From sweet to sour: Ownership dispute over shuttered Sugar Factory in Rosemont

It’s not often that municipal government meetings in Rosemont last very long, air many grievances, or involve much substantive discussion.

But those at village hall late Monday afternoon were in for a treat when rival ownership groups of the shuttered Sugar Factory restaurant brought their dispute to a public zoning board of appeals meeting.

Testy verbal exchanges among the owners and board members began practically at the start of the hourlong session, and spilled over to the parking lot after adjournment.

Seated in the front row was Kevin Killerman, a partner in the local dessert-focused restaurant/bar/candy store, but also the building owner that declined to extend the franchise’s lease in the Parkway Bank Park entertainment district.

Behind him were former business associates Vincent D. Rizzo and son Vincent M. Rizzo IV, who want to extend the lease of the 7,000-square-foot upscale candy shop at 5445 Park Place.

Killerman sued the Rizzos for misappropriation of funds and breach of fiduciary duty; the Rizzos sued him for the same.

The Sugar Factory franchisor sued everyone for not paying fees to continue to use the restaurant name and branding.

Those matters are now before an arbitrator in Florida.

Killerman also has a breach of lease eviction pending in Cook County court.

The municipal hearing Monday was to consider revocation of a special use permit originally granted to operate the restaurant in 2014. Killerman consented to that — and surrendered his liquor license and business license — after the eatery shut its doors in March.

“There was no more money,” he said. “It was a financial decision.”

But the Rizzos want to reopen. They argue that their corporate opportunities to purchase the property were usurped.

“Things were done above and beyond,” the elder Rizzo said. “I am 50% ownership and negated of all ownership opportunities.”

After the younger Rizzo began speaking to Killerman at the start of proceedings, Killerman attorney Gene Murphy asked zoning board Chair Ron Holtman and Village Attorney John Donahue to intervene.

“Counsel, can you admonish the witness to not harass my client while we’re in this hearing?” Murphy said. “No one should be talking.”

The Rizzos moved to the other side of the room.

Later, board member Christopher Stephens — the executive director of the Donald E. Stephens Convention Center — accused Rizzo IV of being “passive aggressive” and “not respectful.”

The tense exchange continued into the parking lot after the meeting.

Litigation between the ownership group aside, Holtman said the zoning board would likely revoke its earlier approvals for the restaurant.

“My board’s issue is the continuance of your special use permit, and I don’t see a reason why I can’t have a vote,” Holtman said. “Because I don’t see that there was a lease. The lease wasn’t continued.”

The panel will formally render its decision Sept. 8.