Novack and Macey partners Steve Novack and John Shonkwiler obtained complete victory for the Firm’s client, Park Grill, in a lawsuit against Cook County officials who attempted to levy a property tax against Park Grill back in March, 2005. Judge Richard Billik of the Cook County Circuit Court granted Novack and Macey’s motion for summary judgment and struck down the tax, holding that the Park Grill’s contract with the Chicago Park District for food service operations in Millennium Park does not subject Park Grill to liability for Illinois “leasehold” taxes.

Since February 2003, Park Grill has operated a restaurant, café and various temporary concessions in Millennium Park under a 20-year “Concession Permit Agreement” with the Chicago Park District. Illinois law authorizes Cook County to assess property taxes on private business owners who operate on land that (like Millennium Park) is owned by a tax exempt entity, but only if the business owner has a “leasehold” interest in the property.

Park Grill operated in Millennium Park for two years without ever being assessed property tax until an article published in the Sun-Times February 11, 2005 accused local officials of giving Park Grill a free pass on tax liability, which the author attributed to the political clout of the Park Grill’s owners. Prompted by the article, the Cook County Assessor issued Park Grill its first ever notice of tax assessment just one month later. That tax has now been rendered void.

In striking down the tax, the Cook County Circuit Court acknowledged the important legal distinction that the inflammatory Sun Times article had glossed over -- i.e., that Park Grill’s Concession Permit Agreement with the Park District is not a “lease” and, thus, cannot be taxed by Cook County under Illinois’ leasehold tax laws.

For further information please contact Don Tarkington, Managing Partner at 312.419.6900.