Aldermanic Privilege Delays Chicago Multifamily Redevelopment

Plans to redevelop Portage Park’s Peoples Gas building have hit another road block despite the developer settling a union labor agreement concerning the $110 million project.

Transforming the building at 3955 North Kilpatrick Avenue into 346 market-rate apartments and at least a dozen retail stores has taken much longer than developer GW Properties had planned, a problem amplified by another delay in approval from City Council, Block Club reported.

The Chicago Plan Commission approved a zoning change for the development in March, moving it to the City Council’s Committee on Zoning for further review. However, the project has been deferred from that committee’s agenda six times since April, delaying the approval needed from the full City Council to start construction.

With the City Council on summer recess, the item is on hold at least until Sept. 18.

“We’re just waiting for the powers to be to let this move forward,” said developer Mitch Goltz.

The delays were the result of a deadlock between Goltz, 45th Ward Alderman James Gardiner, and labor unions, with Gardiner requesting a labor agreement be attached to the project.

Although Goltz signed the labor agreement on July 15, the project was deferred again at the Zoning Committee meeting the next day.

“There’s nothing more we can do at this point,” Goltz said.

He isn’t the only one frustrated by the delays.

“We are frustrated. We want the project to be built,” said Amie Zander, managing director of the Six Corners Association.

Goltz had hoped to start construction over the summer but with the timeline delayed, it is unclear when construction will finally begin. The retail portion is expected to take seven to nine months to complete with the residential portion taking 12-18 months, he said.

As part of the redevelopment and in accordance with the city ordinance, GW Properties will offer 69 affordable units at the site. The retail area will include fast-casual restaurants and shops.

— Andrew Terrell