Winnetka lakefront homeowners are back in federal court, claiming a village ordinance meant to protect blufftops has gutted their property values by millions. In an amended complaint filed Dec. 1, the group attached professional appraisals and fresh valuation examples they say prove the hit and asked a judge to either scrap the rule or order compensation. The move is the latest salvo in a yearslong North Shore fight over how the village controls building along Lake Michigan.
As reported by Crain's Chicago Business, the amended complaint filed in U.S. District Court leans on a CohnReznick appraisal and new valuation examples to put numbers on alleged losses after Winnetka adopted ordinance MC-01-2024. The filing warns that, across all affected parcels, damages could run "in the hundreds of millions" and asks the court to declare the ordinance unlawful or award just compensation.
What the ordinance does
MC-01-2024, approved by the Village Council in February 2024, revises Winnetka's zoning code to create a "Steep Slope" impact area and tightens front-yard and setback requirements for lakefront properties. The rule ties setbacks to the toe of the bluff or 50 feet from the ordinary high-water mark and layers on stricter engineering and permitting standards for work near bluffs. Supporters say the village needs those limits to protect an erosion-prone shoreline. Opponents counter that the restrictions effectively block development in some of the most valuable parts of their private lots. The technical language and specific limits are set out in Winnetka's ordinance.
Appraisals cited in the filing
The amended complaint builds on a CohnReznick appraisal that the homeowners say captures the scale of their losses. It cites, among other examples, an analysis of Barbara Irwin's Taylorsport Lane blufftop property, which the appraisal pegs as dropping from about $7.54 million to $2.69 million, roughly a 64 percent slide. Another example cited is Michael Hara's Sheridan Road parcel, which the filing says lost about $3.81 million in value, falling from roughly $11.12 million to about $7.31 million.
According to the complaint, the four cited lakefront properties together shed around $16 million in value, and an estimated 112 properties fall under the ordinance's reach. Those figures were reported by Crain's Chicago Business. Bill Jackson, who is leading the homeowners' legal fight, told the outlet the ordinance is "really about aesthetics" rather than safety.
Who's suing and who represents them
The original complaint, filed in May 2024, names roughly two dozen lakefront owners and trusts as plaintiffs. The list includes Andrew Bluhm, Hara Investments LLC, Barbara Jane Irwin, and several Chicago Title land trusts, and it leaves the door open for additional parties to join. The group is represented by Baker & McKenzie, and the initial filing was signed by attorneys Mark Karasik and Colleen Baime, according to the court record. Court filings detail the plaintiffs and their counsel.
Legal stakes and posture
Winnetka previously moved to dismiss the lawsuit's sole federal claim, a bid that succeeded in October. Judge LaShonda Hunt ruled that parts of the homeowners' case were not yet ripe and allowed them to amend their complaint. In a statement, the village said the court "explicitly rejected" the taking claim and expressed confidence that the ordinance is fair, according to the village summary of the ruling. The dismissal and its reasoning were outlined on the village website, and The Record covered the decision.
What's next
The new filing hands the judge a thicker factual record, and the key question is whether those added details make the taking claim ripe and legally viable. If the court finds the claim can move forward, the case would shift from procedural sparring into discovery and, potentially, hard-fought valuation battles over how much, if any, regulation-driven loss must be compensated. For now, both sides say they are prepared to aggressively defend their positions in court.
