Des Plaines mayor wants answers from condo developer

Des Plaines Mayor Tony Arredia has summoned a condo developer to his city hall office on Thursday to discuss the state of the project amid reports of a foreclosure lawsuit.

Arredia said he wants to talk about the status of the nearly completed 60-unit building at 595 S. River Road in the downtown.

Fifth Third Bank has filed a foreclosure suit in Cook County Circuit Court, while the developer is seeking to extend the loan so the building can be completed as rental units. Under construction since 2006, the building is 90 percent finished.

"We want to make sure that building's going to open," Arredia said.

Dr. Rashmi Patel, managing partner of developer Sphinx Chicago Properties, said the mayor's secretary called him on Monday to set up a meeting.

There have been 33 units sold in the building, but the housing crisis has hit the project, Patel said.

"It has put me in a crushing position," Patel said.

Now, he hopes to avert foreclosure by switching the project to rental apartments.

He envisions a "rent-to-buy" scenario.

To accomplish this, the 33 condo sales will have to be canceled, an attorney for the developer said.

Des Plaines officials have other questions for Patel, such as whether rentals are allowed under the city's agreement with the developer.

The city approved a planned unit development agreement calling for condos, not a rental building. City Attorney David Wiltse is looking into the legality of such a change.