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Statehouse politicians are exploring potential options to place an immediate freeze on controversial lease payments to the owners of a 60,000 square foot warehouse used to store paper records in Springfield.
The Procurement Policy Board held its first public meeting since our reporting uncovered the close ties between Chairman Frank Vala and ex-convict Bill Cellini and his son-in-law Raffi Vartanian. Vartanian is listed as one of the three owners who benefited from the above market lease deal with the state.
An upstart company registered under the name Climate Controlled Holdings purchased the old Barney’s Furniture warehouse for $575,000 before promptly leasing it to the state of Illinois in a guaranteed 5-year, $2.4 million deal. Climate Controlled Holdings registered with Illinois as a new business just two days before the state’s bid deadline was set to expire in February of 2016.
Eventually, three owners would claim an equal share of the company, splitting it up into three equal parts. Mary Hurwitz launched Kidstone, LLC, in September of 2016 on the same exact date Mary Pruitt opened SGA, LLC. Neither Hurwitz nor Pruitt have returned our phone calls or emails inquiring about the nature of their new companies or whether they are open for business to anyone other than the state of Illinois. A lawyer who registered Pruitt’s LLC responded to our requests for comment issuing a stark warning not to “disparage” his client’s company.
Vala holds the tie-breaking vote on the Procurement Policy Board and yet he abstained from holding a vote or making a motion to review or object to this above market lease. When the Procurement Board opts not to vote, lease deals are automatically allowed to pass. His abstention was de facto approval.
On Friday, Vala went silent when asked about his ties to Vartanian and Cellini or if he knew of Vartanian’s whereabouts. It remains unclear if Vartanian maintains a residence in Chicago or if he still lives in Dubai, United Arab Emirates.
Go watch the video. Brutal.
posted by Rich Miller
Monday, May 1, 17 @ 12:16 pm
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Most of the names associated with this lease are old hands at the game. As long as the leases were legally entered into, the recipients of the rents love it. The pols take a little heat until the next story bumps it off page one. It will stay alive only in the soon to be bombardment of campaign ads.
Comment by don the legend Monday, May 1, 17 @ 12:28 pm
Most days I feel doom and gloom about the state of local news operations. Mark Maxwell’s work here is an antidote.
Comment by Reality Check Monday, May 1, 17 @ 12:29 pm
Nothing new Rich…. Frank and Bill have been doing this forever….it is part of the folklore in Springpatch.
Comment by scott aster Monday, May 1, 17 @ 12:45 pm
Mark Maxwell certainly is shaking up Springfield.
Comment by Michelle Flaherty Monday, May 1, 17 @ 12:47 pm
This picture is definitely worth 2.4 million bucks — I mean, 1,000 words. http://www.sj-r.com/storyimage/LS/20140409/OPINION/140409320/AR/0/AR-140409320.jpg
Comment by Reality Check Monday, May 1, 17 @ 12:54 pm
OK let’s have a contest. call it the ShakeUp ’spress in honor of DopeyDuct.
Keep you eyes glued CMS lease site. At the same time prepare some paperwork to create a dummy LLC with a fake address (say Capt Fax posh lakefront estate) when a new opportunity toss a price on the form and send it over. Then wait for the notice that you lost.
Comment by Annonin' Monday, May 1, 17 @ 12:56 pm
I applaud those citizens and members of the ILLGOP who are concerned about “waste and corruption” being a big part of our problem with not having a budget mush less a balanced one.
Yet, where is their equal outrage with reports like this. Self serving connected individuals are free to raid the state treasury as they see fit.
If only the self righteous guardians of our states well-being would be as outraged about this scam as they were about the Comptroller buying a used SUV.
Comment by illini Monday, May 1, 17 @ 12:56 pm
“Shaking up Springfield”. Shaking down Springfield.
Comment by Anonymous Monday, May 1, 17 @ 12:58 pm
And meanwhile here in the trenches, I can’t even accept so much as an ink pen from a vendor without fear of discipline up to and including termination.
Comment by Gruntled University Employee Monday, May 1, 17 @ 1:11 pm
A fine member of the Sangamon County GOP, you the know the party of doing more with less and smaller government.
Appears Mr. Vala is not use to being in the hot seat or being questioned because as we all know, the Sangamon County GOP is all about good government.
Comment by Give Me A Break Monday, May 1, 17 @ 1:14 pm
And this all occurred under the ‘Shake Up Springield’ regime.
Guess no Shaking here! SSDD.
Comment by sal-says Monday, May 1, 17 @ 1:25 pm
Watched the interview on Sunday. Loved watching Vala squirm, but until I read the print piece, Vala’s true hypocrisy was hidden…
“Vala’s home care company Community Care Systems bills the state of Illinois tens of millions of dollars annually. Vala regularly writes to the Comptroller’s office and asks for payments to be released immediately, but at Friday’s meeting showed no mercy to a cash-strapped landlord seeking relief from paying exorbitant utilities while the state fails to make payments. Vala was the lone voice opposing an offer to reduce the landlord’s utility fees, citing the businesses failure to anticipate these costs when they signed the lease with the state. Vala was overruled.”
Comment by Anon221 Monday, May 1, 17 @ 1:35 pm
Funny, I can’t find a word about any of these questionable lease deals or Vala’s role in this anywhere at the Illinois Policy Institute’s Illinois News Network.
So much for the watchdog reporting and protecting taxpayers’ money.
Too close to home?
Comment by Michelle Flaherty Monday, May 1, 17 @ 1:39 pm
Ok to get on Vala, but he has a point that his job just to review CMS and chief purchasing officer actions.
Buried in the written article is the fact that Chip Smith was involved in this by being the leasing agent for CMS. Chip’s daddy is Irv Smith, who was the head of Sangamon County GOP and great friends to Bill Cellini. Further investigation is needed as to what conversations he had on this with Cellini.
In the end though the chief purchasing officer approved this so maybe it’s just all smoke and no fire.
Comment by Thinking Monday, May 1, 17 @ 3:28 pm
–but he has a point that his job just to review CMS and chief purchasing officer actions.–
So why was this action not reviewed?
Comment by Ahoy! Monday, May 1, 17 @ 3:48 pm
Ahoy-you may be correct and it’s a good question you asked. What did the purchasing officer know, when did they know it, etc. I should have included suggesting further review of both CMS and the Chief Purchasing Officer.
Comment by Thinking Monday, May 1, 17 @ 4:22 pm
How in the world can a person who has state contracts sit on the Procurement Policy Board.
Comment by Anonymous Monday, May 1, 17 @ 5:09 pm
5:09 was me
Comment by LTSW Monday, May 1, 17 @ 5:10 pm
–An upstart company registered under the name Climate Controlled Holdings purchased the old Barney’s Furniture warehouse for $575,000 before promptly leasing it to the state of Illinois in a guaranteed 5-year, $2.4 million deal.–
And people say Rauner doesn’t know how state government works. That’s as old-school as it gets in Springfield.
Comment by wordslinger Monday, May 1, 17 @ 5:21 pm
That piece is amazingly well reported and written. Well done, Mark Maxwell.
My only quibble: no mention of Rauner. Don’t think for a second that the governor’s office didn’t orchestrate or, at the least, bless this hinky deal with Cellini’s kin. Heck, Vala practically said as much by repeatedly arguing that his board is responsible only for reviewing the recommendation of CMS.
=== Funny, I can’t find a word about any of these questionable lease deals or Vala’s role in this anywhere at the Illinois Policy Institute’s Illinois News Network. ===
Now that you mention it, where’s the Chicago Tribune’s lead columnist on this one? Is he no longer on the Cellini/Combine beat? Or is he too busy blustering about the poor, feckless governor who just can’t stand a chance against an almighty adversary?
Comment by Louis Capricious Monday, May 1, 17 @ 8:36 pm
The real flaming hypocrite in this whole deal is Daley/Madigan errand boy Eddie Bedore who approved or “non-objected” (I believe that may have been his idea) every deal, good or bad, that came through there under Quinn. Check the records-you’ll see. Also interesting that Bedore was openly buddy-buddy with Bill Cellini until Bill had his legal issues and Eddie bailed on him. Of course, the best witness to that relationship-Frank Vala.
Comment by See the Mess Monday, May 1, 17 @ 9:46 pm