Edgar Kills Sale of Rockford Armory

Gov. Edgar Monday vetoed the sale of Rockford's historic NationalGuard Armory to Chicago real estate investor Kenneth Goldberg, sayingtoo many of Goldberg's properties have histories of buildingviolations.

The state had planned to sell the 56-year-old building atauction as surplus property, and Goldberg's bid of $61,000 last monthtopped offers from two Rockford groups.

But when Goldberg, a longtime former partner of notoriousslumbroker Louis Wolf, was announced as high bidder, Rockford citizengroups, local politicians and the Rockford newspaper urged Edgar tokill the sale.

They contended that under Goldberg's ownership the building -located next to the city's new multimillion dollar Riverfront Museum- might be permitted to deteriorate into an eyesore that woulddetract from other downtown developments.

Monday the governor's legal counsel, James Montana, said Edgarwas advising the state's Military Affairs Department "that thegovernor disapproved of the sale."

Under the surplus property statute, Montana said, "All sales aresubject to the written approval of the governor. He has discretionon whether to accept the high bid.

"In this case, the bids are being canceled, and the propertywill be rebid."

Montana said the governor's legal staff had "determined thatmany of the buildings in which Mr. Goldberg holds an interest,through secret land trusts or companies he controlled or owned, havebeen the subject of numerous building violations for (at least) fiveyears. So the sale will not be approved."

Goldberg's attorney, Thomas Drucker, said Goldberg would have nocomment "until we have seen something in writing from the governor."

Since 1988, Goldberg and Wolf have been locked in a BankruptcyCourt battle for control of dozens of properties, many with numerousbuilding code violations. Meanwhile, Wolf has pleaded guilty infederal court to cheating on property taxes and defrauding the countyof hundreds of thousands of dollars through abuses of the scavengersale of tax-delinquent property. Wolf is to be sentenced Sept. 23.