Buffalo Grove leaders appear poised to let a local off-track betting parlor to continue operating under new ownership – even though the ordinance that allowed it to open forbids it to change hands.
Buffalo Grove trustees directed village staff Monday night to revise the 2009 ordinance to reflect the change in ownership now that Inter-Track Partners LLC, which was awarded the license to operate an OTB inside Adam’s Rib and Ale House, has been dissolved.
Jeffrey Kras, chief financial officer of Hawthorne Race Course, Inc., told trustees Monday that Inter-Track was a consortium formed by several Illinois horseracing tracks, including Hawthorne, Balmoral Racing Club and Maywood Park Trotting Association.
A majority of trustees decided Monday they could allow the change because Hawthorne was part of the original consortium that was granted the special use.
“Whether you want to call it a technicality or not, they were part owners to begin with,” said Eric Smith, who was sworn in as trustee Monday to replace Lisa Stone, who voters recalled in last month’s election.
Inter-Track was forced into foreclosure by its lender in September after the LLC became over-leveraged, Kras said.
“We saw it as an opportunity to take on those assets,” Kras said of Hawthorne’s decision to take over the Buffalo Grove OTB at 301 Milwaukee Ave. “As of Jan. 1, 2011, Hawthorne will hold the license” – pending state approval.
While Hawthorne has applied to the Illinois Racing Board for a license for the Buffalo Grove location, the site is currently operating on a pari-mutuel wagering license held by Balmoral.
Since the village ordinance calls for “immediate termination” of the special use on any sale or transfer of ownership, it appears that Balmoral has been operating the facility in violation of village ordinance since September. Buffalo Grove officials said they only learned about the dissolution of Inter-Track recently when its business license renewal request was filed by Hawthorne.
Trustee Beverly Sussman was one of two trustees who voted against the OTB when the village approved the facility in 2009, despite an outcry of opposition from the community.
“I feel the special use should have been terminated the day we found out about the ownership change,” she said. Several trustees joined her in criticizing Hawthorne’s delay in advising the village of the change.
“I think this is one time we should pay attention to our ordinances,” agreed resident Craig Horwitz, one of three residents who spoke against the change. Horwitz said the original ordinance was poorly written and suggested Hawthorne start the entire application process from the beginning.
“A mistake was made,” Kras said of why it took so long for the village to be notified. “You get a lot of attorneys involved, you get a lot of bankers involved…”
Trustee Jeff Braiman noted that the village doesn’t typically shut down businesses.
“What we try to do is work with them to get them in compliance,” Braiman said.
That work will include a revised ordinance that keeps all the conditions and restrictions contained in the original special use permit. Sussman was the sole no vote to proceed with that.
Trustee Steven Trilling concluded the discussion by focusing on the revenue the OTB generates – estimated at $70,000 this year – and police reports indicating there has been little serious trouble there.
“I’m not personally willing to give up on the revenue that could cost us one firefighter or one police officer and that hasn’t been a detriment to the community,” Trilling said.
Village officials say the revised ordinance could be back for action at the village board’s next regular meeting on Dec. 20.
Shelley Kalita, general counsel for the Illinois Racing Board, said Hawthorne’s license application will be considered at racing board meeting on Dec. 21. If granted, the license would be valid for the calendar year 2011.
