Huntley, developer put end to lengthy suits
The last remnants of Huntley's legal fight with a suburban developer could be resolved as part of a settlement agreement the Huntley village board approved Tuesday.
Under the agreement, Huntley will attempt to refinance about $14 million in bonds issued in 1995 to pay for infrastructure in the village.
The refinancing would enable the village to get a lower interest rate and pay off the bonds faster.
If the village pays off the $14 million in debt, Horizon Group Properties will get paid for at least some of the bonds it holds before the bonds expire in 2016.
In exchange, Horizon will drop its outstanding lawsuits against the village.
Those suits claim the Regency Square shopping center, west of Route 47 at Kreutzer Road, is using water and sewer service that was reserved for Horizon and that a shopping plaza across the street owes Horizon money for water and sewer access.
If the settlement agreement proceeds as planned, it will end 10 years of litigation between the village and the developer.
"We just came to the conclusion that it makes sense for everyone if we can move past the litigation and at the same time, refinance these bonds," Village Manager Dave Johnson said.
If Huntley is unable to find a buyer for the $14 million in bonds by June 1, the settlement will be void.
Even if the village is able to refinance the debt, there is no guarantee the bonds will be paid off in time for Horizon to collect on its bonds.
That's because all of the bonds will be repaid with new property and sales tax revenue - which have both been stagnating in the village as a result of the economic downturn.
In the 1990s, Horizon helped develop the Prime Outlet Mall, the Huntley Auto Mall and Del Webb's Sun City - which together generated millions in property and sales tax revenue for the village.
Horizon sued the village in 1999 and 2006, claiming Huntley had marked too much land for business use in the village. The developer dropped the bulk of those suits in 2007 - leaving the claims addressed by Tuesday's settlement.
"This settlement best serves the residents of Huntley and allows both parties to put our differences behind us and to work side-by-side for the betterment of the community," Horizon CEO Gary Skoien said in a statement.
Huntley trustees voted unanimously to approve the settlement after meeting behind closed doors for 15 minutes.