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This just in… Another big hole likely blown in state budget as lowest bid gets casino license

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Illinois

* 12:17 pm - Des Plaines gets the nod, despite its developer’s lowball bid…

The Illinois Gaming Board has voted 3-1 to award the state’s unused casino license to Midwest Gaming & Entertainment.

The vote at a meeting in Chicago on Monday will allow Midwest Gaming to opening a gambling operation in the Chicago suburb of Des Plaines. […]

Trilliant’s [Rosemont] bid was the highest with an upfront licensing fee of $435 million, followed by Waukegan Gaming at $225 million and Midwest Gaming at $100 million. [emphasis added]

The state budget is based [if memory serves] on somewhere around $500 million for the license.

More trouble ahead.

* Tribune…

Midwest beat out competitors looking to locate in Rosemont or Waukegan with an upfront bid of $122.5 million and a promise of an additional $10 million for each of the next 30 years.

Chairman Aaron Jaffe said he felt Midwest was the most reputable and generous in sharing revenues with depressed communities.

Jaffe and several other board members said they could not vote for Trilliant Gaming to open a casino in Rosemont because of past allegations that the village had mob ties.

So, is the state gonna have to bond that $300 mil over 30 years to close part of the hole in its budget?

Great.

* Statement from AG Madigan…

Today, the Illinois Gaming Board voted to award the State of Illinois’ 10th casino license to Midwest Gaming LLC to locate a casino in Des Plaines.

As I have repeatedly stated, I expect the Board to provide a transparent, public explanation of the decision-making process, so that it is clear how they arrived at their selection. To that end, each Board member publicly explained his vote today, and the Board also stated that it will publicly provide more detailed, written explanations at its next meeting scheduled for January 12, 2009. The Board’s Staff Analysis and Recommendation is also available to the public.

I have always believed that the Board’s decision must put integrity first and foremost. As the process moves forward, including the important step of completing a full Board background check on all parties associated with the application, it is critical that the Board continue to make information publicly available. Transparency will be a key factor as we move closer to restoring credibility to the 10th license.

posted by Rich Miller
Monday, Dec 22, 08 @ 12:18 pm

Comments

So, explain to me where the political corruption comes in on this deal.

Comment by Speaking at Will Monday, Dec 22, 08 @ 12:21 pm
I don’t get it. Why not take the high bid? Geography doesn’t matter when it comes to corruption. If the casino’s going to be mobbed up, it could be mobbed up in Des Plaines, Waukegan, or Vatican City. Effective law enforcement is the answer.

Comment by wordslinger Monday, Dec 22, 08 @ 12:21 pm
OK, I can see wanting to avoid the Rosemont issue and all that goes with it, but what was so great about the Des Plaines bid for the board to flush $125 million and not go to Lake County?

Comment by Ron Burgundy Monday, Dec 22, 08 @ 12:22 pm
wow. what will Rosemont do with the theatre and the movie complex? they have it all set for gambling and they oopsed.

Comment by Amy Monday, Dec 22, 08 @ 12:24 pm
Wow, are they really selling to the lowest bidder??
OK, I’ll bid $1.00 (plus other valuable considerations to the powers that be - wink wink).

Comment by JLP Monday, Dec 22, 08 @ 12:27 pm
Wow, a bad month gets even worse for Terry Link.

Comment by Team America Monday, Dec 22, 08 @ 12:28 pm
Don’t be surprised if Lake County House members file an impeachment resolution against members of the Illinois Gaming Board, on grounds of Official Misconduct, just to raise a stink when the new general Assembly convenes next month.

Comment by fedup dem Monday, Dec 22, 08 @ 12:35 pm
Can Lisa Madigan block this deal (or Hynes or Giannoulias)?

A $400mil differential between budgeted and reality is bad enough, but the fact it’s the lowest of the bids is … Illinois.

Comment by Rob_N Monday, Dec 22, 08 @ 12:40 pm
TA - What on earth does Sen. Link have to do with Des Plaines getting this bid?

Dude, stop drinking that BS-flavored Kool Aid they’ve apparently got up there for the Lake Co GOP.

Comment by Rob_N Monday, Dec 22, 08 @ 12:43 pm
===Can Lisa Madigan block this deal ===

LM has been almost openly pushing for the Des Plaines option, so I doubt it. The developer is a big LM campaign contributor as well.

Comment by Rich Miller Monday, Dec 22, 08 @ 12:46 pm
It’s all about the board not wanting Rosemont to control the casino. By granting it to Des Plaines, the board still takes advantage of the proximity to the airport and the Rosemont hotel and convention business with Des Plaines’ casino location directly across the street (Devon Ave.) from Rosemont… a safe decision for them.

Comment by Nero Monday, Dec 22, 08 @ 12:48 pm
Rob_N, Terry Link threw everything he had behind this deal and has been working it for years. Shows you how much you know.

Comment by Team America Monday, Dec 22, 08 @ 12:50 pm
As Deep Throat said to Woodward and Bernstein, “Follow the money”. Which of the bidders contributed how much to the Governor’s campaign/legal defense fund? Or is that all in the past?

Comment by jake Monday, Dec 22, 08 @ 12:50 pm
I should add, Rob_N, in case you’re not getting it, is that it’s a bad month for Link on top of Curran defecting to the GOP, as well as Waukegan not getting the casino despite Link’s best efforts to get that project in Lake County.

Comment by Team America Monday, Dec 22, 08 @ 12:51 pm
Des Plaines deal….Neal Blum?

Comment by Amy Monday, Dec 22, 08 @ 12:57 pm
Bingo

Comment by Rich Miller Monday, Dec 22, 08 @ 12:58 pm
–LM has been almost openly pushing for the Des Plaines option, so I doubt it. The developer is a big LM campaign contributor as well.–

Sigh. Why should an attorney general be pushing for any casino option at all?

Comment by wordslinger Monday, Dec 22, 08 @ 1:03 pm
adding, especially one who has pretensions of being a corruption buster. Campaign contributor? Bad news.

Comment by wordslinger Monday, Dec 22, 08 @ 1:05 pm
== especially one who has pretensions of being a corruption buster.===

Have yo ever met a politician who ran on a platform of being a corruption supporter?

Comment by Ghost Monday, Dec 22, 08 @ 1:09 pm
The Madigan budget hole gets even bigger.

Ugh. How many parks does this mean Blago will close now?

Comment by budget buster Monday, Dec 22, 08 @ 1:17 pm
Which will happen first:
the Des Plaines casino breaks ground
Pat Quinn is sworn in as governor

Comment by Michelle Flaherty Monday, Dec 22, 08 @ 1:22 pm
In the words of Bart Simpson regarding the state of politics and committees under this administration- Arrrrrrrgh

Comment by KEGABEER Monday, Dec 22, 08 @ 1:23 pm
Lisa Madigan and Neil Blum. How convenient. Will the media be asking any questions here? Could the AG have had anything to do with this? Is it worth looming into?

Comment by Anon Monday, Dec 22, 08 @ 1:29 pm
Gee just where is Des Plaines located in proximity to Rosemont??? Just asking…

Comment by dis-connected Monday, Dec 22, 08 @ 1:32 pm
===Gee just where is Des Plaines located in proximity to Rosemont??? Just asking… ===

Exactly.

Comment by Rich Miller Monday, Dec 22, 08 @ 1:35 pm
This deal stinks worse than Rosemont ever did.

Rumblings have abounded for ages now that the AG’s determination to stick it to Rosemont had nothing to do with problems in Rosemont as much as with doing whatever could be done to steer it to Des Plaines.

Comment by Good Grief Monday, Dec 22, 08 @ 1:38 pm
Hmmm…are there any Illinois politicians with sense enough to stay away from these slimy looking deals? Taking the lowest bid makes about as much sense as making home loans to people who can’t pay them back!!

Comment by Belle Monday, Dec 22, 08 @ 1:44 pm
des plaines is River Road and Devon, which is very close to the Rosemont location so all those movie theatre investors should still be happy. and owe nothing to the State.

Comment by Amy Monday, Dec 22, 08 @ 1:45 pm
Ahhh, Madigan and Bluhm. Madigan and Malkin. Madigan and JMB Realty. You pay the $, you get the support. You give the support, you get the $. The politically connected always get richer. Lisa should be ashamed of herself - although I’m guessing this won’t go away. She just laid the groundwork for a nice negative ad for her 2010 opponents. Bravo!

Comment by Bill S. Preston, Esq. Monday, Dec 22, 08 @ 2:02 pm
Chicago media will excuse this all away. They’re all linked to Blum. Rosemont or Waukegan made much more sense. But don’t expect to hear any of that from the Tribune, and especially not the Sun Times. And, yes, the casino will be located literally spitting distance from Rosemont. I’m glad the mob doesn’t know how to walk across the street. Then again, this license is still likely to be tied up in court as well. Rosemont won’t just walk away. And I doubt the Waukegan investors are going to just courtsey and walk off the stage as well.

Comment by phocion Monday, Dec 22, 08 @ 2:04 pm
Im not really up on how the the mob operates, but how exactly does the 3 miles between Des Plaines and Rosemont make a difference in whether the casino will have mob tries or not? Is there some bridge they can’t cross between the two that I am not aware of? I went to the new land-based casino in Rock Island over the weekend and I have to say that it is a vast improvement over the old tiny and smelly boat, but it is still never going to be the economic savior of the Quad Cities.

Comment by Downstate weed chewing hick Monday, Dec 22, 08 @ 2:10 pm
– They’re all linked to Blum.–

Not really true. Looks like the Bluhms and Malkins stick with the entrenched political famillies. Madigan, Hynes, Daley, Stroger. No real support of Jesse White or Pat Quinn or Giannoulias.

Comment by Bill S. Preston, Esq. Monday, Dec 22, 08 @ 2:11 pm
Mr. Preston, Esq. I was referring to media links to Blum, not political ones.

Comment by phocion Monday, Dec 22, 08 @ 2:14 pm
Oh, and hick, Rosemont and Desplaines aren’t three miles apart. They are next door neighbors.

Comment by phocion Monday, Dec 22, 08 @ 2:15 pm
Geography is a false issue. The Outfit skimmed off casinos in Las Vegas into the 80s. Sam Giancanna, when he was exiled in Mexico, operated and skimmed casinos in Central America and Iran. New York skimmed off casinos in Havana.

Comment by wordslinger Monday, Dec 22, 08 @ 2:16 pm
At this point, I will stop short of saying this is an outrage, while I await the GB’s explanation of exactly why they pi___d away $300,000,000 of the state’s money. And BTW, if this place has all the geographical advantage of being in Rosemont, why doesn’t it have close to the economic value?

Comment by steve schnorf Monday, Dec 22, 08 @ 2:29 pm
Team America, a Real BAD 2 months for Terry Link. Not only does he lose the Waukegan Casino, but the GOP re-elects the Lake County Attorney and Sheriff Curran switches to the Republicans .

Comment by Joseph Monday, Dec 22, 08 @ 2:30 pm
Terry Link was also a Huge supporter of Dan Seals in 2008, as Mark Kirk trounced him.

Comment by Joseph Monday, Dec 22, 08 @ 2:38 pm
This is the same Desplaines that hired a former convicted Cook County Undersheriff with alleged mob ties or gave him a deal for billboards along the highways?
Once again the citizens of Illinois get screwed by the politicians and their insider deals. The lowest bidder wins, the taxpayers can make up any differences.

Comment by Tinker Bell Monday, Dec 22, 08 @ 2:55 pm
Er, did Chairman Jaffe ever get an answer on Desplaines’ mob ties - or LM’s failure to investigate? Or do we just forget about it because the media hasn’t covered it lately:

http://goliath.ecnext.com/coms2/gi_0199-808757/Des-Plaines-examining-billboard-deal.html

So, if you’re going to a town that’s tied to the mob and you lowball a license, that’s cool. But if there are allegations about a deceased Mayor, and the clean company who wants to put in a casino is the highest bidder, the gaming board has concerns? Oh, ok. Do they have an I.Q. limit for membership on the GB?

Comment by phocion Monday, Dec 22, 08 @ 3:01 pm
The Des Plaines casino site is literally across the street - Devon Avenue - from the Rosemont Village Hall. Also, what about the connection written about in the Journal and Topics newspaper between Dvorak - the corrupt former politician - and Mayor Arredia of Des Plaines. Why won’t the Tribune and Sun-Times look furher into it?

Comment by George Monday, Dec 22, 08 @ 3:02 pm
You guys sound like your economic rescue plan of selling off the Beany Babies for that magnificent profit hit reality’s wall.

Sorry - nothing is easy in the real world when we overspend.

Comment by VanillaMan Monday, Dec 22, 08 @ 3:03 pm
Why does Des Plaines even want a Casino? The smoking ban has turned the Joliet and Elgin Casino’s into Ghost Towns anyways.

Comment by Joseph Monday, Dec 22, 08 @ 3:18 pm
Joseph, I was in the Elgin casino shortly before election day. It was packed. Couldn’t find a seat.

Comment by Rich Miller Monday, Dec 22, 08 @ 3:21 pm
Hmmm…I guess the background regarding Bluhm, Madigan and Mikva’s plan to railroad this to Des Plaines is worthy of deleting.

Comment by DuPage Moderate Monday, Dec 22, 08 @ 3:28 pm
Rich, I was in Elgin last Saturday Night, and the Friday Night Before that and it was barren for Weekend nights.

Comment by Joseph Monday, Dec 22, 08 @ 3:33 pm
The Dvorak connection to Des Plaines came through the former asst. city manager Bill Schneider… it was he who facilitated the billboards deal.

Comment by Nero Monday, Dec 22, 08 @ 3:34 pm
===I was in Elgin last Saturday Night, and the Friday Night Before that and it was barren===

Perhaps the weather might’ve had something to do with it?

If they’re gonna whine about not making enough money, I’ll take their license.

Comment by Rich Miller Monday, Dec 22, 08 @ 3:35 pm
BTW, the AG’s office just called about my “almost openly pushing for the Des Plaines option” comment above.

Allow me to explain: Never once to my recollection has AG Madigan ever said “boo” about the Des Plaines option. Not when the Gaming Board investigators expressed concern that the Rosemont folks might just walk down the street. Not when the Dvorak link was exposed. Not ever. She has focused solely on Rosemont. It’s well known that the state wanted to take advantage of the O’Hare traffic at the 10th casino (ergo Rosemont) so Des Plaines has always - always - been the fallback option. By bashing Rosemont and staying silent on Des Plaines, she might as well have just endorsed putting the casino in Des Plaines.

The fact that the developer was a major contributor during her first statewide campaign just makes it all the more juicy.

Comment by Rich Miller Monday, Dec 22, 08 @ 3:40 pm
TA - I understand completely, but you should know Mark was a Republican for quite some time before he made it official a few days ago.

Heck, Botterman and I knew it when we worked on his first campaign years back. Then again, you’ve been defending Mark against knee-jerk GOP detractors for a while now so clearly you did know.

And Link knew as well as anyone he would’ve had to have a real pot o’ luck to get past L-Mad.

Shows you how much you know… or, [insert your own kindergarten insult here].

Comment by Rob_N Monday, Dec 22, 08 @ 3:46 pm
{The Board’s Staff Analysis and Recommendation is also available to the public.}

Is that the version they prepared in advance of last week’s meeting, or today’s meeting? Or perhaps the new and improved version after today’s meeting?

Comment by Blago Sphere Monday, Dec 22, 08 @ 3:48 pm
And another thing, since they’re obviously reading the comments.

I didn’t appreciate the “We’ll remember that” crack. Not the most appropriate language for a prosecutor’s office.

I’ll remember that, too.

Bite me.

Comment by Rich Miller Monday, Dec 22, 08 @ 3:48 pm
Rich - are those your comments in response to the phone call, or is that a paraphrase of the caller’s remarks?

Comment by Rob_N Monday, Dec 22, 08 @ 3:48 pm
Not sure what you mean, Rob. The comments at 3:40 are designed to more fully explain my above post. I essentially made the same comments to the AG’s office on the phone.

The comment at 3:48 is, again, my own remark and a cleaned up version of what I said on the phone. lol

Comment by Rich Miller Monday, Dec 22, 08 @ 3:51 pm
Rich, LOL I will take their license too if they whine. As a non smoker who plays much Black Jack in Elgin I like the clean air, but if you talk to dealers and Casino workers off record as I have, they will tell you that business is slow due to the smoking ban. Just my take.

Comment by Joseph Monday, Dec 22, 08 @ 3:52 pm
Why did the mobster cross Devon Ave?

Comment by Take It Easy Monday, Dec 22, 08 @ 3:52 pm
Rich,

Have a Great Christmas Break.

Comment by Speaking at Will Monday, Dec 22, 08 @ 3:57 pm
How long before we find out what % Duchisois owns; and the 15% rake for the rest of the hoprse racing industry gets capped; or disappears altogether?

Comment by Blago Sphere Monday, Dec 22, 08 @ 4:02 pm
Chill, dude. Its not smart to irritate the AG’s office. That’s about as smart as me dissing the USA.
Nice work on all the coverage.
Have a great holiday season. If you can try to make it down here. 78 and sunny. The only thing cold is the beer.
Seeya next week.

Comment by Bill Monday, Dec 22, 08 @ 4:03 pm
Bill, one reason for my irritableness is that I gave up an apartment on the beach in Miami after the RRB explosion happened. Reminding me of what I’m missing won’t endear you to me, pal. lol

Comment by Rich Miller Monday, Dec 22, 08 @ 4:04 pm
Rich- LMad’s office really said “We’ll remember that?” Wow, that’s petty. Not only is that well worth a “Bite Me”, it’s probably worth it’s own blog post and a mention in your weekly.

Comment by Team America Monday, Dec 22, 08 @ 4:07 pm
Don’t mess with the AG’s office? What do they do anyways…Take licenses away under kangaroo proceedings headed by the AG’s parents friend and vacation partner only to push the license into their friend’s hands?

“We’ll remember that”…what clowns.

Comment by DuPage Moderate Monday, Dec 22, 08 @ 4:09 pm
And why would the AG’s office be following these comments go closely? Something to hide?

Comment by DuPage Moderate Monday, Dec 22, 08 @ 4:12 pm
Terry Link is quoted in an article up at the CBS2 website. Link implies that William Cellini’s past ownership interest in the Waukegan gaming group might be a possible reason for passing on Waukegan, but he also seems to imply the Board was just predisposed to not dig Waukegan. You can tell it’s a bad day for Link.

http://cbs2chicago.com/topstories/Des.Plaines.Casino.2.892992.html

Comment by Team America Monday, Dec 22, 08 @ 4:14 pm
DM, lots of offices read comments. It’s not unusual at all.

Comment by Rich Miller Monday, Dec 22, 08 @ 4:15 pm
TA TA - Ok, we get it, you hate Link. Good for you.

–

Rich - I was writing my earlier question while you made your 3:48 comment so it was really only a query about your 3:40 note.

Your explanation answers my question. I was just wondering if you were paraphrasing the person on other end of the line or simply posting your reply to them.

Quinn 2010 is going to get a big boost out of the 10th license, if he can actually bring himself to raise money.

Comment by Rob_N Monday, Dec 22, 08 @ 4:36 pm
“We’ll remember that…”

So the um era of Rod retaliation will be replaced by….

Comment by Ghost Monday, Dec 22, 08 @ 4:38 pm
===Link implies that William Cellini’s past ownership interest===
Well it didn’t help that one of people on Waukegan’s application was Mike Pizzaia (sp?) who use to work for Cellini and is a business partner of his. Didn’t make any sense at all to keep him on there.

Comment by Just Looking Monday, Dec 22, 08 @ 4:46 pm
Put money on the fact that there’s already a couple of folks out of the Public Integrity unit who are going to be extremely interested in this one.

Let’s see…. Rosemont @ 425 mil; then Des Plaines wins with $100 mil down, and $10 mil a year for 30 years.

That’s $425 mil vrs. $400 mil ($100 mil + $300 mil over 30 years).

Yeah, like that’s not going to attract any attention from the Feds these days, being that this is IL and all.

What are those people in the IL AG’s office thinking of? “What’s she thinking of?”

Comment by Judgment Day Is On The Way Monday, Dec 22, 08 @ 5:32 pm
Just Looking, which casino do you shill for? You don’t know how to spell a guy’s name but you “know” he “use (sic) to work for Cellini and is a business partner of his.” What business is he partnered with? When did he work for him? I’ve got a better question for everyone: If Rosemont is so mobbed up, why isn’t LM and the US Attorney doing everything to take it down? These insinuations are garbage meant to obscure the fact that the skids have been greased for Blum and the shady lowball Desplaines deal.

Comment by phocion Monday, Dec 22, 08 @ 5:39 pm
Does my little heart good to see fellow Illinoisians admit the ‘mob’ is alive and well! LOL The AG’s office is using veiled threats? Rich - it’s worth at least a bleeping bleep or two! And get an air card for crying out loud and work ON the beach! Sheesh, we are quite mobile these days! It can be done…haha

Comment by Belle Tuesday, Dec 23, 08 @ 10:31 am
Belle, why ruin the beach with work? No way.

Comment by Rich Miller Tuesday, Dec 23, 08 @ 1:16 pm
Yeah!!!!

No Waokegan Casino in Fountain Square! What a Christmas gift.

Those rascally Lake County Dems will have to scheme up somethig different.

Tee hee, tee hee. Am I restraining my enthusiasm enough? Chortle, chortle……

Comment by plutocrat03 Thursday, Dec 25, 08 @ 6:49 pm
As reported in the Des Plaines Journal, Des Plaines upped their bid from $94 million to $300 million and offered a bond to give the state that money up front, not after 30 years.

Comment by Tom Sunday, Dec 28, 08 @ 2:33 am
If you want to know first hand what happened go to the IGB’s website and listen to the meeting where the board explained its vote for the 10th license!

Comment by No name today Monday, Dec 29, 08 @ 7:43 am