Park District responds to lawsuit filed by Nelson Knitting Company building owner

Online Staff Report

The owner of the Nelson Knitting Company building, 909 S. Main St., has sued the Rockford Park District alleging the district owes him for all costs he incurred from purchasing and maintaining the property since 1999.

John R. Cook III, who purchased the building for $205,000 in 1999, alleged he purchased the building on the promise of then Park District Executive Director Webbs Norman that in the future, the district would purchase the property from Cook and reimburse him for all expenses incurred.

The Park District, however, has alleged it never agreed to purchase the property or reimburse Cook for his expenses.

In November 2011, the district offered to purchase the property for $185,000, based on an assessment of the property. The Park District had planned to use the property as a museum highlighting the city’s industrial past.

Rockford’s Tinker Swiss Cottage Museum, a Park District affiliate, had received a $400,000 grant that was to be used to renovate the factory.

Following is a press release issued by the Rockford Park District March 15 in response to the lawsuit:

Rockford Park District set to respond to complaint

The Tinker Swiss Cottage Museum has long wanted to acquire the Nelson Knitting property, located at 909 S. Main St., Rockford, to complete its master plan. The property is adjacent to the museum and was once part of the land owned by Robert Tinker. If acquired, the museum’s master plan calls for restoration of the original circle drive and lush gardens.

The Tinker Swiss Cottage Museum property is owned by the Rockford Park District. When requested by a museum board, the Park District may assist district-owned museums with the acquisition of property in support of their master plans. The Park District had been in discussions with the Nelson Knitting property owner, John R. Cook III, to acquire the property on behalf of the Tinker Swiss Cottage Museum since 1999.

In October 2010, the Tinker Swiss Cottage Museum received a $400,000 grant from the Illinois Department of Natural Resources Public Museum Capital Grant Program to acquire the Nelson Knitting property, fund environmental clean-up and fund property improvements.

In November 2011, the Park District entered into an agreement with the Tinker Swiss Cottage Museum to assist with acquisition and administration of the grant. The Tinker Swiss Cottage Museum, with the support of the Park District Board, offered $185,000 for the Nelson Knitting property, which was based on the property’s fair market value certified by Illinois Department of Natural Resources. Cook, the owner, declined the offer.

March 11, 2012, the Park District Board was served with a complaint filed in Winnebago County Circuit Court from the property owner, Cook, who claims the Park District has a legal obligation to purchase the property from him and reimburse him for all costs he incurred acquiring, owning and maintaining the property since his purchase in 1999.

Rockford Park District Executive Director Tim Dimke said: “The Rockford Park District will respond to the complaint as required. The Park District supports the acquisition by the museum of the Nelson Knitting property, as it is a component of the Tinker Swiss Cottage master plan. However, acquisition will occur only under fair and equitable terms. The Park Board is committed to making solid financial decisions, and will continue to be good stewards of public funds, knowing the decisions we make will benefit the citizens for this and future generations.”

Nelson Knitting property Q & A

1. John R. Cook III Files Complaint Against Rockford Park District

March 11, 2012, the Rockford Park District Park Board was summoned to file an Answer to the Complaint from property owner John R. Cook III, who claims that the Park District has a legal obligation to purchase the Nelson Knitting property from him and to pay him for all of his costs in buying, owning and maintaining the 1.9-acre property located at 909 St. Main St., Rockford since 1999. The Rockford Park District denies that it ever agreed to purchase the property or reimburse Cook for his expenses associated with owning the Nelson Knitting property.

2. What led up to this complaint?

Cook alleges that in 1999, former Park District Executive Director Webbs Norman promised him that if he purchased the property, at some time in the future, the Rockford Park District would purchase that property from him and pay for his acquisition, ownership, and maintenance costs associated with the Nelson Knitting property. The Park District Board of Commissioners is solely authorized to approve any land purchases by the Park District, and any purchases must be approved by a majority vote at a public board meeting. There has never been any Park Board action authorizing the purchase of the Nelson Knitting property, except in November 2011 when, in accordance with the Illinois Department of Natural Resources Public Museum Grant, the Park Board supported Tinker Swiss Cottage Museum’s offer of $185,000, which was based on the property’s fair market value certified by Illinois Department of Natural Resources.

3. How much did John R. Cook III pay for the property in 1999?

Oct. 28, 1999, the property was purchased by Cook for $205,000.

4. Is there any documentation from previous board meetings regarding discussion or purchase of this property?

The Park Board has never authorized purchase of the Nelson Knitting property from Cook, except in November 2011 when, in accordance with the Illinois Department of Natural Resources Public Museum Grant, the Park Board supported Tinker Swiss Cottage Museum’s offer of $185,000, which was based on the property’s fair market value certified by Illinois Department of Natural Resources.

5. What is the Rockford Park District’s policy regarding purchasing property for district use?

Land acquisition is an action that must be taken by a majority vote of the Rockford Park District Board of Commissioners. To conduct the business of the district, the board must make decisions at official public board meetings. It is paramount to the Board of Commissioners that all applicable state statutes, laws, local ordinances, governing policies and the Park District Code are strictly adhered to when conducting the business of the Rockford Park District.

6. Does the Rockford Park District assist its museum partners in acquiring land as part of their master plans?

Following an official request by a museum’s board of directors, and approved by the district’s board, the Rockford Park District may assist district-owned museums with acquisition of property in support of their master plans.

7. Did the Rockford Park District engage in any negotiations for the property after its purchase by Cook?

The Tinker Swiss Cottage Museum and Rockford Park District staff has had intermittent discussions with Cook over 13 years regarding acquisition of the Nelson Knitting property. Executive Director Dimke did make the board aware of the discussions following his appointment in 2006.

8. Why did the Rockford Park District pay delinquent taxes on the property?

On three separate occasions, Cook informed the Rockford Park District that he was delinquent on paying the Nelson Knitting property taxes. In 2004, 2006 and 2008, the Park District paid the delinquent taxes so Cook would not lose the property through a tax sale, preventing Cook from continuing negotiations for sale of the property.

9. What was the purchase price offered by Tinker Swiss Cottage Museum and the Rockford Park District?

In October 2010, Tinker Swiss Cottage Museum received a $400,000 grant from the Illinois Department of Natural Resources Public Museum Capital Grant Program to acquire the Nelson Knitting property and to fund site clean-up and building improvements. In November 2011, the Park District entered into an agreement with Tinker Swiss Cottage Museum to assist with the acquisition of the property by the museum and to administer the grant. The award guidelines state that grant funds cannot be used to pay more for the property than its fair market value as certified by IDNR.

In accordance with the certified fair market value of the property, Tinker Swiss Cottage Museum, with the support of the Park District Board, presented an offer of $185,000 for the property. Cook declined the offer.

10. Why is the Tinker Swiss Cottage Museum/Rockford Park District interested in purchasing this property?

The Tinker Swiss Cottage Museum property is owned by the Rockford Park District. Tinker operates with a separate, independent board and has long wanted to acquire the Nelson Knitting property in support of their master plan. Once acquired, the plan includes environmental clean-up of the property, partial to total demolition of the building, and restoration of the original circle drive and gardens.

11. What are the next steps?

The Rockford Park District will respond to the complaint filed by Cook. Tinker Swiss Cottage Museum and the Rockford Park District remain interested in purchasing the Nelson Knitting property for a fair and equitable price based on its current appraised value. The Rockford Park District denies that it has ever agreed to purchase the Nelson Knitting property from Cook.

Posted March 15, 2012