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Posted on: April 13, 2017

Village reaches potential settlement with Buckeye

The Village of Tinley Park and Buckeye Community Hope Foundation have reached a potential settlement agreement to resolve litigation regarding the 47-unit multifamily residential building known as “The Reserve” that was proposed to be built by Buckeye at the northeast corner of 183rd Street and Oak Park Avenue.

The Village and Buckeye were at odds over whether the Reserve needed to be built with street-level commercial units. The Village contended that street-level commercial units were required due to zoning restrictions in Downtown Tinley. Buckeye argued it was entitled to build the Reserve without street-level commercial, as proposed in its application to the Village, and that applying the street-level commercial requirement to the Reserve was discriminatory against affordable housing.

As part of the settlement, Buckeye will no longer seek to build its proposed development and will dismiss its lawsuit against the Village. The Village will pay Buckeye $75,392 from the Village’s General Fund, with an additional $684,608 being paid from a legal settlement fund held on behalf of the Village by the Intergovernmental Risk Management Association (IRMA), the Village’s insurer. IRMA will make an additional payment to Buckeye out of IRMA’s own fund in the amount of $1,690,000, for a total settlement of $2.45 million.

“Litigation costs associated with defending the lawsuit were escalating quickly, with the price of defending the lawsuit through trial likely being greater than the settlement amount being paid by the Village now,” Village Manager Dave Niemeyer said.

The Village Board will vote on the potential settlement agreement at its April 18 meeting, which will take place at 7:30 p.m. in the council chambers at Tinley Park Village Hall, 16250 S. Oak Park Ave.

The U.S. Department of Justice’s lawsuit, which is separate from the Buckeye lawsuit, is still ongoing and alleges the Village violated the Fair Housing Act through its actions with respect to the Reserve. The Village vehemently denies the allegations in the U.S. Department of Justice suit and is awaiting a ruling on its motion to dismiss that lawsuit.
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