In last weeks story we were going through how village president DiMaria self-styled himself as the face of the village and plastered his name on everything but a check to help pay for his political ambitions. Mr. DiMaria seems to have a bad case of alligator arms when it comes to picking up the check.
Last week’s story also recounted how Mr. DiMaria, Mr. Grear and the rest of the the Action Party took political contributions from those doing business with the village in violation of the ethics ordinance that they had all voted to accept and had pledged to honor.
We could easily see what the Action Party was getting out of the deal, but it could be rightfully questioned why the various businesses would ante up. Based on what we know, most likely they look at these political contributions as an investment with a great return.
Let us take, for example, the contributions from Heartland, (the parent of 8700 Waukegan LLC).
For a relatively small sum in contributions to the Action Party coffers, this developer will receive Six hundred thirty six thousand dollars in TIF money, (money that was originally earmarked to revitalize the Prairie View shopping center),
to underwrite the project which adds high-end rental apartments to an already saturated market. Looks like a smart investment on the developer’s part where their profit on the deal is apparently front-loaded with TIF money. According to Action Party president and village trustee, Billy Grear, in an article in the Pioneer Press on March 19, 2015; “It’s going to bring a new type of person into the village…”. We’re not quite sure what that means unless Mr. Grear is referring to folks gullible enough to think that this type of white-collar patronage is a good idea. It’s also interesting to consider who would want to spend $1,500 per month and up rent to live on one of the most heavily used major roads in the near north suburbs.
Let’s now take a look at the Dempster street property that is designated to be the new Moretti’s restaurant. This deal started out when the Action Party elected officials purchased the plot that used to house Maxwell’s and The Studio, two fairly popular Morton Grove eateries.
There were grandiose plans for a multi-use structure, but the original buyer was foreclosed on by the bank.
Through assistance by the village, the property was resold to Ted Mavrakis, a political contributor to mayor DiMaria for the purpose of building a Tilted Kilt restaurant.
Those plans fell through, and the village repurchased the parcel giving the mayor’s buddy a quick $500,000 profit while he retained ownership of approximately 30% of the site.
Subsequently, the Village (Action Party) Board makes a deal for the Village taxpayers to finance a Moretti’s Italian Restaurant and Gambling Café with a fifteen year, zero interest mortgage, (Moretti’s is a political donor to the Action Party).
In a Morton Grove Champion article dated February 4th, 2017 it says; “…village officials agreed to sell the property for $1.525 million and loan Ala Carte Entertainment $636,000 to cover eligible tax-increment-financing expenses, Village Administrator Ralph Czerwinski said in a report to the board.If the Moretti’s location stays open for 20 years, Morton Grove officials also will forgive the loan to cover TIF-eligible business development expenses, Czerwinski said. The mortgage the village agreed to with Moretti’s also would be forgiven if the business stays open for 15 years, he said.”
So, lets do some simple math. $500,000 profit to Action Party contributor Ted Mavrokis when the village repurchased to property; a minimum of $300,000 to remediate the environmental problems at the property; a mortgage of $1.525 million on the property which will be forgiven if the restaurant remains open for 15 years and a loan of $636,000 which will be forgiven if the restaurant stays open for 20 years… that comes out to a total of $2,961,000 dollars returned on their political contribution investment with the Action Party.
Village president DiMaria has always bragged about his experience in “high finance”, whether it was when he traded on the Chicago Merchantile Exchange in the past or now in his current career as a mortgage broker. He certainly has provided an astronomical return on investment for those who made political contributions to him and his Action Party… for Morton Grove taxpayers… not-so-much.