Wednesday, October 13, 2004

Daley gives away money, in spite of "deficit"

Mayor Daley is working that little casino idea of his from all fronts. The latest, as the Chicago Tribune reports, the city has agreed to purchase Block 37 (the longtime empty lot across from Marshall Field's) from a developer for $35.2 million, then sell it to another developer, Mills, for $12.3 million. Obviously, this is going to cause the city to lose $23 million on the sale -- this during a time when we supposedly have a "$220 million budget deficit." But wait, it gets better. The reason the city is buying land and turning around and selling it for $23 million less? From the Tribune: "A variety of development restrictions and requirements imposed by the city since its purchase [by the developer] has reduced the appraised value to $13.2 million." But when you consider that Daley wants a casino built on that property, one that will generate $17.5 million a year in taxes alone, then I'd say the land is actually worth much, much more. The city's plans for it makes it more valuable. So I think Mills could have paid the $35.2 million, and it would have been a great deal. So my question is, does this $23 million, plus a $42.3 million giveaway that the city is giving to Mills, increase the $220 million deficit, or was it part of it all along. Hmmm.....


Post a Comment

<< Home