City of Chicago v. Midland Smelting Co.

896 N.E.2d 364, 385 Ill. App. 3d 945
Appellate Court of Illinois·Decided September 30, 2008·No. 1-07-3200·Published·Cited by 32 cases

Opinion

JUSTICE McBRIDE

delivered the opinion of the court:

The present action involves a parcel of property owned by defendant, Midland Smelting Company (Midland). In a prior lawsuit, plaintiff, the City of Chicago (the City), attempted to acquire the property through the use of its power of eminent domain. That action was dismissed by the circuit court as an excessive taking. The City thereafter filed the present condemnation action seeking to acquire approximately half of the property that it had sought in the original action. The trial court denied Midland’s traverse and motion to dismiss and then certified the following questions for interlocutory appeal pursuant to Supreme Court Rule 308(a) (155 Ill. 2d R. 308(a)):

1. Whether the judgment entered in the original condemnation action bars the present action under the doctrine of res judicata', and

2. Whether the City’s proposed taking of Midland’s property is a proper exercise of the City’s power of eminent domain.

We granted Midland’s petition for leave to appeal.

The present case centers on three pieces of property located within the City of Chicago. Midland owns a manufacturing plant on North Halsted Street in Chicago, Illinois, and also owns an approximately 25,000-square-foot parking lot located immediately north of the plant at 1316-1328 North Halsted Street (the Midland Property). Located directly across Halsted Street from the Midland Property is an 80,000-square-foot parcel of property commonly known as 1331 North Halsted (the 1331 property). Located directly to the north of the Midland Property is the property commonly known as 1332 North Halsted Street (the 1332 property).

The record establishes that in the 1960s, the Chicago city council designated the Clybourn-Ogden Redevelopment Area (the Redevelopment Area) as slum and blighted; approved the Clybourn-Ogden Redevelopment Plan (the Redevelopment Plan); and authorized the City to acquire land in the area for redevelopment by purchase, lease, gift, or eminent domain. The Redevelopment Area is triangular in shape and generally bound on the north by West North Avenue, on the east by North Ogden Avenue, and on the west by North Branch Canal. The Redevelopment Plan’s objectives are to remove structurally unsound buildings in the Redevelopment Area and to allow existing structures to be redeveloped for residential, retail, commercial, and light industrial use. All three of the properties involved in this case are located within the Redevelopment Area.

In 1988, title to the 1332 property was placed in a land trust, No. 105006 — 01, with the 1332 Halsted Building Partnership (the 1332 Partnership) as the beneficial owner of the trust and American National Bank and Trust Co. (ANB) as the trustee. In 1988 and 1989, the 1332 Partnership sought to redevelop the 1332 property in accordance with the Redevelopment Plan by converting the existing building on the property from an industrial use to a four-story loft-office building (the 1332 building) to be used for commercial purposes. The property, however, lacked adequate space for on-site employee parking that was required by City zoning laws. To supply the requisite parking and therefore facilitate that commercial development, the city council authorized the sale of the City-owned 1331 property to the owner of the 1332 property. After that sale, on November 1, 1988, title to the 1331 property was placed in a land trust, No. 106845 — 04, with the 1332 Partnership as the beneficial owner of the trust and ANB as the trustee.

The owner of the 1332 property thereafter entered into a Redevelopment Agreement with the City that required construction of a commercial off-street parking facility at the northern end of the 1331 property and provided the option of constructing a commercial/ industrial complex south of the parking facility. In 1989, the City’s Zoning Board of Appeals granted the 1332 Partnership two special use permits. The first permit allowed the 1332 building to be used for a commercial purpose even though it was zoned as a general manufacturing district. The second permit allowed for the establishment of an off-site parking facility on the 1331 property to satisfy the on-site parking requirements for the commercial use of the 1332 building. The second permit also required the 1332 Partnership to “maintain the property continuously in conformance with the provisions and standards hereby established under this order and §5.8 — 5 of the zoning ordinance,” which provides:

“In cases where parking facilities are permitted on land other than the zoning lot on which the building or use served is located, such facilities shall be in the same possession as the zoning lot occupied by the building or use to which the parking facilities are accessory. Such possession may be either by deed or long term lease ***. *** The requisite parking facilities are required at all times; otherwise the Zoning Administrator can recommend action through the Corporation Counsel to have the use discontinued.” Chicago Municipal Code ch. 194A, §5.8 — 5 (1988).

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City of Chicago v. Midland Smelting Co., 896 N.E.2d 364, 385 Ill. App. 3d 945 (Ill. Ct. App. 2008).

896 N.E.2d 364 (City of Chicago v. Midland Smelting Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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