SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Is Lollapalooza stiffing the state?

Tuesday, Jan 31, 2012

* The always valuable Jim DeRogatis fills us in

Joining Commissioner Bridget Gainer’s initiative examining Lollapalooza’s exemption from the Cook County amusement tax, Illinois Rep. Sara Feigenholtz is pushing the state legislature to probe whether the three-day concert is paying its share of state sales taxes on everything sold in Grant Park.

Although several sources, including Gainer, have said that the massive music festival uses its partnership with the not-for-profit Parkways Foundation to avoid paying the 6.25-percent sales tax, this reporter has not been able to confirm how it receives an exemption. Feigenholtz said on Friday that she intends to get an answer, and to seriously question whether a waiver is warranted. […]

Illinois law states that to qualify for an exemption from the sales tax, “Your organization must be not-for-profit and organized and operated exclusively for charitable, religious, educational, or governmental purposes.” Lollapalooza, which is co-owned by politically well-connected Texas concert promoters C3 Presents and Hollywood talent agency William Morris Endeavor (run by Mayor Rahm Emmanuel’s brother, Ari) clearly is a for-profit venture.

Last year, the festival gave Parkways more than $2 million for park improvements. But its gross revenues were more than $21 million, and it did not pay the 5-percent city amusement tax, the 1.5-percent county amusement tax, or any fee to rent and close Grant Park for much of the summer.

Oy.

* Nobody seems to know how this happened or why. Background

Although Lollapalooza is very much a for-profit event, it partners to apply for all of its licenses with the non-profit Parkways Foundation, a favorite group of former Mayor Daley and his late wife, Maggie. A long-term sweetheart deal negotiated in part by the festival’s attorney and lobbyist, Daley nephew Mark Vanecko, exempts it from paying the 5 percent city amusement tax and the 1.5 percent county amusement tax, as well as the state sales tax levied on every other major event in Chicago—even though the municipal code clearly states that every big concert and sporting event must pay what’s owed unless 100 percent of its profits go to charity. […]

The loss in sales tax could be even more substantial, Gainer said, since local government has no idea what that cut of souvenir, food, and alcohol sales would even be. Parkways applies for the festival’s liquor license, but as this blog has reported, actual sales are handled by a corporation co-owned by Texas promoters C3 Presents and local bar owner Kevin Killerman, a client and friend of Vanecko.

* More

Mayor Rahm Emanuel has said he would ask the City Council to appoint a “third-party, independent” negotiator to broker talks with Lollapalooza and determine whether to eliminate the music festival’s multi-million dollar amusement tax exemption.

The hands-off stance is necessitated by the involvement of Emanuel’s brother, Hollywood super-agent Ari Emanuel. Ari Emanuel is the CEO of William Morris Endeavor, which co-owns Lollapalooza.

Discuss.

- Posted by Rich Miller        


26 Comments
  1. - Hank - Tuesday, Jan 31, 12 @ 9:13 am:

    * Nobody seems to know how this happened or why.
    Really?
    Daley favorite
    Daley nephew
    Rahm brother
    It’s all legit


  2. - Wendsicia - Tuesday, Jan 31, 12 @ 9:19 am:

    Why is the tune “It’s a Family Affair” by Sly & the Family Stone running through my mind after reading this post?


  3. - amalia - Tuesday, Jan 31, 12 @ 9:23 am:

    Hank is spot on.


  4. - Plutocrat03 - Tuesday, Jan 31, 12 @ 9:25 am:

    Nuttin’ to see here, move along….

    MOVE ALONG NOW!


  5. - MrJM - Tuesday, Jan 31, 12 @ 9:27 am:

    In the 1991 press kit for the original tour, Lollapalooza was given alternate definitions: “”Huge and great.” and “A big red lollipop.” http://goo.gl/hnL4r

    The Grant Park Lollapalooza combines the two: It’s a “giant sucker’s deal”!

    – MrJM


  6. - 3rd Generation Chicago Native - Tuesday, Jan 31, 12 @ 9:30 am:

    Every year I go to Taste of Chicago, they would not let anyone picnic on the grass in Grant Park last summer. To keep the grass and grounds in good condition. I have been to Grant Park after Taste of Chicago many times, and there was barely any damage done because of this event.

    But right after Lollapalooza, Grant Park, and the Petrillo Music shell areas were so tore up. There were bushes uprooted in Grant Park, much of the grass was gone and just patches of dirt everywhere, very little grass left. At the Petrillo music shell area there no grass anywhere. I was there the day a couple of news stations, one of them Spanish speaking was there on the Petrillow Music Shell grounds with the dirt in the background.
    The area was then roped off the remainder of the good weather for repairs. It was a horrific disaster. And no one was able to enjoy Grant Park after this.
    And to find out we did not get all the tax revenue? Pretty upsetting.


  7. - Dooley Dudright - Tuesday, Jan 31, 12 @ 9:57 am:

    EVERYBODY is talkin’ these days about Tammany men growin’ rich on graft, but nobody thinks of drawin’ the distinction between honest graft and dishonest graft. There’s all the difference in the world between the two. Yes, many of our men have grown rich in politics. I have myself. I’ve made a big fortune out of the game, and I’m gettin’ richer every day, but I’ve not gone in for dishonest graft - blackmailin’ gamblers, saloonkeepers, disorderly people, etc. - and neither has any of the men who have made big fortunes in politics.

    There’s an honest graft, and I’m an example of how it works. I might sum up the whole thing by sayin’: “I seen my opportunities and I took ‘em.”

    – New York state senator George Washington Plunkitt (1905)
    http://www.panarchy.org/plunkitt/graft.1905.html
    http://en.wikipedia.org/wiki/George_Washington_Plunkitt


  8. - shore - Tuesday, Jan 31, 12 @ 9:58 am:

    Rahm said he would “review it” a year ago. I trust the city council even less to appoint a “3rd party independent negotiator”.

    http://www.wbez.org/blog/jim-derogatis/2011-08-02/rahm-city-will-review-lollapalooza-tax-exemption-90008


  9. - Dan Shields, Springfield, IL - Tuesday, Jan 31, 12 @ 10:03 am:

    Imagine that a sweetheart tax dodging deal in Chicago. The State and local governments should sue these tax dodgers for the lost revenue. Not like the State of Illinois could use it or anything……..


  10. - Soccertease - Tuesday, Jan 31, 12 @ 10:11 am:

    At the State Fair and other festivals, not-for-profits owe-and pay-sales tax because they are in competition with others. Ask the Revenue folks, they will verify this. I think people confuse sales taxes with income taxes that not-for-profits do not pay.


  11. - Soccertease - Tuesday, Jan 31, 12 @ 10:19 am:

    Forgot to add that not-for-profits can PURCHASE (e.g., equipt and machinery) sales tax free but not SELL sales tax free.


  12. - dupage dan - Tuesday, Jan 31, 12 @ 10:34 am:

    Hey, what’s good for the machine is good for the city.

    Why?

    Because the machine says so, dat’s why.


  13. - Anonymous - Tuesday, Jan 31, 12 @ 10:37 am:

    “Nobody seems to know how this happened or why.”

    Sure we do. And so does Bridget Gainer, who was a Chicago Park District senior staffer at the time. The answer is Laura Foxgrover.

    Also, ask her about the Park Grill contract negotiations, during which she had the owner’s baby. No confict there, I’m sure…

    http://en.wikipedia.org/wiki/Park_Grill


  14. - Bitterman - Tuesday, Jan 31, 12 @ 10:53 am:

    Dooly Dud, brilliant!


  15. - Dirty Red - Tuesday, Jan 31, 12 @ 11:24 am:

    Weren’t there other cities trying to woo Lolla?


  16. - Yellow Dog Democrat - Tuesday, Jan 31, 12 @ 1:12 pm:

    This seems like an appropriate time to point out that Lollapalooza is illegal.

    The Illinois Supreme Court’s three Mongomery Ward decisions, trumpeted by the Chicago Tribune and others during the children’s museum debate, specifically prohibit using Grant Park for events “to which the public is not admitted for free.”

    Back in the day, they used to charge admission to circuses and all kinds of crazy stuff in Grant Park.

    The Supreme Court put a stop to that in perpituity.


  17. - Anonymous - Tuesday, Jan 31, 12 @ 1:30 pm:

    Same as it ever was. Same as it ever was. Same as it ever was. SAME AS IT EVER WAS.


  18. - wordslinger - Tuesday, Jan 31, 12 @ 1:32 pm:

    Remember when some thought Daley was indispensable?


  19. - Yellow Dog Democrat - Tuesday, Jan 31, 12 @ 1:58 pm:

    Wordslinger:

    Good one.


  20. - Anonymous - Tuesday, Jan 31, 12 @ 3:03 pm:

    Into the blue again. After the money’s gone.


  21. - Anon - Tuesday, Jan 31, 12 @ 3:07 pm:

    Lollapalooza may be the biggest, but it ain’t the only one. Tons of exemptions approved, millions of dollars waived. Millions.


  22. - Tom - Tuesday, Jan 31, 12 @ 4:54 pm:

    I wonder if the $2 million received by the park district is money used to restore Grant Park to a usable fashion. Last year, it took them months to get it back into a state people could actually use it. I think someone needs to look into it. No way should a park be closed for half the summer because they want to use if for 3 days.


  23. - Yellow Dog Democrat - Tuesday, Jan 31, 12 @ 6:22 pm:

    @Tom - You’re right. We should bill them for the whole three months.


  24. - Glass half full - Tuesday, Jan 31, 12 @ 7:26 pm:

    Hmmmmm……did Toni Preckwinkle vote for this exemption as a member of the city council?


  25. - South of the Loop - Tuesday, Jan 31, 12 @ 7:32 pm:

    I concur with Tom.

    Also 3rdGen is right it was like a disaster struck. I was embarrased if anyone visited Chicago for the first time, and during prime vacation season and went to Grant Park. All they would have seen is this tore up mess. Or if someone came back to Chicago for a visit they would have thought the city was broke and unable to keep up it’s parks.


  26. - Soccertease - Tuesday, Jan 31, 12 @ 9:23 pm:

    Rich, hope you follow up on this one. Dept of Revenue should be able to collect all sales taxes due from Lallapalooza since they are not tax exempt for sales tax. Rep. Sara Feigenholtz should persist until this is done.


Sorry, comments for this post are now closed.


* Rauner lambasted, even called "traitor" for siding with Democrats on abortion bill
* Reader comments closed for the weekend
* Remap reformers say recordings of Con-Con debates support their case
* Question of the day
* Sunlight Foundation tags the wrong Michael J. Madigan
* Rauner vetoes bills pushed by disability advocates, first responders, unions
* Independent Maps has appealed to the Illinois Supreme Court
* Rauner signs three controversial bills: Marijuana decriminalization, Contraception coverage; "Right of Conscience Act"
* Republicans "pledge" not to vote for Madigan for Speaker
* More on the Lottery announcement
* Caption contest!
* *** UPDATED x1 *** Whatever the number is, it's still pretty darned high
* Careful what you wish for
* Duckworth speech focused on Trump as new ads slam her
* Just legalize it, already
* Today's number: 32 percent
* Cullerton repeats demand that Rauner will decide tax hike
* One way 2016 could impact 2018
* *** UPDATED x1 *** Is it over or not?
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............
<


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Serious privacy flaws discovered in Glow fertility tracker app
* Apple sales records, Blackberry security, and we get stuff wrong | Pocketnow Weekly 211
* If the Priv failed to get BlackBerry back, can the DTEK50?
* Galaxy Note 7 Pricing and ETA, iPhone 7 adapter & more – Pocketnow Daily
* Google brings historic Rio exhibits and landmarks to a digital art collection
* New Samsung Gear VR for Galaxy Note 7 leaks ahead of launch
* Brexit waves hit HTC Vive price

* 'Reinvigorated' Hawk looking ahead to '17
* Sale clears air with Ventura, teammates
* TradeThread: Working the weekend
* Jose Abreu has a new weakness
* Frazier day to day with flu-like symptoms
* Eaton's HR all White Sox muster in 12-inning loss
* Quintana validating All-Star nod with stellar stretch

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Downers Grove official named to replace Rauner .....
* Gov. Rauner speaks Greek to lawmakers - Bellevi.....
* Republicans pick replacement for Rauner ally Sa.....
* COD trustee Olsen to fill Sandack’s seat..
* Why are so many professors moving out of Illinois?..
* Discontinuing College Illinois is a foolish rec.....
* Bruce Rauner is nothing like Donald Trump. Or i.....
* No prison penalty anymore for small marijuana a.....


* Autopsy: Man killed by Chicago cops died of gunshot to back
* Neighbor rescues disabled resident from lightning fire
* WWII vet from Illinois buried after mass grave discovery
* Urbana library opens after sniffer dogs finish bedbug search
* Correction: Chicago Violence-Mills Shot story
* East Chicago wants to demolish housing on contaminated site
* States' flag-burning laws unconstitutional, but persist
* Courts derail voting limits pushed by GOP in 3 states
* U of Illinois chancellor brings wide-ranging experience
* Illinois man sentenced for nursing home sex scheme

* Rauner vetoes bill to keep seniors in their homes
* Rauner signs law extending contraceptive insurance coverage
* Governor signs bill reducing marijuana penalties in Illinois
* Duckworth lawsuit settlement final, attorney general says
* Illinois seeking new private manager for state's lottery
* Attorney General: Duckworth lawsuit settlement final
* Health-care hiring keeps local unemployment at lowest in state
* Local unemployment again lowest in state for June
* Durbin rips Rauner, says governor tries to divide Illinois
* Illinois seeking new private manager for state's lotter

* Lost power? Blame this critter
* United Way's got a people problem
* Housing agencies tweak program that moves poor people to nicer neighborhoods
* Why are so many professors moving out of Illinois?
* Still a lot of haze around Chicago's cloud tax


* Headline-worthy ‘Newsies’ dances back into town in bravura form
* The people Rod Blagojevich left behind
* Man shot in West Garfield Park
* Donald Trump attacks Muslim father’s Democratic convention speech
* Ex-Rep. Lipinski drops federal lobbying after Sun-Times/BGA story
* Downers Grove official named to replace Rauner ally, Rep. Sandack
* Harrelson and Stone talk it out, aim for improved broadcasts
* Left-hander Matusz set to start for Cubs Sunday vs. Mariners
* No apparent survivors in hot-air balloon crash in central Texas
* Autopsy: 18-year-old man killed by CPD officers was shot in back


* What to watch for at Rio's opening ceremony
* One mom, 14 children, and the grace of caring
* Trump says NFL complained to him about debate schedule; NFL says it didn't
* 3rd cop loses police powers; Autopsy shows man shot in South Shore died from wound to back
* New contract means the world to NFL survivor Willie Young
* Sixth starter makes sense to Cubs, who call on Brian Matusz to pitch Sunday
* Chris Sale tying up loose threads from jersey-cutting incident
* South Side man denied bail in slaying of North Lawndale basketball standout
* Clinton stumps for working-class votes on potential Trump terrain
* Cubs pitcher Aroldis Chapman on his outing


* Great things happen when we work together
* Rauner vetoes bill to keep seniors in their homes
* Dr. Thomas Kerins: Ending high school PARCC a good first step
* Rauner signs law extending contraceptive insurance coverage
* Governor signs bill reducing marijuana penalties in Illinois
* Charles Krauthammer: What's the case for Hillary?
* Duckworth lawsuit settlement final, attorney general says
* Illinois seeking new private manager for state's lottery
* Attorney General: Duckworth lawsuit settlement final
* Health-care hiring keeps local unemployment at lowest in state


* Tate: Metro East blues coming to end?
* Behind the scenes with Lovie Smith
* Returning area football coach full of life
* PHOTOS: Decatur youth cleanup starts with help one block at a time
* PHOTOS: Music and crafts make Kidstock a hit
* Florida center has Illini as finalists
* Twin City Golf: Round 1
* Amber Alert issued for Vandalia child
* Update: Suspect of Vandalia Amber Alert apprehended and victim located
* Champaign County Fair: Final Day


* 'Turn of the Century' theme for Algonquin Founders' Days parade
* Saturday fun at the Lake County Fair
* Rodeo brings Wild West feel to the DuPage County Fair
* Officials: No apparent survivors in Texas balloon crash
* Hot-air balloon crash in 1994 in West Chicago seriously injured 3

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Durbin rips Rauner, says governor tries to......

* Senate and House bipartisan effort to help......

* CTA Tattler now can be found at ChicagoNow.com
* Update: The Tattler is cruisin' to ChicagoNow with the Trib
* The Tattler is cruisin' to ChicagoNow with the Trib
* Weekend work: A Blue Line "ditto"
* News pickup: CTA complaints; passengers falling on tracks
* "This is only a test!" Emergency exercise to shut Washington Blue Line stop, nearby bus routes
* CTA I-Go smart card earns Chicago Fast Cities nod
* CTA avoids fare hikes by using capital funds to balance budget
*
* Illinois Judges Foundation plans Summer Reception for August 17


* Governor Takes Bill Action
* Governor Announces Appointments
* Governor Rauner and Illinois Lottery Seek New Management Partner
* College Changes Everything™ Conference Highlights Critical Role Of Higher Education In Economic Recovery And Growth
* Summer Camp Builds Bonds between Incarcerated Moms and Children




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller