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Local

Channahon approves settlement in $600 million lawsuit

Channahon, Ill. as seen in September 2019.
Channahon, Ill. as seen in September 2019.

The Channahon Village Board last week unanimously approved a settlement between Channahon and the Regional Transportation Authority in Chicago and several units of government, including Cook County and Chicago, Minority Development Company, MTS Consulting and Southwest Jet Fuel.

“It’s nice to have it done,” Channahon’s attorney Jim Murphy said after the meeting.

The litigation against the village has been ongoing since 2011, when Channahon was sued for approximately $600 million for operating a rebate program where the village gave sales tax rebates to companies that had satellite offices in Channahon, but operated primarily out of other counties.

Point-of-sale laws at the time allowed for the sales tax to be applied where the purchase was accepted, not where it was delivered to a customer.

The law has since been changed.

Murphy said to address the legal matter, fund the settlements, and pay for attorneys’ fees, funds were taken from money withheld from the developers that participated in the rebate program. No taxpayer dollars, he said, were used to settle the litigation.

“It worked out well,” he said.

The board also approved a $5,000 contribution to the Will County Center for Economic Development during its Nov. 18 meeting. CED President John Greuling gave a report to the Channahon board, telling them Will County came out well with this year’s Illinois capital bill, receiving almost 10% of the more than $2.5 billion allocated for infrastructure.

Left on his infrastructure bucket list, he said, is widening Route 6. Greuling said he was disappointed funding was not made available for that project in the capital bill.

Will County has also averaged 8,000 new jobs a year, Greuling said, and a focus will be to increase the quality of those jobs.

Employment has risen in manufacturing, health care, food processing and life sciences, he said.

The board also approved the emergency succession personnel. In case Village President Missey Moorman Schumacher is not available during a village emergency, Finance Trustee Sam Greco would be next in line, followed by Public Safety Trustee Chantal Host, Community and Legislative Trustee Patricia Perinar, Public Works Trustee Mark Scaggs, Community Development Trustee Scott Slocum, Natural Resources Trustee Scott McMillin, then Village Clerk Kristin Hall.

Also at Monday’s meeting, Channahon resident Sydney Thompson was hired as marketing and communications manager at an annual salary of $57,000.

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