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A day after being dealt an unexpected setback by the Crystal Lake City Council, Residential Development Group Inc. is assessing whether it is still worthwhile to proceed with a planned development in the southern portion of the city.

It’s a problem that may take the rest of the week to sort out.

“We are assessing whether or not it is feasible to go ahead with it,” said James D. Coughlin, RDG’s vice president.

Coughlin has until Friday to make up his mind, because that is when his contract to buy the land expires.

Coughlin would not say if RDG is willing to compromise on some of the issues that brought out droves of angry residents to protest during Tuesday’s City Council meeting.

Under the developer’s plans, the 105-acre site at Ackeman and Huntley Roads would contain 138 single-family homes, 26 town homes, 58 villas and a 3.6 acre neighborhood business lot.

The business lot was an especially touchy issue with 100 or so residents who attended the City Council meeting Tuesday. With ample shopping available in Crystal Lake, they wanted no more on the site, they said.

At Tuesday’s meeting, the City Council voted 3-2 to reject the Crystal Lake builder’s mixed-use plan. The council’s action sends the proposal back to the Plan Commission.

At the meeting, Mayor Robert Wagner asked the city attorney to read what B-1 zoning would allow, and the audience gasped when a fast-food restaurant was listed as among the appropriate uses of the land.

Wagner asked if the company would be willing to reconfigure the lot to eliminate the business zoning. Initially reluctant to change the plan, Coughlin said he understands that people don’t all like the same things.

“But 100 people don’t like it,” said Wagner to the cheers of the packed council chambers.

The most critical issue on residents’ minds was what effect the development might have on the watershed.

Diane Deemer, a neighbor and mechanical engineer, pointed out that the area is a flood plain with several protected wetland areas. The combination of inconsistent soil conditions and extensive amounts of fill necessary to build up low-lying areas will almost certainly cause flooding, she said.

“When the area is developed, where will all the water go?” Deemer asked.

Engineer Scott Buckner, who lives in the area, said that the plan would destroy the wetlands. “This is not a plan for development but for devastation of the area,” he said.

RDG is not trying to destroy the area, Coughlin retorted, but rather working to preserve and enhance the wetlands. The Army Corps of Engineers is reviewing the plan and insists that any wetlands destroyed to make way for the development must be replaced using a mitigation formula designed by the federal government.

Coughlin said that RDG hired a soil boring service to test and investigate the soil conditions, which proved stable enough for RDG to continue to pursue the project. And a preliminary storm water management plan addressed storm water concerns and satisfied the city engineers, he said.

When residents raised the issue of density, Coughlin said that the mixed-use plan is actually less dense that a single-family subdivision would be. Other RDG subdivisions containing town homes have maintained their property values and resale appeal, he said.

But Patrick Hughes said he moved to Crystal Lake from California because of its strict zoning and density requirements.

“The California way of building is rack ’em, stack ’em and pack ’em,” he said. “Don’t let that happen here.”

RDG will have to make a decision whether to abandon its plan or return to the boards for further direction. And although Coughlin doesn’t yet know what will happen, he said RDG continues to look forward to the opportunity of being one of Crystal Lake’s only hometown builders.

“We are proud of working in this community and of the different projects we brought to the city,” he said.