Village Of Lincolnwood Seeks New Developer For Purple Hotel Site
The unlucky tale of Lincolnwood's Purple Hotel just got sadder. The village is suing the site's owner, demanding it show proof that it's moving forward with a long-stalled redevelopment of the site or step aside and let the village find a new developer that can.
The Purple Hotel site has been fenced off and vacant since North Capital bought it for $8.3M in 2012, out of bankruptcy, and demolished the structure. North Capital originally proposed a $135M mixed-use redevelopment before it agreed to sell the site to Cleveland-based Stark Enterprises in a $174M deal last year.
Here's where things get interesting. Lincolnwood officials demanded that North Capital bring the site up to code and extended deadlines for the firm to do so three times. When North Capital failed to meet a May 17 deadline to show proof of a $117M construction loan, the village filed its suit in Cook County Circuit Court, Crain's reports.
North Capital's troubles don't end there. Rompsen Investment filed an $11.5M foreclosure suit that could throw a wrench in any potential sale. The Purple Hotel's final years were a sordid tale of crime and disrepair, but its distinctive color and architecture made it a favorite subject of urban explorers and photography buffs. [Crain's]
