Cameel Halim Ramps Up Evanston Homeless Shelter Opposition

One of the largest property owners in the North Shore’s multifamily market has sued local officials for taking steps to let a homeless shelter permanently operate at a former boutique hotel, claiming the site was only supposed to serve as a short-term solution.

Cameel Halim, who owns around 4,000 apartment units as well as two properties next to Evanston’s Margarita Inn where the Connections for the Homeless operates, alleges that the city failed to follow the state supreme court’s standards for granting special use requests by approving rezoning of the site, Evanston Now reported.

Halim also sued the city earlier this year, when Evanston held a meeting that decided whether to allow the site to continue functioning as a homeless shelter, despite Halim’s request to delay the hearing. He claimed his rights as a property owner were denied because local law requires Evanston’s land use committee to grant requests to delay a hearing from real estate owners within 500 feet of a property. Halim ultimately won that lawsuit, negating the final step of the approval process.

With his latest lawsuit filed in Cook County court last month, Halim escalated his fight against the city even as he recently gained city permission to convert a downtown vacant assisted living facility into a 67-unit extended stay hotel. He bought the property in 2017 for $25 million, and had past redevelopment proposals for the asset stymied, before city officials in May granted approval for the extended stay hotel plan, according to local news reports.

His latest lawsuit concerning the nearby homeless shelter, however, alleges Evanston failed to consider the existing uses and zoning of nearby properties. By approving the zoning change, his properties’ value and the suitability of their permitted use has been diminished, he claims.

He also alleges that two council members had conflicts of interests in the matter and should have recused themselves from the vote. The special use ordinance would have lacked the five votes required for approval if they had done so.

In 2020, the Connections for the Homeless was permitted to use the Margarita Inn under an emergency agreement with the city, originally as a temporary solution in light of the pandemic. The former boutique hotel has a capacity of roughly 70 residents.

A hearing regarding the recent lawsuit has been scheduled for Oct. 12.

— Quinn Donoghue