McHenry County Blog

Alice in Wonderland

Read this article on The First Electric Newspaper about the unsavory background of one of the McHenry County SportsPlex’ consultants.

The publication reports SportsPlex supporters introduced “Terry Gaouette, Vice President of Administration and Business Consulting Services for H&K Sports Fields, Egg Harbor, WI, as a consultant.”

Further, that he was “Chief Financial Officer of the Milwaukee Public Museum and indicted on four felony counts in 2007 for draining money from the museum’s endowment funds to cover its declining operations and hiding it.”

The museum had to be bailed out by county government to keep it from going under.

Marc Munaretto

Also of interest was McHenry County Board Finance and Audit Committee Chairman Marc Munaretto:

“I understood him to represent himself as the consultant for (McHenry County Sportsplex’s) business plan. I thought he was a paid consultant that helped develop the application.”

Munaretto told reporter Pete Gonigam it wasn’t his committee’s job to “drill down that far.”

The committee has also not “drilled down” far enough to even reveal to fellow county board members and the public who owns how much of the project.

Read the whole story.

It’s getting curiouser and curiouser.

Approved unanimously by the McHenry County Finance and Audit Committee this morning, the proposed $40 million McHenry County Sportsplex comes with $5 million worth of strings to Lakewood taxpayers, including $1 million to buy the land on Route 47 and 176.

A May 13th letter from newly-elected Village President Erin Smith to McHenry County Sportsplex entrepreneur Lou Tenore of Lake in the Hills promises a “cash transfer of $1,000,000.00 from the Village to MCS to the extent permitted by law or acquisition by the Village of up to $1,000,000.00 in land for the project.”

This is part of a $5 million assistance package “to support this project in a manner consistent with Illinois law.”

Outlined in the letter are other financial incentives:

“Waiver of Lakewood municipal annexation, platting, permitting, and associated hearing fees as well as reimbursement of Village professional costs up to a total value of $1,000,000.00.“An additional $3,000,000.00 (or greater to the extent that the amount provided if fee waivers [above] totals less than $1,000,000.00) provided through a combination of other sources included, but not limited to:

1. Revenue-sharing agreements or tax rebate agreements
2. Assistance from the Village securing a grant from the Upper Illinois River Development AuthorityOther technical assistance from the Village whether provided directly to the Developer or to the Village
3. Introductions and support by the Village to funders for other grants whether such grants are made directly to the Developer or to the Village
4. Any grants or financial assistance provided to MCS from McHenry County at the request of the Village
5. Property tax abatements, if any, for the parcel
6. USDA technical assistance whether provided directly to the Developer or to the Village
7. Tourism attraction or TAP grants whether provided directly to the Developer or to the Village.

So what, according to the letter, does Lakewood get in return?

To recover the $1 million “advance”

• The village may retain, for its own purposes, its share of the first $1 million in sales tax revenue or amusement tax revenue generated by the project.
• It can also “be satisfied by other cash payments from the Developer.” Listed are a “10% additional charge on all regular admission fees and a 20%s charge on all tournaments fees along with a $1 per vehicle parking fee.” This would be pledged for a ten-year period.
• If the village supplies land, rather than case, the land will be deeded to the developer when the village has recovered the purchase price through sales tax, amusement tax and other fees.

For the $15 million loan he sought authorized by the same Federal Stimulus source, Woodstock minor league baseball promoter Pete Heitman told the New York times that he expected to save $5 million over twenty years.

The letter from Village President Smith says the $5 million in assistance needs to be provided “within 18 months.”

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The photo to the right is of Lakewood Village President Erin Smith at a fall “Meet with the Village President” gathering.

I haven’t gotten around to writing a story on baseball stadium promoter Mark Houser’s pitch to the McHenry County Board’s Finance and Audit Committee yesterday, so I would encourage you to read the stories of the other three reporters there:

Stadium Developer Asks More Time For Financing

Stimulus Bonds Delayed

Houser, of course, is one of the two promoters, the other being Pete Heitman, who pitched the McHenry County College Board to issue bonds to pay for a stadium at MCC.

The local expert on stadiums is McHenry’s Steve Stanek. He is a Research Fellow with the Heartland Institute.

When I read in Kevin Craver’s article in the Northwest Herald that the McHenry County Board is thinking of awarding the largest portion of the Federal stimulus bonds to the Woodstock baseball stadium folks, I thought of Stanek and asked for his opinion.

Just in case you are interested, here is the story I wrote the night the Woodstock City Council approved the proposal.

Here’s what Stanek has to say:

“I could quote dozens of economists and public policy researchers to show how bad it would be for the County Board to grant this greedy, self-serving request for $15 million of stimulus bonds for that baseball stadium. But I will instead quote the owners of a professional sports team:

“‘The financial issue is simple, and the city’s analysts agree, there will be no net economic loss if the Sonics leave Seattle. Entertainment dollars not spent on the Sonics will be spent on Seattle’s many other sports and entertainment options. Seattleites will not reduce their entertainment budget simply because the Sonics leave,’ the Soncis said in the court brief.” — Seattle Times, Jan. 18, 2008, regarding the NBA’s Super Sonics trying to break their stadium lease to move to another city.

“Imagine: The owners of the Seattle Super Sonics said, under oath in federal court, that Seattle would suffer no economic harm if the team were to leave the city. These same owners, when arguing for huge taxpayers subsidies for KeyArena in Seattle, said the team would bring tremendous economic benefits. But of course, when they made those claims, they were not under oath in a court of law.

“When I read about this request for stimulus bonds in the (Northwest) Herald this morning, I said to myself,

‘You’d think these people would have learned from the MCC baseball stadium fiasco.’

“But then I realized this has nothing to do with good economics or benefiting the community.

“This has to do with benefiting a handful of people with lots of money and friends in high places in this county, and with making a handful of people who cast themselves as community leaders feel good about themselves.

“I am especially disgusted with the McHenry County Community Foundation. I contacted them with information about how bad it is to use subsidies to support such facilities, and I received assurances this would be entirely privately funded. (See this article.)

“Now $15 million of stimulus bonds that have been made available by the government could go to this baseball team.

“To those few local officials who might actually care about benefiting the community, I say this would be a terrible waste of resources.

“Economic studies overwhelmingly conclude sports teams return virtually nothing to the economy and sometimes actually hurt the overall economy.

“That money could be loaned far more effectively to other businesses — businesses that have been in this county for years, paying every nickel of tax local government officials can squeeze from them.

“If they don’t believe me about the overwhelming agreement among researchers about how bad such proposals are, maybe they’ll believe this:

’With most empirical issues there’s lots of debate. Does the minimum wage cause unemployment? There’s lots of debate about that issue. Here there’s no debate.’ — Vanderbilt University economist John Siegfried regarding economists against sports subsidies, quoted in Boston Globe, March 19, 2006.”

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All the photos were taken at the Woodstock City Council meeting when the proposal was approved 6-1. Top right, pointing at the plan for the stadium is Mark Houser, the man who refused to identify himself when he walked out of a secret meeting with the McHenry County College board. The MCC plan eventually died, of course. Below are Frontier League Commissioner Bill Lee and baseball team promoter Pete Heitman. The crowd that attended the Woodstock City Council meeting is seen at the bottom.

I would note that now the Democrats have two issues upon which to beat county board Republicans about the head–the upcoming Ridgefield train station vote and the baseball stadium bond vote.

Remember the

direct mail piece the Democrats put out last fall (click to enlarge) ?

I am sure the Dems will top this piece, if the county board allocates more than half of the bonds allocated for private enterprise in McHenry County to the Woodstock baseball stadium.

And think of the mailing that could be made to every small business in McHenry County:

Couldn’t get a loan last year?

The McHenry County Board could have helped you, if (you fill in the blank).

In case you have forgotten how good the “Monopoly” piece was, talk a look at

McHenry Dems Attack Republican Monopoly

Democrats Go for Republican Vulnerabilities – 1

Democrats Go for Republican Vulnerabilities – 2

Democrats Go for Republican Vulnerabilities – 3

Democrats Go for Republican Vulnerabilities – 4

County Board Plans to Buy Land to the North

Democrats Go for Republican Vulnerabilities – 5

How Is Your Town Ranked by Local Democrats?