CONDO NIGHTMARE IN SAUGANASH NEIGHBORHOOD - CHICAGO'S NORTHWEST SIDE
WATER LEAKS, DEFECTIVE WINDOWS, IMPROPERLY INSTALLED FLOORS, BAD GARBAGE CHUTE, CO-MINGLED UTILITIES HEAD THE LIST!
If you've ever invested in a condominium that is part of a new development, you know that every new building has annoying "punch list" items, both in individual units and in the common areas, that need to be corrected after units sell and close. Common problems include dripping faucets, missing or torn carpet, landscaping not yet installed, and paint touch ups.
For the residents of the new Sauganash Place Condominiums, at the corner of Cicero and Peterson Avenues, in the Sauganash Neighborhood on the Northwest Side of Chicago, the problems inherent in their new construction condominium building are far worse. They are being exasperated by the fact that the developer, Brook-Ridge Development, became financially insolvent earlier in 2007. The primary lender of the project, Lakeside Bank of Chicago, began foreclosure proceedings against the developer last July. A planned Second Phase of the project - an additional 75 condo units in a separate building just north of the current structure, was postponed indefinitely.
According to South Sauganash Place Condominium Association President, Bathsheba Birman, calls to the developer to make repairs have been ignored for months, their new-owner warranties are worthless, and the association has had to pass several Special Assessments to fund repairs themselves.
Aside from shoddy workmanship marking the majority of the condo units, which originally sold for between $350,000 and $550,000, a defective wiring and gas line installation co-mingled residential utilities for the common areas of the 61 condominium units with those of a new, 40,000 square foot Whole Foods Food Market on the buildings first floor. Indeed, many utility expenses for the food store have been showing up on the Condo Association's monthly bills.
Alderman Margaret Laurino, who represents Chicago's 39th Ward, whose boundaries include Sauganash Place, is attempting to work with the lender to address repair issues, but the process in moving slowly.
The development was built on the site of a former gas station, motel, and car wash, and the land is part of Tax Increment Funding (TIF) District in Chicago, making the developers eligible for $10,000,000 in construction funding upon completion of the project. No TIF funds were paid to Brook-Ridge, according to Laurino, since the project was never completed. Further, $30,000 of the TIF grant was earmarked for improvements to the streetscape surrounding the building. These funds were frozen as well, and planned streetscape enhancements were not competed.
The troubles involving the Sauganash Place Condominium Project comes on the heels of another failed Sauganash development project - Sauganash Glen. This separate project for 35 single family homes was halted after demolition of the former Skil Corporate Headquarters at 4300 W. Peterson Avenue. That project's developer, Rezmar Corporation, has been the subject of foreclosure proceedings since 2005.
Review the full story of the Sauganash Place Troubles in the December 20th edition of the Edgebrook-Sauganash Times Review, in an article written by reporter Alan Schmidt. Click here for a separate Times Review article on Alderman Laurino's comments.
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