Title/Name/Summary
Main Street Village West - 161st & LaGrange - Settlement Agreement
History
Main Street Village West, located at 16202 S. LaGrange Road was approved in 2006. The developer Main Street Village West, Part 1 LLC has since been foreclosed on by the lender, Old Second National Bank (OSNB). The existing development agreement is still valid and runs through June 2013.
In 2009, the Village provided legal notice to both the developer and the bank that the property was not being maintained and failure to maintain would result in Village work orders and liens against the property. Both the developer and Old Second National Bank refused to comply with Village code. Subsequently, the Village took over the maintenance of the project, including removal of illegal dumping, weed and grass control, and repair/paving of potholes in 161st (Ravinia) entrance, and work on the detention ponds - per village code. During this time, Village liens accumulated against the property. Additionally, a hold was also placed on all permit applications for the project. The Letter of Credit (LOC), in the amount of $241,617.60 was pulled by the Village, for remaining outstanding public improvements not completed.
There are a total of 8 lots (not including Mimi Café and Rock Bottom) with liens against them. Additionally, the public improvements tied to the LOC still need to be completed and exceed the value of the existing LOC ($450,000). During the last few months, Village staff has been working with Old Second Bank to resolve all of the outstanding issues in order to allow the hold on permits to be removed. After a series of negotiations, the following settlement agreement resolving claims is being recommended for Village Board approval:
Settlement Proposal
· Payment of half of the $42,512 lien - $21,256.
· Elimination of the NE Detention Pond - Instead of repairing the existing NE detention pond (along LaGrange Road) as part of the public improvement punchlist, t...
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