Old Town condo association files lawsuit against developer Fern Hill over 36-story residential tower

Some Old Town residents filed a lawsuit Tuesday afternoon against a Loop developer and the city of Chicago to halt the construction of a 36-story residential tower.

The 1660 N. LaSalle Condominium Association said the project followed an improper zoning process, had due process violations and lacked community participation, according to its lawsuit filed in Cook County. The association is suing Old Town Triangle Partners I, an entity tied to developer Fern Hill, the city of Chicago and the city’s Department of Planning and Development.

The condo association wants to permanently stop construction of the project.

“The main, gigantic elephant in the room is that a 36-story high-rise does not belong in Old Town,” said Gene Murphy, the attorney representing the condo association.

Fern Hill did not respond to a request for comment.

The developer proposed its Old Town Canvas project at 1600 N. La Salle Drive in 2021, as part of a plan to redevelop portions of Old Town bounded by North Avenue, LaSalle Drive and Clark Street.

The project was approved by the Plan Commission in February, despite lingering concerns from neighbors and community groups over its revised design that was hatched between Fern Hill and Ald. Brian Hopkins (2nd).

The redesigned project will have 349 apartments, including 70 affordable units, and up to 285 parking spaces, as well as amenities such as a pool and fitness center. Fern Hill had previously proposed 500 units and 450 parking spaces.

In February, Rich Klawiter, attorney at DLA Piper, representing Fern Hill, said community outreach for the project was “exemplary,” with the building’s design updated because of feedback from various stakeholders.

In April, the Zoning Committee approved a zoning map amendment that reclassified the property to permit the high-rise.

But the condo association’s lawsuit said the developer failed to send legally-required direct notices to residents within 250 feet of the development, making the project in violation of Chicago’s planned development laws.

“Certain residents were not notified,” Murphy said. “I’m not saying it’s an easy task, but it is a task that the developer has to do. And the developers had plenty of time and energy and money to do these administrative tasks, and they failed at that.”

The complaint said the project “substantially alters the scale, traffic flow, historical character and livability of the surrounding neighborhood.” And meetings about the zoning change were not made public and “effectively usurped the community engagement process,” and marginalized dissenting voices.

It also said Hopkins opposed a seven-story development in the area a few years ago, but now supports Old Town Canvas even though it’s “vastly larger and more disruptive.”

Hopkins did not immediately respond to a request for comment.

He was initially against Old Town Canvas, until Fern Hill agreed to reduce the building’s size.

But the condo association said the redesign doesn’t address some of its main critiques like “traffic congestion, architectural incompatibility, pedestrian safety and loss of light and air.” It would also create “permanent shadowing of amenities” like at its pool and sun deck, “which are currently marketed and relied upon as vital recreational spaces — features that cannot be replaced or relocated.”

“[Old Town Canvas] doesn’t belong there,” Murphy said. “In probably one of the most congested parts of the city, adding a building of that magnitude will only make and exacerbate already existing problems of congestion and traffic and everything that goes with it.”

The plaintiff’s building, at 1660 N. LaSalle Drive, is a 42-story property but was built over 50 years ago “under a different zoning environment and with deliberate urban planning to manage their integration,” the lawsuit said. And residents would suffer “irreparable harm,” if the zoning decision is not reviewed again.

“Fifty years ago, Old Town was not one of the most … densely populated parts of the city. It is now,” Murphy said.

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