Charges against Waukegan City Clerk Janet Kilkelly for alleged official misconduct and misapplication of funds stem from credits she approved for five local businesses designed to give them financial relief for losses incurred due to the coronavirus pandemic.
Those credits were issued to businesses with liquor licenses, gaming licenses or both, who were unable to operate at full capacity between May 1, 2020 and April 30, 2021, under a city ordinance approved in December of 2020, according to city records.
Required to be in good standing with the city of Waukegan to receive the credits under the terms of the law, five of the entities Kilkelly approved were not, according to city records provided to the News-Sun under a Freedom of Information Act (FOIA) request.
Kilkelly pleaded not guilty Tuesday to charges outlined in her 15-count indictment during an arraignment in Lake County Court.
When the Waukegan City Council approved the ordinance in late 2020, it intended to “provide one-time relief to Waukegan businesses struggling with the pandemic and who tried to comply with efforts to mitigate the spread” of the disease, according to the law.
Each business with a liquor license, gaming license or both, was entitled to a 25% credit against the renewal fee for those licenses for the fiscal year starting May 1, 2021, according to the ordnance.
“The mayor (at the time) and City Council found it to be necessary and proper to provide these credits to businesses struggling with the pandemic and tried to comply with the efforts to mitigate the spread of COVID-19,” Ald. Keith Turner, 6th Ward, said at a March 18 meeting.
David Motley, the city’s public relations director, said liquor and gaming licenses must be renewed annually and expire on April 15 each year. Business licenses must also be renewed annually and expire Dec. 31.
Of the five businesses issued credits allegedly while not in good standing — Live Star Banquet Hall, Isla Del Mar, Golf Road Citgo, C.Y.O.C. and Taqueria Toluca #2 — the total amount was $6,306.91, according to city records provided.
Live Star, which received a $605.75 liquor license fee credit and a $1,639.08 gaming license credit, was not in good standing because of fire code violations on May 5, 2021, and because of an unpaid water bill on May 7, 2021, according to city records.
Credit provisions of the ordinance do not apply to any business, “which was not in good standing at the time of renewal,” according to the language of the ordinance. Good standing requires compliance with all city codes and ordinances.
Isla Del Mar received a $605.75 credit for its fiscal 2021 liquor license, but it was not in good standing because it owed $1,050 in food and beverage taxes as well as late fees on those taxes, according to city records.
Golf Road Citgo received a $605.75 credit for its fiscal 2021 liquor license. It was not in good standing because of outstanding license or late fees stemming from 2019, 2020, and 2021, according to city records.
C.Y.O.C. received a $605.75 liquor license fee credit and a $1,639.08 gaming license credit for the fiscal year starting May 1, 2021. It was not in good standing because of an unpaid license, unpaid fees and unfiled documents, according to city records
Taqueria Toluca #2 received a $605.75 credit for its fiscal 2021 liquor license. It was not in good standing because it had not paid food and beverage taxes to the city during 2019, 2020 and 2021, its water bill was past due and part of its business license fee was unpaid.
All credits were issued by Kilkelly in her capacity as city clerk in May or June of 2021, according to the indictment handed up by a Lake County grand jury on March 13.
Both Lake County State’s Attorney Eric Rinehart and Kilkelly declined to comment.