Plans by the new owner of basketball Hall of Famer Michael Jordan’s former mansion to sell $1 million co-ownership interests in the property appear legally permissible, Highland Park officials said Monday.
However, city officials’ statements, which were made in response to concerns raised at a City Council meeting by a resident and council candidate, came with an important caveat: While property co-ownership is perfectly legal — and even operating a property as a time share in Highland Park is legal — commercial ventures on residential properties are not allowed, and the city continues to mandate significant limitations on short-term rentals.
“This particular (use), if I understand it correctly…they’re dividing the ownership into different shares. Any of us can do that with our property. That’s not a short-term rental — that’s really not even a timeshare,” Steven Elrod, Highland Park’s city attorney, said at the Monday meeting in response to concerns raised by Kevin Cullather, a resident and City Council candidate. “So even if we did want to regulate it, we have to look very carefully and not react to newspaper articles. We’ll look and see what it is, and we’ll see if it’s something we can regulate or cannot regulate.”
According to a news release, Lincolnshire resident John Cooper, who is a general partner with Lincolnwood-based HAN Capital, is offering an unspecified number of co-ownership shares in the now-former Jordan estate, which His Airness had on the market for more than 12 years before selling to Cooper last month for $9.5 million. Jordan once had sought as much as $29 million for the estate, which consists of 56,000 square feet, 15 bathrooms, four half bathrooms, a regulation-sized basketball gym, a tennis court, a putting green, a cigar room and a circular infinity pool. The mansion sits on 8.4 acres.
Co-owners would be permitted to hold “private events” on the property, according to the Champions Point website. “Co-owners will have the ability to host larger events, subject to management approval, for an additional fee,” the site states. “We strive to be good neighbors and responsible members of the community, which includes avoiding loud noise late at night and adhering to all other local regulations.”
On Jan. 13, Cullather appeared before the council to take aim at Cooper’s plans, referencing a Champions Point news release that highlighted that co-owners could hold events on the property “such as weddings, corporate retreats, holiday parties, sports watch parties, Bar Mitzvahs, family reunions, charity galas and more,” along with elevated levels of experiences through “private chefs, pre-purchased food and drinks, luxury transportation, local event experiences, on-site services and entertainment.”
“From my perspective, this is clearly a commercial venture within a residential neighborhood,” Cullather told the council. “It is possible that the new owner was simply excited about owning this unique Highland Park property and got brainstorming in front of the media without consulting his attorneys or others who are knowledgeable of Highland Park’s code. I don’t think so. He spent too much money to do that. But I believe that these uses that he’s suggesting are not what was envisioned by the City Council when they adopted the short-term rental provisions within our code.”
Highland Park in 2022 approved limiting short-term rentals of residential properties to no more than 45 days in any calendar year, and bars short-term rentals from ever being occupied by more than 12 people at a time. Under Cooper’s plans, co-owners would have one week of exclusive use on the property each year, with a responsibility for covering 2 percent of the property’s total annual operating expenses.
In a Jan. 10 email, City Manager Ghida Neukirch confirmed that her staff has met with the new owner of the property and provided details to the owner about the city’s regulations surrounding short-term rentals. She added that as the home is zoned for residential, creating an event space would not be permitted. She also said that earlier, the city staff had encouraged prospective buyers interested in a more commercial use and zoning change “to consider an alternate access to the property so as not to negatively impact the neighboring residents.”
While finding alternate access to the property is not impossible, it would not be easy. The former Jordan estate is ensconced deep within the Architecture Point subdivision and is bordered on one side by a nature preserve and on another by railroad tracks. In theory, through land assembly, an owner could gain alternate access to the estate from Half Day Road or from Skokie Valley Road, assuming that a railroad would allow a crossing.
Neukirch made clear at the Jan. 13 meeting that while the use of a residential property for commercial purposes absolutely is not permitted, private events at homes are not subject to city regulation.
“So if someone is having a wedding at their home or a birthday party, something like that, they don’t need special approval from the city,” she said. “But if they now are renting it out where people can host a wedding there or a mitzvah or some other celebration or event, that would not be permissible. We will certainly enforce any violations of city code accordingly.”
Elrod said on Jan. 13 that “no matter what, our (zoning) code will be enforced.” However, he cautioned the council and residents that terms in the code are very carefully defined, so Cooper’s proposed use “may or may not fit within those terms” and “may or may not be applicable.”
Representatives for Cooper did not respond to a request for comment.
Highland Park’s community development director, Joel Fontane, told the council on Jan. 13 that the city staff had met with Cooper over the holidays.
“We’ll follow up with him based on these articles and what they’ve said, to find out exactly what the intentions are,” Fontane said.
Goldsborough is a freelance reporter.
