Sale of Riverside Square still a possibility

No closing took place last week for the sale of Riverside Square in Algonquin, but a potential buyer is still interested in the property, Algonquin Village Manager Bill Ganek said.

Developer John Breugelmans has been interested in the property for about a year, but he said last week that there were “issues” regarding the multiple lien-holders connected to the stalled construction of the mixed-used development at Routes 31 and 62.

When the original builder defaulted on his loans, the vacant property went into the possession of Amcore Bank, which was later taken over by Harris Bank. Breugelmans would only acquire the bank’s interest in the property.

“I think the buyer and the bank are still talking about closing,” Ganek said. “It’s not a dead issue. I don’t know what the issues are, but it’s still pending.”

A court-ordered auction on Jan. 20 set a minimum bid of $1.25 million for the sale of the property, but there were no buyers. Breugelmans said in January he thought the property was worth much less.

Breugelmans and Amcore/Harris Bank attorney Scott Kenig did not respond to requests for comment.

Crystal Lake attorney Joe Gottemoller, who represents lien-holder Alcom Building Components, says the gross amount owed in liens is $2.1 million. Those lien claims would remain pending even if Breugelmans closes with the bank. “If the building gets torn down we’re not getting any money,” he said. “Hopefully some day the building gets built.”

Meanwhile, last week’s court hearing for a lawsuit filed a year ago by the village asking for the court-ordered demolition of Riverside Square was continued to April 8.