23-cv-1636 Complaint
23-cv-1636 Complaint
COMPLAINT
Plaintiff King Sykes LLC, an Illinois limited liability company (“Plaintiff” or “King
Sykes”), by its attorneys, for its Complaint against Defendants City of Chicago (“the City”),
Maurice Cox (“Cox”), Samir Mayekar (“Mayekar”), Sophia King (“King”) (Cox, Mayekar, and
King are referred to collectively as the “Individual City Defendants”), Scott Goodman, GRIT
Chicago LLC (“GRIT Chicago”), and Farpoint Development LLC (“Farpoint”) (Scott Goodman,
GRIT Chicago, and Farpoint are referred to collectively as “Goodman”), alleges as follows:
INTRODUCTION
Hospital, which is slated for a massive redevelopment by a joint venture between the City and
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Goodman. Plaintiff would like to sell its property. The City and Goodman would like to own
Plaintiff’s property—eventually. But they do not want to buy it yet, and they do not want to pay
fair market value for it. Instead, they would like to make Plaintiff’s property unmarketable until
2. The City (primarily through King and Mayekar) and Goodman (who claims to
speak for his co-venturer, the City) have conspired to scare off potential buyers of the Plaintiff’s
property—including one that even signed a purchase contract. They have done so by making it
known to the marketplace that the City will never give the required approvals necessary to develop
Plaintiff’s property for any use to any buyer other than itself, i.e., the City-Goodman joint venture.
In this way. they have made the Plaintiff’s property unsaleable to any other buyer. Indeed,
Defendants’ motives were laid bare when they told Plaintiff’s potential buyer, a data center
operator, that it would never get the necessary City approvals to operate a data center on Plaintiff’s
property – then assured that very same operator that it would have no problem obtaining the
required approvals if it were to build a data center across the street, on the City’s Michael Reese
property.
3. This conduct by the City and Goodman is actionable pursuant to 42 U.S.C. § 1983
for violations of Plaintiff’s constitutionally protected equal protection rights and rights under the
Takings Clause of the Fifth Amendment, as well as conspiracy by the Individual City Defendants
opportunity by wrongfully causing a purchaser of the Plaintiff’s property to terminate the deal.
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PARTIES
4. Plaintiff King Sykes LLC is an Illinois limited liability company with its principal
laws of the State of Illinois, and is the employer and principal of the other City Defendants.
6. Defendant Sophia King is an official of the City of Chicago, and since April 2016
has been the Alderperson of the 4th Ward. Under City practices and procedure, King has
substantial control over zoning and other development decisions within the 4th Ward, and has
effective veto power over any such zoning approvals and decisions in the 4th Ward.
Commissioner of the Department of Planning and Development (“DPD”) of the City of Chicago.
8. Defendant Samir Mayekar is an employee of the City of Chicago, and the Deputy
10. Defendant GRIT Chicago LLC is a Delaware limited liability company with its
principal place of business in Chicago, Illinois. Upon information and belief, Scott Goodman
controls GRIT Chicago LLC through Farpoint Development LLC, its managing member.
11. Defendant Farpoint Development LLC is an Illinois limited liability company with
its principal place of business in Chicago, Illinois. Scott Goodman is a manager of Farpoint
Development LLC. Upon information and belief, Scott Goodman controls Farpoint Development
LLC.
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12. Jurisdiction is proper in the United States District Court for the Northern District
of Illinois pursuant to 28 U.S.C. §§ 1331 and 1343(a) because this case involves a civil action
arising under the laws of the United States, specifically 42 U.S.C. § 1983.
13. This Court has supplemental jurisdiction over the claims asserted under Illinois law
14. Venue is appropriate in the Northern District of Illinois because a substantial part
of the events or omissions giving rise to the claim occurred, and the real property involved in this
FACTUAL ALLEGATIONS
15. Plaintiff King Sykes is the owner of an approximately 6.5-acre panel located at
2545-55 South King Drive in Chicago (the “KS Site”). This is the northeast corner of 26th Street
and King Drive. Plaintiff has owned the KS Site since 2007.
16. Since approximately 2009, the City has owned the property immediately across
26th Street from the KS Site, at the southeast corner of 26th Street and King Drive. The City’s
property, which runs south to 31st Street, is known as the Michael Reese Site.
17. On October 12, 2016, the City of Chicago released a request for proposals for the
“In cooperation with the Metropolitan Pier and Exposition Authority (”MPEA”),
DPD will also consider proposals that will redevelop, (1) the Michael Reese Site
together with the property commonly referred to as the McCormick Place
marshalling yards (the “Marshalling Yards Site”), or (2) the Michael Reese Site
together with the Marshalling Yards Site and the property bounded by E. 25th
Street to the north, E. 26th Street to the south, Dr. Martin King Luther Drive to
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the west, and the Metra right-of-way to the east (“the “Advocate/McDonald’s
Site”).”
19. The RFP further noted that the “Advocate/McDonald’s Site currently has four
owners and is not controlled by the City or MPEA.” The KS Site is one of the four sites that
comprise what the RFP called the “Advocate/McDonald’s Site.” Plaintiff is one of the “four
20. The Michael Reese Site, Marshalling Yards Site, and the Advocate/McDonald’s
Site (which includes the KS Site) are all located in Chicago’s 4th Ward. At all relevant times,
21. The RFP invited developers to work with the City in developing the KS Site as
part of the Michael Reese development. For example, the RFP stated:
“If the Selected Developer has included the Advocate/McDonald’s Site in their
Development Proposal, the Selected Developer must commit to acquire the
Advocate/McDonald’s Site through private negotiations with the current owners.
However, if private negotiations fail and the City elects, in its own discretion, to
acquire the property through eminent domain, then the developer must commit to
pay the fair market value of the land as determined by a court, plus the City’s
acquisition costs.”
22. In sum, the City solicited redevelopment proposals for the City-owned Michael
Reese Site. But the City was also inviting developers to consider including two adjacent
properties in their proposals. These adjacent parcels were (a) the Marshalling Yards (owned by
MPEA) and (b) the “Advocate/McDonald’s Site” (owned by Plaintiff and others).
23. In June 2017, the City selected GRIT Chicago as the developer for the Michael
Reese RFP. Farpoint is a principal member of the GRIT Chicago development team, and Scott
Goodman is a manager of Farpoint. Upon information and belief, Goodman directed the actions
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24. After GRIT Chicago’s selection as developer of the Michael Reese site, Goodman
acted in conjunction with the City and as the City’s agent and co-joint venturer in developing the
Michael Reese Site. In that role, Goodman and the City sought to control and acquire the KS
Site.
25. On or about August 28, 2017, Brett Walrod, a representative of King Sykes, met
with Scott Goodman and another representative of the GRIT Chicago development team.
Goodman told Walrod that David Riefman (then the DPD Commissioner) had encouraged him to
use the KS Site in his plans and marketing materials. Goodman further stated that he “needed”
the KS Site, but not for another 5 to 10 years. Goodman further stated that he and “his friends”
would oppose any use Plaintiff might propose for the site, and that Plaintiff would never get
zoning for any use of the KS Site, purportedly because it was “not in the public’s best interest”.
26. What Goodman meant was that he and the City would prevent Plaintiff from
selling or developing the KS Site because they wanted to buy it at an artificially low price in the
27. Since GRIT Chicago was selected as developer of the Michael Reese site,
Goodman has worked with the City on long-term plans for a “Bronzeville Lakefront”
development, which would include the Michael Reese Site and—in Goodman’s vision— the
Marshalling Yards Site and the Advocate/McDonald’s Site, which included the KS Site.
28. In April 2020, Plaintiff and Equinix, LLC, an international digital infrastructure
company, began discussing a potential sale of the KS Site to Equinix, and Equinix began due
diligence. Equinix proposed to develop a new, state-of-the-art, multi-user data center on the KS
Site.
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Purchase Real Estate, under which Equinix would purchase the KS Site for $30 million. Equinix’s
obligation to purchase the Property was conditioned upon it obtaining the required “Governmental
Approvals” (as defined in that agreement) during the Inspection Period (i.e., August 4 to November
2, 2020), including “all licenses, planned development approvals, zoning changes, [and] site plan
approvals…”
30. Equinix began work on obtaining Governmental Approvals for its proposed data
center, and began engaging with the City and King. On September 10, 2020, the Equinix team
participated in a video conference meeting with King’s team to begin a dialogue about the
proposed data center. At that meeting, King said that “we have plans for that site” – in other words,
that King would oppose Equinix getting the necessary approvals for its data center, because the
the proposed data center which included a data center, a parking structure, and additional surface
parking for the data center to the City (DPD) and King.
32. Over the next few months, Equinix had extensive discussions with various City
officials, including King, her chief of staff, Mayekar, and Cox, about obtaining the required
governmental approvals for the data center. Goodman was involved in many of those discussions.
33. On or about November 16, 2020, there was a call among King, Goodman, DPD and
Equinix. At this meeting, Goodman pitched to Equinix the idea of buildings its data center on the
Michael Reese Site rather than the KS Site. And on or about December 10, 2020, in a meeting
with Equinix and the City, Goodman again told Equinix that it should move its planned data center
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to the Michael Reese Site. By this time, the City was siding with King and Goodman about
34. On December 22, 2020, Equinix and Plaintiff executed a First Amendment to
Agreement to Purchase Real Estate. That First Amendment extended the inspection period for
the Purchase Contract, in which Equinix was to obtain the necessary Governmental Approvals,
35. Upon information and belief, on January 8, 2021, Equinix representative(s) had a
call with King and Goodman. On that call, King told Equinix that the City would not grant
Equinix the required approvals because the City wanted to purchase the KS Site, and to purchase
it “cheap.” King wanted only one data center in the area—the one she and Goodman had
36. Equinix, however, preferred the KS Site to the proposed Michael Reese location
due to, among other things, the economics of a data center; connectivity and distance to existing
fiber optic cable and power; better infrastructure; and the cost to go vertical vs. horizontal
37. On February 11, 2021, King arranged a call with Equinix and Goodman. That
call took place on February 19, 2021. During that call, Goodman told Equinix that Goodman
and the City were trying to obtain Plaintiff’s property for “cheap.”
38. On February 22, 2021, Equinix requested that Plaintiff delay the closing of the
39. On March 16, 2021, King, Mayekar, Goodman and representative(s) of Equinix
met. King told Equinix that: (a) Equinix would never get the required approvals to build the data
center on the KS Site; (b) Plaintiff would never get the required approvals to build on the KS
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Site; and (c) the reason for (a) and (b) was that “we [King, the City, and Goodman] have plans
40. At this point, Equinix had been told definitively that it would never obtain the
governmental approvals necessary under its agreement with Plaintiff to build the data center on
the KS Site. And at the same time, Equinix was told by King and Goodman that it could build its
proposed data center just across the street from the KS Site.
Purchase Agreement.”
42. Thereafter, Equinix entered into negotiations with Goodman to purchase the land
43. With Equinix’s $30 million purchase contract terminated, Goodman set about
44. Goodman then met with Plaintiff to discuss buying the KS Site. On July 1, 2021,
Plaintiff met with Goodman, who said he would make an offer for the KS Site but it “won’t be
data center money,” i.e., it would be less than what Equinix had contracted to pay Plaintiff.
45. On July 20, 2021, the DPD gave a presentation to the Chicago City Council
Committee on Housing and Real Estate, which included contemplation of a data center at the
46. The next day, on July 21, 2021, the City Council amended the Chicago Zoning
Ordinance to adopt the Michael Reese Planned Development (“PD 1509”), and approved the
Bronzeville Lakefront Agreement for the Sale and Redevelopment of Land (the “Redevelopment
Agreement”). The amendment listed as a permitted use in PD 1509: “Electronic Data Storage
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Center (provided, however that not more than one Electronic Data Storage Center shall be
47. Under the Redevelopment Agreement, the City agreed to engage in a series of
sales to GRIT Chicago of several parcels of land comprising the Michael Reese Site for a total
48. The City and Goodman manifested their intent to become joint venturers in the
redevelopment and completion of PD 1509 by entering into the Redevelopment Agreement and
by the City’s approval of PD 1509. Among other things, the City agreed it would contribute to
infrastructure development within the site while GRIT Chicago would construct commercial,
institutional, and housing structures, and completion of the redevelopment would require
continued, close collaboration between the City and GRIT Chicago. The joint venture was
expected to generate significant profits for GRIT Chicago, which would be shared with the City.
49. Subsequently, on or about May 5, 2022, Plaintiff’s representatives met with King
and her chief of staff. King said she would support development of the KS Site, but then stated
that Plaintiff wanted “too much” for the KS Site and suggested $15 million as a fair price, which
was half of what Equinix had agreed to pay Plaintiff, until the City and Goodman made closing
50. The next month, on or about June 24, 2022, Equinix had a phone call with King’s
chief of staff. He reiterated that the City/King would not support development of the KS Site,
which would remain “amorphic” until the City decided what its plans were for the site. Of
course, no potential purchaser would want to buy the KS Site when—just like with Equinix—the
City was not going to approve any use for the Site.
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51. Later, on or about November 28, 2022, Goodman, through a company he controls
called Decennial DX Management LLC, sent an offer to Plaintiff for the purchase and sale of the
KS Site for $15,000,000. That offer was to expire on December 7, 2022. Plaintiff refused this
low-ball offer.
COUNT I
Against City of Chicago
(5th Amendment Takings Clause; Section 1983)
53. The City engaged in a regulatory taking of Plaintiff’s private property without just
compensation when, on March 16, 2021, King and Mayekar, speaking for the City itself, stated
that Equinix would not get the required approvals to build its data center on the KS Site, and that
Plaintiff would never get the required approvals to build on the KS Site, because “we [King, the
54. The City confirmed its regulatory taking of Plaintiff’s private property when King’s
chief of staff, speaking for King and the City, stated in June 2022 that the City would not support
development of the KS Site, which would remain “amorphic” until the City decided what its plans
55. Prior to the City’s taking in March 2021, Plaintiff and Equinix had an agreement
under which Equinix would purchase the KS Site for $30 million, conditioned on Equinix’s ability
56. Equinix subsequently terminated its contract with Plaintiff, while the KS Site was
relegated to an “amorphic” status until the City decided on its plans for the KS Site.
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57. The City proposed that the value of the KS Site was $15 million, which is the same
amount that Goodman, through Decennial DX Management LLC, offered Plaintiff for the
58. The City’s refusal to allow Equinix to pursue its plans to develop the KS Site
effected a severe diminution of the value—from $30 million down to $15 million—of Plaintiff’s
property.
59. Further, the City’s arbitrary and capricious decision to block redevelopment of the
KS Site for any purpose while it decides how the KS Site will fit into the overall redevelopment
of the Michael Reese Site has rendered the KS Site unsaleable to any other buyer.
60. The City’s refusal to permit development of the KS Site was not designed to
COUNT II
Against Individual City Defendants
(Section 1983 – Equal Protection – Class of One)
62. The Individual City Defendants intentionally treated Plaintiff differently than
others similarly situated. Plaintiff, a property owner in the immediate vicinity of a planned
redevelopment, was intentionally treated differently by the Individual City Defendants with
63. The Individual City Defendants unequivocally stated that Plaintiff’s property
would not obtain necessary governmental approvals for Equinix to build its proposed data center
on the KS Site. Likewise, the Individual City Defendants unequivocally stated that Plaintiff would
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not obtain necessary governmental approvals to build on the KS Site and that the KS Site would
remain “amorphic” until the City decided what its plans were for the site.
64. Goodman and the Individual City Defendants engaged Equinix to locate its data
center on a Michael Reese parcel of land immediately across 26th Street from the KS Site. On
information and belief, that parcel, which is comparable to the KS Site, did not face similar threats
65. There was no rational basis for the difference in treatment between Plaintiff and
Goodman, as the parcels of property were comparable in all material respects and suitable for
66. The Individual City Defendants were motivated by illegitimate animus against the
Plaintiff.
67. By making it known to the marketplace that neither Plaintiff nor anyone else
(including Equinix) would be able to obtain necessary governmental approvals for any
development of the KS Site, the Individual City Defendants’ treatment of Plaintiff was manifestly
unreasonable and improper, was motivated by an intent to inhibit and punish the exercise of
constitutional rights, constitutes selective and discriminatory treatment, and constitutes a denial of
Plaintiff’s equal protection rights pursuant to the United States Constitution, and constitutes a
68. The Individual City Defendants acted with deliberate indifference or reckless
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COUNT III
Against the Individual City Defendants & Goodman
(Conspiracy - Section 1983 – Equal Protection)
70. The Individual City Defendants acted in concert with Goodman pursuant to an
agreement to deprive Plaintiff of its constitutional right to equal protection under the law by
thwarting Equinix’s ability to obtain necessary governmental approvals for its proposed data center
on the KS Site, by making it known that no one would be able to obtain necessary governmental
approvals for any proposed development of the KS Site, and by subsequently steering Equinix
71. The Individual City Defendants and Goodman repeatedly participated in joint
efforts to undermine Plaintiff’s contract with Equinix and Equinix’s proposed data center on the
KS Site. King, on a call that included Goodman, communicated to Equinix that the City wanted
the KS Site for cheap. King, Mayekar, and Goodman later informed Equinix that the KS Site
would never be approved and that the City had plans for the KS Site. Equinix then terminated its
agreement with Plaintiff. At the same time, Goodman and the Individual City Defendants were
telling Equinix to locate its data center on a Michael Reese parcel of land immediately across the
72. Goodman subsequently made an offer to purchase the KS Site for half the amount
73. Goodman willingly participated in the Individual City Defendants’ efforts to deny
Plaintiff its constitutionally protected right to equal protection under the law.
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74. The Individual City Defendants and Goodman acted with a calculated, deliberate,
and intentional disregard for Plaintiff’s constitutional right to equal protection under the law.
COUNT IV
Against Goodman
(Tortious Interference With Prospective Economic Opportunity)
76. Plaintiff had an expectancy that it would close on its contract with Equinix for the
Goodman’s influence pursuant to their joint venture with the City—to thwart
Equinix’s ability to obtain necessary governmental approvals for its proposed data
center on the KS Site, and thus causing Equinix to terminate its contract with
Plaintiff;
B. Luring Equinix to locate the proposed data center on the other side of the street;
and
C. Trying to muscle Plaintiff into selling the KS Site for half of the Equinix purchase
price.
with Equinix resulted in Equinix’s decision to terminate the purchase contract with King Sykes;
81. Goodman acted with the purpose of injuring Plaintiff’s business expectancy and
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employed wrongful means in doing so by conspiring with the City to: (a) thwart Equinix’s ability
to obtain necessary governmental approvals for its proposed data center on the KS Site, and (b)
make it known to the marketplace that no one would be able to obtain necessary governmental
approvals for any proposed development of the KS Site in order to drive the price down for the
82. Goodman’s conduct was willful and done in complete disregard of Plaintiff’s
rights.
(a) Enter judgment in favor of Plaintiff on Count I, finding that the City violated
plaintiff’s constitutional rights by taking the KS Site for public use without just compensation;
(b) Enter an order on Count I for damages and compensation for the value of the
(c) Award compensatory and punitive damages on Count II against all Individual City
$15,000,000.00;
(d) Award compensatory and punitive damages on Count III against all Individual City
excess of $15,000,000.00;
(f) Award Plaintiff its reasonable attorney fees, costs, and expenses pursuant to 42
U.S.C. §§ 1983 and 1988, and any other applicable law; and
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(g) For such other and further relief as is deemed appropriate in the circumstances.
JURY DEMAND
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