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A long running disagreement between Blue Island’s city leadership and the head of a nonprofit faces more tension as the two parties disagree about what should happen to The Libby, McNeill & Libby building at 13636 S. Western Ave.

John Dunleavy is the president of Affordable Recovery Housing which, along with Residence for Patriots Services, owns the massive structure. The building was donated to the nonprofits after the longtime food packaging company shut down and vacated the space. Dunleavy has worked to renovate the structure ever since his group got the keys.

Dunleavy’s plan is to reopen the space as a “fun factory” for people recovering from addiction and customers, with outdoor paintball courses and a variety of indoor attractions such as batting cages, a wrestling cage and ax throwing stations.

“We help homeless people, we help guys that have addiction problems,” said Dunleavy. “They don’t have a lot of things to do with their idle time. This is why we built this.”

But the space is causing a headache for the city. It is messy with many unlit rooms filled with leftover household items Dunleavy said he hopes to donate. The paintball target wall has images of former Green Bay Packers quarterback Aaron Rodgers as well as the faces of political figures for stress relief. Dunleavy said people can bring images of their ex-partners to add to the wall.

In May 2022, Blue Island filed a cease and desist letter calling for the facility to be shut down.

“As you know, the Libby has no water and the property has been deemed a dangerous, unsafe, and unoccupiable property,” the letter, filed May 23, 2022, and addressed to Dunleavy, stated. “You do not have an occupancy certificate for this building nor a business license for the Affordable Fun Factory.”

When Dunleavy failed to comply with the order to close, the city in June 2022 filed a motion for injunctive relief to prevent the business from continuing. Dunleavy has argued the business does not need its own license or permit because he is using the licenses attached to the overarching nonprofit Affordable Recovery Housing.

The court ruled against Dunleavy in June 2022, preventing the business from continuing. But in the year since, Dunleavy continues to plan to reopen, causing disagreement between the two sides. Another ruling is expected later this month.

Dunleavy also said people are sleeping in the building.

This is not the first time Dunleavy and the city of Blue Island have clashed. In 2018, administrative hearings were held to try and resolve the 131 different complaints brought by building inspectors against Affordable Recovery Housing and its associates.

The city provided copies of the legal discourse but declined to comment further.

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