Thursday, March 19, 2009

Money for the taking

Posted by Mick Dumke on 03.19.09 at 02:55 PM

Many of us found it absurd that aldermen, even in Chicago, would thwart a simple attempt to make public records about taxpayer money more accessible online. 

But it turns out there may be a good reason for it: the records might not actually exist.

In this week's edition of the Reader, Ben Joravsky and I report on how little evidence the city can come up with to show that it was monitoring the terms of its $10 million subsidy deal with Republic Windows and Doors from 1996 to 2006. Specifically, we sent in a Freedom of Information Act request asking the city for "copies of all reports, audits, and other documentation produced by city of Chicago officials from monitoring compliance" of the agreement with Republic. What we got back was a mere five pages--"certificates" of staffing levels reported by the company for just half the years of the agreement.

Then, as we wrote in the story, "We called the community development department and asked why Republic hadn't prepared job certificates every year, whether the city had done anything about it, whether city officials had visited the factory and checked the reported job data, and why had taken so long to round up the materials for us.... We were told it would take a few days to get answers. We're still waiting."

Not anymore. On Wednesday afternoon, a day after our print deadline, we received answers via e-mail from community development spokeswoman Molly Sullivan.

She confirmed that the five pages we’d received through our FOIA request were the only records the department had on Republic’s compliance with its TIF agreement. She couldn’t say why the city didn’t have annual reports for more than half the years the company was supposed to submit them. “They were required [to submit them] but our files only contain these documents that we provided to you,” she wrote.

The department has no evidence that city officials had ever visited Republic to check or monitor the information it did send in, she said. “It is reasonable to assume this did take place but, again, we have no records to provide.”

Sullivan added that the department did have a copy of a 2006 report showing that Republic had 750 employees, well above the 549 minimum required by the TIF agreement. She said the report had been prepared by the LEED Council, a nonprofit economic development agency that the city had hired to be its “eyes and ears” on Goose Island, where Republic had been located. But that report was not included in the materials the city gave us in response to our request, even though it should have been under the state FOIA.

And why had it taken three weeks--twice what's allowed under the FOIA--for the department to respond to our request? "Due to the department mergers (housing and planning) and staff turnover and departure, it took some time to identify the current staff that would be able to locate the files," Sullivan wrote. 

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Chicago should not feel too bad, Republic bailed out of the plant in Iowa shortly after they bailed out of Chicago with all that TIF money. Where is Mayor Daleys outrage?

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Posted by Oversight on 03/19/2009 at 5:16 PM

thanks for the post! "...the LEED Council, a nonprofit economic development agency that the city had hired to be its “eyes and ears” on Goose Island ..." wow, did LEED confirm this? so LEED's "eyes & ears" contract is online on the Procurement Dept. website, right? Daley privatized TIF oversight, then blamed the contractor? that's stunning! no, sorry, the TIF redevelopment agreements clearly specify that the developer provide weekly, quarterly, and annual reports to the CITY Department of Planning, and a govt agency in Illinois can't hot potato documents in its possession as a FOIA dodge

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Posted by Hugh on 03/19/2009 at 6:42 PM

You can find out a lot of things by reading; for example, from the Republic Windows redevelopment agreement: Section 17. Notice: Unless otherwise specified, any notice, demand or request required hereunder shall be given in writing at the addresses set forth below, by any of the following means; (a) personal service; (b) telecopy or facsimile; (c) overnight courier; or (d) registered or certified mail, return receipt requested. If To The City: City of Chicago Department of Planning and Development Room 1000 121 North LaSalle Street Chicago, Illinois 60602 Attention: Commissioner With Copies To: City Of Chicago Department of Law Finance and Economic Development Division Room 511 121 North LaSafle Street Chicago, Illinois 60602 http://www.chicityclerk.com/journals/1996/sept11_1996/sept11_1996_Finance.pdf See PDF page 99 Journal page 27903

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Posted by Hugh on 03/19/2009 at 6:50 PM

Maybe TIF geeks should plan a loud demo outside City Hall to coincide with the IOC committee visit. What to we want? TIF docs online! When do we want it? NOW!

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Posted by Hugh on 03/19/2009 at 6:53 PM

The leadership in this city puts drunked sailors to shame. But hey, no biggie -- it's just the schmoe taxpayers' money they're burning through.

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Posted by Mike on 03/20/2009 at 8:20 AM

Ridiculous. The scary part? The brain-dead voters of Chicago don't care.

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Posted by David on 03/21/2009 at 12:04 AM

The big media outlets are still catching up on this topic, if they dare. Great job on taking time to report on this. Kudos gents!

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Posted by Kudos to reporters on 03/22/2009 at 12:24 PM

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Posted by Ann on 03/26/2009 at 2:45 AM
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