Developer Sues Elmhurst Over Condo Denial

ELMHURST, IL – A developer has sued Elmhurst over its rejection of a nine-story condo complex in downtown, across from City Hall.

Meanwhile, the city is asking a DuPage County judge to throw out the lawsuit.

In March, the City Council voted 11-1 against a request for the complex at 196 to 202 N. York St., where an old house and building now sit.

Under city code, the developer could only build up to six stories, unless the council granted an exception.

In its lawsuit filed in June, Oak Brook-based RSCK Holdings said the council's rejection had no "real or substantial relation" to public health, safety or general welfare of the community.

Represented by attorney Louis Bernstein, the firm said it planned 28 "luxury" three-bedroom condos, retail space on the ground level, and a two-story parking deck.

The projected investment was $26.6 million, with each condo expected to sell for $1.1 million, the lawsuit said.

The project would have happened at a city-identified underdeveloped site "threatened with blight," RSCK said.

The denial of a conditional use permit, the firm said, would reduce the gross sales price of the finished project to between $8.8 million and $13 million.

"This loss of gross revenue destroys the economic viability of the project," the lawsuit said.

It said the gain to Elmhurst's public welfare is almost nothing compared to the hardship imposed on RSCK.

The lawsuit also rejected arguments from neighbors about how the larger building would cast shadows on theirs.

"Pure physics dictates that each and every building located at any location on any property anywhere within the (central business core) zoning district would block light and air and cast shadows on adjacent properties during some hours of the day," the lawsuit said.

The lawsuit also noted the city's call in planning documents for greater density in downtown.

In its request to dismiss the lawsuit, Elmhurst said it has the right to deny requests for conditional uses. And it said height is not equivalent to density.

"The luxury units proposed by (RSCK) offer too few residential units per floor," city attorney Andrew Acker said in the lawsuit.

Acker also said the company erroneously stated the city cannot base its zoning decisions on light, air and shadows. He said state law allows these as factors.

In February, the developer's lawyer, Scott Day, hinted the company may go to court if the city rejected its proposal.

No trial date has been set. The judge has yet to rule on Elmhurst's request to dismiss the litigation.