A once-controversial condominium project on the shores of Lake Springfield has stalled amid financial difficulty.
Harbor Point was supposed to include 22 living units in 11 buildings, but fewer than half of the duplexes have been built. The leaseholds for the city-owned land are in foreclosure proceedings, and improvements to publicly owned Center Park cove that were supposed to be paid for by the developer Doug Kent have been made with taxpayer money.
The city seven years ago granted permission for the multi-family development over protests from some lake residents, who objected to public land being put to private use and to the multi-family development.
When the city OK’ed the plans, Kent and his partners agreed to make improvements to Center Park cove — dredging and construction of fishing piers, boat docks and a sea wall, said Amber Sabin, spokeswoman for City Water, Light and Power.
The dredging and part of the sea wall were completed, but the rest of the improvements were made at public expense, with $186,000 from the state Department of Natural Resources and labor from CWLP, Sabin said. Sabin said the city has reserved its right to recoup costs from the developer.
Project’s ‘gone sour’
Kent doesn’t argue that he owes money.
“The city has put me on notice that I owe them, because they went in and completed it,” Kent said Thursday. “Obviously, I would like to pay the city 100 percent. We all did the deal in good faith, and it’s gone sour.”
Town and County Bank last fall won a judgment of nearly $2.2 million against Kent for various unpaid debts. The taxes on Harbor Point leaseholds have been sold, which is often a precursor to distressed properties being sold. But Mary Hancock of Springfield, who recently paid more than $80,000 for the taxes on four leaseholds, said she doesn’t want to go into the condo business.
“It’s just an investment for me,” Hancock said. “I don’t want the property.”
Kent said a potential buyer has been identified, and Commerce Bank, which holds the mortgage, is trying to put a deal together. He said he believes the project is viable, but he doesn’t have the money to complete it.
“It’s still a pet project for me,” said Kent, who usually deals in commercial real estate. “My concern—and all the parties know this—I want the people (residents) out there taken care of.”
Bank’s patience praised
Kent said he landed in financial trouble after the state vacated a building he owns on Second Street and a proposal to build a truck stop on Toronto Road collapsed. He said he hasn’t been able to sell the Toronto Road property to Pilot Travel Centers, as he had planned.
“The bad economy was just the icing on the cake,” Kent said. “The Pilot deal and the state of Illinois were what killed me.”
Kent said he has been meeting weekly with officials from Town and Country Bank, which holds the biggest judgment against him. Mike Houston, president of the bank, declined comment, but Kent said the bank has been patient.
“Town and Country has been incredibly good to me. The two of us are working on a settlement to avoid bankruptcy. … I think at this point there’s a better than 50 percent chance I’ll be able to avoid it.”
Bruce Rushton can be reached at 788-1542.
Read the original article from The State Journal-Register.