Council moves toward litigation as Brookstone at Coles Park owner limits repairs to $200,000 of $7.3 million surety

City legal staff told the Judiciary Committee that the owner of Brookstone at Coles Park had reviewed the city’s punch list and indicated it would perform roughly $200,000 in repairs despite a $7,300,000 surety bond that the city expects to cover full corrective work; staff said the city has rejected that position and is moving toward litigation.

Greg (chief of staff) reported that recent code enforcement found continued unresolved deficiencies, including scaffolded concerns, a noncompliant retention pond shelf, resurfacing and deteriorated sidewalks, insufficient exterior lighting and gaps in management responsiveness. Staff said senior building residents experienced an extended outage of hot water in part of the complex that took five days to resolve after the mayor contacted the management company’s out-of-state office.

The city’s legal counsel informed the committee that the property owner and the related surety had responded to the list of required repairs by indicating they would complete a limited portion of the work (approximately $200,000) and decline responsibility beyond that amount. The city replied that the offer was “absurd” and directed staff to begin litigation seeking recovery from the surety and to pursue available code enforcement fines.

Committee members discussed enforcement mechanisms that could increase immediate pressure on the owner, including daily fines ordered by the hearing officer (committee staff noted a hearing-officer penalty of $500 per day for noncompliance dating from an earlier order), a $29,100 outstanding landlord-licensing fine for failure to comply, and pursuing claims directly against the surety bond through the courts. Staff said the company representing the surety has been slow to respond, which could lengthen the process.

Staff reminded committee members of an upcoming status hearing scheduled for Feb. 13 to review whether Brookstone has implemented safety enhancements required by the adjudicator’s order. Those items include private weekend security, expanded management office hours, added exterior lighting and housekeeping measures. Staff said that if Brookstone fails to implement those measures the city will exercise fines and other enforcement steps outlined in the adjudicator’s order.

Staff also said they would follow up with state and county housing partners: the Illinois housing authority and Lake County housing stakeholders have expressed concern and encouraged the city to pursue the surety. Committee members urged staff to prioritize actions that create immediate financial consequences for the owner if ordered conditions are unmet.