Renovation or demolition: Winnetka’s fight to preserve historic homes

Tearing down older homes to make way for more modern housing is not a new trend, but it is on the rise in Winnetka with the recent teardowns of several historic lakefront mansions. Community preservationists are fighting to save these grand buildings, sometimes unsuccessfully, begging the question of whether there is a way to find a balance between preservation and development.

While some communities have strong preservation laws, the demand for modern housing often outweighs historical protection efforts. Residents and preservationists continue to advocate for protecting historically significant structures to maintain their neighborhoods' unique character. 

The Clement Stone Mansion at 445 Sheridan Road is the latest property under a demolition order by new owners, Go Health CEO Vijay Kotte and his wife, Shiraz. The couple purchased the home through a trust in 2023 and told The Record North Shore that they intended to demolish the house from the day of purchase to build a French-style home they believe would better complement the neighborhood.

Billionaire Justin Ishbia, head of Shore Capital and co-owner of the NBAs Phoenix Suns, has also stirred the teardown trend. The lakeshore landscape has been significantly impacted to make way for a 68,344-square-foot mansion. In a 2023 Crain’s Chicago Business article, the Ishbias revealed they purchased three homes for demolition for the project.

"How much more history and character that makes (Winnetka) a special place can we afford to lose?" said Jack Coladarci, who chairs Winnetka's Landmark Preservation Commission, in an interview with Crain’s. 

Leo Birov, owner of Heritage Luxury Homes, tells Crain’s that the teardowns are a consequence of the region's allure to affluent homebuyers. "You cannot give those old houses big windows, 12-foot ceilings, and energy solutions like geothermal heat. Living without those modern amenities is not what people want when spending the money they spend to live on the North Shore.”

In February, The Record North Shore reported that Winnetka’s Village Landmark Preservation Commission urged Kotte to renovate rather than demolish, citing the importance of preserving historical properties. The commission also expressed concerns about the number of similar homes in the area and asked for more details on the house’s condition. The Kottes told the Chicago Tribune that renovating the home posed challenges, including foundation issues and the cost of significant repairs.

The Kottes also told the Tribune that they have “continued to go through our process to figure out the best plans” for the former Stone mansion. The couple sold their current $3.17 million Winnetka mansion in early March. Kotte added that his sale of the newer mansion “is not correlated” with plans for the lakefront site, noting that it was a “good market opportunity to sell my house.” They are not currently residing in the Stone Mansion.

The Landmark Commission can request a historical impact study to protect Winnetka's historical properties. Landmark boards do not have the authority to prohibit demolition; they can only delay it. Winnetka's 270-day delay "is supposed to give us time to try and find a better opportunity" for the threatened property, Jack Coladarci, who chairs Winnetka's Landmark Preservation Commission (LPC), told Crain’s, “But we're only supposed to impose the delay if it looks like there's a chance (the owners) might change their mind." 

According to the Record North Shore, the Winnetka Historical Society has provided preliminary research supporting the mansion's historical and architectural value. The LPC has not yet scheduled a meeting to review the completed impact study, and the final decision on the demolition request remains pending.