In the wake of the indictment of a major Tinley Park developer, village officials say they are taking a hard look at how they spend taxpayers’ money on development proposals.
The analysis began after federal charges were leveled in October against developer Michael Halikias, who is accused of fraud and perjury in connection with construction of Tinley’s Bristol Park subdivision.
Federal agents also subpoenaed village files regarding development of the World Music Theatre, another Halikias project.
Multimillion-dollar tax incentives were given to the music theater, as well as to the used-car dealership CarMax, a Halikias development under construction.
Trustees maintain they always have been careful when dealing with developers, especially when tax dollars were involved, but they acknowledge that more stringent measures may be needed.
Officials said the village staff is studying federal, state and county laws applying to tax incentives and procedures used by other towns.
Trustee Pat Rea said the village considered updating its incentive ordinance in May.
Actually doing so “received a positive jolt” when the indictments were handed down, Rea said.
“If there are any significant changes, it will be in the reporting and control of procedures required from developers on keeping us abreast of what he or she is doing,” Rea said. “We had them, but they could probably be more precisely focused.”
Trustee Greg Hannon, a political foe of Mayor Edward Zabrocki, said the planning process should weed out potential problems.
Financing a development with incentives “should be scrutinized more,” he said. “Maybe there should be some caveats in the agreements, like they’ve got to give the money back if they screw something up.
Tinley Park officials say they are anxious to prevent problems, especially with a proposal pending to build a convention center and hotel complex in a tax-increment financing district along Interstate Highway 80.
Although the village has been leaning toward builder Jerry Stillman of Mid-Continent Builders of Olympia Fields for the project, trustees say they have questions about his past financial problems.
According to Stillman, those financial problems caused him to sell off several properties: Holiday Inns in Crystal Lake and Matteson, a partially developed commercial park in Matteson and a Hampton Inn in Michigan.
But Stillman said he is proud to have weathered problems he encountered during the savings-and-loan crisis of the late 1980s. He said there is “not one doubt” he can quell officials’ fears.
“I never filed bankruptcy, and I always said I never will–just keep trying and work harder to get it resolved,” Stillman said. “I chose to work it out, and it is resolved.”
Stillman said he has built restaurants for national companies in several states, including Cracker Barrel, TGI Friday’s and McDonald’s. A Holiday Inn he built in Bolingbrook is expected to open in January, he said.
