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Originally Posted by Mr Downtown
As for "the recent — Reilly pulled by revoking the long standing zoning for that 18 floor hotel," it must be all about the money. Because we all know that developers are never devious; would never hire Daley & George to come up with a rather, um, creative reading of a footnote in a 40-year-old ordinance, passed when every adjoining property was still warehouses, and then try to sneak it through by getting a letter from Patty Scudiero instead of meeting with the alderman. Do you think they went that route because of their innocent faith in good government?
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A permitted use is a permitted use; its not just a footnote. The PD, a customized zoning for this site allowed for 2 buildings and a hotel was among the permitted uses. The developers went through the department of zoning to verify the underlying zoning permits the concept, and it does. The developers now have vested rights on that property. If they went to the alderman and the community first, then any community or aldermanic disapproval could lead to a downzoning. Developers in Chicago know this, and as such, a local court would agree that you had prior knowledge of a possible downzoning if you went before the community with your plans. Case in-point: The New York in Lakeview, this is why the second tower was never constructed.
If the original PD language permits the concept plan, then just like standard neighborhood zoning, submit your plans, make adjustments as required and get a building permit. Plain and simple. The developers were doing just this, but were first getting verification. Now after that plan has come to light, the "technical amendment" is proposed and moving towards approval. If this goes to court, chances are the developers will win because this could be constituted as a taking and/or a violation of the equal protection clause in the 14th amendment because this move is very cleared aimed at the Hyatt House and was done so only after the proposal became public, taking away development rights already listed in the PD and verified by the Dept of Zoning.
Now, there could be more to the story which will complicate the issue of how and what could, or is to be constructed at River Plaza. My understanding, (but I may be mistaken), is that when River Plaza went condo, the condo board was offered the opportunity to purchase the air rights over the garage, and they declined. Those air rights for the second tower (which was allowed since the creation of the PD in 1974) were sold off at some point, and thus we had the 403 N Wabash condo project from the pre-recession days and now the Hyatt House. It is also possible that the change is small enough, that the court would disagree that this move causes significant hardship to the developer, as residential and the second building would still be permitted in the PD. The technical amendment only strips the permitted hotel use language out of the ordinance.
It is not at all out of the ordinary to have Daley & George representing the developer. Every single project using a new or amended PD uses a law firm specializing in zoning to chaperone the entire process. They know the zoning ordinances and they know how to structure PD applications. They also know the basic rundown of meeting with the alderman, community meetings and so forth. They are there every step of the way.