Public Watchdog.org

Park Ridge Beats Chicago To “Taste” Privatization

08.31.10

It looks like we were wrong about private corporation Taste of Park Ridge, Inc. (a/k/a, “Taste Inc.”) and its no-bid monopoly of the City’s premier civic event, Taste of Park Ridge (“TOPR”).  And are we ever embarrassed. 

For the past couple of years we’ve criticized the people who run Taste Inc. for taking $20,000+ of free City services each year while raking in big bucks from their 3-day summer event.  We’ve also been critical of the current and past City Councils who foolishly gave away this event back in 2005. We thought the City should “own” TOPR and get all the profits – like the City Council originally intended when it rubber-stamped then-Mayor Howard Frimark’s TOPR plan.  But we’re now re-thinking that idea.

What caused this change? Chicago Mayor Richard M. Daley’s recently announced goal of privatizing Taste of Chicago.

If you read Saturday’s Chicago Tribune story (“Privatizing Taste a risky move for Daley,” Aug. 27), you know that Taste of Chicago is the latest big-ticket asset Daley wants to put on the auction block in his increasingly desperate attempt to stave off financial catastrophe as more than two decades of systemic graft and corruption are finally coming home to roost.

Who would have thought that our own Taste Inc-sters were 5 years ahead of municipal mogul Daley in figuring out how to shanghai a high-profile civic event and put money in private pockets…compliments of the taxpayers?

But while we may have beaten Daley to the privatization of our major civic food festival, there will be one big difference between how Daley and the Chicago City Council will do it versus how Frimark and the Park Ridge City Council did it.

Daley will privatize Taste of Chicago only “if City Hall gets offers that make sense.” That’s why Chicago will be looking for bidders willing to pay for the right to run that event.

Here in Park Ridge, however, the taxpayers continue to pay for the privilege of having Taste Inc. run TOPR on a no-bid basis while piling up cash ($65,000 in profits just last year alone) that its operators can now legally use for lobbying and political activity.

Ironically, in Chicago that kind of deal might be branded “graft and corruption”…once the U.S. Attorney’s Office got wind of it.

In Park Ridge, it’s just “volunteering.”

27 comments so far

Taste Inc. guys,

Did you stuff another $65,000 in your pockets this year? More? Have you guys cut a deal with the mayor and the council to let you keep doing it? How much of that cash are you giving to charity?

I am sure all the money went to the same place as the money generated by parking and concessions at the foreworks show. Wait a second, I am sorry. We have no idea where that money went either.

Earth to 149: the Park District puts on the fireworks show. The City contributes police and fire services to the Park District. So, ask the Park District about the parking and concessions income. The City has nothing to do with them.

Ahhhhhh I see!!!! Gee I was wrong!! In the case of the fireworks, the city donates services (the dollar value of which is almost exactly that of TOPR for 1 day versus 3) to an event that charges fees (concessions, parking) and the city has no idea now much was raised, where it went or if any of it could compensate the fire and police required. Your answer is go ask the park district. Wow you are right, that is different!!!!!

1:49 and 2:21:

PRU-dence, is that you? Or is it somebody else similarly obsessed with the annual fireworks show and/or the show’s principal donor?

Whatever.

The City is one of three governmental sponsors of the fireworks show, along with the Park District and Dist. 207. The fireworks show has no private equivalent of Taste Inc. running it and pocketing $65K while stiffing the City for $23K of services.

As we understand it, the Park District runs the parking concession and those fees are applied to expenses of the show. And last we heard, some group from Maine East was running the concessions under authority conferred by Maine East.  We’ll try to track down that bit of graft.

But tell us, PRU-dence (or PRU-dence impersonator), would you be happier if Taste Inc. used some of its $65K TOPR profit to donate the fireworks if it got Americaneagle out of the picture?

1. I have no problem with the fireworks show – I like it!
2. I have no problem with the donor, although I do not know him personally.
3. Obsessed?!?!?! The only time I have ever brought up fireworks show is in response to commpents by your or a poster hammering away at TOPR.

3:22 pm

We don’t hammer away “at TOPR,” which we think is a fine event. 

We hammer away at Taste Inc., which we think about the way a Chicagoan might think of that city’s wrought iron fence vendor, or its airport concession vendors – connected insiders getting sweetheart deals at the taxpayers’ expense.  Of course, Chicago’s sweetheart deals are far bigger than Park Ridge’s sweetheart deals, but the principle is the same. 

Obsession? Did the Watchdog actually accuse someone of obsession with the way an event is handled? It seemes like about 50% of the ink on this blog is spent on TOPR, an event that according to last year’s figures cost the City $11,000 in added expenses. 0.02% of the budget. If there is anyone with an obsession, it is you PubDog.

You math is way off about the $65K being one year’s surplus. You are misinformed when you mention that TOPR did not file tax statements. And you have an obvious beef with the people who run TOPR, who would probably rather ignore this blog than have a debate with you in anonymity while they are not.

The funny thing is that all of this could be resolved if any interested party (you, the Mayor, Mgr Hock, the Council, or any person in town) would simply ask the Tastees, rather than fling insults from anonymity.

I don’t know why I keep feeding you this bait, but I can’t help myself from speaking out against this nonsense.

having examined the issue for the past two and half years, the pubdog editor seems

amazingly obtuse or purposefully remiss in recognizing a key fact: The city services

provided are and always have been under the direct control of the city. Thus the only

public funds expended are fully accounted for by City decision makers. All other aspects

of funding are private dollars generated via sponsorships and the willing participation by

the event attendees. Thus the misdirected attention (if you are really about the “public

dollars”) pubdog has placed on a private organization seems nothing more than an attempt

to harrass and disparage by the editor, the mayor and the owner of a company that does

have contract relationships with the city .

If it were a sincere effort to find out how much the City provides in services, a simple conversation with the appropriate staff member would provide those answers, but that is not what the Pubdog editor, Mayor and Business owner are after..Is it?

3:46:

When figuring the total value of City services provided to Taste Inc., you have to include both the “direct additional expenses” and the “indirect reassigned personnel costs” – approx. $23,000 – because those “indirect” costs are for City employees who otherwise could have been doing something besides babysitting TOPR on City time.

Our “math” about last year’s $65K “profit” is based on Taste Inc.’s first-ever IRS Form 990.  Are you suggesting that Taste Inc. is scamming the IRS?

No Form 990s have been posted on GuideStar for Taste Inc. prior to for 2009. GuideStar gets them from the IRS, so we’re going with GuideStar until Taste Inc. proves otherwise.

We have no “beef” with the people who run Taste Inc. We just vigorously object to how they feed at the public trough to the tune of $20K/year ($120K over 6 years?) while pocketing $65K/year for the only year they reported, ALL of which should be going to the City.

If we had such a lucrative sweetheart deal, we would voluntarily produce ALL information, financial and otherwise, to the public on our nifty Taste website.  So what’s Taste Inc hiding?

4:54:

We don’t need to “disparage” an organization (Taste Inc.) that sticks $65K in its pocket from just one year’s TOPR but won’t reimburse the City for $23K in services. 

The facts do it for us.

still uncertain as to obtusness or purposefully remiss….a little of both perhaps.

Pubdog…methinks thou dost protest too much…

5:33:

Wethinks you recently learned two new words: “obtuse” and “remiss.” And it appears you even used them in a technically correct fashion. Well done!

Now if you could only make sense of them.

that is what you pass off as a witty rejoinder?

How utterly Lame!!

You can do better than that Sir Barksalot!

EDITOR’S NOTE:   PRU-dence, that’s just got to be you. 

Sorry, but you’re just not giving us much to work with.

Concerning TOPR, I don’t understand why some people continue to defend what appears to be a sweetheart deal unless: a) they are getting some of the money and don’t want anyone to expose the details, or b) they have no moral compass and aren’t concerned about graft and corruption. Can someone please explain why this shouldn’t concern all Park Ridge taxpayers? In your response, please don’t raise the fireworks (didn’t your mother teach you that two wrongs don’t make a right), or the fact that this is a small portion of the budget (ethical issues are not determined by the value, but rather by the principle involved).

Thanks

PubDog, your premise is just wrong. I understand how you came to those conclusions, but that doesn’t change the fact that the TOPR did not make $65k in one year. It does not cost the city $23k to support the TOPR. The people who run the TOPR are not taking personal advantage of some “sweetheart deal”. And TOPR Inc is not using the funds for political activity.

Unfortunatly you would rather pontificate inaccurately than climb out from behind the curtain and ask for the facts. You even spend more time railing against TOPR than you do the city officials who you might be able to persuade to have the open discussion you are so uninterested in having.

It has been said many times even in this forum that people can have their own opinion, but not their own facts. Please do not state as fact the speculations you have made after seeing one 990.

At least we aren’t arguing about one thing, you are obsessed with the Taste. What’s that all about? (I know, I know “public trough”, “sweetheart deal” . . . it still doesn’t explain how much time you spend talking about such a small piece of the pie, and how little time you have spent getting the facts.)

8:44 am said to discuss the principle of the matter.

That would be the principle of full disclsosure and treating all entities equally–correct?

Then why the silence by the mayor about the polish fest last year that used city services, disclosed nothing (no mention of even the people involved except for the mayor’s picture on the website).

It was on this forum that the acknowlegement of a campaign Fundraiser and supporter of mayor, Anna Dudzyik (who was charged twice in this preceding decade with theft and was processed through the legal system) was the person organizing the event. Why no disclosure of that and hounding of that event?

The principle doesn’t seem to be the point with the mayor. What is clear that hypocricy abounds when it comes to the mayor and his confederates like the pubdog editor and the business owner who has city contracts (and was the mayor’s biggest campaign contributer)

try to come up with something new rather than your tired and worn out drivel regarding TOPR.

Anon @ 9:23 am:

Fact: The only Form 990 on GuideStar for Taste Inc. is 2009. (If Taste Inc. filed more, why aren’t they on GuideStar; and why hasn’t Taste Inc. produced them?)

Fact: That one Form 990 shows no assets beginning the year and $65K at year end. Hence, Taste Inc. “made” $65K last year.

Fact: Per the City’s report, $23K of City services are provided free of charge to Taste Inc.

Fact: Taste Inc. changed its tax status from 501(c)(3) to 501(c)(6) when it reincorporated in early 2009.

Fact: Taste Inc.’s Form 990 shows a measly $5,281 of unspecified “charitable donations,” which it deducted as an expense.

Fact: Taste Inc. has an annual no-bid, no-contract, $20K+ taxpayer-subsidized, $65K profit-making deal. (We call it a “sweetheart” deal, but you can call it “graft” or “corruption” if you want – we won’t quibble).

If Taste Inc reincorporated in 2009 then wouldn’t it makes sense that it had no assets at the beginning of the year, and that any assets the group accumulated over the course of 5 years be listed as “new” assets upon its incorporation?

Isn’t it possible that Taste Inc filed previous reports that aren’t listed on Guidestar? Are your tax returns listed on Guidestar? And how do you know Taste Inc had 501(c)(3) tax status from 2005 to 2008?

Don’t you think some of the $23,000 listed in the city report includes personel unneeded at the event. I would bet that if not hanging out at the Taste many of the city staff would be hanging out at the firehouses and wherever the cops hang out when there are no calls. With so much of the city on Summit those days, hanging there makes as much sense as anything. Plus it is a good community relations move for those groups.

“If Taste Inc reincorporated in 2009 then wouldn’t it makes sense that it had no assets at the beginning of the year, and that any assets the group accumulated over the course of 5 years be listed as “new” assets upon its incorporation?”

None whatsoever. You must not have read Taste Inc.s Form 990 that we published, most recently, in our 08/05/10 post. But if it makes you feel any better, gross ignorance does not excuse shallow thinking.

“Isn’t it possible that Taste Inc filed previous reports that aren’t listed on Guidestar? Are your tax returns listed on Guidestar? And how do you know Taste Inc had 501(c)(3) tax status from 2005 to 2008?”

Anything is possible, even Taste Inc.’s finally coming clean about all the money it has raked in over the past 6 years but that has mysteriously disappeared. As we understand it, GuideStar gets all the Form 990s filed with the IRS (no, it doesn’t get private individuals’ tax returns – there’s that gross ignorance thing again). GuideStar used to list the 501(c)(3) version of Taste Inc., but there were never any 990s posted for it. So we’re betting the Tastees didn’t file any.

“Don’t you think some of the $23,000 listed in the city report includes personel unneeded at the event.”

Why would a City Hall that stupidly gave away its signature event want to look any dumber than it already does?

“I would bet that if not hanging out at the Taste many of the city staff would be hanging out at the firehouses and wherever the cops hang out when there are no calls.”

They can hang out at TOPR all they want, so long as they’re not on the clock; or, if they are, it’s on Taste Inc.’s dime.

So how on that 990, which I have read on 8/05 and again just now, would the organization list the assets handed off from its previous incarnation to its current corporation? Wouldn’t that be listed as one of the income streams?

I have also read the dozens of posts on this blog about the Taste, some of which (8/29/09) claim it made $176,000 in the same year, and all sorts of other erroneous conclusions caused by this blog misinterpreting information(deliberatly or otherwise).

And then you state as fact that money has disappeared. What money has disappeared? That’s a new one.

The only thing you have stated correctly is that you don’t have the information you need to know much about Taste Inc. Not only that, you refuse to ask them these questions directly without hiding behind a blog. That is the definition of ignorance, but if it makes you feel any better, that’s no excuse for shallow thinking.

PublicWatchdog on 09.01.10 5:03 pm (AKA–Sir Barksalot) Queried:

Why would a City Hall that stupidly gave away its signature event want to look any dumber than it already does?

Actually, City Hall is looking pretty brilliant.

Consider the following:

City Hall provided seed money which was returned and then provided the seed a second year and never had to again provide any direct cash to produce the event.

City Hall provides, at its descretion, the level of services it wants in support of the event.

City Hall recieves direct revenues in sales tax and fees and permits from the event as well as experienceing increased sales tax from ancillary business activity during the event. Also it experiences residual sales taxes from visits from out of towners who make Park Ridge a dining or shopping destination because of exposure at the Taste.

City Hall literally saves Tens of thousands of dollars yearly in planning and management costs because of the private volunteer organization that plans the event, gathers the private dollars and produces the event.

City Hall receives extreme positve promotional advertising for the City at no cost to it directly because of the efforts of the private volunteer organization.

As a matter of fact, other municipalities scaled back or cancelled thier events of similar nature (which draw people to their towns and thus create potential tax revenue –Hello!)

And Park Ridge Benefitted from a successful event.

Des Plaines Mayor Marty Moylan has even gone on public record indicating his preference for a private NFP to run Taste of Des Plaines because it actually would reduce city costs and still create an event that has positive benefits.

Even Mayor schimidt has suggested he would like to produce additional events around the year based on similar models (he is on public record of supporting an octoberfest event and the previous poster mentioned his polish fest event) (I really don’t see why he doesn’t have the octoberfest idea underway–after all he does have tony saviciini and anna dudzyik who could run those two events for him)

So in the final analysis, the city puts in around 5 or 6 K of city services after the dust
settles for an event that would have cost well over 100K and the City benefits from all of the positive Public Relations of a well run event.

I have an idea!!! If you think TOPR Inc is doing such a bad job and are such liars and crooks (this is what you are accusing them of), why don’t you tell the citizens of Park Ridge where you could do better. Apparently one of your group expressed interest in running it (that is what I read on the blogs). Why not put together a presentation about how much you could make for the city and where it would come from. You could put it on your blog for all to see. Hell, you all are pretty tight with the Mayor and he runs the council meetings. I am sure he would let you present. If this is such a lay up you would sure make the council look foolish if they said no to your wonderful proposal.

Put the idea out on the blog? Total disclosure? Total transparency?

What a concept!

“Put the idea out on the blog? Total disclosure? Total transparency?”

Hardly. We don’t even give our names here.

As I understand the IRS regulations, when a 501(c)(3) organization dissolves (if this what the 501(c)(3) TOPR did), then any assets it has must be distributed to another charity. The assets remaining at TOPR through 2008 could not have been transferred to the new TOPR as it is a (c)(6)-which is a business association not a charity.

Also, business associations are not required under IRS law-as I understand it-to make their annual Form 990 available for public inspection.

The purpose of a (c)(6) is to promote the interests of its members only-there is no charitable element whatsoever to a (c)(6).

Given that TOPR is now a (c)(6), the city of Park Ridge should not be giving any city services to TOPR for free. The IRS does not allow public money like free city services-to inure (or be transferred )to the benefit of an individual (in this case a group of privatley owned businesses). This is why all this free support from the city to the businesses that profit from the TOPR event is so wrong. If the businesses that put on TOPR want to use public space-the street and parking lots-and get the support of other city services then they should pay for it. Period.

852PM Your understanding of the IRS regulations is wrong. Period.

• Anon 09.01.10 @ 6:14 p.m.:
As we understand it, the 501(c)(3) version of Taste Inc. could not lawfully contribute whatever cash it had when it closed up shop (for reasons Taste Inc. hasn’t revealed, naturally) in Feb. 2009 to the 501(c)(7) version of Taste Inc.

We calculated the $176,000 figure based on Taste Inc.’s propaganda sheet it handed out to the Council last August, that claimed $266,652 in “gross receipts” and “$90,000+” in “costs” ($266,652 – $90,000 = $176,000). Seven months later, Taste Inc.’s Form 990-EZ reported $163,391 in “total revenues,” so we’re not exactly sure what Taste Inc. is trying to pull or on whom – other than it’s getting all the help it needs from a City Administration that’s as clueless as it is gutless.

• Anonymous 09.01.10 @ 9:16 p.m.:
Handing over the City’s signature event that was intended to be run by “10 individuals” as an “Ad Hoc Committee” of the City with any “positive net result of [a] financial nature…returned to the City” to a private corporation that doesn’t even have to account to anybody for the profits it makes is only “brilliant” if you’re one of the Taste Inc. operators running such a scheme.

• Anon 09.02.10 @ 10:47 a.m.:
We think Taste Inc. is doing a good job…for Taste Inc. and the folks who run it. That’s why, in light of Taste Inc.’s secrecy and the City’s need for money, we support putting TOPR out to bid – with the successful bidder being required to sign a contract that obligates it to: (1) reimburse the City for all services used; (2) pay the City a fixed percentage of any net profits; and (3) provide a full accounting that can be posted on the City’s website.
As for “mak[ing] the council look foolish,” we can’t do better than what these aldermen have been doing.

• Anonymous 09.04.10 @ 8:52 p.m.:
We believe a 501(c)(6) entity is permitted to carry out “charitable” activities, but it can also carry out unlimited lobbying activities and certain types of political activity that a 501(c)(3) cannot.

• Anon 09.06.10 @ 8:54 a.m.:
Other than our comment to 8:52, we share his/her understanding of 501(c)(6).

* * *

And with today’s new post, we close comments on this one.

Thank you for your interest in how Taste Inc. was handed over to TOPR for its own private, profit-making enjoyment, compliments of then-Mayor Howard Frimark and then-alderfolks Don Crampton, Kirk Machon, Rich DiPietro, Jeannie Markech, Andrea Bateman, Kim Jones, Jim Radermacher, Jim Allegretti, Mark Anderson, Joe Baldi, Rex Parker, Mary Wynn Ryan, Jeff Cox and Frank Wsol.