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6917 N. Western Ave.

Update 11/15/2009: Siddiqi and Ghani default on $3.3 million mortgage
Mohammed Siddiqi and Dr. Mohammed Ghani have defaulted on their mortgage loan for the property at 6917 N. Western Avenue. The lender has not moved to foreclose on the property, but it has obtained a $3,283,580 judgment of personal liability against Siddiqi and Ghani. While it always seemed unlikely that the proposed senior housing development would actually be built, it is now inconceivable that the project could go forward.

The original loan was made by National Bank of Commerce, Berkeley, IL, which later failed and was taken over by Republic Bank of Chicago. Republic Bank filed its complaint against Siddiqi and Ghani on September 8, 2009, and judgment was entered September 17, 2009. Court documents list Siddiqi and Ghani as co-borrowers and co-beneficiaries, but do not provide any further details about their business relationship. Each is now individually liable for the entire amount owed.

Documents filed by Republic Bank prove for the first time previously denied allegations that Siddiqi was in fact the real owner of the property. The property is held in a blind trust, making it difficult to determine the actual owners. The application for a change in zoning should have identified the trust as the owner and named all beneficiaries. Dr. Ghani—supported by his attorney, James Banks, and Alderman Stone—instead represented himself as the sole owner of the property.

Update 12/16/2008: Full transcript of public hearing now available
Sylvia Mikas, an attorney with the law office of Samuel Banks, represented Dr. Ghani, the applicant, at the May 20 public hearing before the Zoning Committee. Despite two public meetings and the many modifications discussed and agreed to, Ms. Mikas did not acknowledge any change from the original proposal in describing the project to the Committee. Ms. Mikas stated that the property "will be improved with a new, seven-story mixed use building containing commercial and office space at grade, 96 elderly housing units above, and on-site parking for 33 cars."

Regarding the promised covenant, Ms. Mikas testified that, "We have worked with Alderman Stone and his community on this matter. They have asked, and our client has agreed, to enter into a restrictive covenant noting the specifics of this project. Our office is currently drafting the restricted covenant. Such covenant will be executed and recorded by the June City Council. A copy of the restrictive covenant will be provided to Alderman Stone who will publish the document on his website. If the restrictive covenant is not executed and recorded by the June City Council meeting, Alderman Stone will request that the matter be held and not ratified by City Council at that June meeting." No draft of the covenant has ever been released. Alderman Stone has not published anything on his website. However, the City Council did pass the zoning change as expected, despite a formal written protest from adjacent property owners.

One witness testified in favor of the project. Mr. Nadim Siddiqui, nephew of developer Mohammed Tariq Siddiqi, the actual owner of the property, testified that he lives "about a quarter mile from where the project is going to be built". He actually lives one full mile from the property, but probably feels closer due to his family connection. Mr. Siddiqui, who is "not that old yet", said that "once I am old, I would like to have a senior citizen rental area around where I would live, you know. So, I think it would be a good thing." Read the rest of the transcript.

Update 6/26/2008: City Council approves change despite neighbors' protest
The City Council approved this controversial change in zoning at its June 11 meeting, despite an official protest by adjacent property owners. Read neighbors' written protest.

Update 5/29/2008: Additional coverage in the News-Star newspaper
"Word spread quickly throughout the 50th Ward that a controversial zoning change had been approved by the city's Committee on Zoning on May 20, paving the way for a senior rental building to be built at 6911-15 N. Western Ave. The City Council is expected to vote on the zoning change during its June meeting."

Update 5/25/2008: Zoning Committee approves change
In a move that surprised no one, Ald. Stone wasted no time in pushing Dr. Ghani's application through committee, despite vocal opposition from neighbors. Final City Council approval is expected June 11. Local residents Hugh Devlin and Peter Levavi testified against the proposed change.

Hugh Devlin's account of the Zoning Committee hearing:
"The zoning change for 6911-25 N. Western passed committee on the strength of 5 of 16 zoning committee members (Schulter, Stone, Colon, E. Smith, Allen; Banks recused himself), no quorum (Schulter claimed there were "more Aldermen in the back", virtual aldermen I guess). To add insult to injury, the Children's Museum got deferred over concerns regarding lack of quorum, thinning the crowd, but a little ole zoning change around the corner of my home flew thru, so I'm really feeling like a 2nd class citizen today. This concludes the public process, such as it is."

Update 5/21/2008: Read David Roeder's coverage in the Sun-Times:
"Over the last two weeks, Ald. Bernard Stone (50th) twice has had angry crowds at his ward office for a meeting about a zoning deal. There were many things about the proposal for senior housing at 6917 N. Western that enraged the neighbors. It was height, number of units, parking, design. The battle had overtones from the hard-fought aldermanic election Stone survived last year."

Update 5/18/2008: Public meeting Monday, May 19, 2008, 7:30pm.
A second public meeting to discuss this proposed change in zoning has been scheduled for Monday evening. The meeting will take place at Ald. Stone's 50th Ward office at 6199 N. Lincoln in the Lincoln Village Shopping Center. Applicant Dr. Tariq Ghani and attorney Jim Banks are expected to present revised plans for the proposed senior housing building. All are urged to attend.

Update 5/14/2008: Read Lorraine Swanson's coverage in the News-Star:
"Ald. Berny Stone (50th) and his constituents hugged it out after a community meeting that veered out of control but finished on a high note after Stone agreed to further delay a hearing on a proposed zoning change at 6911-25 N. Western Ave. before the Committee on Zoning."

Update 4/27/2008: Public meeting Wednesday, May 7, 2008, 7:00pm.
Bowing to public pressure, Ald. Stone reversed has his earlier position and promised a public meeting on the proposed zoning change. The meeting will take place at Ald. Stone's 50th Ward office at 6199 N. Lincoln in the Lincoln Village Shopping Center. We are told that the attorney and property owner will be present to explain proposed plans for the property. All are urged to attend.

Meanwhile, the Zoning Committee hearing that had been scheduled for earlier this week has been deferred "at the request of the attorney" following objections regarding the lack of proper public notice.

Commentary
Just last year, the property was rezoned from C2-2 to B3-3. Now, only ten months later, we have a second application to rezone from B3-3 to B2-5. With two zoning changes in the course of one year, the property will go from an FAR (floor area ratio) of 2.2 with a maximum of 19 dwelling units to an FAR of 5.0 and the potential for 98 units. The developer would be free to build as much as an 80-foot, eight-story building.

No comparable dash-5 business or commercial zoning currently exists on Western Avenue in the 50th Ward. This project would be the only building of its type along our stretch of Western.

The stated purpose of the change is "to construct a new, seven-story, mixed-use building containing commercial/office space at grade and 96 elderly housing units above with on-site parking for 33 cars. The height of the building will be approximately 79'. The commercial office space would contain about 4,000 sq. ft."

However, this stated purpose is in no way binding on the applicant or any future owner. Unlike approval for a planned development, this change would not impose any requirement to build a particular project or to start construction by a particular date. Once the zoning change has been secured, the owner would be free to sell the property to another developer for an entirely different purpose than the one used to justify the change.

The applicant is Dr. Muhammad TK Ghani, MD, an allergist/immunologist with offices in Elgin, Westchester and Palos Heights. Dr. Ghani lists his address as 6418 N. Maplewood Ave. Although Dr. Ghani appears to own the Maplewood building, he does not live there. Tax bills for the Maplewood property are sent to his Westchester address.

The property in question is 6917 N. Western Ave., a vacant lot at the southeast corner of Morse and Western previously owned by Barry Brown. The current owner appears to be Mohammed Siddiqi, although Dr. Ghani claims to have acquired title in May 2007. The property is held in a land trust, which makes it difficult to confirm ownership and changes in ownership.

Depending on whom you believe and what you can infer from recorded documents, Siddiqi purchased the property in 2006 or 2007 with the intent of developing a mixed-use building with 36 dwelling units. Siddiqi's agreement to purchase the property was most likely contingent on getting the zoning change. He appears to have completed the deal after the zoning change was approved, but has made no progress on developing the site.

The situation looks much the same this time around. Siddiqi is hurting financially and would benefit from unloading the property. Like Siddiqi, Dr. Ghani has probably made his purchase contingent upon a second change in zoning as there is no recorded document to support his claim of ownership. It is also possible that Dr. Ghani is in partnership with Siddiqi, but failed to disclose the joint or multiple owners.

Description
Mr. Tariq Ghani, in care of Mr. James J. Banks -- to classify as a B2-5 Neighborhood Mixed-Use District instead of a B3-3 Community Shopping District the area shown on Map Number 17-H bounded by: West Morse Avenue; the alley next east of and parallel to North Western Avenue; a line 182 feet south of and parallel to West Morse Avenue; and North Western Avenue.