Problems at Bridgeport Village slow development’s completion
By April Galarza
“Single
family homes on the river with cul-de-sac privacy only ten minutes from the
Loop” said the interactive website that allowed buyers to pick amenities for
their customized houses in the subdivision known as Bridgeport Village. With
that website now defunct and problems ranging from legal action to a work
shutdown plaguing the upscale but still unfinished development, many buyers
still are waiting for their dream houses to materialize.
From the start, Bridgeport Village, located on the edge of the Chicago River near Racine Avenue and 32nd Street, exuded luxury and customization, offering options such as fireplaces, wet bars, whirlpool tubs, and granite countertops. Prices started at $655,000 for a standard model with about 4,400 square feet. The average price was about $845,000, although some corner lot houses could fetch more than $1 million.
Developer and former Bridgeport Village President Thomas Snitzer of Snitzer Homes Inc. had envisioned a North Side lifestyle without the frustration of traffic congestion and overpriced land. Bridgeport Village’s proximity to downtown and access to two expressways made it a potentially ideal location.
“We felt that if we had a critical mass of land, particularly on the river, we could create an environment that would be eventually a nicer place to live than Lincoln Park,” said Snitzer in 2002, when Bridgeport Village opened its first six houses.
Work shutdown
Problems began when City
officials allegedly witnessed work that was contrary to submitted plans on
file. According to the City, some of the alleged violations threatened the
buildings’ structural integrity, so it issued a stop work order.
In a federal lawsuit, Snitzer alleged he was asked for favors such as kickbacks and discount prices on houses for City officials by Timothy Degnan, a former aide to Mayor Richard M. Daley, and Thomas DiPiazza, an aide to Degnan, and that when Snitzer refused to grant those favors the City shut down the project.
Snitzer was unavailable for comment, and acting President John Kinsella refused to be interviewed.
The City counters work was stopped because the “construction deviated substantially from the original drawings and permits…and there were substantial building code violations as a result of the changes to the drawings,” said Jennifer Hoyle, City Law Department spokesperson.
“There were a number of ways developers were not complying with the plan,” she continued. “There was additional construction, including improper support to the structural integrity of buildings. For example, extra floors were built but with no additional support.”
The City Law Department addresses building code violations concerning safety and structural integrity, while the Chicago Building Code regulates acceptance of safety level minimums with respect to fire, building, and structural standards as well as health and general welfare. The code applies to construction and occupancy of all buildings in the City of Chicago. A stop work order is issued only if a building’s construction poses a risk to future occupants.
The federal lawsuit also alleges Kinsella, a Snitzer partner, was told by Degnan in 1999 to make DiPiazza a partner in the development. DiPiazza was not made a partner but allegedly was given a consulting contract worth more than $1 million.
Bankruptcy filing
Last month,
J.S. II LLC, the company controlling the Bridgeport Village development,
filed for Chapter 11 bankruptcy protection. J.S. II is owned by Snitzer,
Kinsella, and Sid Diamond. The latter two took over running the project from
Snitzer after the City shut it down. Snitzer has been at odds with Diamond
and Kinsella, and he did not approve the bankruptcy filing, which allegedly
was done to help solve homeowners’ problems, pay creditors, and resolve
disputes among the owners.
Although all the code violations have not been completely repaired and will not be for a while, the developers promised all would be addressed eventually. Working with Steve Towbin, a Chapter 11 attorney, Bridgeport Village’s developers have extended their loan with American Charter Bank to finance code violation repairs and future construction. Without this action, expenses associated with fixing code violations would have halted development.
To date, 102 houses out of 115 have been sold. JS II may sell some nearby properties it had planned to develop to raise more cash.
“It is our intention to finish out Bridgeport Village and make owners satisfied,” Towbin said, noting the developers’ plans for fixing violations “has the support of home owners, support of the City of Chicago, and is a feasible way to rectify problems.”
Other media have alleged the Federal Bureau of Investigation is examining the alleged shakedowns, but a Chicago FBI investigator told the Gazette he is not aware of any investigations concerning illegal or unethical activity related to Bridgeport Village. The FBI does not release information regarding investigations to the public, however, until arrests are made or indictments are filed.
Neighbors expressed mixed feelings about the development.
“Bridgeport Village seems to be melding into the community pretty well,” said one neighbor, who noted, however, that construction trucks “caused road damage along 32nd Street and Racine” that has not been repaired completely.
Alderman James Balcer is working with the developers to address concerns.
“I think it’s a good development,” Balcer said. “I have worked in the past with this developer. It’s a good project and I want it to continue. With 115 homes, it’s our biggest development and a substantial part of the community.”
He would like to see future development along the river with any developer willing to consider single family houses.
Bridgeport Village’s second phase was scheduled to start this year, adding 50 more houses on seven acres across the river and a footbridge to connect the project’s two halves. Developers also had planned to build 110 houses on an additional 17 acres, bringing the development’s total to 350 houses on 50 acres.
