Morton Grove approves $275,000 settlement with P and P Properties, sets deadline for remaining work
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Summary
Trustees approved a settlement with developer P and P Properties requiring a $275,000 payment on first sale, a Feb. 15, 2026 deadline to finish a two‑unit duplex, and mutual release of claims tied to a 2022 TIF development agreement.
The Morton Grove Village Board on Jan. 27 approved a settlement resolving claims under a 2022 economic incentive and tax‑increment financing development agreement with P and P Properties LLC.
Village administrators told trustees the developer failed to meet contract timeline obligations and the village declared default in November 2025; the parties negotiated a comprehensive settlement to avoid protracted litigation. Under the agreement read into the record, the developer will pay the village $275,000 upon the first sale of a townhome in the development, will complete construction of a two‑unit duplex by Feb. 15, 2026, and will waive all claims against the village related to the agreement. In return, the village will forgive a note from the developer, release its mortgage on the property and waive its claims against the developer.
The settlement covers a development originally approved in July 2022 that included a 10‑unit townhome component and a two‑unit duplex on properties identified in the record. Village staff said certificates of occupancy had already been issued for the 10 townhomes; the settlement sets obligations for the remaining duplex and the financial payment tied to the first sale.
Trustees moved and seconded the resolution and recorded affirmative votes. Village officials said the settlement intends to avoid costly litigation while securing completion and a monetary remedy for the village.
