Elgin files lawsuit over stalled senior living facility

Elgin has filed a lawsuit seeking repair or demolition of the unfinished Bright Oaks Group senior housing project that stands partially built near the intersection of Route 20 and Nesler Road.

Elgin filed a lawsuit last last month in Kane County seeking repair or demolition of the unfinished Bright Oaks Group senior housing project that stands partially built near the intersection of Route 20 and Nesler Road.

"The case was assigned to Judge David Akemann and has been set for an initial case management conference on Jan. 5," Elgin Community Development Director Marc Mylott said. "Once the owner has been served and has answered, or the time to answer has expired, the city will present an appropriate motion to bring the case before Judge Akemann on an earlier date."

Bright Oaks Group CEO Nader Kameli said he was not aware Elgin had filed the case, but was not surprised the city had done so.

"The Elgin Memory Care project is alive and shall be. We have groups of investors that have come forward to take over the project, bring the needed financing, and get it completed," Kameli said. "They are in the final stages of their due diligence. I anticipate that we will have all the financing in place to get this project restarted before the end of the year."

Kameli said Elgin had not reached out to Bright Oaks for an update on the project and had filed this case prematurely.

"We are ready and willing to fight this case in court should it become necessary," Kameli said.

Senior housing project
Elgin has filed a lawsuit seeking repair or demolition of the unfinished Bright Oaks Group senior housing project that stands partially built near the intersection of Route 20 and Nesler Road. (Mike Danahey/Courier-News)
According to the lawsuit, on March 24, the owner submitted an application for a new building permit for the facility. On April 9, Elgin issued a plan review corrections report, setting forth additional information and revisions that were required with respect to the building permit application.

In the lawsuit, Elgin claims the owner failed to provide the additional information or perform the revisions with respect to its March building permit application. The lawsuit states that Elgin believes no work has been done at the facility since at least Dec 21, 2016.

Elgin's lawsuit notes four businesses have liens on the Elgin project. The lawsuit also asks the court to impose $750-per-day fines for the site violating Elgin municipal codes related to health and safety standard.

Mylott said the city has been following procedures set forth in the Illinois Demolition Act to address issues with the project. In July, the city sent the developer a notice giving 15 days to repair of demolish what has been built. Since nothing appears to have been done, the city turned to the courts, Mylott said.

Federal lawsuit another wrinkle in stalled Elgin senior housing project
The project was approved by the city in 2014. According to the Bright Oaks Group website, the Elgin facility is to hold 56 suites for assisted independent living and 25 suites for memory care living.

According to the lawsuit, the initial building permit for the facility was issued in August 2015 and expired on April 27, 2016. In June 2016, a building permit extension was approved and issued, with the extension expiring Dec. 21, the lawsuit said. With construction substantially uncompleted, on Dec. 22, the city's building official issued a demolition order that claimed that in addition to being far from finished, "building material being stored thereon presented risk of complete or partial collapse, constituted fire hazard, and was dangerous to human life and the public welfare."

The owner appealed the order on Jan. 20, the lawsuit states. That led to the March hearing and the ensuing lawsuit.

http://www.chicagotribune.com/suburbs/elgin-courier-news/news/ct-ecn-elgin-senior-housing-st-1015-20171014-story.html

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• Elgin Memory Care, LLC

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• Illinois