Elmhurst Disqualifies City Council Applicant

ELMHURST, IL — The Elmhurst city government says the owner of a small business is disqualified from serving as an alderwoman because of her business' agreement with the city. If she served, it would be a Class 4 felony, the city attorney says.

Brewpoint Coffee CEO and founder Melissa Villanueva disagrees with the city's interpretation of the law. She was one of four residents vying for the Ward 1 City Council seat vacated by Mark Sabatino two months ago.

This week, Mayor Steve Morley is expected to decide on his choices for Ward 1 and Ward 4, where Alderman Kevin York resigned about the same time. Morley told the council this week that it would vote on his nominees at its July 20 meeting.

On Friday, Morley sent Villanueva a letter saying that while she was "truly an inspiring story," she was ineligible for appointment. He said he made the decision on the advice of the city attorney.

In a letter to city officials about a week before, attorney Donald Storino said Villanueva was ineligible because she has an ownership interest in a business that entered into a redevelopment agreement with the city. That agreement took effect in February 2017 and lasts 11 years.

The agreement was for $60,000 in incentives to Brewpoint to partially subsidize a construction project. The money came from a special account generated through property taxes in the tax increment financing district where Villanueva's North York Street coffee shop is.

Storino pointed to a state law that barred any municipal officer from having a financial interest directly or indirectly in city contracts. Exceptions exist, he said, but none were applicable in this situation.

Storino also noted a provision in the agreement that said no city official can have any interest in the redevelopment project in question.

In an interview, Villanueva, a member of the city's Economic Development Commission, said the decision to disqualify her was last minute, given she applied for the position nearly two months ago. She said she was not one to "ruffle feathers," but the issue needed to be investigated fully.

Villanueva took to Facebook a day after the mayor's statement with a letter she addressed to the City Council. She said she was disappointed she was not allowed to serve as an alderwoman for the next 7½ years.

Under the agreement, she said, the city can recover its $60,000 investment for up to 10 years if she sold the business, moved it or was "wildly successful." The money was given to Brewpoint in 2017. It is unable to get any more money under the agreement, she said.

"Therefore, the contract is only enforced under the circumstances in which Brewpoint would pay the city. This contract has no means by which the city would pay Brewpoint again," Villanueva said. "Does a class 4 felony seem to be an appropriate punishment to my specific situation?"

Villanueva said elected officials with conflicts of interest must disclose them and recuse themselves from votes pertaining to their interests.

She said it seemed as if the city has not used such reasoning before to exclude people.

"Obviously, I hope the city and its attorneys, perhaps with the luxury of more than a week, can further evaluate interpretations that are shockingly anti-business — for if business owners and developers that contribute to economic growth in their communities cannot use their experience and expertise (to serve in public office), the communities suffer," Villanueva said.

"Who does it serve if people like me — a resident, a small business owner, a woman of color, an economic development commissioner — cannot be elected in an official capacity?" Villanueva wrote. "Especially in the light of today's climate, I think it is time to take a serious look at who is excluded from the table."

In her interview with Patch, Villanueva did not rule out running for the Ward 1 seat in next April's election. Ward 1 is in the west central part of town and includes York High School and Elmhurst College.

In a statement released Wednesday afternoon, the city said the language in Brewpoint's agreement was similar to that of other redevelopment agreements with incentive recipients.

“I sincerely appreciate all interest in the vacant positions and encourage all applicants to continue to seek opportunities to offer their time and talent to the City of Elmhurst," Morley said in the statement.

Brewpoint's locations are at 617 N. York St, 124 W. Park Ave. and in Elmhurst Public Library, 125 S. Prospect Ave.