Riverside Plaza developer says progress being made

The developer of Riverside Plaza in Algonquin hasn’t yet shown the village he has the financing to finish the entire project, but said he is on track to complete most of the building’s exterior by Founders’ Days in late July.

Developer John Breugelmans has shown proof of $1.5 million in financing to complete the exterior of the vacant, half-built mixed development at routes 31 and 62, Algonquin Village Manager Bill Ganek said.

Breugelmans, however, did not meet a May 30 deadline to post a $500,000 letter of credit and show proof of financing for completion of the project, which is estimated at $7 million to $10 million, Ganek said. The deadline was spelled out in an April settlement agreement between Breugelmans and the village.

“(Breugelmans) says he is looking at other sources of financing for the interior,” Ganek said.

The agreement gives Breugelmans a 45-day extension to present the letter of credit and proof of financing, Ganek said. After that, “we’ll take it from there,” he said.

The settlement agreement was for a demolition lawsuit filed by the village in March 2010 against then-owner Harris Bank, from whom Breugelmans bought the building in March. The agreement states that if Breugelmans doesn’t meet certain deadlines, the village could collect the letter of credit and obtain a default judgment for a demolition order, according to village officials.

Breugelmans must complete the exterior by the end of July, and the outdoor plaza by the end of August, Ganek said.

Breugelmans said he has enough financing and work is moving forward as scheduled. However, Breugelmans also contends the letter of credit is superfluous to the crux of the settlement agreement — the completion of the exterior.

“The real objective is that by Aug. 31 we have completed the exterior of the building. At that point, the letter of credit becomes useless,” he said, adding he will “absolutely” meet the final deadline.

The completed project calls for retail on the first floor and condos above.

“Most of it will be done by Founders’ Day,” Breugelmans said. “Bill Ganek made it clear it would be great for him and other local politicians if he could have a showpiece for Founders’ Day. We’re aiming to do just that.”

Although the building is structurally sound, the balconies were in “deplorable condition” and need to be replaced, Breugelmans said. Two of the units’ floors also needed remedial work, he said.

Right now, workers are doing the brickwork facade by facade, and will install new balconies as each facade is completed, he said.

Construction of the interior is planned to begin in September, with April as the target for finishing the project, Breugelmans said.