recent one posted.

Last Wednesday, the Chicago Tribune’s top columnist, John Kass, took another swipe at the McHenry County State’s Attorney’s and Sheriff’s Offices.

Kass championed Mike Clarke, a part-time turkey farmer who lives in Northwestern McHenry County. Clarke was giving away turkeys to those who came to his defense when he was arrested for defending his and his “woman alone” neighbor’s homes.

Kass describes Clark’s crime:

Defending their property and that of a neighbor, late at night, in the country, when an unidentified man in a hooded sweatshirt came wandering around the place, refusing to identify himself despite repeated pleas to do so that were heard by witnesses….Mike took his shotgun and had his son call the police. Mike unloaded the gun and gave it to his son. Then they grabbed the man. There was a struggle, punches were thrown, and the man in the hooded sweatshirt who had refused to identify himself turned out to be a neighbor...40 minutes (later) Mike yelled at the cops for showing up late…He and his son were indicted on felony mob action…(Clarke) was suspended from his (cable company) job without (months of ) pay….(State’s Attorney Gary Pack’s office) offered to drop the felony charges if Clarke and his son pleaded to misdemeanors. Mike had no recourse…

He “got his job back…And the politicians in McHenry, the state’s attorney and the sheriff, covered their political flanks with the honor of a good family."

Kass adds, “Their name was shamed, and Mike and his son were put in the paper as criminals.” Kass must be talking about the Northwest Herald. The article about the March 25, 2004, incident does not seem to be the Herald's data public data base.

Under the heading of “If you don’t like the rules, change them” comes a new law which the State Board of Elections identifies as “sponsoring entity.”

Before, if at any person or entity contributed at least one-third of total funding of a political committee, that contributor had to be listed as a sponsoring entity of that committee.

Now, there are three exceptions:
· An established political party,
· A partisan caucus of either house of the Illinois General Assembly, and,
· The Speaker/President or Minority Leader in the Illinois House/Senate

This would allow, for example, a Downstate Democrat who was strongly funded by one of campaign funds controlled by Speaker Mike Madigan to avoid revealing that fact in the title of his/her campaign committee.

The law joins the special right to conceal staff time sheets, which the Leadership previously granted to itself.

Both are right out of “Animal Farm,” in which some animals are more equal than others.

But, as Lynn Sweet, Washington correspondent for the Chicago Sun-Times, stressed in one of her columns, “Abuse of power comes as no surprise.” (Translated from a small billboard near the Amsterdam train station, which she photographed.) She said that she “did it to remind myself of the power of the people I cover—mostly government and political officials—and of the power I have as a journalist.”

Right after the Crystal Lake City Council voted unanimously to approve the Main Street Tax Increment Financing district, I wrote the following:

With both Crystal Lake school districts and the park district opposing the Vulcan Lakes/Route 14 TIF, the Crystal Lake City Council approved a pre-meeting agreement to postpone the vote until December 6th.

With the seven council members were unanimous in their approval of the Main Street TIF, next to the successful Downtown TIF, one wonders if there are some shakier votes on Vulcan Lakes which will take a 3/5 majority, rather than a simple majority.

My guess is that a glossy promotional piece will be mailed to all Crystal Lake residents showing the city’s vision of the re-developed area.

Anyone want to wager that it will not be paid for with public money that will later be reimbursed from the TIF district bond proceeds?

Someone should have taken up my offer.

For the rest of the story, click here.

In the late 1990’s after my bride and I had put a stucco addition on our home, I discovered a company called Solarcrete. I wish I had discovered it before.

When I set up state government’s purchasing of natural gas from the wellhead, rather than from various gas companies in 1996 or 1997, the price was 20-some cents per therm. My October NICOR bill was $1.125 per therm.

Clearly heating costs are going to be a growing part of every school district’s budget.

I can’t remember how I found about Solarcrete, but its president, Pete Konopka, educated me well. (The firm is located in Union with a mailing address in Huntley.)

He told me that two—maybe three now—superintendents ago in Huntley, the school superintendent complained to him of heating costs. Konpoka told him of how his construction system could make new schools so much more energy efficient.

From the schools constructed since Huntley and Lake in the Hills populations skyrocketed, one would assume that more recent school superintendents were not as concerned about energy efficiency as the man Konpoka talked with.

Here’s what the firm does that traditional designers and builders of schools don’t.

Get the answer to this question and see heat losses for various types of constuction by clicking here.

Labels: Energy Efficiency, Pete Konopka, SolarCrete

In Will County, the phenomenon of voters showing their displeasure with the way the "growth" is being handled can also be seen.

For the rest of the story, click here.

In northwestern Kane County lies Hampshire, right next to a Tollway exit.

Its village fathers decided to push a new subdivision annexation through before the election. Citizen challengers, including new Village President Jeffrey Magnussen, beat Village Trustee William Swalwell 55%-45% with his slate, giving them control of the village board.

South of there in western Kane County lies tiny Virgil.

The village was formed in the early 1990’s in response to the Kane County Board’s talking about putting a landfill in Virgil Township.

In April’s election, village residents overwhelmingly passed an advisory referendum opposing annexation of Founder’s Creek, a huge 1,500-acre home development proposing 2,700 new homes. The margin was 69% to 31%.

To find out more about rampant growth revolts in Kane County, click here.

In the center of McHenry County, the growth tip is Woodstock, the county seat.

There, local voters face the building of thousands of new residences and a huge school bond issue next year for the schools which the developers don’t finance.

The subdivisions were zoned after rampant growth opponents lost their temporary control of city council. After a spate of annexations of land for new subdivisions, people realized that neither the developers nor the new residents would pay for the required new schools.

About a year ago, the Woodstock school district asked the city council to impose “lag fees.” These fees require the payment of an equivalent of the property taxes that would have been paid had the home been on the tax rolls. None of the city council favored the proposal.

When one city councilmen, Brian Sager, decided to run for mayor, he started promoting the “lag fees,” which can only be imposed at the time of an annexation agreement. The switch in position camouflaged his previous pro-growth stance.

Playing into the fear of higher future taxes, Sager beat two-term Mayor Alan Cornue by a margin of 65%-35%. His two city council running mates also won. Of course, the lag fees cannot be imposed on the already approved subdivisions.

Cornue, whose father was the McHenry County Supervisor of Assessments, is moving to Lake Geneva and Milwaukee.

In Part III, read what happened in Kane County.

The growth wave radiating from Chicago resulted in the ousting of numerous outer ring city and village officials last spring.

In one phase of an ever-repeating cycle, municipal officials “give away the store” to one or more developers. Citizens become enraged at their inability to influence the outcome perpetrated by the incumbents. Then, they run for office, often taking out the offending village officials. Eventually, those who have the big bucks at stake usually outwait the citizen-activists and re-take control.

Perhaps the most startling loss in the collar counties was the write-in upset of Richmond’s Mayor Kevin Brusek. Richmond is a town at the Wisconsin border in northeastern McHenry County.

Two years ago, a faction fed up with the one-sided deal that had been cut with a developer took control of the village board.

Their efforts to improve the situation resulted in three SLAPP suits from the developer against the new village officials. All three suits were dismissed, but it cost newly elected village trustees Dan Deters and Chuck Schultz tens of thousands of dollars in legal fees. (SLAPP is short for Strategic Lawsuits Against Public Participation.)

This year, the mayoral petitions of Schultz, the group’s candidate to knock off village president Brusek, were challenged and Schultz took himself off the ballot. Hence, the need for the write-in candidacy of Lauri Olson. The citizen-activist beat incumbent Mayor Brusek 54%-45%. The two Brusek trustee candidates also went down, giving the reformers 5 of 6 village board votes.

In Part II, read about what happened in Woodstock.

Who would have thought that a bunch of guys out for fun in 1994 would end up in Chicago’s Thanksgiving Day Parade next week?

Will they be “marching down the street with black socks, American flag boxer shorts and white tank tops,” as their web site says they usually do? Or will it be too cold?

To find out, you’ll have to watch Channel 7 from 8:30 to 11 AM on Thursday.

The odds will be good, however, that someone will be barking out cadence such as that posted on its web site:

· She don't know and I don't care, I'm wearing yesterday's underwear.
· All our wives say we are lazy, our laying around just drives them crazy.

King Shepley desires to have, not only his subjects pay extra booty for the enhancement of his domain, he wants those subjects outside that domain to share in the “privilege” to “donate” some of their money. But they should not expect to get anything in return.

Perhaps this is really just a continuation of what a prior king of this domain of Crystal Lake began in 1991 when on behalf of the domain he entered into an agreement with an aggregate company to mine all the sand and gravel on a portion of a road that ran from Virginia Road in Crystal Lake to the Fox River.

For more satire from Chaucer, click here.

Only citizen--now Huntley School Board member--Larry Snow of Lake in the Hills figured out how the 55 cent tax hike referendum proposed by Huntley School District 158 last fall was being misrepresented.

The school board put a 55 cent tax hike on the ballot, but forgot to tell the folks in the subdivisions that, if passed, the referendum would allow the school board to hike its tax rates by 55 cents per year for each of the next five years until the new maximum tax rate approved by a bare majority vote was reached.

Here was this not-so-ordinary citizen Snow pointing out that the Emperor had no clothes.

Lots of people did not believe him.

How could he know more than the trusted school board members and district officials?

Well, it turns out that he did.

The reporters who underreported the magnitude of the Huntley school tax hike proposal now are a lot more knowledgeable.

Click here to read what Daily Herald reporter Jeffrey Gaunt says about the Dist. 300 proposal.

Labels: District 300, Huntley School District 158, Larry Snow, Referendum

Today a mass mailer arrived from the Jim Oberweis campaign, but, unlike the recent Steve Rauschenberger and Ron Gidwitz pieces, this was directed at a subset of Republican voters, rather than to them all.

To Pro-Lifers, to be specific.

“Jim Oberweis for Governor…standing up for OUR values!” reads the headline above and below a large photo of a hugging couple with grade school child. Additional pictures include a white couple admiring a baby, a black dad holding a baby and a toddler with an American flag in front.

Over a photo of a broadly smiling Oberweis is the following:

Jim Oberweis will fight for the core values of the Republican Party. Preserving the sanctity of life is at the forefront of what we believe. Jim believes life begins at conception. As Governor, Jim Oberweis will fight to protect those who cannot protect themselves.

Parts of “Oberweis’ Pledge to Protect Life” are

· Supporting parental notification and consent for minors
· Pledging to work to repeal taxpayer-funded abortions
· Opposing government funding of embryonic stem cell research
· Pledging to promote abstinence as an integral part of public health education
· Opposing mandatory health insurance coverage of morning after pills

Additional “red meat” appears under “The Marriage Amendment call for HELP!” headline.

“Jim Oberweis believes that marriage is between one man and one woman. That is why he is working to place the Pro-Family Marriage Amendment on the ballot.

“Jim Oberweis would like your help in gathering petition signatures so we can all have a chance to vote on this important issue.”

Those wishing to download petitions are directed to protectmarriageillinois.com or oberweisforIllinois.com.

Between the pro-life and marriage amendment information is “Answering the Call for Reform!” and his bumper sticker, “Oberweis” on the top and “got guv” on the bottom.

Labels: Jim Oberweis, Ron Gidwitz, Steve Rauschenberger

Tax Hike Proponent Ralph Matire Provides Convincing Political Argument that Income Taxes Should Not Increase: Income Down 12% or $6,000 Since 1999

Who would have thunk it?

Ralph Martire, the number one tax hike proponent in the state of Illinois has helped provide a study that is probably capable of scaring a lot of Democrats out of voting to hike the Illinois income or sales tax..

It was featured as the lead story in the Chicago Tribune this morning and my first thought was, “That sure punctures the income tax hike movement!”

With households earning 12% less in constant dollars than they were in 1999, what politician in his right might would even consider taking more out of a pay check.

Under a grant from the Joyce Foundation, Martire’s Center for Tax and Budget Accountability and Northern Illinois University’s Office for Social Policy Research released a study today (except to the Chicago Tribune, which got it yesterday) that contained the startling income drop revelations.

Martire’s group is a union-controlled front group whose main mission in life is raising Illinois income and sales taxes, which is consistently ignored by the Left Stream Media.

http://www.chicagotribune.com/business/chi-0511170182nov17,1,7342039.story?coll=chi-business-hed

Echoing his recorded phone call of ten days ago and mailing of last week, Elgin’s Republican gubernatorial candidate Steve Rauschenberger made a third “impression” upon McHenry County minds today.

“What are middle class families saying about Steve Rauschenberger’s plan for ‘Restoring Middle Class Illinois”? asks the headline with eleven (mainly) smiling women and four smiling men of assort4ed shapes and colors underneath.

The address side of the direct mail piece quotes “Ryan O’Day, Small Business Owner, Edwardsville” about “restoring pride in Illinois by backing a Governor who has proven to be honest and independent—someone in the mold of Senator Peter Fitzgerald.” O’Day is holding a baby and a toddler.

For more information about the mailing, click here.

I was wondering how an incumbent village president of a town of 28,000 could spend $35,329.13 and only get 1,440 votes.

Spending $24.53 per vote seems a bit excessive for a town the size of Lake in the Hills.

Village President Ed Plaza received 1,440 votes in his re-election bid. He did get over 59% of the total votes cast, but what a poor turnout from the 24 precincts.

Kris Ranallo ran second with 758 votes (31%), while Joseph Murawski got 220 ( 9%). There were four write-ins.

Out of 15,716 registered voters, only 2,469 voted for village president. Less than 16% bothered to vote for this important office.

As I was looking at Plaza’s campaign disclosure report, I noticed something strange. Plaza reports making $1,700 in payments to himself in the part of the State Board of Elections’ report where campaign contributions to other politicians are supposed to be revealed.

When I called the State Board of Elections about the discrepancy, I discovered that Plaza has already been contacted and, apparently, asked to file an amended report.

It’s probably just a misclassification. Candidates often spend money for campaign purposes and then get reimbursed. Plaza’s amended report should show where he spent the money.

With both Crystal Lake school districts and the park district opposing the Vulcan Lakes/Route 14 TIF, the Crystal Lake City Council approved a pre-meeting agreement to postpone the vote until December 6th.

With the seven council members were unanimous in their approval of the Main Street TIF--next to the successful Downtown TIF--one wonders if there are some shakier votes on Vulcan Lakes, which will take a 3/5 majority, rather than a simple majority.

My guess is that a glossy promotional piece will be mailed to all Crystal Lake residents showing the city’s vision of the re-developed area.

Anyone want to wager that it will not be paid for with public money that will later be reimbursed from the TIF district bond proceeds?

As I entered city hall shortly before 7:30 PM, the nearby train crossing gates were down. The bell was ringing.

The Metra train was on the track. It had just left the station.

At 8:53, three motions were made within two minutes and the Main Street TIF train went speeding 23 years into the future, with all seven cylinders pumping mightily. It reminded me of the train scenes in “Back to the Future, Part III.”

It was like watching all the council members singing “Kum Bi Ya” around a campfire. The happy campers were toasting taxpayers, no, I mean, marshmallows.

Tent leader Aaron Shepley said the marshmallows wouldn’t get even the tiniest bit brown. Other campers admitted that they would get a little bit brown, but after the S’moors were eaten, even the marshmallows' grandchildren would be happy.

Read what the Mayor and Council members said here.

All but the masthead had disappeared from Illinois Leader's main page when I wrote my last post. Depending on where you look, some old content may be visible.

The web site used to bill itself as "Illinois Conservative political news - updated daily," to quote Google's listing. Now, it brags, "Illinois' Premier Public Affairs News Source." There hasn't had a new politcal story for more than a month.

The interactive discussion function is still dead, but articles posted in October have reppeared. The most recent are about the Chicago White Sox on this used-to-be political news source. It was posted on Oct. 27th.

The most recent letters to the editor were posted on October 5th.

The unplugging may have been reversed, but the prognosis is not good.

To say that the Chicago Tribune’s front page is coordinated with its editorial page is such a gross understatement.

One need only remember the hatchet job of GOP Senatorial candidate Jack Ryan last year.

Today, the Tribune’s front page signals an editorial rejection of Justice Samuel Alito for the U.S. Supreme Court.

Abortion is the theme of both of the stories in the right-hand two stories.

First is the story about the “morning after” pill, the approval of which the Government Accountability Office says received “special handling” (my characterization) by President George W. Bush’s pro-life administration. (This story is on page 35 of the Chicago Sun-Times.)

Right below it is a story entitled, “Alito argued against Roe.”

Big surprise there, considering what his mother said when asked how her son stood on abortion.

I remember well the full-court press administered to all Republican and Democratic Party state legislative candidates in 1992. It was clear that abortion was the only subject that the Tribune really cared about.

From its attempt to inflame all pro-choice readers, I would say that those in control of the Tribune have not changed their tune in the last thirteen years.

While TIFs (Tax Increment Financing districts) are sold as economic development tools, they can also be viewed as a means of shifting money and the power to spend it.

The winners in a TIF district are the local municipal officials who control the flow of property tax dollars for the succeeding 23 years and the developers that get subsidized.

The losers are the homeowners and businesses that will see their tax bills increase in order to compensate the schools, parks, community colleges, etc., so those other local governments can receive as many real estate dollars as they would have gotten had the TIF never been approved.

The other tax districts will lose no revenue, because they will merely raise their tax rates for everyone outside of the TIF district.

For how power shifts when a TIF district is formed, click here.

No one on the Crystal Lake City Council would put that under his or her name on a re-election pamphlet.

But, an opponent might.

The council is posed to take a huge chunk of the local tax base off the tax rolls tonight. Both school districts and the park district have said they will raise our tax rates to make up the difference.

For more speculation about what a future city council candidate might do and who the biggest winner in the Main Street TIF might be, click here.

As predicted below on November 6th, the Northwest Herald is trying to come to the rescue of Crystal Lake Mayor Aaron Shepley and the city council.

The Vulcan Lakes Tax Increment Financing district certainly must be important to someone(s) important.

Maybe a big advertiser or potential advertiser.

The Herald’s editorial is 19 inches long! It’s the entire length of the paper.

Has anyone ever seen a longer one?

The editorial was obviously written hurriedly.

How else could one explain the typographical error (“theyy”) in the editorial’s third line? Another appears in fourth line of the last section of the editorial: “The believe,” instead of “They believe.”

But, at least the paper does admit that there is a tax shift, even in its headline.

So much for the credibility of Mayor Shepley, whose line a Herald headline writer swallowed hook, line and sinker on Nov. 2nd. That was the day after the two school districts and park district testified that losing big chunks of its real estate tax base would force them to raise tax rates on everyone else to make up the difference.

In doing so, however, the Herald seems to demean the motivation behind the Crystal Lake Park District’s and School Districts 47’s & 155’s opposition:

They are taking a principled stand against the Vulcan Lakes tax district, not because they will be hurt but because the taxes are being “shifted” to other taxpayers.

What a concept!

Citizens we elect to represent our best interests sound the tax hike alarm when another tax district—the City of Crystal Lake—is about to raise property taxes for all citizens of McHenry County.

May this start a trend in McHenry County.

Crystal Lake's Jim Thompson, Chairman of Citizens Against TIFs, leafleted much of the Coventry subdivision today.

The man is indefatigable.

Under his supervision, thousands of leaflets explaining how the Crystal Lake City Council’s passage of two Tax Increment Financing districts will raise everyone’s taxes in McHenry County.

After two of its columnists wrote negative pieces against the Route 14/Vulcan Lakes TIF, a third Northwest Herald columnist, Brian Slupski, weighed in over the weekend on the other side.

He did admit, however, that creation of the TIFs would raise everyone’s taxes…just not by very much.

And, the boss of all columnists, Editor Chris Krug also weighed in:

“Party like it's 1773: Before he came to prominence as the name and face on the label of an overly hoppy beer, Samuel Adams was leading the Sons of Liberty in their protest of King George III's tax tyranny.

“In the here and now, Crystal Lake could be on the verge of its own revolution if a proposed tax increment financing district is laid over a stretch of Route 14, Main Street and the still-undeveloped Vulcan Lakes site.

“In advance of Tuesday's city council vote, e-mailer Debby from The Cee-El offered this thought: ‘I am thinking of ripping open and secretly dumping a Lipton tea bag in Vulcan Lake to protest if a TIF is pushed through. I don't think a posted sign prohibits an old-fashioned tea party protest. Back-door taxation without representation just isn't right.’

I wonder if Slupski or other proponents will be willing to reimburse people who object. I estimate that something in the neighborhood of $130 million—once interest is counted--will be spent making improvements that will probably include remodeling of the old Oak Manufacturing building.

Anyone willing to set up a tax hike replacement fund for folks like me who don’t like paying more in school, municipal, community college, township, county, conservation district, etc., taxes?

For those looking for other TIF stories, go to the very bottom of the page and work your way up.

The meeting at which Mayor Aaron Shepley and the city council are scheduled to approve the TIF districts is Tuesday at 7:30 at city hall.

On the way to school with Steven this morning, we talked to a Crystal Lake Park District employee who had just finished measuring how far the lake is down.

3.3 feet. It's lowest I have seen it in the 47 years I have lived in Crystal Lake.

The rain does not seem to be keeping up with the wind-enhanced evaporation.

= = = = =

The day after I wrote this, the Chicago Tribune wrote a story entitled, "Disappearing act in Crystal Lake under study."

The park district has a $150,000 study from the Illinois EPA for studying Crystal Lake's water quality. Geophycist Timothy Larson sank "insturments into the lake bottom...(to send) electric impulses into the damp sediment to create a computer analysis of what lies beneath," the Tribune reports.

On Saturday, gubernatorial candidate Ron Gitwitz had an envelope delivered to my mailbox.

Monday saw opponent Steve Rauschenberger outlining his “Ten-point plan for ‘Restoring Middle Class Illinois,’” following up on his recorded message on the same subject via telephone late last week.

For the content of the direct mail pieces and more, click here.

It looks like Illinois Leader has committed suicide.

As noted by Dave Diersen on GOP USA, Illinois Leader is dead. It has been on life support for a long time.

(Dave’s is a useful place if you want to read all of the articles about Republicans that Dave can find each morning. He’ll probably put you on his email list, if you ask him.)

Illinois Leader was launched by Dan Proft and Brian Timpone in mid-2002 while I was running for Governor as a Libertarian. It gave me fairer coverage than any other media source and had a vibrant discussion section.

The discussion section allowed anyone to start talking about a subject and, while requiring some policing, was “the” place to let other people know political gossip.

Having long ago run through its start-up money, it now owes tens of thousands of dollars.

It is doubtful that Proft ever earned any money directly from Illinois Leader, but he certainly became more respected among Chicago media types and, as a result, raised his public profile. He now is advising Steve Rauschenberger’s campaign for governor, Tony Peraica’s campaign for Cook County Board president, as well as being the approximately $90,000-a-year spokesman for Cicero

Capitol Fax Blog has now taken over the political gossip/news function. However, no one in cyberspace has so far stepped forward to replace the content on the conservative side of the political spectrum.

At its nominating convention in Springfield this past weekend, the Libertarian Party of Illinois decided not to contest the 2006 statewide races.

The decision to not have a slate passed 40 to 16, according to Julie Fox, who led the 2002 ticket with over 4% when the CPA ran for state comptroller. She has moved to southeastern Wisconsin from the Dundee area.

Yours truly headed the ticket in 2002, doing little better than Dave Kelley of Rockford did in 1994—just above two percentage points.

The three-day event was held at the newly re-named Abraham Lincoln Hotel, switched from the Renaissance last week.

Three workshops were focused on winning elections, with emphasis on the local level. More about the campaign advice—helpful to anyone thinking of running for office--will appear later.

Contributing to the decision to forego the effort was the absence of two of the larger contributors to the party four years ago, plus the daunting signature requirement—25,000--imposed on third parties by the two, as I called them in the campaign, “power parties.” Republicans and Democrats only have to gather 5,000 signatures to run for statewide office.

The convention also ended Peoria's Jeff Trigg as Executive Director.

Citizens Against TIFS, Jim Young, Chairman


The Crystal Lake City Council is planning to divert money from our school, park & college districts to benefit developers along Route 14 and on Main St. in Crystal Lake.

Districts 47 & 155 will lose MILLIONS OF DOLLARS over a 23-year period. Schools (and other local governments) will make up for the loss, no matter what the Northwest Herald says. They will raise our real estate tax bills. Any extra money paid by the businesses in the TIF districts won’t go to the schools or parks or MCC. Up to $6 million a year (approaching $130 million in all, including interest,) will be spent on the TIF districts to subsidize developers, such as, high-end retail, $500,000 2-bedroom lakefront condos, etc.

With multi-million sales having been reported ($7 million: Conlon-Collins Ford and $3.2 million: the old Hines Lumber property), can Rt. 14 and Main Street be considered blighted?

In a TIF, the assessed valuation is frozen for 23 years. Real estate taxes are still collected, but they do not go to our schools, MCC, park and other local governments. Taxes on any increase in value will be spent as the city council sees fit in the TIF districts. TIFs take from Peter to pay Paul. You will be “Peter.” Mayor Shepley and the city council decide who “Paul” is. The council votes on Tues., Nov. 15th.

Because our schools, parks, etc., won’t be able to tax as much as they could otherwise for 23 years, they will raise the tax rates for the rest of us. We will pay more so the schools, etc., can replace the lost taxes!

Another financing method is available—one that does not cost us one cent. It’s called a Special Service Area Assessment. It pays for improvements that will benefit specific property owners. CL now uses SSA’s to charge new homeowners for streets, sewers, etc. State Motor Fuel Tax is another way to pay for road improvements.

The Rt. 14 area seems primarily designed to pay for Vulcan Lakes’ improvements, some of which could have been obtained from Vulcan before it stopped mining. A boardwalk along the lakes is apparently planned with waterfront dining, maybe a hotel, high-end shopping and other waterfront businesses and housing. Another Vulcan Lakes’ alternative that would not raise our tax rates would be to convince the McHenry County Conservation District to finally spend some of the millions it has collected in the Crystal Lake area.

This tax hike will be approved by the city council on Nov. 15th--unless you do something about it! If you don’t want your tax rate to go up because of these two TIFs, call Mayor Shepley at 477-4761 and Council Members Ellen Brady Mueller at 477-4502, Howie Christensen at 459-1153, Ralph Dawson at 459-1505, Cathy Ferguson at 477-7254, Dave Goss at 455-3365, and Jeff Thorsen at 455-5452.

Send emails to comments@CrystalLake.org. Just put the official’s name in the title line.

Attend the Nov. 15h City Council meeting at 7:30. Tell Crystal Lake officials not to raise our taxes!

Volunteer to hand out Flyers. Call 459-3506.
For more information, see www.McHenryCountyBlog.com

Labels: Aaron Shepley, Conlon-Collins Ford, Crystal Lake High School District 155, District 47, Hines Lumber, Main Street TIF, MCCD, Tax Increment Financing District, TIF, Vulcan Lakes

Two public faces of the Illinois Coalition for Immigrant and Refugee Rights were front and center last week.

The one most saw was the denouncement (and possible set-up) of Republican gubernatorial candidate Jim Oberweis for having two illegal aliens clean one of his company’s ice cream shops.

There was even a video of them doing the work.

How convenient, especially if one wants to demonize a politician.

The second was a loud Spanish-speaking demonstration protesting a meeting in Elgin’s American Legion of the Minuteman Project organization. The Minutemen were organized to patrol the Mexican border because its organizers, one of whom is now running for Congress, believed our government is doing an inadequate job. This was an exploratory meeting in a city with a quite large percentage of Mexican immigrants.

For the rest of the story, click here.

Don't Blame Me
I Voted Libertarian

On a red Trail Blazier from Greeneville, Illinois, seen in the basement of the newly re-named Abraham Lincoln Hotel in Springfield.

Viiasge-Digital Drivers’ Licenses

Warner was involved with other SOS vendors as well. One involved the digitalization of state drivers’ licenses. For 5% of total contract revenues, Warner agreed to represent Viiasge, a small Massachusetts company that had obtained Wisconsin’s business. Warner beat out lobbyist Al Ronan and Ronan’s wife, Catherine Adducci, who was a representative of Unisys.

Warner received $834,000 from Viiasge through November, 2002, when his contract was terminated, according to the Feds.

Three days before Warner reached his agreement with Viiasge Vice President Yona Wieder at a luncheon set up by Chicago attorney Irwin Jahn, Ryan and Warner returned from a Los Vegas vacation, during which Ryan paid his $280 hotel bill in cash, the Feds say.

Ryan is alleged to have told Fawell that he wanted lobbyist Ron Swanson to share in the financial benefits. “Warner was unhappy that Ryan wanted him to split some of his fees with Swanson, Ryan’s long-time friend,” the document reads. Without doing anything, Swanson got $36,000 from Warner. Neither Warner nor Swanson registered as a lobbyist for Viiasge; only lawyer Jahn filed. Warner got Viiasge’s checks and turned one-third over to Jahn.

Viiasge went public in November, 1996, shortly before the Request for Proposal for the digital licenses was announced. In December, 1996, Warner bought 7000 shares for about $83,500. The next April, Warner tipped ”lifetime friend” Larry Stern, an SOS employee about the stock. Stern purchased 1400 shares. He, in turn, tipped his friend and supervisor Pat Spizzinocco, who also bought Viiasge stock. Both sold at a profit after the Illinois contract was announced.

“Stock records also show that at least two additional Warner friends, as well as Ryan’s son’s business partner, and the husband of Ryan’s niece purchased Viiasge stock during this time frame,” the document continues.

American Decal Manufacturing

Another Warner client was American Decal Manufacturing held. It produced the license plate renewal stickers. First awarded the contract during Ryan’s predecessor’s term, ADM was virtually guaranteed continuation of the business because of the way the bid specifications were drawn.

Not having had a lobbyist before, in mid-1991, its president Thomas O’Brien got “a call out of the blue” from Warner. Warner warned O’Brien that 3M, a potential competitor, has just hired former Governor Jim Thompson as its lobbyist, a statement that the document says was “untrue.” To keep the contract, $2000 a month would be required for Warner, it turned out. The fee later increased to $3000 a month and in 1994 to $5000 a month.

In August, 1991, the title laminates contract that 3M held came up. Warner is said to have approached O’Brien and asked for an additional $67,000 for getting ADM the contract. 3M lost the $250,000 per year business. 3M had previously refused to hire Warner.

Ryan is said to have personally intervened with James Covert, the head of his Vehicle Services Division, when Covert stopped returning Warner’s calls. Later, after the bid specifications were made generic in 1993, Ryan told Fawell and Roget Bickel, “I want this back,” referring to the language that favored ADM. Ryan got his way.

After Ryan left office, lobbyist Warner helped a Detroit firm, MRM, a group of former ADM employees.

Affordable Temperature Control

Still another vendor that alleged received the Warner touch was Affordable Temperature Control, a Chicago heating and plumbing contractor that had done work for Warner’s businesses, a fire insurance adjustment firm called Lash Warner & Associates, and Economy Building and Maintenance. Warned called its president, Michael Brodsky, and asked if he would be interested in a project in the Capitol complex.

A month later, in January 1992, Brodsky received a letter from Physical Services Director Larry Fletcher informing him that ATC had been awarded a contract to help design the temperature control system. Before being awarded the contract, “Brodsky had not spoken with anyone at the SOS Office regarding the contract,” the proffer says.

The document alleges that Warner called Brodsky seeking compensation, saying he expected “8-10% of ATC’s total revenues.” Brodsky agreed on 8%. In the sixteen-month period, Warner was paid $8,240 which the Feds say Brodsky “understood…were essentially a kickback to Warner for his assistance in getting ATC the contract.”

Fawell entered Warner’s name in his “Favors List” as the sponsor of ATC’s contract.

Modern Business Systems

Nadine Libertore was a sales person with Modern Business Systems when SOS Accounting Revenue Director Georgia Marsh steered her to “Warner, whom she said was very close to George Ryan and was somebody who was dealing with vendors trying to do business with the SOS.” Libertore thought that meant Warner was a state employee. Marsh gave her Warner’s office and home phone numbers.

When Libertore called Warner he said something like “I have his ear,” the proffer says. He said “he would require a fee of approximately $2,000 a month. Libertore was surprised by Warner’s request, as she had never been requested by anyone to pay a fee to be able to do business with a state agency.”

She told her supervisors and was advised to “give Warner the benefit of the doubt as to his intentions,” as the filing states.

After a meeting in which Warner re-iterated his seemingly non-negotiable $2,000 per month fee, Modern Business Systems decided not to do business with Warner.

Lease of 17 North State Street

Warner approached David Kalish, the manager of the building at 17 North State Street in Chicago, representing himself as a broker for the Secretary of State’s Office. If the SOS rented the building, Kalish would pay Warner a commission of 6% of gross income. Warner concealed his financial involvement in the deal, inserting another’s name—Adolph Ottaviani--in the brokerage agreement.

In 1991, a six-year lease was signed, which was renewed after Kalish met with Fawell in 1998. Warner made $383,276 in commissions, the Feds intend to prove.

The Bellwood Lease

After the State Street lease was signed, Warner met with Ryan and Fawell to discuss moving the SOS Police Department. Warner suggested an office in Bellwood. Fawell expressed his reservations about negative publicity that might result from Warner’s role in leasing property.

“Warner responded that no one would find out about Warner’s involvement because there were various layers of paperwork and Warner’s name was buried in the various layers. Ryan was present for the conversation,” reads the government’s case outline.

Subsequently, Warner called Physical Services Department Director Alex Nelson and said “words to the effect,” according to the document, “we’ve got a location we want you to look at to put the cops in.” He also told Nelson that Ryan would be calling him and that Nelson should not tell Ryan Warner had called Nelson.

“About fifteen minutes later, Nelson received a call from Ryan’s office, who told Nelson he was to check out 405 N. Manheim Road in Bellwood,” the filing reads. Nelson, who met Warner doing campaign outreach to the black community, did so and found the building suitable. A five-year lease resulted. While Bernard Leviton signed the lease on behalf of BL Manheim, he transferred total ownership to Warner after the lease signing. The lease was renewed for another five years. Warner received about $171,000 related to the lease. He used $75,000 of that amount “to facilitate a loan to Comguard, financially struggling company…in which Ryan’s brother, Tom Ryan, had an ownership interest,” the document states.

The Joliet Lease

Warner learned of the expiration of a lease for the Administrative Hearings Division before the end of 1994. Ryan called AHD Director Len Sherman and told him to call Warner about finding new space. Warner pointed him to 605 Maple Road in Joliet.

Sherman concluded that it would work, with rehab work, but had too much space. The government says Warner told Sherman that other SOS offices would be housed there, a fact he did not know.

Warned again told Fawell that his involvement would not be discovered. The Federal outline says Warner “had a ‘front man’ named (Jerome) Purze.”

Two SOS employees involved in lease negotiations, Tom Cuculich and Rob Kirk, dealt with Warner for 4-6 weeks and did not learn he had a financial interest in the building. After the lease was signed, Warner got a 90% ownership interest in the building. The proceeds Warner is said to have received are $387,500 for the first four years of the lease.

“In a conversation with Donald Udstuen, after Udstuen learned about Warner’s interest in the Joliet property, Warner told Udstuen he never should have done the Joliet lease, because it was ‘too good a deal,’ which Udstuen understood to mean that Werner had made so much money on the deal that it would raise questions about the propriety of his role in getting the lease,” the proffer states.

Warner Financial Benefits to George Ryan

The government outlines some of the evidence of gifts, payments and benefits to Ryan, his family, his staff while Ryan was Secretary of State:

· A 1994 $50,000 loan to Comguard, a financially struggling firm in which Ryan’s brother Tom had an ownership interest. The interest was converted to preferred stock and less than $6,000 was repaid.

· $11,326 of flood assistance in 1995 to Ryan’s daughter Lynda Fairman, carrying an unpaid account receivable of about $8,326 on his company’s books.

· Repair of Ryan’s roof in 1996 in which records indicate that Warner fronted the money and Ryan may have paid back a portion of the bill.

· Facilitating the purchase of stocks through Warner’s broker in 1996 and, in some instances, trading the same stocks in similar periods through the same broker. “One stock tip resulted in Ryan receiving $3,182 profit (100% on investment in matter of days,” the proffer reads.

· Waiving a standard adjustment fee of $1,040 on flood damage in Ryan’s Chicago apartment in 1996.

· Paying $3,185 in wedding expenses of Ryan’s daughter in 1997 within days of Viiasge being awarded the digital drivers license contract. (The proffer says Ryan’s own handwriting is on Warner’s checks.)

· Investing $6,000 in Ryan’s son Goerge, Jr.’s cigar business in 1997.

· Loaning Ryan son-in-law Michael Fairman $5,000 in 1997 with no record of repayment.

· Hosting numerous fund raisers for Citizens for Ryan in 1997 and 1998, one of which raised over $70,000; also helped arrange three “large campaign contributions through real estate entities with which he was affiliated.”

· Loaning $95,000 in 1997 to “essentially pay off an existing loan related to Comguard.”

· Gifts and other financial benefits while Ryan was Secr.0etary of state.

“As part of the conspiracy, Warner omitted all of the gifts and payments from his Lobbyist Registration Statements and Ryan omitted all Warner’s gifts and payments from his Statements of Economic Interests,” the government says it will prove.

Ryan’s Relationship with, and Promotion of, Comguard

Comguard is a firm that monitored parolees on home confinement. Ryan’s brother Tom, a former mayor of Kankakee, was an original owner when it was founded in 1991-92. He sold the majority of his shares in 1999.

The government charges, “Throughout his term as Secretary of State and during the first year of his first year as Governor, defendant Ryan used his government offices to support and promote Comguard, while Warner advanced a total of approximately $145,000 in ‘loans’ for Comguard.”

When the company was in financial trouble, Warner is alleged to have bailed it out. This is mentioned at least three times in the government document, including a repayment to long-time Ryan friend Harry Lockman of $95,000 secretly paid to settle a complaint against Comguard by Kankakee County government. This $95,000 was repaid to Warner without interest.

Comguard held a contract with the Illinois Department of Corrections for 7 years, providing substandard service, according to the outline of the government’s case. When he became Governor, Ryan spoke with Don Snyder about electronic monitoring vendors in the Mansion after his first cabinet meeting. Ryan told Snyder that he “understood that one of the electronic monitoring vendors had a lower price and, that all else being equal, it would seem to make sense to use that vendor.” A footnote says that vendor was Comguard.

Ryan then told Director Snyder to just to do what was “best” for the Department, the relates.

When Tom Ryan sold most of his shares in 1999 and was paid about $155,000, two days later he wrote a $3,500 check to his brother with the notation “gift.” Ryan did not report the gift on his Statement of Economic Interests.

In March of 2000, a U.S. grand jury from the central Illinois jurisdiction subpoenaed records relating to Comguard.

Harry Klein South Holland Lease and Jamaica Vacations

Former appointed State Representative and George Ryan Labor Relations Board appointed Manny Hoffman introduced currency exchange chain owner Harry Klein to his friend George. From about 1993 through 2002, Ryan and his wife stayed as a guest at the Jamaican home of Harry Klein. Starting in 1994, Scott Fawell and his wife accompanied them through 2000. Hoffman, Klein and their wives were also there, the government reports.

On at least two occasions the two couples were guests at Klein’s Palm Springs, California, home.

The U.S. Attorney’s Office alleges that Ryan would write Klein a check for $1,000 for each week spent in Jamaica, but that Klein re-imbursed Ryan and Fawell in cash, which both accepted.

“Ryan agreed with these sham transactions,” the filing says, “because Ryan was concerned about how it would look if the press noticed that Ryan was a guest of Klein at the same time that the SOS office regulated the activities of currency exchanges…”

In about 1997, Klein brought up the possibility of renting a building in South Holland to the SOS while vacationing with the Ryans and Fawells. Upon returning to Illinois, both Fawell and Ryan talked to Driver Services Director Mike Chamness about leasing the building. Ryan, the government says, “instructed Chamness to work something out to use his building as a driver’s license facility, and he Chamness the phone number in Arizona where Klein could be reached.” He also told his employee that he, Ryan, wanted to be the one to tell Klein about the awarding of the lease.

Chamness decided to close the Lake Calumet office, although there were no plans to close it before Ryan called Chamness.

At a 1997 Bulls game, Klein thanked Ryan for the South Holland lease. According to the government, this angered Ryan, because Ryan wanted to be the one to tell Klein about the lease. Chamness got bawled out by Ryan the next day. Chamness later discussed outstanding issues concerning the lease with Ryan and Ryan is said to have directed they all be decided in Klein’s interest.

Trying to get out of hot water with Ryan, Chamness wrote a memo outlining the Secretary’s personal involvement in the lease. Ryan personally signed the lease, an unusual event in the Secretary of State’s Office.

Jim Esslinger, a SOS employee who reviewed the lease, estimated that the rent was $2-4 per square foot too high and that the parking lot was too small for commercial driver’s license (CDL) testing.

The Role of Lobbyist Ron Swanson

The government also outlines gifts, payments and benefits of longtime friend and lobbyist Ron Swanson.
Swanson admitted lying about a McPier official contacting him and about a law firm informing him they needed his lobbying assistance for McPier. The plea did not go deeply into the charges the government had leveled against Swanson. Swanson’s attorney has maintained that Swanson’s memory fails periodically.

Swanson’s gifts include:

· Paying about $2,500 for Disney World accommodations for the family of one of Ryan’s daughters in 1999.

· Hosting the Ryans in 1995 at a Cancun, Mexico, condo.

· Providing money to Ryan to gamble in a Lake Tahoe gambling trip.

· Giving a $550 gift to Mrs. Ryan, which Swanson wrote off as a business expense.

· Giving Ryan and his wife numerous expensive gifts, including a St. John’s dress, a porcelain Limoge box, Cuban cigars, Llardo art, golf bags, cuff links and ornate figurines.

· Giving cash gifts to about 6 of Ryan’s employees during a 6-8 year period.

The government charges that part of the conspiracy was Swanson’s omission of all of this from his Lobbyist Registration Statements, and Ryan’s omission of them from his Statements of Economic Interests.

The government admits that Swanson has never admitted giving money to Ryan, but notes that, ”while Swanson was putting $4,000 into Udstuen’s pocket, for the Wisconsin Energy lobbying referral, he told Udstuen that he was also ‘taking care’ of Ryan.”

About $175,000 is also alleged to have been withdrawn from Swanson bank accounts from 1999 to 2001.

“The cash transactions are noteworthy, not just in their volume, but in their timing,” the government says. “Several coincide with Ryan’s birthday on Feb. 24, a date which is typically on Swanson’s calendar,” the proffer continues:

· For instance, On Feb. 24, 1998, Swanson withdrew $3,300 in cash.

· On Feb. 23, 2000, at approximately 2:30 PM , Swanson obtained $5,000 in cash. According to his calendar, Swanson say Ryan at 6 PM that night.

· On Feb. 21, 2002, Swanson assistant Kent De Lay obtained $3,000 in cash for Swanson at 10:30 AM. Swanson’s calendar reflects that he was “w/ the Governor @ Capitol” at 12:45 the same day.

How Ryan Helped Ron Swanson:

Lincoln Towers Lease,
Insider Information on Grayville Prison Selection,
Wisconsin Energy and McPier Lobbying Contracts,
Perks and Privileges

“As part of their corrupt relationship, Ryan took official action on numerous occasions to benefit Swanson,” the government charges.

These include

Rental of Springfield’s Lincoln Towers at a rate that “far exceeded the normal price per square foot for comparable office space.” Although Ryan told Fawell that Swanson, its rental agent would not take a commission, Swanson got about $38,000.

Providing Swanson with inside information that Grayville had been selected for a prison site. Swanson entered into a $50,000 lobbying contract with businessmen headed by local booster Dr. Clyde Wilson.

“Swanson’s handling of the Grayville fee corroborates the evidence he was tipped off to Grayville’s selection as part of a corrupt relationship with Ryan,” the proffer charges. “Swanson deposited the $50,000 fee he had received from Dr. Wilson on or about March 12, 2001. Thereafter, on March 26, 2001, two sequential checks for $7,000 and $8,000 made payable to Swanson were written on his account. The first, for $7,000, was cashed on March 28, 2001. Swanson’s calendar reflects a meeting with Ryan on Marcy 29, 2001 at 11:30 AM. The second, for $8,000, was cashed by Swanson’s secretary for him on April 4, 2001.”

A footnote says, “In late May of 2001, Swanson duplicated the March transaction by structuring another $15,000 cash withdrawal into $7,000 and $8,000 transactions. Thus, in approximately a sixty day period after receiving the $50,000 fee, Swanson received $30,000 in cash.”

The email notifying the Corrections Department of Grayville’s selection was sent April 10th. At the public announcement on April 12th Ryan, at Swanson’s request, publicly acknowledged Dr. Wilson’s efforts in promoting Grayville’s selection.

When Wisconsin Energy was seeking an Illinois lobbyist in 1999, Nick Hurtgen asked Don Udstuen’s advice. The government says that Udstuen conferred with Ryan and Ryan suggested Swanson. He was hired.

(Hurtgen was identified in a whistle-blowing suit filed by Naperville’s Edward Hospital. In the alleged scheme, Janesville’s Mercy Health Systems was assured it would receive a permit to build a new hospital in Crystal Lake, if its financing were through Bear Stearn. Hurtgren was the head of the firm’s Chicago office before he resigned.)

Swanson then solicited another member of Ryan’s “kitchen cabinet,” former State Rep. Pete Peters (R-Chicago) to assist with the lobbying. Peters, as exclusively reported in Illinois Leader [http://www.illinoisleader.com/news/newsview.asp?c=6580], was given a sweet heart job in Ryan’s Secretary of State’s Office for 4½ weeks over a thirteen month period during 1991-92 to increase his legislative pension. The pension started at $51,000 and has increased, as do all state pensions, by 3% a year since then. Peters was also appointed by Ryan to a $25,000 per year sinecure