City of Chicago v. Eychaner

2020 IL App (1st) 191053
Appellate Court of Illinois·Decided December 22, 2020·No. 1-19-1053·Published·Cited by 3 cases

Opinion

2020 IL App (1st) 191053 No. 1-19-1053 Opinion filed May 11, 2020 First Division

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IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ THE CITY OF CHICAGO, a Municipal Corporation, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County. ) v. ) No. 05 L 50792 FRED J. EYCHANER and UNKNOWN OWNERS, ) ) Honorable Defendants ) Rita M. Novak and James M. ) McGing, (Fred J. Eychaner, Defendant-Appellant). ) Judges, presiding.

JUSTICE HYMAN delivered the judgment of the court, with opinion. Presiding Justice Griffin and Justice Pierce concurred in the judgment and opinion.

OPINION

¶1 Fred Eychaner again challenges the City of Chicago’s use of eminent domain to take his

property. When the case was last before us, we upheld the taking, finding that the City could use

eminent domain to take the property, which lies in a conservation area, to prevent future blight and

to promote economic redevelopment. City of Chicago v. Eychaner, 2015 IL App (1st) 131833. We

remanded, however, for a new trial on just compensation. After a jury awarded Eychaner $7.1

million in just compensation, he filed a posttrial motion renewing his argument on the taking’s

constitutionality. Eychaner conceded the binding effect of our decision but sought “to preserve” No. 1-19-1053

the constitutional claim for possible review by the supreme court. He also moved to reconsider the

denial of his original traverse based on purported changed circumstances, asserting the City

adopted a new plan for the area so the taking no longer served a permissible public use.

¶2 The trial court denied the motion based on this court having remanded for the limited

purpose of a new trial on just compensation. As to Eychaner’s invocation of changed

circumstances, the court noted that all the evidence of purported changed circumstances was

available before the second trial, so Eychaner could have filed a new traverse or alerted the court

to his claim of changed circumstances. The court also determined that the City’s new plan adhered

to the previous plan’s goals of redeveloping a conservation area to promote economic revitalization

and, thus, the taking continued to serve a constitutionally permissible public use.

¶3 Eychaner appeals, arguing the City may not use eminent domain to take property in a

conservation area in the name of economic redevelopment. He also contends the trial court erred

in denying his motion to reconsider based on the city’s new redevelopment plan. We affirm. The

law-of-the-case doctrine precluded the trial court, and now precludes us, from reconsidering the

denial of Eychaner’s traverse. As to the reconsideration, we agree with the trial court that the new

plan adheres to the earlier plan so that the taking still serves a constitutionally permissible public

use, and the trial court did not abuse its discretion in denying the motion.

¶4 Background

¶5 We laid out the facts in detail in Eychaner, 2015 IL App (1st) 131833, and will summarize

only the relevant facts.

¶6 Fred Eychaner owned vacant land at the southwest corner of Grand Avenue and North

Jefferson Street in Chicago. At the end of 1999, the City proposed creating a planned

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manufacturing district (PMD) there, aimed at protecting industrial jobs; preventing residential

encroachment on existing manufacturing facilities; and encouraging manufacturers to invest,

modernize, and expand their facilities. Residential uses are not permitted within PMDs. See

Chicago Municipal Code §§ 17-6-0403-C, 17-6-0403-F (amended Sept. 10, 2014).

¶7 Blommer Chocolate Company’s (Blommer) factory stood two blocks south of Eychaner’s

property. Blommer initially opposed its factory’s inclusion in the PMD, raising concerns that

residents of a nearby planned residential development would find the smell, noise, and traffic

generated by the factory “intolerable.” Blommer proposed two solutions: extending the PMD

further south to provide a buffer between Blommer and the new residential development or not

including Blommer in the PMD to allow it to sell its property more easily if conflicts with the

residents forced it to relocate. Blommer also discussed with the City the possibility of acquiring

property to the north of its factory, which did not include Eychaner’s property, for a truck staging

area.

¶8 The City wanted to keep the Blommer factory, and the City’s plan commission spent

months discussing alternative plans with Blommer to make sure that happened. Eventually,

Blommer dropped its opposition in exchange for the City’s willingness to help Blommer expand

its industrial campus by acquiring nearby property to “create a buffer” between its operations and

the proposed residential development. The plan commission recommended that the city council

adopt the PMD. It did a few months later.

¶9 The City intended to fund the project though the River West Tax Increment Finance

Redevelopment Plan (River West TIF). The City retained a private firm that commissioned studies

and produced a 68-page report about the River West TIF. The report concluded:

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[T]ax-increment financing would induce private investment and arrest blighting factors in

the area. Because the area had not been subject to growth and reinvestment, the study

reasoned that property owners would not invest in their properties without tax-increment

financing. The study anticipated benefits, including: (i) stronger economic vitality; (ii)

increased construction and long-term employment opportunities; (iii) replacement of

inappropriate uses, blight, and vacant properties with viable, high-quality developments;

(iv) the elimination of physical impediments, such as roads in poor condition; (v) the

construction of public improvements to attract private investment; (vi) job-training services

to make the area more attractive to investors and employers; and (vii) opportunities for

minority- and women-owned businesses to share in the redevelopment.”

¶ 10 Although Eychaner’s property was not deemed blighted, the study stated that it met the

requirements of a “conservation area” under the Tax Increment Allocation Redevelopment Act (65

ILCS 5/11-74.4-1 et seq. (West 2006)) and, as a conservation area, “may become a blighted area”

because of (i) deterioration, (ii) code violations, (iii) excessive vacancies, (iv) lack of community

planning, and (v) lagging property values (id. § 11-74.4-3(b)). The City’s community development

commission recommended, and the city council adopted, the plan for the River West TIF.

¶ 11 A few months later, Blommer submitted a redevelopment proposal for its expanded

campus. Blommer proposed acquiring 4.2 acres of land surrounding its factory, including

Eychaner’s land. Initially, Blommer offered to buy Eychaner’s land, but he refused to sell. Then

the City notified Eychaner of its possible taking of his property with the intent of conveying it to

Blommer as part of its plan to expand its campus. After a public hearing, the city council passed

an ordinance authorizing the taking. The ordinance considered the taking necessary to achieve the

objectives of the River West TIF.

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¶ 12 Condemnation Proceedings

¶ 13 In August 2005, the City filed a complaint to condemn Eychaner’s property through

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