The Village Board has given the minority investor of the partially completed Churchill Estates of Lisle a 6-month extension to decide what to do with the defunct development on Illinois Highway 53 before the village pulls its letter of credit.
Three years ago, Edward Health Services Corp. invested in the proposed 104-unit senior home support community near Four Lakes Village.
The long-term-care facility was scheduled for completion this spring, but Edward bowed out when the main developer, Rosewood Estate Holdings of St. Paul, decided to expand the scope of the project to $20 million from $16 million. American National Bank & Trust Co. of Chicago had issued a $532,115 letter of credit to the hospital for the project.
The site had only a partially completed foundation when Edward representatives appeared before the board in April, successfully seeking a six-month window to either remove the foundation or find a buyer for it.
“We will do anything we can to keep the site neat and clean,” the hospital corporation’s attorney, David E. Zajicek, said during the recent Village Board meeting.
The company has cleared construction debris and erected a fence to prevent dumping from the road.
“Edward is the tail wagging the dog here. The main developer couldn’t get the funds, and the project went into the tank,” Zajicek said.
The development’s controlling investor, Churchill Estates, was placed in bankruptcy by its major creditors, he said.
“We intended to put it up for sale, but we had to go through bankruptcy court,” said Zajicek, adding that the site is listed with a real estate agent.
