Foreclosure casts doubt over Huntley project

The future of a major retail and residential center slated for Huntley is unclear now that the project has entered foreclosure proceedings, according to village officials.

Plans for the project, called the Village of Portofino, include more than one million square feet of retail space and 487 apartments and townhouses on the northwest corner of Route 47 and Kreutzer Road.

If the project is scrapped as a result of the foreclosure, it would come as another blow to Huntley.The village already has cut its 2009 budget nearly 20 percent because of stagnating sales tax revenue and a steep drop in building permits.

Gary Marks, president of the Chicago-based Portofino Group, declined to comment on the foreclosure, but said he has been unable to secure financing for the Village of Portofino in the tight credit market.

"We were in the process of doing so, and the banking system fell apart on us," Marks said. "Until the credit markets flow, I don't see anything happening."

Huntley Village Manager Dave Johnson suggested that even without the economic crisis, the project may have been overambitious given the slowdown in the local housing market.

"Some of the demographics probably weren't there at this point to support what they're proposing," Johnson said. "They're obviously smart enough to realize what they're proposing is going to be extremely difficult to bring through."

Plans for Portofino, praised by Huntley trustees praised for its Italian-inspired design, include almost 500 high-end apartments and townhouses, a movie theater, restaurants and big-box stores.