Creative financing?
The Feds are investigating how friends of a prominent fundraiser for Illinois Governor Rod Blaogojevich managed to obtain leases for restaurants at Illinois highway toll plazas. Needless to say, having a restaurant in such a locale can be quite profitable.
Federal prosecutors issued subpoenas looking at how restaurants with connections to a Gov. Blagojevich fund-raiser scored leases at seven Illinois State Toll Highway Authority oases, a tollway spokeswoman confirmed Friday.
The single subpoena delivered earlier this year specifically asks for copies of the leases and any documents, correspondence and memos related to oases general contractor Wilton Partners, and Subway and Panda Express restaurants, which have connections to Blagojevich fund-raiser Antoin “Tony” Rezko, sources said.
After reviewing oases lease agreements in March, the Chicago Sun-Times reported that two oases vendors scored lease deals that 17 other companies did not.
Subway and Panda Express had each of their rents cut in half for the first 12 months of their 10-year lease agreements, those records show.
Tollway officials have said they knew about the break in rent, but said the deal was made to secure high-profile national tenants at the oases.
Subway and Panda Express got deals that were nearly identical. The restaurants each pay $4,166.66 a month, which doubles to $8,333.37 in the second year. Other major chains, including Starbucks and McDonald’s, did not get first-year rent reductions, the Sun-Times reported.
Neither spokesmen for Wilton Partners nor Blagojevich’s office returned calls seeking comment.
Rezko’s attorney, Joseph Duffy, said he had not heard about the subpoena and declined to comment.
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