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Audit traces Manteno’s golf-course sale and $352K reverter buyout; auditors question value realized
Summary
Auditors traced the history of the village golf course deed, a reverter clause and state bill to remove it, reported the village paid roughly $352,000 to clear the clause and sold the property for about $600,000, and recommended scrutiny over whether the village achieved fair value.
Auditors presented a history of Manteno’s municipal golf course, including deed language that contained a reverter clause and the village’s subsequent effort in the Illinois legislature to remove that restriction.
The report traces two deeds for the property and shows the reverter clause in one deed would have caused the land to revert to the state if it was used for non-public purposes or sold privately without complying with the clause. Auditors said village officials pursued a legislative solution and that State Senator Sims introduced bill SB 1597 to remove the reverter clause for Manteno; the bill ultimately required negotiation to resolve a payment to the state.
Auditors said the village paid about $352,000 to remove the reverter restriction and then appointed appraisers to value the property. The village later sold the property in parcels; auditors said the combined sale proceeds and valuation evidence indicate the village realized roughly $1,388 per acre after accounting for the buyout costs, and that parcel sales fetched higher per-acre prices than the combined sale average. "The village realized about $1,388 per acre," an auditor summarized when discussing sale proceeds and associated expenses.
Auditors also documented that a nonprofit that operated the golf course had obtained a small federal PPP loan, later failed to file required tax returns, lost its nonprofit status and transferred remaining funds back to the village; the auditors recommended the village further examine federal filing and forgiveness documentation to protect the village from downstream liability.
Trustees questioned the appraisal methods and whether marketing and sale strategy maximized returns; auditors provided appraisal cover pages and three appraisals that produced differing valuations, and recommended the village review its marketing and bidding approach before pursuing any similar sales in future.
