Bank sues Plotes over Elgin loan
PNC Bank has sued the developers of River Park Place, the townhome complex not far from the Grand Victoria Casino in downtown Elgin, for more than $3 million, according to published reports.
PNC filed the complaint Jan. 18 in U.S. District Court in Chicago, Crain’s reported. Named in the suit are Daniel Plote, president of Plote Construction in Hoffman Estates; developer David Plote; and Kurt Kresmery of Plote Homes LLC. Reports stated that those behind the venture have failed to pay off a loan on the project, which includes 116 townhomes already built and a proposed condominium building designed to hold 60 units.
Reports stated that a $325,000 payment was missed before the loan came due on Jan. 15. PNC inherited the loan — initially issued for $9 million by EFS Bank of Elgin — in September 2005, reports stated.
The development’s 116 townhome units run along South Grove Avenue between Prairie Street and Lake Street. A 60-unit, eight-story condominium was to be built at the northwest corner of South Grove and Prairie, where the Crocker Theater once stood. But according to reports, only eight condo units have been sold.
According to the River Park Place website, the project is a joint effort of Plote Construction, Plote affiliate Par Development and REPCO, a property management firm.