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When the Illinois Environmental Protection Agency placed Wauconda’s sewer system on restricted status in May 1997, it meant a ban on big developments in the village.

Two major housing projects were stopped immediately: the 82-home Old Grove subdivision on Illinois Highway 176, and the 39-unit Canterbury Apartments at Ivanhoe Road and Illinois Highway 59.

But now the village is off restricted status, except for two neighborhoods. And the developers behind the stalled projects are moving to start construction as quickly as they can.

“They’ve already applied for their permits, and we’ll have things under way soon,” said Fred Dierker, village administrator.

The James Corp. is building Old Grove, while local businessman Kenneth Adkins is developing the Canterbury Apartments.

Last year, 56 new houses were built in the village, fewer than in a typical year, Dierker said.

“We were running higher than that, but by the time we get everything up and running, (housing construction) will be about the same” as in previous years, he said.

Mayor James Eschenbauch said he has heard from businesses eager to build in Wauconda.

“I think there are people waiting to come to Wauconda now that restricted status has been removed,” Eschenbauch said.

He mentioned a bank and a Taco Bell fast-food restaurant as potential new businesses, and pointed at two pieces of vacant land that can now be developed: a soccer field at Anderson Road and Illinois 176, and the 12-acre Sarno property on U.S. Highway 12.

Wauconda was placed on restricted status May 2, 1997, after a rainstorm swamped the village’s sewer system. The treatment plant could not handle the inundation, so workers were forced to release partially treated sewage into local waterways.

Over the last year, the village has significantly reduced the amount of water flowing into the system, mainly by disconnecting illegal hookups and lining cracked sewer pipes to prevent moisture from seeping through. The village came off restricted status May 15.

“They have demonstrated with the work they’ve done, the flows are down,” said Don Netemeyer, an environmental protection engineer with the state Environmental Protection Agency. “They’ve moved along pretty quickly,” Netemeyer added.

“When we put them on restricted status, that got their attention. To be honest, we took them off restricted status a little sooner than I thought.”

Two areas of the village still are on restricted status: Lake View Villa and Larkdale subdivisions. Work crews already have begun lining leaky sewer pipes in Lake View Villa.

The same work will soon begin in Larkdale, and should be finished by July or August, Dierker said.

Wauconda still is on what’s called critical review status. That means the state EPA will be watching closely to make sure the community doesn’t overtax its system.

“If they start building like crazy again, and their system looks like it’s nearing capacity, we’ll throw them back on restricted status,” Netemeyer said.