Richard Ehrenreich Owner of the Schaumburg Flyers

Recently, the Village of Schaumburg and the Schaumburg Flyers agreed to settle delinquent unpaid rent for the 2007-2009 period, for $580,000 at the time of the sale of the club. According to an article by Ball Park Digest, previous Schaumburg Professional Baseball Corporation (also known as the Schaumburg Flyers) owner Richard Ehrenreich recently sold the club to Adriano Pedrelli for between $2-$3 million.

However, an investigation by Schaumburg resident Brian Costin shows the Flyers actually owe taxpayers more than double the settlement amount, almost $1.2 million.

The investigation revealed this isn’t the first time the Flyers had contractual fees waived. In 2005, after a period of chronic delinquency, the Flyers reached a settlement with the Village of Schaumburg. Under the agreement, the team would pay $481,989 to relieve old debts to the Village but never paid any money and only transferred over $240K in naming rights to the baseball stadium. In fact, the Schaumburg Flyers failed to pay their rent or fees in full or on time for any contract year from 2001-2009.

The amount of debt the Village waived as part of the 2005 settlement could not be determined because the Village has no records for payments due or collected for the 1999 or 2000 season, suggesting poor financial record keeping by the Village of Schaumburg.

Since the 2005 settlement attempt, records obtained through Freedom of Information Act requests show the Flyers have accrued a total $1,190,683 in unpaid charges, as of August 1st, 2010. This includes $893,240 in billed charges and an additional $297,443 in late fees that were not billed and remain unpaid despite contractual obligations to a 12% APR delinquency charge.

In an attempt to get further information from the Village about the proposed settlement and communications between the two parties over the last few years, Costin filed a Freedom of Information Act request on June 27, 2010, but the Village did not comply with disclosure laws as of August 23.

Ironically, despite being hundreds of thousand or even millions of dollars in debt to the Village of Schaumburg, the Schaumburg Flyers found money to donate to local politicians. From 2000-2008 the Flyers made 10 donations totalling $3,260 to Schaumburg Mayor Larson’s campaign fund.

Brian Costin questioned the Village of Schaumburg’s financial practices towards the Schaumburg Flyers management…

“Why have Village officials looked the other way for the last 9 years, and perhaps longer, while the Schaumburg Flyers repeatedly defaulted on their obligations to the taxpayers?”

“These repeated delinquencies and fee waivers are shocking. With the poor financial stewardship of the baseball stadium all Schaumburg citizens should be very concerned how the Village manages all of its business-type activities.”

“Why is the Village of Schaumburg waiving more than half the amount the Flyers owe the taxpayers? The Village of Schaumburg should collect the full amount due from the Schaumburg Flyers before allowing the delinquent owner to sell the team and leave town with his ill-gotten gains.”

Costin is a candidate in Schaumburg’s 2011 mayoral race.

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