Lake Zurich seeks new developer to finish townhouse project

Flint Crossing was pitched as a place that would have luxury townhouses starting in the $360,000 range, with residents enjoying nearby natural beauty and shopping in Lake Zurich.

As it turned out, Dearborn Group never came close to completing the 33-home project by its fall 2006 target date. Bank of America, in a foreclosure lawsuit lodged against Dearborn Group two years ago, took over Flint Crossing's 22 empty lots just southwest of Route 12 and Miller Road.

In an attempt to lure a developer into finishing the subdivision, the Lake Zurich village board this week agreed to drop requirements for construction of a quarter-mile sidewalk along Route 12 and a pedestrian bridge over Flint Creek. The development was named after the nearby creek.

By eliminating the demand for the pedestrian bridge and sidewalk, a new developer would assume responsibility of a reduced bond of sorts - called a letter of credit - to guarantee site improvements such as final street surfacing, parkway trees and landscaping. The village board agreed to cut the guarantee from $514,958 to $364,958, a savings of $150,000.

Village Administrator Bob Vitas said giving a $150,000 break to a developer isn't desirable, but it's worth trying something to get Flint Crossing completed.

"It puts us in a tough spot, I agree," Vitas told elected officials during discussion on the issue Monday night. "I don't like giving anything back."

Patricia Provenzano, a Bank of America senior vice president who's trying to sell Flint Creek's 22 home sites, said no builder would have been interested in buying the land without the village's $150,000 reduction. She thanked the village board for its action.

"It's going to make it easier to market (Flint Crossing)," Provenzano said.

Some Flint Crossing residents say they just want the subdivision to have finished streets, landscaping, sewers that aren't above the pavement, and other basics.

"The streets and everything are falling apart," said homeowner Peter Foley.

Responding to the residents, Lake Zurich Public Works Director David Heyden said the village can't assume control of Flint Crossing's streets until they are complete and meet certain quality standards. Heyden, who is also the village engineer, added that Lake Zurich can't plow partially constructed streets.

Village officials decided against dipping into the $514,958 originally posted by Dearborn Group to complete the planned public improvements at the unfinished development. Provenzano said the work would be ruined by construction crews whenever the final 22 townhouses are completed.

Provenzano said there has been some developer interest in Flint Crossing. She said the 22 empty lots were appraised at $1 million last year, but the offers received range from $264,000 to $450,000.