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The developer of the Lake Arlington Towne subdivision in Arlington Heights is unsure what will be built on a controversial 7.1-acre lot alongside a community of 569 homes.

But what now appears certain, Kimball-Hill Inc. officials say, is that angry homeowners who live nearby will not get the town center they want, a center they say had been promised them when they decided to move to the area. And, the company says, those residents will play little or no role in planning a new concept for the site.

A stalemate between the developer and residents was broached recently when village trustees, meeting as a committee of the whole, rejected a Kimball-Hill proposal to build 42 townhouses and 12,800 square feet of retail space at Palatine and Schoenbeck Roads.

They went a step further, however, and recommended to the Village Board a low-density development composed solely of residential property. In doing so, trustees ignored Kimball-Hill`s original concept, a Towne Center building featuring office and retail space.

”The trustees finally agreed with us. This (plan) is what should have happened from the very beginning-a residential development,” said Larry Johanesen, Kimball-Hill senior vice president. ”And I don`t think anything meaningful can come out of talks with residents. So we won`t turn to them.”

Johanessen said he did not know when a new plan would be presented to the village.

The trustees` decision is a major setback to residents of the subdivision of single-family homes, lofts and townhouses, who have shown staunch opposition to two alternative proposals by Kimball-Hill, demanding that the developer adhere to the original plans.

”I am very disappointed,” said Suzanne Hynek, a four-year Lake Arlington resident. ”It`s a shame. A lot of people bought into a concept here and their hopes were never fulfilled. Perhaps now they never will be.”

Perhaps even more stinging to residents, however, is that Kimball-Hill officials have decided not to include them in the discussions for the new proposal.

”They have never taken a warm approach to us,” said Bonnie Romanowski, who bought a house in the community in 1986. ”It`s a real shame. At this point, we just don`t know what to do.”

Lake Arlington Towne has been mired in controversy for at least two years since Kimball-Hill announced that its original concept, which featured a doctor`s office and convenience mall, was not economically feasible. The developer blamed a skittish economy and lack of interest in retail ventures for its change in plans.

As alternatives, Kimball-Hill proposed two plans emphasizing residential properties. Both were greeted by opposition from residents and village officials.

The first alternative, which sought to build 58 townhouses on the site, outraged residents who signed a petition decrying Kimball-Hill reneging on its offer, and was rejected by the Village Board. Trustees cited concerns of density and the need for diversification.

The most recent plan, a mixture of residential and commercial properties, was rejected by the village plan commission for similar reasons. The proposal, however, was still presented to the Village Board, which sent it to committee for further consideration.