American National Bank & Trust Co. v. City of Chicago

568 N.E.2d 25, 209 Ill. App. 3d 96, 154 Ill. Dec. 25, 1990 Ill. App. LEXIS 1884
CourtAppellate Court of Illinois
DecidedDecember 18, 1990
Docket1-88-3369, 1-89-0002 cons.
StatusPublished
Cited by10 cases

This text of 568 N.E.2d 25 (American National Bank & Trust Co. v. City of Chicago) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American National Bank & Trust Co. v. City of Chicago, 568 N.E.2d 25, 209 Ill. App. 3d 96, 154 Ill. Dec. 25, 1990 Ill. App. LEXIS 1884 (Ill. Ct. App. 1990).

Opinion

JUSTICE SCARIANO

delivered the opinion of the court:

American National Bank and Trust Company (plaintiff), as legal titleholder of River Center (the Center), a recently renovated building containing offices and retail outlets located at 111 North Canal Street, Chicago, appeals from several circuit court rulings in this action arising from a zoning dispute with the City of Chicago (City).

The dispute arose in July 1987 when Rubloff, Inc. (Rubloff), applied for an amendment to the City’s zoning ordinance which would enable it to construct an office and retail complex at 100 North Riverside Plaza, Chicago, separated only by an alleyway from River Center. The city council unanimously approved the amendment, which became law on October 30, 1987.

According to plaintiff, Rubloff’s proposed development threatens to block River Center’s entire east view of the City and to interfere substantially with its ventilation system. Shortly after the amendment was enacted, plaintiff filed suit against the City seeking both injunctive relief and damages. Rubloff was given leave to intervene. In count I of its complaint, plaintiff charged that it was deprived of due process during the initial phases of the rezoning, prior to the city council vote. In count III, plaintiff complained that the arbitrary and capricious nature of the zoning amendment rendered it unconstitutional. At trial, the circuit court dismissed count III at the close of plaintiff’s case, and after hearing defendants’ case on count I, entered a finding thereon in their favor. Also during trial, the court granted defendants’ motion to exclude an in-court scientific demonstration and certain exhibits.

As construction continued during trial, Rubloff placed a beam alongside River Center which, according to plaintiff, began damaging its air conditioning system; consequently, in September 1988, plaintiff 'filed an emergency motion for a preliminary injunction and added count V to its amended complaint alleging nuisance and requesting that Rubloff be enjoined from continuing with any further work on the beam. The court denied the motion and dismissed count V. On appeal, plaintiff contends that: (1) the City failed to comply with certain guidelines for planned developments set forth in the Chicago zoning ordinance, rendering the zoning amendment invalid; (2) the City denied the plaintiff procedural due process during the rezoning proceedings, in violation of the Federal and State constitutions; (3) the zoning amendment was arbitrary, capricious, unreasonable and without substantial relation to the public welfare, thus requiring reversal of the judgment for defendants on count III; (4) the circuit court improperly denied plaintiff the opportunity to depose various city officials involved in the rezoning process; (5) the circuit court improperly excluded (a) the testimony of plaintiff’s expert witness concerning an out-of-court demonstration of air quality at River Center, (b) a similar in-court demonstration, and (c) advertising brochures; and (6) it successfully stated a cause of action based on nuisance in count V, entitling plaintiff to a trial.

Plaintiff, American National Bank and Trust Company, holds title to River Center, a 19-story building housing office and retail space located at 111 North Canal Street, in Chicago’s west Loop. Formerly known as the Butler Building, River Center was designed by the Burnham architectural firm in 1916 for warehouse and distribution use. Over time it became run down and neglected before the current owner purchased the building in 1980 and began a complete renovation project to convert it to its present use. At the time this dispute arose, approximately 40% of the conversion had been completed at a cost of about $15 million.

River Center extends from Randolph Street south to Washington Street and fronts on Canal Street on the west side. An 18-foot-wide city alley runs along the east side of the building, and immediately east of the alley is the railroad right-of-way of the Chicago Union Station Company with train tracks running at ground level below the street. East of the railway is a city park which fronts the west bank of the Chicago River. The site of the Rubloff development is the space above the railroad tracks between the 18-foot alley and the City park. Before construction began, the entire east side of River Center enjoyed an unobstructed view of the City over the river.

As part of River Center’s conversion project, the current owner upgraded the heating, ventilating and air conditioning system by installing new cooling towers and 600-ton chillers at ground level below the street. Fresh air intakes are located on each floor on the east side of the building. Additional air intakes which provide ventilation for River Center’s lobby are located below a cantilevered driveway, adjacent to the railroad right-of-way.

In late July 1987, Rubloff filed an application for a zoning amendment to permit construction of the development which forms the subject matter of this litigation. The new building will be constructed over the railroad tracks, and its west wall will run parallel to River Center, adjacent to the 18-foot alley. The design of this new development includes a base or pedestal on the south end of the property and a 36-story tower on the north end. The base portion is as high as the roof line of River Center and will contain a parking garage with a 500- to 550-car capacity.

Plaintiff claims it will be adversely affected by the Rubloff construction in three ways. First, the new building will completely block River Center’s east view. Second, by covering the train tracks, the new building will prevent fresh air from entering the Center’s ground level air intakes, causing diesel fumes and other pollutants from the operation of the railroad to accumulate in the Center’s lobby. Finally, the placement of a beam alongside the 18-foot alley will block fresh air from entering River Center’s ground level cooling towers and force warm, moist exhaust to recirculate into the towers, causing damage to its air conditioning system.

Jared Shlaes, real estate appraiser and consultant for plaintiff, testified at trial that the loss of the Center’s eastern view would cause its overall rent value to decrease by about $1.50 per square foot, resulting in an annual loss of rent of about $1.3 million. At a 10% capitalization rate, the corresponding loss of value to River Center would be $13 million, or approximately 25% of its value before the Rubloff construction. His calculations assumed that plaintiff could rent at full value the 39% of the building which was currently vacant. He also acknowledged, however, that the Center’s high vacancy rate could be attributed in part to new construction and an oversupply of rental space in the downtown area.

To prevent the accumulation of diesel fumes and other pollutants in River Center’s lobby, plaintiff would have to relocate the fresh air intakes which service the lobby from the basement track level to the second floor. Relocation would entail taking up to 2,000 square feet of space from a second-floor tenant, correspondingly reducing the tenant’s rent, and using about 40 lineal feet of truck space to relocate the air vents. Apart from the loss of rent, physical relocation of the intakes would cost approximately $308,000.

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Bluebook (online)
568 N.E.2d 25, 209 Ill. App. 3d 96, 154 Ill. Dec. 25, 1990 Ill. App. LEXIS 1884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-national-bank-trust-co-v-city-of-chicago-illappct-1990.