Lawsuit still in the early stages

The Hinsdalean
December 14, 2006

By Pam Lannom

Developer Richard Gammonley hasn't given up hope of a mixed-use building at the corner of First and Garfield streets in downtown Hinsdale.

But whether he can will be decided by a judge.

Anno Domini IV, of which Gammonley’s company is a part, filed a lawsuit against the village in April seeking a court order allowing con­struction of Garfield 1 and $10 million in damages from the village, plus attorneys' 'fees.

"Between attorneys' fees and expenses and costs, the thing is over $1 million," Gammonley said.

Garfield 1 is the first of two mixed-use developments proposed for the site. Garfield 2 included a propos­al for underground parking the developer would sell to the village for $9,000 a space. The second plan was aban­doned because of "onerous" development agreements from the village and "the looming threat of litigation from outside entities," Gammonley said.

The developer then decid­ed to return to the original plans, approved in February 2004 and now referred to as Garfield 1. But the Hinsdale Zoning Board of Appeals reversed a decision by for­mer village manager Bo Proczko to extend the time the developer had to begin construction on that project and the Hinsdale Village Board upheld the ZBA rever­sal.

No building permit was issued.

The lawsuit is following two paths, said attorney Ken Florey, who is representing the village. One path is fol­lowing a more typical route, with discovery and deposi­tions and the possibility of a trial.

In that part of the case, vil­lage manager Dave Cook and a consultant have been deposed and village planner, Kristen Gundersen and Proczko will be deposed, Florey said.

The second path is an appeal of the ZBA reversal and the village board's deci­sion to uphold it. The judge will look at the record and briefs filed by both sides and make a decision.

The village has filed a motion for summary judg­ment that states the project does not comply with village code and, therefore, the rest of the suit is moot.

"If you agree with that, everything goes the village's way eventually," Florey said. "The project violates the code in nearly a dozen differ­ent aspects. We've picked the most clear ones."

Legal fees for the village totaled $83,842 from May to October, a summary of legal expenses shows. Another $1,684 was spent in fiscal year 2005-06, assistant village manager Doug Cooper said. Cook, like Florey, is confi­dent the village will prevail.

"Personally, I think we have a good case," he said.

Gammonley believes Anno Domini has the best case.

"We believe we're going to win this thing and it's going to be unfortunate for both sides in terms of the money that will be wasted," he said. "You can't just hire a bunch of expensive people to try to undo a deal. It's not the way business is done."