Chicago Suburb Sues to Track Down Millions in Redevelopment Funds

$150 million to finance industrial park that didn't turn out as expected

A tiny Chicago suburb claims a developer refuses to provide an accounting on $150 million in public financing for an industrial park, which provided far fewer, poorer-paying jobs than promised, more traffic, and not enough tax revenue to cover even the interest on the loan.

The Village of Elwood sued CenterPoint Intermodal, CenterPoint Realty Services, and the Bank of New York Mellon Trust Co., in Cook County Court.

Elwood, pop. 2,300, a far southwest suburb of Chicago, says that in 2000 it entered into a development agreement with CenterPoint, which promised to bring 12,500 jobs to town and $20 million to 40 million in additional tax revenues.

Comments

[midomidi20133]

According to Cato's Mark Calabria, by "2005, one out of every four loans purchased by Fannie Mae was from Countrywide" and "one of out every 10 for Freddie Mac was also from Countrywide", the end result being that "close to 90 percent of Countrywide's loan originations were bought or guaranteed by some arm of the federal government". How was this achieved? (warning, link is a PDF)

...Because the growth and success of Countrywide was tied directly to Fannie Mae's continued hunger for acquiring and holding loans and Wall Street's continued investment in mortgage-backed securities composed of subprime mortgages, Countrywide CEO Angelo Mozilo offered a key group of VIPs preferential treatment through a special loan division. Countrywide gave preferential treatment to legislators,???? ??? ??????? Congressional staff, cabinet members, Fannie Mae executives, lobbyists, and others well connected in Washington. Countrywide also gave preferential treatment to business partners, local politicians, homebuilders, entertainers and law enforcement officials....

[midomidi20133]

...In 1999, Fannie Mae CEO Jim Johnson and Countrywide CEO Angelo Mozilo reached a strategic agreement giving Fannie Mae exclusive access to many of the loans originated by Countrywide in exchange for a discount on fees Fannie charged when buying loans. ???? ?????? ????? ??????? he agreement linked the growth and success of Countrywide to Fannie Mae's continued desire to acquire a large volume of loans....

[midomidi20133]

Neo-conservatives are big-government conservatives, period. Libertarian Republicans are the opposite. It's a stark choice, and given the depth of the interventionists' commitment to blank-check executive-branch prosecution of war and American hegemony, no one should be surprised by the burgeoning Republicans For Hillary caucus.???? ?? ????? ???????