McHenry County Blog

Part 2 of the Chicago Tribune said about Lakewood’s alternative revenue bond purchase of what is not called RedTail Golf Club:

Lakewood is featured as one of the villages

“where bets backfired on taxpayers…where taxpayers should have been protected form tax increases” but weren’t…where “taxpayers instead awoke to hikes they never approved, ones that even exceeded what the law normally allows.”

Lakewood did not make the front page of the story, but the financing of the golf course it bought is referenced on page 10.

The Red Tail Golf Course, financed by alternative revenue bonds not approved by the taxpayers, did not come with a permanent clubhouse. .

“That’s how taxpayers is upscale Lakewood in McHenry County ended up paying for a golf course they were told wouldn’t cost a them a dime.”

Although I was not quoted in the story, I have replayed the interchange between the three residents and the then-village board several times to the current village board members.

There were three of us there.

Former Village Trustee Roger Reid said that he didn’t think it was the role of government to be in the golf club business.

Attorney Jim Bishop asked if board members knew that golf courses all over McHenry County were having financial problems.

I asked, “Is this ever going to cost me a dime?”

I was assured that it would not.

The breaching of that assurance undoubtedly explains my defense of the Property Tax Cap, which prohibited the issuance of bonds without a referendum.  (I lost the fight to keep that prohibition for park districts and you can see the most recent “need” determined by the Crystal Lake Park District at West Beach.)

A sports management company made the projections that the golf course in Lakewood would pay for itself.   The Tribune article explains,

“Some residents remained skeptical, including [former Village Trustee] Roger Reid, who recalls going with a small group to the Village Board meeting to ask for assurance that taxes would not go up because of the deal.

“‘We were assured–up and down and sideways–that, “This is not going to go on you tax bill,”‘ Reid recalled.

“Then residents were hit with the catch in the law:  If projections are off, taxes can go up.

“Turns out, the town’s projections were so far off that the golf course couldn’t even pay a penny toward its loan payment for six years.  And, by the time the bond was paid off two years ago, records show, 53 percent of it was paid off through higher taxes, not the projected golf course profit.”

The Tribune article points out that no state agency verifies financial projections that will be made by firms like Power Wellness, the health club firm McHenry County College hired to justify putting taxpayers on the hook for paying back tens of millions of dollars in projected borrowed money.

Although the Illinois Attorney General has authority to “advocate for taxpayers misled by the deals…the issue has never been raised there.”

No mention is made in this Northwest Herald article of the financial fiasco that occurred in Lakewood because of the use of alternative revenue bonds.  And there is no way to finance the MCC health club without going to referendum without using alternative revenue bonds.

= = = = =

If you into irony, the day after the Tribune article about the abuses of alternative revenue bonds ran, the Northwest Herald ran diminishing the dangers involved in using alternative revenue bonds.

On January 6, 2013, right on the top of the Sunday Chicago Tribune, there was an expose that should send warning flares up about the alternative revenue bonds that the majority of the McHenry County College Board seem set to issue.

The January 6, 2013, article by Joe Mahr and Joseph Ryan about small suburbs like Lakewood having made a decision that backfired on property taxpayers.

Alternative revenue bonds are ones ostensibly to be repaid by identified sources of revenue, for example in MCC’s case, an increase in student fees of $8 per hour, increased tuition from more enrollment and health club fees among other sources…

But, just in case, don’t you know, to be paid by property taxes if the projected revenues from the other non-real estate sources don’t bring in enough money.

The Tribune doesn’t look at junior colleges in its article. As the headline implies, it looks at “Small suburbs [that have] exploit[ed} tax loophole."

The sub-headline on the front page reads,

"Even in places where residents might expect tighter oversight, Illinois borrowing rules let towns sidestep voters, make decisions that can backfire on taxpayers"

McHenry County College taxpayers managed

• not to step in the Briar Patch when the Board wanted to borrow, without asking voters at the ballot box, $25 million to finance a minor league baseball stadium,
• but are facing a similar entangling long-term obligation in current Board members' desired to borrow, without voter approval, $45 million to build a health club and new classrooms (even while only using the classrooms 45% of the time).

Lakewood’s Red Tail Golf Course, purchased with revenue bonds which could not be repaid without forcing real estate taxes up.

The story describes alternative revenue bonds as a

“device that lets towns borrow in a way that sidesteps voters and property tax caps.

• The catch for towns:  They must be able to foresee paying off the loans without raising property taxes.
• The catch for residents:  If towns’ projections are wrong, taxes are automatically hiked to make the loan payments.

= = = = =

More tomorrow.

The following email was sent to Cary Park District Executive Director Dan Jones by Michael Rein:

Dear Mr. Jones:

Having had the opportunity to discuss the possibility of the Cary Park District purchasing Chalet Hills Golf Course with many park district residents, I offer the following:

If purchased, Chalet Hills Golf Club would be the second owned by the Cary Park District.

Virtually all those I have spoken with have concurred that for a variety of reasons, it is inappropriate for the Park District to purchase a business, albeit a golf course.

With the exception of some residents of Chalet Hills, virtually all others feel it is inappropriate for a unit of government to compete with entrepreneurs, investors and other entities that typically would purchase a golf course.

Owning a golf course that a small percentage of area residents would utilize, raises the scope of recreation provided to a level that a local park district need not provide.

Certainly a sufficient number of both public and private courses exist within that area that residents can utilize.

Several residents have raised concerns regarding area privately owned courses having to compete against publicly owned courses and question where this will stop.

Where there are some things that a populous can better accomplish working together such as parks for children and programs for seniors, at what point does it all stop?

If the Park District concerns itself with golf, should it not too provide (underwrite) other adult recreational activities such as sky diving, scuba diving and perhaps motocross?

How about a shooting range?

Many feel such a purchase is speculative at best, and creates an unnecessary fiduciary risk to property owners.

One only has to consider the numerous golf courses within fifteen or so miles of Cary that have been and are currently in foreclosure.

Most conflicting, is the fact that commissioners, have the ability to golf for free.

Certainly it would be reasonable for commissioners to play for free if they were representing the Park District at an event or perhaps a round or two per year, but carte blanche!

This seems to be a conflict of interest, and impropriety!

At the last meeting, one commissioner stated the Park District had not increased their levy. The amount has been the same for the past twenty years!

Where this may be true regarding the percentage of the value of real estate that governmental bodies such as the Park District collect, although value of much of the real estate in the Park District has depreciated to values of nearly two decades ago, entities such as the Park District continue to enjoy revenue based on the peak values of 2006.

This is evidenced by the fact that the levy is independent of real estate value trends, and do not take into consideration the decline of value in property over the same period.

Vis-a-vis, although real estate values in many areas of the Park District territory now are at levels from nearly two decades ago, the Park District and other governmental bodies collect revenue based on peak values of 2005/2006 along with annual percentage increases allowed under Illinois law.

Another concern expressed by numerous residents, is the fact that property owned by a governmental entity will be removed from the tax roles with the burden then distributed among privately owned real estate resulting in yet another increase in the amount of real estate taxes paid.

Michale Rein

As an area Real Estate broker in the Cary area for over thirty years, I have had the opportunity to interact with many property owners, or perhaps a more appropriate term, is property owners who are about to be Foreclosed on, and no longer will be property owners.

It is my observation the vast majority of those losing their homes, were at one time were typical Cary area residents with middle class jobs, retirement accounts and children who they have assisted with their education through their savings and often with home equity loans.

These people now found themselves unemployed or underemployed.

They have exhausted their savings doing ‘the right thing” making their mortgage payments as long as they can, and now find themselves living literally day to day, about to to be homeless and without health insurance.

Certainly real estate taxes have been a significant drain on family budgets.

Not only for all the aforementioned reasons, but at a time when we find so many of our neighbors living in a state of crisis, seeking public assistance from sources such as area food pantries, it seems unconscionable that a taxing body that represents a significant portion of our real estate tax bills would, rather than looking for ways to reduce their levy, put area property owners at risk of increased taxes!

Should it be necessary to cover a loss incurred due to ownership of yet another golf course, regardless of the price?

At the Park District meeting last week one commissioner stated that there was not time for an advisory referendum, that a decision had to be made very soon.

I question why there would not be time, for if there is a buyer from the private sector for the golf course, should that buyer be competing with a governmental entity?

If not, why not let the bank currently holding the property continue to have a receiver run the course until such time as a referendum can held?

Respectfully,

Michael Rein
Cary Park District Resident

Lakewood Village President Erin Smith sent out the following letter to her constituents in the fall village newsletter.

FROM THE PRESIDENT

As we bid a fond farewell to summer, it’s appropriate to review what was accomplished during the past three (3) months and what we can look forward to in the coming months.

As is typical in the Midwest, summer was filled with construction projects and other work on infrastructure.

The new Lakewood Bike Path

Notable among these were

• the construction of bicycle lanes along Huntley Road, from West Beach to Chicago Avenue,
• the repaving of RedTail Drive and Loch Glen Drive,
• the construction of our new water tower on Turnberry Trail and
• work on the East Side Storm Sewer.

Huntley Road Bike Path

This project has been a long standing priority of our Comprehensive Plan and Parks and Recreation Committee. Given its cost, we were able to proceed with the project because staff secured a federal grant that paid for eighty percent (80%) of the construction. It has been a difficult and lengthy process for the residents impacted by the construction, and we give our sincere thanks and appreciation for their patience throughout this process.

RedTail and Loch Glen Drive

Both residents and golfers are pleased to experience the repaving of RedTail Drive. This portion of our roadway program was paid for with a $200,000 grant secured for the Village of Lakewood by State Representative Michael Tryon, and we thank him for his efforts on our behalf. With revenues from our General Fund, we were also able to repave Loch Glen Drive and make several roadway repairs throughout the community. We receive a lot of complaints about the gravel that is “kicked up” at busy intersections, and it is a maintenance problem for our residents and Public Works crew. Therefore, we took advantage of this year’s roadway program to install cobblestone returns at the intersection of RedTail Drive/Loch Glen Drive/Bardwell Lane. Please take a look and let us know what you think as we contemplate whether to continue this program at other key intersections.

Water Tower

We have also nearly completed the construction of our new water tower on Turnberry Trail, and it is expected to go online shortly, at which time the old water tower will be removed. In terms of branding our community, a strategic decision was made by the Board of Trustees to position the writing so that it is visible as you approach the Village of Lakewood from the north and south. The lettering is most visible from Turnberry and RedTail golf courses, where visitors will see that they are in the Village of Lakewood.

East Side Storm Water

In our ongoing efforts to address the issue of storm water on the East Side of the Village, our Public Works Department recently completed a project to clean and televise one-half of the Broadway storm sewer outfall pipe. This project was completed at a cost of approximately $17,150 and verified our concern that substantial repair and replacement of the storm sewer will be needed. We will include revenues in the budget for the next fiscal year that will allow us to complete the second half of the cleaning/televising project in order to assess the full extent of the work needed and begin to develop a plan for funding the repairs.

Other Summer News

In addition to our infrastructure improvements, we had another safe recreational season on Crystal Lake, and we extend our thanks to the Police Department for its consistently strong enforcement in this area. I am also very pleased to report that RedTail Golf Course has had a strong year to date. Revenues are greater than last year, and the volunteer program that was instituted for starters and rangers has helped to decrease expenditures. The golf season is not yet over, so take advantage of some great fall rates to help insure that RedTail Golf Course has a great year!

Economic Development Update

Looking forward, we continue to place economic development as our number one priority. Toward this end, we have hired Dobbe Marketing & PR to help our community develop a strong and consistent message to attract businesses. A Focus Group was held with local businesses and residents in July, and the results of that meeting will be shared with the Board of Trustees at the meeting on September 13. Primary topics will include:

How to best take advantage of the contacts of our residents to attract the types of businesses identified as priorities. You are our best resource!

How to partner with the developer of Lakewood Commons to fill the center, including the remaining vacant parcel.

Whether the current site of Village Hall can or should have an alternative use, such as a restaurant.

Whether it is viable to develop a town center and, if so, where?

I encourage you to participate in these discussions and provide your feedback to any of our elected officials.

Also in July, the Board approved a 6-month extension of the preliminary agreement with the developer of the sports complex. Financing has not yet been secured, but some indication of progress was presented.

Some of those attending the July SportsPlex board meeting at which Village President Erin Smith broke a 3-3 tie vote in favor of granting six more months for developers (seen on the right side of the audience in the front row) to obtain financing.

Our Board was split on the decision to extend the agreement.

I voted to extend the agreement because other surrounding communities have automatically extended existing agreements to support businesses in this difficult economy and I believe we need to show an equal level of support.

Input from our Focus Group, which reinforced that the sports complex is consistent with our vision, also influenced my vote.

Through the first three months of our current fiscal year, I am also pleased to report that our sales tax revenues have increased by nearly $6,400 over this same time period last year. This increase is most directly attributable to the four (4) new businesses that were annexed last summer, and we believe that we will continue to experience increased growth in revenues from these businesses.

In fact, The Gardens of Woodstock recently become a member of the McHenry County Convention and Visitors Bureau, and motor coach tours are already making regular stops for lunch and shopping. As we seek new businesses, our most effective testimonials are our existing businesses, and it benefits all of us to support them.

New Entryway Signs

In the upcoming months, you will also see three (3) new entryway signs installed as one of the recommendations from the Parks and Recreation Committee, which is interested in establishing a Garden Club to help landscape these and other public areas in the community.

Could Lakewood residents save money by having the village go shopping for electricity?

We are also exploring the possibility of working with neighboring communities to bid for the purchase of electricity for our residents. Harvard and Fox River Grove recently completed this process and had great success with overall savings for their residents of between ten (10) to fifteen (15) percent on the electric bills.

Such a process requires the passage of a referendum by our residents, and we have set a tentative goal of placing such a referendum on the March 2012 ballot. Any resident who did not want to participate in the program could simply “opt out” and continue to purchase their electricity from Commonwealth Edison. Again, we would be interested in hearing your thoughts about the program. Our goal would simply be to save our residents money in these difficult economic times.

In addition to soliciting your input on a number of issues, I am always available for a Pizza with the President and welcome your invitation.

Sincerely,

Erin

Lakewood Village Trustee Ken Santowski has a delightful habit of giving his view on what happens at Lakewood Village Board meetings each month. I attended this meeting, but still have gotten around to writing up my notes. Here’s his version:

Village Board Meeting of March 22nd, 2010

When I walked into the room that evening I was pleasantly surprised to see the room “somewhat filled” with residents. It was nice to see “Lakewoodians” come out for a meeting.

Then I remembered (how could I forget) the budget talks involved Redtail.

Since the other budget items were some-what “status quo”, I shall jump right into the Redtail talk. That does not mean they were insignificant, but since the economy is still down, those funds will have less money in them to allocate to projects, repairs and maintenance.

Whether you agreed or not with the board some 20 years ago when they decided to purchase Redtail does not matter anymore.

In October, the golf course will be paid off and the village will own the course free and clear; but with a catch.

A number of repairs and upgrades will need to be done to the course over the next ten years to keep it at the level golfers expect.

The big question is: How do we pay for those expenses?

Everyone on the board and those in attendance all agreed that Redtail should be an Enterprise Fund in the future.

KenSantowski

What that means is that the golf course will have to stand on its own in the years to come. Its budget will be set by those who use the golf course and those who work there.

Money will not be taken out of the general fund to pay for operation of the course.

The board can vote to “loan” the fund some money if needed.

Based on the numbers presented to the board over the past few years, it appears that the course can stand on its own.

The big question is: how to pay for future repairs and upgrades?

Three (3) major upgrades needed to be talked about-Bunker replacements, sprinkler system and the clubhouse (or lack thereof) were the points discussed. Numbers were thrown around of about $3.5M to $4M for these future projects.

• The water sprinkler system needs to be replaced at a cost of about $1M.
• The bunkers need to be redone at a cost of about $500K to $1M.
• Then there is the trailer/clubhouse. Costs are estimated to be about $2M.

There were lengthy discussions on how to fund these projects.

Three opinions were offered during this period. The opinions were based on current need and future need.

I shall begin with my own first.

In the foreground is Red Tail Committee member Jeff Iden, a candidate for Lakewood Village Board against Julie Richardson. Sitting to his left is Rich Ford, who made the presentation.

During the past year the board challenged the Redtail committee to come up with a plan to build a new clubhouse that was affordable and practical. This was a major task since they could not have anyone give them “real” estimates of the cost. However, this group of golf enthusiasts collected vast amounts of information from various courses and spent hundreds of hours compiling and sorting the data.

They came up with a comprehensive plan to build a clubhouse that was practical and affordable and still have some (not a lot) of reserves for future repairs and improvements (bunkers and sprinklers). I was under the impression that this was the object of the committee and then they make their recommendation to the board; which they did. No, it was not a formal presentation but it certainly seemed to me that it was a step in the right direction. It seems like that proposal has been pushed aside because of the dreaded “doomsday scenario” once again.

In order to figure out if you are headed in the right direction, it is best to take a step forward. I was asked if I would ever sell the course. I answered yes but it would have to be for an incredible amount of money and remain a golf course.

How much money? If someone came and offered 2-3 times the price of the value of the course, I would definitely consider it. Anything else would not be considered unless we were in dire financial trouble. And the golf course is not in financial trouble.

I believe we should seriously consider the committee’s findings and look at building a small reputable clubhouse.

No, we do not want to compete with Turnberry, Pine Crest or any banquet halls.

Yes, we would like to be able to have larger group outings and tournaments.

For the last 10 years Marriott Lincolnshire has had a tent up that held weddings, parties and meetings. It was used when needed and it seemed to work just fine.

Several courses, including Redtail, have used tents in previous years to “house” larger events. The committee’s finding was that a small versatile clubhouse could be built on the same site as the current trailer, service most golf outings, and be profitable.

Why wouldn’t we start to go down that road? It certainly seems like the least destructive path.

During the course of the budget hearing, two financial resources were discussed. I found that a little premature since we are still “stuck in park” about the golf course and clubhouse.

The two resources were

• a referendum (hold onto your seats) and
• a Special Services Area Tax (say what?)

We have not even made the last payment on the course and some people are already talking about a new tax to help fund it.

I tried to divert the discussion about either of those resources and get back onto the committee’s recommendation, but my shipmates kept steering towards the rocks.

This man is heading to the 6 PM Lakewood Budget Hearing in the RedTail Clubhouse.

The constant talk of not having money left to build a clubhouse and pay for repairs just does not seem to be justified when the numbers speak for themselves.

I am not sure if we as board members are serving the residents in the best capacity when we talk of new taxes before the old ones expire. The course (get it …”course”) we should take is to move forward with replacing the trailers with a “clubhouse” that is affordable and profitable.

We, as a board, have the resources to accomplish that during our tenure, during this year. I am definitely against a referendum or an SSA when it has not been proven that the golf course will fail financially without it.

Most of the residents in attendance seemed to be concerned when those 2 resources were mentioned.

Trustees Carl Davis, Julie Richardson and Gene Furey take part in the Red Tail Golf Course discussion.

Jeff Iden (Redtail Committee Member) tried to explain to the crowd that the course makes money once you paid off the debt. He also reiterated that this had been the case for many previous years. No, we can’t just erase the fact that the club had large payments here in the end, but facts are facts.

And since the members of the committee seem to know what they are talking about it seems to me that we should at least respect that knowledge and finally take a step, grab a shovel and start building that clubhouse. After all, isn’t anything better than what we have?

After a short break, we can start talking about the actual meeting.

Well how was your break?

The meeting was rather short and concise except for one partial problem.

Recently, a rather sizeable grant was awarded to Lakewood and several surrounding towns to upgrade the communications equipment amongst fire and police. The intent was to streamline and decrease the possibility of errors when those services were needed. Bids were submitted to SEECOM (Southeast Emergency Communications) based on their criteria.

Apparently, somewhere along the way, things got tangled up in the interpretation of the requests for bid and we wound up getting slightly different bid proposals. If you think these statements are confusing, then you should have been there in person. After some lengthy and sometimes confusing statements, it was decided to table the awarding of the bid until things get straightened out. This one will get interesting.

The only other real decision was to award the work for the Huntley road bike path.

As you all know I was and still am against this project since I believe it benefits Crystal Lake more than Lakewood. Yes, I am all for safety of riders, walkers and runners, but, this path (which Crystal Lake decided to NOT help fund) will make it easier for Lakewood residents to get to Main Beach and other entities in Crystal Lake where of course they will spend their money.

Yes, Crystal Lake residents will have their chance to use the path and ride to Lou’s, the karate studio, dog groomer, dentist, day-care and attend church, but we paid for the path, not them.

Fortunately, since the economy is still down, the bids received were significantly less than anticipated, thus, if the project comes in on budget and we receive the reimbursement from the GOVERNMENT, it will ultimately save us money.

But as I stated, I was against building this path in the beginning since I wanted to use those funds to build a certain “clubhouse “(yes, in my backyard) that would have provided revenue to our Village. Just because someone offers to sell me a Maserati for $40,000 doesn’t mean it is a good deal if I don’t need one!

Well, it is time to put away my typewriter until next time. So, if you have the urge to attend the next village board meeting on April 12th, please do so. There will be some new faces on the board that night since the election is coming up.

Speaking of new faces……. It is time to go out and vote. The election is Tuesday April 5th. You have 2 local election decisions here in Lakewood. There are 3 candidates running for 3 positions of 4 year terms- Gary Sexson, Carl Davis and Ken Santowski. You can vote for one, two or all three of them. Or you can show your disdain and vote for none of them. Yes, those three (I am one of them) will be elected that night (hopefully).

The tightest race and most controversial one is between Jeff Iden and Julie Richardson for the 2 year term. I have had the opportunity to work with Julie as President and now as Trustee (she was appointed to this position to fill Dorothy Pfeuffer’s spot). I have also had the opportunity to work with Jeff Iden since he is on the Redtail Committee and he is also a local businessman. Both would make wonderful board members. Depending on how you look at the village now is the way you should vote. If you think things have gone great over the past couple of years, then vote for Julie. If you want some changes because you are not the most happiest of people and believe Jeff Iden will do a better job of saving your tax dollars, then vote for him. The most important thing is to get out and vote on Tuesday April 5th. It is your money

Warmest Regards

Kenneth M Santowski 847-910-2985

This message was sent to you because you asked me to send it to you. Should you decide that I cannot spell or am just an irritating person, then ask to be removed from the list. I can handle it. You have the right to forward this to anyone you want. I have nothing to hide and these words are mine and mine alone. They reflect my interpretation of what I encounter sitting behind the desk as your representative. Let me know what you think both in person and at the ballot box. Thanks, again

A golf membership card arrived in the mail today from the Turnberry Country Club. The club has even figured out that my wife has played golf most recently, but somehow managed to call her a "Jr."

No initiation fees.

That’s what the post card I got today at my non-Turnberry Lakewood home said.

Just spend $355 a a month, if you join on your own, or $580 a month for the whole family.  Tennis courts included, but I don’t see mention of the swimming pool.

Four types of memberships are available at Turnberry Country Club.

The Turnberry Country Club, of course, was what Lakewood’s Turnberry Subdivision was built around.  It was a private club, but fell upon hard times.

There’s a lot of that going around, I believe.

See Lakewood’s “ Red Tail Golf Course in Trouble,” for instance.

Now, Turnberry is apparently loosening membership requirements.

I’ve wondered more than once recently why Lakewood’s taxpayer-owned golf course could not be combined with Turnberry.  The village could allow widening of roads between the two courses so golf carts could go from one to the other.

The Red Tail Golf Course Clubhouse would never be put on a promotional piece.

Maybe share clubhouse profits, if any.

Lakewood residents might want to attend the 6 PM village board budget hearing next Tuesday evening.

The bonds for buying the golf course will finally be paid off after this year’s taxes are collected.

Taxpayers will own the property and the question is what to do with it.

Advocates of Red Tail undoubtedly want to build a new club house to replace the trailers and, as long as I and other real estate taxpayers have no personal exposure, I guess that’s worth considering.

Watch my reaction if there is a proposal similar to the one in the early 1990′s, however.

Then, three of us when to a village board meeting.  I asked if it “was ever going to cost me a dime” and was told it would not, that the bonds to finance buying it would be revenue bonds, not general obligation bonds.

A former village trustee expressed the opinion that the village should not even consider being in the golf course business and Jim Bishop pointed out that golf courses were in trouble all over the county.

The definition of "member" is being loosened at Turnberry.

Imaging my astonishment when I discovered some sweet talking bond adviser convinced the village board to issue what are called “double-barreled” bonds.  They provide for payment by the general taxpayer (you and me) if the project’s revenue is inadequate to pay off the debt.

It was and we paid.

$500 a year.

That annual cost made me such a believer in having referendums before a public body can go into debt!

If my village board decides to follow that example, expect to see me petition in hand at my Lakewood neighbor’s doors…even if it is 10 degrees below zero.

When we visited Eagle Ridge last spring break, the magnolia trees were blooming outside our room and it was warm enough for bare legs.

Having examined the plane fares to Florida, the three Skinners certainly are not flying south.

So, the question is where we can drive?

Should we go to a water park in the Wisconsin Dells, Rockford (as some Wisconsin State Senators did) or Gurnee?

Alternately, how about a return to Galena Territory, where we stayed at the Eagle Ridge inn as the magnolias were blooming?

This couple was enjoying a round of golf as we were off to Downtown Galena.

My wife and I have never golfed together, but if she could get a girl friend to go with her, she’d be up for a round, I’ll bet.

Others were playing tennis, but that’s not my game either.

People were enjoying the tennis courts.

And, if you go to The Atomic Toy Company (owned by Crystal Laker Dave Rokusek), your son and his buddy might pick up some liquid sting and he invent their own competition.

As this liquid string fight was going on, I was wondering what the grounds people might think when they next mowed the grass.

The Atomic Toy Company is chockful of toys from days gone past. There are enough toys priced under $1 that anyone can find something worth buying. It really is the one store Downtown that should not be missed.

That’s not to say there isn’t a lot to keep one busy on the grounds.

My idea of a vacation is being able to sit down and read a book (although I also stand in long Disney World lines and read). From the balcony of our room at Eagle Ridge, I could watch the action on the path below and keep an eye out for the resort's namesake bird.

There’s a path running around Galena Lake. Whether it’s walking a dog or with one’s family, it’s a way to commune with nature.

Not only were the magnolias out while we visited last spring, but daffodils were blooming near the parth.

There's a clear view of the lake before the leaves come out.

I’m pretty sure the path goes all the way around the lake. There’s such a great view of it from the Eagle Inn dining room and upper walkways.

If renting a boat is too ambitious for vacationers, they can just sit on a bench as the couple below is. Actually, it was warm enough to take a boat out on the lake the week we were in Galena Territory, but they were in winter storage.

From the docks I sighted below the high deck, it appears that visitors can rent boats when it is warmer.

The dining room at Eagle Ridge Resort in Galena.

Inside is a wonderful dining room.  Get a table by the window at sunset.

Sunset from the Eagle Ridge Resort dining room.

The view is remarkable.  And there’s people watching, too, because a walkway is between the dining area and the view.

If you don’t want to dine so formally, there is a deli.

The staff at Pizanos Deli is so fast, my digital camera could only catch a blur. (Look in the lower left hand side of the photo.)

There’s plenty of seating.  I see five tables indoors and there more outside.

Look at all the tables in the deli.

If the woman of the family manages to find the shops…

The shops are on the right, just as one comes in the main door.

There are comfortable chairs just beyond in front of the dining room.

If your wife goes shopping, I'd advise bringing a novel to spend the time along.

Of course, you could just go into the bar and watch some game on TV.

The Eagle Ridge bar is right acorss a hall from the deli. I imagine one could eat deli food there, too.

One day while my son and his friend were in the pool, I went exploring.

The spring days were so moderate that the pools room was rolled back so fresh air could come in.

I walked down a long hall and admired the paintings that were for sale.

It appears that the old lead mining town of Galena is home to a lot of artists.

As I walked down the hall, I discovered that Eagle Ridge is not only a resort, it is a conference center.

The tables were set for some big affair in the conference dining room. People in attendance probably hope they get near the windows.

My immediate inspiration for writing this article was an email that I just got from Eagle Ridge about a “Wine Lovers Weekend.” I’m not a fan of wine, but one whom I love is.  Come to think of it, I don’t even know if March 24-27 is during Crystal Lake’s spring break.  No matter, we’d bring wine and buy it at meals.

Eagle Ridge Resort's private label red.

Eagle Ridge has its own label, which my wife likes.  My guess is there will be wine from many vineyards.

Galena Cellars is just inside the flood gate off Route 20.

We always visit Galena Cellars.

Almost forgot.  I didn’t get any pictures, but my wife loves the spa.

Here’s the latest missive delivered in the mail to Lakewood residents:

Erin Smith

From the President

On behalf of the Board of Trustees, I want to wish you and your families a Happy New Year.

As a community, we face many of the same challenges confronting individual families and neighboring communities. The economy continues to be sluggish, especially as it relates to the downturn in the residential building sector. Delays in payments from the state of Illinois also present financial challenges. However, 2010 was a historic year for the Village of Lakewood, and we have many reasons to be thankful.

AAA Bond Rating – In May, the Village of Lakewood received its first bond rating from Standard & Poor’s. It was a AAA rating – the highest possible and remarkable for a community of our size with limited commercial development. It is a testament to the long standing conservative financial philosophy of our Board of Trustees and the implementation of that philosophy by our staff.

Annexation – In June, the Village of Lakewood annexed 565 acres of new territory. This action served two primary purposes – to secure a valuable intersection at Illinois Route 47 and 176 for future commercial development and to bring four (4) existing businesses into our community. This action was the culmination of nearly ten (10) years of strategic planning.

Sports Complex – In July, the Board of Trustees unanimously approved a detailed Preliminary Plan for a 165 acre sports complex at the intersection of Illinois Route 47 and 176. This approval was predicated upon the developer securing financing and purchasing the land, which has not yet occurred. The Board of Trustees has always understood the uncertainty inherent in a large, private equity venture and has worked diligently and successfully throughout the process to insulate our community from any financial risk.

The Village Board remains strongly committed to commercial development along the Route 47 corridor and we are hopeful that the Sports Complex will be an integral part of our plan. We are also confident that other suitable projects will come forward as the intersection of two major State highways makes this one of the most desirable development locations in the County. Important technical information (i.e. wetland delineations, soil conditions, traffic counts, etc.) that was gained as we prepared for the Sports Complex will be invaluable as we engage in discussions with other developers who have expressed an interest in this area.

Fire Protection Services – Four (4) years ago, the Village of Lakewood made a strategic decision to create its own Fire Department and outsource the provision of these services to a private firm, American Emergency Services (AES), which has served our residents professionally and skillfully during this time. We owe AES a debt of gratitude for all of their efforts.

Lakewood Fire Station

As a part of our ongoing review of all of our services, however, the Board of Trustees has unanimously determined that these services can best be provided by the Woodstock Fire Rescue District (WFRD).

As a result of its greater size, the WFRD will be able to increase the level of service to Lakewood residents while significantly reducing our annual cost for fire service. They will provide an automatic back fill of our fire station on Haligus Road when the first unit responds.

They plan to increase the number of personnel at the Haligus Road station from three (3) to four (4) firefighters. Additionally, the capacity for water storage in tanker trucks that is required in areas without hydrants, such as the east side, will increase substantially.

We believe that this consolidation or sharing of services will become commonplace in the future as all units of local government seek ways in which to provide services to their constituents in the most cost effective manner possible.

New Water Tower – In May, we were able to take advantage of financing available through the American Recovery and Reinvestment Act to refinance our wastewater treatment bonds and finance the construction of a new water tower for the west side.

This served two purposes -

• the increase in Lakewood Utilities fees that would have been passed on to existing residents on the west side as a result of the downturn in the housing market was avoided, and
• a necessary capital improvement was financed at a very low interest rate.

The new water tower was a necessary investment and was listed as a “critical need” in an independent engineering study, as our current water storage capacity is not compliant with recommended guidelines for fire flows.

Construction of the new water tower, located near Turnberry Country Club, has already begun and will serve all west side residents.

Lakewood Quilted Barn Program – Recently, you may have noticed a beautiful piece of art displayed on the side of the Village barn on Lakewood Road. This quilt was designed and painted by Heather Burton, Trustee Burton’s daughter, and is on display as part of the McHenry County’s Historical Society’s Quilted Barn Program. The Quilted Barn Program is well-publicized by the Historical Society and should bring visitors to Lakewood that may otherwise not have known about our beautiful town.

RedTail Golf Club – There have been a number of articles in the local press about RedTail Golf Club, and I want to take this opportunity to clarify its status.

Perhaps most importantly, I am confident that RedTail Golf Club will open as scheduled (as soon as the weather permits) and operate for the full season.

As with all golf courses, the sustained downturn in the economy has presented tremendous fiscal challenges.

The Red Tail Golf Course Clubhouse

While the number of rounds played at RedTail Golf Club has remained consistent at between 25,000 and 30,000 annually; the revenue per round has decreased as the price per round has been discounted to remain competitive.

The lack of a substantial clubhouse also limits the amount of revenue generated by food and beverage sales.

As with all of our operating enterprises, the elected officials and staff monitor financial trends very carefully.

RedTail Golf Club will finish this fiscal year with a small reserve, and the internal analysis was a proactive “call to action” to begin a strategic analysis about how to insure that RedTail Golf Club remains a viable entity that contributes to the overall quality of life in our community.

Pizza with the President – It’s time for my quarterly neighborhood meeting, but I do not yet have a meeting place. I would like to try to meet in a neighborhood I have not yet visited, such as Brighton Oaks or Loch Glen. I truly appreciate the opportunity to meet with neighbors in an informal environment. The meetings to date have provided a wonderful opportunity to discuss Village-wide and neighborhood-specific issues. Lou Malnati’s provides the pizza for the evening. Please contact me if you are interested in hosting an event.

I strongly encourage anyone to contact me, any of the Trustees, or the Village Manager with questions or concerns regarding any of the projects highlighted in the newsletter or that you might read about elsewhere.

Sincerely,

Erin (Smith)

6 AM New Year’s Day the Woodstock Fire Protection District took over the manning of the Lakewood Fire Department.

Although the phrase “economies of scale” was not mentioned, there was talk of saving the money needed to pay a fire chief under the new arrangement.

Only time will tell whether trading the private enterprise model with non-union and on-call firemen for full-timers who are union members with attendant pension costs will be cost-beneficial.

But since re-organization of Lakewood village services has been put on the village board table as a money-saving idea, let me pass on a suggestion made by Lakewood resident Marty Walter.

Club house at the Red Tail Golf Course.

There is no doubt that the Lakewood village golf course, Red Tail Golf Club, is in financial trouble.

Village President Erin Smith suggested that the cause was the lack of a good club house.

With that background, Walter suggests that Lakewood cut a deal with the new owners of the Turnberry Country Club to use its club house.

He suggests that managing two 36-hole golf courses that are close together can’t be that much harder than managing one 18-hole golf course.

If one can save the money by not having a fire chief in both Woodstock and Lakewood, maybe there are management savings in the golf course business as well.

Could a route be found so that people could drive their golf carts from one course to the other if they wanted to play 36 holes in one day?

I don’t know the neighborhoods, but it would seem that might be possible. After all, people drive golf carts on the roads in Sun City. State law allows a municipality to make that possible.

Turnberry Country Club House

Could a deal be cut on club house revenue? Maybe it could be based on rounds played on the respective courses.

“What use would be made of the current Red Tail club house (trailers cobbled together)?” I asked.

Walter suggested that some use could be found, maybe as a training facility. Maybe the current trailers could be removed and the heating and cooling costs saved.

The details of any such joint operating agreement would have to be worked out by those knowing more about the business than Walter or I.

But, the possibility that taxpayers throughout Lakewood might get stuck with future taxes beyond next year’s to pay off the bonds that purchased the golf course just before the real estate Tax Cap would have made it impossible without referendum approval is a non-starter with me.

Property covenants in Turnberry say that the country club must remain a membership-based club. I have been told that when one buys a round of golf for $50 a membership is included.

I shall certainly be asking all of the candidates for village board what they plan for Red Tail’s future.

Taxing me and my neighbors to pay for anything in this enterprise that was sold as and should be self-supporting won’t be part of the answer for those I support for election in my part of town.

I suggested at the last village board meeting that the land be sold to a developer. Smith said that neighbors wouldn’t like to have townhouses where they thought would be a golf course.

Of course, I did not suggest what type of housing might be built. That would be up to the village board.

I do know that there is no added benefit to me and my neighbors from the village’s ownership of a golf course. Our property values are tied to our proximity to Crystal Lake (the lake, not the city).

If those who do benefit directly from it want to buy the golf course, more power to them.

Or they could join others on what might be called the “Exit Strategy Committee” to find a way to keep the golf course there, but to make it self-supporting.

Who knows, maybe Turnberry Country Club might even let the village board hold meetings at its club house. I can’t image it would be busy enough not to have an empty room for the once-a-month Tuesday night meetings.

Besides the transfer of fire protection from the privatized service provided by American Emergency Service Corporation to the Woodstock Fire Protection District, the other issue I found interesting was that the village golf course is in financial trouble.

Compare this Red Tail Golf Course club house with that of the Huntley Park District below.

The result was that the village board voted to tax property taxpayers for the entire amount owed in the last year of the non-referendum bond issue.

Blamed for the inability to make a profit was the lack of a decent club house.

Red Tail now uses cobbled together trailers which do not produce much food and beverage sales.

There is so little money left in reserve that there may not be enough to operate for a full year in the near future.

Gene Furey

After looking at the figures new Trustee Blake Hobson said, “I don’t see a new building.”

A need for $50,000 in capital improvements was mentioned by Trustee Gene Furey.

Explaining the competition, he told of visiting Oak Ridge Golf Course and stopping in a couple of years ago.

Erin Smith

He asked the price per round and was told that it was $80.

He reported it was down to $35 now.

“We’re worried about the short-term,” Village President Erin Smith said.

“If we have the same revenues we have this year, we may not be able to run it all year.”

Carl Davis

Trustee Carl Davis pointed out that the bond tax had been abated in total for 8 years and in part a ninth year.  ( I so vividly remember the $500 a year golf course tax during the 1990′s.  Those with more valuable homes obviously paid more.)

Pinecrest Golf Course on Algonquin Road.

Davis pointed to the downturn in revenue being caused by

• a downturn in the economy
• Turnberry Country Club
• the Huntley Park District course

I asked how much it would cost in terms of cents per $100 of assessed valuation.

The answer was 21 cents per $100 of assessed valuation.

Blake Hobson

“I loath this tax,” Hobson said.

“I don’t think a municipality has any business owning a for-profit (business).”

During the discussion, I suggested selling the course, which Smith interpreted as leading to the construction of town homes. I was thinking single family homes, but her point that selling the course would negatively affect the value of the homes fronting on the course is accurate.

An opponent of the proposed SportsPlex shared this idea with me yesterday:

“Maybe the Village should think about selling the Red Tail land to the sportsplex developer.

“You would eliminate the Red [Fox]Tail debt, sewer and water is already there (saving Lakewood $5-6 million), golfers could move to Turnberry and help it out of debt and give Lakewood some revenue, and Lou Malnati’s would love the traffic.

“On top of all these increased funds to Lakewood, how about all the added real estate tax revenue that Lakewood would now get for this developed property?

“They would still have the corner to develop when the economy improves and they can afford sewer and water.

“Sounds like a win-win.”

The screams you hear from those around Red Tail probably echo those living near the proposed SportsPlex location west of Route 47.

Unlike the opponents to the current proposed location, however, those living around Red Tail can vote in the upcoming Lakewood village elections.