Village sues Benchmark Bank
by Susan O’Neill
Sugar Groveâ€”The village of Sugar Grove on Tuesday filed a lawsuit against Benchmark Bank for its failure to release money from a letter of credit it holds for Hannaford Farm, LLC.
According to Sugar Grove attorney Steve Andersson, the bank should receive a summons within a week or two. After it receives the summons, it has 30 days within which to respond.
â€œWe’re in a lawsuit, and we’re pursuing it vigorously,â€ Andersson said.
The letter of credit represents money set aside to pay for public improvements within the Hannaford Farm development should the developer default on its obligations. Improvements include the final grading of streets and completion of sidewalks, among others, and will cost a total of $2.2 million to complete.
The development was originally proposed for 142 single-family homes on 122 acres of land off of Merrill Road, west of the Lakes of Bliss Woods subdivision. As of the end of last year, there were 24 lots owned by individual owners.
The Village Board declared Hannaford Farm, LLC in default of its obligations at its Oct. 6 meeting.
â€œIt’s disappointing,â€ Andersson said. â€œThey’ve chosen to ignore a call on money they’ve held.â€
Benchmark Bank President John Medernach on Wednesday said that the bank has been involved in ongoing conversations with village officials, and that he hopes the situation will soon be resolved.