One Winnetka Developer Offers Apology, Warning, Expansion Request

WINNETKA, IL — The Winnetka Village Council is set to consider a resolution rescinding its approval of the One Winnetka development Tuesday after the developer defaulted on last year's agreement with the village. In a letter to the village attorney, the developer warned the downtown properties he has acquired could sit vacant for another seven years if trustees decide to rescind the deal "in reaction to a handful of displeased results to date," while also suggesting the mixed-use development project now needs to have a third more residential units to be financially viable.

David Trandel, whose One Winnetka development was approved in October 2018, assured Village Attorney Peter Friedman "there are no dangerous or hazardous conditions" affecting the property in a July 29 letter.

The village sued several entities managed by Trandel last month, alleging that they have failed to maintain structures he owns in the 500 block of Lincoln Avenue and 700 block of Elm Street, leaving them in an unsafe condition and asking a judge to ensure that they are brought up to code.

In addition to the blight lawsuit, the developer failed to provide a third-party financial guaranty, as required by the development agreement. Trandel said his new project "sponsor(s) and partner(s)" will provide sealed financial statements to comply with that portion of the agreement.

Another default identified by the village was triggered because the developer was unable to secure the the purchase of the Conney's Pharmacy property. Trandel said negotiations over the property "took far longer than we reasonably anticipated for a wide variety of reasons beyond our control," but the building is now under contract and a new pharmacy can be built in nine weeks.

UPDATE: One Winnetka Development Agreement Repealed In Unanimous Vote

In his letter (below) to village officials, Trandel suggested changes to the plans for the development that would add 20 additional units to the approximately 60 included in the approved version. The shape of the building will not "materially" change under the changes, which include the elimination of balconies and a lower second parking level.

Trandel said the changes were "inevitable given the changes in the global landscape" in the area, rather than anything to do with his own financial situation.

"The uncertainty surrounding the ultimate value of assets in Illinois due to 'wealth flight' brought on by proposed increase in real estate and income taxes are negative," he said, "and especially relevant in an affluent area such as Winnetka and greatly compound the issue."

The developer said terminating the agreement with him would not be in the best interest of residents and is not the "best path" toward getting the property developed. Trandel said three to five years of litigation could result from a vote to revoke the agreement and offered a qualified apology ahead of the Aug. 6 village council meeting.

"I would like to take the opportunity at the meeting to apologize to the community-at-large for the delay in starting the project and apologize for the condition of the soon-to-be demolished buildings," Trandel said. "While many of these factors were beyond my control and purview, it is our responsibility and I do not take it lightly as integrity can only be earned."

Earlier: One Winnetka Developer Defaults On Deal, Leaving Blight Downtown