My last post looks rather foolish now that I’ve read the subsequent coverage surrounding the issue of former Elgin councilman Mike Powers’s resignation. I wasn’t able to follow the news closely this month so I missed the revealing memos and the disclosure of the condo problem published in the Courier News. I applaud the Courier for investigating the story. And it is a curiosity right now that this isn’t big enough news for the Chicago Tribune or the Daily Herald unless they are preparing large stories that will reflect even more through investigation. Let’s hope so. Of course with my recent blogging record, I may simply be oblivious to stories that have already been published. If so please let me know in the comments section.

Nobody wants to discuss this unpleasant issue. I think we’re all saddened by the circumstances of Mr. Powers’s departure from the Elgin city council, but there are issues that remain unresolved and questions that are unanswered.

Mr. Powers violated the basic rules for an elected official or public servant. There’s no question about that. In isolation, one of his lapses could be seen to be an honest mistake, but here we have something that looks far more sinister. But I’m not going to beat the drum on Mike Powers. You can stick a fork in him because he’s done.

I’m more concerned about the Bandits, and their relationship with the City of Elgin and their continued funding. The Bandits owners certainly had an inkling of what would be appropriate or legal and what would not. They–but not Mike Powers–notified the city that Mr. Powers had proposed a business relationship. According to the memo circulated by Elgin corporation counsel William Cogley:

On April 4, 2008, Bill Sokolis, one of the co-owners of the Chicago Bandits, advised (Assistant City Manager) Sean Stegall that Mike Powers was proposing to do certain marketing work on behalf of the Bandits. Mr. Sokolis further advised Mr. Stegall that the Bandits were arranging for an initial $3,000 payment to Mr. Powers for such marketing services.

Mr. Stegall, the memo continues, immediately told Mr. Sokolis that “he believed such an arrangement would be prohibited.” After consulting with the corporation counsel, On April 10th, Mr. Stegall again notified Mr. Sokolis that a business relationship was prohibited. You wonder why then was the payment ever made?

I couldn’t determine from the newspaper articles the exact date of the payment but it does sound from the memo that it was definitely after April 4th, because the city’s memo says at that point that according to Mr. Sokolis, they were still arranging for an initial payment.

That means the Bandits went ahead and paid Mr. Powers despite the warning from city officials.

The Chicago Bandits furthermore could not have been oblivious to the fact that Mr. Powers voted with the council majority on May 14th to provide the softball team with more than $700,000 in subsidies as a prelude to an even bigger stadium deal.

All this is bad enough, but then we find out that that same month, Mr. Sokolis, through a company he owns, B&M Management, bought a condo in the shoe factory lofts for $202,500. Immediately after the purchase closed, Mike Powers moved in.

When questioned by the Courier, he said: “I’m just buying a property from people who buy and sell properties on a daily basis,” he said. “I don’t see it as unusual. That’s the business they’re in.” He also said he’s planning on buying the house in a couple of weeks for $202,500.

Of course, if it’s normal for Mr. Sokolis to buy houses for $202,500 and sell them a few months later for $202,500, he has an interesting business model indeed. Just the transaction costs ensures that he loses thousands of dollars, not to mention time wasted. The Courier could not determine how much rent, if any, Mr. Powers has paid to Mr. Sokolis.

Mike Powers was no stranger to Bill Sokolis when he moved into Mr. Sokolis’s house as his tenant. Mr. Sokolis knew very well from his conversation with city officials in early April that he could not have a business relationship with Mr. Powers. So what was the idea behind buying a condo and renting it out to Mr. Powers?

It could be entirely innocent, and we can hope so. But there is a definite appearance problem, and I’m guessing the State’s Attorney or United States Attorney will be taking a look at this. I think they will want to know whether this rent-to-own deal was conceived as a (really stupid) way to sidestep obvious prohibitions and obscure wrongdoing.

The Chicago Bandits are clearly implicated in this mess. They’ve brought a scandal to our community. They’ve brought dishonor and disgrace to the city council. They can’t say they didn’t know what the rules were. They were clearly informed by Elgin city officials on April 4th and again on April 10th, before they did any of this. It’s clear that this is not an organization that belongs in Elgin.

As long as they remain here, they and their supporters on the council will remain under a cloud of suspicion. I can’t see how the city can in good conscience continue to provide funding for the Chicago Bandits.

See also:

• Bandits Subsidy Doubles
• Making Out Like Bandits
• Lesson for Obama
• Pro Softball in Elgin–Why?
• Sympathy for the Devil
• Herald Endorses Powers
• Wine Comes to Downtown Elgin

Filed under: citycouncil, politics.
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