Luxury home project in Libertyville on hold?
The elegant building at the end of School Street is exactly what Libertyville leaders envisioned years ago as a complement to the nearby downtown area.
Residents of the School Street District Brownstones and Condominiums could walk to shops or the train from a $40 million landmark neighborhood built by The Hummel Group Ltd., of Palatine.
When work on subsequent phases, including redevelopment of the former Central School, will continue is uncertain, however, as the builder faces financial problems.
In late February, Libertyville Bank & Trust Co. filed a foreclosure proceeding against School Street District LLC and others, citing an outstanding debt of more than $5 million.
In late March, a court-ordered receiver was appointed for 130-148, 151, 153-155, 157, 159, 161 and 173 School Street, and Hummel was ordered to turn over bank accounts, contracts for the property and other financial information.
Calls to Hummel were directed to a specific representative who was unavailable for comment. Lawyers for both sides either declined or could not be reached for comment.
In a response to the motion to appoint a receiver, lawyers for Hummel noted the developer "has been committed to enriching the areas in which he develops" and that the name has become a "a signature of excellence." Hummel also has projects in Palatine, Lake Zurich and Hawthorn Woods.
The response also described receivership as a "drastic measure" that is limited in scope and not necessary in this instance.
The Libertyville project calls for a total of 31 brownstones in four phases and 12 to 16 condos in the old school.
One building with five brownstones has been completed, and four brownstones have been sold. One unit also has been sold in a building to be constructed, according to court documents. Prices range from $803,000 to $901,000.
As it stands, the roads and utilities, including decorative streetlights, are installed and landscaping is springing to life in front of the completed building.
A sign advertises pre-construction pricing on the next phase but the sales office is closed and remaining lots are vacant. The next step is unclear.
Village Administrator Kevin Bowens said there had been talk of reconfiguring some of the units for quicker sales.
"We indicated we would work with them to keep the project moving along but nothing ever came of it," he said.
Mayor-elect Terry Weppler said many projects are moving slowly because of the economy.
"Once a receiver is appointed that doesn't mean a development will fold," he said. "Could it take a longer period of time? Potentially, yes."
Over about 15 years, elected leaders bought homes on School Street as they became available.
Eventually, the village owned and cleared nearly 4 acres and sought requests for proposals from builders. Hummel was chosen from among several companies in early 2005.