Keslinger Plaza developer violates ordiances

By on May 29, 2009

by Martha Quetsch
Elburn village officials want the Keslinger Plaza commercial project to proceed, but before that can happen, the developer must comply with village ordinances.

On Nov. 17, 2007, the Village Board approved Grobmar Investments’ final plan for three of its four commercial lots on the northwest corner of Keslinger Road and Route 47.

Since then, the village has not received any payments from Grobmar to bring its escrow balance up to the $20,000 amount required by ordinance. The balance currently is $8,160.

The village previously required Grobmar to maintain a $10,000 balance, but doubled it in November because the developer was seriously delinquent, Community Development Director David Morrison said Tuesday.

Elburn requires developers to maintain a specified escrow account balance to ensure payment of any village expenses related to their projects. In addition, the developer violated the Subdivision Control Ordinance by failing to record the development plat with the county within three months after village approval.

Village officials notified Grobmar in a letter May 20 of the escrow delinquency and the violation, encouraging the developer to comply with its ordinances so that Keslinger Plaza can be developed.

Signed by Village President Dave Anderson, the letter said, “The Village would like to see this project continue to move forward.”

The Elburn Herald phoned Grobmar president Ken Marino Wednesday morning about the developer’s intentions, but he did not return the call before the newspaper’s production deadline.

Village-required escrow accounts
Escrow funds maintained by developers cover Elburn’s costs related to the “considerable review” for development and rezoning projects, Community Development Director David Morrison said during the Development Committee meeting Tuesday.

“We want to make sure the residents of Elburn do not have to pay the costs of development,” Morrison said.

Morrison said the village’s escrow account requirement ensures the village is covered for its costs “in case the developer walks away.”

Village officials plan to bill developers including Grobmar Investments whose escrow balances are delinquent.