THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, SEPTEMBER 15, 2004


Memo Urges Council To Keep Quiet

By TODD WESSELL

Journal Editor

As city officials begin the task of trying to unravel details of how the assets and possibly all or some of 10 permits to erect large billboards along sections of the Tri-State and Northwest tollways were recently transferred or sold from one company to another, the city's eight aldermen have quietly been warned not to speculate at all on the matter.

In a confidential letter distributed to aldermen and at least three other city officials last week, City Attorney Dave Wiltse said that an attorney for Premere Media, Inc. has threatened to sue the city if the stock ownership of the billboard company is made public by the city. Wiltse's letter, dated Sept. 9, was written and distributed a day before the Journal published a front page story that revealed that former Cook County undersheriff and convicted felon James Dvorak is listed as president of Premere Media, Inc., according to Illinois secretary of state records. The revelation of Dvorak's connection to the billboard company is the third time in recent months that he has been linked to building-related projects in Des Plaines.

And in a new twist discovered by the Journal this week, the president of Premere Outdoor, Inc., the company that apparently was changed to become Premere Media, Inc., is an Oak Brook businessman who is awaiting sentencing in a financial tax fraud case.

As for Dvorak, besides his involvement with Premere Media, city officials believe that he introduced Rolling Meadows-based Prime Site Group LLC to city officials four years ago when the city was strongly considering annexing the Fisherman's Dude Ranch property on Golf Road. And, Dvorak, later as an employee of Prime Site, worked with the city on redeveloping the triangular-shaped Mannheim-Higgins property.

Dvorak's involvement in city matters first became public in April when it was learned that he was an employee of Prime Site. At the same time, it became known that Dvorak and high-level City of Des Plaines employee Bill Schneider were close friends. For a while, Schneider held positions as the city's economic development director, acting city manager, and director of the Community Development Dept., which administers development projects and land use in the city.

The revelation last week that Dvorak was connected to Premere Media, Inc. and/or Premere Outdoor, Inc. prompted Ald. Don Smith (7th), to call for an investigation into the matter. Smith's comments came a few days after a meeting of the city's License & Judiciary Committee in City Hall where aldermen decided not to issue any more permits to erect billboards in Des Plaines along local tollways until questions about Premere can be answered. Specifically, aldermen directed Wiltse to investigate Premere's transfer or sale of billboard rights to Lamar Outdoor Advertising and possibly billboard giant Viacom. Wiltse said he is unsure if Premere sold Lamar or Viacom the rights to erect and maintain any of the 10 billboards the city granted Premere to own and operate in 2003, and if so, whether such action is allowable. Two-sided billboards along tollways can fetch as much as $60,000 a month, especially if they are located near a major metropolitan area and airport such as O'Hare, the Journal has been told.

What billboard company, with the name Premere, the city is dealing with has also caused confusion among some city officials. In April 2003, Premere Outdoor, Inc., represented by project manager Joseph Loss, sent a letter to the city which spelled out a proposed billboard fee and use agreement between the city and the company. More than a year later, on Aug. 5, 2004, Loss sent a letter to the city under the name Premere Media, Inc. The Lombard address in both letters was the same.

A check of state records by the Journal shows that as of July 8, 2002, Dvorak was listed as Premere Media, Inc's. president and Loss secretary. A further check of Premere Outdoor, Inc's corporate records shows that as of July 6, 2001, Joseph Nicosia of 105 Livery Circle, Oak Brook was the company's president and Loss secretary.

According to the U.S. Attorney's office, Joseph P. Nicosia, Jr., of 105 Livery Circle, Oak Brook, pleaded guilty in 2003 in a federal financial fraud and tax evasion case involving an insurance company he owned located in Oak Brook. He is awaiting sentencing and faces up to 7-1/2 years in prison. He was charged in December 2001.

Attempts by the Journal last week and this week to reach Loss, Dvorak and Nicosia's attorney for comment were unsuccessful. A telephone call by the Journal Monday to Lamar's office in Indiana was not returned as of Tuesday afternoon.

Meanwhile, Wiltse said he hopes to have a report to City Council members sometime in October. In his confidential letter to aldermen last week, Wiltse says, "It has come to our attention through different sources in late August that James Dvorak had or has some connection with Premere Outdoor, Inc. This is the third time Dvorak's name has surfaced in connection with Des Plaines: First through his involvement as an employee of Prime Site. Second from documents provided by Prime Site which showed that Dvorak and Prime Site attempted to broker a deal regarding the Fisherman's Dude Ranch in 2000 (even though it was not annexed until 2003). Third, the connection with Premere Outdoor." Added Wiltse, "The issue of Dvorak's involvement was not discussed at the Sept.. 1, 2004 Committee meeting, but Committee members were privately and individually advised of the issue of Dvorak's possible involvement or partial ownership interest in Premere prior to the meeting. The Mayor was personally briefed on this issue when staff discovered the connection.

"...We wanted to share this information with you at this time and caution the Council that Premere, through its attorney Joe Loss, has threatened litigation if its stock ownership is made public by the city. Please do not comment privately or publicly on this matter until we can bring you more information."

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