HAVE TO ACQUIRE LAND FOU PROJECT, RECORDS INDICATE. WE ARE NOT
           AWARE OF OTHER STATE-OWNED SPACE?
           THE PEORIA AREA THAT WOULD BE SUITABLE FOR THE IDOT SPACE
           NEEDS, THE STUDY STATED, "ALSO WE DID NOT EXAMINE THE COST OF
           BUYING AND RENOVATING AN EXISTING FACILITY. ADDITIONALLY, WE
           DID NOT ADDRESS THE AVAILABILITY OF BOND FUNDS TO FINANCE THE
           CONSTRUCTION OF A POTENTIAL FACILITY. THREE YEARS EARLIER, IDOT
           HAD PROPOSED BUILDING A PEORIA REGIONAL HEADQUARTERS AND

           MATERIALS TESTING LABS ON A 34-ACRE SITE OWNED BY THE STATE ON
           THE STIS WEST SIDE. THE PRICE TAG AT THE TIME WAS $7.16
           MILLION," SAID RICHARD ADORJAN, AN IDOT SPORXMAN. "THE GENERAL
           ASSEMBLY REFUSED TO APPROPRIATE FUNDS FOR THE PROJECT SO THE
           STATE DECIDED TO LEASE. ADORJAN SAID "ID 0. T WAS NEVER TOLD
           ABOUT THE 1991 STUDY COMPARING THE COSTS OF LEASING WITH THE
           COSTS OF A NEW BUILDING. C.M.S. OFFICIALS SAY THEY NEVER

           CONSIDERED THE 34-ACRE SITE FOR BUILDING BECAUSE IT WAS 'TWO
           RURAL.'" BART LAVY SAID. THE SITE IS 9.3 MILES FROM PEE OTHER
           YAS DOWN TOWN. IDOT'S MAIN HEADQUARTERS IN SPRINGFIELD IS ABOUT
           FOUR MILES FROM DOWNTOWN. IDOT'S FORMER PEORIA HEADQUARTERS A
           SPRAWLING BRICK STRUCTURE ON THE STIS NORTH END AND WILL
           CONTINUE TO HOUSE MATERIALS TESTING LABS BUT THE SITE SOON WILL

           BE LARGELY ABANDONED. THE IDOT LEASE WAS NOT BECKER'S ONLY DEAL
           WITH THE STATE. SOON AFTER SIGNING THE IDOT LEASE IN EOTHER
           WITH A, THOMPSON AIDES SIGNED A $1.1 MILLION LEASE FOR THE
           ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY TO MOVE INTO A
           BUILDING OWNED BY BERK'S BUSINESS PARTNER, RUSSELL WALDSH
           SUBMIT. LESS THAN A YEAR LATER, THE BUILDING WAS SOLD TO HIS

           SON. LATER IN 1991, THE GENERAL ASSEMBLY RESTORED FUNDING FOR
           LEASED OFFICE SPACE FOR THE ILLINOIS INDUSTRIAL COMMISSION IN
           ANOTHER BECKER-OWNED BUILDING. THE FIVE-YEAR LEASE IS WORTH
           ABOUT $41,000 ANNUALLY. BECKER'S CONSTRUCTION COMPANY ALSO HAS
           BEEN A SUCCESSFUL COMPETITOR FOR STATE ROAD BUILDING JOBS. IN
           1987 AND 1989, HIS COMPANY WAS THE LOW BIDDER ON TWO CONTRACTS
           WORTH NEARLY $2 MILLION FOR PAVING AND RESURFACING STATE

           HIGHWAYS NEAR PEORIA AN IDOT SPOKESMAN SAID. BERK AND HIS
           PARTNER WALD WALDSCHMIDT SAID HIS ROLE AS A CONFIDANT PLAYED
           THAT ROLE. THOMPSON'S AIDES DEMANDED THAT THE TRANSPORTATION
           AGENCY LEASE BE SIGNED BEFORE THOMPSON LEFT OFFICE. SOME TOP
           ADMINISTRATORS HAD FAVORED PUTTING THE LEASE ON HOLD, A COMMON
           PRACTICE DURING TRANSITIONS, SINCE IT WOULD BIND EDGAR'S
           ADMINISTRATION TO THE PACT. THEIR CONCERNS, HOWEVER, WERE

           OVERRULED BY THOFRN SONG'S KEY AIDES, ACCORDING TO INTERVIEWS.
           EVEN AFTER THOMPSON LEFT OFFICE, HE CONTINUED TO HOLD -- TO
           TURN TO HIS OLD FREFRNDSS FOR FAVORS. SEVERAL MONTHS AFTER
           THOMPSON LEFT THE EXECUTIVE MANSION, THE DEVELOPER LENT HIS
           PRIVATE AIRPLANE TO THE FORMER GOVERN TO FLY TO JACKSON,
           MISSISSIPPI, FOR A REPUBLICAN PARTY FUNCTION, ACCORDING TO A
           THOMPSON SPOKESWOMAN. C.M.S. OFFICIALS HAVE BEEN AT LOGGERHEADS
           WITH THE STATE AUDITOR GENERAL'S OFFICE FOR MORE THAN A DECADE
           BECAUSE OF THEIR INSISTENCE THAT STATE LAW DOES NOT REQUIRE

           LEASES TO BE COMPETITIVELY BID. AGAIN, WHAT WE'RE TALKING ABOUT
           HERE IS COMPETITIVELY BIDDING A CONSTRUCTION CONTRACT CONTRACT.
           THE HOUSE HAS TAKEN A POSITION IN OPPOSITION TO THE UNITED
           STATES SENATE'S REQUIREMENT ON AN APPROPRIATION OF $50 MILLION
           TO THE STATE OF ILLINOIS, THAT THAT MONEY BE COMPETITIVELY BID,
           THAT THE CONSTRUCTION CONTRACTS BE COMPETITIVELY BID IN
           ACCORDANCE WITH THE FEDERAL LAW. THE HOUSE POSITION ON THIS
           HAS, THUS FAR, TO DATE BEEN THAT THE PROJECT NOT CARRY THAT

           RESTRICTION AND THAT STATES' SO-CALLED COMPETITIVE BID
           GUIDELINES ARE ADEQUATE AND WE ARE HERE EXAMINING SOME OF THE
           PROBLEMS THAT HAVE OCCURRED IN RECENT MEMORY IN THE STATE OF
           ILLINOIS REGARDING LEASES, CONSTRUCTION PROJECTS, AND THE LIKE
           THAT REALLY WEREN'T WHAT WE WOULD THINK OF -- SHOULD BE A
           PROPER COMPETITIVE BIDDING AND WHERE THERE HAS BEEN SOME
           SLIPPAGE. C.M.S. OFFICIALS HAVE BEEN AT LOGGERHEADS WITH THE
           STATE'S AUDITOR GENERAL FOR MORE THAN A DECADE BECAUSE OF THEIR

           INSISTENCE THAT STATE LAW DOES NOT REQUIRE LEASES TO BE
           COMPETITIVELY BID. "STATE PURCHASING LAWS, A HODGEPODGE OF MORE
           THAN 100 PROVISIONS ADOPTED OVER THE YEARS, MAKES NO MENTION OF
           LEASES AND A 1981 REPORT BY STATE AUDITORS FOUND THAT 96% OF
           THE STATE'S LEASES WERE AWARDED WITHOUT BID." LET ME READ THAT
           AGAIN. "STATE AUDITORS FOUND THAT 96% OF THE STATE'S LEASES

           WERE AWARDED WITHOUT BIDS." THAT'S WHY THERE'S SO MANY INCHES
           THICK OF ARTICLES AND INVESTIGATIVE REPORTS OVER MANY DIFFERENT
           ADMINISTRATIONS OF MANY GOVERNORS IN THE STATE OF ILLINOIS, OF
           DEALS THAT APPEAR TO INVOLVE OR MAY INVOLVE OR THE WRITERS'
           THOUGHT INVOLVED POLITICAL FAVORTISM. "C.M.S. HAS ARGUED THAT
           BECAUSE LEASES ARE NOT SPECIFICALLY INCLUDED AMONG THE GOODS
           AND SERVICES REQUIRED TO BE COMPETITIVELY BID, THEY ARE EXEMPT
           FROM BIDDING. STATE AUDITORS HAVE ARGUED THAT BECAUSE LEASES

           ARE NOT LISTED AMONG THE EXEMPTIONS, THEY MUST BE BID. THERE IS
           NO WAY TO COMPETITIVELY BID REAL ESTATE, SAID THE C.M.S.'S BART
           LETTY. SIMPLY PUT, THERE ARE NO TWO REAL ESTATE PARCELS IN THE
           WORLD THAT ARE ALIKE. REAL ESTATE IS EXCLUSIVE BY DEFINITION.
           THERE IS ONLY ONE PARCEL AT A CERTAIN INTERSECTION. LOCATION IS
           EVERYTHING IN REAL ESTATE, HE SAID. AMONG THE STATE PURCHASING
           REFORMS TO BE PROPOSED IN THE GENERAL ASSEMBLY'S SPRING SESSION
           WILL BE A REQUIREMENT TO BID LEASES COMPETITIVELY, SAID STATE

           SENATOR JUDY BART-TOPENKA, REPUBLICAN OF RIVERSIDE. THE
           PROPOSED REFORM, SHE SAID, HAS PROMPTED LARGELY BY THE
           'SCANDAL' CREATED BY A LEASE STATE OFFICIALS SIGNED IN 1989 TO
           RENT THE SHUDDERED ST. ARN'S HOSPITAL ON CHICAGO'S WEST SIDE.
           STATE OFFICIALS NEEDED THE BUILDING TO HOUSE PATIENTS FROM THE
           ILLINOIS STATE PSYCHIATRIC HOSPITAL WHICH HAD TO BE CLOSED FOR
           EXTENSIVE RENOVATIONS. THE TAXPAYERS WILL END UP PAYING $16.1

           MILLION FOR A FOUR-YEAR LEASE OF THE HOSPITAL, INCLUDING COSTS
           OF TRANSFERRING PATIENTS, MAINLY BECAUSE THE LEASE FAILED TO
           SHIELD THE STATE FROM HUGE REPAIR BILLS. THE STATE COULD HAVE
           BOUGHT THE BUILDING FOR $3 MILLION. LET'S REVIEW THAT AGAIN.
           "STATE OFFICIALS NEEDED THE BUILDING TO HOUSE PATIENTS FROM THE
           ILLINOIS STATE PSYCHIATRIC HOSPITAL WHICH HAD TO BE CLOSED FOR
           STEN EXTENSIVE RENOVATIONS. TAXPAYERS WILL END UP PAYING $16.1

           MILLION FOR A FOUR-YEAR LEASE OF THE HOSPITAL INCLUDING COSTS
           OF TRANSFERRING PATIENTS MAINLY BECAUSE THE LEASE FAILED TO
           SHIELD THE STATE FROM HUGE REPAIR BILLS. THE STATE COULD HAVE
           BOUGHT THE BUILDING FOR $3 MILLION." THE STATE COULD HAVE
           BOUGHT IT FOR $3 MILLION BUT THEY WILL END UP PAYING $16
           MILLION FOR A FOUR-YEAR LEASE OF THE HOSPITAL. NOW, IN THAT
           DIFFERENCE BETWEEN $16.1 MILLION AND $3 MILLION, LOOK AT THE

           MONEY THAT WAS LOST FOR THE TAXPAYERS TAXPAYERS. HOW MANY
           TAXPAYERS HAD TO WORK HOW MANY HOURS?
           HOW MANY COUPLES HAD TO STRUGGLE WORKING TWO, TWO AND A HALF,
           THREE JOBS TO PAY THEIR TAXES TO THE STATE OF ILLINOIS AND TO
           THE FEDERAL GOVERNMENT JUST TO SEE THAT MONEY GO TO STATE
           OFFICIALS AND SOME MIGHT CONCLUDE FROM ARTICLES LIKE THAT THAT
           IN MANY CASES WHEN THERE AREN'T PROPER CONTROLS, WHAT THE STATE
           OFFICIALS WIND UP DOING WITH THAT TAXPAYER MONEY IS REALLY

           TANTAMOUNT TO JUST
           
           LIGHTING A MATCH TO IT.
           
           AND I WOULD NOW LIKE TO MOVE ON TO ANOTHER ISSUE THAT HAS BEEN
           TALKED ABOUT IN ILLINOIS FOR A VERY, VERY LONG TIME. IT

           ACTUALLY GOES BACK TO THE EARLY 1980'S, AND IT'S STILL A
           PROBLEM FOR THE TAXPAYERS IN THE STATE OF ILLINOIS. AND IN
           TURNING TO THAT, THAT IS THE SUBJECT OF HOTEL LOANS GIVEN OUT
           BY THE STATE THAT NEVER GOT FULLY REPAID. THERE'S SO MANY OF
           THESE ISSUES THAT WE COULD HIGHLIGHT HIGHLIGHT. I AM SEEKING TO
           NARROW THE FOCUS HERE AND ULTIMATELY TIE IT ALL BACK INTO WHAT

           IS GOING ON DOWN IN SPRINGFIELD. AND IF YOU COULD PUT UP THE
           
           CHART... I'M GOING TO TURN TO A DISCUSSION OF STATE LOANS THAT
           WERE MADE BACK IN THE EARLY 1980'S FOR THE CONSTRUCTION OF
           SEVERAL BUILDINGS AROUND THE STATE, INCLUDING TWO HOTELS, ONE
           IN SPRINGFIELD, ILLINOIS, AND THE OTHER, AS I RECALL, IN
           COLLINSVILLE, ILLINOIS, WHICH IS DOWN IN THE SOUTHERN PART OF

           THE STATE IN THE METRO EAST ST. LOUIS AREA. I'M VERY FAMILIAR
           WITH BOTH OF THESE HOTELS. AND OF COURSE I SEE THEM OFTEN ON MY
           TRIPS TO SPRINGFIELD AND COLLINSVILLE. AND THESE HOTELS ARE
           ACTUALLY PRETTY FAMOUS IN THE MINDS OF MANY TAXPAYERS BECAUSE
           THEY, THE TAXPAYERS, GAVE LOANS FOR THE PROMINENT PEOPLE TO
           DEVELOP THESE HOTELS AND THE LOANS NEVER GOT FULLY PAID BACK.

           AND, IN FACT, THIS ARTICLE WHICH COMES FROM "THE CHICAGO
           SUN-TIMES" -- AN ARTICLE DATED APRIL 26, 1995. IT IS BY TIM
           NOVAK, WHO AT THAT TIME WAS IN SPRINGFIELD. HE WROTE THIS
           ARTICLE AND THE HEADLINE ON THE ARTICLE IS "TPGS STUCK WITH A
           $30 MILLION-- --TAXPAYERS STUCK WITH A $30 MILLION HOTEL TAB."

           "ILLINOIS TAXPAYERS WILL LOSE $30 MILLION TODAY WHEN STATE
           TREASURER JUDY BART TONENKA CLOSES THE BOOKS ON TWO HOTEL LOANS
           THAT FORMER GOVERNOR JIM THOMPSON AND FORMER TREASURE MADE TO
           POLITICAL CRONIES. THE HOTELS OWE THE STATES $40.3 MILLION
           UNDER LOW-INTEREST LOANS THEY GOT IN 1992 BUT TOPENKA HAS
           AGREED TO SETTLE THEIR DEBTS FOR $10 MRKL THE "SUN-TIMES" HAS
           LEARNED. SHE PLANS TO A NOUNTS DEAL TODAY. UNDER THE DEAL, THE

           SPRINGFIELD RENAISSANCE HOTEL HEADED BY REPUBLICAN POWERBROKER
           WILLIAM F. SEFMT LINI, WILL PAY THE STATE $3.75 MILLION OF THE
           $19.8 MILLION HE OWES. -- IT OWES. THE STATE WILL ALSO COLLECT
           $6.3 MILLION FROM THE COLLINSVILLE HOLIDAY IN PARTLY OWNED BY
           GARY FEERX WHO RAISED MONEY FOR DEMOCRATS AND REPUBLICANS. THE
           COLLINSVILLE HOTEL OWES THE STATE $20.6 MILLION. TOPENKA SAID

           IT IS THE BEST DEAL SHE COULD GET FROM THE HOTELS, WHICH HAVE
           OFTEN SKIPPED LOAN PAYMENTS WHILE THEIR VALUE HAS FALLEN. THE
           SLTAIT SAVE -- THE DEAL WILL SAVE THE STATE AT LEAST $6,000 A
           MONTH IT SFONDZE MANAGE THE LOANS. 'THE TAXPAYERS ARE GOING TO
           TAKE A BATH, NO QUESTION,' TOPENKA SAID. BUT THE PROPERTY IS SO
           DEPRESSED, WE WILL NEVER GET BACK WHAT WE SPENT. OUR LITTLE HE
           IS KA SPADE INTO THE HOTEL BUSINESS HAS NOT BEEN REMARKABLY

           FRUITFUL. I MAY OPEN MYSELF UP TO CRITICISM ON ONE HAND, BUT ON
           THE OTHER HAND, I HAVE GOT TO SETTLE THIS BECAUSE THE LONGER
           THIS GOES ON, THE MORE WE LOSE BECAUSE THE PROPERTY VALUE OF
           THE HOTELS KEEPS GOING DOWN. FORMER TREASURER, PATRICK QUINN, A
           DERPBLGS SAID TOPENKA IS GIVING ANOTHER SWEETHEART DEAL TO
           POLITICAL INSIDERS. THESE PARTICULAR INDIVIDUALS ARE GETTING
           OFF VERY LIGHTLY, QUINN SAID, OF SELINE AND FEARS. THE
           TAXPAYERS ARE BEING FLEECED AGAIN. THEY WERE FLEECED WHEN THE

           LOANS WERE MADE. THEY WERE FLEECED WHEN THE LOANS WERE
           REFINANCED. IF YOU WOULD HAVE FORECLOSED, YOU WOULD HAVE HAD
           ASSETS THAT YOU COULD SELL FOR A GREATER PRICE THAN THEY'RE
           GETTING NOW, QUINN SAID. HE CLAIMED THAT THE HOTELS ARE WORTH
           FAR MORE THAN THE $10 MILLION THE OWNERS WILL PAY UNDER
           TOPENKA'S DEAL. LOCAL ASSESSERS SAY THE HOTELS ARE WORTH A
           TOTAL OF $13.2 MILLION, $7.9 MILLION FOR THE
{END: 2000/10/04 TIME: 13-30 , Wed.  106TH SENATE, SECOND SESSION}