Hi Alisa!

Thank you in advance for your consideration of this situation for an article.
I have been a homeowner on the 2300 block of W Erie since 2004. The North side of this block has a
string of 10 raised ranches that were built around 1960-61, and are in the 1st Ward (Moreno).
When I bought in 04, I was the first person to buy on the block in over 20 years. There are many longtime homeowners here including one where a 4th generation now resides.
2326 W Erie This is where it all begins
In 2014, the Polish man who lived in one of these ranches passed away without a will. His heirs were all
in Poland so we knew this house would go to probate and get sold by the State. Neighbors of course
were concerned that a developer would buy this house, tear it down and build a huge monstrosity that
doesnt fit with the rest of the block. Neighbors quickly signed a petition to down-zone this house from
RS-3 zoning to RS-1 zoning, with Alderman Morenos support.
Down-zoning to RS-1 meant that a developer would be restricted to a maximum floor area of 1,800 sq.
ft. Since the house was already almost 1,100 sq. ft., only additional 700 sq. ft. could be added either by
adding a second floor, or digging and extending the length of the house.
Notification signage was posted in front of this house regarding the down-zoning application as well as a
comments / questions period, contact info, etc.
It is during this time when the sign was posted that a developer discovered 2326 W Erie on the market.
The developer admits to visiting the property multiple times when considering its purchase. This
developer also claims that he never saw the down-zoning notification posting. He admits to seeing
neighbors outside next door but never spoke with them, or made any inquiries of them regarding the
house or the block.
When a For Sale sign was placed on the property by a very well-known broker, I called this broker and
spoke with a member of his team. I informed him that this house was in the process of being downzoned. (I also asked them to adjust the window blinds the next time they were in the house because
they were crooked and it made the house look abandoned.) I explained that they needed to notify
potential buyers of the down-zoning request and that signage was posted in front of the house.
This developer moved forward with purchase of the house, thinking that it was RS-3 zoning. At some
point, the down-zoning request went through. Not sure if it was before or after closing on this property.
When the developer discovered the RS-1 zoning, he went to Alderman Moreno who called a community
meeting. The developer asked us to change the zoning back to RS-3. There were several options the
neighbors would have approved of, but none of these were amenable to the developer so we kept the
RS-1 zoning.
2326 W Erie was subsequently torn down and a modern, dark grey/wood house is now almost on the
market. It sticks out like a sore thumb and boxes in a raised ranch on the end.

2308 W Erie The house we are now trying to save.

Last year in April 2015, Josephine Custer, the original owner of 2308 W Erie passed away at the age of
100. She raised 5 children in this house, outliving 3 of them.
Neighbors worried about the fate of this house and what would take its place. I attempted to buy the
house with the hopes of moving my mom to this neighborhood and secured a backer for the purchase.
When my backers situation changed, I was no longer able to purchase this house.
When neighbors realized the situation, we scrambled for a solution. We spoke with the Aldermans
office and he saw what had become of 2326 W Erie. Neighbors conferred and decided to down-zone the
rest of the raised ranches. We signed a petition, got Alderman Morenos support and began the process.
Our zoning hearing was set for April 5, 2016.
Notification signage was posted in front of the house, just as it was for 2326 W Erie.
March 2016 Panoptic LLC purchases 2308 W Erie
Panoptic LLC, a developer in the West Town area, purchased the house, which we did not know.
Our down-zoning application is in but some neighbors got nervous about down-zoning. What if we
wanted to up-zone at some point in the future? Could we do it? What was required to up-zone? Would
the new neighborhood association oppose an up-zoning? How does this impact the value of our homes?
April 2016 Down-zoning hearing deferred
The April 5th hearing was quickly approaching and neighbors were not unanimous. We met with
Alderman Moreno to discuss further and decided to defer the zoning application until neighbors could
explore further. It was explained to us that later on, we could proceed with the down-zoning application
if we wanted to.
We figured that with the down-zoning application on file with the Zoning Department we had a fallback
position as well as leverage.
April 2016 Letter from Panoptic
One neighbor received a letter from Panoptic saying that they planned to demolish 2308 W Erie at the
end of May, beginning of June. A copy of their drawings was included.
None of us realized that this letter meant that Panoptic had already received a permit for their plans as
well as to demolish. We were still operating under the premise that we could proceed with downzoning.
May 2016 Meeting with Panoptic
When we showed the letter to the Raymond with Alderman Morenos office, Raymond contacted
Panoptic to set up a meeting with neighbors.
We still did not realize that this mean that plans were approved and that Panoptic could move forward.
At this meeting, Roman Popovich, owner of Panoptic, sang a similar song to the developer of 2326 Erie,
only this one was betterI didnt see a down-zoning sign. I drove past the house and thought it was a
Peoples Gas sign.
2

After all the years that Panoptic has been building, they dont recognize a zoning change sign? Big white
poster with a red border??
Roman Popovich further cries that he is the victim here. We the neighbors explained that we were the
victims, that his plans ignore the block entirely and its consequences, and that long after he has made
his money, we are the ones who will have to live with his destructive results.
A neighbor pointed out to Roman Popovich that she saw someone snapping a picture of the downzoning sign. We figured this had to be someone from Panoptic as everyone else on the block was
already familiar with the situation so why would any of us snap a picture? Roman Popovich denied that
anybody from his company snapped a picture of the sign.
This meeting ended without resolution.
May Present: Various discussions with Alderman Moreno / Chief of Staff
Over the past several weeks, conversations between all parties were furious.
Panoptics plans called for:

2 full stories
A black & grey faade
Extending the house an additional 14
Building a frame garage (that would only be 3 from the back of the house).

Neighbors objected to:

The black & grey faade, as the rest of the block is blond brick. The proposed house would stick
out like a sore thumb, not only because of size and style, but also because of its dark color.
Extending the house an additional 14 all properties are currently the same length. We enjoy
yard views up and down the block, along with full sun in our gardens / patios. Extending this
house by 14 (and 2 stories!) would box in the adjacent houses, eliminate green space, views
and sun. To us, it might as well be the Sears Tower on this property, no consideration to
adjacent properties, and consequences to the neighbors who would have to live with the
resulting changes forever.
Because this lot size is shorter, at approximately 110 (houses 5 10 have longer lot lines, at
125), building a garage would eliminate the yard entirely. There would only be 3 between the
house and garage.

On behalf of neighbors, I emailed the Alderman stating that we would agree to leave existing RS-3
zoning in place if Panoptic agreed to the following, three conditions:
1. No fence around front lawn. Even though it did not appear that Panoptic planned on installing
one, we wanted a guarantee. (This actually saves the developer money.)
2. Change brick color from black/grey to a lighter color that matched the rest of the block.
3. Instead of adding 14 to the length of the house, only adding 4, leaving a space of 10 between
the 2-story house and the frame garage. This would still alter sun patterns but minimally and
would also allow full views along the yards.

A week later, Panoptic agrees not to install a fence, and to change its brick color. Panoptic considered
these minor concessions sufficient to appease the neighbors. However, since a black/grey faade was a
poor choice to begin with, neighbors did not really see this as any concession on Panoptics behalf.
The sticking point length of the house
Panoptic refuses to budge on the length of the house, citing that the numbers dont work. This is an
outright misrepresentation (a nice way of saying, a flat out lie).
We pointed out to Panoptic that the developer who built 2325 W Erie managed to build a home under
RS-1 zoning, only adding 700 sq. ft., and will be going on the market at $1M +.
We explained that if Panoptic had RS-3 zoning, it would be able to build a larger, second floor and we
would be okay with the house being an additional 4 longer than the existing house. Logically then, if the
house is bigger than 2326 under RS-1 zoning, then Panoptic would be able to market the house at a
great price.
Dan Popovich (son of Roman Popovich) explained that they had a product, a brand and that they are
unable to build a smaller house. He claimed that their properties were LEED Certified and that they
spend $25,000 on their mechanicals while other developers spend much less. He went on to say that it
was impossible for them to modify the house.
Alternative solutions
While out last Saturday with a friend that I hadnt seen in a long time, the friend tells me how lucky I
am to have a house, that he has a condo and just a balcony with no yard, etc. A light bulb went off in my
head. I shared this situation with my friend, Bruce. I then asked him if he would be willing to purchase a
house that need some updating. I would of course, have to present the idea to Panoptic, but maybe
they would be open to it and avoid this headache altogether.
The following day, Sunday, I emailed Panoptic with the idea, telling them that I may have a potential
buyer. Furthermore, I offered to find them other real estate opportunities in the area in exchange for
the lost opportunity here. As a matter of fact, I had a colleague with an off-market listing on the 2100
block of W Huron. This property would have been perfect for a Panoptic home since all the houses on
this block are 2+ stories high.
No response from Panoptic.
Wednesday morning, June 15th, 7:45 a.m.
My dogs and others around me start barking furiously. I get out of bed to see what the commotion is all
about.
I see workers all around 2308 W Erie installing a fence around the property. I notice that all of their
fence poles were leaning up against my house and that the holes for the poles were dug on my side of
the property.
I went outside and told workers that 1) they are not allowed to start work before 8 a.m. and, 2) that
they need to move the fence poles onto the other property.
I called and emailed Dan Popovich who came over. Many neighbors were outside.
4

We told Dan that Panoptic was off to a bad start. Starting work early would not be tolerated by us and
we would call the police. We also told him that his work must be confined to that property and not
adjacent properties.
He had workers move the fence holes.
I asked Dan if he was open to selling the property to get out of this mess. He said he would gladly get
out because he doesnt want the headache. I asked why he hadnt responded to my email regarding
a potential buyer and how much he wanted for the property to walk away.
Dan responded that he needed to cover [his] costs, so $480,000 - $490,000. This was above market
value by at least $20 - $30,000 and I told him so. He said he would look at his number in the evening and
follow up with an email.
I reminded him that it was Panoptics failure to look at the down-zoning sign, that we took all the proper
measures and shouldnt have to pay for their oversight, mistake, neglect, etc.
It was then that Dan admitted that a worker saw the sign and snapped a picture of it. When Dan
received the picture, he stated that they were freaking out.
So they knew, but ignored, the down-zoning.
At 11 pm that same evening, Dan followed up via email stating that he wanted $535,000 to walk away.
When asked, Why so much? he responded that this factored in a lost opportunity.
This was beyond ridiculous! It was so ridiculous that I just had to run past senior agents because quite
frankly, I didnt know how to respond!
In real estate, the market dictates price. I reminded him of the crash in 2008 when many people did not
recoup the cost of their home plus any improvements they made; that many people lost their homes.
And to see what the market is doing, we look at recent sales. It most certainly is NOT cost + expenses.
Furthermore, real estate is speculative. When you buy, tear down and build, you are speculating that a
future market (i.e., when the house is ready for sale) will hold or improve, because otherwise you would
lose money. There is a risk. The same could be said here. Panoptic paid $425,000 for the house, but the
market could have softened since March 2016 (and it has), and the value of his property would
decrease.
I also repeated that I would find Panoptic other opportunities, just like I had with the Huron property.
Dan asked if he could see it that day. When I spoke with the broker, she indicated that the property
went under contract 2 days before and that the property inspection took place the day before.
The final email of the night was a promise from Dan that he would not demolish the house until I had a
chance to discuss with Bruce, the potential buyer.
Thursday, June 16th, 7:25 a.m.
Dogs going nuts again, as well as others across the alley, next door and 3 doors down.
I get out of bed to discover a truck in the alley with a worker trying to open the fence to the house next
door, and a semi-truck in front with a bull-dozer on it.
5

Neighbors were calling me frantically that they were getting ready to demolish the house.
I ran outside in my pajamas and asked what was going on and reminded them that it was 7:25 am and
that they were not allowed to do any work yet.
The bulldozer operator said they were demolishing the house. The worker with the truck in the alley
confirmed, and feigned ignorance that he couldnt start work until 8 a.m. because he is from
California.
Calls to Dan, Panoptics office went unanswered. I sent emails to Dan, Panoptic and the Aldermans
office.
I told Mariusz, the bulldozer operator, that there was a mistake, that the house wasnt getting
demolished that day.
40 minutes later, Dan called Mariusz and told him to leave the bulldozing equipment on site but not to
demolish the house.
Thursday Sunday, June 16 19th: Buyer Bruce
Over these days, I showed the house to Bruce, pulled market data, discussed pricing, ideas for work
needed, resources, costs, etc. I explained the urgency of the situation and that a fast decision was
needed.
Bruce questioned the price of the house and eventually decided to pass because the house was overpriced. I was devastated. And so were the neighbors.
Monday, June 20th: Panoptics Up-Zoning Request for Property on Haddon St.
Panoptic purchased a property on the 2300 block of W Haddon and is requesting an up-zoning to RT-4.
The hearing for this request was scheduled for Monday morning at City Hall at 10 a.m.
Alderman Morenos office asked me to attend, which I did. Will share details of this verbally.
I can share that Raymond arranged a meeting with me and Roman Popovich to find resolution to the
pending item of shortening the house by 10. We did not agree. During the entire meeting, Roman
repeated no less than 10x, I dont care about the block, the neighbors. I have property rights.
Raymond actually asked Roman to stop saying, I dont care.
At one point, Roman Popovich asked me why I just dont sell my house and move. Unbelievable.
Monday, June 20th: Buyer Betty
I contacted a real estate attorney I knew to see if any of her clients were looking for a house in the area.
Betty indicated that she was and came by on Monday during lunch to see the house. Neighbors Lily and
Adam offered to show Betty their home, which was fully updated including the basement. Betty fell in
love with Adam and Lilys house and immediately saw the possibilities with 2308 W Erie. She said she
would have a decision that evening. She seemed extremely excited because she had been looking in the
area and everything is over $1,000,000. I also thought she liked it enough to pay $480,000 and
recognized that this was a rare opportunity to own a great house in this hot area.
6

So when Betty responded on Monday evening that she had to pass on the house, I was again
devastated. Brought to tears, actually. She too thought the house was overpriced and she was saving for
her wedding next year.
So it was then that I took to the Internet and posted on the Ukrainian Village FaceBook sites, scoured my
contacts and got the word out to as many people as possible. So far, no offers in writing yet but several
people are working on them. Fingers crossed.
Friday, June 25th Deadline
Panoptic met with the Alderman yesterday. The result was a Friday deadline for any reasonable offers.
My response addressed what was reasonable in the real estate market. It was futile to get them to
understand that an overpriced house does not sell.
Phone Call with Raymond, Alderman Morenos Office
Neighbors are furious. We thought we had all of our bases covered.
Several weeks ago when we discovered that Panoptic secured permits to move forward, Raymond
indicated that if we submitted our down-zoning application before Panoptic submitted their permit
applications, that Panoptics permits could be rescinded.
This week, Raymond stated that this is a long-shot.
When I asked how the Aldermans office did not know their plans were approved, Raymond responded
that they were watching for the demo permits.
Today after a long conversation with Raymond, he said that we should have moved forward with the
down-zoning. Well of course. Hind sight is 20/20. However, we were operating on information given to
us that we could re-activate our down-zoning application.
Raymond has an email out to the Commissioner to see what can be done.
If a buyer is not found and their offer is not accepted, then Panoptic indicates they will move forward
with demolition on Monday, June 27th.
Questions:
1. How is it possible that a developer can submit plans to the Zoning Department for permits, and
that an application for a zoning change affecting said property doesnt flag the permit
application and notify the developer?
2. When a developer / architect checks zoning, why doesnt an active application for a zoning
change come up?
3. So our system relies on posted signage that a developer can claim they never saw? And then get
away with building what they want?
Disappointing Information about Panoptic
1. Google Roman Popovich. You will find a 2011 Sun-Times article that describes how Roman
Popovich funneled a condo, assigned as affordable housing by then Alderman Billy Ocasio, to

2.

3.
4.

5.

U.S. Rep Luis Gutierrez daughter at a deep discount! Rep Gutierrezs daughter sold the condo
14 months later making a 55% profit.
Augusta & Damen development (Dollop + 5 condos)
This development was marketed as LEED-certified (green technology designation).
Achieving this designation is expensive and includes inspections. Brokers involved in the
sale of this development state that condos were sold as LEED-certified but are NOT
LEED-certified and that one owner is considering litigation against Panoptic.
A source also states that investment capital from this project was used to fund other
Panoptic projects. Work came to a halt because there was no money. Several brokers
refused to work with Panoptic as a result.
A separate source states that Panoptic was seeking bank financing to finish this project
but that banks were not lending to them, so Chinese investment was secured.
Huron & Western development work halted to a screech here as well for shortage of cash
flow.
Lyndale project A broker found a tear-down for Panoptic on Lyndale, which was tenantoccupied. Four months after closing, Panoptic sends a bulldozer to demolish the building and
discovers that it is still tenant-occupied. Panoptic calls the broker asking for contact information
for the tenants and was reminded that the Sellers attorney provided that information at closing
and that Panoptic had it in their files. Construction was delayed for a minimum of 60 days in
order to provide legally-required notice.
Issues with neighbors a senior broker in this area states that Panoptic always has problems
with neighbors.