Elburn Station vote set for Oct. 15

By on September 21, 2012

by Susan O’Neill
ELBURN—The Elburn Village Board is scheduled to vote on the Elburn Station development on Monday, Oct. 15, but trustee Bill Grabarek doesn’t want to wait that long to voice his concerns about developer ShoDeen.

Referring to a report that ShoDeen has defaulted on a loan taken on the Tanna Farms Golf Course in Geneva, Grabarek suggested that further action on the Elburn development be tabled until the village finds out more about ShoDeen’s current financial status.

“My feeling is that the uncertainty could be a credible argument just to table everything right now until we have more information on the financial stability of the developer,” Grabarek said. “Are we putting the village at financial risk?”

Kane County court documents show that there is a foreclosure claim on the Tanna Farms mortgage due to the failure of ShoDeen Construction Company, LLC., to pay off a loan taken out on the property.

The plaintiff in a suit to recover the money is Bank of America. ShoDeen is appealing the case, and the next status hearing is set for Friday, Sept. 28 in Geneva.

The Elburn Village Board at its meeting on Sept. 4 voted to close public comment on the Elburn Station development. Grabarek was the only “no” vote.

Village President Dave Anderson said on Tuesday that the vote on the annexation agreement with ShoDeen on the Elburn Station development had been postponed due to some unresolved issues with the developer.

Although Anderson said that these issues have nothing to do with Tanna Farms, he did say that “it raises a flag, yes.”

“We did not expect B&B and Blackberry Creek to go off the cliff,” Grabarek said at Monday’s meeting. “ShoDeen did not expect Tanna Farms to off the cliff.”

Grabarek said that, once the development is annexed, the village is responsible for it.

“Once you bring it in, whoever owns it, owns it, and we no longer have the control we have before annexation,” Grabarek said. “Once it’s annexed, we’re stuck with the highest and best use of whatever that property may be. That worries me in view of the Tanna Farm news.”

Anderson explained on Tuesday that the protection that the village will have regarding the Elburn Station development from a financial standpoint is the requirement that the developer establish an escrow account.

He said the board can’t keep postponing the vote on the Elburn development.

“We’re required to vote on it,” he said. “I want to make sure everybody is there to give their vote. It’s a board decision.”

Village Administrator Erin Wilrett said that the unresolved issues include an escrow billing payment that the petitioner, ShoDeen, is required to make, and settling on a land cash amount that the developer would pay in lieu of land for a school.

“We’re working with our appraiser to reach an amount,” she said.

Kent Shodeen could not be reached for comment, but Shodeen Construction Company President Dave Patzelt said the Tanna Farm lawsuit is totally unrelated to the development in Elburn and does not affect the Elburn Station at all.

“ShoDeen is financially stable,” Patzelt said. “Tanna Farm and its finances involves one loan and one development.”

“When you look at it (the development) from 20,000 feet, it’s a pretty nice development,” Anderson said. “But once you get closer, there’s some issues that need to be cleared up. The village has to do its due diligence.”

About Susan ONeill

One Comment

  1. OneWhoCares

    September 29, 2012 at 10:27 PM

    Residents Of Elburn…. You Better Wake Up And Stop This Massive Housing (apartment complex) Development Project

    There was info many months ago about this big developer fighting foreclosure proceedings and having legal action being taken for BIG BUCKS…. and the information is now being put on the streets for all to see.ShoDeen fights bank in foreclosure
    In Geneva – The 120-acre Tanna Farms Golf Club owned by Geneva developer Kent Shodeen was placed in receivership over a default on a nearly $3.6 million loan borrowed against the golf course in 2009, records show.
    ShoDeen built Tanna Farms, 39W804 Hughes Road, Blackberry Township, in 2001.
    Bank of America is suing ShoDeen in Kane County for default on that loan and another loan on a different property in Kane County, together totaling nearly $40 million.This is from my understanding

    LISTEN UP ELBURN…. You don’t let a developer come into your community who’s financial integrity is in question and who want’s to build 1000′s of apartment units which will only attract UNDESIRABLES… and don’t forget that a certain portion of these need to be LOW INCOME HOUSING UNITS. Why doesn’t your village board in Elburn bring up this point about low incoming housing units?????? Are they afraid that more residents would be fighting against this development???
    The last of the big developers want to make fast cash and apartment buildings are the way to do it. We don’t have many apartment complexes in the Fox Valley area that are of any quality. St. Charles, Batavia, North Aurora, Elgin, Sycamore, Dekalb, have plenty of large apartment complexes that are plagued with trouble and plenty of 911 calls. Do you really want this in Elburn?????

    When Mr.Grabarek said… “We did not expect B&B and Blackberry Creek to go off the cliff,” Grabarek said at Monday’s meeting. “ShoDeen did not expect Tanna Farms to off the cliff.”

    Grabarek said that, once the development is annexed, the village is responsible for it.

    “Once you bring it in, whoever owns it, owns it, and we no longer have the control we have before annexation,” Grabarek said. “Once it’s annexed, we’re stuck with the highest and best use of whatever that property may be. That worries me in view of the Tanna Farm news.”
    A very good point indeed ,and also the Anderson bridge hostage scenario will be taken care of by Kane county eminent domain and Elburn won’t be responsible of the upkeep of the bridge.
    There are so many negative and basically no positive reasons to give ShoDeen the approval for a massive uncertain project until many many unanswered questions and funding of ALL infrastructure is in place so the current tax paying residents of Elburn aren’t hit with surprise in the future year’s on the tax bills.

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