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.

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.

On the northwest side of the intersection of Routes 72, 47 and 20 just south of Stark’s Corner, which I guess is now in Pingree Grove, a man and a woman were sitting on chairs on June 9th. I guess they were counting traffic.

My clue as to which village had annexed the busy corner was given by the Cambridge Lakes condo subdivision sign across Route 72.

OK work, if the sun is not blazing down.

Of course, neither State Senator Pam Althoff nor State Rep. Mike Tryon think the social cost of putting slot machines at every place that sells liquor outweighs the highway benefits.

I thought that picture on State Senator Pam Althoff’s web site looked familiar.

Here’s where I posted it.

Well, turnabout is fair play.

Here’s what Althoff says about the slots for roads bill:

“SPRINGFIELD, IL – It took more than six years of negotiations, but State Sen. Pamela Althoff (R-McHenry) says lawmakers are nearing agreement on a statewide capital construction plan.

The bipartisan agreement would channel about $30 billion into Illinois roads, bridges and infrastructure, when federal assistance is factored in.

“Getting here has been a long, tough process, but I’m very hopeful we are seeing the light and the end of the tunnel,” Althoff said. “There is wide and bipartisan consensus that the time to pass a capital plan is now, and that delaying it for another year just isn’t an option.”

Althoff said McHenry County lawmakers were working to get two key priorities included in any final proposal – construction work on Route 47 in Huntley, including a widening of the road through Woodstock and a tollway interchange, as well as funding for the Algonquin bypass project.

While the Senator said the capital plan would provide a solid boost to the Illinois economy, including the creation of tens of thousands of jobs, she noted it comes with a cost, including higher taxes on liquor and increased fees on license plates and drivers’ licenses.

“In a situation like this, you have to weigh the good with the bad,” Althoff said.

“If there was a way to pass a capital plan without raising fees and taxes, you would see lawmakers stampeding toward that solution. However, given Illinois’ fiscal crisis, that’s simply not possible.

“While I am not happy to see some liquor taxes and automobile fees increase, at least McHenry County residents will be spared the massive income and gas tax hikes contained in other versions of the capital plan.”

It wasn’t long in coming.

Here is Crystal Lake Republican State Representative Mike Tryon’s “ends justifies the means” defense of his voting to allow slot machines in every location with a liquor license:

More Than $160 Million for Local Roads in Statewide Capital Plan

Last night, the Illinois House and Senate made a monumental vote to pass the state’s first major capital construction program in a decade.

I am thrilled to announce that McHenry County is a big winner, receiving more than

• $40 million for Route 47,
• $82.5 million for the Algonquin Western Bypass, and
• $16.6 million for the interchange at Route 47 and I-90.

This is a historic day for McHenry County as this capital plan will provide tremendous traffic relief for our residents.

I have been working my entire political career to secure full funding of the Western Bypass – which is one of the most congested roads in the state. This infrastructure is absolutely necessary to support our growing community.

Additionally,

• $82.5 million will be used to fund the Western Bypass project between Route 31 North and Route 31 South, and
• $40 million will be used to add lanes to Route 47 between Reed Road and Kreutzer Road.

I also fought to secure $44 million for local roads including

• Route 14 in Crystal Lake,
• Route 31 and
• Route 176 and Walkup

in a mini-capital plan that the General Assembly approved earlier this month.

McHenry County is really in a good position because so many of our projects are very far in the engineering process and ready for construction. Our roads are in deplorable conditions and this capital bill will create a safer McHenry County for everyone on the roadway.

The capital plan will be funded through legalizing video poker machines throughout the state, minor taxes on discretionary items like beer and wine, and various increases on vehicle fees.

Although, I was not completely comfortable with each of the funding mechanisms approved, this capital plan was critical in capturing federal dollars dedicated to transportation projects in our area.

I also believe that this will capital plan will help put hundreds of thousands of people back to work and jumpstart the economy.

As always, do not hesitate to contact me with questions or concerns at (815) 459-6453.

Sincerely,

Michael W. Tryon
Illinois State Representative
64th District

I would note there is no mention of funding the Bolz Road Bridge without which the Western Bypass will not work. Local officials have asked Kane County to make the Bolz Road Bridge a toll bridge. But there will be no toll on the new bridge across the Mississippi River.

Please note that the tollway interchange in Huntley about the same distance south of the McHenry-Kane County line as is the proposed Bolz Road toll bridge.

On the plus side, now the State of Illinois has enough money to match the federal money that has been earmarked for Illinois.

= = = = =
The photo of Potterville is from the movie “It’s a Wonderful Life.”

The picture of State Rep. Mike Tryon is from the press conference that he, Congressman Don Manzullo, State Senator Pam Althoff and numerous local officials held near the intersection of Routes 62 and 31 to condemn Governor Rod Blagojevich for taking the money Manzullo had earmarked for the Western Bypass out of the IDOT highway plan.

From the spring weather and clothing evident in this photo, you can tell it wasn’t taken last weekend.

You are right.

It was taken the weekend before.

There was Lakewood village president candidate Erin Smith.

She is running against John O’Hara.

And, she wasn’t alone. Her husband and entourage were there seeking my family’s votes, too.

I don’t think a local candidate has ever come knocking on my door before.

Smith handed out a sheet outlining what she had learned while campaigning for office.

From the signs visible on Lake Avenue, she obviously has knocked on a lot of doors.

I’ve never seen such a feedback report before, so I present it below:

Erin Smith

Candidate for Village President

April 7^th Election

Top Issues for Lakewood Residents

Dear Neighbor,

My pledge throughout this campaign for Village President was to reach as many residents as possible on a personal level. I believe that face to face meetings, phone conversations, and email exchanges provide the best opportunity for an interactive discussion. It is important to me to know what is on your minds. I knew that I would have follow-up questions that would increase the depth of my understanding. And I wanted to provide you with the opportunity to test my knowledge, inquire about my leadership style, and share your opinions with me.

Thank you to all of you who have welcomed me into your homes and contacted me at my home to talk with me. In addition to the 4-page position paper I provided that summarizes the broad responsibilities of the office of Village President and discusses my qualifications for the position, I thought you would appreciate a brief summary of the issues we’ve discussed over the last few weeks. Some of these issues impact all residents, while others impact only one or two neighborhoods. But, I believe all of you will have an interest in the outcome of these issues:

TAXES

Many of you have expressed concern about our property tax levels. These are the most challenging economic conditions most of us have ever experienced, and yet our taxes have not decreased.

The most important thing to me is that each of you has a complete understanding of all of the variables that determine your tax rate, and an accurate picture of the potential for tax relief.

1. Your property taxes are based on the assessed value of your property. Assessment values are not determined by or influenced by the Village. They reflect a 3-year average and there is a one-year lag. Decreases in the value of your property that might have occurred during this recession will not be included in the 3-year average until 2010, at which point there will likely be a significant reduction in the tax base provided to the Village.

2. The Village tax rate, which is applied to this assessed value, is determined by a strict State property tax statute, which limits any increase to a 5% increase over the previous year’s tax base or to the Consumer Price Index (CPI) – whichever is lower. For many years, 5% has represented the lower amount and because our growth rate exceeded 5%, the actual Village tax rate has decreased by approximately 17.5% since 1977. Next year, the CPI will allow the Village to increase taxes by only 1/10^th of 1%, against a smaller tax base, which will reduce taxes for residents, and make it more and more difficult for the Village to maintain existing service levels.

BOARD COMMUNICATION

I have heard many complaints about the tone of the Village Board Meetings and the failures to communicate with residents in a professional manner. I have attended meetings where I witnessed the frustration of residents first hand.

1. I believe that one of the most important responsibilities of the Village President is professional, transparent communication with residents and fellow Board Members. Professional means timely, respectful responses to resident questions and concerns, and following through on any commitments made. I would agree there is an opportunity for improvement in this area.

2. My professional background is particularly well-suited to this responsibility. As Director of Compensation and Benefits for a Fortune 100 company, I have responsibility for the global Consulting and Communications Team. My job is to listen carefully to the leaders in each business, determine the most appropriate compensation and benefits strategy, coordinate all of the technical experts to define an appropriate solution, and formally communicate all compensation and benefit programs to employees.

3. I believe that two changes would immediately improve the nature of communication with residents and within the Board. First, I would immediately change the meeting rules to allow for an interactive discussion during Public Comments regarding any item not on the agenda, and to allow residents to participate in the discussion on any agenda items. Second, I would seek to establish and empower formal resident committees to work on issues that cannot be top priorities for the Village Staff (e.g. bike path development, lakes maintenance, and Village entrances). Individual Board Members would be appointed as liaisons with the committees to ensure Board support for any recommendations. This model worked very well when Tom Hendricks was the liaison to the Golf Course Committee and Carl Davis was the liaison for the Public Works Department.

COMMERCIAL DEVELOPMENT

Commercial development, particularly along Route 47, will be one of the top priorities for the Village of Lakewood over the next four years. Decreases in the taxes collected by the Village will inhibit our ability to maintain existing service levels. Carefully managing operating expenses such as labor costs will help to offset these losses, but without additional sources of revenue, service levels will decrease.

Lakewood is well positioned for commercial development along Route 47 in the very near future. The type of development I envision includes destinations that reflect our highest architectural standards, and our long-standing commitment to protecting and promoting open space and natural resources. The Comprehensive Plan that I helped create and the Planning and Zoning Committee model created when I was a Trustee have met with the highest praise from developers. They appreciate that our standards are clear and our process is efficient.

The signs that you will see on the private properties of existing developers on Ackman, Halligus, and Ballard Roads are an indication of the level of support I have personally from developers who have worked both with me and with my opponent when I served as Trustee and as a member of the Planning and Zoning Committee, and my opponent served as Chairman for the Planning and Zoning Commission.

Commercial development is an area where my opponent and I do not share the same vision. He has openly stated that he believes all commercial development opportunities should be considered by the Board, even if they do not meet the architectural standards and environmental standards defined in the Comprehensive Plan. I am confident that we can grow our commercial tax base without compromising our values.

ORIGINAL LAKEWOOD / EAST SIDE WATER PROBLEMS

Most of my extended family (21 family members in total) live on the east side in the Village of Lakewood. This is also where I grew up. I understand the water issues faced by east side residents on a very personal level. My understanding as a former Trustee is that fixing these water issues would cost tax payers in this area millions of dollars to fix.

Cost is also the reason that a long-term solution to the deterioration of Turnberry Lakes had been put off for so long by the Board. Yet, this year, thanks to the volunteer efforts of a group of dedicated residents in Turnberry led by Jesse Waldron and the formal support of the Turnberry Property Owners Association that I led, we identified a long-term solution later approved by the Village Board that was a small fraction of the cost.

I am not comfortable ignoring the east side water problems due to cost. Perhaps a committee of residents with technical expertise in this area could identify a more cost effective solution here as well. At a minimum, we need to invest in accelerating the progress of the sewer re-lining project currently underway and improve communication with residents regarding water issues.

REDTAIL CLUBHOUSE

Redtail Golf Course is one of the most important assets within our Village. I am convinced that we will not realize the full potential of Redtail Golf Club until a real clubhouse is constructed. As a Trustee, I voted in support of beginning the architectural design of a clubhouse and also voted in support of selling Village-owned lots that would provide revenue to fund the construction of a clubhouse. However, given the current real estate market, these lots have not sold, and given the current economic environment and the decreases in taxes expected, I believe that funding this construction is highly unlikely in this year’s budget. Our only hope for building this clubhouse sooner is a dramatic increase in sales tax revenues from commercial development.

TURNBERRY LAKES / SSA-1 TAXES

SSA-1 is a Special Services Area which serves as a taxing district to provide funding to maintain the lakes in the Turnberry area. Included in SSA-1 are original Turnberry and Loch Glen and all of the newer subdivisions immediately south. The Turnberry lakes are essential to the property values of residents in original Turnberry, and all of the neighborhoods that surround Redtail Golf Club, as the water from these lakes is used to water Redtail.

Originally, a Turnberry Lakes Committee existed that monitored the health of these Lakes and provided recommendations to the Village Board in terms of the tax dollars required to fund the maintenance of these lakes. This Committee was dissolved immediately following my term as Trustee, as the Board felt this work should be managed by an independent contractor, Integrated Lakes Management. The reality is that the original Lakes Committee, led by Jesse Waldron, continued to do all of the work, including regular sampling of the water and researching the aeration solution recently approved by the Board. The Board approved an increase in taxes for 2009, which represents approximately $175 per SSA-1 homeowner, in order to fund the aeration solution.

Increasing taxes in SSA-1 was a controversial decision, with residents outside of original Turnberry unhappy with the increase. I support the Board’s decision to increase taxes, as this is the only means of funding the solution that will address the root cause of the problem. However, I understand the frustration of residents outside of original Turnberry. Even though all SSA-1 residents have access to these private lakes, certainly residents that live on these lakes enjoy greater benefits.

In order to ensure fair representation in all future decisions regarding SSA-1, my recommendation would be to reinstate a formal resident committee, but rename the committee “SSA-1 Lakes Committee”, add representation from every neighborhood in SSA-1 (the Greens of Turnberry, the Hills of Turnberry, Loch Glen, etc.), and consider increasing the scope of the committee to include some of the smaller waterways in other subdivisions within SSA-1.

TURNBERRY BIKE PATH

As a Trustee two years ago, I was engaged in early discussions about creating a bike path to improve the safety of children and adults walking or biking along Lakewood Road. I was surprised to see how little progress has been made since then. I left the March 10^th budget meeting that discussed this issue convinced that the strategy for accomplishing this goal needs to change dramatically. There is no money available in the Village budget for this project, yet I know this project is very important to the safety of our residents.

Since this meeting, I have met with several residents to improve my understanding of the engineering challenges and to suggest a different approach for funding the bike path. Specifically, I have identified a committee in Lake in the Hills that has already completed bike path development using grants and other private donations, and have set up a meeting between the neighborhood leader of our effort, Sharon Bean, and this committee. In addition, I have met personally with the owner of a paving company and have secured a commitment from him to donate the engineering services for the bike path. This donation will enable us to secure funding from the Crystal Lake Park District and grant money to complete the construction of the path in the near future. This is the type of leadership residents can expect from me as Village President.

HOME RULE

I have been surprised to hear Home Rule brought up as an issue during this campaign, as I perceived this as “yesterday’s news”. As a Trustee 3 years ago, I believed there were enough advantages to Home Rule that it was worthy of consideration by our residents. As a resident, I voted in support of Home Rule, as I believed the advantages outweighed the disadvantages. However, I represented both the pros and the cons to any resident who asked my opinion. I am confident that I effectively represented the cons, since many of my closest friends, who claim I was their only source of information on the matter, voted against Home Rule. Given that the primary responsibility of any elected official is to represent the collective voice of the residents, and the residents of Lakewood clearly do not support Home Rule, I would not support another Home Rule referendum during my term as Village President.

If I have not addressed an issue that is important to you, please feel free to contact me at home (815-356-8005) or by email: erin.smith_2009@yahoo.com

My desire to be elected to the office of Village President is motivated only by my passion to preserve the quality of life we all enjoy and improve communication with residents. I hope I will have your support on April 7^th.

Sincerely,

Erin Smith

When I was in Woodstock Monday, I saw two political signs.

The first was that of State Senator Pam Althoff’s and State Rep. Mike Tryon’s.

It was on Route 14 across from the proposed minor league baseball stadium site right down from Centegra’s Woodstock Hospital.

The second one was the one on Route 47 in front of State Rep. Jack Franks’ office.

The Althoff-Tryon Route 14 message where the ostrich farm used to be is

As I drove around the corner of city Route 14 onto Route 47, I saw a very different message on Jack Franks’ sign:

Forgetting for the moment that Franks’ Democratic Party colleague U.S. Senator Dick Durbin is requesting that President George W. Bush commute George Ryan’s sentence, not “pardon” him,

Which message do you think will resonate more favorably with voters?

On another subject, it appears as if Franks’ American flag is a bit tattered.

When I was in Woodstock Monday, I saw two political signs.

The first was that of State Senator Pam Althoff’s and State Rep. Mike Tryon’s.

It was on Route 14 across from the proposed minor league baseball stadium site right down from Centegra’s Woodstock Hospital.

The second one was the one on Route 47 in front of State Rep. Jack Franks’ office.

The Althoff-Tryon Route 14 message where the ostrich farm used to be is

As I drove around the corner of city Route 14 onto Route 47, I saw a very different message on Jack Franks’ sign:

Forgetting for the moment that Franks’ Democratic Party colleague U.S. Senator Dick Durbin is requesting that President George W. Bush commute George Ryan’s sentence, not “pardon” him,

Which message do you think will resonate more favorably with voters?

On another subject, it appears as if Franks’ American flag is a bit tattered.

Randy’s Cycle place at the corner of Huntley and Main Street is selling off its inventory, starting today.

“The sale is initiated only after careful consideration,” a message to a customer read. “The state highway department will be taking over this building to expand Rt. 47 and leave us with no options. This is our way of thanking you for your business and your friendship while at the same time accomplishing our goal to empty the building.”

I went to the web site of Randy’s Cycles and found this about the moving sale:

“…GIANT relocation SALE starting at 10 am sharp Thursday Oct 9th. The State of Illinois is taking our building! We will let you know our new location! Huge savings on all new and pre-owned motorcycles, scooters, and trikes! Save really big money on all apparel, helmets, riding boots, saddlebags, gloves, sunglasses, parts, batteries, brake pads, tires, accessories, and so much more! In addition to merchandise, all store fixtures, shop equipment, lifts, specialty tools, stands, pallet racks, and more must be liquidated! REGISTER FOR FANTASTIC PRIZES!! Every thing must go! Hurry in for the best selection before we sell out to the bare walls! DEALERS WELCOME We are NOT going out of business !!!!!

Mike Claffee, spokeman for IDOT, told me, “Negotiations are ongoing with the owner of the motorcycle shop.”

Randy’s Cycle place at the corner of Huntley and Main Street is selling off its inventory, starting today.

“The sale is initiated only after careful consideration,” a message to a customer read. “The state highway department will be taking over this building to expand Rt. 47 and leave us with no options. This is our way of thanking you for your business and your friendship while at the same time accomplishing our goal to empty the building.”

I went to the web site of Randy’s Cycles and found this about the moving sale:

“…GIANT relocation SALE starting at 10 am sharp Thursday Oct 9th. The State of Illinois is taking our building! We will let you know our new location! Huge savings on all new and pre-owned motorcycles, scooters, and trikes! Save really big money on all apparel, helmets, riding boots, saddlebags, gloves, sunglasses, parts, batteries, brake pads, tires, accessories, and so much more! In addition to merchandise, all store fixtures, shop equipment, lifts, specialty tools, stands, pallet racks, and more must be liquidated! REGISTER FOR FANTASTIC PRIZES!! Every thing must go! Hurry in for the best selection before we sell out to the bare walls! DEALERS WELCOME We are NOT going out of business !!!!!

Mike Claffee, spokeman for IDOT, told me, “Negotiations are ongoing with the owner of the motorcycle shop.”