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Village staff says legal talks continue to try to resolve stalled 4930 Oakton project
Summary
Corporation counsel and outside counsel reported ongoing negotiations with lender and contractor to resolve litigation tied to the stalled 4930 Oakton property; arbitration scheduling pushed a comprehensive arbitration to September 2026, prompting the village to seek alternative paths to move the site forward without taking on undue financial risk.
Village legal staff and outside counsel updated trustees on the litigation surrounding the partially built structure at 4930 Oakton Street, which remains stalled and visible as an eyesore.
Rodney Lewis of Polsinelli told trustees the village moved to dismiss itself as a defendant in the underlying litigation to reduce legal spending and has monitored developments. An arbitration panel issued a narrow ruling granting priority to the general contractor over the lender on certain claims, but the arbitration the parties set to determine an overall path forward is not scheduled until September 2026. Lewis described that date as "untenable" and said the village is exploring constructive alternatives.
The village has met with lender Excalibur and the general contractor; Lewis said the parties are exploring proposals that would incentivize cooperation (including title transfers and consent foreclosures) so a developer could move the project forward without the village assuming financial burdens. Rodney Tonelli, the village’s economic vitality manager, said lender claims were near $9.7 million when a foreclosure was filed earlier in 2025.
Trustees pressed staff on liability and safety concerns; counsel said the village is not the liable party for structural risk and that Excalibur and the ownership entity E and M remain focal points for resolution. Staff said the village performs annual structural assessments with the lender and will continue regular public reporting on the site’s status.
