Prociuk v. Village of Schiller Park

CourtDistrict Court, N.D. Illinois
DecidedNovember 14, 2022
Docket1:21-cv-05921
StatusUnknown

This text of Prociuk v. Village of Schiller Park (Prociuk v. Village of Schiller Park) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prociuk v. Village of Schiller Park, (N.D. Ill. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

DENNIS PROCIUK, in his capacity as the ) successor supervised Administrator of ) The Estate of Theodore Prociuk, Sr., ) ) Plaintiff, ) ) No. 21-cv-05921 v. ) ) Judge Andrea R. Wood VILLAGE OF SCHILLER PARK, et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

The Estate of Theodore Prociuk, Sr. (“Estate”) has, for several years, been attempting to sell property it owns in the Village of Schiller Park, Illinois (“Village”). However, Plaintiff Dennis Prociuk, in his capacity as the successor supervised Administrator of the Estate, claims that the Estate’s efforts to sell the property have been thwarted by the actions of the Village, the Village’s Zoning, Planning & Appeals Commission (“Zoning Commission”), the Village’s Board of Trustees, and Village Planner Scott Bernacki (collectively, “Defendants”). Therefore, Plaintiff has brought the present action alleging that Defendants’ conduct violates the Takings Clauses of the U.S. and Illinois constitutions, and the Due Process Clause of the U.S. Constitution. Before the Court is Defendants’ motion to dismiss Plaintiff’s First Amended Complaint (“FAC”) pursuant to Federal Rule of Civil Procedure 12(b)(6). (Dkt. No. 17.) For the reasons that follow, Defendants’ motion is granted. BACKGROUND

For the purposes of the motion to dismiss, the Court accepts all well-pleaded facts in the FAC as true and views those facts in the light most favorable to Plaintiff as the non-moving party. Killingsworth v. HSBC Bank Nev., N.A., 507 F.3d 614, 618 (7th Cir. 2007). The FAC alleges as follows. The Estate was opened under the supervision of the Probate Division of the Circuit Court of Cook County following the death of Theodore Prociuk, Sr. in November 2005. (FAC ¶¶ 6, 12, Dkt. No. 3-3.) Among the Estate’s assets are 2.8 acres of real estate located in the Village

(“Property”). (Id. ¶¶ 4–5.) The Property consists of two parcels of land—one containing most of a 61,975 square foot industrial building and the second containing a small portion of the industrial building and a surface parking lot. (Id. ¶ 4.) The Estate’s original supervised Administrator did not perform his duties with diligence. (Id. ¶¶ 13–16.) As a result, the Estate was unable to pay its taxes, and the Property became encumbered by liens held by the U.S. Treasury for unpaid federal estate taxes and by Cook County for unpaid property taxes. (Id. ¶ 16.) On June 4, 2018, Plaintiff was appointed to take over as the Estate’s supervised Administrator. (Id. ¶ 20.) Shortly thereafter, the original Administrator provided Plaintiff with a check for $13,075.57, which represented the Estate’s remaining funds

for its administration. (Id.) By the time Plaintiff took over as the Estate’s Administrator, the Property was worth substantially less than the amount of the tax liens attached to it. (Id. ¶ 18.) Consequently, it was not economically viable for a buyer to purchase the Property unless the purchase was structured in such a way as to resolve the liens. (Id.) To make the Property saleable, the Estate proposed a conduit sale under which the Estate would first transfer title to the Property to the Cook County Land Bank Authority (“Land Bank”).1 (Id. ¶ 24.) The Land Bank would then seek to sell the

1 The FAC provides little background information about the Land Bank. According to its website, the Land Bank “is a unit of Cook County government” that acquires property throughout Cook County with the goal of “promot[ing] redevelopment and reuse of vacant, abandoned, foreclosed or tax-delinquent properties.” About Us, Cook County Land Bank Authority, http://www.cookcountylandbank.org/about/about-us/ (last Property to a private buyer free and clear of the liens and use the sale proceeds to pay the Property’s lienholders. (Id.) In July 2018, the Estate began efforts to effectuate the proposed conduit sale and eventually found a developer who would make a suitable buyer. (Id. ¶¶ 26–27.) For the developer’s purchase to be worthwhile, the developer and the Estate needed to ensure that the developer could put the Property to a profitable use that would also be permitted

by the Village’s zoning code. (Id. ¶¶ 28–32.) Thus, the developer and the Estate proposed that the Property be used as a valet parking facility serving the nearby O’Hare International Airport. (Id. ¶ 32.) Under the Village’s zoning code, such use was not an automatically permitted use in the Property’s zoning district but instead was a conditional use that required the Village’s approval. (Id. ¶¶ 33, 42.) Accordingly, the Estate submitted a petition to the Zoning Commission for approval to use the Property as a parking lot for private passenger vehicles. (Id. ¶ 33.) On November 13, 2019, the Zoning Commission held a public hearing regarding the Estate’s conditional-use petition. (Id. ¶ 34.) During the hearing, the Zoning Commission heard no objections to the Estate’s petition. (Id. ¶ 35.) But in advance of the hearing, the Village Planner, Scott Bernacki,2 submitted a memorandum to the Zoning Commission recommending that the

Estate’s conditional-use petition be denied. (Id. ¶ 36.) In his memorandum, Bernacki predicted that if a parking lot were permitted on the Property, it would substantially increase the traffic in the area. (Id. ¶ 37.) The Estate strongly disputes the accuracy of the memorandum’s prediction regarding the traffic that a parking lot at the Property would generate but, because it was not

visited Nov. 10, 2022). To that end, the Land Bank will purchase a property and “extinguish delinquent taxes and liens as permitted by law . . . with the intent of preparing [the] property for conveyance back to ‘the market.’” Id. 2 Bernacki is named as a Defendant in the FAC. However, in response to Defendants’ argument in their opening brief that the claims against Bernacki in his official capacity as Village Planner are duplicative of the claims against the Village, Plaintiff has moved in his response brief to voluntarily dismiss Bernacki as a Defendant, without prejudice. (Pl.’s Opp’n at 11–12, Dkt. No. 21.) aware of Bernacki’s memorandum prior to the public hearing, the Estate had no opportunity to meaningfully respond to it at the hearing. (Id. ¶¶ 38–41, 44.) Prior to the Zoning Commission’s vote on the Estate’s petition, several members of the Zoning Commission stated that their vote would be informed largely by traffic considerations. (Id. ¶ 43.) Ultimately, the Zoning Commission’s vote on the Estate’s petition was evenly split, which amounted to a

recommendation that the petition be denied. (Id. ¶ 45.) On December 5, 2019, the Village’s Board of Trustees adopted the Zoning Commission’s recommendation and voted unanimously to deny the Estate its requested conditional use. (Id. ¶ 46.) Meanwhile, the Estate also sought the Village’s endorsement of the proposed conduit sale of the Property. (Id. ¶ 49.) Although the Village had no formal role in any sale of the Property, the Land Bank considered support from the local government as a critical factor when deciding whether to move forward with a transaction. (Id. ¶ 25.) Thus, the Estate reached out to the Village on multiple occasions requesting that it provide some expression of support for the conduit sale. (Id. ¶¶ 50–53.) Ultimately, the Village responded to the Estate’s entreaties by way of a December

13, 2019 email from Bernacki, in which he stated that “[t]he Village has no interest in any property sales between the Estate and the Land Bank. The Village has no interest in taking title to the property.” (Id.

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Prociuk v. Village of Schiller Park, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prociuk-v-village-of-schiller-park-ilnd-2022.