The Lake Forest City Council and the developers of a proposed condominium have reached a tentative settlement that, if enacted, could allow construction of a controversial building next year.
On Oct. 17, the council voted 6-1 to accept a settlement agreement in the ongoing litigation between the city and 361 Westminster and 705 N. McKinley Development.
Under the terms of the settlement agreement, the developers, Peter Witmer and Todd Altounian, are modifying their latest proposal for the property within the city’s historic preservation district on McKinley Road, just east of the city’s downtown.
Among the changes in the third phase of the overall development — two buildings have already been constructed — include the proposed building of a 3,700-square-foot, single-family house on Westminster Road, where city officials state a goal is to limit the view of the envisioned two-story condominium from the streetscape and neighboring homes.
In addition, there will now be fewer apartment units, as opposed to the original eight.
Moreover, the existing utility wires and poles, on the west of the property and visible on Westminster Road, will be removed with the utility wires buried underground.
Finally, the city, which agreed to sell the property in 2018 to the developers for $500,000, will now reduce the purchase price to $250,000, and another maximum of $250,000 maximum will be reimbursed to the developers for burying the utilities, according to a copy of the settlement agreement.
Pedestrian access to the nearby Lake Forest Public Library will remain, but the original plan of transferring a certain amount of land to the library will no longer be required by the city.
Finally, the agreement calls for a cash payment of $72,000 by the developers in lieu of an affordable housing unit in the condominium building.
Other specifics of the plan are set to be revealed next month as the developers are set to appear before both the city’s Plan Commission and Historic Preservation Commission before heading back to the City Council in December.
City Attorney Kurt Asprooth said the litigation will be stayed until Dec. 5, allowing city boards and commissions to hear the modified plan.
“If the city approves the revised plan, the existing lawsuit will be dismissed with prejudice and that will wrap up the litigation,” Asprooth said.
Mayor George Pandaleon believed this building plan was a better arrangement for the city, as opposed to the plan presented last year by the developers.
“This is just hitting the pause button while we to get a better deal for the neighborhood,” he said.
Witmer expressed satisfaction with the settlement terms.
“What is good for the city is good for us.” he said. “I think we have common goals, and look to resolve the issues so we can move forward with the project. There is a lot of risk for both sides to continue, and we think it is a good outcome for both sides. I think it is a reasonable solution.”
If the settlement is approved, it will conclude a drama that began last year when the City Council did not overturn a Historic Preservation Commission vote preventing the construction of the third building.
Then Witmer and Altounian filed a lawsuit against the city. In June, a breach of contract claim was dismissed by Lake County Judge Mitchell Hoffman, but other parts of the litigation continued. Hoffman has since retired and replaced by Judge Jacquelyn Melius.
Despite the win in June for the city, Pandaleon feared the unknown of how the court might rule, fearing the 2021 plan could be allowed to move forward.
“Anyone who handicaps this and how this is going to go, I think is dreaming,” he said.
The city has paid $115,432 in legal fees and litigation costs regarding this matter, according to Community Development Director Catherine Czerniak.
Most of the City Council supported the settlement.
“This is a chance to do the right thing to get the process going for a plan that is incrementally better,” Alderman Jim Preschlack, 3rd Ward, said.
“This was a tough negotiation and what is before us tonight is the fairest resolution that was possible,” Alderman Melanie Rummel, 2nd Ward, added.
Alderman Ray Buschmann, 4th Ward, cast the lone dissenting vote pointing to the financial arrangement.
“I don’t think the city got a fair deal in terms of contributions and the amount of moneys we put into this thing,” he said.
However, adamant opposition remained from some neighbors to the new plan amid fears the condominium remains out of character for the historic district.
“There is a real danger that it will encroach and overpower the proposed single-family home, and undermine the historic integrity of the surrounding area,” Lake Forest Preservation Foundation President Susan Athenson said in a statement at the Oct. 17 meeting.
Neighbor Rommy Lopat offered a similar sentiment.
“This settlement does not work for the city as a whole,” she said.
Neighbor Todd Curry said there was much progress made in this plan, but he called a prohibition of rooftop decks at the building when the rest of the specifics are unveiled next month.
“This is not Highwood. This is not Wrigleyville. This is the historic part of Lake Forest, and they are not appropriate for this part of Lake Forest,” Curry said.
Witmer said if the new plan is approved, construction could start in the spring.
