Lake Forest Real Estate Investors LLC
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      • Videos: Village Board Meetings >
        • 4/3/2018
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        • 2/20/2018
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  • About Us
    • Leadership
    • Target Investments
  • Experience
    • Aon Center
    • Arlington South Dunton
    • Desert Sky
    • Direct Supply
    • Glen Town Center
    • Hobson MOB
    • Lake Forest Sports Cars
    • Lake Shore Athletic Clubs
    • Midwest Orthopedics
    • Northwest Community Healthcare
    • Northbay ASC
    • Pinnacle Condominiums
    • Purple Hotel Site >
      • Videos: Village Board Meetings >
        • 4/3/2018
        • 3/20/2018
        • 3/6/2017
        • 2/20/2018
      • Capitalization
    • Sherman Plaza
  • Preservation
  • Links
    • Lake Forest Real Estate Capital
    • Forge Projects
    • mir collective
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Purple Hotel Site | Lincolnwood, IL

4/10/2018:   Z|S Statement 

We regretfully have suspended all our activities in association with this development.   
  • Link to our Detailed Timeline
When the Village took precipitous action against us by passing an ordinance allowing the Village President to purchase the property by eminent domain then refused to meet with us to discuss this potential action, our otherwise well-advanced funding was forced out by the uncertainty of ownership.  We were otherwise ready, willing, able and capable to develop the subject property.  

​Sincerely,

Z|S Development LLC
Lake Forest Real Estate Investors LLC

3/21/2018:      Contract Purchaser statement 

Over the past month, the Lincolnwood Board of Trustees has debated and passed an Ordinance authorizing the Village Board President to make a bona fide offer to purchase the property at Touhy and Lincoln Avenues. This Ordinance is commonly understood to be the first step of a potential eminent domain proceeding.  The Board’s motivations for this action have been described as a desire to better control the development process and skepticism regarding the ability of our fee developer – Z|S Development.

Since the initial announcement of the proposed ordinance in mid-February, the development process has been put on hold to re-underwrite the risk to our investors.  We cannot responsibly invest additional capital toward expensive planning and analysis efforts until the intentions of the Village of Lincolnwood are understood.  We feel our development team should be allowed to proceed through the same, standard, codified process as any other developer, without the threat that the Village Board President might, at any time, begin a process that leads towards condemnation, rendering our investment into further planning lost.
​
At Lincolnwood’s March 20th Committee of the Whole meeting, we asked that the Village to remove this Ordinance and allow the process to begin as originally agreed with Village staff and outlined in the Village code, or to make their bona fide offer.   If neither of those is amenable to the Village,  a third option would be for the Village to provide a list of acceptable developers so we may hire a fee developer that is acceptable to the Village.

Sincerely,

Lake Forest Real Estate Investors LLC
On March 6, 2018 the Village Board of Lincolnwood passed an Ordinance Authorizing Negotiations and Final Bona Fide Offers to Purchase Title to Certain Real Property Located at 4500 – 4560 W. Touhy Avenue and 7350 N. Lincoln.   This the first step in potential lengthy and expensive condemnation process.

Timeline - PreContract

  • 01/20/16 :    Senior Lender recorded a Notice of Foreclosure 
  • 07/20/16:    Z|S affiliate contacts lender to inquire about a potential note purchase
  • 08/22/16:    Z|S affiliate's first of seven (7) meetings over the course of the next 16 months with Lincolnwood officials and staff 
  • 12/16:            Lincolnwood publishes Strategic Plan Report 2017-2019   Plan incorporates many of the ideas Z|S affiliate.
  • 01/11/17:       Public Auction ordered by Court
  • 02/21/17:      Village Board unanimously passes Ordinance to proceed with Eligibility Study for the Re-designation of the Lincoln-Touhy TIF
    • ​Read minutes
    • Watch  video
  • 04/11/17:      Public Auction,  Z|S affiliates present at auction but outbid
  • 05/23/17:     Special Sessions of Village Board passes Ordinance to Suspend Activity concerning re-designation of the Lincoln-Touhy TIF only 3 months after unanimously passing this ordinance on 02/21/17.
    • ​Read minutes
  • ​06/07/17:     Z|S Meeting with Village to discuss potential development ideas with new Village President including establishing a 6-9 month entitlement timeline and estimated meeting schedule based on Ordinance 8.05 - Procedure "Planned Unit Development"​  -  See Z|S meeting notes
  • 08/15/17:        Village Board approves resolution adopting a conceptual site plan to facilitate redevelopment of the former Hyatt Hotel Site
    • Read minutes
    • Watch video
  • 10/11/17:      Sherriff Sale Approved.  Foreclosing Lender takes ownership and able to transact
  • 11/01/17:      Letter of Intent executed with Seller
  • 11/03/17:      Meeting with Village to discuss executed Letter of Intent​
  • 11/21/17:       Z|S meets with Seller
  • 12/14/17:      Z|S meets with Village to disclose status as contract purchaser​​
    • ​Request a copy of the contract from the Village here

Timeline - Post Contract

  • ​12/19/17:       Redacted executed Purchase and Sale Contract delivered to the Village Attorney by the Seller's Attorney.
    • ​Request a copy of the contract from the Village here
  • 01/25/18:     Unable to assemble neighboring properties included in Village approved concept plan, Z|S moves forward with planning of the subject site ​
  • 02/9/18:       Village President contacts Z|S for a status update
  • 02/11/18       Lincolnwood agrees to meeting with Z|S for February 20th.
  • 02/14/18:     Lincolnwood cancels Z|S meeting scheduled for February 20th.  Village refuses to reschedule meeting with Z|S.
    • Why did Village wait until Z|S deposits went hard to cancel the scheduled meeting?​
  • 02/16/18:      Village published agenda for 2/20/18 including a first steps in a potential condemnation action of the subject site.
  • 02/19/18:      President's Day National Holiday
  • 02/20/18:     Village Board discusses Ordinance Authorizing Offers to Purchase Title to subject property described below.  Z|S makes public request to reschedule meeting that the Village canceled which had been scheduled for 2/20/18.  Village refused to reschedule that meeting.
    • ​Read minutes
      • ​Read Z|S CEO statement
      • ​Read Z|S Design Director statement
    • Watch video
  • 03/06/18:     Village Board passes the Ordinance to Make a Bon Fide Offer.  The first step towards potential condemnation.  Z|S allowed only 3 minutes to speak in public forum.
    • ​Watch video
  • 03/07/18:        Z|S is invited to present to Committee of the Whole by Village Attorney via Seller's Attorney.  Village advises that the presentation should, at a minimum, include (neither of which is consistent with Village description of process to Z|S at meeting on 06/07/2017: Ordinance 8.05 - Procedure "Planned Unit Development"):
    1. ​​A demonstration of the way in which the proposed development plan satisfies and complies with the comprehensive planning for the site that has been approved by the Village, including the 2017 Conceptual Site Plan, and
    2. The amount and nature of economic incentive, if any, that will be requested of the Village as part of the proposed development plan
  • 03/19/18:            Z|S received multiple construction to permanent loan applications from Lender 
    1. ​​85% Loan-to-Cost for a development consistent with 2017 Conceptual Site Plan
    2. 75% Loan-to-Cost for an aspirational development consistent with spirit of the 2017 Conceptual Site Plan
  • 03/20/18:         6:30PM:  Village Board Committee of the Whole meeting where Z|S shall make the requested presentation
    • ​​Watch video
    • See Village Board Agenda Information Package
    • Download Z|S Presentation Materials 
  • 03/22/18:         Contract Purchaser requests follow-up meeting  via email to Village to discuss moving forward under a number of potential alternatives and to address specific concerns raised by Village Board members
  • 03/26/18:         Having not received a response to the meeting request made on 03/22/18, the Contract Purchase resent the email request from 3/22/18 to the Village.
  • 03/27/18:          Contract Purchaser requests 30 minutes to address Committee of Whole 
  • 03/29/18:          Contract Purchaser request to address the Committee of the Whole is denied formally by Village.  Village refuses to schedule any meetings with with Contract Purchaser.
  • 04/03/18:          Contract Purchaser plans to attend Committee of Whole to speak for 3 minutes in public forum
    • 04/03/18:          Trustee Georjean Hlepas Nickell makes a motion at the Committee of the Whole to allow us to speak.   
      • Watch Video
  • 04/06/18:          Unable to agree to proposed content and participant restrictions required by the Village for a meeting, Z|S attempts to schedule meeting with the Village fail.​​
  • 04/06/18:          Z|S not able to extend contract any further and suspends pursuit.
​​

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1300 North Waukegan Road
Lake Forest
Illinois
​60045


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