Jake Weiss, owner of North Capital Group, LLC, agreed to some strict terms with the Village of Lincolnwood after purchasing the Purple Hotel and adjoining properties for $8.3 million at an auction in June.
About three months later, however, the Economic Development Commission (EDC) is concerned with several milestones or agreements made between Weiss and the village.
Things became heated during a board meeting between the EDC and Weiss on Sept. 13. Among the concerns by the EDC was marketing material it received from North Capital Group that stated the redevelopment would have 18,700 square-feet of retail space, which is less than half of the 40,000 square-feet Weiss promised to deliver. There also were two other issues regarding the overall construction of the building as well.
Information regarding the dispute found on the village’s website (and in this story via PDF) reads:
“While formal plans have yet to be submitted to the Village, members of the Economic Development Commission have received current marketing material for the site which raises concerns whether the retail element promised for the project is now being significantly diminished.
A concept site plan now being utilized to market the property, for instance, now identifies only 18,700 square feet for retail space in this development. Further, this new concept site plan being used to market the site, also replaces a multi‐story rotunda‐style building that was prominently shown on the cover of previous material provided the Village, with a single story 2,400 square foot drive‐thru facility at the very apex of Lincoln and Touhy. And to the west of the hotel building, the previously shown 40,000 square foot free‐standing retail building, is now shown in more recent marketing material, as only 10,000 square feet of retail.”
While no resolution was agreed upon at the end of the meeting, Weiss signed a tough agreement with Lincolnwood. Village officials can demolish the structure at 4500 Touhy Ave. if certain milestones or initiatives are not met.
Among those include an agreement to build new, 40,000-square-foot space for retail, a 275 room "boutique" hotel, 75,000 square-foot banquet hall with retail, roof garden and fitness center, among other things. North Capital must also provide security from dusk till dawn and board up all windows on the ground level. Also included in the agreement between North Capital and Lincolnwood is the stipulation that all expenses will be paid for by North Capital, with zero funding coming from the village.
To read our previous coverage on the Purple Hotel, click here.
The next EDC meeting is Oct. 24.