A dispute between Illinois Gov. Pat Quinn and Chicago Mayor Rahm Emanuel over the open position of executive director of the Illinois Sports Facilities Authority escalated this week when the governor accused the mayor of tarnishing the reputation of his choice for the job.
The authority board — which owns and operates the Chicago White Sox ballpark and issued bonds for the renovation of the Chicago Bears’ home Soldier Field — last month interviewed Quinn’s choice, Kelly Kraft.
She is Quinn’s top communications officer and previously served as assistant budget director and managed communications for the budget office.
The mayor controls three positions on the board and the governor controls four including the chairman. In the past, the mayor has traditionally recommended an executive director that is to the liking of both the governor and mayor.
Emanuel has blocked Kraft’s hiring and said he wants a professional with more finance experience as the agency looks at restructuring its $400 million of Soldier Field debt to ease the risk that Chicago’s share of income taxes will be tapped again to repay the bonds.
The authority also could play a role in a future renovation of the Chicago Cubs’ home Wrigley Field.
“I have nothing against Ms. Kraft … I just want to protect the taxpayers,” Emanuel said.
The Chicago Tribune published a story last week reporting that Kraft had filed for personal bankruptcy several years ago. Emanuel’s appointments to the board all come from the financial and legal sector.
Quinn on Monday blamed the mayor and his “operatives” for the story telling him to stop “assassinating her character” and called her a strong woman and candidate for the job that would protect the agency against any “backroom deals” involving Wrigley Field.
The board has met several times to discuss the position and is expected to meet again next month.
At the same meeting during which Kraft was first interviewed last month, board member James Reynolds, chief executive officer of Chicago-based investment bank Loop Capital Markets LLC, said the Sports Facilities Authority was exploring a refunding of the Soldier Field bonds.
Negative arbitrage and the structure on the original deal have hampered a traditional refunding and state legislative approval would be needed to push out the debt service schedule.
The agency needed about $185,000 to cover debt service on the bonds last year, but hotel taxes which go to repay the bonds have rebounded and produced a surplus in fiscal 2012.
