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Restaurant Land Sale Raises Future Use Questions

CHICAGO-Approving a land write-down worth $155,000 should pave the way for a $1.1-million pancake house in an underserved South Shore neighborhood. But community development commission members wonder how they can ensure the reduced sales price will buy a long-term restaurant.

By Mark Ruda | Updated on November 13, 2002

CHICAGO-A South Shore neighborhood that has gone without a new sit-down restaurant for 15 years will be getting one next year. A 6,700-sf pancake house will be built at 2204-24 E. 71st St. after the city sells a 25,293-sf parcel to Shoreland Development LLC for $75,000, nearly 70% less than its appraised value.

Although an entity that involves the developers of the $1.1-million project are signing a 15-year lease to operate a restaurant with an option for another 15 years, members of the community development commission questioned whether that was sufficient to warrant a land write-down from its $230,000 appraised value.

While the redevelopment agreement with Shoreland Development LLC will specify plans to build the 150-seat restaurant at the corner of 71st Street and Paxton Avenue, there is no guarantee the business will continue to be operated there in the future, community development commission members noted. A city law department attorney also told them Tuesday a restriction written into the land deal would be “problematic.”

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