A planned vote by River Forest officials on a contract with a real estate broker is on hold pending an investigation into an ethics complaint.
Officials were expected to vote at the Jan. 27 village board meeting on a proposed broker services contract with Jones Lang LaSalle of Chicago to market the village-owned property at 7600 Madison St.
The complaint was filed with River Forest’s local ethics commission.
“On Monday, the village received an ethics complaint from resident Margie Cekander,” village Administrator Matt Walsh said. “In accordance with the village’s ethics ordinance, the ethics commission will convene later this week to review the complaint and make a determination. The commission has expressed a desire to review and make a determination quickly.
Details of the complaint were not made available.
Although no vote was taken Jan. 27, Walsh gave a presentation on the proposed contract and answered officials’ questions during a brief discussion that followed.
“For several years the village has passively marketed the village-owned properties on Madison for sale,” Walsh explained in a memo to officials. “
Among methods for attracting interest in the properties discussed by the economic development commission was using a dedicated real estate broker, he said, which led to publication of a request for proposals for broker services in spring of 2024. The proposal from JLL was among five proposals received.
JLL was identified as the preferred choice by a review team of EDC commissioners Tim Brangle and Cuyler Brown, chairman, along with Walsh and Jessica Spencer, assistant village administrator.
Prior to drafting the RFP, staff members were reminded that EDC commissioner Walt Wahlfeldt works for JLL.
“To address concerns any potential concerns regarding the appearance of a conflict of interest, staff and the chairman discussed the matter with Wahlfeldt, focusing on his role within the company and its relevance to the RFP,” Walsh said in the memo. “Commissioner Wahlfeldt clarified that he works in a department unrelated to the one that would review, respond to or perform the tasks outlined in the RFP but, out of an abundance of concern, he would recuse himself and not participate in the selection process.”
When JLL was introduced as the selected preferred firm at the January EDC meeting, Wahlfeldt abstained from voting and publicly disclosed his role with JLL. At that meeting, commissioners requested that a legal opinion be provided to the village board. Subsequently, the village attorney has provided that opinion, stating he believes there are no concerns regarding conflict of interest. The vote to recommend JLL was approved by a 4-0 with Wahlfeldt abstaining.
Under the proposed contract, the village would pay JLL a base fee of $100,000 or 5.5% of the gross purchase price, whichever is greater. Walsh explained that the fee was included in the event that a sales price is below market value in order to attract the right development. The contract allows JLL 270 days to market the properties at 7612-7620 Madison, former site of the Lutheran Child and Family Services Building, and former private homes at 10 Lathrop Ave. and 11 Ashland Ave. The three buildings sat empty from the time they were purchased by the village — the LCFS building in 2017, 10 Lathrop in 2018 and 11 Ashland in 2019 — until they were demolished in 2023.
