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Former bar owner dies, ending lawsuit against Elgin

A federal lawsuit against the city of Elgin and the developers of the Tower Building ended after a downtown bar owner died.

Marco Muscarello, the owner of the former Gasthaus Zur Linde at 15 N. Grove Ave., died in January at age 77 after fighting a long battle with pancreatic cancer. After his death, his attorneys were granted a motion for voluntary dismissal of the federal lawsuit Muscarello, as North Grove Street Properties, filed in December 2015, court documents show.

Muscarello claimed the city retaliated and conspired against him and his son, Charles Muscarello, an attorney in St. Charles, for speaking against a plan to redevelop the Tower Building. Parts of that lawsuit were dismissed in September.

"We decided not to proceed," Charles Muscarello said, declining to elaborate.

Marco Muscarello had practiced as an attorney and CPA. He semiretired in 2001 and spent a lot of time in Arizona. He is survived by his wife Patricia and four children.

"My family lived (in Elgin) for a long time and my dad practiced in Elgin for a long time," Charles Muscarello said. "He felt he was always standing up for the people that had difficulty standing up for themselves ... He was not afraid to stand up for what he felt was right."

Marco Muscarello also had filed a lawsuit in early 2015 in Kane County alleging spot zoning in the redevelopment of the Tower Building. He tried to appeal its dismissal to Illinois Supreme Court, which denied the request in November.

Elgin Mayor David Kaptain, who was named in the federal lawsuit, said he gave his condolences to the Muscarello family.

"I'm glad it's over with and we can all move on," Kaptain said.

The Tower Building is being redeveloped into 44 one- and two-bedroom apartments by Capstone Development Group of St. Louis. Developer Richard Souyoul of Chicago, who partnered with Capstone for the project, said Muscarello's lawsuits had no merit.

"The old man had a feud against the city, and he had money to spend on the lawsuits," he said. "Now he's gone."

The $16.6 million redevelopment project is moving forward, albeit slower than expected, Souyoul said. The opening date - first anticipated in April, then May - probably will be in midsummer, Souyoul said.

"When you rehab an older building, with everything you open up, sometimes you get surprises," he said. "Everything is on budget."

The Gasthaus bar closed in September 2015, after the city changed its liquor license requirements so the bar had to show at least half its revenues came from food.

The building had a "for sale" sign out front for a while, but it's not on the market, Charles Muscarello said. The family is debating what to do with it, he said.

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