By Benjamin Yount    217-528-9844

SPRINGFIELD  –  One lawmaker in Springfield says kids are learning the wrong lesson from their school’s menu.  Chicago Democrat Monique Davis says kids are being served too many desserts or other sugary snacks.

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By Kevin Lee (217)528-9604
SPRINGFIELD — Illinois is set to receive $6.5 million from the sale of the President Abraham Lincoln Hotel & Convention Center in downtown Springfield.

Steve Horve, a hotel developer and a Forsythe native, had the highest bid in Monday’s auction for the 316-room hotel.

The state has ten days to accept the bid, but state Treasurer Alexi Giannoulias indicated he wanted to move forward with the transaction.

“We will get it done today or tomorrow,” he said. “We don’t have any intention of dragging this out any longer. It’s been over a quarter-century, so we would like to put this to bed and move on.”

The Lincoln Hotel has been a financial drain on the state since its construction in 1980s, when a group led by political insider William Cellini used a $15.5 million state-backed loan for the hotel’s construction.

The owners soon fell behind mortgage payments, even though state officials reworked the loan agreement in 1990 so that the owners only had to make payments when the hotel made a profit.

When the state took control of the hotel last year, the amount owed to the state had ballooned to $30 million, with interest growing at more than $70,000 per month.

Giannoulias used the public auction to recoup some of those funds.

“The good news is we’re putting this behind us,” Giannoulias said. “The terrible news is that for a quarter-century, this has been a black eye to Illinois.”

Horve said he had no previous connections with Cellini or the previous owners.

If his bid is accepted, Horve would have five hotels in Illinois and one hotel in Michigan.

Horve purchased another struggling hotel from a government body in 2007, when he bought the Decatur Conference Center and Hotel from the city of Decatur for $7.2 million. Decatur took over the property in 2007 to avoid foreclosure.

Horve said he would bring in new carpets, telephones and flat-screen TVs as early as next spring. He could not say how much potential improvements would cost.

By Kevin Lee (217)528-9604

SPRINGFIELD — Illinois is close to finally offloading a financially-troubled, state-owned hotel in Springfield from its books.

The state auctioned off the President Abraham Lincoln Hotel and Convention Center on Monday.

The auction signals the possible end of a two-decade long ordeal that began with political insiders taking out millions of dollars in state loans to construct hotels.

Downstate hotel developer Steve Horve [[ HORE-vee ]] submitted the winning bid of 6-and-a-half million dollars for the property.

That’s still well short of the 30-million-dollars owed to the state in loans and outstanding interest by the original owners.

The original owners, which include now-indicted political insider William Cellini, took out a 15-and-a-half million dollar state loan to construct the property in the 1980s. The owners soon fell behind on mortgage payments.

The state took control of the 316-room Lincoln Hotel in 2008 and invested 375-thousand dollars to make the hotel more marketable.

The state still has some paperwork to finish before completing the Lincoln Hotel deal, but state Treasurer Alexi Giannoulias says he’s confident Horve will be the next owner of the Lincoln Hotel.

Horve became interested in buying the Lincoln Hotel partially because of the Collinsville auction.

Horve bought another financially-troubled hotel owned by a government body last year, when he purchased the Decatur Conference Center and Hotel for more than 7-million dollars.

By Kevin Lee (217)528-9604

SPRINGFIELD — While most people are trying to find the right price on a hotel room this holiday season, Steve Horve [[HOR-vee]], might have found the right price on an entire hotel.

Horve, a downstate hotel developer, bought the President Abraham Lincoln Hotel and Convention Center in Springfield for 6-and-a-half-million dollars.

121409SteveHorve1                           :08                              …35-million-dollars today.”

The state is owed 30-million-dollars after the original owners failed to keep up on their mortgage payments.

The original owners, which included now-indicted political insider Bill Cellini, claimed the hotel could not be profitable. But the state managed to turn a 1.3-million-dollar profit after taking control of the Lincoln Hotel last year.

State treasurer Alexi Giannoulias has prioritized separating Illinois from hotel ownership. In July 2008, the state auctioned off a Collinsville hotel, another property originally owned by political insiders.

Horve became interested in buying the Lincoln Hotel partially because of the Collinsville auction.

The paperwork for the Lincoln Hotel deal has not yet been finalized, but Giannoulias was confident that Horve would become new owner of Lincoln Hotel in the new year.

By Kevin Lee                        (217)528-9604

SPRINGFIELD — Illinois school districts are taking a wait-and-see approach to the state’s pursuit of up to $400 million in federal education grants.

The state is pursuing its share of money in Race to the Top, a $4 billion competitive grant program organized by the U.S. Department of Education as a way to motivate states to enact education changes.

To maximize Illinois’ chances of receiving its $400 million share, state lawmakers may consider a plan to link teacher and principal salaries with student performance when they return to Springfield in January.

Illinois may tailor other education policies to align with “Race to the Top” objectives. But educational advocates and school administrators say it is still too soon to tell what new policies could be implemented.

Robin Steans, executive director for education policy group Advance Illinois, said Illinois has to take advantage of the federal grant program.

“There has simply never been an opportunity for a state to bring $400 million in to drive reform efforts,” she said. “And it’s coming at a time when Illinois and other states have significant fiscal issues.”

But Sara Watson, spokeswoman for Springfield Public Schools, said administrators in her district would need more time to assess how “Race to the Top” would affect her district.

“The Race to the Top is something that I think most of the school districts in the state and probably in the nation, would join us in being in that process of reading absolutely every bit of information we can get,” she said.

LaVonne Sheffield, superintendent of the Rockford School District, said “it’ll be interesting to watch” how Race to the Top develops.

“I think Race to the Top, if done properly, can rebuild the infrastructure for school systems and refocus teaching and learning to ensure success of all young people,” she said.

Illinois will submit its first Race to the Top application in January. The Obama administration will award Race to the Top money to states in September.

By Kevin Lee                        (217)528-9604

SPRINGFIELD  –  Illinois is part of a crowded field for the Race to the Top.

Robin Steans, with the education advocacy group “Advance Illinois,” says Illinois is “on the bubble” in its pursuit of 400-million dollars.

Race to the Top is offering over 4-billion to schools across the country.

Steans says Race to the Top is a great opportunity to change education policy.

The U.S. Department of Education has already said it wants to link teacher pay with student performance.  Steans says the department is also looking at other “criteria”

Rockford schools superintendent LaVonne Sheffield says she favors paying teachers according to how students perform in class.

She thinks the state’s pursuit of Race to the Top money could ultimately help reward teachers who are doing a great job in the classroom.

Illinois lawmakers may consider those first steps toward merit pay when they return to Springfield in January.

But other school districts are taking a “wait-and-see” approach.

Sara Watson, with Springfield’s school district, says officials there want to see how grant money would be split between the state and local districts.

Illinois’ next Race to the Top application is due in January. The Obama administration will award the first round of money in September.