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‘We’re just trying to figure out what comes next’: Affordable housing proposal withdrawn in Lake Zurich

Project called for annexation and rezoning for a two-story, 24-unit building

A controversial proposal to annex and rezone property for an affordable rental housing project in Lake Zurich has been withdrawn.

Residents near Midlothian Road and North Lakewood Lane were mobilized in opposition with as many as 75 people expected to attend Monday’s village board meeting regarding the application by Housing Opportunity Development Corporation.

The situation became moot after Mayor Tom Poynton informed organizers the nonprofit had withdrawn rather than ask for a continuance.

“We think it just wasn't the right place for that kind of building,” said Larry Schaedel, who has been speaking on behalf of homeowners.

  Housing Opportunity Development Corporation has withdrawn plans to annex this property at the southwest corner of Midlothian Road and North Lakewood Lane to Lake Zurich. The plan was to raze the building and replace it with a 24-unit affordable apartment building. Joe Lewnard/jlewnard@dailyherald.com

“There's no public transportation. That was a big thing,” Schaedel added. “This was going to be a massive building on a street in an area that’s all houses.”

In a letter, Schaedel thanked Poynton and the village board for considering the homeowners’ positions and input even though some of the points raised were “contentious at times.”

The village's advisory planning and zoning commission had recommended approval by a 3-2 vote.

  The future of this property at the southwest corner of Midlothian Road and North Lakewood Lane is unknown after a plan to annex it to Lake Zurich and build an affordable housing rental building was withdrawn. Joe Lewnard/jlewnard@dailyherald.com

Opponents planned to introduce petitions from enough surrounding property owners to trigger a requirement for a super majority of village board votes for approval.

“I think it’s completely withdrawn and off the table for now,” Schaedel said.

Richard Koenig, executive director of the Skokie-based organization, declined to say whether neighborhood opposition figured into the decision.

“We've withdrawn the application at this time,” he said. “We’re just trying to figure out what comes next.”

Whether that means abandoning the idea in that location or pursuing approvals in Lake County’s jurisdiction have not been determined.

“We've got about five other real estate projects in the Chicago area” in the pipeline, according to Koenig. “We’re just trying to figure out the right path for us.”

The nonprofit wanted to annex 2.6 acres at the southwest corner of the intersection and have it zoned for multifamily residential.

The plan was to buy the existing building from the Lake County Housing Authority, raze it and build a two-story, 24-unit building with rents affordable to households earning between $20,000 and $40,000 per year.

  The future of this 2.6-acre property at the southwest corner of Midlothian Road and North Lakewood Lane is up in the air after a plan to annex it to Lake Zurich and build an affordable housing rental building was withdrawn. Joe Lewnard/jlewnard@dailyherald.com

The property is known as Midlothian Manor for a previous use that operated there but closed in 2010. In 2014, neighbors opposed the property being considered for housing the homeless and the plan didn't materialize.

Meanwhile, the Lake County Board on Tuesday will consider a recommendation to reallocate the remaining federal emergency rental funding for two affordable housing projects: $801,771 for HDOC’s Midlothian Manor proposal and $400,000 toward a senior apartment facility in Lake Villa.

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