Developer Scott Goodman allegedly stiffed a government agency on rent at the same time he was making political contributions that could help his projects.
Goodman’s Sterling Racine LLC accrued nearly $2 million in unpaid rent last year for a space at a Chicago Transit Authority-owned building in the West Loop.
The LLC settled the rent at 120 North Racine Avenue. However, it now faces $25 million in unresolved late fees, the Chicago Sun Times reported. The company also owes $1 million in property taxes for the building, a situation Goodman attributes to pandemic-related vacancies.
His company “has honored its agreement and per the CTA is now current and in good standing and late fees are under discussion,” he said.
“Randolph Racine acknowledges it has fallen behind on real estate lease taxes due to vacancies caused by the pandemic but has made arrangements to become fully current.”
While Goodman’s company was behind on rent, he donated thousands of dollars to political campaigns of candidates running for statewide office, state legislature and city council districts where he had development interests.
The donations included $1,000 to $1,500 to Cook County Board President Toni Preckwinkle and Chicago’s 4th Ward City Council candidates, where the old Michael Reese Hospital sits. Another Goodman company wanted to redevelop that site, in a deal that would’ve needed taxpayer subsidies, into a possible stadium for the Chicago Bears. However, the Bears weren’t enthusiastic about the site.
Goodman has other deals that involve government agencies.
He and a partner sold the former Green Acres Golf Club in Northbrook to the DuPage Water Commission in April for $80.5 million, profiting from their $9.7 million purchase six years prior.
Goodman has also capitalized on city contracts. Three of his properties — at 1308 North Elston Avenue, 2241 South Halsted Street, and 344 North Ogden Avenue — were leased by the city for migrant shelters, bringing in $12.3 million in rent between September 2023 and May 2024 before the city ended the leases at Halsted and Ogden. At the time, Goodman was the city’s biggest migrant landlord.
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— Andrew Terrell