After four years, Riverside is settling a legal complaint against the land trust that owns the Tower Apartments, 22-40 East Ave. and 25-39 Forest Ave., for a payout of $75,000 to the village.
Village trustees on April 3 approved a settlement agreement with the Chicago Title Land Trust Company, ending litigation Riverside had brought against the trust and Property Rental, Inc., the agency managing the property.
The village first filed a complaint with the Cook County courts on Feb. 10, 2021, to force the company to replace the boiler in the Tower Building after it failed on Feb. 7, 2021. A new boiler was installed on Feb. 12, 2021, and, after going out overnight and failing intermittently for several days, began working properly on Feb. 15, 2021. The event prompted residents of the building to protest publicly that week.
Village Manager Jessica Frances confirmed the settlement would end the same legal action that began with the 2021 complaint.
Frances told the Landmark Monday that Riverside’s village attorney was discussing modifications to the settlement with the opposing counsel, so the version of the agreement trustees approved may not be final. A modified agreement would return to the village board at a future meeting for approval, she said. A court date for the case is scheduled for Monday, April 28.
She said it was time for the lawsuit to begin “pretrial-related activities” or reach an “appropriate” settlement.
“The sides have been in ongoing discussions relative to settlement, and the village’s hope would be to come to a thoughtful conclusion with settlement, because, obviously, this litigation has been going on for a number of years,” she said.
Frances said Riverside did not initially seek financial compensation in the lawsuit but that quantifying the damages and village’s legal expenses is part of the settlement process. She said the $75,000 payout would be intended to cover attorney’s fees and to resolve any fines associated with code violations at the property. It would be deposited into Riverside’s general fund, where it would be made fungible for the village’s use.
According to the settlement agreement, after the boiler failed, Riverside inspectors in 2021 found further code violations at the apartments, including improper gas stove piping, the rotting and deterioration of the exterior, the roof drainage system being in disrepair, insufficient window glazing and interior water damage.
The agreement said the Tower Building’s owners have fixed the violations to Riverside’s satisfaction. In an email, Assistant Village Manager Ashley Monroe said by August 2022 they had replaced and repainted exterior wood and stucco; replaced the rear stairs; put in new switches, outlets, smoke alarms and exit signs; and installed a new steam boiler and gas burner.
Other “necessary, urgent” repairs, including to the roof, flooring and plumbing, have taken place since then, Monroe said, but despite the work done, “few of the units and common areas are yet to meet full program compliance.”
A Riverside resident who asked to remain anonymous told the Landmark he had lived in the Tower Apartments. The resident identified Riverside resident Ronald Kafka as his landlord, though Kafka has denied ownership of the Tower Apartments in the past.
“This settlement is the most significant thing the Village has accomplished for its residents in the last ten years,” the anonymous resident said in an emailed statement. “Kafka has a history of defeating the Village and the Illinois Attorney General in lawsuits, so I’m grateful the Village didn’t give up.”
According to the Cook County Assessor’s Office, taxes on the Tower Building are paid by Property Rental, Inc. Those on the nearby apartment complexes at 49 and 63 Forest Ave. are paid by Riverside Management, Inc., a separate corporate entity. Business records from the Illinois Secretary of State’s Office indicate Riverside resident Sandy Centeno is the agent for both companies.
New inspection process
Frances said she thought the quality of life for residents in the Tower Building has gone up since Riverside filed its complaint against the owners.
“They had to replace the boiler, which was done, and there were the other items that have occurred since that point in litigation. We’ve also built relationships with the different tenants within that building to ensure that, when there is an issue, to contact us, so that we can help facilitate corrections to those issues if the property manager is not being responsive,” she said. “I think that’s the bigger piece: making sure that there’s a good dialogue between village staff and those residents if they’re not getting responses from the property manager.”
She said other changes that have stemmed from the litigation included the creation of Riverside’s rental property registration and inspection program.
“For individual units, we did not go into a property unless we got a complaint, so it was very reactive and not proactive,” she said. “We hired our code enforcement officer and inspector, Frank Krupa, who goes out and does the rental registry inspections. He notes any deficiencies. So, it was a complete overhaul of how we were approaching our different multi-family rental properties.”
Frances added that Riverside has made “a lot of strides” since the complaint was first filed.
“This particular litigation was the piece that created the momentum of, how do we approach these items in a proactive manner instead of reactive, so we’re really proud of that,” she said. “Before, in the past, we weren’t getting into these units, even every 10 years. It was if someone called; if no one’s ever called, we were never in these multi-family buildings, so it has definitely been a great program and has enhanced value for tenants in different rental buildings.”
