The Watchdogs: Daley nephew Patrick Thompson — running for alderman — faces conflicts

Originally published: Feb. 16, 2015

When former Mayor Richard M. Daley’s law firm landed a three-year deal last June from the Metropolitan Water Reclamation District of Chicago to serve as its bond counsel, one of the government agency’s commissioners — Daley nephew Patrick Daley Thompson — abstained from the vote.

Thompson recused himself from voting 10 more times last Nov. 6 — seven of those votes related to a $300 million deal involving Daley’s law firm, Katten Muchin, and financial behemoth Morgan Stanley, which Thompson’s cousin, William Daley Jr., works for as a lobbyist. The bonds — to pay for Deep Tunnel and other construction projects — were issued shortly before Christmas. Katten Muchin got paid $132,719. Morgan Stanley got $66,556.

Altogether since his November 2012 election to the board that handles sewage treatment for most of Cook County, Thompson has passed on voting on 21 issues involving his family or former legal clients.

That’s just a fraction of the matters that have come before the board. Still, Thompson — a zoning attorney and registered lobbyist at City Hall who is seeking a seat on the Chicago City Council in the Feb. 24 election — has abstained from voting because of conflicts of interest more than any Water Reclamation District commissioner besides Michael Alvarez, another City Hall lobbyist, whose conflicts kept him from voting on 40 issues over the past 27 months, records show.

If Thompson defeats John Kozlar and Maureen Sullivan, the other candidates running for alderman from the 11th Ward, the longtime Daley power base, he’s likely to face even more conflicts of interest because his relatives often work on deals that require City Council approval.

His uncle the former mayor is “of counsel” with Katten Muchin, a firm that provided legal services on bond issues for City Hall when Daley was mayor and has continued to do so under Mayor Rahm Emanuel.

Thompson’s uncle Michael Daley is a name partner in Daley & Georges, a law firm that frequently represents developers seeking zoning changes from the City Council to build skyscrapers and other big projects.

Another uncle, Cook County Commissioner John Daley, runs Daley Insurance Brokerage Inc., which has provided insurance to city contractors.

A cousin, attorney Mark G. Vanecko, has been hired to help bars and restaurants get liquor licenses from City Hall.

Also, Thompson is a partner in the law firm Burke Warren MacKay & Serritella, which worked on a on bond deal for City Hall last summer. And he has lobbied city officials on behalf of clients including: The John Buck Company, James McHugh Construction Co., Victor Sign Corporation, XSport Fitness Health Clubs, Jam Productions Ltd., Thorek Memorial Hospital and Lou Malnati’s Pizzera restaurants.

Thompson declined interview requests on the conflicts of interest he might face if he’s elected to replace retiring Ald. James Balcer. Instead, Thompson spokesman David Bayless asked that questions be provided in writing, and Thompson provided these written responses.

Q. Does Mr. Thompson have a policy — or does he anticipate formulating a policy — to determine when he should refrain from voting on an issue?

A. At MWRD, I operate out of an abundance of caution. If there is an actual conflict of interest, or the potential for perceived conflict, I have abstained from voting on those matters. In fact, there have been cases where I was given a legal opinion giving me the OK to proceed with a vote. Operating out of an abundance of caution, however, I chose to abstain.

If elected, I will adopt the same approach. Not only will I abide by the law, I will continue to be diligent in my policy. When matters are not cut and dried, I will seek input from the Board of Ethics and appropriate legal counsel.

Q. You explained that Mr. Thompson abstained from voting on a bond issue that involved Katten Muchin, his uncle’s law firm. Will he abstain from voting on matters involving his family and their interests? If so, how far will this policy be extended? His siblings? His uncles? His cousins? Daley & Georges? Daley Insurance Brokerage?

A. As I said, I have made decisions on whether to vote or abstain using the “abundance of caution” standard. I anticipate applying the same standard if elected to the City Council.

Q. Aldermen aren’t required to disclose why they abstain on an issue, but there is nothing to prohibit them from explaining why they abstained. If Mr. Thompson abstains from voting, will he explain why?

A. I have always disclosed why I have abstained on votes at the MWRD. Quite honestly, I have not considered this fully. This is something that I will have to evaluate should I be given the privilege to serve. But I do believe that we can and should be more transparent with respect to sharing more information with the public instead of less.

Q. Will Mr. Thompson continue working at Burke Warren MacKay & Serritella?

A. I have not made any decisions as to my employment after the election. I will, of course, follow that law as it relates to any employment matters.

Q. Would Mr. Thompson continue working as a lobbyist? Would he lobby city officials?

A. As you know, the requirement for registering as a lobbyist encompasses real estate developers. I will no longer be representing clients in Chicago. Furthermore, the law prohibits an alderman from being a lobbyist. So, no, I will not, and by law cannot, represent clients on matters dealing directly with the city of Chicago.