Sale of Algonquin's Riverside Square project murky

A potential Friday closing for the sale of Riverside Square, the partially-built development in the heart of downtown Algonquin, was in question late Thursday.

Developer John Breugelmans is interested in buying the property for an undisclosed amount, attorney Scott Kenig said Thursday morning during a hearing before Judge Michael Caldwell in McHenry County Court. Kenig represented Amcore Bank, which came into possession of the property after the original builder defaulted on the loan. Last year, Amcore was taken over by Harris Bank.

However, Breugelmans said Thursday night the closing was “in question” because of issues raised by the multiple lien-holders involved in the case. He declined further comment.

Breugelmans' company, Lakeland Asset Management, has a mailing address in Des Plaines.

In January, Breugelmans said he had been interested in buying the property since March 2010, but did not think it was worth the $1.25 million minimum bid set by a court-ordered auction.

The auction did not produce successful bidders at a hearing Jan. 20.

Friday's closing would only affect Harris Banks' interest in the property, not the lien-holders, court-appointed receiver Michael Kaplan said. Those liens, however, would have been taken care of if the sale had taken place through the auction, he said.

One of the attorneys said there are about $2 million worth of liens.

A separate lawsuit filed by the village of Algonquin seeking the court-ordered demolition of Riverside Square is scheduled for a hearing 9 a.m. today in McHenry County court. Village attorney Kelly Cahill declined to comment on how a successful closing would affect the lawsuit.