The owners of the Liberty Theater at 708 North Milwaukee Avenue in Libertyville have turned to the courts to push their stalled redevelopment forward. On November 12, 2024, they filed a petition with the 19th Judicial Circuit Court of Lake County, Illinois, asking the court to overturn the village’s denial of a Certificate of Appropriateness (COA ) — a key permit required for redevelopment projects in the historic district to ensure plans align with preservation standards.
At the Heart of the Dispute
The conflict stems from a dramatic Village Board meeting on August 13, 2024. The six-member board deadlocked 3-3 on whether to grant the COA, leaving the decision to Mayor Donna Johnson. Johnson cast the tie-breaking “no” vote, effectively blocking the redevelopment plans. According to the complaint, this decision came despite clarification from the Village attorney that the owner’s proposal was “zoning compliant,” meeting all zoning requirements and adhering to the village code.
A Historic Theater in Limbo
Built in 1937, the Liberty Theater serves as a northern gateway to Libertyville’s historic district, established in 2018. Vacant and boarded up since 2019, the site was sold in 2021 to its current owner, who envisions transforming the property into a mixed-use development. Plans include redeveloping the theater building and constructing two new buildings: a one-story commercial space to the north and a three-story building with ground-floor commercial spaces and apartments above to the south. All proposed structures remain within the existing property boundaries.
The redevelopment aims to balance the theater’s historic character with modern uses, featuring new facades, landscaping, and lighting. Per the filing, in 2023, Village staff determined the proposal adhered to zoning rules, including regulations on use, height, setbacks, and parking. However, the project faced opposition. In March 2024, the Appearance Review and Historic Preservation Commissions recommended denying the proposal, citing concerns about its compatibility with the downtown area.
Key Issues in the Dispute
One major sticking point is access for neighboring businesses. Several nearby property owners and businesses rely on through access across the theater property for deliveries and trash removal. They raised concerns about potential lease costs associated with future cross-site access under the owner’s development plan. During board meetings in April, June, and August, some trustees and Mayor Johnson argued that the theater owners should provide an easement to guarantee long-term access for neighboring businesses. Without such agreements, the Village denied the permit.
The owners, however, contend in their filing that requiring them to grant an easement is unconstitutional, describing it as an improper demand to relinquish property rights in exchange for project approval. In their November 12 court filing, they allege the Village overstepped its authority by arbitrarily imposing this condition, particularly given the project’s compliance with all applicable zoning and building codes.
What’s at Stake?
The case underscores broader questions about Libertyville’s approach to redevelopment within its historic district, highlighting tensions between preservation and progress. The Liberty Theater redevelopment project — seen by some as a vital step toward revitalizing a neglected landmark — remains in limbo, awaiting a resolution that could set precedents for future projects.
Mayor Donna Johnson, the deciding “no” vote, is up for re-election in the April 1, 2025 local election. Her opponent for Mayor, current Trustee Matthew Hickey, was one of three “yes” votes approving the COA to green light the Liberty Theater project.
Next Steps
The owners and the Village are scheduled to meet with Judge Daniel L. Jasica on February 13, 2025, at 9:00 AM in courtroom 302 for a Progress Call on the dispute. The outcome of this case and election could significantly influence both the future of the Liberty Theater and the framework for handling redevelopment in Libertyville’s historic district.