Permanent roof, other work going on at Algonquin's Riverside Square

Work is back on at the long-stalled Riverside Square retail and residential building in the heart of downtown Algonquin.

Well, sort of.

More than two weeks ago, workers began finishing the building's exterior, which involves installing a permanent roof, windows and updating weatherworn structural components, said Russ Farnum, the village's director of community development.

Despite the beating parts of the building have received from the weather, it remains sound both structurally and engineering-wise, officials said.

"The project is proceeding as the bank is stabilizing the structure," Farnum said. Work should conclude Tuesday.

Amcore Bank in 2006 lent Algonquin-based Aspen Homebuilders $13.5 million to complete Riverside Square, an upscale residential building under construction at Route 31 and Route 62.

The building was to include 54 condominium units and 12,000 square feet of ground-level retail space.

Farnum also confirmed that the building is for sale.

But in January, Aspen and its owners, Bruce and Patricia Hawkins, filed for bankruptcy protection, detailing more than $43 million in debt associated with the project against less than $574,000 in assets.

A month later, Amcore began foreclosure proceedings against the company, which still owes the bank $12.1 million, according to court records.

The bank recently ended foreclosure proceedings after the owners surrendered the property's deed, Farnum said.

And the court appointed a receiver to oversee the building's progress.

The village is now negotiating with Michael Kayman, the building's court-appointed receiver, to protect the bank's investment by doing masonry work before winter hits.

"At this point in time, there have been no further decisions made on further efforts to complete (the building)," Kayman said.

Kayman said the building is between 40 and 50 percent done and that the bank has not set a price for the structure - the lender and future interested parties are the ones who will make that step, Kayman said.

But they first need to secure a "qualified buyer," someone who has the money to finish the project and will turn it into the showpiece Algonquin wants.

Sources familiar with the project say it will cost between $9 million and $13 million to finish it.

"I think this property is indicative of the markets," Kayman said. "It would be good to be completed ... but in the current economy, it's tough to make it happen."