Hundreds of vacant lots in Chicago to be sold after landlords’ bankruptcy, opening up opportunities for redevelopment

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Hundreds of vacant lots in Chicago to be sold after landlords’ bankruptcy, opening up opportunities for redevelopment

Hundreds of vacant lots in Chicago, many in South and West side neighborhoods such as Englewood and North Lawndale, have been put on the market in the largest such land ***** the city has seen in recent years. The lots, some of which were in poor condition, have been listed for ***** as part of bankruptcy proceedings involving a pair of property owners who amassed $15 million in unpaid fines on the land parcels, and who city lawyers have deemed Chicago’s “worst landowner.”

Community advocates say it’s a chance to get the properties into the hands of fresh owners who can fill the empty spaces with new homes, businesses or affordable apartments.

“It’s all up for grabs, and I think everyone in Englewood is following it,” said Felicia Slaton-Young, executive director of the Greater Englewood Chamber of Commerce. “Some of the properties are along commercial corridors, and it’s negatively impacted Englewood because these owners sat on them with no true plan of development. So, there is definitely the opportunity for revitalization.”

Buyers could also ride the wave of new investment pouring into other South and West side neighborhoods, said Steve *******, senior vice president of Hilco Real Estate Sales, the company handling the *****. Many properties sit near the new Illinois Quantum & Microelectronics Park along the lakefront at 79th Street, where the state has committed about $500 million, and which could see in the next few months up to $600 million in construction projects. Other properties are in Far South Side neighborhoods where the CTA will soon launch its $5.75 billion extension of the Red Line.

“That will open the floodgates,” ******* said. “It will bring jobs and that means more housing is needed. So, I think we can do something spectacular for the city.”

There are more than 800 lots up for *****, totaling 83 acres, including many parcels zoned for single-family homes, while other contiguous sites are big enough for apartments, retail or light industry. The lots can be purchased individually or in any larger combination. Bids will be accepted until March 7.

“There are tons of negotiations already happening and our phones are ringing off the hook,” said Christine McDermott, a Hilco vice president.

Selling off the vacant land won’t be a magic bullet that sparks development. Resources are already scarce, and unless city and state officials streamline the processes for getting businesses open, or make it easier to launch housing construction, the lots could simply switch owners but stay empty, according to small business advocates and affordable housing providers.

“It’s one thing to purchase a property, and want to open a business, but it’s another to get through all the requirements to get that business open,” said Elliot Richardson, president of the Small Business Advocacy Council. “Small businesses don’t have unlimited funds and time to navigate the process.”

Slaton-Young said a group of lots lining the 6500 block of Ashland Avenue in Englewood, including several on Hilco’s for-***** list, have been vacant for at least a decade, and she worries they will stay empty, blocking new businesses on what could be a retail district.

“We don’t want someone else to buy the land and then sit on it for another 10 years,” she said.

Many of the parcels have been empty for even longer, sometimes overgrown with weeds, infested with rats or collecting trash and discarded tires, according to a series of investigations by the Illinois Answers Project and Block Club Chicago.

City lawyers began cracking down on the owners, sisters Suzie B. Wilson, a Northbrook resident, and Swedlana Dass, who assembled the portfolio over several decades, picking up most of the properties at tax and scavenger sales. The city eventually forced the cleanup of many lots and filed multiple lawsuits against Wilson and entities she controlled. The proceeds from the bankruptcy ***** will be used to pay off the sisters’ debt.

Wilson and Dass declined to comment.

“The City’s goal is to ensure properties are maintained in a safe and secure manner and in a way that serves the community,” Chicago’s corporation counsel Mary Richardson-Lowry said in a written statement. “The Law Department identified Wilson and her entities as the worst landowners in the City, with over $15 million in unpaid fines. In late 2023, we increased enforcement efforts, leading to the bankruptcy of 21 of Wilson’s entities and the related ***** of the properties. The Law Department is similarly pursuing other repeat violators vigorously, and will continue to do so to deter this detrimental conduct.”

Richard Townsell, executive director of the Lawndale Christian Development Corp., said his group considers the bankruptcy ***** an opportunity. The nonprofit affordable housing developer focuses on the North Lawndale neighborhood on the West Side and has completed more than 600 homes around the community.

“I don’t want to get in a bidding war with someone who has deep pockets,” he said. “But there are a few lots by us that we will probably go after.”

There is a pool of 55 lots on the West Side, stretching from Chicago Avenue south to 26th Street, according to a Hilco document, including four contiguous lots on the 3100 block of Lake Street. The properties are zoned for a variety of uses including for auto shops, light manufacturing, single-family homes and two-flats, warehouses and retail.

Townsell prefers contiguous lots, as the nonprofit often partners with churches, schools and other neighborhood institutions to reconstruct whole blocks.

“We’re not going to just build a house here and another house there,” he said. “You don’t build strong communities like that.”

It’s essential to get some of the plots into the hands of those creating low-cost housing, said Bob Palmer, policy director of Housing Action Illinois. Chicago has only 32 affordable and available rental homes for every 100 extremely low-income renter households, according to the group.

“The worst-case scenario would be if some people from outside the community purchased these lots and then just sat on the property,” Palmer said. “I’m sure a lot of people will be watching to see who the buyers are.”

The Englewood and West Englewood community areas on the South Side have heavy concentrations of these for-***** vacant lots. Between Garfield Boulevard and 71st Street, Hilco lists 334 parcels, mostly zoned for residential uses, along with some commercial and light manufacturing spaces.

The two community areas combined have more than 700 acres of vacant land, nearly 20% of the total, according to 2020 statistics from the Chicago Metropolitan Agency for Planning. The combined population dropped from more than 85,000 in 2000 to 54,016 in 2020, census records show.

Slaton-Young said Hilco should reach out to local stakeholders, ensuring those most committed to launching new developments know about all potential deals.

Although Hilco’s first goal is to raise enough money to pay back the city what it’s owed and clear the current owners’ debt, it also wants to see the properties developed, ******* said. The firm is already meeting with local aldermen and many community groups, and multiple bids have been placed on some properties, which could go on to a second round.

“Our message to buyers is: March 7 is the formal deadline, but you can (put in bids) earlier,” he said. “And there are a lot of buyers that could find value in this portfolio. My hope is that this can be a good thing for everyone.”

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