Chicago billboard fines going uncollected

CHICAGO (WLS) -- As some Chicago taxes are about to go up to plug a huge budget hole, the ABC7 Eyewitness I-Team uncovers millions of dollars in missed opportunities for the city, as fines for billboard violations go uncollected.

As taxpayers everywhere look for relief, the I-Team has found warning signs that city officials are not collecting millions of dollars they could be collecting. The money was to come from a billboard inspection reform program announced by Mayor Rahm Emanuel in 2010 to generate an extra $2.5 million in revenue and increase compliance, a program that didn't deter violators and brought in less money.

"It's very frustrating," said 42nd Ward Alderman Brendan Reilly. "As one of the architects of the billboard ordinance and the person who suggested a $10,000 per offence, per day fine, not seeing these stick in these proceedings is very frustrating."

DOCUMENT: Mayor Emanuel Announces New Billboard Inspections Reforms

DOCUMENT: City of Chicago Response

DOCUMENT: Statement from the office of Alderman Rey Colon

Fiscal frustration Tuesday night for the downtown Chicago alderman after seeing what the I-Team discovered about illegal, billboards, city violations and the fines that could be collected but aren't.

In 2012 and 2013, building department inspectors wrote nearly 1,700 violations. Fines are levied by the day. The city could have collected $12.3 million for just a single day in fines, but according to records, only 540,000 in fines were ordered.

"I think that if we are dedicating a lot of resources to these departments for inspectors and lawyers we should be winning these cases and collecting these revenues that are owed to the taxpayer," Ald. Reilly said.

During 2012 and 2013, even if the city had collected the minimum one-day fines, nearly $4 million would have been taken in. But in most cases, city lawyers negotiated fines way below the minimum called for by the Chicago City Council, usually eliminating the fine all together.

City building department officials refusing to do a television interview about the findings, but in a statement say they try to work with business owners because compliance is a "priority". And that "the code allows violators to come into compliance between their citation and hearing date without being subject to the stiffer fines."

"I know that the mayor wants results on these things he is the one who convened a task force two years ago to sort these things out," said Reilly.

Consider one building on Logan Boulevard, prohibited from displaying billboards because it is in a landmark district. Even though the building owners were denied a city permit, all kinds of billboards have been put up anyway.

"When you live within a landmark district everyone has to adhere to the same standards," said Andrew Schneider, President of Logan Square Preservation.

That isn't the case with this building the past five years, where there has been a 2,000-foot Pepsi ad, a Google sign and even a campaign sign for the local alderman. The advertisers aren't responsible under the law, but the billboard companies and building owners are. The billboard company that put up this most recent illegal ad, is suing the Logan Square Preservation Group and the City of Chicago, for opposing it.

"I don't speak English too much, my daughter is not here, that's the one, she can talk to you," said building owner Digna Martinez.

The building owner's daughter did not return calls and letters.

"There are so many landmark districts across the city and so many landmark buildings and incumbent upon us who live in them to help where we can," Schneider said.

We don't know how much the owners of this building have profited. We do know the city has only fined them only $10,325 total. City litigation against the owners is underway.

"When you have egregious offences where large billboards are making tremendous amounts of money illegally that should be absolute, that should be a $10,000 per day, per offense fine and we should hold firm on that," Reilly said.

The I-Team asked Emanuel's office what went wrong with his plan to lower the number of violations and increase fines. Instead of an answer from the mayor we received an emailed statement from the buildings department commissioner who said "the goal of enforcement on illegal signs is to correct the problem, not just to level fines".

Visual Cast, the billboard company suing Logan Square Preservation and the city, refused to talk to the I-Team.

And what about that billboard for Alderman Rey Colon's re-election? Colon's office blamed his volunteer campaign, saying they didn't realizing they needed a permit to erect the sign.