Developer, community closer on Fed Ex site

The months-long debate over the proposed redevelopment of the former Fed Ex site at 1260 and 1300 W. Madison St. has achieved some progress after the developer and community residents reached an agreement addressing at least some of the residents’ concerns, yet one community organization continues to express concerns.

Alderman Walter Burnett (27th) brought both sides together and played an important role in brokering the deal to alter some aspects of the plans by developer the Pickus Companies. Residents had been concerned over the initial plan’s height, density, concentration of affordable housing in the smaller building, and effect on the area’s traffic and parking situation.

While the building still will contain 318 units, changes to the plan have reduced the taller building’s height from 115 to 90 feet to fit better in an area where the tallest buildings measure 78 feet. All studio units have been eliminated, and most units will have one or two bedrooms. Also, the number of affordable housing units has been distributed equally between the two buildings.

The changes “are workable” and “allow for a good project that will contribute to the area in a positive way,” said developer Joel Pickus of The Pickus Cos “This gives residents what they want, which is a lower building.”

Burnett believes the agreement between The Pickus Cos. and the community is a “win-win situation” in that residents are “not going to end up with a vacant building in the neighborhood.”

            He explained that several good things will come out of this process, including commercial space, affordable housing and, especially, a $1.4 million donation the developer will make to Bickerdike Redevelopment Corp., an organization focused on redeveloping communities for and by low- and middle-income people. Bickerdike is currently working on plans to build an eco-friendly, affordable rental housing development called the Rosa Parks Apartments in Humboldt Park. Burnett explained that the project was facing a $2 million gap in financing, so the donation will go a long way toward closing that gap.

                    “We got money for another part of the community that needed it,” Burnett said of the donation.

Some residents still may harbor concerns over the building’s glass architecture not fitting in with the neighborhood and over parking and traffic congestion, but the West Loop Concerned Citizens group is proud of the changes they were able to bring about, said WLCC’s Laurie Gentle. The group led a grassroots movement to make residents’ concerns heard and invested much time researching city guidelines, hosting community meetings and facilitating the entire process.

Gentle explained that the revised plan still does not meet height guidelines set by the City and remains an area of disappointment for the group. However, that they were able to have any impact when up against a developer was an achievement in itself.

“It was a daunting task, but we got great results,” Gentle said. “This just proves activism is better than apathy.”

However, whether the issue can be put to rest remains to be seen now that the developer has presented the plans to the Chicago Plan Commission. Another group, the West Loop Community Organization, said that additional changes were made to the plans that were not in the plan the community agreed upon.

Pickus maintains that his plans are in 100% percent compliance with the letter of approval from the West Loop Concerned Citizens group, adding that the changes made had to do with interior issues, such as the parking layout, which were not part of discussions with residents. The letter outlines the drop in height and the number of units, and those are things that have not changed, Pickus said. He added there is nothing underhanded going on and that he is not sure how to satisfy residents.
            Eric Sedler of the West Loop Community Organization said “an ethical developer would not make changes” to plans already approved by the community. The group plans to go to the City and Burnett to see what can be done.

            --Miriam Y. Cintron

 

Cermak property dispute nears conclusion

A property dispute between the owners of a two-flat at 2218 W. Cermak Rd. and the bank next door has lasted almost two years but appears to be nearing a conclusion.

            As of this writing, attorneys for both sides were trading offers and counter-offers in an effort to settle the case equitably. The dispute dates to 2003, when sisters Elise Gorski, 76, and Pauline Storgul, 81, signed an option-to-buy agreement with Mutual Federal Savings and Loan, at 2212 W. Cermak, for the two-flat that had been their family home for 75 years.

            Storgul had spent most of her life in the house, but the sisters had moved to Florida to be closer to family. Bank officials then took legal action when they said the sisters would not abide by the terms of the option agreement and sell the property to the bank.

The Gorski family maintained the bank treated them unfairly, asking them to sell the property for as much as $219,000 less than it was worth.

Currently, a hair salon leases the first floor; the family said the bank’s offer did not take into consideration revenue the salon generated.

Stephen Oksas, president of Mutual Federal, said in April the bank was ready to accept a counter-offer to settle the case. He sees it as a simple legal dispute that has already been decided in the bank’s favor by Judge Mary Anne Mason in Chancery Division of Cook County Circuit Court.

“The underlying facts of the case are simple and remain unchanged from the beginning,” Oksas noted. “The owner of the property is an absentee landlord who has not lived in Chicago for over a decade. The bank is a small one-office savings and loan association which has operated in Chicago for over 100 years. The bank paid the owner for the option to purchase the property (which is adjacent to the bank), and when the bank tried to exercise the option, the owner refused to sell and the matter ended up in court.”

Mason ruled Jan. 28 that the agreement was valid and enforceable, although she has since stayed the ruling to allow an appeal. Dennis Stolfo, lead attorney for the sisters, said that although “we are getting closer to a settlement in this matter,” he still was prepared to take the matter to Illinois Appellate Court.

“The appeal is still alive,” said Stolfo, who alleges Mason “was an advocate for the bank” during the bench trial and did not allow a jury trial. He also said Pauline Storgul’s dementia was not considered at that time.

“We are trying to settle this. It is certainly something that both parties would like to see settled,” Stolfo concluded.”

--Dermot Connolly