Developer wants rentals, not condos, for Riverside Plaza in Algonquin
Citing poor housing-market conditions and a lack of financing options, the developer of Riverside Plaza in Algonquin petitioned the village board to allow him to change the planned condo development into rental apartments but got a lukewarm reception at best.
Developer John Breugelmans, principal of Riverside Plaza LLC based in North Barrington, told the Algonquin committee of the whole Tuesday night that he has not been able to get the $8.5 million in financing he needs to complete construction on the building he purchased half-finished in March 2010. Breugelmans said he has about $3 million in cash.
When he bought the property, a New York-based company was interested in financing but pulled out after an appraisal, he said. Breugelmans said the only way he can get a loan is by turning the four-story building at routes 31 and 62 in downtown Algonquin into rental units.
“There is nobody in this whole world willing to lend us money if you keep it as a condo project. As a rental project, there's a lot of them,” he said.
However, architectural plans would have to be modified to increase the number of units from 54 to 69 because the current plan includes a few apartments that would be unreasonably large in a rental market, he said.
The suggested rent of the apartments would average $1,420 to $1,985, including one parking space, virtually guaranteeing that renters' incomes would have to be $50,000 or more, he added.
Trustees John Spella and Debby Sosine said they were against any plan that calls for rental units.
“This board has gone out of their way to make arrangements for you ... and right now you're changing the whole ball of wax,” Spella said. The village of Algonquin has agreed to build new sidewalks flanking the building.
Trustees Jerry Glogowski, Robert Smith, Jim Steigert and Village President John Schmitt said they would consider allowing apartments, but only if the original plan for 54 units remains unchanged and provisions are put in place guaranteeing the developer would use high-end materials and appliances. Trustee Brian Dianis said he'd consider apartments but didn't specify which number, if any.
To formally begin the process of changing the plan for Riverside Plaza, Breugelmans would have to go through the planning and zoning commission first. After the meeting, Breugelmans said he hoped trustees would change their mind, perhaps after discussing the issue more with Village Manager Bill Ganek.