Antioch faces bankruptcy crisis head on

While the courts and lenders deal with the aftermath of Neumann Homes' decision to file bankruptcy, Antioch is attempting to assist hundreds of affected people.

The village, home to two large Neumann Homes subdivisions under construction, has hired Chicago attorney Lawrence Moelmann to assess what homeowners, homebuyers and the village are entitled to.

"Right now, we're trying to prioritize which improvements need to be addressed first," Moelmann said. "I've been in contact with at least one lender. The banks are anxious to get these projects up and running again. It is the only way they will get any money out of this."

The Warrenville-based company is one of the region's largest homebuilders. It filed Chapter 11 bankruptcy Oct. 31, affecting hundreds of suburban homeowners.

One of the hardest hit communities was Antioch, where plans called for 1,500 single-family homes and townhouses to be constructed for the NeuHaven and Clublands subdivisions, on the north and south sides of Route 173 and Savage Road.

So far, about 700 homes have been built, with roughly another 50 in various stages of completion.

"A lot of people are obviously suffering as a result of what has happened," said Trustee Dennis Crosby, who lives in a Neumann subdivision. "Don't think any of us sitting up here don't have any feelings other than we are going to make this happen."

Crosby asked village staff to create place on the village's Web site where people can ask questions and receive weekly updates.

Part of the appeal of homes in Clublands was an 8,000-square-foot clubhouse and swimming pools. Construction never began on any of the amenities.

Moelmann said it is too soon to tell if those items would be completed.

He said the issue of parks, water and other amenities would be hashed out during litigation.

Mayor Dorothy Larson said ideally another builder would complete the subdivisions.

"Whoever buys into this next will need to be held to the same standards as Neumann was," Larson said.

Jim Keim, acting village administrator, said safety is the village's primary concern, and crews have been assessing which sidewalks, curbs and gutters still need to be completed.

"In the event Neumann does not plow or the banks don't step up, the public works department is ready and able to help," Keim said.