City of Springfield v. Metropolitan Commercial Bank

Appellate Court of Illinois·Decided January 31, 2025·No. 4-42-40674·Unpublished

Opinion

NOTICE

2025 IL App (4th) 4240674-U This Order was filed under FILED

Supreme Court Rule 23 and is NO. 4-24-0674 January 31, 2025 not precedent except in the Carla Bender limited circumstances allowed IN THE APPELLATE COURT 4th District Appellate under Rule 23(e)(1). Court, IL OF ILLINOIS

FOURTH DISTRICT

THE CITY OF SPRINGFIELD, ILLINOIS, a Municipal ) Appeal from the Corporation, ) Circuit Court of Plaintiff-Appellee, ) Sangamon County v. ) No. 23MR237 METROPOLITAN COMMERICAL BANK; OLDE ) TOWN APARTMENTS OWNER LLC; UNITED ) RENTALS (NORTH AMERICA), INC.; AIRTECH ) HVAC/R LLC; ANGELES PAINTING AND ) REMODELING; BLEDSOE ELECTRIC, INC.; HD ) SUPPLY FACILITIES MAINTENANCE; and R.P. ) LUMBER CO., ) Honorable Defendants ) Christopher G. Perrin, (Metropolitan Commercial Bank, Defendant-Appellant). ) Judge Presiding.

JUSTICE VANCIL delivered the judgment of the court.

Justices Doherty and Knecht concurred in the judgment.

ORDER

¶1 Held: The appellate court affirmed in part and reversed in part the trial court’s order of demolition granting summary judgment in favor of the City of Springfield where (1) the court correctly found that no genuine issue of material fact existed as to the alleged buildings’ danger and safety, (2) the court incorrectly found that there was no genuine issue of material fact related to the feasibility of repairs of the alleged buildings where the parties presented different valuations and facts on the matter, and (3) the notice issued upon Metropolitan Commercial Bank was not so deficient as to prejudice it in the proceedings.

¶2 This case arises out of a complaint for the demolition of five buildings in the Olde Town Apartments complex (Complex) filed by plaintiff, the City of Springfield (City). Defendant, Metropolitan Commercial Bank (Metropolitan), holds a lien on the Complex. Upon

hearing the City’s motion for summary judgment, the trial court entered an order granting demolition. Metropolitan now appeals that order, arguing that the motion for summary judgment was premature and that there are genuine issues of material fact that should have precluded the court from granting the motion. Metropolitan also argues the notice served upon it was insufficient.

¶3 For the following reasons, we affirm in part and reverse in part the ruling of the trial court. We hold there was not a genuine issue of material fact as to the danger and safety of the buildings, but that there was a genuine issue of material fact as to the feasibility of repairs. We also hold that the notice issued upon Metropolitan, while improper, was not so deficient as to warrant reversal.

¶4 I. BACKGROUND

¶5 In July 2023, the City filed a complaint for demolition, seeking to demolish five buildings in the Complex located in Springfield, Illinois, alleging the buildings were dangerous and beyond reasonable and economically feasible repair. The Complex consists of 24 buildings over 11.6 acres, including 23 apartment buildings and 1 clubhouse. Specifically, the City sought to demolish buildings 702, 708, 718, 720, and 730. The complaint for demolition identified Olde Town Apartments Owner LLC as the fee simple title holder of record and Metropolitan as a lienholder of record.

¶6 The City’s complaint alleged that on or about March 13, 2023, Mitchell Flynn, the City’s building inspector, examined the premises. As a result of this inspection, the City identified various defects and issues with the buildings. The complaint alleged building 702 contained various structural issues, including decay and deterioration, standing water in the crawl space, mold, a missing subfloor, and a failing foundation. Building 708 had various structural

issues, including decay and deterioration, standing water in the crawl space, mold, a soft and uneven subfloor, and missing siding, soffit, and fascia. Building 718 had mud and water washing into the ground level, standing water in the crawl space, mold, broken windows, and a bad foundation. Building 720 had an exterior wall being pushed in and mud washing through the exterior wall inside. Building 730 had missing doors, windows, siding, soffit, fascia and wall sheathing, and deteriorating floor joists, subflooring, and wall framing.

¶7 The complaint also alleged that on April 10, 2023, notice to repair or demolish the buildings at 700 Bruns Lane, Springfield, Illinois, was sent to defendant Olde Town Apartments Owner, LLC, by regular, first-class mail. A copy of the notice was attached to the complaint and showed that a separate notice was given for each individual building and its address. Additionally, the complaint alleged that on July 5, 2023, notice to repair or demolish the buildings located at 700 Bruns Lane, Springfield, Illinois, was also sent to Metropolitan. An attached copy of this notice contained a notice only for the address “700 Bruns Lane, Springfield, Illinois 62707,” and it did not identify any individual buildings. Metropolitan received a copy of the complaint on or about August 24, 2023.

¶8 Then, the City filed a motion for summary judgment, together with the supporting affidavit of Mitchell Flynn.

¶9 A. Flynn’s Affidavit

¶ 10 In his affidavit, Flynn stated he was the building inspector for the City and had held that position since November 2021. Prior to that, starting in 2003, Flynn served as a building inspector for the City of Macomb, Illinois. Before that employment, Flynn stated he was a carpenter. Since 2003, Flynn stated he has been a certified residential inspector, and since 2022, he has been a certified building inspector.

¶ 11 Flynn also attested to conducting the inspection of the Complex on March 13, 2023. He recalled finding five buildings to be in dangerous and unsafe condition and listed the reasons that were alleged in the complaint detailed above. Flynn stated he conducted a second inspection of the Complex on November 16, 2023, and found the conditions remained.

¶ 12 Moreover, Flynn stated that, based on his training and experience, he estimated the repair costs of the five buildings to total $2,665,000. He detailed the repairs per building as follows: building 702—$625,000; building 708—$625,000; building 718—$425,000; building 720—$460,000; and building 730—$530,000. Flynn’s affidavit also included a true and accurate copy of the Assessment Calculation Report obtained from the Capital Township Assessor’s Office in Sangamon County. This assessment showed the fair market value of the entire Complex to be $4,504,451. The total fair market value of the buildings plus the land was calculated to be $5,276,886. The Assessment Calculation Report also provided a fair market value of each apartment building based on the number of units as follows: buildings with 18 units were assessed at $301,450 each; those with 12 units were assessed from $243,234 to $252,963 each. Ultimately, the affidavit concluded that the fair market value of the five buildings set for demolition was between approximately $1,274,386 and $1,313,302. Attached to the affidavit were pictures of the buildings, accompanied by e-mails written by Flynn stating the cost of repairs for each building.

¶ 13 B. Metropolitan’s Response

¶ 14 Metropolitan filed an opposition to the City’s motion for summary judgment. Attached to the opposition were the affidavits of John Mackris and James Napoli.

¶ 15 1. John Mackris’s Affidavit

¶ 16 In his affidavit, Mackris stated he was currently the senior managing director for

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