By Madhu Mayer
Joliet City Councilman Patrick Mudron is out as liaison to the Rialto Square Theatre after the city’s inspector general found he violated the city’s code of ethics.
According to the 78-page report prepared by Joliet’s inspector general, Mudron allegedly violated the code of ethics when his company provided a no-bid $248,000 insurance coverage with Rialto. Not only is Mudron a two-term member of the Joliet City Council, but he also serves as liaison to the 96-year-old downtown theater and operates an insurance company at 113 Republic Ave., also in Joliet. The inspector general learned of the conflict of interest between Mudron and Rialto via an anonymous tip.
When the report was being written, Joliet’s inspector general Sean Connolly asked Mudron if he had duty to disclose this arrangement with the City Council. The report states that Mudron’s response was “no.” The inspector general’s report has asked the Illinois Attorney General’s Office to investigate Mudron as well as Bob Filotto, chairman of the Rialto Theatre board. The report states that Filotto violated the Illinois Open Meetings Act when he approved the contract without getting board approval.
The report indicated that the Rialto might have closed its doors earlier this year when operators realized its insurance premiums could increase by as much as 600 percent to $450,000 because the theatre did not have a sprinkler system. This prompted the theatre to sign a $248,000 annual insurance contract with Mudron, Kane Insurance Agency, which was $202,000 less than another quote, according to the inspector general’s report.
Mudron, who did not return calls for comment, did not speak on the issue at Tuesday’s meeting.
In other news
The City Council held a public hearing on expanding a tax increment financing (TIF) district for the $103 million general obligation bond issue to fund the Rock Run Crossings commercial development at I-55 and I-80. If approved, the expanded TIF district would remain until 2044 and cover a little more than $10 million of the project costs. TIF is an economic development tool that takes on any increase in property taxes from the new development. Instead of sending the money back to taxing bodies, TIF diverts that money to subsidize the development in the district.
The bond issue the City Council unanimously approved several months ago will be used to fund roads, water mains and other infrastructure improvements, such as the construction of an upgraded interchange to provide access to I-55, as part of the Rock Run Crossings development.
Developed by Cullinan Properties, the plan is to have restaurants, hotels, medical offices, multi-family homes, stores and other businesses on the 300-acre regional site fronting I-80 and I-50 corridor that sees more than 200,000 cars passing daily. Rock Run Crossings is located near a 350-acre business park and warehouse and distribution center hub. Hollywood Casino has been rumored to relocate its Joliet operations there.
James Ghedotte, Joliet’s finance director, admitted the city would have to pay the difference of the bond issue if the development does not accrue enough tax dollars from sales and property taxes on the development.
No one from the public made a comment during the public hearing. Action on the proposed TIF district is expected at a later date.
Madhu Mayer, Times Weekly, contributor  mmayer@thetimesweekly.com
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