I received a copy of the following letter in the mail from an anonymous source. The letter is on State’s Attorney letterhead and is signed by Kevin Lyons. It’s not addressed to anyone in particular — in fact, it looks more like a memo than a letter:
RE: Persons and organizations vested in the Peoria Riverfront Museum project
On Thursday, August 13, 2009, the Peoria County Board certified a necessary resolution that will inform the Illinois Department of Revenue that, commencing January 1, 2010, a special sales tax shall be collected throughout the County of Peoria (County) to carry out the objectives of the March, 2009, referendum. The County is pleased to partner with your efforts, and with the fine men and women of Caterpillar, to organize and shape a superior project that, when complemented by The Caterpillar Experience, will serve well the many interests of this enterprise and all of Central Illinois.
To that end, the County of Peoria will provide the appropriate guidance for creating the organization(s) necessary to develop and to carry out the objectives of the project. As this is no time to learn as we go, I have engaged well experienced counsel at the law firm of McDermott Will & Emery to help provide for this important detail and direction. I have, in part, carefully selected this reputable firm because of their long history of experience with issues relative to museums, including those public and private and blended, and their appreciation for the broad collaboration of interests that birthed and brought this project to its place today.
Because it will be largely funded by public money, through sale of non-general obligation revenue bonds, it is important that the project commence and operate in compliance with public policy and statutes. A gathering of all interested parties will be planned for September so that the County may provide detailed framework that can be followed in order to formally organize, commence, develop, construct, and carry through the project.
This will involve, but certainly not be limited to, the following items:
- The organization and eventual tax exempt qualification of a museum authority. The museum authority would serve as lead coordinator for the project’s space, programming, and development.
- A description of roles and responsibilities of a museum authority and the steps required to form a board of directors and all other necessary project components.
- An explanation of how funding will be delivered and how the County and the museum authority will develop and refine the project, and how entities (licensees) will occupy and operate within the project.
- As with any County capital development project, construction of the project would be bid, let and overseen/administered by the County.
- The County would engage the museum authority to operate the project pursuant to the terms of an operating agreement and, upon completion of construction of the project, and pursuant to the operating agreement, the county would deliver the project to the museum authority for operation.
- The museum authority would annually account to the County regarding financial performance and community benefit.
- A clear and partnered coordination with Caterpillar, Inc., to insure that the project and The Caterpillar Experience, and the many shared goals and responsibilities attendant thereto, are smoothly addressed and accomplished.
- Although licensees and entities may be otherwise self-identified, it is understood that the project will be named exclusively Peoria Riverfront Museum.
Your overwhelming efforts, along with ballot box support and the work of others, can permit you and your communities to now step closer to the realization of a magnificent facility along the Peoria riverfront. A September gathering will further assist everyone in understanding, in greater detail, how this significant project can now launch and grow.
Thank you for your meaningful contributions on behalf of the citizens of Peoria County and all of the greater Peoria area.
Very truly yours,
KEVIN W. LYONS
State’s Attorney
There are a few notable things here:
- Transfer of Power: First of all, the letter states that in order for “the project [to] commence and operate in compliance with public policy and statutes,” a tax-exempt “museum authority” would need to be organized. This is interesting because there’s already a tax-exempt umbrella organization called the Museum Collaboration Group (MCG). The MCG has, to this point, been calling the shots on everything regarding the proposed museum. But now, it appears that will be coming to an end.
The new “museum authority,” under the guidance of a newly-established board of directors, will “serve as lead coordinator for the project’s space, programming, and development.” It will be a separate entity from the County, and will also be in charge of museum operations.
This can be characterized as nothing less than a transfer of power. I suppose it could just be a renaming/reorganization of the MCG, but why that would be necessary (other than providing some additional billing for lawyers) is mysterious to me. It will be most interesting to see who gets a seat on the new museum authority’s board of directors . . . and who doesn’t get a seat.
- Bidding/letting overseen by County: Museum representatives have long touted their “unprecedented agreement among Caterpillar, the Museum Collaboration Group and the Greater Peoria Area Contractors and Suppliers Association,” promising that “both the Peoria Riverfront Museum and the Caterpillar Experience would be built with 100 percent local union labor.” However, that may be a promise they can’t keep, given that Peoria County Code 6.5-21(9) requires:
All bids and contracts for the purposes of public works, as defined and provided for by the Illinois Prevailing Wage Act (Act), 820 ILCS 130/1 et seq., prohibit the prime contractor and all participating subcontractors from discriminating in employment practices. This act requires that the prevailing wage shall apply to these projects. [820 ILCS 130/2 specifies: “‘Public works’ means all fixed works constructed by any public body, other than work done directly by any public utility company, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds.”]
Clearly, under this statute, a non-local and non-union shop could very well have the winning bid, and the County would have to award it. This isn’t a new revelation. The question came up during the County’s public forums on the referendum, but the local unions continued to support the referendum anyway, and museum supporters continued to promise that local union labor would definitely be used. It will be interesting to see what bids come in, and who wins.
- Don’t change the name: It looks they want to avoid this fiasco from happening again. Apparently the name of the Peoria Riverfront Museum is now non-negotiable.
Considering the shim-sham performance of the current museum board, I would think they would want to start fresh. Of course, you all know the old Peoria motto:
If it’s broke…..why fix it?
Of course, I’m just a lowly member of the Peoria County Board who requested and twice received an answer from our administrator in front of the full board, that the county would not take over the museum project until all the money had been raised as promised by the private sector.
We had a full board session Thursday. Our administrator who had to know this missile was forthcoming did not mention it to the full board.
So if the money was raised, why were’nt we told? Also, we were given a copy of a letter from Caterpillar stating that they were not fulfilling their total pledge amount at this time nor did the letter re-confirm as to how much they were going to spend of the originally promised $41 million Visitors Center. Or that they still planned to build one and when.
It has reached a point where iot appears the majority of the board has given our adminstrator the power to do what is beng done.
I personally voted against this sometime in the future, black or white elephant, and I do not agree with what is transpiring.
“A September gathering will further assist everyone in understanding, in greater detail, how this significant project can now launch and grow”.
Will this be a county meeting,Kevin W. Lyons meeting? Public notice?
“RE: Persons and organizations vested in the Peoria Riverfront Museum project” as a taxpayer and resident of peoria county is the public included in the above statement the tax passd and now is the public is vested?
I smell a takeover by Peoria County.
Calling Merle Widmer……….
Martin,
I smell a takeover by the taxpayers. i learned these things tonight. Andrew Rand, Tom O’Neill and Steven Morris are the three board members working with the museum group. Also that the Roundtable is still short $6 million and there is no information on the museums group pledge to the county of a guaranteed $3 million and and assumed $5 million endowment fund.
I suspect as I predicted that Brad McMillans pledge to the County Board that the private sector would finance 2/3 rds of the $78 million will be reversed.
Keep watching for stimulus money to finance this economy driving questionable venture. Do I need to remind everybody that the PRM Committee spent from 300,000 upwards to “educate” the public as to why it was in their best interests?
Merle: So, in essence, the PRM is now a horse of a different color?
Martin: I agree — I would like to attend this September meeting as I am a person ie taxpayer vested in the PRM which seems to be changing all the time.
Meanwhile, on other fronts, essential basic city services are being cut and associated personnel are being told to take wage freezes, layoffs et al.
CJ: When we were working on educating the public for the April referendum, there was never any evidence of a MCG — not for profit group at the IL Sec of State’s website or a corporation as described in that 200 plus page handout from the County.
Other unknowns:
****What is happening with the land deal with the city?
**** If three county board members are working with the museum group — was that ever discussed in a public meeting — full-board or a committee meeting?
**** What are we paying Mr. Johnson for if citizens are being represented by three county board members?
**** How much is the hourly rate for McDermott Will & Emery?
**** Who is paying the tab for MW&E — ie which budget — Lyon’s or the County’s or from some other money pot?
**** What type of funding level will the public be funding for the PRM?
**** What will be the bond repayment period?
The MSM shares that the economy is turning around — well, many people I know are still unemployed or underemployed from being laid off and not being able to find comparable employment.
So many questions and no firm answers — at least not in the public arena to date.
Additional reasons why the county should not be getting into the museum business.
Well McDermott Will and Emery is one of the top 10 largest firms in the US, so you can probably assume what their hourly rate is.
Other questions to ponder:
In previous documentation, tapayers were told that Lakeview needed to be at the helm as it was an established museum and that would help with securing grants. Lakeview’s accreditation was originally for a planetarium and now is listed in the general museum catergory.
AAM accreditation is an involved process. Two criteria of the many listed listed at the AAM site:
**** have been open to the public for at least two years;
**** complete the Self Study portion of the application process which takes one year to complete.
That appears to be a minimum three year process unless these two requirements can be somehow combined to make it a two year process before accreditation is achieved …. or unless it brings us back to #8.
8. Although licensees and entities may be otherwise self-identified, it is understood that the project will be named exclusively Peoria Riverfront Museum.
Then perhaps Lakeview will retain its current accreditation with the AAM and its long time Smithsonian affiliation.
“county board members are working with the museum group”
Is this collaborative or is it corruption?
“Andrew Rand, Tom O’Neill and Steven Morris are the three board members working with the museum group.”
What do they stand to personally gain from this? Why just those three? What does “working with” the museum group specifically mean? Who is going to award the bid contracts?
An international Law Firm with “long history of experience with issues relative to museums”
Donations? It looks like their specialty has to do with wealthy patrons donating art objects… with the exception of Michelle Burke who is from the Chicago office.
“She is a part of the Firm’s Intellectual Property, Media & Technology Department and concentrates her practice on trademark, copyright and unfair competition counseling and litigation, including the protection of copyrights and trademarks in cyberspace.”
Her specialty (“museums”) includes this phrase : “As a result of her broad experience, Michelle is often asked to counsel clients and other lawyers in connection with possible litigation resulting from breach of service contracts”.
Maybe it is this: “She has advised international corporations on the organization and operation of intellectual property holding companies to ensure that their valuable corporate names and trademarks are not put in jeopardy as a result of improper transfers or licensing”
Preparing already for litigation? What about the Janssen Law Center?
Or there is Sarah Chapin Columbia from Boston who has an interest in the arts:
“She also counsels clients on overall intellectual property strategy and positioning, including litigation avoidance. She also has extensive experience in representing clients in private arbitration proceedings under the rules and procedures of the International Chamber of Commerce, Swiss Chamber of Commerce, World Intellectual Property Organization, American Arbitration Association and other organizations.”
Litigation and private arbitration… I wonder if District 150 will use them while they are here?
kcdad: Perhaps the intellectual property strategy is relative to IMAX and/or the Smithsonian affiliation? If you use five or less county board members then the open meetings act is not put into play — wouldn’t want any pesky taxpaying members of the general public in on the details for spending taxpayer dollars.
Intellectual property laws deal primarily with patents, trademarks, copyrights, etc. Evidently PRM and Peoria County are forming a new ‘shadow unit’. I am wondering if and/or when the J Star will get wind of this. Do any of you believe that J Star will consider this news worthy?
Over many years of experience, once the JSEB of JS decides to support an issue; they strongly supported the musuem, they seldom, if ever, publish anything negative about the issue.
Once the public supported the museum, never mind the lops-sided promotion funding and the close vote, it has become a mandate for museum supporters and all obstacles will be overcome.
Merle,
I hear you. Sometime back I posted on a J Star “Our View,” which argued it was high-time for the City of Peoria to “slice meat and bone…,” referring to budget and city employee cuts, etc. This same ed argued against the raising of ANY new taxes.
Of course Peoria County Board [no specific members named] claimed to oppose the raising of any [new] taxes as well.
Funny how all of this came sometime AFTER the proposed [approved] museum sales tax……
Know we know the J Star considers this story news worthy. Wonder what stand they will take on THIS issue?