Company behind Algonquin development files for bankruptcy
The developer behind Riverside Square, a swank, upscale retail and condominium project under construction in downtown Algonquin, has filed for bankruptcy.
Algonquin-based Aspen Homebuilders Inc. filed under Chapter 7 of the federal bankruptcy code this week, detailing more than $43 million in debt associated with the project, according to court documents.
Owners Bruce and Patricia Hawkins are asking that a bankruptcy trustee liquidate their $573,884 in assets to help pay off their creditors, documents show.
The building, at routes 31 and 62, is slated to offer 54 condominiums with a sale price around $350,000 on a block that once occupied a garage and storage sheds.
Once completed, Riverside Square also would feature four stores on a ground-floor plaza and a water fountain in which children could play. The village board approved the plan in late 2006.
"In one swoop, it makes a major change to one ugly corner of our village," Village President John Schmitt said at the time.
On Wednesday, Schmitt said he was not surprised at the bankruptcy filing.
"I think the financial situation in this country is causing a lot of projects to have some difficulty," he said.
Village officials initially noticed work on the development had stopped in October and made it their business to see what was going on with the developer and the bank that issued the loan.
"We've stayed in touch with the parties," said Village Manager William Ganek, characterizing the issue as a private matter between the developer and the financial institution.
Bruce Hawkins could not be reached for comment Wednesday.
What the filing means for the building, an important piece of the downtown's revitalization, is an open question.
But as recently as Tuesday, workers were closing the roof and other openings to prevent water from coming in, Schmitt said.
Officials remain confident that the project will one day come to fruition, whether Aspen or another developer completes it.
"The goal is just to have it finished," Ganek said.
"We need to get it done and we are going to do everything that we can to help in that process," Schmitt added.