It may have come as a surprise to Tinley Park officials last month that an investment firm at the center of an FBI investigation is a part-owner of the New World Music Theatre.
But the theater apparently was not legally obligated to say anything about it to Tinley Park, according to a report sent Tuesday to the board by Village Atty. Terrence Barnicle.
The village has been trying to clear up questions about the theater’s ownership ever since the October indictment of developer Michael Halikias, who prosecutors allege had a controlling interest in the investment company, Connaught Corp.
Halikias and six other owners worked with the village in structuring a lucrative tax rebate deal.
As part of the deal, village officials were supposed to know about the theater’s ownership. But they did not know that Connaught owned part of the theater until they received a letter last month from the World’s owners, disclosing that Connaught bought a less than 5 percent interest in the theater in 1989.
Barnicle wrote Tuesday that the theater did not violate the 1989 annexation agreement that granted up to $4.6 million in tax incentives because Connaught did not have a majority interest in the World.
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