Bank sues to foreclose on possible Huntley Metra site

A foreclosure lawsuit has cast doubt over the future of more than 500 acres of undeveloped land in Huntley - including a site that could house a future Metra station.

American Community Bank of Huntley is seeking foreclose on four properties owned by McHenry County developer Frank Sajtar and three companies he manages.

The suit claims Sajtar and the companies failed to pay the bank $29.3 million in principal and interest on two loans the companies used to buy a 412-acre parcel of land on Main Street in Huntley.

But Sajtar said the foreclosure was a direct result of Sajtar suing the bank for breach of contract in December 2008.

"We filed a lawsuit, and in response, the bank filed a foreclosure," Sajtar said, declining to comment further on the matter.

Sajtar's suit alleges American Community Bank tried to block him from selling half the 412-acre plot to Mertz Development, a sale that would have enabled Sajtar's companies to stay current on their loan repayments.

The bank, the suit claims, secretly agreed to sell the loan to Mertz Development. Selling the land to Mertz would leave Sajtar unable to repay the loan, and allow Mertz to foreclose on the property and take full control of the plot.

Troy Mertz, chief executive officer and president of Mertz Development, declined to comment Monday.

The bank is trying to foreclose on not only the 412-acre parcel but also three Huntley properties offered as collateral on the loans:

• 50 acres at Route 47 and Reed Road.

• 50 acres at Route 47 south of Reed Road known as the "Garlieb property."

• 6 acres at Main Street and Kreutzer Road, in front of the Lions Chase subdivision.

The developers submitted conceptual plans for some of the properties, but the village never reviewed formal plans for any of them, Village Manager Dave Johnson said.

Huntley officials have reviewed plans for a "town center" concept on the 412-acre property that would include pedestrian-friendly residential development as well as space for businesses, Johnson said.

The property, centered around Coyne Station Road and the railroad tracks in northwest Huntley, is one of two sites that could house a future Metra station.

Huntley will also require the developer of the land to extend Algonquin Road through the property.

In his past dealings with Huntley, Sajtar typically has sold projects to other developers after winning approval from the village - among them the Lions Chase and Talamore subdivisions, Johnson said.

"He's never developed anything," the village manager said.

American Community Bank did not return calls seeking comment.