River Forest officials were recently dealt a setback by a Cook County Circuit Court judge in their ongoing legal battle over the stalled Lake and Lathrop development.
Cook County Judge Anthony C. Kyriakopoulos ruled May 2 that the current condition of the Lake and Lathrop site on the southwest corner of Lake Street and Lathrop Avenue does not warrant demolition. He denied the village’s ability to pursue restoration of the vacant project site.
In April, officials filed a brief that reiterated their argument that the “incomplete, dangerous nuisance structures” on the site should be removed “as soon as possible” by Wintrust Bank, the property owner.
“Restoring the site to a vacant lot with grass will help prepare it for future development,” officials said in the village’s April 4 e-newsletter. “The village’s priority for this property continues to be to attract an appropriate and viable development that will provide many community benefits.”
Village Administrator Matt Walsh said he was discouraged by the latest court ruling.
“The village and its residents are disappointed in Judge Kyriakopoulos’ decision to not demand that Wintrust and Lake Lathrop Partners remove the unsightly and unsafe structures that have been in place for over two years,” he said. “Separately, the village continues to encourage the resolution of the ongoing foreclosure case between Wintrust and Lake Lathrop Partners LLC, with the ultimate goal of bringing an exciting, appropriate new development to the site as soon as possible.”
Beverly Bank and Trust is a Wintrust-affiliated bank that was financing the development and Lake Lathrop Partners LLC is the developer of the stalled project to construct a mixed-use building on the site.
The now failed four-story development was to contain 22 condominium units with 14,000 square feet of retail space. The project had been on the drawing board since before the village board approved Lake Lathrop’s proposal in 2016.
River Forest pulled the plug on the development over a year ago, but Lake Lathrop officials in May 2024 countered by applying for a new building permit for the development. This too was denied by the village.
Lake Lathrop Partners appealed a ruling in February by Cook County Circuit Court Judge Joel Chupack granting the village’s motion to dismiss a lawsuit filed in July by the developers against the village that claimed River Forest had acted illegally in its denial of the new building permit.
“We do not expect a ruling for six months,” Walsh said. “The village is extremely confident in its position and expect Judge Chupack’s decison in favor of the village to be upheld.”
In September 2023 officials repealed the building permit for Sedgwick Properties, an authorized agent acting on behalf of Lake Lathrop Partners LLC, and issued a stop work order. They said those steps were taken because Sedgwick failed to meet the requirements and conditions of the village’s 18-month building permit, which was originally issued in February 2022.
The long-delayed project had been on life support since April 2023, when Beverly Bank and Trust, a Wintrust-affiliated bank that was financing the development, filed suit against Sedgwick Properties in Cook County court, looking to claw back $4.2 million from the $20 million line of credit it issued in 2022. In the lawsuit, the lender has reportedly cited several provisions in its loan agreement with Sedgwick affiliates that were violated, including that the contract required the borrower to stay in compliance with local regulations and to stick to a tighter construction timeline.
The next hearing for the foreclosure case is set for July 14.