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13-11-010 Findings.
13-11-020 Definitions.
13-11-030 Vacant Category A building – Notice to commissioner required – Posting of security when.
13-11-040 Transfer of Category A property – Notice to commissioner required when – Posting of security when.
13-11-050 Large building transfer review committee – Created – Recommendation to commissioner.
13-11-060 Security – Authority of city to receive proceeds – Relinquished when.
13-11-070 Appeal.
13-11-080 Confidentiality of document.
13-11-090 Violation – Penalties – Liability.
The city council of the City of Chicago finds, after due investigation:
(1) That some owners of large commercial, industrial and residential buildings which are or are about to become vacant, in order to avoid the costs of repairing, enclosing or demolishing such buildings, transfer title to not-for-profit organizations or other entities, or sell the structures for less than their appraised value to persons without the financial resources to maintain, repair or demolish such buildings; and
(2) That in such instances the buildings deteriorate and become public nuisances, threats to public safety and welfare and causes of neighborhood deterioration; and
(3) That the costs of enclosing and demolishing such buildings often become, by default, the responsibility of the city, causing taxpayers to bear the costs of remedial action. Accordingly, it is the purpose of this chapter to assure that owners of such buildings cannot evade their legal responsibilities by transferring title to persons who do not have the resources to maintain or demolish such buildings.
(Added Coun. J. 3-26-93, p. 30292)
When used in this chapter, unless the context requires otherwise:
“Category A building” shall mean any structure having, by itself or when combined with all other structures on the parcel of property, an enclosed area of over 500,000 cubic feet, that is primarily devoted to institutional, assembly, business, manufacturing, mercantile, industrial, storage, hazardous or miscellaneous use, or any structure primarily devoted to residential use if the structure contains 24 or more residential units.
“Category A property” shall mean property on which is situated a Category A building and the building itself, whether or not the building is owned by a person who owns the land on which the building is situated.
“Committee” means the large building transfer review committee.
“Demolition costs” shall mean a reasonable estimate of the costs to demolish a Category A building as determined by the building department or as submitted by a licensed contractor whose primary business involves the demolition of buildings or, in the event the building is demolished, the actual cost of such demolition.
“Owner” shall mean the legal title holder or holders of Category A property, except if legal title is held by an Illinois land trust, “owner” shall mean the beneficial owner or owners of the trust. If a Category A building is owned by a person who does not own the land upon which the building is situated, “owner” shall also mean the owner or beneficial owner of the building.
“Real estate entity” shall mean any person, including but not limited to any partnership, corporation, trust, or single or multi-tiered entity, that exists or acts substantially for the purpose of receiving rental income from, or holding directly or indirectly title to or beneficial interest in real property upon which a Category A building is situated, whether for personal use, the production of rental income, or investment. It shall be presumed, unless proved otherwise, that an entity is a real estate entity if it owns directly or indirectly real property located in the city having a fair market value greater than 75 percent of the total fair market value of all of the entity's assets (determined without deduction for any mortgage, lien or encumbrance).
“Transfer” shall mean any conveyance or other transfer of an interest in Category A property on or after the effective date of this chapter by:
(1) Deed or other instrument of conveyance; or
(2) Assignment of a total of more than 50 percent of the beneficial interest in a land trust over a period of three years or less; or
(3) Instrument of transfer from the owner or beneficial owner of a real estate entity.
However, “transfer” shall not include conveyances made by:
(1) Tax deed; or
(2) Deed of partition; or
(3) Deed or trust document issued pursuant to a foreclosure or transfer in lieu of foreclosure or transfer otherwise to enforce a security interest; or
(4) Deed or other instrument of transfer to secure a debt or other obligation; or
(5) Deed or other instruments of transfer that is a release of property that is security for a debt or other obligation.
“Vacant and open” refers to a vacant Category A building that has a significant portion of its doors or windows missing or unsecured.
“Vacant Category A building” shall mean a Category A building that has remained substantially unoccupied by persons legally entitled to occupy the building, or at which substantially all lawful business operations have ceased, for at least three months.
(Added Coun. J. 3-26-93, p. 30292)
Any owner of Category A property that has situated on it or consists of a vacant Category A building must notify the commissioner of such fact by certified mail within 30 days after the building becomes vacant, or within 30 days after the effective date of this ordinance, whichever is later; provided, however, that the registration of a vacant building pursuant to Section 13-12-125 shall satisfy the notice requirement of this section. The notice shall identify the property and the contemplated use, if any, of the property, and shall provide the name and address of the owner or other person who is authorized to receive notices on behalf of the owner pursuant to this section. If at any time after making an inspection of the property the commissioner determines that the building is vacant and open, the commissioner shall notify the owner that the building must be enclosed, or substantial action must be taken to demolish the building, within 30 days after the date of the notice. The notice shall also state that if the owner fails to take either such action within the 30-day period the owner will be required to post a surety bond or other financial security or insurance as provided in this section. If, at the expiration of the 30-day period, the commissioner determines that the building has not been enclosed, or that substantial action has not been undertaken to demolish the building, the commissioner shall order the owner to post with the city and continuously maintain a surety bond or other financial security or insurance, in an amount equal to the estimated demolition costs, and in a form and duration approved by the commissioner. The commissioner shall also order the owner to post and maintain such security if such action to demolish the building has not been completed within a reasonable time. The order shall be accompanied by a written statement by the commissioner setting forth the basis for his or her determination.
(Added Coun. J. 3-26-93, p. 30292; Amend Coun. J. 6-14-95, p. 2841; Amend Coun. J. 4-12-00, p. 29471, § 1)
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