City hit with lawsuit over selection of Humboldt Park redevelopment

A lawsuit has been filed against outgoing Mayor Lori Lightfoot’s Invest South/West program by a developer that “unfairly” lost a bid to redevelop a vacant Pioneer Bank and the surrounding properties in Humboldt Park. 

Hispanic Housing Development alleges that the city’s selection of Park Row Development to rehab the land at 4000-4008 West North Avenue was an unjust and irresponsible act given Park Row’s lack of qualifications and the community’s overwhelming support of the plaintiff’s plan, the Chicago Tribune reported. 

The Invest South/West initiative was designed to revitalize historically neglected neighborhoods on the South and West sides. When the Department of Planning and Development stated its goals for the property in April 2021, it said it was “seeking a developer with experience in Chicago’s Humboldt Park community and/or similar communities,” the outlet reported.

Hispanic Housing Development, founded in 1975, has over 15 years of experience in Humboldt Park and has built hundreds of affordable housing units in the community, while Park Row was founded just three years ago. 

“It is not a matter for us of bitter fruit; it is a matter for us of something fair and just,” Hispanic Housing CEO Hipolito “Paul” Roldán told the outlet. “You can’t have a city the size of Chicago cheating.”

Park Row’s winning proposal included the renovation of the 50,000-square-foot Pioneer Bank into a commercial space for two nonprofits, BTEC and Arquitecto, as well as the headquarters for architecture firm and co-developer of the project JGMA. The plan, with a total cost of about $75 million, also called for the conversion of a vacant two-story building next door into a restaurant and cafe, along with affordable housing units at the adjacent parcels.

Hispanic Housing’s proposal was more aligned with the community’s hopes for the property and Alderman Roberto Maldonado’s idea that the site be used as a “Latino Cultural and Community Hub.” 

Plans included a Hispanic performing arts center and other small arts organizations, with possible additions of a business incubator for entrepreneurs, a Chicago Public Library branch and a learning center for youths and their families. The estimated cost of the project was roughly $13 million more than Park Row’s, which one member of the proposals selection committee believes was the deciding factor. 

The lawsuit hearing was scheduled for July 25, but attorneys for Hispanic Housing filed an emergency hearing, moving the court date up to April 10. 

“We are saddened and disappointed to have this claim filed against us to stop our project” Park Row co-founder Matt Mosher told the outlet.

—Quinn Donoghue