My suggestions for Illinois’ bankruptcy auction

Blogger at the Damen Silos

By John Ruberry

Last week I suggested that Illinois, arguably the most broke state in America, put itself under receivership to fix its dire financial problems, which include nearly $8 billion in unpaid bills and an astounding $138 billion in unfunded pension obligations.

I chose receivership as bankruptcy is not a legal option for the fifty states. Then Senate Majority Leader Mitch McConnell (R-KY) offered bankruptcy as a possibility, so it appears he’s open to changing the law so financially reckless blue states, Illinois, as well as New York and California, can call into one of those 800 lines that advertise on television late at night offering Chapter 11 as a salvation. (Okay, I’m kidding on the 800 line.)

Oh, Mitch, your home state of Kentucky also has a financially anemic public worker pension fund.

So state bankruptcy is no longer a pipe dream, although Illinois and New York’s Democratic governors, J.B. Pritzker and Andrew Cuomo respectively, immediately dismissed McConnell’s sound idea. But right now these blue states are acting like old-money aristocrats who believe bankruptcy is beneath them even though their income stream has dried up and their trust funds are depleted.

When there is a bankruptcy there is often a liquidation sale. Illinois has many valuable assets. Not enough to cover the $7 billion in unpaid bills–let alone the $138 billion in unfunded pension obligations–but the Land of Lincoln has to begin somewhere to dig itself out of the hole created by irresponsible politicians from both parties. So here are my suggested on what needs to go.

The Damen Silos: Illinois has owned the abandoned grain silos at Damen on the Sanitary and Ship Canal on Chicago’s South Side since the 1970s. It’s a popular spot for urban explorers–I’ve been there–and for graffiti-taggers. An explosion scene for Transformers: Age of Extinction was filmed at the silos. But the state has owned it four over four decades. Get rid of it. The location is also near Interstate 55. While demolishing the site will be pricey for the new owner which will drive down the selling price, every dollar counts during Illinois’ financial emergency. As it stands now, the Damen Silos are a towering monument to Illinois incompetence.

Illinois’ governor mansion: The last Illinois governor to live full-time in America’s third-oldest governor’s mansion was Republican Jim Edgar, he of the failed “Edgar ramp” pension rescue. He left office in 1999. Another Republican gov, one-termer Bruce Rauner, led the recent private efforts to restore the residence, which was in poor shape. The renovation cost $15 million. The project was completed last July. Four months later Pritzker trounced Rauner in his reelection effort.

Sell the mansion. It can be central Illinois premier luxury B&B. In fact it can be America’s premier luxury B&B.

When Illinois’ governor needs to be in Springfield there are plenty of hotel rooms to choose from there. Or the state can buy a humble bungalow for the governor.

A whole bunch of state parks: Illinois has 142 state parks. Many are tiny and little-visited. Illini, William G. Stratton (named for a governor who was indicted for tax evasion), Jubilee College, and Gebhard Woods state parks immediately come to mind as expendable. At least of half of Illinois’ state parks need to go on the auction block. Illinois has a very popular state park that I’m thinking of that I’ll talk about later.

The former Tinley Park mental health facility: Governor Pat Quinn shuttered the sprawling 250-acre site in 2012. There are toxic wastes that need to be cleaned up. But in real estate, of course, the most important concern is location, location, location. And the old asylum has a great one, at Harlem Avenue and 183rd Street in southern Cook County a few blocks away from an Interstate 80 exit.

Illinois Department of Transportation snow plows: Snow removal and the spreading of salt on roads where IDOT bears maintenance responsibility should be privatized.

Abraham Lincoln Presidential Library and Museum in Springfield: The Disney-esque ALPLM was the brain-child of Julie Cellini, the wife of longtime state contractor and power-broker William Cellini. A Republican, William got caught up in the Rod Blagojevich scandals which earned him a short stay in federal prison. Julie envisioned the state-owned library and museum as a way to upgrade Springfield as a tourist destination as opposed to merely being a two-hour detour and bathroom stop for travelers on I-55 who visited the Damen Silos in Chicago earlier in the day. It hasn’t worked. And it appears that the ALPLM was conned when it purchased $25 million worth of Honest Abe artifacts, the centerpiece of that swag was a stovepipe hat that was said to be worn by our 16th president. Except that there is no evidence that Lincoln ever wore that hat. At onetime the ALPLM owned a dress once worn by Marilyn Monroe. Who knows what other unrelated treasures that are gathering dust in closets there? Well here is one: There are five copies in Lincoln’s handwriting of his Gettysburg Address. All of them are considered priceless but a since-fired ALPLM director lent the one the library owns to a tiny museum owned by Glenn Beck for a paltry $50,000.

Illinois is incapable of running the ALPLM.

Lincoln’s New Salem: A twenty-minute drive north of Springfield near Petersburg is Lincoln’s New Salem. This was Lincoln’s first home away from his parents. The town lasted only ten years but it is central to Lincoln lore. This spot, consisting mostly of rebuilt log cabins, has many visitors, primarily kids on school field trips, but its value to buyers grows if it is packaged with the Abraham Lincoln Presidential Library and Museum.

Young Americans for Freedom owns the former Ronald Reagan Ranch in California. Perhaps they might be interested in the above sites tied to our first Republican president too. Hey, Disney might want to grab them for a Lincoln Land attraction. Is that a dumb idea? Well it is not as dopey as buying a Marilyn Monroe dress for a Lincoln museum.

The James R. Thompson Center in Chicago: Colloquially known as by its original name, the State of Illinois Center, it was designed by renowned German-American architect Helmut Jahn. Great artists are capable of colossal flops, after all Prince released several unlistenable albums, and Jahn’s Thompson Center is the turd in his career punch bowl. The heating and cooling systems have never worked well and they are expensive to operate. Its marble floors are slippery when visitors bring in snow from their shoes and it snows a lot in Chicago Ironically its atrium is supposed to be a monument to openness in government. But under the decades-long tenure of Boss Michael Madigan (D-Chicago), the speaker of the Illinois House, government in Illinois has not been transparent at all. The building is named for James R. Thompson, the Republican governor who signed the three-percent annual compounded pension raise into law. Governors back to Blago have suggested selling the white elephant, which sits on prime real estate in downtown Chicago.

Starved Rock State Park: Illinois’ crown jewel in its state park system is Starved Rock in LaSalle County. Desperate times call for drastic action and that is why the Prairie State needs to sell its most-visited state park, which includes an NPS-style lodge with cabins. Private industry can do a much better job running the park, which has crumbling roads, and perhaps new owners build a couple of more lodges. What did I say about location earlier? As with the former Tinley Park mental home, Starved Rock is a short drive from I-80.

What are your suggestions for things and places for divestment by Illinois?

John Ruberry regularly blogs from Illinois at Marathon Pundit.

2 thoughts on “My suggestions for Illinois’ bankruptcy auction

  1. A state that uses bankruptcy can be counted on to mortgage its inhabitants future in the future. Who invests in the feckless and unsound?

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