Illinois Public Media News
State regulators closed six Illinois banks owned by one holding company on Thursday. Banks in Danville, Clinton and four other Illinois cities have been handed over to the Federal Deposit Insurance Corporation, which is arranging to have them reopen Monday under new owners.
The First National Bank of Danville became the 50th FDIC-insured bank to fail this year, and the 11th in Illinois, when it was placed in receivership yesterday by the Illinois Department of Financial and Professional Regulation. The bank will reopen Monday as part of First Financial Bank of Terre Haute.
Regulators also closed the John Warner Bank in Clinton --- it reopens Monday as part of the State Bank of Lincoln.
Other banks scheduled to reopen under new owners are the First State Bank of Winchester, Founders Bank in Worth, Rock River Bank in Oregon and the Elizabeth State Bank.
All six banks were part of the Founders Group, based in Worth, a Chicago suburb. An FDIC news release says the banks failed because they lost too much money to bad loans, including investments in collateralized debt obligations.
Two of the Founders Group's banks, in Gilman and Peotone, are NOT affected.
The FDIC says depositors will not lose any money due to the closures, and can still access their money over the weekend by ATM or debit card, or by writing checks. The federal agency has set up toll-free numbers to call for more information about the bank closures. The number for the First National Bank of Danville is 1-800-591-2817. The number for the John Warner Bank is 1-800-837-0215. The phone numbers will be operational on Friday and Saturday from 9 AM to 6 PM, Sunday from 12 PM to 6 PM, and thereafter from 8 AM to 8 PM (all times CDT). More information is also available on the FDIC website, at www.fdic.gov.
The six Illinois banks --- plus one in Texas --- that were placed in receivership bring to 52 the number of FDIC-insured banks that have been closed this year.
The initial groundwork has already been laid for a high-speed rail line between Chicago and St. Louis, with trains traveling 110 miles an hour.
Now the authors of a new study of even faster trains want to include Champaign on such a route. The Midwest High Speed Rail Association is advocating for 220 mile an hour trains that would connect Champaign to Chicago in 45 minutes.
Association Executive Director Rick Harnish says competitors in Asia and Europe have gained an edge on their ability to compete in a global economy. He says China's trains will cover the distance of Chicago to New York down to four hours by the year 2013:
"If you could get on a train here and be in Chicago and transfer to another train and be in New York in 5 hours, you can't do that by plane today. It does have an impact," Harnish said. "We're spending more on our infrastructure than our competitors are, we're spending more per-trip, per-person than our competitors are, and we're making fewer trips than our competitors are because it's so much more expensive to travel here than over there."
Illinois is in the running to receive 8-billion dollars in federal stimulus money to begin building initial high-speed rail lines. Meanwhile, Governor Pat Quinn is asking lawmakers to add 400-million dollars for high-speed rail in a capital construction program. Harnish estimates the state would need to find another 10-million for a market study of the faster trains.
Illinois Senate Transportation Committee Chair Martin Sandoval says Illinois is no longer looking at theories and believes the state will make the investment.
Ameren is planning a summer of public input as it proposes a new high-voltage electric transmission line around Champaign's western and southern outskirts.
The 138-thousand volt line would link substations in Bondville and Champaign's south side and would bring more capacity to the area around the University of Illinois campus, including the future Blue Waters petascale computer project.
Marty Hipple is supervising the planning for the line. "It provides capacity to serve that future load that's forecasted, and it provides a loop in network transmission to improve the reliability of existing transmission," Hipple said.
Doni Murphy, a planning consultant working with Ameren, says lists of "sensitivities" will be drawn up so that those planning the route of the new line can watch out for them. "Existing developments, proposed developments, whether they be residential, commercial or what have you," Murphy said. "And often times you'll see the traditional environmental considerations like wetlands, archaeological and cultural sites, protected species habitats, things of that nature."
Ameren says it will hold open houses and meetings with local officials to find three recommended routes for the line. The utility would submit those proposals this winter to the Illinois Commerce Commission, which would decide if and where the line would be built. Ameren hopes to finish it by 2014.
Starting Thursday, Champaign-Urbana will have two farmers markets.
The parking lot just north of Champaign Police headquarters will be the site of the North First Street Farmers Market every Thursday afternoon and early evening. Its coordinator, Wendy Langacker says it's not meant to compete with Urbana's long-running Market on the Square Saturday mornings - instead, it's meant to put fresh food within walking distance of a neighborhood where it's been hard to find in the past.
"For a lot of people in this neighborhood it might be difficult," Langacker said. "Even for people who live across the (CN) tracks, in downtown condos and apartments, it's still a ways away. So it's a nice way to bring fresh food to people in this downtown area."
Langacker says 26 vendors expect to have booths at the market, including a few merchants from the North First Street area. The farmers market will also include entertainment each week. Its 11-week run wraps up at the end of August.
The Department of Energy has decided to move forward on a stalled futuristic coal-burning power plant in central Illinois that languished under the previous administration.
The project known as FutureGen would burn coal for power but store emissions of the greenhouse gas carbon dioxide underground. It was slated to be built in Mattoon but was canceled after a faulty cost analysis put the price of the project higher than it should have been.
Energy Secretary Steven Chu said in a Friday morning statement that reviving FutureGen is an important step that shows the Obama Administration's commitment to carbon capture technology.
Supporters of relocation aid for tenants who are forced to leave condemned buildings took their case to the Urbana City Council last Monday night. The idea was sparked by the sudden closures recently of apartments in Rantoul and Champaign, after their owners failed to pay utility bills.
Danielle Chynoweth of Champaign-Urbana Citizens for Peace and Justice says that in such cases, the city should provide emergency funding to help displaced tenants find new housing. The former Urbana alderwoman says the city could recoup the money through fines on landlords whose negligence led to the shutdown. Chynoweth says there's little danger of the landlords being unable to pay.
"The first question the Council should ask its staff is how many condemnations have happened against landlords that were bankrupt," Chynoweth told the Council. "I think you will find not very many in Urbana. So in most cases, you'll have recouped the costs."
But Urbana Neighborhood Services Director Libby Tyler says the proposed level of relocation assistance --- at least 2-thousand dollars for each displaced tenant ---- is too expensive for the city. "You can imagine situations where a municipality would not be able to afford to condemn an unsafe building, would not be able to afford the relocation costs," Tyler said.
She also worries that money might sometimes go to tenants who don't need the help. Tyler says Urbana will work with Champaign and other agencies to create a coordinated plan for helping displaced tenants. That plan could be ready in the fall. Meanwhile, Tyler says Urbana already has a small fund for tenant relocation assistance, and the city may look for ways to boost it.
Area General Motors dealers are looking at the automaker's bankruptcy from different perspectives.
Most dealers in east-central Illinois expect to keep selling cars despite GM's decision to cut hundreds of dealers. Bill Abbott owns a GM dealership in Monticello -- he says his company didn't receive a contract cancellation notice, and they are looking forward to being there for a long time.
Hoopeston dealership owner Dave McFadden says he's also not worried about the future of Anthem Chevrolet Buick Pontiac, and he's optimistic about what a new GM will look like.
"I'm looking forward to a new GM emerging, being more competitive with less liabilities and returning to the giant automotive manufacturer that it has been for almost a hundred years," McFadden said.
But a small Chevrolet dealer in Iroquois County may not be a part of GM's future. Still, Rust Chevrolet doesn't plan on closing anytime soon, despite receiving a letter ending its franchise agreement with GM.
Co-owner Karen Rust Walder says the family-owned operation in Cissna Park will continue offering parts and service and plans to keep selling used vehicles when their agreement with GM ends in 2010.
Walder says she knows that some dealerships plan to fight the contract termination, but as for Rust Chevrolet, she says they don't really know what their next step will be.
The Rust family has sold Chevrolet vehicles since her grandfather signed on with the car company in 1915. Walder is the only salesperson at the dealership.
Champaign's Strategic Capital Bank re-opens Tuesday today under new ownership. State banking regulators closed the ten-year-old bank on Friday, and handed it over to the Federal Deposit Insurance Corporation. Today (Tuesday), the bank reopens as a branch of Effingham-based Midland States Bank. All deposits and loans are being transferred to Midland States Banks, and officials say customers should see no disruptions in service.
FDIC spokesman David Barr says Strategic Capital apparently ran into financial trouble due to its buying so-called private label mortage-backed securities and making commercial real estate loans. He says that left the bank vulnerable when the housing market and economy suffered a downturn, with home loans and commercial real estate loans taking the biggest hit."And with this bank having a lot of its assets concentrated in those two areas, it had a really adverse impact on their financial condition", says Barr.
Barr says the FDIC will keep a toll-free phone number open this week for former Strategic Capital customers with questions about the bank takeover. Calls will be taken from 8 AM to 8 PM, at 1-866-954-9527. That's 1-866-954-9527.
Besides Strategic Capital bank, state banking regulators shut down Citizens National Bank of Macomb last Friday. That makes a total of five bank failures in Illinois so far this year.
The Champaign City Council is not protesting the Champaign County Board proposal to allow wind turbine farms in the county --- but it does have a suggestion.
Council members voted 5 to 4 Tuesday night to ask the county board to consider extending the city's buffers outside its borders where it has a say in zoning decisions to 2-and-a-half miles for wind farms. It's currently 1-and-a-half miles for all city zoning issues. Councilman Tom Bruno says he supports wind farms, but believes it's important that they not be built close to areas the city has slated for future development.
"I think that sound planning would have these wind farms, if they're appropriate for Champaign County, be built at a little safer distance from what is already inhabited municipality to allow for years of possible future growth without the conflict between wind turbines and residential housing," Bruno said.
Bruno supported a protest of the county board proposal, but the measure was narrowly defeated, 5 to 4. By the same margin, the Champaign City Council passed a resolution asking the county board to simply give them the 2-and-a-half mile zoning buffer. It's a request that's already been turned down by the county board's Environment and Land Use Committee. The full Champaign County Board will consider the wind farm proposal Thursday night.
Chrysler is closing one out of every four of its dealerships, and the effect will be felt in central Illinois.
O'Brien Auto Group's Chrysler dealership in Urbana is on a list of nearly 800 closures, as are the Chrysler and Jeep franchises at Danville's Carmack Car Capitol and all Chrysler brands at Tuscola's Four Seasons Auto Plaza. Decatur-based Bob Ridings is losing Chrysler brands at its main dealership as well as those in Taylorville and Jacksonville. The owner of the Carmack firm in Danville, Gary Knight, said he was not expecting to see the notice from Chrysler but had no further comment - neither did a spokesman for Four Seasons.
Chrysler has about 3,200 dealers, but the bankrupt automaker says that's too many. It wants to have stronger, more profitable dealers with better facilities.
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