Homewood Mayor: We Need to Improve Intergovernmental Communication
Representatives from Homewood’s other taxing bodies appeared at the Dec. 11 meeting to ask the board to table a vote to spend nearly $1 million in economic development so a joint meeting could be held to discuss the decision.
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Homewood trustees passed an agreement to provide $900,000 in TIF money for the development of a new downtown hotel, but not without considerable opposition from the village’s other taxing bodies.
Their chief complaint? The village failed to give them a fair warning of such a large impending financial decision.
READ: Planned Downtown Hotel Receives $900,000 from Village
“Our school district was taken aback by the sudden emergence of the proposed financial assistance package for the downtown hotel project …” Shelly Marks, School District 153 Board President, said.
In response, Marks presented the board with a list of questions compiled from her district, the H-F Park District, the Homewood Public Library and H-F High School District 233. She requested the board table the vote until they can address those questions and some of the other issues that have negatively impacted school district funding in the past—such as tax rate objections and non-for-profit conversions.
“Working together, we stand a better chance of protecting our mutual interests and safeguarding our taxpayers investment,” Marks said. “We want to make sure that what you consider doing is really tight so that we’re all benefitting.”
Homewood Public Library Trustee Greg Weiss also requested the vote be tabled.
“One of the things that I’ve learned as a trustee is the notion of due diligence,” Weiss said. “Before such important an decision is made, at the very least, all parties involved should sit down and discuss this prior to a vote, not after—begrudgingly and upset.”
Trustee Anne Colton agreed with both Marks and Weiss. The current lack of intergovernmental communication is a big issue that could have easily been resolved with little more than an early-notice courtesy email, she said. Still, she says she is obligated to consider the business end of the decision.
“At the end of the day … the money is controlled by the village,” Colton said. “I don’t want to add another layer of complexity—we need to stay business friendly.
Trustee Jay Heiferman also said he understands the concerns from the other taxing bodies. His opinion is that they can and will be addressed once the TIF incentive agreement is drafted.
“But least get something on the table so we have something to discuss,” Heiferman said.
Representatives from the developers and the village both addressed some of the submitted questions, but Marks never got her wish. The vote passed 4-1, with Trustee Ray Robertson voting, “no.” Trustee Tom Kataras was absent.
After the meeting, Marks’ face revealed disappointment but not defeat.
“I would have really enjoyed an active discussion,” Marks said. “I think, often, when we get many people in a room with a common interest to keep Homewood strong and viable, we can work together towards a really solid agreement that enhances business development and protects all of the governing bodies.”
At the end of the meeting, Mayor Richard Hofeld and Marks embraced. He too, said he intends to promote better intergovernmental communication and keep the other bodies abreast of their continuing decision-making.
Interior renovations for “La Banque” Hotel are scheduled to begin around the end of January. Developer Dr. Claude Gendreau says he hopes to have the 18-room hotel, located at 2034 Ridge Road, operational by the end of summer 2013.
QWERTY
8:14 am on Friday, December 14, 2012
Hofeld doesn't give one rats patootie about what anyone else wants other than things that somehow benefit him. He doesn't care what the people of Homewood want, what the schools needs are, etc. I can paraphrase something he said very flippantly in a conversation with me "Of course we can [raise the taxes]". Just because you can doesn't mean you should. Our property taxes are outrageous, and to the point that it's driving people out of the community because they can't afford it. I guess good ole Richy would rather have a bunch of vacant homes not collecting taxes than homes occupied. He has NO concern that we are in a recession and that raising taxes is a huge financial burden on people that have either lost their income, had their income reduced, or other financial hardships. If he did, then he would have not so flippantly said "we would do whatever we can to NOT raise taxes before passing the tax burden onto you" and then his actions would speak and he would do so.
Flintstone
8:17 am on Friday, December 14, 2012
Nothing new here! Over the years there has always been a lack of communication between the Homewood city council and the other impacted governmental bodies. Promises to do better are made, but forgotten as soon as someone with a wild hair presents another idea on how the rest of us can subsidize their dreams.
WA Mama
8:34 am on Friday, December 14, 2012
How long has Hofeld been in office? 72 years? You'd think he'd have worked out that whole "promote better intergovernmental communication and keep the other bodies abreast of their continuing decision-making" thing a while ago. And I'm tired of Ann Colton agreeing with the masses and then voting against them. Every. Time. "At the end of the day … the money is controlled by the village,” is vastly offensive, since The Village is made up of citizens who have a right to have their needs and wants acted upon. What an incredibly arrogant thing to say, especially since The Village touts those very same taxing bodies as an advantage of living here.
Ernie Souchak
9:04 am on Friday, December 14, 2012
Where were "Homewood's other taxing bodies" before the La Banque issue came up??? Did they just suddenly wake up? Throw out a number like $900K and suddenly "they want theirs too". Get in line! Looks like we have a fine lilbrary, good schools (153), great hgh school (233) and the start of a good ghost town on Ridge from Dixie to Harwood. Open the hotel and see what it does for commerce there on Ridge.
Flintstone
9:42 am on Friday, December 14, 2012
Question is really two fold. When were the other bodies notified? Homewood has a history of having confidential discussions and then springing the decision on all other bodies with no discussion. The next question is what is in the best interest of Homewood and in the long term all the other taxing bodies. One can achieve the last while having a modicum of respect for the first.
Homewood Jim
10:17 am on Friday, December 14, 2012
The "hotel project" determined that a need exists, and "they" moved forward in an attempt to address that need. If the library, District 153, or District 233 determined they had a "need", why weren't THEY coming before the powers-that-be to pitch it? Seems like they only realized they may have a need when they figured out there is FREE MONEY available. The schools get enough of my tax money as it is. And the library gets a good share too.
Homewood local
10:53 am on Friday, December 14, 2012
The other taxing bodies are not looking to get TIF dollars from the Village. The dollars in the TIF accounts were "reallocated away from" these same taxing bodies in the first place. Since it was really their money in the first place, they have a responsibility to be sure the it is spent correctly. Anyone at the meeting heard the taxing bodies who spoke say they support a thriving Homewood business community. What they resent is the Village using last minute tactics to deny them their rightful voice at key points in the discussion. If the Village made all the right decisions all the time, every storefront would be full and businesses would be lining up for real estate in Homewood. That is not the case. Maybe more voices are just what is needed.
Ryan Fitzpatrick
1:27 pm on Friday, December 14, 2012
A few things should be clarified here. Part of the issue is that the other taxing bodies weren't notified at all. Instead, they read about it in our Monday agenda preview on Patch. That's why they "sprung" this on the board Tuesday night. Shelly Marks said she would have loved to prepare more thought out questions far earlier in advance to discuss. As for the money, it's not a free-for-all situation. The schools, library and park district all wanted to address historical examples of times where things like tax appeals wound up negatively impacting their funding.
Blackhawks Fan
8:11 am on Saturday, December 15, 2012
This is politics as usual in Homewood. All of our taxing bodies think they know what is best for Homewood and really do not care what the tax payers think. Our school districts are a perfect example and generally do the same as the village; that is hold their little meetings to get input and then do whatever they want anyway.
Homewood local ~ I beg to differ about your statement, “The dollars in the TIF accounts were "reallocated away from" these same taxing bodies in the first place. Since it was really their money in the first place, they have a responsibility to be sure the it is spent correctly.” All of this money that is allocated is the taxpayers not other taxing bodies and we the people should have a say in everything that is done with our money.
Bob Levy
10:11 am on Friday, December 14, 2012
$5,000,000+$900,000 = rounded $6mil, 18 rooms @ 100% occupancy @ 360 days/year simple math at $100/night:
18 #rooms
360 days
6480 room days/year
$100 rate/day
$648,000 Gross/year
$5,900,000.00 "cost"
9.104938272 Payback in years
Of course my numbers are not believable (100%occupancy, $100/night)
So the payback without "costs" would be more like 20 years.
I am NOT an accountant but common sense tells me this is NOT an investment. Therefore there must be an alternative objective.
Am I missing something? 18 rooms? What would the village get for $900,000?
Why would the owner want to invest $5,000,000?
Look at the I80-Halsted hotel situation for why this makes no sense.
And that location has built in truckers and travelers potential?
Michael
1:53 pm on Friday, December 14, 2012
Bob, you're right. You're not an accountant. Nor are you a businessman, apparently. So, leave the hypothetical business plan of yours at home. There are obviously benefits to the parties involved that are surely detailed in the owner's business plan. There was mention of other income-generating retail and restaurant space in the hotel. There will be sales tax revenue and income tax revenue the town will receive as a result of this business. All that coupled with the benefit the owner will surely realize by having a hotel to which he can send his wedding guests from Ravisloe, this likely has much potential for not only the town and the hotel, but his country club wedding business as well.
Juvenal
2:09 pm on Friday, December 14, 2012
I have literally never seen an 18 room hotel succeed anywhere for any length of time unless it was a bed & breakfast or small inn in a desirable tourist area -- and even then the Owners usually working on premises to make the financials work. I'd love for there to be such an establishment in the area, but unless Dr. Gendreau is going to be baking cookies and making beds this is a guaranteed money losing proposition. Maybe the good Doctor needs some tax losses or something, or will just pocket the incentives and declare bankruptcy in a couple of years?
Michael
2:17 pm on Friday, December 14, 2012
^ Our local expert on 18-room hotels, everyone!
It's truly an honor and a priviledge to be graced with your hospitality industry aptitude.
Juvenal Wannabe
3:30 pm on Friday, December 14, 2012
If the Class 8 tax classification is approved by Cook County it will significantly reduce the property taxes that will be assessed and collected from property. Also, there has only been mention of a restaurant, no retail space was mentioned.
Juvenal
10:39 pm on Friday, December 14, 2012
Don't need to be a weatherman to know which way the wind blows. If anyone knows of a thriving 18 room hotel any any inner- ring rust belt suburbs, please let me know -- and "nap rate" specials don't count. You know who else knows nothing about the hotel business? Dr Gendreau. But I'm sure he has lots of advisers eager to help him spend his money...
The ORIGINAL Mike B
1:09 pm on Tuesday, February 5, 2013
Change of heart-I am dead set against this development. After my own investigation, I am convinced Homewood cannot and will not support such an endeavor, and most of the Ravisloe wedding guests are incredibly cheap and will not stay in anything above the Halsted Budget Inn (jewish people are not known as spendthrifts)
Flintstone
10:23 am on Friday, December 14, 2012
Homewood Jim, Just a suggestion you may want to learn a little bit about the issue before you attempt to enter the discussion. There is NO free money ot the other bodies, but rather a cost.
Juvenal Wannabe
3:34 pm on Friday, December 14, 2012
There is information online about how TIFs are intended function. A quick Google search of "Illinois TIFs" brings up several resources.
Homewood local
10:44 am on Friday, December 14, 2012
At the beginning of the day, the tax $$$ in TIF funds were siphoned away from the other taxing bodies (schools, library, parks...), so those taxing bodies have an imperative to be a part of the discussion as to how those dollars are spent.
While one might applaud Trustee Robertson for his "no" vote, he also stated that he didn't see any problem with how this was communicated--"this is how we've always done it". Actually, that IS the problem.
Regarding TIFs, the Village does everything in their power to deny the other taxing bodies their rightful voice in the formulation of TIFs and the allocation of TIF funds, until the last minute so they can succeed in railroading them past any potential opposition. They exhibit arrogance--we know better than you, so we won't allow much of a chance to speak out against them. While this sort of bullying may be legal, it is not ethical and does a disservice to the other taxing bodies and to the constituencies they represent.
Several people spoke to the "aggressive use of TIFs". Aggressive use of TIFs doesn't mean denying major players involved their share in the conversation, nor does it mean the Village can bully everyone into agreeing with them all the time.
It's time to do a serious analysis of TIFs in Homewood. How many TIF projects failed? How many succeeded--bringing lasting commitments/business--commerce & jobs into our community? How many storefronts are empty or filled with pseudo businesses--just for looks?
cellihwd
12:20 pm on Friday, December 14, 2012
Okay, the developer wants $900,000 inTIF for a purported $5M investment. First I don't see how he coul spend that amount on refurbishing an existing building into n 18 room hotel. The math of spending over $327,000 per room simply doesn't make sense for a hotel in this market. Yes, there is a need for a good hotel in Homewood, but these plans have no connection to the reality of the situation.
Ryan Fitzpatrick
1:31 pm on Friday, December 14, 2012
There's also going to be a spa, restaurant, lounge, etc. He already spend three quarters of a million on the building purchase.
Blackhawks Fan
7:47 am on Saturday, December 15, 2012
I am curious. How did this hotel go from “35 to 40 guest rooms” in April of 2012 to 18 rooms in December 2012? I am also a bit curious as to why the other taxing bodies couldn’t figure out there would be a generous TIF attached to this project!!! I would think if they were proactive they would have known quite a bit more about this project way before the December meeting. JMHO!!!
Kathy
12:49 am on Tuesday, December 18, 2012
Property taxes too high? Wait til they shoot the teacher pensions back to the school districts !