Journal Editor

Des Plaines aldermen Monday night said they will strongly urge law enforcement agencies to investigate the possibility of criminal wrongdoing in the city's awarding of billboard rights in 2003.

In a statement read following a two-hour closed door meeting in City Hall, Legal & Licensing Committee chairman Ald. Don Smith (7th) said the city staff has been directed to follow up on previous referrals to the offices of the U.S. Attorney, Cook County State's Attorney and Illinois Attorney General.

In addition, the statement says that a special lawyer hired recently by the city will attempt to meet with involved billboard companies to resolve disputes over the construction of outdoor advertising signs in Des Plaines.

Smith, in an interview with the Journal following Monday's meeting, explained that aldermen hope to reach a compromise with the billboard companies to avoid becoming involved in a lawsuit. He said, however, that efforts to reach a compromise won't depend on whether one or more law enforcement agencies decide to conduct a formal investigation.

"We prefer to get some resolution from the U.S. Attorney and then work out an agreement or compromise," said Smith. "But we will start the process of trying to resolve the disputes soon."

City Council members met in closed session in City Hall prior to Monday night's public meeting where the billboard matter was scheduled to be discussed. The reason for the closed meeting, which lasted two hours, was to discuss a strategy on how to handle the threat of one or more lawsuits over the right to erect up to 10 billboards in the city.

In May of 2003, City Council members approved an agreement with Premere Outdoor, Inc. to allow the company the right to erect 10 billboards along the Northwest and Tri-State tollways. Those rights are worth millions of dollars. Money is generated by the billboard companies through advertising that appears on the large outdoor signs, at a rate in some cases of hundreds of thousands of dollars a year.

For years, the city's position has been to strictly limit the number of billboards. In August, city leaders discovered that James Dvorak, a convicted felon who in the 1980s was the Cook County undersheriff and County Republican Party chairman, was a shareholder of Premere. Not long after Premere secured the billboard rights from the city, the company was sold to Lamar Outdoor Advertising for $10.5 million. Lamar later sold back five of those sign rights to Premere Media, Inc. And later, Premere Media sold the remaining five billboard rights to media giant Viacom. Bill Schneider, the city's former acting city manager and Economic Development director, has been close friends with Dvorak for years. Schneider quit his city job earlier this year after his association with Dvorak and past criminal history became public.

In recent months, the city attorney's office has said that the sale or transfer of the billboard rights is not permitted. While there seems to be some agreement that Lamar, by purchasing Premere Outdoor has a right to erect the five billboards, Viacom's purchase from Premere Media is in question. Viacom, in letters to the city, has strongly defended its belief that it owns those five billboard rights and has indicated that it will defend its position to the fullest.

According to City Attorney Dave Wiltse, his office has received letters from five different attorneys "indicating that litigation may result if their legal position is not sustained." Wiltse declined to say whether those five lawyers represent five different billboard companies.

At Monday night's meeting, aldermen directed special legal counsel Mat Delort to meet with the effected billboard companies "and take whatever actions are appropriate to resolve pending disputes regarding billboard construction in the city..."

As for the possibility of criminal wrongdoing, Wiltse explained that he has sent documentation on the billboard matter to the three investigative agencies.

"I think they have enough to determine whether or not to make a move," said Wiltse. He said he has not heard any reply.

The two-part motion was approved 7 to 1 by council members. Ald. Carla Brookman (5th) voted "no" saying she objects to just a few words in the second part of the motion. Those words read, "take whatever actions are appropriate." Brookman explained that she is opposed to giving Delort or any staff member the freedom to take whatever actions are appropriate without first consulting with aldermen.