The new Skokie Economic Development Plan: “Money For Nothing & Chicks For Free”*
The New Skokie Economic Development Plan: “Money For Nothing And Chicks For Free”*
Skokie village recently paid $1.7 million for property located at Dempster and Skokie. That is the equivalent of 17 firefighters.
They have just sold it to Oberweis Dairy for $400,000 plus 5% of sales that exceed $1 million a year for the next 10 years. Not calculating the time value of money, in order to break even the Village needs to get paid $130,000 per year to break even. That means the location needs to make $3.6 million per year. The typical Oberweis Dairy location does $1.25 million to $1.75 million.
How exactly does Skokie come out ahead on this? We actually pay people to do this on our behalf?
There is an old poker saying. If you you don’t konw who the mark is, it’s you. In this game of real estate development, it’s Skokie. Mr. Oberweis will do just fine. I don’t think that can be said with confidence about the Village or its taxpayers.
If we want the village to involve itself in real estate development, maybe we need to elect real estate devlopers to run the village.
If our elected officials want to play real estate developer, they should use their own money and do it in some other village. Please.
Given the expected $5,000,000 loss of Village Revenue from the State income tax, maybe we need to be a little more careful about how we spend our money.
* Title of a 1985 song by the by the British rock band Dire Straits about the mythical easy life of Rock & Roll Stars