Off the Docket: South Beloit's decision to demolish Garden Hotel affirmed by appellate court
The long-neglected hotel's owner New Chapter Group, was fined $8,825,500 for 1,657 days of code violations.
The State of Illinois Appellate Court, 4th District, has ruled in favor of the City of South Beloit's decision to demolish the Garden Hotel at Gardner Street and Dearborn Avenue,. In its April 17, 2025 decision, it affirmed a $8,825,500 fine against New Chapter Group, Inc. who seemed to think their long-neglected hotel could still have been repaired and that the City hadn't given them enough notice of code violations.
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Press Release from City of South Beloit:
Fourth District Appellate Court Affirms Lower Court Order of Demolition of Garden Hotel and Hefty Fines Imposed on Property Owner
South Beloit, IL (April 22, 2025) – On August 5, 2022, the City of South Beloit, Illinois (the “City”) filed a verified complaint against New Chapter Group, Inc. (“NCG”) seeking an order of demolition and fines in connection with the property located at 200 Dearborn Avenue, South Beloit, Illinois where the Garden Hotel and Conference Center (“Garden Hotel”) had previously occupied.
After a multi-day trial, on March 28, 2024, a Decision and Order was issued by the Winnebago County Circuit Court in the matter of City of South Beloit, Illinois v. New Chapter Group, Inc., et al., Case Number 2022-MR-307 entering a judgment in favor of the City and against NCG. The Court found NCG to be in violation of multiple City Ordinances at the property located at 200 Dearborn Ave. in South Beloit, Illinois and awarded a judgment in favor of the City and against NCG in the amount of $825,500.00 for multiple property code violations for a total fine in the amount of $8,825,500.00. The Court granted also the City’s request for a demolition order executable in 30 days. Thereafter, New Chapter Group, Inc. appealed the decision to the Fourth District Appellate Court arguing that the lower court’s decision should be vacated.
On April 17, 2025, the Illinois Appellate Court of the Fourth District, entered an Order affirming the decision of the lower court holding that the expert testimony of the City’s Civil Engineer at the trial supported the conclusion that repairing the Hotel would have made no economic sense and further that the evidence could reasonably support a finding that the City gave the owner of the Hotel fair notice of code violations before suing for authorization to demolish the Hotel and for the imposition of fines.
“This ruling reaffirms the City of South Beloit’s commitment to public safety, accountability, and the responsible stewardship of our community. The condition of the former Garden Hotel had long posed a danger to our residents and a blight on our city. We are grateful that both the Circuit and Appellate Courts recognized the City’s efforts and upheld the demolition order. This decision paves the way for us to move forward and explore new opportunities for growth and revitalization at this key location.” says Tom Fitzgerald, Mayor of the City of South Beloit.
“This outcome is a clear validation of the City’s enforcement of its code of ordinances and its vigilance to protect the health, safety, and welfare of the community. The Court’s findings confirm that the property owner was given fair and ample notice and failed to take action. We are pleased that the Appellate Court affirmed the lower court’s ruling and recognized the soundness of the City’s case, including the strength of our expert testimony and the legal basis for the demolition order and fines.” added City Attorney Roxanne Sosnowski.
