Discussing the Effect of Lakewood’s Issuing Debt Certificates to Finance New RedTail Golf Course Clubhouse

Yesterday, McHenry County Blog published the Lakewood Village Board’s discussion when the newly-purchase golf club came up way short on revenue to fulfill the requirements of the Alternative Revenue Bonds issued to buy it.

Jump ahead about twenty years and we find a proposal for “Construct Leaseback Transactions.”

Strangely, the proposal from

  • Draper and Kramer
  • Gateway Development Partners
  • BKV Group
  • Stern Brothers & Co., Investment Bankers
  • FCL Builders

does not say what project is being addressed.

I think it was a new clubhouse, but I am not certain.

Nevertheless, two pages are relevant to the new RedTail Golf Clubhouse discussions now in progress.

Here they are:

Note the bottom dot point, which points out the debt certificates would be repaid from Lakewood’s “annual operating budget.” Therefore, should RedTail revenues fall short, homeowners would have to pick up the slack through higher property taxes.
Note that no referendum is required for the Lakewood Village Board to put the Village in debt.

Comments

Discussing the Effect of Lakewood’s Issuing Debt Certificates to Finance New RedTail Golf Course Clubhouse — 4 Comments

  1. This appears to be a general document explaining “typical” leaseback transactions not specific terms of a potential Redtail project.

    I would classify this as due diligence to explain to the Board and residents how a transaction of this nature could be structured.

    Curious why due diligence is now bad, when that is what Cal and Steve have been screaming about.

    Thanks for sharing.

    The blog framing of this project is looking more and more like the children’s movie Chicken Little with every post.

    AGAIN, engage with the Board to find workable solutions.

    This Board is nothing like the previous Board that locked residents out of meetings.

    Use your knowledge to make our community better not try to break it apart.

  2. Call me a callous cynic, but I can’t shake this lingering hint of doubt, that there is a line of these surrounding Red Tail homeowners, outside Park Ridge or Evanston Country Clubs, writing a check for the $300 K-$500 K Membership fees to enjoy the Country Club lifestyle.

    When these Country Club wannabes, can just get Lakewood Taxpayers to pay for the lifestyle, under the guise of community improvement.

  3. Dictator Funk is pretty funky.

    Look at his expense accounts.

    What’s $400 to township officials of Illinois?

    The township needs to be disbanded.

  4. You will perhaps remember I was first up at the rainy night meeting that laid out the new clubhouse plans.

    “Will this ever cost me a dime?” was my quesiton.

    Until I am assured it will not, I shall continue pointing out that the current Board members are able to repeat the same mistake of putting us homeowners on the hook if they issue Alternative Revenue Bonds or Debt Certificates.

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