Chicago Teachers Union Officers Make a Bad Loan Deal
The CTU 501(c)5 and the CTU Foundation 501(c)4; two tax-exempt entities with fully overlapping boards of directors have locked in members with a $5 million loan to repay over the next 30 years.
On December 1, 2016, CTU signed a 15-year lease to rent a portion of the 1901 Carroll Ave. building from the CTU Foundation. The CTU Foundation gave CTU an "improvement allowance" of $3.56 million to fix up the CTU's portion of the building.
>CTU financial reports show CTU spent over $8.26 million to fix up their portion of the building exceeding the $3.56 million allowance.
>CTU borrowed the additional $4.7 million from the CTU Foundation. The CORE officers signed a 5-year promissory note @3.75% that came due January 1, 2022. The loan is secured by CTU assets.
> It is now 2022. The CTU has not paid any of the loan during the 5-year term. The members are on the hook to repay $4,708,369 starting now.
> If calculated right dues paying members will be lucky to keep the 3.75% interest rate, and borrow over a 30-year term, members will pay a total of $8.3 million to borrow the $4.7 million.
Its is also claimed that the CTU officers never asked members for approval for this loan deal.
Calculations are from financial documents obtained and posted on the Members First Facebook page.
https://m.facebook.com/groups/227515867799628/permalink/1078052369412636
