Story posted Wednesday, July 1, 2009
Glen Town Center Owner: We Never Missed Payment On Loan
By TOM ROBB Journal & Topics Reporter
Oliver McMillan, owner and operator of the Glen Town Center (GTC) retail development in Glenview, announced it is restructuring a loan agreement with Wells Fargo Bank.
The restructuring comes as McMillan faces a $500,000 lawsuit for unpaid construction work filed in Cook County Court last April. Reports also say McMillan is in violation of a lease with one of its two large anchor retailers.
McMillan has a revenue sharing agreement with the Village of Glenview. Village officials are watching the situation but said, "there may not be serious financial consequences (for village government) if Oliver McMillan cannot work out an agreement with its lender."
Several media outlets reported McMillan is facing imminent default on a $41 million loan for the development, a charge McMillan denies.
"The viability and success of The Glen Town Center is a priority for Oliver McMillan and we are in the process, over the next 60 days, to restructure our loan for long term," said Oliver McMillan President Paul Buss in a written statement dated Wednesday, June 24 issued by public relations firm Murphy Knott. It also stated that the GTC has a 94% occupancy rate.
The announcement of restructuring by McMillan comes a week after one media report said McMillan missed a $247,000 loan payment and another report said McMillan was 60 days behind in payments totaling $492,000.
Both reports said McMillan's $41 million loan was transferred to a special servicer and was in, "imminent default due to cash flow problems."
Wells Fargo officials said they could not comment due to customer confidentiality.
McMillan officials strongly disputed those reports saying they never missed a payment.
"As of June 22, 2009, Oliver McMillan Glenview Retail, LLC, owner of the Glen Town Center, has not missed any payments on its loan," said the GTC statement.
The statement went on to quote Buss as saying, "Due to the confidential nature of the situation, we cannot comment publicly with regard to any of the specifics, but, be assured, that we have both a large financial investment and a continued commitment to all the interested parties to work through these difficult times." Murphy Knott officials said they could not discuss any leases, contracts or other agreements regarding the GTC.
Glenview has a revenue sharing agreement with the GTC and its anchor store, Van Maur.
Glenview officials issued a statement saying the loan issues related only to the retail portion of McMillan's development and not the movie theater or apartments in the development.
"There is no reason to believe that this situation will have any significant impact on property taxes or on the retirement date of the TIF (tax increment financing district). In fact, the TIF Fund is in excellent shape and is handling the debt on The Glen easily at this point," read a written statement from Glenview in response to reports about McMillan's financial issues. It continued, "The original revenue-sharing agreement will remain in place regardless of who owns and operates the Glen Town Center.
McMillan is being sued for $500,000 by Leopadro Construction of Hoffman Estates for McMillan's alleged failure to pay construction build outs at several Glen Town Center stores. Records show the suit was filed in Cook County Circuit Court on April 20, 2009. Company officials said they believe the retail spaces they built out for the GTC are now occupied.
A Murphy Knott spokeswoman said she could not comment on the suit because it is pending litigation.
Reports also said that Oliver McMillan violated its lease with one of its two anchor stores, Dick's Sporting Goods.
Dick's officials did not return calls for comment.
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