Labeling it an “extravagance” the state can no longer afford, Gov.-elect Rod Blagojevich Thursday called for the sale of the Illinois State Toll Highway Authority’s lavish headquarters in Downers Grove.
“In difficult economic times it’s just hard to justify maintaining a place like that,” said Blagojevich, a Democrat. “Government is an opportunity to serve. It doesn’t provide you with plush surroundings.”
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But others questioned whether Blagojevich’s proposal would yield any significant savings for a state facing a deficit projected to be $2.5 billion or more by next summer.
Toll authority critics have dubbed the 10-year-old building the Taj Mahal, citing its $1,700 leather boardroom chairs, helicopter pad and upscale atrium. Built at a cost of $25.6 million in the heart of heavily Republican DuPage County, the headquarters, according to Democrats, is an example of GOP political bounty.
Blagojevich’s proposal came just days after Art Philip, the chairman of the toll authority board, ignited a brief controversy when he suggested that he’d push to raise most tolls before the incoming governor had a chance to appoint his own members to the board. Philip quickly backed down under pressure from Gov. George Ryan.
After reiterating his opposition to higher tolls until additional fiscal pressure is placed on the toll authority, Blagojevich stopped short of promising no toll increases. “We’re not going to raise taxes, and I view the tolls as an issue along those lines,” he said.
The toll authority’s headquarters houses more than 400 workers, including some state police personnel responsible for the 274-mile network of toll roads.
Blagojevich’s leading choice for a new site for the workers seems to be the Illinois Department of Transportation’s office in Schaumburg, although it was unclear whether such a move would be feasible.
“It’s only logical to have all the state’s transportation functions operating under one roof,” said Rep. Jeff Schoenberg (D-Evanston), a longtime tollway critic who joined Blagojevich at a downtown news conference.
Schoenberg said the toll authority building has about 187,000 square feet of space, compared with 146,000 at the IDOT building. He said the state owns 11 acres near the IDOT building, but Schoenberg said he didn’t think the building would have to be enlarged.
Roy Olson, a spokesman for IDOT, said the agency would do what it could to satisfy Blagojevich. “But it’s an awfully crowded place now, so we don’t think that necessarily would be an easy task,” Olson said.
Philip said he hadn’t heard about Blagojevich’s proposal. “It’s all too ridiculous for me to comment on,” he said, before hanging up the phone.
Philip recently told the Tribune the Downers Grove building was designed to be an asset for the agency rather than a liability like its previous inefficient and outdated Oak Brook office.
“It’s a good investment,” he said. “I’m quite sure we would be able to get more money for it than what we paid for it.”
But one real estate expert said it’s unlikely the toll authority could recoup its investment because of high office vacancy rates in DuPage County.
“It would have to sell at a discount because of all the available space out there,” said Charles Hold, a senior vice president with Inland Real Estate Sales in Oak Brook. He said he doubts the building would sell for more than $22 million today, although that number could grow if the market rebounds.
Thomas Cuculich, the toll authority’s executive director, also declined to comment on Blagojevich’s idea. “It’s his prerogative to put his stamp on the tollway,” he said.
In the next few weeks, Cuculich said, the toll authority expects its consultants will deliver a long-range financial plan that will outline a menu of options for revamping the system over the next 20 years. In addition, a legislative audit on toll authority management practices is expected in mid-2003.
Blagojevich said he plans similar such tweaks of other state boards and commissions that have “operated for far too long without public scrutiny, without input and with no accountability” and run by “a favored few political insiders.”