Algonquin unsure if bank takeover affects Riverside Square suit

Now that Harris Bank has taken over Amcore Bank, Algonquin officials are unsure how it affects the lawsuit they filed this spring against Amcore over the incomplete Riverside Square in the heart of downtown.

One thing they're certain of: the suit is still on.

"I don't have any information as to whether Harris is taking over that asset or not," Village Attorney Kelly Cahill said. "I'm proceeding as if nothing has happened."

Cahill added that Amcore has been told to "defend the lawsuit until they hear back from the FDIC."

Scott Kenig, the attorney representing Amcore in the lawsuit, said he could not comment on pending litigation.

The Federal Deposit Insurance Corporation recently closed all 58 branches of Amcore Bank, with Harris Bank taking over its operations.

In March, Algonquin asked a court to order that Amcore demolish Riverside Square.

The development, which broke ground in 2008, was to be an upscale residential building with 54 condominium units and 12,000 square feet of ground-level retail space at the northeast corner of Routes 31 and 62.

Amcore acquired the property last year after the building's original owners defaulted on the loan.

For months, the village and Amcore had been trying to resolve outstanding issues that include the failure to complete a roof, windows, exterior brick, fire protection and a weather-tight shell that would have protected the building from the elements.

The village had been seeking fines for the work that dated back to late spring 2009 and ranged between $50 and $1,000 a day.

Officials have since bundled that complaint with the demolition request.

"We don't know if the Harris Bank thing changes the ownership of Riverside Square, but it doesn't really matter because the village is still moving forward with its litigation," said Community Development Director Russ Farnum. "And that automatically applies to any new owners of the building."