McHenry County Blog

Tomorrow is the night that the Lakewood Village Board will discuss a new municipal complex.

The rumor mill, via a Crain’s Chicago Business reporter, suggests that the Turnberry Country Club, which has undergone hard times during the recession, may be suggested as a replacement.

The following comes from the most recent Lakewood Village Newsletter:

Long-Term Plans for Village Hall

We have also had some very preliminary discussions with a consortium to begin to more thoughtfully and carefully consider

• the possible development of a restaurant on the current Village Hall site;
• the creation of a town center; and
• the construction of a municipal complex.

This process is completely exploratory at this time, and no commitments will be made without significant input from our residents.

A more formal presentation to gather additional information about the process is scheduled for Tuesday, September 25 at 7 PM.

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.

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.

McHnery County State's Attorney Lou Bianchi talks to two men at last year's Festa Italiana.

Don’t know why I didn’t think to look at McHenry County Lou Bianchi’s campaign disclosure forms before.

Probably because he is not up for re-election.

I guess the special prosecutor’s executing a search warrant in Bianchi’s office late Friday afternoon spurred me to take a look at his D-2′s this morning.

No money was raised in the first half of this year.

Of the $45,800 in the bank on January 1st, $6,800 was spent.

Having written the first article that revealed that Governor Rod Blagojevich was paying his attorneys with campaign funds, I wanted to see if Bianchi was, too.

He didn’t.

Here’s what Bianchi bought from January through June:

• $823 – The Media Center, Crystal Lake (stationery)
• $575 – Committee To Elect Ken Koehler Committee To Elect Ken Koehler
• $500 – Committee to Elect Michael W. Tryon
• $500 – Boulder Ridge Country Club, Lake in the Hills (fundraiser)
• $460 – Postmaster
• $345 – Spangler Fulfillment Center, Bryon, OH (parade supplies)
• $328 – Locker’s Flowers, McHenry (flowers)
• $262 – Turning Point (fundraiser)
• $226 – Amazon.com (equipment)
• $200 – Subway, Crystal Lake (Gift cards)
• $170 – Marion Central Catholic High School (fundraiser)
• $160 – Hands of Hope. Barrington (fundraiser)

The August 19th invitation to McHenry County Lou Bianchi's Boulder Ridge Country Club.

Bianchi is holding a $75 fundraiser at Boulder Ridge on Thursday, the 19th. I wonder if the Italian food will be as good as it was last summer at Turnberry Country Club.

Erin Smith at a Country Club Additions "Pizza with the President" meeting

Dear Neighbors,

I would like to take this opportunity to provide a series of brief updates to you regarding items that have been addressed during recent Board Meetings and other topics where I have received questions or comments from residents.  As always, I welcome and encourage your participation at Board Meetings and your input and feedback through phone conversations and email.

Committees

I am so proud of the work we already see coming out of the new resident committees we formed this year:

The Economic Development Committee is planning a Farmers’ Market and working diligently to get a unique zip code for Lakewood.

The Parks and Recreation Committee is planning fund raising events that will pay for new entrance signs for our Village and contribute additional money toward bike paths along Huntley and Lakewood Roads.  The first event is a “Dine and Donate” at our very own Lou Malnati’s on Monday, May 17.  Additional information will be forthcoming, please save the date.

The Redtail Golf Committee is constructing the business case for a clubhouse.  We look forward to recommendations from this Committee in the spring.

Finally, the SSA 1 Lakes Committee has led fundraising efforts and applied for grants that have already provided new fish shelters and fish restocking, as well as education for residents about how to keep the lakes healthy.

Economic Development

Interest in the remaining locations at Lakewood Commons remains high even in this challenging economy, and we expect one or two new businesses to open in the very near future.

The success of Lou Malnati’s is apparent from the parking lot.  My family regularly enjoys both pizza and salad takeout from Malnati’s.  Their family size salads are the best “on the way home from work” dinner I have found.

My son is a student at the Illinois Martial Arts Academy next to Malnati’s.  The birthday party package they provided was one of the best I’ve seen.

Finally, feedback regarding Leix Dental has been extremely positive.  Dr. Leix‘s reputation for innovation and customer service is well-deserved.

Progress regarding development at Route 47 and Route 176 continues, although there are numerous steps that are still necessary before the Village of Lakewood will even begin the process of considering a formal application for development.  Numerous opportunities for public review and comment will be available prior to Board action.

Finally, many residents have inquired about the status of Turnberry County Club.  Please be assured that we are actively engaged with the bank to support the transition in ownership and, until such time, to make certain that the property is maintained in an acceptable manner.  It is also important to note that the covenants require that this golf course remains a private golf course and any change would require a 2/3 vote from these residents.

East Side Water and Sewer Projects

Crew lining the sanitary sewers in the eastern part of Lakewood served by the Crystal Lake Sewage Treatment Plant to prevent infiltration into the pipes laid during the 1930's under the Works Progress Administration. There are no storm sewers.

On the east side of Lakewood, our efforts have been directed towards completing the sanitary sewer relining system rehabilitation project which will reduce inflow and infiltration.  This will ultimately reduce the chance of sewerage backing up into homes.  The final phase of this project was anticipated to cost $310,000, but bids came in at approximately 50% of the projected cost.

The award of an American Recovery and Reinvestment Act of 2009 grant and a zero percent interest loan from the Illinois Environmental Protection Agency allowed the project to move forward and construction should be complete by late spring.  As a reminder, wastewater treatment for the majority of the east side residents is provided by the City of Crystal Lake.

West Side Water and Sewer Projects

Lakewood Sewer Plant whose financing is in jeopardy because of the slow down in the building of new homes and their expected tap on fees.

Lakewood Utilities, the west side’s water and sewer service operated by the Village, has seen an unprecedented drop in tap on fee revenues due to the lack of new home starts in the past two years.  Therefore, the tap on fee revenues that were expected to fund the bond payments for the wastewater treatment plant have not materialized.

West side users of Lakewood Utilities, such as my family, have to cover any shortfall in revenues through increased water and sewer rates.  During the last two years, the Village utilized reserves to maintain these rates at current levels.  With those reserves now depleted, a new approach was needed.

Our Finance Director, Carole Robertson, has proposed a solution which allows us to meet our bond obligations, minimize rate increases, and replace the aging water tower on Turnberry Trail.  The proposal includes refinancing the wastewater treatment system bonds to lengthen the repayment term and issuing Build America Bonds for a new water tower.  This proposal takes advantage of the historically low interest rates, the competitive construction bid environment, the advantages of Build America Bonds, and decreased bond issuance costs by issuing the bonds at the same time.

Current projections indicate that this approach will save the users more than $500,000 over the next few years, while minimizing rate increases. We have directed staff to begin the bond issuance process and to include financing the construction of a new water tower.

Pedestrian Path

While not yet formalized, we also have reason to believe that our grant request for a pedestrian path along Huntley Road will be approved.  If approved, 70% of the project will be funded through federal dollars.

Pizza with the President

The next Pizza with the President will occur at the Annual Meeting of the Turnberry Property Owners Association (TPA) on Sunday, March 21, 4:00 p.m. – 6:00 p.m. at RedTail Golf Club.  As always, pizza will be provided by Lakewood’s own Lou Malnati’s.

Sincerely,

Erin

Trunberry Country Club in Lakewood, Illinois

The Turnberry Country Club is having financial problems. That’s been rumored for quite a while.

But the club did not declare bankruptcy.

The ownership is in transition says Lakewood Village President Erin Smith. Her husband Mike was the last president of the not-for-profit organization, a non-paid position.

Turnberry County Club's "Members Only" sign

And, probably a thankless job.

Village President Smith is

“confident the club will reopen in the spring.”“This is not the first time the ownership model has changed.

“Originally, the club was owned by the developer. Then, it changed into a member-owned club and now the ownership model is changing again.

“The rumor that the village will step in and purchase Turnberry County Club is without merit. The village is not in a financial position to do that.

“We can’t afford a clubhouse for the course we already own.”

Red Tail Golf Club Trailer Club House owned by the Village of Lakewood

“The difficulty stems strictly from dramatic loss of members,” Mike Smith said.

“In 2004, the equity membership was about 210. When we voted as a remaining membership to dissolve the not-for-profit organization in December, we had approximately forty equity members.“As a board our imperative was to make sure we met all our external obligations, which included both weddings and external holiday parties, as well as to make sure all the employees got paid what they were due.

“We accomplished that.

“I agreed to become the interim president to facilitate the orderly transition of ownership.

“The misinformation and the misunderstandings throughout the community never ceases to amaze me.

“The Village of Lakewood doesn’t owner or operate or subsidize any facet of Turnberry Country Club’s operations. It is a private entity, owned and operated and funded by its membership.”

Below is the letter that Village President Erin Smith has sent to her neighbors in the Turnberry Property Owners Association:

To My Neighbors in the Turnberry Property Owners Association,

Lakewood Village President is seen talking to constituents in a crowded Meridian Street home.

I know that many of you read the article in the Northwest Herald today regarding Turnberry Country Club, and I am sure that you probably have outstanding questions that were not adequately addressed.

As Village President, and as a neighbor that lives on the golf course, I want to reassure you that the Village Board and Village Staff are deeply committed to supporting the efforts of the appointed receiver in quickly and seamlessly transitioning the ownership of Turnberry Country Club.

Membership at Turnberry Country Club (TCC) declined significantly in this economy, and the number of equity members that remained was insufficient to support the existing cost structure of the club.

In response, the TCC Board of Directors dissolved the non-profit entity in order to facilitate an orderly transition of ownership.

The club did not declare bankruptcy and the remaining membership was committed to fulfilling outstanding obligations up to the point of transition.  Filing for receivership and appointing a receiver to manage the process was a necessary step in facilitating the transition of ownership.

Although I cannot make any guarantees or announcements regarding new ownership at this time, I can tell you that all parties involved are very optimistic that the club will reopen in the spring as it normally does.

I guarantee that our Village Board and Village Staff understand the significance of this club to your property values.

We have taken steps to ensure that all parties involved understand that Village ordinance requires that the property is properly maintained, and that our neighborhood covenants require that this property remains a private golf course.

There are many reasons to be optimistic about the future ownership model, and I look forward to the time when I can share more information with you.  In the meantime, I would encourage each of you to remain positive when talking with others about the future of the club.  This is the one thing that each of us can do in support of property values in our neighborhood.

If you have other questions that I have not addressed and that you believe I will be in a position to answer, please contact me at your convenience:  815-356-8005 or erin.smith.lakewood@gmail.com .

Sincerely,

Erin

I got to McHenry County State’s Attorney Lou Bianchi’s fund raiser at the Turnberry Country Club after the speeches. The parking lot was full.

While talking to McHenry County Board member Ed Dvorak on the front steps of the club house, McHenry County Sheriff Keith Nygren walked by. I wasn’t quick enough with my camera, as you can see.

When I entered the room, Bianchi was chatting with Doninic Buttitta. It was a good new, bad news story, the younger man told me when I asked his name. He spelled his father’s name and then told me the good news was that he was a “junior.” Being a “junior,” I understood perfectly.

I was mainly interested in getting photos of assistant state’s attorneys so I put faces on what those individuals do on specific cases and duties, but I did catch a few political types.

State Rep. Mike Tryon, who serves as McHenry County Republican County Chairman, arrived from Republican Day at the Illinois State Fair after I got there. I caught him with Republican Precinct Committeeman Eileen Marhoefer.

Tryon said he had more fun defending the rights of the more populated counties at a Republican County Chairman’s Association meeting. Chairman of the smaller counties wanted to do something that would seem to give their point of view more importance than Tryon thought it deserved and won the dispute.

“It was more fun than anything else I’ve done as county chairman,” he said.

The funniest thing I saw was Bianchi’s grandson bedecked in name tags.

Then, it was off to the Crystal Lake Park Board, which held an animated discussion of the Crystal Lake City Council’s rejection of its request to re-zone Viking Dodge for use as a community center.

The board adjourned without reporting to those gathered what the discussion consisted of.

Thought I would take in a Lakewood Village Board meeting last night and found my “Message of the Day” before entering the Red Bird Country Club clubhouse, where meetings are held.

The facility appears to be mainly trailers hooked together.

And bales of hay have been used to insulate the substructure.