Journal Editor

Des Plaines aldermen, apparently so eager to be paid $75,000 over a three-year period to finance future July 4th fireworks displays, agreed in April 2003 to award a lucrative deal to a connected company to erect 10 billboards in the city.

At the same time City Council members gave their approval, they also agreed to leave for a later date determining where the large outdoor advertising signs should be located along primarily the Northwest Tollway (I-90). Billboards located in Des Plaines along the Northwest Tollway near O'Hare Airport can generate as much as $12,000 a month per side. Ten two-sided billboards could fetch over $5 million during a 20-year period. State law requires that billboards be placed on property zoned Commercial or Industrial. To do so would likely require city approval involving some sites.

Concerns surfaced in August about the city's agreement with Premere Outdoor, Inc. to erect 10 billboards along local tollways. Most of the concerns center around the involvement of Premere shareholder and apparent former company officer James Dvorak, the ex- Cook County undersheriff who spent time in federal prison during the 1980s for income tax evasion and bribery.

In addition, city officials are looking into Premere's sale of its assets and transfer of billboard installation rights to outdoor advertising giant Lamar and possibly Viacom. City leaders have been told that Lamar has purchased from Premere the rights to erect five of the 10 billboards it had secured from the city in 2003. Rights to the other five billboards Premere had secured have either been sold or may be sold to Viacom, the corporation that owns among other companies, Blockbuster Video, and CBS television network.

Des Plaines officials have said that the sale or transfer of those rights is not permitted without specific approval from the city. Such approval has not been given.

In late August, city officials became alarmed when they learned that Dvorak "had a stock interest in Premere Outdoor," according to a statement read by City Attorney Dave Wiltse at Monday night's City Council meeting.

The Journal reported two weeks ago that Dvorak was president of Premere Media, Inc., a company whose secretary had contacted the city numerous times in previous months to discuss matters related to the billboard issue. In the Wednesday, Sept. 22 issue of the Journal, it was reported that state records also show that Dvorak, as of Dec. 10, 2003, was listed as vice president and treasurer or Premere Outdoor, Inc., the firm that sought and obtained city permission to erect the 10 billboards.

Earlier this year, it was disclosed that Dvorak has for many years been a close friend of Bill Schneider, the city's former Economic Development director, previous acting city manager, and director of the city's Community Development Dept. All three positions gave Schneider a large amount of authority to determine land use development in Des Plaines. Also earlier this year, it became known that Dvorak was involved in assisting the city developing property near Mannheim and Higgins roads, across from O'Hare Airport, as well as introducing a marketing firm he later became employed with, to the city for possible development of the Fisherman's Dude Ranch property on Golf Road.

Schneider, shortly after his friendship with Dvorak was revealed, resigned from his city job. At about that time, he admitted to Mayor Tony Arredia that he was a convicted felon. Schneider was convicted of mail fraud in the mid-1990s for trying to illegally obtain money from his employer at the time. That employer is the same firm that is seeking state permission to build and operate a casino in Des Plaines.

At the Apr. 7, 2003 City Council meeting, aldermen discussed at great length the billboard issue. Attending that meeting was Joseph Loss, attorney and secretary of Premere Outdoor, Inc. During the discussion, Finance Committee chairman Ald. Dick Sayad (4th) suggested reducing Premere's original request for 15 signs to 10. At the same time Sayad said, "The Council will decide later where to allow the signs along the tollway.

"If you give us $25,000 we'll be happy for three years of fireworks," said Sayad. Premere was also required to pay a $15,000 impact fee per sign and annual inspection fees.

Also at the Apr. 7 meeting, Community Development Committee chairman Ald. Tom Becker (6th) said, "If he (Premere) sells off the licenses, which I can't imagine he will, the fireworks funding will be passed off to the company that purchases the rights." Becker also said the City Council will later come back to the issue of determining billboard locations. He added that he is opposed to a billboard being erected near the corner of Touhy Avenue and River Road, the site of a printing company. Despite Becker's objections, a large outdoor sign was built at that corner. That billboard has triggered a loud outcry from neighbors who claim that it is ugly and devalues their property.

The lone objector to the anticipated billboard agreement at the Apr. 7, 2003 meeting was Ald. Carla Brookman (5th). She argued unsuccessfully that the city had fought the building of billboards from a period of 1986-93 adding that the proposed deal with Premere brought to the city few if any "financial incentives."

About a month after the Apr. 7 meeting, aldermen formally approved granting the 10 billboard licenses to Premere. Indications are that within three months, some of those rights had been sold or were about to be sold to Louisiana-based Lamar. It is not known what price Lamar paid to obtain those rights. As of this week, it's believed that five billboard permits have been issued to either Premere or Lamar, said City Attorney Wiltse this week. It's also believed that signs on three of those locations are now in place.

At Monday night's City Council meeting, Wiltse read a two-page statement informing the public that he, City Manager Dave Niemeyer and Mayor Tony Arredia arranged and attended a meeting with the U.S. Attorney's office in downtown Chicago last week where their concerns about Dvorak and the billboard deal were discussed. They took with them a large number of documents. Wiltse also said that because of concerns about Dvorak's involvement, a new disclosure policy will soon be implemented that will require the revealing of ownership interests of applicants and developers.