Schaumburg Succumbs to a Property Tax

It is with sadness that we all recently learned of The Village of Schaumburg’s decision to levy a property tax to meet the current budgetary shortfall. Schaumburg as not had a property tax since its formation in 1956. My family moved to Schaumburg in the early sixties and this is where I grew up. I still consider Schaumburg my hometown. Skokie is now the only major suburban Chicago community that does not levy a property tax.

 Village leaders say they had to implement this tax in large part because of a significant decline in retail revenues during this great recession. You see Schaumburg is considered the Retail Mecca of the Midwest. Woodfield Mall, one of the largest malls in North America, anchors its beautiful skyline. Rolling out from the mall are numerous shopping centers (that include big box retailers), car dealers, furniture retailers (IKEA comes to mind), and restaurants.
With a projected $17.6 million General Fund deficit, Schaumburg has decided to levy a tax of 8.1% of the 2009 property tax bill. The Village manager and his staff recommended the property tax levy to the full Village board. There are other ways for Schaumburg to get out of its budget quandary, some of which were ruled out because market conditions are not favorable. That is the arrogance of government.

 First, the Village should sell off the Convention Center and Hotel. Some consultant recommended that they build the Convention Center and that it would pay for itself. Baloney. The private sector does a much better job than any governmental entity at running hotel businesses. Government should not be involved in enterprise.

 Second, the Village should sell off the Schaumburg Flyers baseball stadium. Minor league baseball is much more profitable than the majors. Fans enjoy the natural play of the sport and any team ownership worth their salt is able to increase their fan base and profitability. Sell it to the baseball team owners, perhaps on a long-term contract. Ownership of a baseball stadium is not the role of government.

 Third, re-evaluate the village’s master plan and zoning laws around the Woodfield Mall area. The village should allow for high-rise residential development. This can provide a base of retail consumers for that area. The net effect of this would be greater support of the existing businesses and attraction of new business. In turn, tax revenues will increase. While the housing market is not yet fully recovered, in time it will improve. Demographic population changes will fuel the increase in popularity of condominium dwellings.

 Fourth, join the other five Northwest Suburban townships in forming a new county (Lincoln or Reagan) thereby telling Crook County to go stuff it. Cook County and its daddy, Chicago, are the most corrupt units of government in the State of Illinois. Its fair time that the municipal leaders of the Northwest Suburban region wake up and sever all ties to this unit of government. Not only has Crook county levied a large retail tax (part of which was recently rolled back), but its method of assessing commercial property makes these property taxes a huge burden on businesses in the Northwest Suburban region.

 Schaumburg can survive without a village property tax by taking the steps mentioned above. The community has a lot to offer. It has a solid library district, a strong park district, and quality schools, which are a part of elementary school district 54 and high school district 211. These government entities survive just fine with their tax revenue. Schaumburg should be able to do the same.

 A property tax levy will only hasten the departure of businesses in Schaumburg to more tax advantaged areas outside of Crook County. The Village should concentrate on providing basic services and not try to build a real estate fiefdom.

Chicago Loses Olympic Bid

Chicago did not even make it to the medal round in its bid to win the 2016 Summer Olympic games.

Much has been said and written over Chicago's failure to win the bid. Here in Chicago we were caught flat footed when tossed in the first round of voting. Rio de Janiero, Brazil had a more impassioned and better bid. They took the gold home.

Could Chicago have won the bid? Yes. With a much more impassioned and targeted plea to the International Olympic Committee (IOC) meeting in Copenhagen, Denmark. Was it President Obama's fault as many of the talking heads blame? No. He gave a nice talk pitching Chicago on behalf of the United States. I disagree with the boneheads that argue he should not have made the trip, citing he had more important things to do. Hey folks, the President doesn't sit in coach twiddling his thumbs waiting to touch down. No, he is working the phones, meeting with key staff, and conducting the business of the USA.

First Lady, Michelle Obama, gave the most impassioned plea and knocked the ball out of the park. In the process, saving Chicago's overall bid presentation. If it weren't for her, Chicago would not have even got the 18 votes in the first round. Mayor Daley gave a boring Chicago-centric speech. The type of parochial effort you would hear by a Chicago ward boss.

Did they play a great game? NO.

If the Chicago 2016 committee wanted to give 110% effort (a type of effort required to win the gold in the games) they would have targeted their appeal to the IOC members. You see, 42 voting members of the IOC have participated in the games, many of which have won medals. The Chicago presentation should have made with these members in mind. A little less feeding of political egos and a lot more Olympic athletes making presentations. The athlete presentations should have included US and non-US members of past Olympic teams. The ultimate goal being how Chicago would best benefit the Olympic movement. Having more focus on the International sporting events that the Chicago Metropolitan area has successfully hosted would have greatly aided the overall presentation. All of this would have sealed the deal.

I am not sure Rio is ready. It has far more problems to solve before 2016. Hopefully they can get them resolved before the games begin. In the end, it was Rio that played a much better game.