McHenry County Blog

Pete Gonigam’s First Electric Newspaper reported it first, but he didn’t have the map you see below.

What you see in orange is the new area within McHenry County designated by the Illinois Department of Commerce and Economic Development as “Targeted Employment Area under the Alien Entrepreneur Visa Program.”

Part of McHenry County eligible for EB-5 "Buy a Visa" investment program.

The yellow sections on the map are already so designated.

So, what does it mean?

Under the irreverently coined “buy a visa” program, foreigners with $1 million to invest in an approved job creation enterprise may obtain entry to the United States of America.

However, if the economic development occurs within a “Targeted Employment Area,” the required investment decreases to $500,000.

As you can see two townships—Riley and Chemung—previously were eligible for the smaller “entry fee.”

With the expansion of the Woodstock Greenwood Township section, whose northern edge is Ware Road (the street between the McHenry County Jail and the Administrative Building), to include the rural part of Dorr Township, Lakewood gains a potential source of investment for its part of the intersection of Routes 47 and 176. So does Woodstock as it expands southward toward Route 176.

The rural Dorr Township area was eligible because the census tract had an unemployment rate of 14.2% is 153% of the national average of 9.3%. (An area must be at least at the 150% level.)

Note that the connection is at a point. Only the edges of the census tracts touch. (See black mark on map.)

A January 6th letter from Lakewood Village President to Warren Ribley, Executive Director of the DCCA, states that “the proposed project” will employee “800 temporary and 400 permanent individuals.”

It references a January 7th letter to Village Manager Catherine Peterson from New York City attorney Stephen Yale-Loehr.

He delivers an affirmative answer as to whether the census tract can be designated a “Targeted Employment Area for EB-5 (the name of the “buy a visa” program) purposes.”

He points out his co-authorship of “Immigration Law and Procedure, the leading 20-volume immigration law treatise,” plus his teaching immigration law at Cornell Law School.

He has been a member or in a leadership position in the American Immigration Lawyers Association EB-5 Investors Committee since 1996.

And he says why this particular census tract, which contains the area proposed for the SportsPlex is eligible for a Targeted Employment Area designation.

DCCA apparently agreed with Yale-Loehr’s logic. That’s what DCCA Research Manager Edwin R. Taft’s February 16th letter indicates.

The end of January Northwest Herald Editor Dan McCaleb got Lakewood Village President Erin Smith to say that “in the future” Lakewood might be willing to discuss returning its fire protection to the Crystal Lake Fire Department. (The link provided is is not a link to the story; it’s a link to a page that will allow you buy the story for $2.95, if you so desire.)

For as long as I can remember (back to 1958 in McHenry County), Lakewood’s fire protection was provided by Crystal Lake.

But a couple of years ago Crystal Lake proposed a pricing structure that would have eventually eaten up Lakewood’s entire budget,.

While fire protection is important, Lakewood residents also value snow removal, road repair and police protection. Some even want a bicycle path and algae removal.

So the village staff and board did some hard-nosed cost-benefit analysis and concluded that it could start its own fire department, run by a private firm, American Emergency Service Corporation, and save money after the second year.

Lakewood now has begun the fourth year of a five-year contract for privatized service. Twenty-two months are left.

The Lakewood Village Board before it went into Executive Session Tuesday night. From left to right, you see Village Trustees Carl Davis, John Pfeuffer and Gene Furey,Village Clerk Janice Hansen and Village President Erin Smith.

But “the future” mentioned in McCaleb’s column is now.

The rest of the Lakewood Village Board before closing doors on the public to discuss litigation and personnel. From left to right are Village Manager Catherine Peterson, Village Attorney Richard Flood and Village Trustees Kenneth Santowsk, Dorothy Pfeuffer and John Burton.

At the Tuesday before last’s closed session to discuss litigation, the Lakewood Village Board talked about settling the suit with Crystal Lake over disputed non-payment for fire protection service and returning to the fire protection umbrella of Crystal Lake.

Crystal Lake has lost about $750,000 in revenue each year because of Lakewood’s pull-out.

On a 6-1 vote (Jeff Thorsen voting “No”), it has raised its city sales tax rate by 75% at Mayor Aaron Shepley’s behest.

Crystal Lake First Station nearest to Lakewood

Empty stores are everywhere.

Clearly Crystal Lake would love to have Lakewood return to its fire protection foal.

But, unlike the headline on McCaleb’s column, it’s more about the money than the good government goal of shared services.

Bryn Mawr subdivision sign on Route 176 near Route 47

(Logic would say that the Lakewood fire station should serve the subdivision in Crystal Lake that is closer to Route 47 than Route 14.

(Likewise, the Crystal Lake Fire station on Bard Road should be protecting Country Club Additions, Turnberry and other nearby Lakewood subdivisions.

(But, logic doesn’t always work in local governmental relations.)

Lakewood Fire Department on Haligus Road near Route 176

Before Crystal Lake wanted to charge Lakewood residents the same tax rate that Crystal Lake residents and businesses paid. Just as Lakewood residents would pay for Crystal Lake library services.

The city would not recognize that the mix of buildings in Lakewood is markedly different from that in Crystal Lake.

Lakewood does not have much business property. No high rise hotels.

Lakewood does not need all of the equipment that Crystal Lake needs to protect its large corporate structures.

In the past, Crystal Lake officials have failed to understand the concepts of marginal costs and marginal revenue.

The marginal cost of providing fire protection to Lakewood is low.

Any extra revenue is almost pure gravy.

Now, it may not seem fair to some city council folks that homeowners in Lakewood would pay less than those in Crystal Lake.

I can tell you it doesn’t seem fair to me that Crystal Lake gets to keep all my sales tax.

So, where one lives has advantages and disadvantages.

But getting “less” than one wants for something may be worth thinking about.

And maybe Crystal Lake is having such thoughts now that it thinks it has a stretched thin budget.

Main Crystal Lake Fire Station

Right not the city budget is getting less than “less,” that is, nothing.

That resulted from a misconception of its bargaining position, of thinking Crystal Lake thought it had all the fire protection marbles in town.

Obviously, Lakewood came up with a satisfactory solution.

But, now the two sides are back at the bargaining table again.

And, it appears serious discussions are taking place.

I can’t imagine more isn’t on the table that fire protection. After all, what Lakewood has in place seems to be working well.

There has to be a third leg to the negotiations. Maybe even a fourth leg.

From left to right, Council members Ellen Brady Mueller, Ralph Dawson, Cathy Ferguson, Attorney John Cowlin, City Manager Gary Mayerhofer, Mayor Aaron Shepley, City Clerk Nick Kachiroubas, and Council members Brett Hopkins, Carolyn Schofield and Jeff Thorsen.

I would observe that if Crystal Lake wants to settle the suit, maybe Crystal Lake is not so sure it can win its collection case against Lakewood.

Likewise, if Lakewood wants to settle the suit, maybe Lakewood is not so sure it can emerge victorious.

It’s been my experience when one side of a lawsuit wants to settle, they are nervous about the outcome of their case.

What will the resolution be?

It certainly will be discussed in public if the contract with American Emergency Service Corporation (Lakewood’s fire protection firm) is to be amended.  I am not aware that contract changes can be kept out of an open meeting.

And, any lawsuit settlement will have to be at least voted upon in public, while it may be discussed in private by both ruling bodies.

It was probably Don Manzullo’s 1992 campaign that started the tradition of politicians’ using the public right-of-way for political signs.

That was when he was running against former State Senator Jack Schaffer, McHenry County’s favorite.

Schaffer had plenty of sign sites; Manzullo didn’t.

So, Manzullo’s volunteers had all sorts of signs and nowhere to put them.

So, they put them on publicly-owned property.

Mid-week I was on Route 176 in Crystal Lake and saw an illegally posted sign for McHenry County Sheriff Keith Nygren.

December 31st, the sign was gone.

I wonder if the sheriff’s supporters took it down or someone else put his campaign in conformity with the law.

Headed by Lake in the Hills’ Louis Tenore, Jr., a group of investors is seeking permission to obtain $18 million in Federally-subsidized stimulus money, according to a document posted on the McHenry County Board’s web site.

The proposed McHenry County Sportsplex will be mainly on the west side of Route 47 where it joins with Route 176. That area is within the planning jurisdiction of the Village of Lakewood. Background on the project can be found here.

While discussions have been going on for a considerable length of time, the application says that the Village of Lakewood will not act on annexation and approval of the project until next March.

Issuance of the $18 million in bonds, if approved by the county board, is scheduled for April 15^th. Construction would begin January 1, 2010, with completion six months later.

If approved, unless more Federal stimulus money is found, the current $27.5 million allocation of Federal Stimulus Bonds would not seem to have enough remaining to also provide the $15 million in financing that the Woodstock minor league baseball stadium promoters are seeking.

Concept Plan for the McHenry County Sportplex on Routes 47 and 176.

SportsThe time table listed seems a bit optimistic, given the stated March approval by the Lakewood Village Board.

The name of the limited liability corporation which will own 30% of the project is MCSMG LLC. It was formed on May 12, 2009.

The Illinois Secretary of State’s Office lists it as “McHenry County Sportsplex, LLC.”

McHenry Sportsplex E-5 Fund LLC, established August 21^st of this year and located at 111 E. Wacker Drive in Chicago, will own the other 70%. According to the Illinois Secretary of State’s Office, it is related to McHenry Real Estate and Property Investments, LLC. The fund proposes to invest $27 million in the project.

The application says that $13 million in equity will be put up by the investors.

This is how the document says the $40 million will be spent:

• $6 million – land acquisition
• $6 million – site development
• $24,100,000 – new construction
• $500,000 – furniture and fixtures
• $2.9 million – professional fees

Getting the project off the ground will produce 524 temporary jobs, the application says. 420 permanent jobs will be created. Annual payroll after the first year is estimated to be $14.1 million or almost $36,000 per person per year.

The investment banking firm is identified as Stern Brothers. The bonds will be privately placed.

Kitak, Rock, LLC, will be the bond counsel.

Legal counsel is Mike Moody of O’Rouke and Moody at 55 W. Wacker Drive, Chicago.

The application is dated December 16^th.

An attachment showing local labor, supplies and materials to be used is not posted on the county’s web site. Another attachment explaining the project is also not attached.

As I was driving back from the McHenry County Government Center the back way, I came upon an accident at the dangerous intersection of Briarwood and Route 176.

Briarwood is the first major intersection west of Route 14 in Crystal Lake.

As I approached from the north I saw two fire vehicles. I drove across 176 and took this photo.

Driving past I saw a pickup truck had collided with the back of a car.

Here’s what the pickup looked like. Looks like a light on top of the cab.

The car’s rear end was bashed in.

Eventually, the Crystal Lake Police arrived.

This is a very dangerous intersection crying for a traffic light.

This is the corner that the traffic study conducted for Pete Heitman’s and Mark Houser’s baseball stadium at McHenry County College completely ignored.

Crystal Lake City Councilman Jeff Thorsen pointed that out during the zoning debate prior to the “No” votes by him and Councilman Ralph Dawson doomed the project.

It’s time for a traffic light.

Click to enlarge any image.

One sign on Route 176 east of the intersection of Route 31 was not enough to announce the routine repaving of Route 176 from 31 to the Fox River.

I say “routine” because the repaving would have been done whether or not the stimulus package was passed in Washington. That it is financed by Federal, rather than state funds is all that is new about the project.

There is one northbound on Route 31 just before the intersection.

There is one southbound on Route 31 just before the intersection.

There is one on the least used road at the five-way intersection, Terra Cotta.

These three are in addition to the one I reported on yesterday, which is on Route 176 going east.

Popping up at the intersection of Routes 176 and 31 is the sign above.

It so bothered one of the friends of McHenry County Blog that I was alerted.

My correspondent thought it probably not a coincidence that the circle on the “stimulus” expenditure sign resembled the Barack Obama for president circle.

What do you think?

They both do have blue on top.

Route 176 is being re-surfaced from Route 31 to the Fox River.

That’s what people who take Walkup Avenue across Route 176 are telling me.

How long is it going to be before the two inches of asphalt are laid?

How long must traffic slow to a crawl, not once, but twice, in order to minimize damage to one’s tires?

IDOT, where are you?

That’s what people who take Walkup Avenue across Route 176 are telling me.

How long is it going to be before the two inches of asphalt are laid?

How long must traffic slow to a crawl, not once, but twice, in order to minimize damage to one’s tires?

IDOT, where are you?

As we were about to leave for Knox Pool for McHenry Marlin Swim Team practice, our electricity went out.

No problem shortly before 1 AM when the tornado warning siren blared, but no lights at 7:30 AM with very little wind.

Go figure.

We saw lots of limbs down on South Shore Drive in Lakewood. Up to three inchers, I would estimate.

Two blocks away on Broadway Street, this tent had been blown down one door east of the creek.

As we drove down Dole Avenue, WBBM Radio reported that Route 176 was closed near Walkup. Of course, we were taking Walkup.

Fortunately, the Walkup part of the intersection was open, but the lanes east were not.

My trusty assistant photographer could not get the long lens to focus, so we can’t show you anything at 7:40 AM, but the view from the Williams intersection as we were returning to Crystal Lake about 9:30. I can’t tell whether both lanes were still closed or not.

As we drove back from McHenry on Route 31, Com Ed crews were fixing a downed power line at the bottom of the Terra Cotta valley, near the Fountains.

Trying to work our way over to Walkup to see what had happened (without parking and making through traffic more difficult) we saw downed tree limbs pretty much everywhere. The one you see is on the train track side of Gates Street.

Here’s a shot of 176 that I got down a side street.

Look at the size of the limbs that had been sawed up ready for pick up by the Crystal Lake Public Works Department. These are easily 6-inch limbs, maybe bigger.

How bad the situation on Route 176 was may be hinted at by this semi-truck load of new electric poles.

Caroline Street, whose northern end runs into the City Hall parking lot, was closed.

Center Street, the one just south of Woodstock Street, wasn’t. I got this photo of the other side of the northernly most block of Caroline Street from the Center Street intersection. Both sides of Caroline were closed.

I turned south on Elmhurst, a short street on which I twice lived. At the home where my sister Janet’s Crystal Lake Community High School Class of 1962 classmate Donna Larson lived in 1958, a crew was cleaning up storm damage.

At West Crystal Lake Avenue and Elmhurst, a city truck was filled with limbs.

We next headed to the neighborhood hit by the 1965 Palm Sunday tornado. As we approached Keith Avenue, one of the worst areas for damage 43 years ago, we saw this up rooted tree close to where Keith ends at Union Street.

My son said the picture showing the roots of the downed tree was the best of the three I took. I think this one shows the size of the tree better.

Let’s end this story with a more peaceful story.

Here’s a photo of Cress Creek. Or, is it Crystal Creek? Anyway, it’s the one that drains Crystal Lake. Note the height of the grass growing in the stream.

All photos can be enlarged by clicking on them.