Developer misses deadline for Lake Zurich downtown plan

The developer of Lake Zurich's planned downtown redevelopment project missed a Jan. 1 deadline to deliver $12.5 million, officials said Monday.

“That date came and went,” Village Administrator Bob Vitas said.

The missed payment essentially voids the deal Lake Zurich officials had struck with David Smith and his Equity Services Group, Vitas said.

But Vitas hopes Smith still is interested in the project and said the developer can request an extension or a new agreement.

Proponents of the project have so much time and energy invested in the plan, Vitas said, “it'd be horrible for the village to start from scratch.”

Smith could not be reached for comment.

The Jan. 1 deadline was itself an extension, an ultimatum set for Smith in October after village officials said they haven't seen any evidence of the financing Smith had said he arranged.

Smith also missed a Sept. 30, 2010, deadline to submit detailed plans for the project. In October, he requested a 10-month extension.

Village officials have said other developers have expressed interest in the project, but those avenues haven't been pursued because of the contract with Smith's group.

Officials are eager for development to begin. The area has been declared a tax-increment financing district and is supposed to generate rising property tax revenue as the land is rejuvenated.

At least, that's the plan. Without redevelopment, the village could be short millions of dollars it needs to pay off loans for the project.

If Smith formally requests another extension, Vitas believes village leaders will entertain the concept with certain unspecified conditions.

The village board is next scheduled to meet Monday, Jan. 17.