Skokie Identifies Lead Candidate For Unfinished Downtown Hotel Project

SKOKIE, IL — Skokie officials said Murphy Development Group has emerged as the lead candidate to take over the unfinished hotel project in downtown, though the village has not yet selected a developer.

Rodney Lewis, an attorney with Skokie's outside legal counsel, gave an update this week on the litigation tied to the abandoned shell of the would-be hotel and the village's parallel effort to find a new development team. Lewis said eight to 10 developers were initially interested, and village officials now identify Murphy Development Group as the lead candidate.

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"The Murphy Group decided that they really wanted to take the lead and be the first to come to us with a proposal; they came and met with the village and laid out some preliminary ideas. At this point in time, they're not the chosen developers, but they are the ones that are in the lead in terms of putting together the concrete proposal and presenting that to the village for its consideration," Lewis said.

According to village officials, Murphy Development has used existing contractor relationships to negotiate lower settlement amounts for liens. The village is still waiting for final numbers from the group on completion costs, timing and the specific steps needed to deliver the project. Lewis said the current intention remains a hotel concept, not a conversion to apartments.

Planning for the building began in 2017 as a way to complement the Science and Tech Park. Construction stalled during the COVID-19 pandemic as resource prices increased, and the building has sat frozen since early 2023 after only a few months of work.

The village board previously allocated $13.5 million in Tax Increment Financing funds to the prior developer in December 2020, and $10 million of that has been spent, according to the board. In February 2025, lender X-Caliber Capital filed a foreclosure action against E&M Strategic Development, alleging the developer defaulted on its construction loan amid cost overruns.

A court hearing was held June 4, 2025, on the status of the foreclosure case and outstanding mechanics liens that are now part of an arbitration process between project parties.

"Although the Village is not a party to the litigation, staff and counsel have maintained ongoing communication with the parties involved and have coordinated several meetings involving all parties to the litigation in order to expedite a resolution of outstanding issues and allow for project completion by a new developer. With optimism that litigation between project parties could be resolved this year, the Village is actively seeking potential developers and has been in communication with more than a dozen groups interested in the property," the village said in a statement.