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Thursday, May 9, 2024

Preckwinkle administration hides details of $125,000 legal assessment of controversial Cook County Land Bank

Illinois preckwinkle toni

Cook County President Toni Preckwinkle | Cook County Record

Cook County President Toni Preckwinkle | Cook County Record

Cook County President Toni Preckwinkle's administration doesn't want the public to know details of how a powerful corporate law firm conducted its assessment of the Cook County Land Bank's core operational functions.

In all, Cook County taxpayers paid the law firm $124,775 for the law firm Riley, Safer, Holmes and Cancila's damning assessment that found the Land Bank, which is partially funded by federal grants, lacks operational oversight, transparency and ethical controls, among other things.

RSHC's work included interviewing 20 people including all Land Bank personnel, several current and former Land Bank board members, the Land Bank's outside legal counsel, a representative of the Cook County State's Attorney's Office who has handled real estate transactions for the Land Bank and other key personnel, according to the law firm's final report.  

Invoices obtained through the Freedom of Information Act included an itemized breakdown of time RSHC's team of $600-an-hour lawyers and other staff spent on its assessment.

Preckwinkle's administration, however, redacted the "descriptions of work" listed in RSHC's invoices citing a provision in the Freedom of Information Act that allows — but does not require — governments to withhold "communications between a public body and an attorney or auditor representing the public body that would not be subject to discovery in litigation, and materials prepared or compiled by or for a public body in anticipation of a criminal, civil or administrative proceeding upon the request of an attorney advising the public body."

Chicago City Wire is preparing to appeal to the redactions, and the Preckwinkle administration's refusal to release other exhibits, summary reports, attachments and other documents related to the RSHC's work requested through the Freedom of Information Act.

The RSHC report was presented to the Land Bank board on Dec. 1, 2022 — two days after federal prosecutors charged a former employee with profiting from a sophisticated crime involving Land Bank properties.

The board asked for a written report that was completed March 16, but was held from the public until June 16, when it was posted on the Land Bank website without fanfare, public notice or news release.

The Land Bank was formed by the Cook County Board in 2013 to "address the large inventory of vacant residential, industrial and commercial property. Cook County President Toni Preckwinkle appoints a 17-member board of directors to govern what is billed as the "largest land bank by geography in the country."

The Land Bank operates "independently" to accomplish its mission: "to acquire, hold, and transfer interest in real property throughout Cook County to: promote redevelopment and reuse of vacant, abandoned, foreclosed or tax-delinquent properties; support targeted efforts to stabilize neighborhoods; stimulate residential, commercial and industrial development- all in ways that are consistent with goals and priorities established by local government partners and other community stakeholders."

Over the last 10 years, the Land Bank has come under federal investigation and heavy scrutiny from investigative reporters.

In March, former Land Bank employee Mustafaa Saleh pleaded guilty to wire fraud for his part in a scheme to recruit people to pose as independent buyers to purchase six Land Bank properties on his behalf.

Click on the images below to read the FOIAed information. 

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