Village officials in Skokie announced progress in resolving a long-standing dispute over the stalled hotel project on Oakton Street. Parties involved in the litigation have shown willingness to reduce or abandon their financial claims to advance the development.

Attorney Rodney Lewis, representing Skokie’s legal counsel, addressed the trustees at the June 1 Board meeting. He confirmed that the litigation efforts have sparked interest from several developers. Lewis stated that all involved parties committed to either discounting or walking away from their claims to facilitate the project.

Economic Vitality Manager Rodney Tonelli informed the trustees that officials have met with 13 potential developers since identifying a path out of the litigation. Currently, they are in active conversations with seven of these developers. Tonelli noted that three developers are undergoing underwriting processes to assess the financial viability of the project.

The key challenge is ensuring the economic feasibility of the project, Tonelli explained. Ultimately, it’s about making the math work.

Lewis emphasized the importance of keeping all parties engaged to reach a resolution. At the meeting, he provided an update on the project at 4930 Oakton Street, originally meant to be a Homewood Suites by Hilton hotel.

The project’s construction stalled in 2023 when general contractor Russell Construction sued the developer, E&M Strategic Development, over payment issues. That year, Skokie offered a 10-year, $4.5 million loan to address a financing shortfall. The loan, contingent on securing additional funding, was never released.

The Village has already allocated approximately $10.5 million in Tax Increment Financing (TIF) funds for the site. They initially committed up to $13.5 million for property acquisition, site preparation, and redevelopment, based on the project’s website.

In February 2025, the lender, X-Caliber Capital, sued E&M Strategic Development for defaulting on a construction loan. Russell Construction’s claim was prioritized over X-Caliber’s by an arbitration panel in October 2025, with the next hearing scheduled for September.

Skokie managed to avoid being an official litigant, instead monitoring proceedings from the sidelines. Lewis outlined efforts to unite all parties towards reaching an agreement to resolve the litigation, empowering developers to proceed.

There is no benefit in continuing litigation when it’s not translating into dollars, Lewis said, underscoring the need for resolution.

Mayor Ann Tennes raised concerns about the building’s structural integrity. Tonelli reported that a third-party structural engineer found the building still okay in October 2025, though some components require monitoring. The Village plans another evaluation before winter.

Tennes acknowledged the community’s frustration with the project. She expressed gratitude to the staff for prioritizing its resolution, scheduling the next update for September.