Tollway oases up for auction

The lease on the seven Illinois tollway oases will be auctioned off next month as a foreclosure lawsuit against the agency's former private partner wraps up.

Wilton Partners entered into a 25-year deal with the Illinois State Toll Highway Authority in 2002 described then as a win-win situation. The tollway retained ownership of the seven rest stops while Wilton rebuilt the glass-walled buildings and operated the restaurants and shops.

Wilton borrowed $83 million for the project and spent about $100 million on construction but soon ran into trouble. The California-based company fell behind on rent payments to the tollway and its lenders and vacancies at the oases meant disappointing revenues.

Also, conflict-of-interest questions surfaced concerning the relationship between the tollway, Wilton executives and former Gov. Rod Blagojevich, now awaiting a verdict in his federal corruption trial. Wilton officials made significant campaign donations to Blagojevich. The nepotism criticisms also concerned oases restaurant operators tied to Blagojevich.

Wilton's lender iStar Financial Inc. filed a foreclosure lawsuit in 2009 and recently a Cook County judge made a judgment of foreclosure and sale, valuing the lease at $109.8 million.

The auction will take place Aug. 25 at the Judicial Sales Corp. offices in Chicago.

Tollway spokeswoman Joelle McGinnis said operations will continue as normal at the seven rest stops.

"Whoever the buyer is will have to abide by all tenets and terms of the lease," she said.

It's expected iStar will bid on the lease.