In the News

Pioneer Press, July 30, 2009

A state legislator wants more answers as to why the public and lawmakers weren't better informed about foreclosure action that's being taken against the company that leases and manages the Lake Forest Oasis and six Oasis locations in the Chicagoland area.

State Sen. Susan Garrett, D-29th, of Lake Forest has filed a Freedom of Information Act request with the Illinois Tollway to obtain public records and documentation pertaining to the relationships between Wilton Partners, iStar FM Loans LLC and the Illinois Toll Highway Authority.

"I've talked to many tollway officials to try to understand the impact of the foreclosure and how funding came up short," said Garrett. "We sent a FOIA to the tollway to try to get some information to those questions."

In April, iStar FM Loans, LLC filed a foreclosure notice in Cook County Circuit Court against Wilton Partners Tollway, LLC, which holds a long-term lease with the Illinois Tollway to operate the seven Oasis locations, including the Lake Forest Oasis.

However, because of an apparent oversight, iStar did not publish the foreclosure notices in local papers in Lake, Boone and DeKalb counties until July, according to tollway press secretary Joelle McGinnis. The Cook County notices were published as expected in April, she said.

McGinnis said Wilton has been retained by iStar to continue to manage the Oases during the foreclosure process.

"There has been no change in the status of the Oases, nor has there been any impact on our customers," she said.

Financial problems

Garrett, however, said she has may questions about why the tollway wasn't more up front about the financial problems facing Wilton Partners and the possibility of a foreclosure. In her Freedom of Information Act request, Garrett requested minutes of tollway board meetings where the foreclosure was discussed, copies of the foreclosure notices against Wilton Partners, correspondence between Wilton Partners, iStar FM Loans and the tollway, and any press releases that were sent to the media regarding the issue.

"There are a multitude of things were requesting," said Garrett. "So far, we've found almost nothing discussing Wilton Partners. That leads me to believe we need to find out more about what the tollway knew, both about the foreclosure and the funding issues."

Garrett said she was surprised and disappointed that she was not notified earlier by the tollway about the possibility of a foreclosure at the Lake Forest Oasis. She said she first learned about the notice of foreclosure last week when she was contacted by Pioneer Press after a classified ad appeared in the newspaper.

In 2002, Wilton entered into a 25-lease with the tollway to operate the seven Oasis locations, including the Lake Forest Oasis, the Hinsdale Oasis, the Chicago Southland Lincoln Oasis, the Belvidere Oasis, the O'Hare Oasis, the DeKalb Oasis and the Des Plaines Oasis.

However, Wilton has been in default on construction loans used to finance the redevelopment of the Oasis facilities and is also behind in rent payments to the tollway. iStar, which holds the mortgage on the loans, decided to pursue foreclosure action against Wilton, said McGinnis.

'No control'

"The tollway isn't a party of iStar's lawsuit so it has no control over the timing of the case," said McGinnis.

McGinnis said the tollway board has been kept informed about the foreclosure issue and the financial issues facing Wilton Partners and so far those issues have had no impact on Oasis operations.

"Our board members have been apprised every step of the way," she said. "There was no need notify our customers because it doesn't impact our customers."

Representatives from Wilton Partners and iStar FM Loans could not be reached for comment.