Residents, Sugar Grove ponder future of unfinished community

Marsha Green and Merry Carey say they moved to Settlers Ridge not only for the variety of attractive homes, but also for the open spaces and natural beauty preserved by design.

Now the residents of this once high-profile Sugar Grove subdivision say they feel abandoned and betrayed by developer Kimball Hill Homes. But a spokeswoman for the builder says the company made it clear that the development is for sale, and said they are still honoring warranties.

A few short years ago, Kimball Hill Homes was successfully negotiating with the village of Sugar Grove to build 960 homes on 535 acres just south of Route 56 and west of Gordon Road. Plans called for a school, parks and even a fire station. There was a proposed site for a church.

Earlier this year, the developer filed for Chapter 11 bankruptcy. Today, only 110 of the originally proposed 960 homes have been built. An additional 110 lots are empty.

Residents are concerned that the undeveloped lots have been overrun with weeds and are being used as a dumping ground. And they worry that the blend of natural beauty and homes in this mixed-use development won't be expanded, but will be cheapened by developers moving in to build inferior homes and make a quick sale.

"My frustration is they led us to believe they would finish this development," said Merry Carey, who owns a duplex there. "But suddenly they came out and bulldozed five houses that were started. The foundations are just a pile of rocks now. I know they filed for Chapter 11, but they're still in business. We weren't told they were ceasing construction here. At the same time, they're opening other developments."

"It's nerve-wracking," said Marsha Green, who has lived in a four-bedroom house in Settlers Ridge with her husband and son since March 2007. The home next to hers is vacant and there is a for sale sign in the front yard.

"When we moved in there was a school planned, and a community pool and a workout facility. But we don't have them. But there are three ponds and they did a beautiful job of tying in the open spaces with the natural landscape. We're not panicking. We realize a home is a long-term investment."

Anita Marie Laurie, a spokeswoman for Kimball Hill, said letters were distributed to homeowners in Settlers Ridge in June, stating the company's intent to sell off the development. She also said there is a two-year warranty on homes that is still being honored, and residents can easily contact Kimball Hill in a number of ways, including through customer service.

But warranties don't cover the undeveloped lots.

Both Carey and Green said they are encouraged that Sugar Grove public works crews have cleared out weeds and debris after the village held an informal meeting for residents on Aug. 12 that was attended by about 100 people.

"We wanted to keep the residents up-to-date on what's happening," Village President Sean Michels said of the meeting. "Their main concern is having the trash removed. They also don't want to see another developer come in and build just anything. We assured them that wouldn't happen."

While residents were told at the meeting of Kimball Hill's intent to sell, they were assured that the annexation agreement between Kimball Hill and the village specifies what kind of homes can be built, Michels said. Any variance requested by another developer would require a public hearing.

And Michels said the village has been in contact with Kimball Hill on enforcement of property maintenance ordinances.

"But there's a fine line between working with Kimball Hill on maintaining the property and complicating the issues," Michels said.

Michels stated that the village will keep residents informed through e-mail blasts. Another meeting will likely be held in November.

In the meantime, residents continue to enjoy their homes while worrying about the future.

"We're hopeful that a developer will come in when the market turns around," Carey said.

"Maybe by the time they have the school built we'll be grandparents," said Green, the mother of a high school freshman.