Algonquin plans to levy fines on Riverside Square project

The village of Algonquin is seeking various fines from AMCORE Bank related to the incomplete Riverside Square project in the heart of the downtown, an official said this week.

The village is hitting the bank with eight property maintenance and building code violations that carry fines between $25 and $1,000 per day, Community Development Director Russ Farnum said.

These fines date back to the late spring or early summer when the village was first discussing the work with AMCORE. The meter is still running on the fines. The biggest violation involves the bank's failure to install a weather-resistant exterior wall that would have protected the building from the elements, Farnum said.

"We will be happy to continue working with them, but we gave them until the end of the year to finish the weather-tight structure," Farnum said. "It's obvious they're not going to do that, so we had to continue taking our enforcement action."

In September, the bank stabilized the structure by adding a permanent roof and windows and replacing weatherworn structural components.

But village and bank officials are still locked in negotiations over who will complete the building's masonry work.

In a statement, the bank said, "AMCORE Bank is working with the city of Algonquin to come to a resolution regarding Riverside Square and we are exploring all options. Unfortunately there is not a quick or easy solution."

The hearing is scheduled for Jan. 27 and it is the officer presiding over the hearing who will determine how much money the bank owes.

Riverside Square, an upscale residential building still under construction at Route 31 and Route 62, was to include 54 condominium units and 12,000 square feet of ground-level retail space.

But construction came to a grinding halt in January after Aspen Homebuilders, the Algonquin-based firm hired to build the project, filed for bankruptcy protection after defaulting on a $13.5 million loan from AMCORE to complete the building.

AMCORE began foreclosure proceedings against Aspen, but dropped them in exchange for Aspen surrendering the deed to the bank.