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.


* Raters react to pension ruling
* Caption contest!
* *** UPDATED x1 *** Good news and bad news
* What's Madigan's agenda?
* Today's quotable
* Chicago filing deadline roundup
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Question of the day
* Good morning!
* 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

          
        * Google’s new security tools to track and protect online life
        * Ninjas racing in costume and with weapons in Ninjump Dash
        * New Yonomi app announced at DEMO Fall 2014
        * Google may lose its supremacy as Safari’s default search engine
        * Samsung getting sued over the name “Milk”
        * GoGlove wearable remote controls your phone
        * Mac Gems: Calcbot syncs your calculation history between Mac and iOS

        * 3D Printer In Space Gets To Work
        * Dell Venue 8 7000 Series Arrives At The FCC
        * Apple Pulls Ahead In Market Capitalization
        * Microsoft Releases Another Windows 10 Patch
        * Sonim XP7 Announced As IndieGogo Project
        * Luxury Watchmakers Crack Down on Copycat Android Wear Watch Faces
        * Five Terabytes of External Storage for $130

        * White Sox plan for contention a work in progress
        * White Sox officially announce LaRoche deal
        * Red Sox seize offseason driver's seat with signings
        * White Sox officially announce LaRoche deal
        * White Sox land LaRoche with two-year deal
        * Family adversity didn't deter prospect Danish
        * Zach Duke and Adam LaRoche are steps in the right direction

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


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

        Archives
        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


        * Obama tackles Immigration, Ferguson..
        * SIU Plans for Possible State Budget Cuts..
        * Obama visits Chicago to tout immigration action.....
        * Obama aims to rally support for immigration pla.....


        * Ferguson protesters leave Chicago mayor's office
        * Trial set for Chicago man accused of killing son
        * Washington still focused on tornado recovery
        * 2 credit houses take no major action on Illinois
        * Illinois man pleads guilty in child porn case
        * Police across US prepare for more Ferguson rallies
        * Illinois farmers winding down harvest
        * Illinois suspends Ebola hotline as interest fades
        * Obama awards Illinois' Mikva the Medal of Freedom
        * Protests in Chicago, Peoria after Ferguson

        * Debt rating agencies weigh in on state pension ruling
        * Lisa Madigan to ask Illinois Supreme Court to consider pensions
        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court next
        * State to refund $60 million in retiree health care money
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court likely
        * Illinois pension case likely headed to high court
        * Judge: Pension ruling to come Friday
        * Rauner mum on fixes for ‘dire’ state finances, wants Quinn to freeze hiring

        * Obama's remarks about Ferguson
        * Obama: Destruction of property after Ferguson ruling is criminal act
        * Mathematica's Wolfram wins fraud case
        * Judge: Don't rip up Lucas Museum site overnight
        * Will Obama pick a woman to lead the Pentagon?


        * ‘Porgy’ star: Opera is fini if fat lady keeps singing
        * Obama in Chicago: On Ferguson, Immigration. Transcript
        * Finding food for hope in Ferguson
        * City needs to put its house in order in protecting tenants
        * Emanuel, Claypool heap each other with praise at City Club
        * Nothing but good vibes between Rahm, Claypool a year after Ventra
        * WATCH LIVE: Obama speaks on immigration, Ferguson in Chicago
        * WATCH LIVE: Obama speaks on immigration, Ferguson in Chicago
        * Deja who? Some names in next year's ward races could ring a bell
        * Obama expected to comment on Ferguson in Chicago


        * Obama visits Chicago to tout immigration action, cites Ferguson controversy
        * City Hall sit-in morphs into march along Michigan Avenue
        * FAA studying military-style air-traffic backup system, Sen. Kirk says
        * Bartlett man says at sentencing hearing he shot at car to protect family
        * Metra trains stopped in Aurora because of suspicious package
        * DuPage Co. OKs budget that reduces spending
        * FBI: Man robs 4th South Side bank
        * Man guilty of running pot scheme that authorities say was family affair
        * Release denied for man who took police on wild chase through Lake Co.
        * Board that oversees Illinois bar exam OKs breaks for nursing mother


        * Pension Ruling "Credit Negative," But No Ratings Change
        * Phoenix Center Strives To Connect With Transgender Community
        * Tim Landis: Foreclosure Sales, CIPS Icehouse and Heritage River Trail
        * Part Timers & Manufacturing in Illinois Feeling a Slow Economic Recovery
        * Notes From Ferguson: A QA With St. Louis Public Radio's Rachel Lippmann
        * Notes From Ferguson: Q & A With St. Louis Public Radio's Rachel Lippmann
        * Disbelief in Hammond after accused cops are reinstated
        * Disbelief by some in Hammond after accused cops are reinstated
        * Editor's Note: Tax And Pension Fix Won’t End Illinois’ Budget Crisis
        * Grand jury: No indictment for Ferguson police officer Darren Wilson


        * Debt rating agencies weigh in on state pension ruling
        * Our Opinion: Another big weekend for football fans
        * Mary Auchstetter: The true story of Grain Belt Express
        * Quote of the Day: Nov. 25, 2014
        * Lisa Madigan to ask Illinois Supreme Court to consider pensions
        * Quote of the Day: Nov. 24, 2014
        * Our Opinion: Illiana project too risky for tapped-out Illinois
        * Bernard Schoenburg: Sen. Manar backs aide Watson over Cahnman, Proctor in Ward 5
        * Karen Cox: Shop for a cause
        * Andy Shaw: Protect Illinois’ FOIA law from unnecessary tinkering


        * Lower gas prices mean more drivers for Thanksgiving
        * Hospital to hold depression porgarm
        * Walking with the protesters: Anger spills out
        * Davenport resident returns home to Ferguson, helps cleanup efforts
        * Historical society to host annual meeting
        * Andrew Acklin Jr.
        * SportsTalk 11-25-14
        * Sears space to be demolished at Market Place
        * Illinois panel approves state's part of Rock Island Clean line project
        * Brown family blasts prosecutor's handling of case


        * It's official: LaRoche joins White Sox
        * Pressure-packed defense big challenge for Bears
        * Police recover nearly $4,400 worth of drugs in Aurora
        * Facing health law hikes, consumers mull options
        * Ferguson protesters rally across US for second day

        * Our View: Randy Hultgren for 14th Congress...
        * Meet Mike Bost, a Must-Watch Freshman Cong...
        * Dold the winner in IL 10th CD
        * Bost in DC, Enyart postpones return
        * GOP's Bob Dold wins rematch over Democrat ...
        * Huge win for GOP in Illinois Congressional...
        * GOP's Dold wins rematch over Democrat Schn...
        * Illinois Republican Mike Bost, Newly Elect...
        * Republican Regains Former House Seat In Il...
        * Bost thanking voters day after historic wi...

        * Open: This is Face the Nation, November 23...
        * Durbin, Reed Lead 40 U.S. Senators In Back......
        * US Senate to hold civil rights hearing aft......

        * FAA studying military-style air-traffic ba......
        * Sen. Mark Kirk: 'We're Getting Played' in ......

        * Alright back to #Ferguson
        * Workers protest unfair wages at CD One Price Cleaners
        * Activists End Peaceful City Hall Sit-In
        * The Plot to Burn Chicago
        * How the Civil War Created Thanksgiving
        * Supreme Court fills two vacancies in 1st Subcircuit
        * My experience at the DMV
        * REMINDER: Methadone clinic protest on 79th street
        * IAR Government Affairs monitors veto session
        * CAR gives 49 reasons to help homeless children and moms


        * Governor Quinn Statement on Abner Mikva Receiving Nation’s Highest Civilian Honor
        * Department of Insurance Announces Multi-State Settlement with Symetra Life Insurance and Symetra National Life Insurance Company - Illinois will share part of a $1.2 million penalty against Symetra Life regarding Life Insurance policies
        * Avoid Foodborne Illness This Holiday Season
        * Dept on Aging Observes Family Caregivers Awareness Month by Reminding about Resources to Assist - Administers the Family Caregiver Support Program
        * State Seeks Public Input on Strategy to Reduce Phosphorous and Nitrogen Pollution in Mississippi River Basin - Draft Strategy Aims to Have Agricultural and Municipal Interests Work Together to Improve Water Quality




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller