A Kane County judge this week ordered the developer of the Elgin auto mall off Interstate 90 to repay $23.3 million as part of a foreclosure lawsuit or to begin selling six vacant outlots to repay the debt.
The decision by Judge Leonard Wojtecki came Thursday against Randall 90 LLC as part of foreclosure proceeding initiated by U.S. Bank.
Contact information ( * required )
The auto mall, which was approved in September 2007 by the city, has one client, McGrath Honda, but others have expressed interest or are seeking to build there soon.
According to the court order, if Randall 90 LLC cannot repay the $23.3 million, it will be charged $7,400 a day in interest and should sell six vacant outlots through public auctions in coming months. Liens also would be placed on the property of individuals in the LLC.
Attorneys for noth Randall 90 LLC and the bank all refused comment outside of court.
"I'm definitely interested in learning what the impact will be for Elgin because that particular piece of property is very visible and a prime piece of real estate," Elgin Councilwoman Tish Powell said.
Rick Kozal, Elgin assistant city manager, said the foreclosure and possible sale of outlots will not change the use of the land.
Kozal noted the development agreement between the city and Randall 90 LLC mandates the outlots must be used for car dealerships no matter what.
Land there, for example, can't be sold and used for a grocery store or a restaurant.
"The key word within this is that (the auto mall) development runs with title of the property," Kozal said.
Dealerships at the auto mall will receive a 25 percent sales tax rebate from the city though 2029. Tax incentives are a common tool used by cities for auto dealerships.