Economy delays Palatine projects

Two Palatine projects previously poised for the fast track have stalled due to the sluggish economy.

Still, the developers of AC Plaza and Eagle Point Estates hope to eventually complete the projects with time extensions the village is granting.

"It's a sign of the times," Councilman Jack Wagner said. "We're having some economic difficulties. Things are changing and we have to be somewhat flexible."

AC Plaza, a proposed two-story building containing a commercial shopping center, office space and restaurant, was granted a second 18-month extension at Monday's village council meeting. Originally approved in April 2005, owner Tony D'Agostaro sought an extension in spring 2008 because planned developments are to be completed within three years.

D'Agostaro said in spring 2008 he planned to break ground within 120 days, but no visible progress has been made and only gravel covers the site on Northwest Highway near Colfax Road.

In a letter to Village Manager Reid Ottesen, the owner wrote the extension "will give us a better understanding on where this financially difficult economy will be heading."

A bulldozer parked there was moved to make the property less of an eyesore, but truck drivers occasionally park their semis there at night. Neighbor Scott Walent isn't a fan of the overall appearance, noting a fence in disrepair, mud and garbage. He asked the council to consider turning the parcel into green space.

Ottesen said he'll discuss barring the trespassers and maintenance issues with D'Agostaro to make sure the property is compliant.

About a half-mile to the north sits an unfinished subdivision known as Eagle Point Estates on Grove Avenue. Of the nine single-family homes planned, only one has been built and it remains unsold.

The project was supposed to be finished by September 2008. Capital Homes Inc. President Gary Doles was granted a three-year extension. On Monday, the village went a step further, granting relief from certain conditions in the planned development.

First, smaller and therefore more affordable homes can now be built. Sale prices of the units that once ranged from $684,000 to $740,000 will be replaced by a product line costing between $484,000 and $599,000.

And to generate activity, other builders are now allowed to build on the site. They'd be required to come before the council for approval. The board also granted Doles request that the widening of Grove Avenue and other improvements to the road be delayed.

"I don't think anyone could have foreseen this crisis within the housing market," Doles wrote the village.