
RZB's are backed with OPM. RZB's are federal stimulus Recovery Zone Bonds, $18 million of which the McHenry County Board is contemplating awarding to a proposed sports complex between Huntley and Woodstock. OPM is Other People's Money, not McHenry County's.
That's good because if the 180-acre complex can't pay off the bonds the RZB buyers can't come back on the County. RZB's aren't that sort of bond. Even so, $18 million is two thirds of all the stimulus authority the County has to work with and an FEN investigation has found a couple of possible snags in the sports complex plan.
McHenry County Sportsplex LLC is the company asking for the bonds. In its Dec. 16 application the company is listed as owned by two other companies, 30 percent by McHenry County Sportsplex Management Group LLC and 70 percent by McHenry County Sportsplex EB-5 Fund LLC. However in an accompanying business plan the split is listed as 51 for the former, 49 for the latter. Who actually owns the controlling interest? In an interview Friday Sportsplex CEO Lou Tenore said that at the moment the EB-5 fund owns 65 percent of the company, the Management Group 35 percent. Later on the Management group will end up with a 51 percent interest.
No matter what the split, though, according to the Illinois Secretary of State's Office, there isn't any McHenry County Sportsplex Management Group LLC registered to do business in Illinois. That's the first snag.
Tenore said the company's organization was delayed because another company had a similar name. He said the application had been filed "last week". LLC Records chief Deborah Russell said Tuesday, however, she still couldn't find a record of the company. She admitted, though, that an application might still be somewhere in-process. "The statute says we have to finish it in ten (working) days," she said.
Be that as it may, Tenore and three other men are listed as the managers of McHenry County Sportsplex LLC, if not of McHenry County Sportsplex Managment LLC. Tenore is the company President. News stories have described him as a Lake in the Hills businessman and, indeed, he lives in Lake in the Hills and is a businessman. However his business, although officially listed with an address at his home, is physically located in tiny Poplar Grove, Boone County. It's a maraschino cherry processor currently called EPI. One undated industrial profile places its annual sales at $1.6 million with an employee roster of 14 people.
Tenore said that was about right, although at one point he'd built the company up to $4.6 million in sales during a particular 12-month period. He said he decided to scale the company back again, though. "There was no margin in it," Tenore said.
Only one woman who declined to identify herself was at EPI the day FEN visited the factory. There were no cherries being processed although she said that sometimes there were. Tenore said the factory doesn't operate all the time. When he needs stock he orders some bleached and brined cherries and calls in a crew to flavor and dye them, he said.
EPI was formerly Edens Processing, Inc. Records of the Secretary of State show four separate IRS tax liens totaling about $80,000 against Edens Processing in 2006. The liens were all lifted the same day in early 2007. Tenore said they involved a dispute over the proper classification of some of his employees. "My lawyer said pay (the claims) and try to get the money back later." He said he did that but hasn't recovered any of the payments. HE volunteered he also had a problem with the state Department of Revenue over some sales taxes. "I won that one," Tenore said.
The majority owner of McHenry County Sportsplex LLC, however, is the Chicago-based McHenry County Sportsplex EB-5 Fund LLC, according to Tenore. Its business is part of an obscure federal program that, as one recently retired U.S. Security official put it, "sells (U.S.) resident visas." That's not the other possible snag, though. You have to drill down to who owns the EB-5 Fund to find that.
NEXT: How Do You Say "Sportsplex" in Farsi?
In the pics: (above)The only sign at EPI's plant in Poplar Grove was a handwritten one on the door saying to call the company number if no one was in. (below) An artists's conception of what the $40 million McHenry County Sportsplex would look like.