Two years ago we began looking into the Taste of Park Ridge (“TOPR”) and how it came to be operated by a private corporation, Taste of Park Ridge NFP (“Taste Inc.”), that was formed for no apparent reason six years ago by some of the people who at that time were identified for appointment to an “Ad Hoc Committee” of City government being formed to run TOPR for the City.
What started out as curiosity became concern upon our discovering that Taste Inc. had failed to file any IRS Form 990s (the income tax returns required for not-for-profit organizations with annual revenues over $25,000) or otherwise account to the City for its stewardship of TOPR. That concern was heightened when we discovered that Taste Inc. had contributed $1,000 to the campaign fund of Bob Dudycz, one of the original Taste Inc.-sters, in September 2007.
That concern turned to skepticism when we discovered that Taste Inc. voluntarily dissolved itself as a 501(c)(3) corporation in February 2009 and then re-incorporated as a 501(c)(6) corporation in March 2009, with no record of what it did with the money the original Taste Inc. could be expected to have had on hand when it dissolved. What also caught our attention is that 501(c)(6) not-for-profits can do a few things 501(c)(3)s can’t, like use its funds for lobbying and political campaigns.
With rampant corruption seriously impairing the public’s trust and confidence in govenrment here in Illinois, we frankly wondered what was going on with TOPR and Taste Inc., and why our City government seemed to be oblivious to it.
Because when it comes to having trust and confidence in City government, what’s the average Park Ridge resident supposed to think when he/she learns that the City Council, without any known explanation, completely abandoned the TOPR plan [pdf] it debated and approved on June 6, 2005, when it virtually handed TOPR to Taste Inc. without even requiring a bid, a formal contract, or any accountability?
What’s the average Park Ridge resident supposed to think when he/she learns that, instead of the TOPR “profits” going into the City’s coffers as the Council originally intended, those profits not only end up in Taste Inc.’s bank account but the City also gives Taste Inc. approx. $23,000 in City services free of charge?
And what’s the average Park Ridge resident supposed to think when he/she learns that our elected representatives at City Hall have let this happen for six straight years without any serious effort to hold Taste Inc. accountable for all those “profits” that might total more than $350,000, judging by the $65,000 “profit” reported on the only IRS Form 990 tax return [pdf] (for 2009) there is a record of Taste Inc. having filed during the six years it has run the event?
Why is it that two mayors and a total of 18 aldermen have consistently turned a blind eye to this situation? Is it because of the popularity of the event itself? Are they afraid of demanding (or even merely requesting) some real accountability from the folks who run Taste Inc – Dave Iglow, Albert Galus, Jim Bruno, Dean Patras, Sandy Svizzero, Barb Tyksinski and John Warnimont – for fear those folks might walk if they can’t continue to treat TOPR as their own?
As we stated in our last post, the City Council actually got it right on June 6, 2005, when it approved a TOPR plan that would have entrusted that event to an “Ad Hoc Committee” of City government, accountable to the City Council, with its meetings subject to the Illinois Open Meetings Act (“IOMA”) and all “profits” going to the City. Mysteriously, that plan was abandoned almost immediately; and the mayor and the aldermen who conceived of and approved that plan seemingly became afflicted with collective amnesia.
So we call on the current Mayor and City Council to take their collective heads out of the sand on this issue and re-take ownership of TOPR for 2011. They should implement the TOPR plan approved by the Council on June 6, 2005, by creating the proposed “Ad Hoc Committee” and offering the Taste Inc. officials positions on that committee. And we call on those Taste Inc. folks to accept that offer – if they truly are the public-spirited volunteers committed to running the City’s premier civic event without any expectation or hope of personal gain, as they claim to be.
From what we’ve seen of our public officials and the Taste Inc.-sters, we think the chance of that happening is just about zero. But we’d love to be proved wrong.
25 comments so far
While we are at it,do ya thing the Mayor ever taps himself a free one while he is working the tent??? Corruption is everywhere!!
By the way, I’m sure that all these folks will jump at your suggestion. After all, who would want you folks to think they were not public spirited?? There is nothing personal or political about you, right?? All of these posts are strictly “piblic spirited”. Nice to have a good laugh with my first cup of coffee!!!
5:30
If the people who run Taste Inc. aren’t in it for personal gain, then why wouldn’t they “jump at” the suggestion to run a city-sanctioned Taste of Park Ridge committee?
Or if for some unknown reason they want to keep running Taste through Taste Inc. corporate, that’s fine so long as they give their profits to the city. That would clear up any question about why they are doing all this volunteering.
I am still waiting for somebody from Taste Inc. to say, yes or no, whether Taste Inc. filed Form 990s for 2005, 2006,2007 and 2008. If they didn’t and had revenues over $25,000, which I have to assume they did, they violated the law. If that is the case, they should not be allowed to have anything to do with Taste of Park Ridge, either as a corporation or as members of a City Commmittee.
PW: Comments on ParkRidgeUnderground make it sound like your postings about TOPR are to get TOPR for Tony Svanascini of American Eagle websites. Is that true?
EDITOR’S NOTE: Our position on TOPR and Taste Inc. is as reflected in all of our posts on the matter, including the most recent ones that advocate for the City Council to start running TOPR the way an overwhelming majority of aldermen (14-0 and 10-4) voted to do on June 6, 2005; i.e., having TOPR run by a City committee subject to IOMA and with all profits going to the City.
If Mr. Svanascini or any other Park Ridge resident wants to participate in TOPR on that basis, we would encourage them to seek appointment to that City committee.
7:39:
“That would clear up any question about why they are doing all this volunteering”.
Yes, you are right!!! For god sake why are these people doing all this volunterring!?!?! Caring about the city!!! Tring to get business for their stores. We can’t have this!!! We need to clear up why they are volunteering!!!
But with all respect, you are missing where the real money is. How about some of these guys volunteering for food drives?? Indian Scouts?? Battered women?? Don’t we need to know why are doing all THIS volunteering??? Hey!!! What about Christmas lights??? Now I bet there is huge cash in that. I bet you want to know why they are doing THAT volunteering.
Hey Mayor. One of my favorite quotes from your website is about shelters. On that issue you say the following about your opponent…….”Finally, if I had been mayor the past two years, the homeless shelter would not have been turned into a political football that divided our community and even some of our church congregations. I would have used my leadership position to help strike a balance between the positive aspects of helping the homeless and ensuring the safety and security of all involved. Unfortunately, that was not the tack taken by the current mayor, and the result is now history”.
Lovely!!!! Now where the hell is your “leadership position” on this issue???? Political football anyone??? You have not lead on this issue Mayor. This blog that you post on beats the hell out of this event that you tend bar at on a regular basis. What are your thoughts. Is it OK with you that a group that clearly supports you beats up local business people who currently have the approval of local government to do what they are doing while you sit scilent and even participate in the event. Is that leadership???
anon on 07.12.10 10:38 am
you make a good point. it is a bit odd that the mayor would allow his confederates to bash the event that he gladly tends bar at. It seems kinda two faced. and another poster mentioned something about the american eagle guy wanting to run the taste. since the american eagle guy already stated in a previous post about how he only offered to pay for the fireworks because his family would receive the funds, that kinda sounds two faced as well. Clearly shows a pattern of self interest (schmidt tendng bar and savicinni paying for fireworks) that frankly seems to be something more citizens should be concerned with especially since american eagle has a city contract and the owner is the mayor’s biggest campaign donor. I think the citizens should be worried because Schimdt’s “leadership” has not lead to anywhere good. But maybe his political vision is as impaired as his physical vision seems to be.
Nonsense. All nonsense. I enjoy reading the Watchdog, but I do think the constant haranguing about the Taste is a bit much. However, the American Eagle conspiracy theorists out there who are trying to make mountains out of baby mole hills are complete idiots. Having read all these posts for the past week, I am convinced it is time for both sides to take the advice of our illustrious former mayor and “mooooooooooooooooooooooooooooooooooove on.”
2:32 PM:
We don’t consider Taste Inc.’s pocketing of $65K in “profit” that arguably should have gone into the City’s coffers last year as “nonsense.” Nor do we consider as “nonsense” that Taste Inc. has not accounted for what might be over $300K (at $65K/year) in profits since the City Council inexplicably handed over TOPR to Taste Inc. in 2005, especially when Taste Inc. does not appear to have filed the required Form 990 income tax returns for those first 4 years it ran TOPR.
So we don’t intend to give up on asking how Taste Inc. got this sweetheart, no-bid deal from the City in the first place; or why it continues to get this sweetheart, no-bid deal from the City despite appearing to be a multi-year income tax filing scofflaw; or what happened to whatever profits it made those first four years Taste Inc. was in the TOPR business; or what’s the reason for its changing from a 501(c)(3) to a (c)(6) last year.
Many/most of the times Howard Frimark issued his calls to “moooooooooooove on!” were when he was getting tuned up about some questionable position he was taking, or some questionable conduct in which he was involved. So we have no intention of “moooooooooooving on” until Taste Inc. comes clean, and until the City Council either starts enforcing the original TOPR deal it approved in June 2005, or formally rescinds that deal and formally gives TOPR to Taste Inc. “on the record.”
Anonymous on 07.12.10 2:32 pm
How can you be sure the Taste members aren’t pocketing hidden profits?
How can you be sure American Eagle and Watchdog haven’t cooked something up surrounding control of the Taste?
There are unanswered questions on both sides. I would like to hear the Mayor get to the bottom of it all before we “moooooooooooooooooove on”. The Mayor posts here. Why doesn’t the Mayor say something?
4:02
Take the Taste away from Taste Inc.
Don’t give it to American Eagle or Watchdog.
Ask him specific questions.
2:32/5:23:
Wow. You describe the speculations local business people have been subjected to by this blog as “a bit much” and then call those who have dared to question what is going on with the Mayor’s biggest contributor and City vendor, American Eagle, idiots?
You want to take the Taste away from the people who have successfully run it based on speculation without asking the Mayor to investigate. So your solution is to punish the people who have run it based on nothing more than the speculations in this blog? I sure hope you aren’t a lawyer!
Why would you have to even say don’t give it to American Eagle or Watchdog, was that ever in consideration?
Are those questions specific enough? By the way, I remember a certain Alderman who was once asked why he didn’t disclose something about an economic relationship he had and his response was, “Nobody asked.”
I would hope the public doesn’t have to begin asking the Mayor extremely detailed and specific questions before he’s willing to fulfill his campaign promise of total transparency.
Below is a post from a thread on this blog by the Mayor. Apparently he wanted to give the impression that he is on this thing!!! The problem is that the post is from last July (see time and date below).
9:05. You are correct that I have been paying attention. You are also correct that I have been quiet. That was deliberate on my part because I did not want to create unwarranted controversy prior to this year’s Taste which might have eclipsed the event.
The issue of the City’s involvment in the Taste and other events will be addressed at the City Council’s Committee-of-the-Whole meeting on August 24. That will give the Taste organizers and the City time to accumulate the financial information necessary to make a reasoned assessment of the situation.
The public should understand that this review is not directed solely at the Taste. There are a number of events where the City provides services but receives no reimbursement. The Council will be engaging in a broad review of all of these events. Stay tuned.
By Mayor Dave on 07.13.09 9:24 am
Apparently his concern about the event is such that it prevents him from doing virtually anything for not just one but two years – more if you count his time as Alderman. How’s that “broad review” going?? Tooooooo funny!!!
Why is it that some of you talk about the Taste like it belongs to Iglow, Galus, etc. If those June 6 minutes are correct, thats not what the council voted on.
Where’s the speculation? I checked Guidestar myself and there’s only one 990 for Taste of Park Ridge there, and it’s the one Watchdog posted shwoing Taste making $65,221 last year. No other ones. That’s not speculation.
I’ve lived in Cook County long enough to know that when somebody’s got some government deal that they want to keep secret, its hinky. This is hinky, starting with it being Frimark’s idea.
If Taste Inc.’s operators aren’t getting dough from putting on TOPR, either cash in their pockets or getting to use the cash how they want to, then why are they doing TOPR? If you say they’re doing it for the community, then why can’t they do it for the community as volunteers on a city committee? And $65 grand in one year is more than American Eagle made in 5 years, so the real dough is going to the guys in orange, and I don’t mean the Dutch soccer team.
Now I am really scratching my head. What am I missing here??? Line 22 of the form you linked to says the following:
Cash, savings and investments………$68,696.
It goes on to list total assets as $69,696. Now I am not an accountant but please tell me something. Is it not possible that that money that way made (in this case approximately 65K) is spent throughout the year for all the things necessary to put on the taste for the following year leaving them with little or no savings or assets until the “profits” from the next year are realized?
We also know that expenses were approximately 61K. So if we assume that the expenses for this year were approximately the same, they started the year with 65K to cover those expenses. They had just enough money in the bank to put on another taste if you will. Are you suggesting you want it to be run at a zero balance at the end of each year??
Anon @ 659pm…In fact, I kept my promise and raised the matter at the August 2009 committee meeting. My position was, and is, that any entity which utilizes city services for an event should pay for those services out of gross receipts. The Council asked for more information about what other municipalities do and eventually determined that they were not going to require repayment.
Some of you question how I can enjoy the Taste and even participate in it as a volunteer at the beer tent when the author of this “evil blog” chastises the Taste Committee. The answer is simple: I do not control this blog or its author. He, like you, is entitled to his opinion. Anyone who follows it closely knows that we do not always see eye-to-eye.
I personally feel the Taste is a great event, and I do not want to do anything that diminishes it or endangers its continued success. What I do want to do is my job, and part of that is safeguarding the City’s financial health. To that end, I will continue to enjoy the Taste, and I will continue to insist that the Taste organizers should be required to utilize some of their profits to pay the City for services rendered in support of the Taste.
Mayor Dave it is good for you to respond.
It is no secret who your friends and advisers are and who it is who runs this blog and who it is that complains bitterly year after year about the way the Taste event has been managed.
Your job goes well beyond simply safeguarding the financial health of the city. Your job is to represent all the interests of residents, taxpayers, and the local business community. A not insignificant portion of your job is to make sure issues and concerns are publicly addressed in a fair and balanced way.
You have failed to keep your promise of total transparency as well as failing to do those portions of your job which demand an even-handed treatment of the issues and those people under speculative attack by your most ardent supporters and apologists.
Your deafening silence on whether or not you believe the Taste group should be made to turn over all profits to the city, whether or not the local business owners who run the Taste do or do not have the right to organize politically and utilize some portion of their profits for doing so (they should not, if they do not reimburse the city for costs), whether or not you believe the city should run the event, whether or not anyone has expressed a personal interest to you in and about management of the Taste, whether or not you intend to pursue the posting of tax forms on not-for-profit websites (or requiring they be posted on the city website) as a condition of receiving city taxpayer support, and why you have failed to publicly request copies of federal tax returns from all the not-for-profit entities receiving city taxpayer support, and whether or not you intend to pursue an explanation of the apparent lack of Taste 990 forms prior to the 2009 filing and whether or not you believe that matter is relevant to and in the jurisdiction of the city’s concerns, are all failings of your administration and your leadership, personally.
When the issues about the Taste were first brought up, the goal seemed to be requiring financial disclosure for the purpose of getting reimbursement for the city’s expenses, particularly from the Taste event.
As time went by, the goal of transparancy and reimbursement seems to have faded to the background amid myriad other (questionable) concerns and pursuits, and still you have remained virtually silent, in your position as Mayor, on the back and forth debate taking place.
Though I suppose you can always choose to “mooooove on” from here.
Anon @ 1013am, I do not believe it is my role to mediate a debate on this or any blog, and I do not believe that this is the proper forum for me to address every single issue which is brought up.
You are correct. The original post dealt with the Taste, specifically financial disclosure and repayment. However, the discussion on this blog degenerated quickly into a shouting match about the Tastees v. Americaneagle which was completely irrelevant to the issues of financial disclosure and repayment. Even though my name was being bandied about rather freely, there was no point to wading into that quagmire. However, I will address a couple points you raised as they relate to the Taste.
I have pressed and will continue to press for disclosure and repayment. I did raise that issue last year and I will raise it again this year. However, I do not have the power or authority to do anything other than to raise the issue and ask that it be discussed. The bottom line is that unless a majority of the aldermen back me up on requiring disclosure and repayment, there will be no change. Therefore, if you believe that disclosure and repayment are appropriate as I do, then you should be pressuring your alderman to support me.
Last night at the COW, we received a detail of the Taste-related expenses incurred by the Fire Department. I asked that the Police Department and Public Works Department prepare similar reports. When those reports are complete, we will have a better idea about what the event cost the City. At that time, I will again ask the Council to require the Taste organizers to repay the City for those expenses.
Concerning the City receiving the profits, I understand that arises out of a measure passed by the Council in 2005. It is my recollection that the measure was superseded by a subsequent vote by that same Council which decided to let the Taste Committee keep the “seed money” and use it for the 2006 Taste. However, it is a fair point you raise and I will make sure I have my facts straight. If in fact that measure is still in place, then it should be enforced. Again, however, because of our system of government, it will take a Council majority to make sure that happens. I cannot mandate it.
On the issue of the Taste Committee organizing politically and perhaps making contributions to political candidates, that is a recent development which does cause me great concern. Yes, the Committee technically has the right to do so, but it would be morally reprehensible. I would venture to guess that 95% of the City’s residents have no idea that the Taste is not run by the City, and they would have no idea that the money they spent at the Taste might be used for political purposes.
Finally, I’ll try to put to rest the issue of a contributor of mine seeking to take over the Taste. At a social gathering last year, the owner of Americaneagle expressed his belief that the City should not lose money on the Taste as it has for several years. He mentioned that he could run the Taste and would pay back the City for expenses it incurred, as well as pay a percentage of the profits to the City or to one or more charities. And that, folks, was as far as it got-an idea that was never acted on. If he had pressed the matter, which he has not, I would have referred him to the City Manager because it is the City’s staff which sanctions special events, not the Council and certainly not me.
If you or anyone else has any further questions, comments or criticism you wish to direct at me, I strongly urge you to appear at next Monday’s City Council meeting. I am perfectly willing to address anything you care to raise in front of the entire Council, the citizens in the audience and the viewing public.
Seems mayor dave failed to do his job as alderman when voting for budget deficits, seems he has failed to do his job as mayor in demanding the same standards be applied to ALL groups receiving services from the city (read –campaign contributer and criminally charged Anna Dudzyk who produced the polish fest event last year).
Mayor dave only seems to be successful at failing. There’s leadership for you….
And in case anyone would like to verify the Mayor’s position on not being able to mandate to the council check out the video from last night’s meeting when it is available. Go to the part where the discussion on “contributions” to community groups is held and you will hear an unequivocal statement from the Mayor about how there should be NO such “contributions” for a few reasons, not the least of which is the sad state of the city’s financial affairs. Then hear one of the Mayor’s “allies” suggest a mere delay in the payment of the “contributions”. The hear Aldermen Ryan and Allegretti bemoan the ongoing delay and whine about how the city isn’t fufilling its obligation to make those “contributions”. Watch how all of this infolds and what finally happens. Then come back and talk about how the Mayor should be mandating or dictating council action. King of Park Ridge he ain’t.
Mayor Dave your response is lacking in so many ways and on so many levels I wouldn’t know where to begin.
As for your effort to “put to rest” the issue of your contributor and Taste, you have now publicly lied.
Mayor:
Ok….Let’s revisit the shelter issue. You remember that. That is the topic on your website that you reference as an example of the previous Mayor’s lack of leadership.
Much of the division and political football was fanned if not at times even created by the blogs. In your mind it was Frimark who allowed the issue to be divisive. Fast forward today. The same blog is fanning the flames on an issue that has the potential to be very divisive. You accuse the prior Mayor of lack of leadership. Guess what?? You were right, only now you are doing the same thing. You so not want to wade into a quagmire created on a blog yet it is clear the blog supports you. You have a real “leadership opportunity” that you choose not to use.
Unlike many in this town seem to, I do not know exactly who runs this blog, but I would highly suspect he/she/they were at that social gathering along with the owner of Americaneagle. Of course they would scream every time Howard had a “coffee meeting” with someone. Apparently it does not count as an issue if they are at the same gathering.
2:32pm… what the hell are you getting at? Get a lucid thought.
You are kidding, right? Yoy are going to bring up the PADS issue and compare it to this TOPR issue. Not even close man…not even close.
With today’s new post now up, we will end this discussion for now. But we will expect to resume it whenever Taste Inc. publicly presents its report to the Council; and, most likely, again when its IRS Form 990 for 2010 is filed.
Meanwhile, we wonder whether the Mayor or the City Council will have the nerve to ask the Taste Inc. folks: (a) why Taste Inc. didn’t file any Form 990s for 2005-2008; (b) all the reasons why the 501(c)(3) Taste Inc. voluntarily dissolved and then reorganized as a 501(c)(6) entity; (c) what happened to all the money the original Taste Inc. took in for its first 4 years of operation; and (d) why Taste Inc. deserves a no-bid, no-contract, City-subsidized monopoly of TOPR.