EXTRA ) Marion of Illinois, LLC. / City of Marion

( here we have a 51,000 sq. ft. medical building playing “musical properties” on city land )  Documents

  1. In May of 2000, a land lease agreement was entered into by the City of Marion and Marion of Illinois, LLC. for the construction of a large 51,000 sq.ft. commercial building for use by the Wisconsin Physicians Service Insurance Corporation.

  2. In May of 2000, a “Subordination, Non- Disturbance and Attornment Agreement was signed by and between Associated Commercial Mortgage, Inc. (lender) and Marion of Illinois, LLC. (borrower) and Wisconsin Physicians Service Insurance Corporation ( tenant ) attaching a 12.7786 acre piece of a 46.45 acre parcel PIN # 06-17-200-026, owned by the City of Marion ( lessor ).

  3. In May of 2000, Marion of Illinois, LLC. signed, and the City of Marion executed, a $ 4,800,000.00 mortgage with Associated Commercial Mortgage, Inc. with Mayor Robert L. Butler signing for the city , and Attorney Thomas Jilot signing for a Robert A. Blettner for Marion of Illinois, LLC.

  4. This $ 4,800,000.00 mortgage was secured by the 12.7786 acre part of a 46.45 acre tract of land owned by the City of Marion, which is shown as PIN # 06-17-200-026, along with all improvements.

  5. In 2001, a 51,000 sq. ft. commercial building was constructed on the site, PIN # 06-17-200-026, located in the Robert L. Butler Industrial Park on the west side of Marion, just south of Illinois New Route 13, in Marion, Illinois.

  1. In June of 2003, the City of Marion deeded to Marion of Illinois, LLC. two strips of land adjacent and west of the 51,000 sq. ft. building totaling 7.64 acres and described as parking parcels #1 and #2. The deed was prepared by the City of Marion Clerk, Elizabeth J. Strobel. The deed was signed by Mayor Robert L. Butler and Elizabeth J. Strobel, with an attached plat of survey by Clarida Engineering of Marion, and recorded at the Williamson County Courthouse. These two parking parcels are now identified as PIN # 06-17-200-025.

  2. In July of 2005, an Amendment to Mortgage Security Agreement and Financing Statement was filed at the Williamson County Courthouse and signed by and between the Lender, Associated Bank, National Association and the Borrower, Marion of Illinois, LLC. and also executed by the City of Marion, subjecting the fee interests of the City of Marion to that of the Lender’s, Associated Bank, National Association.

  3. A second amendment was signed and filed by the same parties in September of 2013.

  4. The 51,000 sq. ft. building financed by this mortgage by Marion of Illinois, LLC. and leased in a ten year lease with two five year options agreement to Wisconsin Physicians Service Insurance Corporation is absolutely located on PIN # 06-17-200-026, which by all apparent accounts is owned by the City of Marion. ( see Williamson County GIS photo in Exhibit )

  5. However, for some unknown reason this building has been taxed on a completely different, adjacent, and vacant 21.01 acre land tract also owned by the City of Marion, PIN # 06-17-400-012, and the bills sent to The Blettner Group and shown paid, for the tax years ( earliest I was able to procure copies of ) of 2004/2005, 2005/2006, 2006/2007, and 2007/2008.

  6. The 51,000 sq. ft. building continued to be taxed on PIN # 06-17-400-012 for the tax years from 2008/2009, 2009/2010, 2010/2011, and 2011/2012, but the tax bill recipient and mailing address were changed without explanation to Marion of Illinois, LLC.

  1. The 51,000 sq. ft. building incorrectly listed as on PIN # 06-17-400-012 for all these years has enjoyed the tax benefits of an “enterprise zone” the entire time. The “enterprise zone” benefit disappeared for the 2012/2013 tax year.

  2. For the tax year of 2012/2013, the building was taken off of the tax bill for PIN # 06-17-400-012 and transferred to PIN # 06-17-200-026 for the first time ( which is actually the land it sits on ) and the recipient’s name on the tax bill for 06-17-200-026 was changed to Marion of Illinois, LLC. for the first time.

  3. PIN # 06-17-200-026 had been tax free and had been in the name of the City of Marion from 2005 through the 2011/2012 tax year.

  4. There is no recorded deed showing Marion of Illinois, LLC. as the owner of PIN # 06-17-200-026. ( see #6 above – Marion of Illinois, LLC. was only deeded the two parking parcels aka PIN # 06-17-200-025. )

  5. PIN # 06-17-200-026 showed it was taxed for a total fair cash value of $ 6,731,628.00 for the 2012/2013 tax year and that a total of $ 146,988.70 in taxes was paid.

  6. PIN # 06-17-400-012 on the other hand, went back to zero taxes, and the recipient is now the City of Marion.

  7. The published changes listed in the Marion Daily Republican newspaper for the 2013/2014 tax bills show that now at least part of PIN # 06-17-200-026 ( that’s the one the 51,000 sq. ft. building sits on ) in the name of the City of Marion now has a reduced assessment of $ 5,550,420.00.

This type of tax parcel manipulation for what appears to be either huge enterprise zone tax abatement benefits, or just plain incompetence by the City of Marion and the Williamson County Tax Assessor leave the taxpayers at risk, and defrauds the taxpayers of trust for honest services by their government officials.      

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