Bank files suit over Algonquin project loan
A prominent developer, his 238-home Algonquin project and a contractor have been sued, with a bank alleging the trio defaulted on a multimillion-dollar loan.
Fifth Third Bank Chicago filed suit Feb. 11 in McHenry County circuit court, naming Grand Reserve LLC; Jeffrey Pelock, founder of Grand Pointe Homes; and Belvidere-based R&D Thiel Inc.
Grand Reserve LLC, Pelock and R&D Thiel were responsible for building the age-restricted subdivision in Algonquin at County Line and Boyer Roads, the lawsuit says.
The lawsuit alleges that the trio have not made payments on the bank's loan since last fall and says they now owe $9.39 million.
While Elgin-based Grand Pointe Homes oversaw the Grand Reserve development, it is not named as a defendant in the lawsuit.
The partially developed project was to include at least 76 townhouses, 59 duplexes and 44 single-family homes, said Algonquin Assistant Village Manager Jeffrey Mihelich.
The village approved the development's final plans in 2003, Mihelich said.
Attorneys representing Fifth Third Bank could not be reached Wednesday.
Pelock did not return a phone call seeking comment.
A status hearing has been set for June 23.