State still renting space from felon

OVER $800,000 A YEAR | Also leased building illegally when Rezko pal Ata was appointed by gov to post

Even though he's no longer on the state payroll and has pleaded guilty to federal felony charges, a former top Blagojevich appointee is still getting money from taxpayers.

Ali Ata is one of the owners of a South Side building that has a multimillion-dollar, 10-year lease with the state. The Blagojevich administration is paying Ata and his partners more than $800,000 a year to lease space for the Department of Human Services in the building at 1642 W. 59th St.

Ata was appointed by Gov. Blagojevich in 2004 to head the Illinois Finance Authority. Three months later, the Blagojevich administration agreed to a 10-year extension of his company's lease, to 2014.

Ata was indicted last year on federal charges that he used his former state post to aid indicted former top Blagojevich campaign fund-raiser Tony Rezko in a $10 million business loan-fraud scheme.

Now, Ata's guilty plea last month to tax fraud and lying to an FBI agent could put the lease in jeopardy.

"Central Management Services is currently reviewing the file," agency spokeswoman Cybil Rose said.

It should, said Sen. Dan Cronin (R-Elmhurst), who led a failed Senate effort last week to pass a constitutional amendment that could have led to the governor's recall.

"The state shouldn't be doing business with felons," Cronin said.

Illinois law bars high-ranking government officials from entering into contracts with the state. But business records show Ata was an owner of the building in 2004 and 2005 -- at the same time he was executive director of the finance agency.

Thomas McQueen, Ata's lawyer, questioned whether that means there are grounds for the state to revoke the lease now that Ata no longer has a state job.

"I don't know that there exists a rule that says: If you shouldn't have had it in 2004 but you did, now you can't have it in years thereafter, when you clearly have no conflict of interest," McQueen said.

Testifying against Rezko last week, Ata said he agreed to secretly make Rezko a 25-percent partner in the property in exchange for Rezko's help in getting the lease renewed.

He said Rezko didn't want it known he had a stake, citing public pledges that top Blagojevich fund-raisers would not do business with the governor's administration.

Ata and his partners were at risk of losing the lease in May 2003, when the 59th Street building was still under construction. State officials were threatening to pull the lease because the work was running behind the scheduled July 2003 completion date.

Ata said Rezko intervened, and Ata and his partners were given more time to finish construction. He said Rezko never made any money off the lease but that he gave Rezko $2 million to invest in business ventures, as well as other cash payments.