Kane County Regional Educational Superintendent Clem Mejia has spoken out on the multi-million dollar blunder and mistakes by East Aurora School District 131 officials regarding the 25 acres of prime commercial property the district sold to a developer who turned around and sold it to the City of Aurora for more than twice the cost after offering it initially to Wal-Mart.The land is now being planned for the new police station for the City of Aurora (with massive inflated cost estimates, part of Aurora Mayor Tom Weisner's irresponsible wild spending spree and tax increases).
According to Mejia, the property "was sold for probably half of what it is worth."
But, how could this have happened? One excuse, according to district officials, was they did not realize the Indian Trail extension was being planned when they sold the land in August 2004.
Huh? The extension for Indian Trail at Farnsworth has been talked about for YEARS and has been on the horizon to connect since Stonebridge was developed in the 1990's. In addition, the Aurora City Council voted 12-0 to annex property for construction in May 2004.
If you believe D131 officials, the extension wasn't really planned. So, given the collusion between the school district and city officials we saw recently on the scam to kill the drive-in theater to help greedy developer Bigelow Homes and take 60 acres away from commercial development, we thought we would check what the City of Aurora said about whether the extension was planned overnight:
"Construction commenced on the LONG-PLANNED extension of Indian Trail Road..."
-Development Fact Sheet, 2003-2004 Annual Report
Aurora Economic Development Commission
We think any district official who is a party to such a claim should be TERMINATED for complete incomptency (we are referring to decison-makers).
But wait...it gets WORSE.
Normally, property transactions involve certified licensed appraisals. Did then Superintendent Michael Radokovich, his financial chief Jay Augustine or administrative honcho James Vaughan make sure the interests of district taxpayers were protected with a current appraisal? NO.
The last appraisal was apparently in 2001 or 2002. Appraisals are snapshots at a given time and can change rapidly. OpenlineBlog.com has learned district officials failed in their fidicuary responsibility and instead of getting an appraisal, they claim they got an estimated value from some commercial realtors instead. Realtors like Dolan & Murphy and Stephens Commercial. Neither are licensed commercial real estate appraisers.
According to Mejia "It's pretty basic that you always get a current appraisal before you sell property..."
Bruce Schubert, part of Ward One Neighbors for Community Excellence, spoke up at Monday's East Aurora School Board meeting and asked questions to the school board about the Indian Trail transaction and also the contradictions of the school district's actions regarding the drive-in theater and Bigelow development. The district claimed it did not want residential units for the Indian Trail property, but somehow looked the other way for Bigelow Homes.
School board member Bob McCue reportedly said the district would have had problems "in the paper" (fishwrap) if it had raised an issue about the transaction that resulted in the City of Aurora paying $5.7 million for the same property the district sold for $2.4 million. Apparently Mr. McCue forgets his job as a school board member is not to play "nice" with the City of Aurora.
"Someone needs to be held accountable...this was taxpayer property and over $3.1 million of profit was lost." - Bruce Schubert
We totally agree and commend Mr. Schubert for pursuing accountability of the school district's incompetency and lame excuses on this issue.
The only alternate view is to believe the property is worth only $2.4 million, which then means the City of Aurora overpaid and fleeced its taxpayers. Either way, taxpayers lose even if this is a good location for a police station.
Our own investigation has learned there may be potential legal consequences for these blunders, including seeking to void one of the two transactions involving the land. We encourage Kane County State's Attorney John Barsanti and Illinois Attorney General Lisa Madigan to look carefully into this and the drive-in situation, both involving the City of Aurora and school district.
Former Superintendent Radokovich is long gone and could not be reached for comment, but we think financial chief Jay Augustine, the same person who wrote a letter supporting a fraudulent strip center scam for the drive-in theater property to benefit Weisner and Bigelow, should either come up with a fast explanation or a fast resignation.
35 comments:
By Justina Wang
Staff writer
AURORA — The Kane County regional superintendent of schools said he believes the East Aurora School District sold taxpayer property to a private developer two years ago for millions less than it was worth.
The Northbrook-based Steven Nan Group Inc. paid $2.58 million in August 2004 for the district's 25-acre lot on Indian Trail west of Farnsworth Avenue, once intended as the site of a new school building. In April, city officials announced they purchased the same property from the developer for $5.7 million as land to build a new police station.
"(The Indian Trail property) was sold for probably about half of what it is worth," said Kane County Regional Superintendent Clem Mejia this week. "It's pretty basic that you always get a current appraisal before you sell property. It just sounds like the leadership of the district probably didn't do their homework and acted pretty quickly."
School officials said the last appraisal on the property was done in 2002, and the property was valued at $2.1 million.
In a letter to three East Side residents who had questioned the appraisal, the School District contends there was little interest from buyers and that the lot was worth millions less than it is today because construction on the Indian Trail extension had not begun at the time.
The City Council long had looked at proposals for an Indian Trail extension, which would bring in new developers and presumably raise property values dramatically in the area. Council members voted unanimously in May 2004 to annex land for the construction, but school officials said they were still not confident the project would go through when they entered into a contract with the Nan Group three months later.
"We did not know what or even if plans for the Indian Trail extension were definite. Hindsight is 20/20," school officials said in a written response to Beacon News inquiries about the transaction.
Asked why the district did not wait to sell the property after construction on the extension began, officials responded: "Our goal was to sell the Indian Trail property for revenue. We owned the property for over 30 years."
Officials said the district also secured an additional $225,000 from the Nan Group earlier this year when developers asked to extend their contract because Wal-Mart had shown interest in the property.
An East Side resident, Bruce Schubert, said he and his Ward One Neighbors for Community Excellence group have not received sufficient answers from school officials and are concerned how the district will manage the 8.3 acres of land on Montgomery Road donated by Bigelow Homes this month or money the schools may see from a tax-hike referendum this fall.
"Someone needs to be held accountable," Schubert said. "This was taxpayer property, and over $3.1 million of profit was lost.
"... I think as taxpayers, we deserve an answer, especially now that they're coming to us saying they need more money. How are we supposed to have confidence that, if we give them more money, it will be managed any better than the Indian Trail property? I think we need reassurances here."
Mejia said nothing can be done now to correct the situation, but he plans on meeting with new East Aurora Superintendent Jerome Roberts to discuss "many, many issues."
"I think the positive thing is that (the district) has new leadership," Mejia said. "I hope they'll recognize they could have done a better job of being good stewards and gain back some of the trust of the community."
How on earth could the district say they didn't know about the Indian Trail extension that was about to be constructed??? If they are being honest, that's incompetence. If they are lying, that's completely lack of integrity. Either way, this mistake cost millions!
How could they not get an appraisal on vacant land? Millions of dollars at stake. Whoever was involved with this transaction should resign TODAY.
Contact Information:
Jerome Roberts
Distict 131 Superintednat
630.299.5561
jroberts@d131.org
Kane Regional Office of Education
Dr. Clem Mejia
630.232.5955
We can start be asking for the IMMEDIATE resignation of:
Mr. Jay Augustine Assistant Superintendent for Business
Mr. Dan Barerrio Board Member and Finance Chair
Didn't the Enron guys get convicted of fleecing shareholder money? Why shouldn't the same happen to the school district officials on these deals and the city officials on helping Bigelow at our expense?
Dr. Roberts and the school board need to fire Augustine and Vaughan, then sue them, Radokovich and ask a court to void the sale to the city.
John Barsanti
Kane County States Attorney
(630) 232-3500
I think he should ask for an injuction on anything further on both these disasters, on Indian Trail and the Drive-In property while these are investigated.
Jay Augustine wrote that letter to support the Bigelow scam because that's what Weisner and Vaughan wanted. All of them should be investigated by law enforcement.
Chief Powell needs to get busy on protecting this city from these people, too.
Had it not been for Mr. Schubert this issue would have been swepped right under the rug and noone would have know the wiser or done anyting about it.
This just proves that one person can make a difference. I know a person who knows the Schubert family and their child is not even school aged yet and this guy has been fighting for accountability ever since that walmart wanted to set up shop over there on indian trail road.
Can we get more leaders like this in our government who care about the people and not their own selfinterest and their crony buddies?
I will be calling both school officials and asking for resignations. Roberts had better act and act real soon on this one or we can just lump him in with the other incompetents within the district.
Visualize me with my jaw hanging wide open. Just unbelievable.
Funny how the Fishwrap wants to know who lost an earring, but does not want to know how 131 lost millions of dollars. BOYCOTT THE FISHWRAP. CANCEL YOUR SUBSCRIPTION AN GET THE HERALD! Can openline coordinate a "cancel the fishwrap' day so they get a big # of ceacellations all at once?
I would love to see Openline takeover the fishwrap! Either that or become mayor.
How does Dan Barrero explain allowing the district to sell the land at the same time he was working for the CITY OF AURORA???? Helloooo?
Dan is a decent guy, but this is terrible. With the bizarre stuff with Weisner-Bigelow, Dan should recuse himself from anything associated with Bigelow since he works for Weisner.
If whoever was involved in the screw-ups at the school district doesn't resign by today, Dr. Roberts better have the courage to fire them.
I'm absolutely stunned to hear they actually didn't get an appraisal and they claim they didn't realize the Indian Trail extension was going through. That's UN-believable!
Just for the sake of discussion, let's say the district is correct and the Indian Trail site was only worth $2.5 million even with knowledge of the road extension. That means the city overpaid and cheated us.
My problem is that any way you look at it, taxpayers are left in the cold because of diregard for our money.
GO get up Openline. You guys or gals are amazing.
Please keep doing what you are doing. This Crap has got to stop.
These bozo's think they are above the law. I can't wait for the hammer of justice to come slamming down on them.
They all should be arrested, thrown in jail forced to do hard labor and have all of their assets given back to the taxpayers as a penalty for this crimes.
And they sadi it was for the children? Whose Theirs?
It sure ain't helping mine to have to pay higher taxes to bail out their illegal back door deals.
We all need to call, write and email Barsanti, madigan and everyone we can to get these crooks off the street and behind bars for this crap.
If you (the public)think this is bad this is only a small amount of "poor decision making" on the part of the School District. Truth be told they have been screwing with the tax payers money for years!!!! Try looking deeper into the misappropriation of funds.... the lying, cheating and "under the table" deals have to stop!!!!!!!! Does anyone wonder why Radokovich disappeared?!?
And once again, where is Linda Chapa-Lavia on all this?
The one who is always "reaching out", giving "awards", etc.
She is a graduate and always "caring" about everyone there.
We want your opinion Linda, hold a press conference to let us know.
What do you think?
Where is the District's voice at on this? Where is the oh-so-eloquent Clayton Muhammad at on this issue? He has no problem getting press at other times.
Mr. Muhammad...Where are you? I hope he doesn't get too wrapped up with all of the cronies!
The bottom line is the district screwed up big-time on both the Indian Trail property and drive-in theater situation. They need to hold people accountable. They need to STOP the nonsense and scam with the Bigelow donation and tell them to shove it up Weisner's $%%.
I just got home from work and it's too late to call up the district office, but I intend to do so on Monday.
No appraisal? Didn't take into account the Indian Trail extension?
Whatever the excuses, the district is getting cheated out of $3.1 million. And if that's not the case, the city is being cheated out of $3.1 million!
There should be legal action.
With all the discussion about real estate transactions - What about Denny Hastert's recent land deal that gave him a reported $2,000,000 profit. It raises a lot of questions. When the Clintons were involved in the Whitewater land deal it resulted in special prosecutors. Who is digging into this deal. Other policical powerhouses in Kendall County were involved in the deal. Is Openline looking into this?
Hastert's deal had nothing to do with the public's funds or interests or involving campaign funds.
Openline DID look into it if you read the blog several days ago.
Lets not divert from the real issue. The East Aurora School District and their negligence and complete disrespect of their fiduciary duties to the Aurora taxpayers
If district officials actually disregarded the Indian Trail extension and didn't have a current appraisal, then either those officials should be fired AND sued for $3.1 million. That will also send shockwaves to people that you can't play games with taxpayer money.
6/24 7:24Am
Gerry, Don't you have better things to do at 7:24am?
Oh yeah! I forgot Wiesner is paying you to monitor this blog and to make wacko posts!
Folks The answer is simple show up in mass Monday night and give them hell! Not just about this, but about the whole Bigelow development, the new biglelow development, the hi-lite fiasco and the lack of fiscal responsibility they contimue to display over and over.
I really like the SSA idea this blog brought up it is a win win for everyone! Someone should put this idea officially on the agenda and give them hell!
If we do these few things in mass these smucks will be peeing in their pants (literally! they will have to change their Depends.)
We need volume, not just noise.
We can take these bozo's out through sheer embarasment of their own actions.
All we need to do is present the facts and the rest will take care of itself.
Anyone got the numbers for the media they need to be called and heck we should have rally just like for the Hi-Lite.
Openline blog it is probably to late for a rally for tomorrow nights meeting but we could do it for the next meeting.
We can change Aurora for the better. Let's keep the heat on these pay to play political clowns.
I am not sure, but I think the next School Board meeting is July 5th. I may be wrong, but will check in the morning.
Seems intersting
1)Big push to sell Indian Trail Land BEFORE extension opens
2)Dolan and Murphy (real estate agent for District) apparently does not advise district to get an up to date appraisal
3)Dan Barreiro who is district boards finance guy and Weisners Chief of staff (at the time) does not direct the Board in the proper direction and encourages the Board otherwise
4)Dolan and Murphy will years of real estate experience has been sheltered and hides from site ever since this story was reported months ago.
Maybe one of the Dolan brothers knows Steven Nan, the developer and made a deal over a drink one day. Just an idea.
Where is the Beacon's "Our View" on this one? Maybe it is to difficult of an issue for them to wrap their hands around.
COME ONE BEACON WAKE UP AND STAND FOR SOMETHING>>>>>>>>>>>>
The regional Superintendant came out against the East Schools, what do we need George Bush to say they screwed up. Where is Jerome Roberts???? Is he hiding in a closet wishing this would go away.
I am calling Monday to ask for action and I hope others do the same.
If anyone gets a hold of Dr. Roberts, please say something. I want to see Jay Augustine's resignation if he's responsible for this debacle.
Not only Augustine, but Dan Barrerio who is the Finance guy on the School Board.
It helps when others call too, so give the district a call and let them know what happened here is bogus.
Someone should check out why the district preschool didn't open on time. I heard someone didn't get the propr permits and it was delayed for months! My child was supposed to go there and had to wait. I also heard the district had to redo work contractors had done because of the permit situations.
Anyone hear about the Investigation of the former Superintendant of East Aurora? Apparently he was utilizing District Equipment or should I say Public Equipment to landscape his home in Marywood. It also appears that the District provided the Labor for this work as well as material and machinery. that would be the same house that the Superintendant sold to one of his Board members prior to leaving the Country. Hmmmm interesting isn't it?
I call this school board "the school board from hell"--ever since they (and the serial bully superintendent) disregarded the clear wishes of hundreds of citizens, and got rid of an outstanding high school band director. And they never even respected the taxpayers with an explanation!
Here's just one more example of why we need to vote these folks out of office at the next opportunity.
While you are investigating mismanagement, try looking into the extra funds spent to "improve" the entrance of the high school. Funds that were suppose to be spent on the new "freshman" house, just like the freshman centers that Nequia and Waubonsee closed because they weren't effective. That would mean that as this new building is being built we will hear there isn't enough funds to finish it and we need a referendum to finish. THEN a referendum to put desks, books, TEACHERS, etc into the rooms. All the while classes are being taught without books or the sociiology class has books printed in 1993. There should be some really pertinent information in there!
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