Court rules in city's favor in casino lawsuit

Aug. 17—DANVILLE — Coles County Circuit Judge Mark Bovard has ruled in the city's favor in a casino lawsuit.

Mervis Industries sued the city of Danville over rezoned property for the Golden Nugget Danville casino, which is now open.

Mervis Industires had asked for a declaratory judgment that the Danville City Council's zoning approval is invalid pursuant a LaSalle National Bank of Chicago vs. County of Cook case.

In May 2022, the case was transferred to Coles County due to local circuit court judges believing they were too close to the city and the Mervis family.

In a court memorandum opinion and judgment on cross motion's for summary judgment released on Thursday, the court finds and orders that the passing of a zoning petition to rezone 204 Eastgate Drive "was not arbitrary and capricious" and not a violation of Mervis Industries Inc.'s constitutional rights, according to Bovard. This was relating to Count I, as-applied violation of substantive due process.

On Counts II, III IV and V, the court also grant's the defendant's, the city's, motions and finds that the passing of the zoning petition doesn't constitute spot zoning, didn't violate the plaintiff's procedural due process rights, and a zoning ordinance text amendment was not a facial or an as-applied violation of the plaintiff's substantive due process rights.

Danville Mayor Rickey Williams Jr. is pleased with the news, stating that the city prevailed over Mervis Industries on every count and received a motion for summary judgment.

Williams has been on vacation and was unavailable to immediately discuss the matter, but he sent a statement to local media.

"In a David versus Goliath-like battle over the future of the city and who will rule it, the people or special interests, the city of Danville has prevailed! We are thrilled that Judge Bovard issued a motion for summary judgment dismissing Mervis Industries' unfounded claims regarding zoning of the Golden Nugget Danville," Willliams stated.

Mervis Industries Inc. filed the lawsuit in Dec. 2020, objecting to the new casino location and rezoning under a new plan for the casino's initial phase.

A groundbreaking for the casino occurred in April 2022.

Williams previously said the city council operated within its legal authority as a home rule municipality in changing the zoning for the casino site.

The court says the city council approved the rezoning petition, "reasonably related to a legitimate government interest."

"While one may initially question the logic of locating a casino next to a metal recycling business, it is also not for the court to substitute its judgment as the city council is best suited to make this decision," the court ruling stated.

"In sum, this court finds that it was not unreasonable for one to conclude that the rezoning at 204 Eastgate offered significantly more benefits to the area and the city than hardships to the plaintiff (Mervis)," the court ruling stated.

History

The original Complaint for Declaratory Judgment stated "On Sept. 15, 2020, the Danville City Council voted to approve the rezoning of 204 Eastgate Drive in Danville, Illinois from 'General Industrial' to 'General Business' to enable the placement of a casino in the middle of a heavy industrial corridor. In approving the rezoning application for 204 Eastgate Drive, the Danville City Council ignored the Danville Area Planning & Zoning Commission's finding of fact and final determination that 204 Eastgate Drive should not be rezoned to 'general business.' Among other stated reasons for denying the rezoning of 204 Eastgate Drive, the Planning & Zoning Commission found that the proposal was inconsistent with both Danville's comprehensive plan and zoning ordinance, incompatible with existing uses and existing zoning classifications of property within the area, and inconsistent with the character of the surrounding area."

"Mervis Industries owns three facilities on Eastgate Drive, including properties immediately adjacent to 204 Eastgate Drive. Since the early 2000s, as part of its metal recycling operations, Mervis Industries has operated a scrap metal processing facility at 222 Eastgate Drive, immediately south of 204 Eastgate Drive. Mervis Industries brings this declaratory judgement action to invalidate the Danville City Council's rezoning of 204 Eastgate Drive... because that body acted arbitrarily, capriciously and unreasonably in approving the rezoning application."

"Accordingly, Mervis Industries asks this Honorable Court to declare that the Sept. 15, 2020 approval of the rezoning request for 204 Eastgate Drive is invalid."

The lawsuit also stated, "In approving zoning petition #279, the Danville City Council incorrectly determined that a casino is permitted under the B-3 General Business zoning district."

"The Danville City Council's approval of zoning petition #279, which carved out a portion of a heavy industrial corridor that was intentionally designated to keep the public away from such operations, is intended to create an attraction and steer the public towards heavy industrial operations,and is wholly inconsistent with the comprehensive plan and zoning ordinance."

"Designating 204 Eastgate Drive as B-3 general business will: diminish the value of neighboring properties and place an undue burden on public infrastructure; (and) negatively impact the public for the benefit only of the property's current owner. 204 Eastgate Drive is not suitable for a casino or for the purposes set forth in B-3 general business because that use is inconsistent with the use of the surrounding properties in a heavy industrial corridor. There is no community need for a casino located at 204 Eastgate Drive, as there are other viable locations for a casino in Danville."

At the zoning commission meeting, Michael Mervis voiced concerns about parking, traffic issues with semi-trucks, and loud industrial sites near the casino site.

Some zoning commissioners who voted against the rezoning were worried about the future uses of the site with the zoning change, and the increased traffic at that location.

One of the zoning commissioners who voted against it was Ted Vacketta. He recused himself from voting on the previous casino zoning petition on a property closer to the interstate, owned by Riverbend Development, Lou Mervis heirs, and with a different development team, due to Vacketta's employer, Mervis Industries' financial interest in the project.

The city council voted 10-0 to approve rezoning 204 Eastgate Drive from I2 general industrial zoning to B3 general business zoning for Danville Development LLC's proposed casino.

Due to the rezoning request being denied by the Danville Area Planning and Zoning Commission, the rezoning needed two-thirds vote of the city council, or 10 of 14 aldermen, to be approved.

Ward 5 Alderman Mike Puhr, who was on the local casino steering committee, previously said the temporary casino location change came about when the price for the Mervis land near Interstate 74 became too expensive. The Mervis' asking price increased from $3 million to $12 million. A $6 million offer was turned down, Puhr said.