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Industrial Nat'l Mortgage Co. v. City of Chicago

OPINION FILED APRIL 20, 1981.

INDUSTRIAL NATIONAL MORTGAGE CO. ET AL., PLAINTIFFS-APPELLEES,

v.

THE CITY OF CHICAGO ET AL., DEFENDANTS-APPELLANTS.



APPEAL from the Circuit Court of Cook County; the Hon. WARREN D. WOLFSON, Judge, presiding.

MR. JUSTICE O'CONNOR DELIVERED THE OPINION OF THE COURT:

Defendants, the City of Chicago (the City), Joseph Fitzgerald, commissioner of the Department of Buildings of the City of Chicago (the Commissioner), and Harry L. Manley, zoning administrator of the City of Chicago, appeal from the ruling of the trial court which permanently enjoined defendants from enforcing against plaintiffs, Industrial National Mortgage Co. (Industrial), University Square, Ltd. (University), and Chicago Title and Trust Co. (Chicago Title), a 1979 zoning ordinance which rezoned 25 acres of land located at 101st Street and Crawford Avenue (Pulaski Road) from "Residential Planned Development No. 91" to "R-2 Single Family Residence."

At trial, the parties stipulated to the following facts:

On November 20, 1972, the City adopted a zoning ordinance which zoned a tract of 25 acres at 101st Street and Crawford Avenue (Pulaski Road) as Residential Planned Development No. 91. This case involves only the north 12 1/2 acres, which will be referred to as "the premises." The remaining portion of the tract will be referred to as "the south parcel." At the time the 25 acres was zoned as Residential Planned Development No. 91, all 25 acres were owned and controlled by the Sisters of Mercy of the Union in the United States and were under contract for purchase by Ornoff Associates, Inc.

After the 1972 zoning ordinance was passed, the premises were purchased by ITI-University Square, Ltd. The south parcel was purchased by ITI-Realty and Funding Corporation. These two corporations were related and were controlled by the same persons.

On April 13, 1973, plaintiff Industrial loaned to ITI-University Square, Ltd., $2,100,000 for the purchase and development of the premises and for the construction on the premises of Residential Planned Development No. 91.

On October 3, 1973, the premises were conveyed from ITI-University Square, Ltd., to Chicago Title, as trustee under trust No. 63107. The beneficiary of trust No. 63107 was ITI-University Square, Ltd. Subsequent to October 3, 1973, the south parcel was conveyed by ITI-Realty and Funding Corporation to Chicago Title, as trustee under trust No. 64775. The beneficiary of trust No. 64775 was ITI-Realty and Funding Corporation.

On December 30, 1974, the loan to ITI-University Square, Ltd., was refinanced for $1,729,000 by plaintiff Industrial. This $1,729,000 was to be used for the development and construction on the premises of Residential Planned Development No. 91.

In 1975, ITI-University Square, Ltd., defaulted on the loan from plaintiff Industrial. In September 1975, Industrial instituted a foreclosure proceeding on the premises. A decree of foreclosure was entered July 6, 1976, which stated that $1,416,326.57 was due plaintiff Industrial. This amount included the principal balance and accrued interest on the loan as of June 1, 1976, costs of the suit and attorneys' fees.

Industrial was the purchaser of the premises at the foreclosure sale. After the decree of foreclosure was entered, the premises were conveyed by plaintiff Industrial to Chicago Title, as trustee under trust No. 1068577. The beneficiary of trust No. 1068577 is Industrial.

During the pendency of the foreclosure action, on January 26, 1976, Chicago Title, as trustee of trusts Nos. 63107 and 64775, and in reliance upon Residential Planned Development No. 91 Ordinance, entered into an agreement with Cook County, Illinois. Under this agreement, the beneficiary of each trust was to pay $126,750 to Cook County for the construction of (1) an oversized combination sewer between 102d Street and 107th Street along Crawford Avenue (Pulaski Road), (2) storm sewer connections from the beneficiaries' property, and (3) an extra median to accommodate a future left-turn lane into the beneficiaries' property. These improvements were necessary to develop and construct Residential Planned Development No. 91 on the premises. The money was paid to Cook County by ITI-University Square, Ltd., and ITI-Realty and Funding Corporation, the beneficiaries of the trusts, and the construction was completed. The oversized sewer and the extra median were constructed because of the proposed construction of Residential Planned Development No. 91.

On September 26, 1977, Chicago Title, as trustee under trust No. 1068577, entered into an agreement with LaSalle National Bank, as trustee under trust No. 53025, for the sale of the premises. The beneficiary of LaSalle National Bank trust No. 53025 is plaintiff University.

On November 2, 1977, University submitted development plans (Part II Submittal) to the Chicago Department of Development and Planning (the Department) for the development of its portion of Residential Planned Development No. 91. On November 9, 1977, these plans were approved by the Department.

On February 8, 1978, University applied for building permits for the erection of three of 25 three-story apartment buildings on the premises pursuant to the plans approved on November ...


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