Algonquin hopeful despite more bad news for downtown project

The construction you've seen at Riverside Square in downtown Algonquin doesn't necessarily mean the large-scale project is back on, village officials warned this week.

The work, which for now involves protecting the incomplete building from the elements, comes as a result of several legal actions, including a recent foreclosure filing.

Last month, Amcore Bank filed court documents seeking foreclosure on the Riverside Square property, naming as defendants Riverside Square LLC, Aspen Homes LLC and several subcontractors who have liens on the property.

The complaint says the developer, Algonquin based Aspen Homebuilders, Inc., stopped making payments in September 2008 on a $13.5 million loan taken out two years earlier.

The developer in January filed for bankruptcy, detailing more than $43 million in debt associated with the upscale retail and condominium project at routes 31 and 62.

According to the foreclosure filing, the developer owed $12.1 million as of December, and that figure goes up about $1,500 a day due to interest and fees.

At Amcore's request, a McHenry County judge recently appointed Chicago-based Lyons Realty Advisors as receivers of the property. The decision means the firm will "look after the property while the bank and the developer are sorting out how to proceed with the project," said John Lyons.

Whether it will only involve minor work or full construction - which halted in October- is anyone's guess.

"We want to see a lot of progress, so it remains to be seen how much and how quickly it goes," Algonquin Village Manager William Ganek said. "But we're certainly happy it's progressing."

Scott Kenig, the attorney for Amcore, declined to comment.

The building was to include 54 condominiums with a sale price about $350,000, four stores on a ground-floor plaza and a water fountain in which children could play. The village board approved the plan in late 2006.