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Agreement would settle lawsuit, approve design for long vacant Liberty Theater in downtown Libertyville

An impasse involving development of the long vacant Liberty Theater in downtown Libertyville could be solved with a proposed settlement agreement between the owner and village.

The village board at 7 p.m. Tuesday will consider two items involving the local landmark at 708 N. Milwaukee Ave.

The first would settle a lawsuit brought in November by the owner, identified only as Chicago Trust, alleging that despite revisions the village improperly denied the exterior design of a proposed project.

Developers proposed to repurpose the theater for two restaurants flanked by a single-story commercial building to the north and a three-story building with apartments on the upper floors.

Built in 1937, the theater has been vacant and boarded up for more than four years. It’s considered an eyesore in a prominent location along the busy corridor. A give and take regarding its future has been ongoing nearly two years and frustrated both sides.

Because the building is in a locally designated historic district, any exterior alteration or addition visible from a public right of way requires a certificate of appropriateness or COA.

In August, the village board by a 4-3 vote rejected a motion to draft an ordinance to approve a COA, with Mayor Donna Johnson voting against to break the tie.

The settlement would end the lawsuit with no monetary considerations and with neither party admitting fault or liability.

Among the sticking points of the village denial was the ability of neighboring businesses to have access to trash and delivery services via the theater property.

The settlement calls for the theater owner to offer individual lease agreements with three neighboring businesses to use a portion of the property for delivery access and garbage collection.

Once tendered, those properties would have 30 days to accept a lease of $100 per month with annual increases of 2% or the Consumer Price Index, whichever is greater.

If the lease is not accepted in that time frame, the theater owner would have no obligation to offer a lease in the future and the village would not be allowed to reject permits relating to the development.

According to the proposed settlement, the village also “without undue condition or delay” will review and approve all permits including construction permits related to the project. Also, the village must issue a COA within two weeks of approving the settlement for the lawsuit to be dismissed.

An ordinance approving a COA and an exterior design permit is the second item for village board’s consideration Tuesday. According to that document, the owner wants to rehab the existing theater, reconfigure parking on-site and build two additional buildings.

The meeting will be at the Libertyville Civic Center, 135 W. Church St., rather than village hall to accommodate a larger expected audience for the theater and an unrelated development.

The art-deco theater on a 1.2-acre site has been substantially altered. In 2019, the village’s historic preservation commission recommended against a request from the previous longtime owner to demolish the building and the property subsequently was sold.

The Libertyville village board Tuesday will consider approvals to allow the proposed redevelopment of the Liberty Theater and property at 708 N. Milwaukee Ave. to proceed. Courtesy of village of Libertyville
  The former Liberty Theater, 708 N. Milwaukee Ave., is on the northern entry to the downtown area. Paul Valade/pvalade@dailyherald.com, 2023
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