MATTOON, IL (ECWd) –
Updated at the bottom on 10-1-2013…
After learning that there were potential real estate property tax objections, either filed or ready to be filed, related to Lakeland College (LLC), we decided to find out why a property owner would file a tax objection against LLC, our local community college.
What we found was that it was business owner(s) filing the objection, claiming LLC was in direct competition with them for local business. This competition comes from LLC’s operation of a “print shop” that accepts and fulfills orders from both LLC, and from locals that want those services. Just so you get this straight; business (property) owners pay real estate taxes, which in part go to LLC, and then LLC effectively takes their potential customers by providing the same services the business provides.
Let’s Start With The FOIA Request
We submitted a Freedom Of Information Act Request (FOIA) to LLC seeking public records, and here was their response:
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This will confirm Lake Land College’s receipt on September 7, 2013 of your attached request pursuant to the Illinois Freedom of Information Act (“FOIA) dated September 7, 2013. The records sought by your request are listed below, followed by the College’s response to each item.
1. Copy of the Print Shop policy on soliciting/providing print shop services to non-governmental agencies/individuals.
Response: The College has no documents responsive to this request.
2. Copy of the Print Shop policy on soliciting/providing print shop services to governmental agencies/individuals.
Response: The College has no documents responsive to this request.
3. Copy of the Print Shop policy on soliciting/providing any work, other than LLC work.
Response: The College has no documents responsive to this request.
4. Copy of all invoices/receipts of all print shop work performance for non-LLC agencies/individuals since Jan 1, 2013.
Response: The College has 604 pages of documents responsive to this request. See attached PDF file “Documents Responsive to Item No. 4.”
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Who Uses The LLC Print Shop?
Normally it wouldn’t matter to us where people or businesses purchase items they use, but when a public body is in direct competition with private businesses it makes a difference (see the list here from Jan-Aug 2013). The LLC Print Shop invoiced and received well over $100,000 just in the first 8 months of 2013. Their “customers” were local churches, local businesses, individuals, photographers, private graphics businesses, and local organizations that purport to “further the interest of business” such as the Mattoon Chamber of Commerce, Mattoon Rotary, Sullivan Chamber of Commerce, and the East Central Illinois Development Corporation (ECIDC) just to name a few.
I would urge each and everyone of those using this service to re-think what you are doing – governments should not be in competition with private business!
Why Does It Matter?
Money to the local economy, employees to local businesses, sales taxes, and income taxes just to name a few. All taken from private businesses by a tax supported public body.
What Does The Statute Say?
The Illinois Community College Act does not give a community college the authority to operate a business in direct competition with local businesses. How can they think it’s OK to tax a person, and then compete with them?
Now we must bring up Dillon’s Rule again: Dillon Rule,” which states that municipal governments only have the powers that are expressly granted to them by the state legislature…” The state legislature grant powers thru statutes, and the applicable statute here does not give LLC the power to compete with private business.
Two emails seeking input from the LLC and its President have gone unanswered for 5 days, so they must not have any comments to provide. What I asked was for their comments and specifically any comments on which statute allows them to do what they are doing. We would still love to hear from them.
[gview file=”https://edgarcountywatchdogs.com/wp-content/uploads/2013/09/LLC-Spreadsheet.pdf”]
Spreadsheet developed by Judy Pufahl of Paris, Illinois…
UPDATE: 10-1-2013
More statutoral references…
Paragraph 1(a) of 11o ILCS 205, Board of Higher Education defines Public Institutions of Higher Education as:
<span style="font-family: Courier New; font-size: small;">(a) "Public institutions of higher education": The University of Illinois; Southern Illinois University; Chicago State University; Eastern Illinois University; Governors State University; Illinois State University; Northeastern Illinois University; Northern Illinois University; Western Illinois University; <span style="text-decoration: underline;">the public community colleges of the State</span> and any other public universities, colleges and <span style="text-decoration: underline;">community colleges now or hereafter established or authorized by the General Assembly</span>.</span>
Statute 110 ILCS 115, University Credit and Retail Sales Act specifically prohibits sales of certain items if those items can reasonably be expected to be in competition with private retail merchants in the community:
<span style="font-family: Courier New; font-size: small;">Sec. 1. </span><span style="font-family: Courier New; font-size: small;">Prohibition; exceptions. </span> <span style="font-family: Courier New; font-size: small;">(a) The governing board of a State institution of higher learning may not permit or authorize a retail store carrying any line of general merchandise to be operated by that institution or to be operated on property held or leased for the use of the institution when such an operation can reasonably be expected to be in competition with private retail merchants in the community, unless the goods sold by that store are unavailable in quantities sufficient to meet the reasonably expected student demand, are unavailable on a year round basis or were commonly sold by the institution or on such property before January 1, 1980. The governing board of a State institution of higher learning also may not permit or authorize any person to conduct a business of selling goods, services, or a combination thereof to the general public on property held or leased for the use of the institution when such an operation can reasonably be expected to be in competition with private retail merchants in the community unless such merchants have the opportunity to compete for the operation of such a business on such property. "Person" means an individual, corporation, business trust, estate, trust, partnership, association, cooperative, or any other legal entity. This Act does not prohibit the sale by such an institution or on such property of items commonly sold by such institutions before January 1, 1980. "Commonly sold" means exclusively those lines of products sold in the regular course of business prior to January 1, 1980. This Act does not prohibit the sale of goods which are the result of technological advances since 1980 and are required for assignments or classroom activities.</span>
(a) The governing board of a State institution of higher learning may not permit or authorize a retail store carrying any line of general merchandise to be operated by that institution or to be operated on property held or leased for the use of the institution when such an operation can reasonably be expected to be in competition with private retail merchants in the community, unless the goods sold by that store are unavailable in quantities sufficient to meet the reasonably expected student demand, are unavailable on a year round basis or were commonly sold by the institution or on such property before January 1, 1980. The governing board of a State institution of higher learning also may not permit or authorize any person to conduct a business of selling goods, services, or a combination thereof to the general public on property held or leased for the use of the institution when such an operation can reasonably be expected to be in competition with private retail merchants in the community unless such merchants have the opportunity to compete for the operation of such a business on such property. "Person" means an individual, corporation, business trust, estate, trust, partnership, association, cooperative, or any other legal entity. This Act does not prohibit the sale by such an institution or on such property of items commonly sold by such institutions before January 1, 1980. "Commonly sold" means exclusively those lines of products sold in the regular course of business prior to January 1, 1980. This Act does not prohibit the sale of goods which are the result of technological advances since 1980 and are required for assignments or classroom activities.
With that said, it is my understanding, and we have a letter written to Chapin Rose a few years back, that the print shop at EIU used to do the same things that LLC is doing now – and Rep. Rose was instrumental in getting it stopped. The same thing needs to happen in this case.
