SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
A look at Madigan’s law firm

Monday, Jun 16, 2014

* The Sun-Times takes a look at House Speaker Michael Madigan’s law firm’s property tax work for an offshoot of Mesirow Financial Services, which put up a skyscraper, then sold it

After appealing to Houlihan and the Cook County Board of Review, Madigan got the building’s market value pegged at $31.3 million. That saved Stein’s company $1.7 million in property taxes for 2010.

On Dec. 15, 2010, Stein’s company sold the building to Tishman Speyer for $385.4 million — a deal that Madigan’s firm says wiped out the equity that Mesirow and Jenner had in the skyscraper.

For each of the past four years, Madigan has filed challenges of the building’s estimated market value with Berrios, who succeeded Houlihan as county assessor in 2010.

Every year, Berrios has said the building is worth at least $330 million. And every year Madigan’s firm has gotten Berrios to slash that estimate, resulting in tax breaks that have averaged $5 million a year, county records show. Tishman Speyer passes along the tax bills to its tenants, so any cut benefits them.

The skyscraper “had essentially no rental income in 2009 and reduced rental income in subsequent years,” says Madigan’s partner, attorney Bud Getzendanner, who successfully argued for the cuts. […]

Getzendanner won’t say how much the firm has been paid for winning the cuts in property assessment that lowered the building’s taxes. Madigan told the Chicago Tribune four years ago that his firm charges clients an annual fee rather than take a percentage of the tax cuts.

Earlier this year, Getzendanner argued the building was worth no more than $260 million, though its net income hit $36.7 million last year, the highest since tenants first moved in. He noted that 10 percent of the building remained vacant.

Once again, Madigan’s firm got Berrios to cut the building’s estimated value, this time by 20 percent, then persuaded the Board of Review to lower it by another 2 percent.

At first blush, it looks like a fetcher game. The Assessor repeatedly over-estimates and then MJM swoops in to save the day.

But that probably can’t be because Madigan doesn’t take a cut of the tax reduction. He charges by the year.

* There have been tons of stories done on Madigan’s property tax business. I’m told the feds went through his books several years ago. They came up empty. Former GOP Rep. Maureen Murphy, an avowed Madigan enemy in the House, ran for the Board of Review back in the day with the specific goal of going after Madigan. Nothing ever materialized.

- Posted by Rich Miller        


6 Comments
  1. - wordslinger - Monday, Jun 16, 14 @ 12:09 pm:

    The whole political-property tax system stinks. You have to lawyer up to have a real chance at getting a reduction.

    And the whole idea of raising revenue through the assessed valuation of property is subjective on its face, as are appeals.

    The more we can shift from property to income for revenues, the better.


  2. - Pete - Monday, Jun 16, 14 @ 12:14 pm:

    Rich,
    You left out the family connection, and the lower than market rate rent. Both of those points speak to how if you’re an insider life is a little sweeter for you.


  3. - MrJM (@MisterJayEm) - Monday, Jun 16, 14 @ 12:25 pm:

    There have been tons of stories done on Madigan’s property tax business. I’m told the feds went through his books several years ago. They came up empty.

    “The scandal isn’t what’s illegal, the scandal is what’s legal.” — Michael Kinsley, Crossfire, CNN, Nov. 15, 1990.

    – MrJM


  4. - Mokenavince - Monday, Jun 16, 14 @ 12:52 pm:

    It’s legal because Madigan write’s the laws. He has the state prosecute them and his law firm defends them.


  5. - Steve - Monday, Jun 16, 14 @ 1:02 pm:

    This is a great story. There’s a lot of wisdom to be learned in here for aspiring Illinois politicians. Mike Madigan is no Derrick Smith . If the Derrick Smith’s of the world would understand certain rules of the game, they’d understand the long run.


  6. - Fed up - Monday, Jun 16, 14 @ 2:12 pm:

    Berrios and Madigan are as thick as thieves. Both consider politics a family business. Madigan has never been bothered by Berrios questionable ethics or his I’m above the law attitude Wonder if Madigan is more successful at property tax reductions than other attorneys. It remains that certain connected few control a lot of influence.


Sorry, comments for this post are now closed.


* SUBSCRIBERS ONLY - Cable TV buys
* Reader comments closed for the weekend
* Rauner vetoes several social service bills
* Ok, that's enough
* I truly hate this US Senate race
* Rauner signs life insurance bill
* Question of the day
* State bond sale goes well, but still paid a higher price
* *** UPDATED x1 *** Picking on the little guys
* We've been a sorry state for a long time
* Munger and Mendoza face off in hostile debate
* I'm still befuddled by this move
* *** UPDATED x5 - Motion approved - Noven to withdraw - $421 million budget hit - One appointee appears to be ineligible - The plot thickens as three new board members appointed *** Controversy expected at TRS hearing today
* React to remap reform ruling
* Divided court kicks remap reform off ballot
* 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

  
* The flagship is dead, long live the new flagship
* Lenovo Yoga Tab 3 Plus 10 expected at IFA 2016
* Eighth beta for Apple software out for devs, seventh iOS 10 beta for public
* China’s Galaxy Note 7, the same as everyone else’s — 4GB RAM, 64GB storage
* Google Wallet debuts automatic transfers so you can skip “cashing out”
* Android 7.0 factory images are live for most Nexus devices
* Sony Xperia X Compact and Xperia XR specs revealed

* Sale sticking to regular rest despite workload
* White Sox fall despite Sale's 14-K gem
* Sale nearly makes history in hard-luck defeat
* Scouting, development shaping Hansen's dominance
* White Sox fall despite Sale's 14-K gem
* Sox acquire Turner from Toronto for Navarro
* Quintana seeks career-high 11th win against Mariners

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


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

Archives
August 2016
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


* Editorial: Abandon all hope, ye who enter Illinois..
* Governor stops in Mt. Vernon - Mt. Vernon Regis.....
* Gov. Rauner opens Du Quoin State Fair - WAND..


* Elections board appeals ruling on independent candidate
* Southern Illinois highway named for fallen Green Beret
* 2 dead, 1 hurt in Chicago house fire; arson suspected
* In wake of cousin's fatal shooting, Dwyane Wade speaks out
* Regulator: Dakota Access pipeline worker killed in accident
* Northwest Indiana seeking to lure Chicago commuters
* Appeals court grapples with unions, free speech, giant rats
* New corn disease found in Illinois field
* EXCHANGE: Scout spends summer cataloging Senators' trophies
* EXCHANGE: Back-to-school shopping is more than crayons

* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Progress on U.S. 67 sputters due to lack of funds
* New law makes insurance companies find, pay beneficiaries
* Decatur woman can petition to become nurse under new law
* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner
* Springfield-area jobless rate remains lowest in Illinois
* Illinois 'Obamacare' health insurance rates up significantly
* Rauner's office warns teachers' pension change could be 'devastating'

* What do you get for $2,000 in rent?
* Cubs stars growing too big for Chicago market
* Warehouses are sexy all of a sudden. Here's why.
* How Macy's retreat is affecting this REIT's fortunes
* What's not to like about Obamacare? Plenty in Illinois


* John Fountain: Soul arises, soul survives, in Chicago
* Two people shot in Calumet Heights
* Kevin White hasn’t produced in preseason, but what does it mean?
* Bears side with caution, sit Leonard Floyd vs. the Chiefs
* Tracy Porter injury could put young secondary on the spot
* Jay Cutler’s preseason ends bleakly, but ‘we still have time’
* Bad offensive performance, not Bears’ record causing concern
* Man fatally stuck by vehicle in Lawndale
* Sources: Bears QB Connor Shaw has broken leg
* Bears offense futile at home, again, in preseason loss to Chiefs


* Pushing back retirement age to 70 would be harder on low-income workers
* Trump warns of 'war' on farmers in Iowa; Clinton receives first intelligence briefing
* Boy, 17, among 7 wounded on South, West sides
* Chicago police questioning 2 in shooting death of Dwyane Wade's cousin
* Saturday's recap: Dodgers 3, Cubs 2
* Trump tweets condolences to Dwyane Wade's family after earlier furor
* Connor Shaw suffers gruesome leg injury late in Bears' loss
* Jurors acquit Illinois man in 2012 Hammond murder case
* The strange tale of Donald Trump's doctor letter just got stranger
* Rhymefest posts video of trying to report crime, gets apology from police


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* Raising awareness to end domestic violence
* Mom's legacy lives on through fund
* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Progress on U.S. 67 sputters due to lack of funds
* New law makes insurance companies find, pay beneficiaries
* Charles Krauthammer: The bribery standard
* Lloyd Richardson: Tuskegee Red Tails were a force to be reckoned with
* Guest Column: Bradley ad on wrong side of policy, politics
* Decatur woman can petition to become nurse under new law
* Illinois redistricting referendum won't appear on ballot


* LIVE! Illini Classic: Missouri State
* In wake of cousin's fatal shooting, Dwyane Wade speaks out
* Saluki volleyball moves to 2-0, sweeps Duquesne
* PHOTOS: Rock the Park brings music, laughter and joy to Central Park
* EM's Jaryn Franklin represents Illinois in pageant
* Tanners Orchard marks seven decades of apples and customer satisfaction
* UI Volleyball vs Xavier
* Harrisburg boil order includes additional blocks, boil order lifted in some areas
* RI shows support on Community Day
* Sangamon River Music Festival Parade


* Defense sets the tone in Maine West's season-opening win
* Benet stops Neuqua Valley again for invite title
* Mancini leads Endwell, New York, to Little League title game
* Memorable quotes, calls by legendary Vin Scully
* In wake of cousin's fatal shooting, Dwyane Wade speaks out

* 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

* Des Plaines Gets $11.4 Million To Purchase......

* Says they're all orphans and widows becaus......
* Supreme Cout nominee Merrick Garland tells......
* Supreme Court nominee Merrick Garland tell......

* Rauner Signs Sportsmen Bills Aimed at Conservation and Investing in Young Hunters
* John Oliver’s smack-down of charter schools.
* Keeping retirement weird. Learning theory and the ukulele.
* Back To School Picnic On Wednesday
* Even nonpartisan attempt at redistricting reform was partisan effort
* “The Driver’s Side” – News From The Motorist’s Perspective
* Person Shot At Wilson/Hazel Friday Evening (Updated 3x)
* Person Shot and Killed At Wilson/Hazel Friday Evening (Updated 4x)
* Person Shot At Wilson/Hazel Friday Evening
* Judge Orders Release Of Additional Clinton Emails


* Statement on Redistricting Referendum
* Rauner Administration Takes Action to Help Illinoisans Find Lost Life Insurance Money
* Illinois Residents Encouraged to Register for ‘The Great ShakeOut’ Earthquake Drill - 'Drop, Cover and Hold On’ Drill Set for October 20
* Governor Takes Bill Action
* Illinois Seeking Flexibility to Improve Delivery of Behavioral Health Care




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