It’s been quite a mystery, trying to figure out how Keller Williams Premier Realty got the nod to provide all of District 150’s realty needs. You would think, with homes sure to bring in over $2,500 each in commission, the district would bid out professional services like a realtor. But not so.
If the school district wants to acquire property, they don’t go directly to a realtor — they call their attorneys: Kavanagh, Scully, Sudow, White & Frederick, P.C. Their attorneys then work with a realtor whom they have retained for approximately 18 years now: Dinah Mannlein, formerly a Re/Max realtor, now general broker for the Keller Williams franchise office in Peoria.
In a letter from District 150’s attorneys dated 19 April 2006 to Controller and Treasurer Guy Cahill (obtained via an FOIA request), attorney David J. Walvoord explains the history of this contract arrangement:
This relationship began in 1988, when I was asked by an in-coming Superintendent for a recommendation for a real estate broker to help him relocate to Peoria. Of the several names I gave him, Ms. Mannlein was chosen. Shortly after that time, the District needed the services of a real estate professional to help acquire several properties for the District and [former Superintendent] Dr. [John] Strand and I recommended Ms. Mannlein to the Board of Education. Either the Superintendent or I sent her a letter retaining her on behalf of the District, she was to be paid a commission of five (5%) percent based upon the purchase price of any properties, which were part of a project, or, if there were isolated properties put on the market by their owner for sale, she was to receive the standard buyer’s side commission of 3.5%, which is paid by the seller.
The dates are a little sketchy, but it’s clear Ms. Mannlein has been the district’s realtor for a good long time. The letter goes on to share some of the projects she’s worked on, including “the acquisition of a number of properties for the Tyng School expansion, Whittier School and Glen oak School site expansions, Lincoln School site acquisition, Columbia Terrace purchases, Central High School–North Street purchases,” and “the Lindbergh lot purchase on North Sheridan.” Nice work if you can get it.
Walvoord also explains the working arrangements between the district, attorneys, and Keller Williams Realty:
The realtor works directly with me, as attorney for the District. They take directions from me and make reports to me. In turn, I keep the administration advised as to the status of the project.
The current purchases of properties on North Prospect and East Frye Streets at Glen Oak Park are under the same agreement.
Not only do reports and directions go through the attorneys, so do commissions on the sale of property. The settlement charges (i.e., commissions) for seven of the eight acquired properties were not reported on the HUD-1 settlement statements. Instead, Keller Williams billed Kavanagh, et. al., P.C. for the commissions, which are as follows:
| Address | Sales Price | Commission |
|---|---|---|
| 2102 N. Prospect | $140,000 | Paid by seller |
| 2126 N. Prospect | $98,000 | $4,900 |
| 2138 N. Prospect | $82,000 | $4,100 |
| 2142 N. Prospect | $90,000 | $4,500 |
| 2144 N. Prospect | $89,000 | $4,450 |
| 2206 N. Prospect | $120,000 | $6,000 |
| 2208 N. Prospect | $133,500 | $6,675 |
| 2212 N. Prospect | $125,000 | $6,250 |
| TOTAL | $877,500 | $36,875 |
Except for the one property noted above, the sellers are not paying the commissions on these properties — the school district is, albeit indirectly.
Incidentally, I’ve never met Ms. Mannlein, but I’m sure she’s a very nice person. According to a press release from the Peoria Area Association of Realtors, she won the Association’s Distinguished Member for Community Service Award “for her exceptional volunteer work with Peoria Junior League, Children’s Home, Peoria Symphony, American Cancer Society, Methodist Hospice, Family House, Peoria Zoological Society, Peoria Garden Club, Crab Orchard Homeowners Association, and her church.” No one could accuse her of not giving back to the community.
That said, I’m still surprised that this contract for realty services never comes up for review or renewal. Not that I have any beef with Ms. Mannlein being the district’s realtor in perpetuity (we should all be so lucky), but doesn’t such an arrangement seem unusual for a public body? To provide all the district’s realty business (and commissions) to a single realtor for almost 20 years without any kind of review?
I’m just asking.