May 19, 2024
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Judge orders developer of stalled Fox River Grove apartment project to pay $145K to Ozinga

Construction of 100-unit complex has not proceeded since last year

By Amanda Marrazzo
A person rides their bicycle past a partially constructed five-story, 100-unit apartment complex at 401 Algonquin Road near Route 14 in Fox River Grove on Tuesday, March 16, 2023. Contractors allege in court records that they haven't been paid for work on the building, which had drawn the ire of neighbors and concerns from the Fox River Grove Fire Protection District.

A person rides their bicycle past a partially constructed five-story, 100-unit apartment complex at 401 Algonquin Road near Route 14 in Fox River Grove in mid-March 16. Contractors allege in court records that they haven't been paid for work on the building, which had drawn the ire of neighbors and concerns from the Fox River Grove Fire Protection District. (Gregory Shaver — gshaver@shawmedia.com/Gregory Shaver - gshaver@shawmed)

A McHenry County judge Wednesday granted a default judgment ordering the developer of a stalled 100-unit apartment project in Fox River Grove to pay $145,000 to Ozinga Ready Mix Concrete Inc.

Appearing virtually, Jeffrey Hoskins, an attorney representing Ozinga, told Judge David Gervais that an agreement was struck between Ozinga and The Grove Residences LLC and Branko Tupanjac of Lake Forest for services on the building at 401 Algonquin Road.

Hoskins said between November and December 2021, Ozinga delivered materials to the site with the agreement that it would be paid within 30 days.

Ozinga is one of several contractors suing The Grove Residences, saying they have not been paid. Concrete company Spancrete is seeking $1.5 million and contractor Creative Erectors LLC is suing for $332,000, according to court filings.

Mortgage lender Jorie L.P. also filed a complaint seeking more than $2.8 million, which includes the $2.5 million principal loaned to Tupanjac, plus accrued and unpaid interest and late fees, according to the lawsuit filed March 29 in McHenry County courthouse.

Borrower has failed and refused to make full payment of the indebtedness owed to Jorie under the loan documents and has not incurred such indebtedness.

—  Attorneys representing Jorie L.P. mortgage lender

“Borrower has failed and refused to make full payment of the indebtedness owed to Jorie under the loan documents and has not incurred such indebtedness,” attorneys for Jorie wrote in the lawsuit.

Others named in the lawsuit are Wells Concrete Products, Custom Home Development Inc. and “unknown owners and non-record claimants.”

The judge found the developer, who did not appear in court Wednesday nor on any other court proceeding in this case, in breach of the contract with Ozinga and granted its motion for default for failure to appear.

An attorney also has not appeared on the developer’s behalf.

Hoskins also sought to be paid attorney fees, but Gervais told him to file a separate motion on that matter and set a status for May 17.

An attempt to reach Kirk Rustman, who has spoken previously on behalf of The Grove, was not successful Wednesday.

The case centers around the development that neighbors balked at over concerns about privacy and an influx of new residents, as well as questions from the Fox River Grove Fire Protection District, which asked in an unusual move to review safety codes and planning documents for the new building.

Leasing for the structure was expected to begin in early 2024, Fox River Grove Village Administrator Derek Soderholm has said. Instead, it has become an eyesore that village officials say they hope will be completed at some point by either the current owner or someone else.

Attempts to reach village officials Wednesday were not successful.