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LSC Development to Build Chicago Self-Storage Facility After Settling Lawsuit Against the City

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LSC Development LLC appears poised to move forward with building a self-storage facility in Chicago after settling a lawsuit it filed against the city. The suit was filed after the city cancelled LSC’s construction permit just one day after issue. LSC intends to build a five-story facility at 5150 N. Northwest Highway, where a seven-story mixed-use development is also planned, according to the source.

LSC filed suit against the city last April after buildings commissioner Judy Frydland voided its construction permit at the urging of alderman John Arena. Though LSC obtained the permit in accordance with the property’s M1-1 zoning, Arena later had it changed to B1-1, which doesn’t allow self-storage, the source reported.

Under the developer’s original plans, the self-storage facility would have been converted from a former Archdiocese of Chicago food-processing plant and taken up the entire building site. Arena reportedly wanted to halt the project because it didn’t include any residential component, according to the source.

Though details of the agreement haven’t been released, LSC is now expected to build the storage facility on the northern half of the parcel and later sell the southern half to a residential developer, the source reported. Last month, LSC filed a zoning application to allow for self-storage and an unspecified residential development. The new plan calls for a 100-unit apartment complex. The old food-processing plant will be demolished.

The new mixed-use plan for the site is expected to generate much higher tax revenue for the city, according to Arena. “The agreement will increase the property-tax revenue for the space from a projected $135,000 a year from adapted reuse [of the existing building] to an estimated half a million annually from the combined storage, retail and residential. More than half will go to our schools,” he told the source. “We are pleased with this outcome, which is a much better deal for the taxpayers and local residents than what was initially proposed.”

In its lawsuit, LSC indicated it was blindsided by the zoning change and alleged it was never notified by the city before officials filed the rezoning ordinance. LSC challenged the voiding of its construction permit and sought damages.

Cook County, Ill., Circuit Court Judge Sophia Hall dismissed the lawsuit earlier this month after the city and developer settled out of court. LSC will have up to one year to reinstate the case if there’s a violation to the agreement, the source reported.

Based in Barrington, Ill., LSC specializes in industrial parks, office complexes and self-storage facilities. It also owns and leases nearly 700,000 square feet of industrial and office space in Aurora, Barrington, Chicago, Elgin, Harwood Heights and Libertyville, Ill., according to the company website.

Sources:

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