 William Brandt, chairman of the Illinois Finance Authority, told The
Associated Press that the deal was never seriously considered
because representatives of the Tribune Co., which owns the ballpark,
never disclosed revenue projections to back it.The federal
government claims it has secretly recorded conversations of
then-Gov. Rod Blagojevich instructing aides to pressure Tribune to
fire unfriendly editorial writers from its Chicago newspaper before
he would OK a deal he believed would save Tribune owner Sam Zell
$100 million in capital gains taxes.
In a Nov. 30 conversation overheard by the FBI, Blagojevich
"discussed the importance of getting the IFA transaction approved at
the IFA's December 2008 or January 2009 meeting" because Blagojevich
was considering leaving office in January, according to a criminal
complaint.
Brandt reiterated Tuesday that he was unaware of Blagojevich's
alleged timetable or other wrongdoing; the fact that the IFA
suggested Tribune make a presentation in December or January was
coincidental.
Blagojevich and his chief of staff, John Harris, were arrested
Dec. 9 and indicted last week on a wide range of federal
allegations, including trying to pressure Tribune to fire critical
editorial writers in exchange for state assistance on Wrigley.
Brandt said the only time he talked about the baseball plan to
the ex-governor, who was impeached and removed from office in
January, was at a meeting last fall in which Blagojevich spoke to
participants about the importance of a Wrigley deal.
The AP reported Monday that a Nov. 19 proposal Tribune floated
called for IFA to sell $300 million in bonds, lend it to a newly
created corporation and, through a complex venture, lease the
stadium to a new owner for 30 years at $25 million a year.
[to top of second column] |
The Tribune would get $45 million upfront and a 5 percent equity
share in the lease. The IFA, through the new corporation, would
maintain a 95 percent stake.
But the IFA grew frustrated about weekly meetings with rooms full
of lawyers but no results, Brandt said. He said the authority needed
to see several years' worth of revenue from ticket sales, vendors,
parking, leases for other events and perhaps television contracts.
The bid for the Cubs might have hamstrung Tribune. Brandt
believes Major League Baseball would not allow Tribune to hand over
the receipts until the team had a buyer.
Tribune's Dec. 8 bankruptcy filing also complicated matters, said
Brandt, who still believes a deal for the century-old ballpark can
be completed.
A Tribune Co. spokesman declined comment. No one associated with
Tribune or the IFA is charged with wrongdoing.
[Associated Press;
By JOHN O'CONNOR]
Copyright 2009 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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