Naperville will use deposit to get rid of eyesore

Naperville is taking control of a giant dirt mound at a southwest commercial development that has pitted the project's two developers against one another for more than a year.

The city council voted Tuesday to use developer Stephen Subach's cash deposit to finance the removal of the mound at Naperville Crossings that was created during infrastructure work at the site.

The city will ask contractors to submit bids to spread the dirt over the parcel, but use some of Subach's $459,000 deposit to pay for the work that would likely be completed by late winter or early spring 2008.

The council voted that Subach was in default of deposit agreement. It could cost in the neighborhood of $300,000 to do the work, city officials said.

"My number one concern, and I hope it's the number one concern of everyone up here, is that we draw an end to this situation," Councilman James Boyajian said. "We take control of removing this eyesore."

The mound will be spread over Subach's portion of the project and the council directed staff to do the work to Subach's specifications as long as it doesn't slow the work from being done.

Subach's company is responsible for a portion of the development that would create a medical office complex and senior housing. No work has been done yet. Midco is responsible for the retail component of the project and most of the work on this portion is complete.

In June, both sides told the council they had come to a verbal agreement to move the mound, but the agreement fell apart. City code prevents developers to maintain these types of mounds for lengthy periods of time.

A proposal to pay off an $88,000 lien the Internal Revenue Service recently filed against Subach's cash deposit was postponed due to concerns raised by Midco officials. Midco representatives cited case law that prevents releasing funds deposited on behalf of a company to the IRS to cover debts owed by an individual.

Subach was not in attendance and no one spoke on his behalf.

City Attorney Margo Ely said she would research the case law presented and report back to the council about the federal government's claim to the money.