Story posted Friday, January 9, 2009
Foreclosure Lawsuit Filed Against Local Hotel Developer
By TOM ROBB Journal & Topics Newspapers
Chicago-based New Century Bank filed a $7.5 million foreclosure lawsuit late last month involving a hotel development in Des Plaines that has never materialized.
The bank filed suit on Dec. 31 in Cook County court against Harp Des Plaines LLC, part of the Harp Group and several other individuals and companies over an outstanding 2006 loan of $7.25 million for a major hotel development on Manheim Road and Pratt Avenue on Des Plaines' south side.
The suit alleges that the defendants also failed to pay taxes on the property.
The complaint does not make clear what taxes the defendants failed to pay and the Journal was not able to immediately clarify it.
Last September Des Plaines aldermen granted Harp Des Plaines LLC an extension until October 2009 on the development that would include two hotels. The development received initial approval by Des Plaines City Council in October 2007. The Harp Group built and recently opened the InterContinental Hotel in Rosemont.
In addition to naming Oak Brook-based Harp Des Plaines LLC, the suit names individuals and other companies involved in the development including Harp Group President Peter Dumon, Oak Brook-based Mid-America Development Co. President Michael Firsel, Mid-America Development executive David Bosse, Alfred Koplin of the Alfred Koplin and Co. real estate development firm of Hinsdale, and Graycor Construction Co. of Homewood.
The bank is seeking a total of $7,500,622. The initial loan amount was for $7,250,000. As of Dec. 2, 2008 there was an outstanding balance on the loan of $7,248,739.
In addition to the principal payment, court records show the bank is seeking $227,229 in interest as of Dec. 2, 2008, late fees of $4,152, "additional fees" of $20,500, a per diem of interest accruing after Dec. 2, 2008 of $2,315 and attorney's fees.
The initial court date for this case is scheduled for Tuesday, June 9 in Chicago.
Calls to the Harp Group, Mid-America Development, Graycor Construction and Koplin were not returned. An attorney for New Century Bank said he could not comment on pending litigation.