Johnsburg Tells of Chapel Hill Golf Course Purchase

Being a resident of Lakewood, which purchased a golf course and promised the fees would pay back the loan, excuse me if I find Johnsburg’s impending purchase of a golf course catching my attention.

I remember when I asked the Lakewood Village Board if the acquisition would “cost me a dime.”

I was assured it would not, that fees would cover the bond payments.

Taking the Board at its word, I stopped following the issue.

Imagine my surprise when I learned that the Lakewood Village Board had decided to issue alternative revenue bonds, rather than revenue bonds.

The reason for the change was that the interest rate would be lower.

Here’s why:

  • Revenue bonds are repaid from revenue from the project
  • Alternative revenue bonds are repaid from revenue from the project…unless that is insufficient. Then, property taxpayers are on the hook.

So, Johnsburg taxpayers, please make certain that your golf course is not financed with alternative revenue bonds.

The Village of Johnsburg sent this to residents yesterday:

CHAPEL HILL GOLF COURSE UPDATE

Last month the Village announced that it was under contract to purchase the Chapel Hill Golf Course.

The Village Board unanimously approved the acquisition in an effort to protect an important recreational open space, which serves the Johnsburg community.

Since the announcement, Village officials have been busy preparing to close on the property.

Village staff have been finalizing talks with local financial institutions to secure the most advantageous financing.

Additionally, the Village has been focusing on the details of a management contract for the operations of the course.

Revenues derived from the course’s operations will be used to pay back the note secured to acquire the property.

The purchase of the course will not result in a tax increase to Village residents.

Overall, the course is in good condition but the Village will be addressing some maintenance items that will enhance the property.

Upon closing, the Village will take steps to begin some general cleanup of the property by removing dead trees, cleaning up the overgrowth along the Chapel Hill Road fence line and clearing miscellaneous brush.

The old clubhouse is in disrepair and will likely be demolished.

The management company will winterize the course this fall and prepare it for golfing season in the spring.

Also in the spring, maintenance will take place on the entry road and the parking lot will be patched and striped.

The Village’s approach continues to center on providing a golf course facility that is well maintained yet affordable for our residents.

In that regard, the Village plans to establish reduced greens fees for Village residents and make special fee arrangements for the Johnsburg High School Golf Team members.


Comments

Johnsburg Tells of Chapel Hill Golf Course Purchase — 43 Comments

  1. A big difference between Lakewood and Johnsburg is that Johnsburg is financing the course purchase through traditional bank note financing – not issuing bonds.

    As such, some of the repayment may indeed come from taxpayer funds, and not entirely from course operations.

  2. No one can run a golf course as efficiently as Government.

  3. Big Orange is probably correct, Mark might have to come in and educate the Taxpayers.

    When Lakewood bought the golf course too, they talked of Bonds.

    The Village Board went right to work to have their Golf course.

    The Village made many decisions and kept their deeds private.

    Now, eventually the Village Attorney did give the Board Members a nicely packaged list of the Bond Holders, where did it come from?

    Home State Bank’s Trust Department.

    I am sure, the Village Hall has a copy in their records.

    If not contact Rich Flood and the Firm, for their copy.

    Lakewood Taxpayer’s paid dearly for that course.

    Out of Courtesy for the Taxpayers, Mr. Flood should, free of charge, name the Bond Holders.

  4. Government Finance Officers Association (GFAO)

    GFAO Alert: Bank Loan Disclosure

    May 12, 2016

    “Over the past five years, the municipal securities market has witnessed a dramatic increase in the use of bank loans by municipal issuers as a tool to finance capital improvements as well as refund outstanding debt.

    Bank loans, which may be structured with fixed or variable interest rates and with defined maturities or flexible payment provisions, may offer a number of potential advantages over a public offering of municipal securities.

    The increasing use of bank loans has recently begun to attract the attention of regulators, such as the Municipal Securities Rulemaking Board (MSRB) and Securities and Exchange Commission (SEC), as well as the credit rating agencies, which are growing increasingly concerned about bank loan disclosure practices among municipal issuers.”

    http://www.gfoa.org/gfoa-alert-bank-loan-disclosure

  5. Government Finance Officers Association (GFAO)

    Bank Loans

    Type: Best Practice

    Background

    Bank loans are an important tool in a governments financing toolkit.

    For purposes of this Advisory, the term bank loans includes fixed-rate loans with defined maturities and loans or lines of credit that have variable interest rates and flexible payment provisions.

    One potential advantage of bank loans is that the process for execution of bank loans generally is simpler than a bond issue that is marketed to the public market, with fewer issuance costs and ongoing compliance requirements.

    Additionally, bank loans can often be structured in a manner that more closely conforms to specific project or repayment considerations than is the case with bond issues.

    However, because bank loans are typically not executed in an environment that is as transparent as the bond market, an issuer may have limited ability to assess whether the proposed interest rate(s), fees and terms are consistent with reasonable market comparables.

    http://www.gfoa.org/bank-loans

  6. Johnsburg has a history of inside dealing and petty corruption.

    Who benefits from this government bailout of a failing enterprise?

    Watch who gets the contracts.

    Big Al’s mafia had inside deals all over the county.

    This looks like a continuation of that legacy.

    I had interactions with these people and I swear that it goes right to the police department also.

    Remember the Brian Carrick murder?

    The conviction was finally made against the family of one of Johnsburg’s biggest political donors (protection money?).

    I am sure that wasn’t the only inside coverup over the years.

  7. Not to re-issue a particular family’s torment, but I believe many answers were removed from a house close to the railroad tracks.

  8. Charlie you know the history of McHenry County.

    When Lakewood bought the Golf Course, they went to Home State Bank.

    Dick Zukowski, I think, President of the HSB Board and Jack Frothingham was a Board Member, and of course he was a Village Trustee too.

    A copy of the Bond Holders, was given to a CL Detective, He had to give it to his Boss.

    Guess who the Boss was, Keith Nygren.

    Any questions, on why it could not go anywhere?

  9. Johnsburgers better talk to some Lakewood folk.

    Maybe not exact, but close estimate was that every home in Lakewood paid more than $500 a year, for more than a handful of years to finance the course.

    That was in the early 90’s.

    Since 2010, golf courses have been closing all over the country.

    If private ownership can’t run it, neither can government.

  10. Yes, but what is really important, is who profits from the Bonds as Bond Holders?

    Follow the Money.

  11. Is the golf course currently profitable or at least break-even?

    Will it still be at least break-even after they hire a management firm to run operations?

    And will it still be at least break-even after they add on the additional annual debt service expense?

    If not, does that mean the taxpayers of Johnsburg eat the losses?

    I’d be interested to see the golf course’s financial statements and its P&L and capital expenditure projections for the next 5 years.

    As to taxes, did anyone provide an analysis of the impact once this property comes off the tax rolls and becomes tax-exempt?

  12. Kieth Nygren, a prior Democrat candidate for public office, was Big Al’s chosen candidate for Sheriff.

    As Nunda Township Supervisor I (with help from Ed Dvorak) uncovered a smelly relationship between Home State Bank and my predecessor.

    I did very little business with Home State after that, public or personal.

    Borrowing money to finance an insider issue, and then leave the Taxpayers holding the bag?

    Sounds like Chicago Democrat politics.

  13. Charlie, before your time at Nunda Township, didn’t their Road Commissioner, go to Jail?

    He also tried to do business with Home State Bank.

  14. I can still remember the good old boys network and wondering what mystique they held over all the sycophants.

    I was just “not in the loop” at that young naive age.

    I would love to hear all of the goings on from Charles and another.

  15. If Charlie wants to speak to me, he can go through Cal for the information. Cindy, eventually you might hear the Truth.

  16. Charlie, look up the Road Commissioner’s obituary, he was a big player with Local 150, if I remember correctly.

  17. There are four CUSIP-6 ID’s for the Village of Johnsburg on the EMMA MSRB website.

    CUSIP 478138 has five issues listed on the EMMA MSRB website.

    The remaining three CUSIP’s have 1 issue each.

    Thus eight issues are listed on the EMMA MSRB website for the Village of Johnsburg.

    +++++++++++++++++++

    478138 – Alternate Revenue Source GO Bonds for water & sewer projects, maintenance, road improvements, & costs to issue the bonds; OS dated August 24, 2017; maturity dates 2018 – 2027; $1,055,000 at issue.

    478138 – Alternate Revenue Source GO Waterworks & Sewerage Refunding Bonds to advance refund 2007 GO (Limited Tax) debt certificates & pay issuance costs; OS dated December 15, 2009; maturity dates 2011 – 2027; $3,000,000 at issue.

    478138 – GO (Limited Tax) Debt Certificates to a) refund 2003 GO (Limited Tax) Debt Certificates, b) water & sewer projects, maintenance, and other associated costs and c) pay issue costs; dated December 1, 2007; maturity dates 2009 – 2027; $4,650,000 at issue.

    478138 – Alternate Revenue Source GO Waterworks & Sewerage Refunding Bonds to a) advance refund all of the village’s 1997 Alternate Revenue Source GO Waterworks & Sewerage Bonds & pay issue costs; dated February 1, 2006; maturity dates 2009 – 2018; $775,000 at issue.

    478138 – Apparently the 1997 bonds that were refunded in 2006; dated October 15, 1997; maturity dates 2008 – 2018; $1,030,000 at issue.

    478151 – SSA 27 Wastewater project, Dated August 15, 2010, matures 2018 – 2030

    478156 – SSA 28 Wastewater project, Dated December 1, 2010, matures 2017 – 2029

    47817C – SSA 32 Wastewater project, Dated August 16, 2016, matures 2035

    ++++++++++++++++++++

    GO = General Obligation

    OS = Official Statement

    +++++++++++++++++++++

    https://emma.msrb.org

    Type “Johnsburg” in the quick search bar in the upper right hand corner of the screen.

    +++++++++++++++++++++

    Facebook

    Village of Johnsburg

    “Chapel Hill Golf Course Update

    Last month the Village announced that it was under contract to purchase the Chapel Hill Golf Course.

    The Village Board unanimously approved the acquisition in an effort to protect an important recretaional open space, which serves the Johnsburg community.

    Since the announcement, Village officials have been busy preparing to close on the property.

    Village staff have been finalizing talks with local financial institutions to secure the most advantageous financing.

    Additionally, the Village has been focusing on the details of a management contract for the operations of the course.

    Revenues derived from the course’s operations will be used to pay back the note secured to acquire the property.

    The purchase of the course will not result in a tax increase to Village residents.

    Overall, the course is in good condition but the Village will be addressing some maintenance items that will enhance the property.

    Upon closing, the Village will take steps to begin some general cleanup of the property by removing dead trees, cleaning up the overgrowth along the Chapel Hill Road fence line and clearing miscellaneous brush.

    The old clubhouse is in disrepair and will likely be demolished.

    The management company will winterize the course this fall and prepare it for golfing season in the spring.

    Also in the spring, maintenance will take place on the entry road and the parking lot will be patched and striped.

    The Village’s approach continues to center on providing a golf course facility that is well maintained yet affordable for our residents.

    In that regard, the Village plans to establish reduced greens fees for Village residents and make special fee arrangements for the Johnsburg High School Golf Team members.”

    facebook.com/permalink.php?story_fbid=1562359797135887&id=251544171550796

    +++++++++++++++

    “The purchase of the course will not result in a tax increase to Village residents.”

    That is a meaningless statement.

    It is predicated on assumptions.

    Where are the assumptions?

    It will not result in a tax increase in what year?

    2018?

    2019?

    2020?

    2021?

    2022?

    etc.

    What if the assumptions to not materialize?

    How realistic are the assumptions?

    Just ignore such statements and delve into the financial details and assumptions as outlined in the comments above, starting with Coffey’s comments.

    Some of that information is probably not available without submitting FOIA requests to the Village of Johnsburg.

    ++++++++++++++

    Village of Johnsburg website

    Chapel Hill Golf Course

    Press Release

    The Village of Johnsburg announced today that it is under contract to purchase the Chapel Hill Golf Course.

    Situated at a key entrance into the Village, the Chapel Hill Golf Course has long been an asset to the community and preserving its recreational and open space attributes has been a strategic initiative of the Village for more than 20 years.

    The Village began contemplating the acquisition of the property when first hearing about its return to the real estate market.

    The possibility of a dense housing project moving forward on the property prompted the board’s decision to move forward with the purchase or risk losing the recreational open space forever.

    The property consists of nearly 100 acres on which the village intends to pursue a lease to continue its use as a golf course.

    Revenues derived from the lease will be used to pay back the note secured to acquire the property.

    ‘The Village’s goal is to provide a golf course facility that is well maintained yet affordable for our residents while protecting an important recreational, open space which serves our community’, said
    President Ed Hettermann.”

    johnsburg.org/community/page/chapel-hill-golf-course

    +++++++++++++++++

    Village of Johnsburg

    Village Board

    Trustees

    Tom Curry
    Kyle Frost
    Josh Hagen
    Mary Lou Hutchinson
    Greg Klemstein
    Kevin McEvoy

    Village President Edwin Hettermann

    “The village board meets the 1st and 3rd Tuesday of every month at 7PM.”

    johnsburg.org/villageboard

    +++++++++++++++++++++

    However the village board agenda and minutes website lists no upcoming meeting for Tuesday October 3rd.

    There is a meeting listed for Thursday October 12th (Thursday not Tuesday).

    johnsburg.org/meetings?field_microsite_tid_1=27

  18. One ballpark indicator of a given area’s prosperity in Illinois is if the local school district receives a large state and Federal per pupil subsidy.

    Chicago City Wire recently wrote an article about that topic.

    The Johnsburg school district was one of the three McHenry County school districts listed among the Top 100 school districts in the Chicago area.

    The Chicago area being defined as Cook, DuPage, McHenry, Kane, Lake, Will, and Kendall Counties.

    ChicagoCityWire.com/stories/511117589-analysis-state-federal-subsidies-to-cps-amont-chicago-area-s-highest

  19. Mark, look at School District 47, I do believe they may fall into the category, from earlier then that Article.

  20. Cindy, Hendle was Sheriff before Bill Mullen, Nygren came after Bill Mullen.

  21. Was Hendkes undersheriff and became Sheriff after hendle won election and retired if memory serves.

  22. Cindy, Bill Mullen was Sheriff after Hendle.

    He became ill, so the Undersheriff took over ( Les Kotke) sp, then Keith Nygren.

    Yes and now Prim, a very good man.

    Personally I really liked Bill Mullen he was a good guy, as far as I know.

    But they really wanted Nygren in there and made sure it happened.

    Nygren’s wife Marge was a Teacher is Dis.# 47 and I am sure she had all the teachers voting for him.

  23. Al Jourdan picked Nygren.

    Like I said many of the answers left in a cardboard box.

  24. CP, do you think the rumors are true and Nygren is back?

    Do you think he will become some kind of Enforcer?

  25. I don’t know, hopefully he won’t fill the void left by big Al.
    Jourdan had the party running but it was the good old boy network that you didn’t want to cross.

    Many of us are still leery of County politics because the old network was very powerful and remnants survive.

    If Nygren is back, look out.

  26. Given that this property apparently pays taxes to McHenry D-15 and D-156, once this property comes off the tax rolls, those D-15 and D-156 taxpayers will have slightly increased taxes to make up for the lost revenue from the golf course.

  27. I believe a developer wanted to buy the golf course and put in low income housing, so whoever owns the golf course used that as leverage to get the town to step up.

    Also, Johnsburg isn’t Lakewood.

    More common sense up north.

  28. Oh, my goodness. From what I’ve heard and seen Johnsburg may be worse than Lakewood. (Especially of recent years.)

  29. Cindy, I think maybe a clue might be who is the Attorney for Johnsburg, is it the same Law Firm as Lakewood?

  30. I don’t pay much attention the law firms. I just know they are all crooks.

  31. I don’t pay much attention to reading and/or books. I just know they are all fake knowledge. Tic, tock, tic, tock…

  32. The Chapel Hill Golf Course is just inside the McHenry School District boundary, bordered to the north by the the Johnsburg school district.

    The current addresss of the Chapel Hill Golf Course is 2500 N Chapel Hill Rd, McHenry, IL 60051.

    If the Village of Johnsburg purchases the property, the property would be annexed to Johnsburg?

    What is the history of property taxes paid on the parcels which the village of Johnsburg is considering purchasing?

    ++++++++++

    McHenry County Property Search

    2500 N Chapel Hill Rd, McHenry, IL 60051

    PIN 09-24-430-007

    Tax Year – Payable – Net Taxable Value – Tax Rate – Total Tax – Owner – Mailing Name & Address

    2016 – 2017 – $26,423 – 11.512967 – $3,042 – Privet Prop LLC – Cole Taylor Bank

    2015 – 2016 – $24,650 – 12.241408 – $3,017 – Privet Prop LLC – Cole Taylor Bank

    2014 – 2015 – $25,174 – 12.174849 – $3,064 – Privet Prop LLC – Cole Taylor Bank

    2013 – 2014 – $92,110 – 11.459393 – $10,555 – Privet Prop LLC – Cole Taylor Bank

    2012 – 2013 – $234,879 – 9.998829 – $23,485 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2011 – 2012 – $254,233 – 8.715154 – #22,156 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2010 – 2011 – $270,570 – 7.579128 – $20,506 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2009 – 2010 – $294,687 – 6.872452 – $20,252 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2008 – 2009 – $298,932 – 6.541614 – $19,554 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2007 – 2008 – $289,522 – 6.351800 – $18,389 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2006 – 2007 – $280,490 – 6.259400 – $17,557 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2005 – 2006 – $258,683 – 6.429800 – $16,632 – Chgo Title Tr Co Tr 1095775 – K M Resorts Inc

    2004 – 2005 – $242,076 – 6.226000 – $15,071 – KM Resorts Inc

    2003 – 2004 – $233,282 – 6.132900 – $14,726 – KM Resorts Inc

    2002 – 2003 – $222,640 – 6.623100 – $14,745 – KM Resorts Inc

    2001 – 2002 – $213,933 – 6.474300 – $13,850 – KM Resorts Inc

    2000 – 2001 – $206,879 – 6.645600 – $13,748 – KM Resorts Inc

    1999 – 2000 – $201,734 – 6.363700 – $12,837 – KM Resorts Inc

    1998 – 1999 – $198,225 – 6.287200 – $12,462 – KM Resorts Inc

    Address for Cole Taylor Bank is 9550 W Higgins Rd, Rosemont, IL 60018

    Address for K M Resorts Inc is 3654 W Jarvis, Skokie, IL 60067

    http://mchenryil.devnetwedge.com/view/RE/09-24-430-007/2016

    ++++++++++

    Not sure if there are additional parcels associated with the golf course.

  33. Mark, Athena shows at least 6 adjacent properties that make up the golf course.

  34. The following parcels are also owned by Privet LLC, and the parcel from the above comments is included in the list below.

    The role of some of the parcels in the golf course, if any role, is unknown.

    All of the parcels are owned by Privet LLC.

    Which parcels the Village is considering purchasing is unknown.

    ++++++++++++++++

    McHenry County

    Athena – Public Property Search Viewer

    Parcel Number – Address – Tax Year – Payable – Net Taxable Value

    09-24-429-012 – 2401 N Club Rd, McHenry, McHenry Twp – 2017 – 2018 – $40,937

    09-24-430-001 – unknown address in McHenry Twp – 2017 – 2018 – $11,371

    09-24-430-002 – unknown address in McHenry Twp – 2017 – 2018 – $5,813

    09-24-430-003 – unknown address in McHenry Twp – 2017 – 2018 – $13,800

    09-24-430-007 – 2500 N Chapel Hill Rd, McHenry, IL 60051 – 2017 – 2018 – $38,568

    09-24-430-008 – unknown address in McHenry Twp – 2017 – 2018 – $305,190

    09-24-476-001 – unknown address in McHenry Twp – 2017 – 2018 – $386,398

    Total Net Taxable Value for Tax Year 2017 payable in 2018 – $802,077

    http://www.mchenrycountygis.org/Athena

  35. Johnsburg worse than Lakewood, how so Cindy? You may need a reality check, to wit:

    Minimal flooding in Johnsburg, even though it is on the Fox River.

    Lakewood?

    More like a drained swamp.

    Think Houston.

    Stable city government in Johnsburg.

    Lakewood?

    Not so much.

    A growing commercial sales tax base in Johnsburg.

    Lakewood, not so much.

  36. Not speaking anything about topography. Lovely area. I’m talking about the corruption that thinks they run the place!

Leave a Reply

Your email address will not be published. Required fields are marked *