State Senator Dan Rutherford (R-Pontiac), GOP candidate for Illinois State Treasurer, questioned current State Treasurer Alexi Giannoulias and his staff on what business analysis they used to determine the sale of a state-owned hotel asset for less than half the appraised value.
The Treasurer and his staff had two different appraisals of the President Abraham Lincoln Hotel & Conference Center in Springfield. The Chicago Sun-Times obtained copies, through Freedom of Information requests, showing the appraised value in the range of $17 million to $22 million. The Treasurer and his staff sold the property at auction for $6.5 million. An appraisal after the sale pegged the value at $11.2 million.
“I appreciate more than most the need to have cash in the state treasury, but it is apparent a logical business approach was not taken in the disposition of this state asset,” said Rutherford. “When a private industry expert notes that it does not make sense to sell such a property at such a low price, unless there is other motivation, it makes one question what that motivation was and ask what business analysis was used to make the decision.”
“Previously learning that $150 million was lost in Bright Start funds and now that a state asset, which was making a profit, was sold for less than half its appraised value should cause one to take pause and expect answers from the Treasurer and his staff,” emphasized Rutherford. “I ask the Treasurer and his staff for those answers. What business analysis did they use on the hotel decision?”
Contact: Dan Rutherford
Link to Press Release: