Beale Speaks Too Soon On West Side Costco
By Chuck Sudo in News on Mar 9, 2011 6:25PM
Remember yesterday when 9th Ward Ald. Anthony Beale put his foot down on the construction of the new Costco at 14th and Ashland because he feared the Illinois Medical District (and not the city) would be making money on the 2007 land swap that preceded it? Either Beale looked more closely at the numbers or someone more powerful than him in City Council told him to quit being a wet blanket, but he's alright with it today.
Beale was reminded that the Medical district lost land in the 2007 swap with the city and that the rental income will be earmarked towards paying down the debt on the bonds financing its capital projects by 33 percent. That seemed enough to soothe the savage Beale.
“They’ve informed me that their money is not profit, because they’re a not-for-profit organization. Their money is rolled back over into bond debt they incur over time. That was not articulated Friday like it should have been,” Beale said.
As reader Rohmen also noted yesterday, the new Costco will be generating tax revenues for the city. Whether it's the projected $27 million the city is projecting is another matter, but it isn't as though the city is getting fleeced in the deal.