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[Eagle Creek lease means state may never get income, documents show]

Interesting piece of information from The Champaign News Gazette

Eagle Creek lease means state may never get income, documents show
Wed, 07/21/2010 - 10:00am | Tom Kacich
SPRINGFIELD ? The new owners of the Eagle Creek Resort on Lake Shelbyville will pay the state Department of Natural Resources an annual rent of $40,000, according to the lease agreement signed July 7.

But the agreement is structured in such a way that the state may never receive any revenue from the resort's operation.

The lease agreement was obtained by The News-Gazette through a Freedom of Information Act request.

The 21-year lease, which runs through June 29, 2032, says that Eagle Creek's new owners, BMDD Resorts Inc. of Decatur, "upon inspection and approval by DNR shall be permitted to offset the annual rent due under this paragraph against the reasonable costs incurred and paid by lessee and reported to DNR."

Reasonable costs include "those that are appropriate and necessary for the rehabilitation of any part of the premises" as well as capital improvements.

In the bid proposal it submitted to the DNR last winter, BMDD estimated it would cost $3.7 million to rehabilitate the 138-room lodge and resort that was closed last summer because of extensive mold problems. The former owners of the property, Barry Shiffman and Edwin Edelberg, had abandoned the 24-year-old resort.

Eagle Creek is about 70 miles southwest of Champaign-Urbana on Lake Shelbyville.

Chris McCloud, a spokesman for DNR, acknowledged that it may be some time, if ever, before the state receives any lease payment.

"This wasn't our property to begin with. It was the former owners and operators of the facility who foreclosed on the property. The bank did not choose to keep the property. So in that sense this problem was given to the state," McCloud said. "So if we were not able to sign an agreement and not turn it over to a responsible party that has some expertise in running theses kinds of facilities, then it would have cost us much more than forgoing the lease payment for however long it takes for BMDD to recoup some of their costs for renovation.

"The trade-off is that it would have cost us a lot more if our only option was if we had to run it or renovate it."

In another section of the lease agreement, DNR is required to remove at its expense all furniture, furnishings and equipment at Eagle Creek that BMDD does not want.

That could be a considerable expense to the cash-strapped state government.

A report last January estimated it would cost $892,500 just to remove mold-damage infrastructure and contents from Eagle Creek.

Dennis Fayhee, owner of the nearby Sullivan Marina and an unsuccessful bidder for Eagle Creek, called the lease agreement "a sham."

He asserted that state officials had said they didn't want to be burdened with more Eagle Creek expenses, but that the lease agreement did so.

"That's a big expense, especially when the primary purpose the state had was to not commit any state money to the renovation," Fayhee said. "That's a major, major part of the mold remediation. That could be carpeting. That could be wall covering."

McCloud said he did not have an estimate for how much the state would end up paying to remove unwanted furnishings and equipment.

"I don't know what has to be taken out and what is going to be used and is not going to be used. There are a number of things that are going to have to be taken out," he said.

Fayhee said the lease agreement requires little from BMDD.

"There's just no commitment. I've never heard of anyone signing a lease agreement that doesn't commence for nine months," he said of the provision that says the lease begins April 1, 2011.

"They signed a lease with no development plan? In the last 4 months they didn't have time to come up with a development plan? They've got no commitment from the guy they gave the lease to."

Other provisions of the 22-page lease agreement, which was signed by Gov. Pat Quinn, BMDD President Michael Ballinger and DNR Director Marc Miller, include:

? BMDD to deliver by early September a plan for its improvements to the resort. DNR has 14 days to review the plans and to provide written comments.

"I think it's just a chance to review what their plans are for the facility. We have full confidence they know what they are doing in terms of how they want to go about renovating it," McCloud said. "I don't believe there is any kind of looking over anybody's shoulder on a daily basis."

? Permitting BMDD to open the 18-hole golf course at the resort as soon as possible.

"IDNR hopes that you are able to open the course soon ? it would be a wonderful show of commitment to the local community to have it open," Miller wrote.

? Requiring BMDD to pay prevailing wages in the renovation project and in the operation of the resort.

? BMDD to file quarterly reports with DNR documenting all renovation costs and capital expenditures.

? Allowing DNR to shut down the resort permanently in the event of a fire or other casualty.

? Requiring BMDD to provide the state every May 31 a copy of the previous calendar year's annual financial statements.

? Permitting both sides to terminate the lease at any time upon mutual agreement.

[Work to Start on Eagle Creek Resort ReopeningContract Agreement Signed Wednesday]

Story  from http://shelbyvilledailyunion.com/

Work to Start on Eagle Creek Resort Reopening
Contract Agreement Signed Wednesday
VALORIE EVERSOLE - Daily Union Staff Writer
Daily Union

SHELBYVILLE, IL. ? A year after being shuttered by court order, Eagle Creek Resort and Conference Center near Findlay has a chance at a new life.

The Illinois Department of Natural Resources (IDNR) has approved an agreement Wednesday with BMDD Resorts Corporation of Decatur for redevelopment and operation of the the resort.

The 23-year-old resort was shuttered in July 2009 because of mold and financial issues.

The IDNR took over the property shortly after the closure of the facility and began the search for a new manager.

?It was unfortunate to have to close it (Eagle Creek Resort) in the first place,? said IDNR spokesperson Chris McCloud. ?We worked as fast as we could to turn this over to someone. We are not a property manager so it is exciting for us to hand this over to someone responsible.?

?There were four bids submitted and this company met the needs of the department,? McCloud said.

He added that BMDD Corporation was approved earlier this year but the contract had to be worked out between them and the IDNR.

Part of the agreement states that BMDD will pay the IDNR $40,000 a year for 10 years to operate the resort. Renovations could cost as much as $3 million.

?This is exciting news for Eagle Creek State Recreation Area and the Lake Shelbyville region as the agreement clears the way for millions of dollars in private investment in the complex - and the reopening of the resort, which will provide a huge boost to the area economy and create jobs,? said IDNR Director Marc Miller. ?BMDD Resorts Corporation has pledged improvements that will make Eagle Creek Resort the perfect destination for golfers, anglers, business meetings, and family vacations.?

BMDD has already taken over management of the golf course at the resort and plans to reopen it later this summer.

?We have been maintaining the golf course grounds since March,? said Mike Ballinger of BMDD. ?We are starting to ramp up the renovations on the course itself to be able to open it in August. We?ve had a lot of golfers call about it.?

Ballinger also said that work will begin immediately on redevelopment of the lodge and conference center facility and is expected to reopen in 2011.

?It?s a wonderful facility and I see a lot of potential in it,? Ballinger said. ?I?ve been there myself for conferences. I?ve noticed the slight decline over the years.?

BMDD plans a multi-phase redevelopment project for the complex, including roof replacement; mold remediation; replacement of furniture, fixtures, and mechanical systems; complete guest room renovations; kitchen, conference room and restaurant and lounge renovations; and indoor pool facility rehabilitation.

?It will be about a year?s worth of work,? he said.

BMDD will manage the facility according to the state guidelines.

The closure of the facility last year impacted finances for Shelby County. With the reopening, there is a positive outlook at the local level.

?We could definitely tell a difference because we didn?t get the motel taxes,? said County Board chairman Dick Clark. ?I feel this (the reopening) is a great thing for the county. It will help our tourism and enhance our county.?

Clark added that having a local  management will help with the success of the facility.

?They know what our area is. They must feel positive about it themselves to take it on,? Clark said.

State Representative Bill Mitchell on a stop in Shelbyville Thursday said he was very pleased with the news about the reopening of Eagle Creek.

?The sooner they get the golf course open, the best for the economy for this area, ? Mitchell said.

?It?s an attraction that definitely needs to be utilized. The tourism dollars for this county is huge. The tourism industry pays dividends to this area.? added visiting state representative candidate Adam Brown, who accompanied Mitchell.

The Shelby County Office of Tourism will also benefit from the reopening as some funding will be restored, according to director Freddie Fry.

?Just getting the golf course reopened will bring another layer of focus to our area,? Fry said. ?Having an area based firm manage it is a benefit because they know about our area and what we have to offer.?

[Unsuccessful bidder claims conflict of interest, wants winning bid on Eagle Creek disqualified]

After rumors about Eagle Creek having a chance to open up once again it looks like things may be postponed again.

Story taken from The News Gazette in Champaign, IL

Unsuccessful bidder claims conflict of interest, wants winning bid on Eagle Creek disqualified

Fri, 06/18/2010 - 9:00am | Tom Kacich

An unsuccessful bidder for the still-vacant Eagle Creek Resort near Shelbyville is asserting that the successful bidder has a conflict of interest with the state of Illinois and that the bid should be disqualified.

But both state officials and the provisional owner, Decatur businessman Dennis Ballinger, deny the charge.

Dennis Fayhee, the owner of the Sullivan Marina and Campground on Lake Shelbyville, is asking state officials to reconsider their February decision to award the resort, closed for nearly a year, to Ballinger's firm, BMDD Resorts Corp.

"It appears to be a potential conflict of interest," said Fayhee, who was one of four bidders whose proposals were rejected by the Illinois Department of Natural Resources. The department took control of the 138-room lodge last year after the former owners were ordered to close it. Mold had been found throughout the facility. A subsequent study said it would cost about $900,000 just to remove the mold-damaged infrastructure and furnishings from the resort.

"The (department) should forward (the accusation) on so that someone outside of the area is making a decision as to whether it is a conflict or not," Fayhee said. "They should not be the decider as to whether it is a conflict."

Fayhee's attorney, Steven Kellogg of Belleville, contended in a letter to the agency that the potential conflict exists because Ballinger is an agent for the Illinois Tax Purchasers Association, which lobbies the Legislature.

"There can be no question that the Illinois Tax Purchasers Association ? the association that Mr. Ballinger is an officer of ? is itself a lobbying entity," Kellogg wrote. "Indeed, the lobbying entity search information provided by the secretary of state's office lists that association as a lobbying entity."

But George Sisk, legal counsel for the natural resource department, wrote that Ballinger "is an officer in an association which is, in turn, represented by a lobbyist; this is the reason his name is in the Illinois Secretary of State database."

Ballinger said his association's lobbyist is Julie Curry of Mount Zion, a former Democratic state representative and one-time deputy chief of staff to former Gov. Rod Blagojevich.

"Julie Curry is the paid lobbyist for our association," he said. "I'm just a member of the association."

Curry now heads Curry & Associates LLC, a lobbying firm with about two dozen clients. She said Thursday that it was "ridiculous" to claim that Ballinger is a lobbyist.

From the Decatur Herald & Review 5/27/2010

SHELBYVILLE - After two years of water levels too high to keep its public beaches open, Lake Shelbyville is back to normal in time for this summer.

Buoys were being strung out at Sullivan Beach along Illinois 32 on Wednesday while contractors were working to complete new structures at Dam West near the Lake Shelbyville spillway. The hope is that this summer will be the first time in three years that public beaches are inundated by visitors and not high water.

"Our biggest problem has been trying to clean up debris from the flood years," said Maria Shafer, assistant operations manager for the Army Corps of Engineers at Lake Shelbyville. "In 2008, we only had the beaches open for a short time. Last year, they weren't open at all.

"A lot of the work this year has been to repair damage from the high water. That includes dead trees and all kinds of debris."

The schedule calls for opening the Sullivan and Dam West beaches during Memorial Day weekend, starting at 8 a.m. Saturday. An additional beach at Wilborn Creek on the northwest portion of the lake will be opened at a later date.

Lake Shelbyville stretches across much of Shelby and Moultrie counties, north and south from Bethany to Shelbyville and west and east from Findlay to Allenville.

"We just want to remind visitors there are no lifeguards on duty, and families are urged to keep a close watch on their children at all times, and we recommend lifejackets, too," Shafer said.

The lake has benefited from a $2 million building program that is helping beach areas with new shower houses and other structures, Shafer said.

"We're replacing an old shower building at Dam West with an all-concrete structure. That will require less maintenance and offer more storm protection," Shafer said.

The high water, combined with wintertime icing conditions, damaged interiors and plumbing in the older structures. Some buildings have been raised to reduce flooding risk. Others have been relocated to offer more convenience to families using the beaches, officials said.

Lake Shelbyville is one of the most popular recreation lakes in Illinois, with more than 3 million visitors stopping by each year for fishing, boating, camping and hiking, in addition to swimming. The closure of the beaches in recent years, including 2007 due to low water conditions, might have steered some families away from the lake. However, the nearby Shelbyville Aquatic Center at Forest Park, just west of the Ninth Street Beach in the Dam West area, might have picked up some extra visitors looking for outdoor swimming.

As to the outlook for this year's lake level, Shafer said water control surveys indicate the summer might go well.

"It looks pretty good right now. We have a drier spring and a slow and steady rise in the summer pool level. We had the level at 599.35 this morning. That makes us less than half a foot to be at the summer pool level," Shafer said.

Lake Shelbyville - The 2009 camping season will soon be here, so make your camping trip plans now to come out and enjoy the beauty of spring. The US Army Corps of Engineers at Lake Shelbyville would like to announce that the campground opening dates and fees for the 2009 season are as follows:

- Bo Wood Campground opens Thursday, April 16: $18-22 per site/night

- Lithia Springs Campground opens Thursday, April 16: $18-22 per site/night

- Coon Creek Campground opens Thursday, May 7: $18-22 per site/night

- Lone Point Campground opens Thursday, May 21: $16-22per site/night

- Opossum Creek Campground opens Thursday, May 21: $16-22 per site/night

Reservable as well as first-come first-serve campsites are available in all of the US Army Corps of Engineers campgrounds at Lake Shelbyville. If you are interested in reserving a campsite there are three ways reservations can be made: 1) By calling toll free 1-877-444-6777 2) By Internet www.recreation.gov 3) In person at the campground fee booth.

The beaches at Lake Shelbyville will open Saturday, May 23, 2009. This includes Dam West, Sullivan, and Wilborn Creek beaches. $1.00 per person per day is charged for the use of US Army Corps of Engineers public beaches. The total day use fee paid shall not exceed $4.00 per day per vehicle. No day use fees are charged for children under the age of 13 or persons camped in US Army Corps of Engineers campgrounds. Annual passes are available for $30.00. Annual passes can be purchased at the Lake Shelbyville Project Office east of Shelbyville, IL off of IL Route 16, US Army Corps of Engineers campgrounds, and West Okaw Wildlife Management Area Office east of Bethany, IL off of IL Route 121.

For more information contact the Lake Shelbyville Interpretive Services/Public Relations Office by email at lakeshelbyville@usace.army.mil or by calling 217-774-3313.

Store from the Shelbyville Daily Union. Jump over there for more great information about the Shelbyville area. To see campground opening dates store visit http://www.shelbyvilledailyunion.com/local/local_story_086150533.html

It is official! Quinn announced reopening th closed state parks around the state of Illinois. After the very public oust of Blagojevich, Quinn has started reurning Illinois to what it should be.

"This is a great day for the people of Illinois. State parks protect some of our most precious habitat and provide opportunities for families to find outdoor recreation close to home. These are the people's parks and the people have the right to enjoy them in good and bad economic times," stated Governor Quinn. "The value of these open spaces is immeasurable to children, families and local communities that depend on these parks for crucial economic stability."

Reopening these state parks provides a great source ofincome to the surrounding communities as well as providing over 8000 jobs throughout the state.

Some local facts:
-Over 40 millions people visit Illinois State parks each year.
-The people that visit these state parks spend an esimated $500 million dollars in thelocal communities.

Beginning July 18 new policies will take effect regarding rafting of boats on Lake Shelbyville . A raft is two or more boats tied together. This is part of a comprehensive effort to stem a trend of water-related fatalities at Lake Shelbyville where four people have died in 13 months. This is not an attempt to limit recreation, but we must do everything in our power to turn this trend around and help insure that safety is the first part of fun.

"These new policies are being instituted to provide a safer environment for visiting boaters on Lake Shelbyville ," said Ricky Raymond, Lake Shelbyville Operations Manager. "We want everyone to have a safe, fun visit to Lake Shelbyville and most importantly return home safely too. I`d like to say thank you in advance to our boaters for adhering to the new policies."

Starting July 18, no more than five (5) boats will be permitted to be tied together, with no more than fifty (50) people on any given raft of boats. The new policy requires a minimum of 150 feet between another raft.

Individuals may apply for a Special Use Permit for rafts of vessels up to a limit of twenty (20) vessels. The application must include the name, address, and phone number of the applicant; the proposed location of the raft; the number of vessels and the state registration numbers for each vessel included in the raft; and the name of the owner/operator of each vessel in the raft. Standard additional restrictions for this Special Use Permit include the following:

* No alcoholic beverages in "kegs" or on tap.

* No public address/music systems.

* US Coast Guard approved Type I, II, III, or V personal flotation devices must be worn at all times unless person is below deck or in an enclosed cabin.

* No more than four (4) persons per vessel will be allowed for each additional vessel over five (5). For example seven (7) vessels in a raft would be limited to a total of fifty eight (58) persons in the raft.

* Additional conditions may be required if warranted by the scope of the special use.

Special Use Permits will be available from the Lake Shelbyville Project Office, RR 4, Box 128B , Shelbyville , IL , 62565 , phone 217-774-3951, fax 217-774-2014. If requested by mail, please allow ten (10) business days for processing and mailing. Requests in person or by fax can normally be processed the same day.

In light of the number of fatalities on the lake in 2007 the CPO plan on getting a little harder on drinking and driving on the water. According to numerous sources plan on seeing quite a few more Corp driving around Cove Five this year. While officials with the US Army Corp of Engineers and Shelby County Sheriff's Office have both stated that there will be no anticipated increases in officer presence this year, those who boated Shelbyville the past few years have heard otherwise. Corp presence was noticeably more visible in 2007 than it was in 2006 and is expected to become more so this season.

It's official.  The 2010 rafting rules are going to say the same as they have been for the past two years. 

50 person max on a raft
5 boat max in a raft
no kegs or pa systems
150 ft minimum between rafts
etc etc.

If you want to see what else was discussed at the Corp meeting please visit:
http://www.herald-review.com/news/local/article_252cb14e-59de-5860-9262-d423f23c5829.html