Andrew Hamilton has made millions through an obscure economic
development tool that has flown under the radar of Illinois government watchdogs
for years. But recent actions by Gov. Bruce Rauner and the General Assembly
suggest that cash flow could soon come to an end.
Illinois is home to 10 regional development authorities, or RDAs. These
little-known agencies are spread across the state, located in regions determined
to need special economic development assistance. Their powers and revenue are
derived primarily from their bonding authority. RDAs can secure longer-term
financing at a lower interest rate on behalf of private businesses, and can help
establish enterprise zones, which come with their own subsidies and tax perks.
Hamilton is listed as the executive director of eight of the state’s 10 RDAs,
while also running a closely related side business called Opportunity Alliance.
The company’s website, which was recently taken down but is accessible via the
Internet Archive, boasted its ability to secure state enterprise zones and tax
abatements, as well as other “government access services.” The Illinois Policy
Institute was first to report on Hamilton’s private company and control of
multiple RDAs.
RDAs overseen by Hamilton have facilitated hundreds of millions of dollars in
financing to private businesses over the years, as well as enterprise zone
benefits. In return, he and Opportunity Alliance have received more than $2
million in pay and reimbursements from those RDAs since 2010, according to
documents obtained under the Freedom of Information Act.
In a May email, Hamilton wrote that an RDA where he serves as
executive director has never approved a deal benefitting a client of his side
business.
But what new documents reveal is that two RDAs themselves – the Upper Illinois
River Valley Development Authority, or UIRVDA, and Western Illinois Economic
Development Authority – were clients of Opportunity Alliance. Other clients of
Hamilton’s business include Phillips 66, Walgreen Company, Monsanto and Motorola
Mobility.
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Hamilton’s largest benefactor is UIRVDA, which has
paid him more than $537,000 in executive compensation and nearly
$292,000 in reimbursements since 2010, while also channeling over
$128,000 to Opportunity Alliance. While records
obtained by the Institute only date back to 2010, Hamilton has
served as executive director for three authorities – including
UIRVDA – since the mid-1990s, meaning these records likely only
capture a glimpse of the official’s questionable business
arrangements.
Payments from these RDAs might not last much longer, however, if
reform efforts by the Rauner administration find favor in the
General Assembly. In early May, the governor’s office sent a letter
to the Illinois Department of Commerce and Economic Opportunity
requesting that the agency stop approving any enterprise zone
applications brought by RDAs until state lawmakers pass a series of
reform measures.
Some of Rauner’s requested changes included:
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“[T]hat no person with any form of financial
interest or business relationship, formal or informal, in any
economic development consulting, lobbying, or advising business
may serve as an RDA executive.”
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“[T]hat no person serve as the Executive
Director of any more than a single RDA.”
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“[T]hat the executive director of each RDA have
his/her primary residence in one of the counties covered by the
RDA.”
Rauner’s requests were largely reflected in an
amendment to Senate Bill 2367. The House passed the measure
unanimously May 31, and it now awaits a concurrence vote in the
Senate.
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