Winnetka, Ishbia Land Swap Lawsuit Dismissed by Judge

A Cook County judge dismissed the lawsuit sparked by a proposed land swap between billionaire Justin Ishbia and the Winnetka Park District.

The lawsuit, filed in October 2022 by Winnetka resident and Sears’ former CFO Robert Schriesheim, alleged that the land swap would have violated the state’s park district code and its public trust doctrine.

Now, Ishbia’s vision for a $44 million mansion in the ritzy North Shore suburb is closer to becoming reality, as Judge Eve Reilly ruled that the park agency complied with district code and that the value of the land that Ishbia would trade away is greater than the property he would gain, the Chicago Tribune reported.

Ishbia, a private equity executive and co-owner of the Phoenix Suns, has been negotiating with the village’s park district to swap the mansion he bought at 261 Sheridan Road — one of four lakefront homes he’s purchased in the village since 2020, with plans to raze three of them to make way for an epic 68,300-square-foot estate.

The 261 Sheridan property separates Elder Lane Park and Centennial Park. Ishbia’s plan entails exchanging this property and its adjacent land with the Winnetka Park District in return for a similarly sized parcel at the south end of Centennial Park, allowing him to expand his homesite.

The proposed land swap would fulfill the park district’s goal of uniting Elder Lane Park and Centennial Park. Initially, the proposal faced pushback due to Ishbia’s plan to separate his property from the park with a louvered steel wall. While he later agreed to remove the louvers, community resistance and objections from some park district board members has continued to delay the land swap.

Schriesheim’s lawsuit argued that only the Illinois General Assembly had the authority to trade away parkland under state law governing park districts. In addition to concluding that the swap doesn’t violate district code, Judge Reilly also disputed Schriesheim’s claim that the park district lacked the authority to dispose of public trust land.

Winnetka Park District President Christina Codo expressed satisfaction with the court’s decision, emphasizing the district’s commitment to the community’s best interests and lakefront improvement plans. John Peterson, the park district’s executive director, hailed the ruling as a step toward creating an eight-acre park with uninterrupted lakefront property for public use, aligning with the Winnetka Waterfront 2030 Lakefront Master Plan, the newspaper reported.

Schriesheim and his attorney intend to amend their lawsuit. The case will have its next status hearing on Nov. 1, while discussions proceed regarding a proposed $3 million donation by Ishbia to help rebuild Elder Lane and Centennial beaches.

— Quinn Donoghue