On a split vote, River Forest’s village board approved a real estate broker services contract with Jones Lang LaSalle (JLL) to market the village-owned property at 7600 Madison St. The Feb. 10 vote capped a two-week-long roller coaster ride.
Officials were expected to vote Jan. 27 on the contract but the vote was tabled after an ethics complaint was filed that day by resident Margie Cekander. Although village officials have not released details of the complaint, citing a confidentiality clause in the ethics ordinance, the complaint is apparently related to the participation in Economic Development Commission (EDC) discussions by Walt Wahlfeldt, who works for JLL and was an EDC member at the time. He has since resigned from the commission.
The village’s Ethics Commission was expected to address the complaint at a hearing Jan. 31 but its members determined they did not have jurisdiction over the matter. Commission Chair Peggy Daley announced after an executive session at that hearing that she and fellow commissioners Greg Ignoffo and Rebecca DeGroff determined that, although they have jurisdiction over other ethics complaints, they do not have jurisdiction over those pertaining to a conflict of interest, which apparently is at the heart of Cekander’s complaint.
They voted unanimously to ask the village board to amend the village’s ethics ordinance to allow them jurisdiction and to keep the proposed contract with JLS on hold pending a resolution of the complaint. In making her announcement, Daley said the commission previously had jurisdiction over conflict of interest complaints before the ethics ordinance was amended in 2022.
On Feb. 10, however, the village board voted 4-2 to approve the contract with JLL, effectively resolving that complaint and a similar complaint raised by Cekander in an email message sent to officials that afternoon. The vote followed a discussion lasting more than an hour that was more about the complaints than the contract.
After the meeting Cekander expressed her displeasure over the outcome and accused officials of “whitewashing.”
Trustees Erika Bachner and Katie Brennan voted against the contract, with both citing concerns over the process. Trustees Lisa Gillis, Ken Johnson, Bob O’Connell and Respicio Vazquez voted in favor.
Village President Cathy Adduci disputed Daley’s recollection of changes made to the ethics ordinance in 2022.
“Conflict of interest complaints were always under the village board,” she said, noting that other communities follow similar procedures. “I’m not sure the village board wants to release conflict of interest authority.”
O’Connell and Vazquez supported Adduci’s statement.
“It was a misunderstanding,” Vazquez said. “People are saying we changed it, but we didn’t.”
Bachner and Brennan both asked why the complaint was referred to the ethics commissioners if other officials knew they did not have the authority to act.
Bachner and Brennan both advocated honoring the request from the ethics commissioners to keep the contract on hold.
Brennan suggested “taking a breath,” adding, “Why not wait to do it right?”
Bachner suggested that JLL officials be asked to verify in writing that Wahlfeldt did not receive any benefit such as a finder’s fee, which others agreed to consider.
“We want to do what’s right,” Adduci said, adding she was concerned about the negative effect on members of the village’s many commissions and committees.
“These people are all volunteers and we don’t want them to be dragged through the mud,” she said.
In a Jan. 27 memo to officials, Matt Walsh, village administrator, explained that the village had “passively marketed” the village-owned properties on Madison for sale “for several years.”
Among methods for attracting interest in the properties discussed by the economic development commission was using a dedicated real estate broker, he said. That led to publication of a request for proposals (RFP) for broker services in spring 2024. The proposal from JLL was among five proposals received.
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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 Wahlfeldt worked for JLL.
“To address 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, Malina 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.
“The initial conflict of interest was acknowledged and dealt with,” Malina said Feb. 10. “There was no true financial interest and Wahlfeldt had no participation in the reviews.”
Under the contract, the village will pay JLL a base fee of $100,000 or 5.5% of the gross purchase price, whichever is greater. Walsh explained that the fee option 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 (LCFS) Building, and former private homes at 10 Lathrop Ave. and 11Ashland 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.