Lawsuits and countersuits drag on over aborted apartment construction in Fox River Grove

As lawsuits remain pending after more than two years, the village of Fox River Grove continues to take steps to take ownership of the abandoned 100-unit apartment complex in town.

Contractors began building the apartments, at 401 Algonquin Road, in 2019, but the project has been stalled since 2022 over lawsuits that claim contractors are owed millions of dollars by the project’s developer. Nearly a dozen companies are suing The Grove Residences LLC and Branko Tupanjac of Lake Forest, who is identified in court records as its manager, according a lawsuit filed in 2022 in McHenry County court.

The village been trying to seize control of the property, filing for eminent domain in the courts in February over allegations that the area is blighted. An offer to purchase the property for more than $183,000 in January was unsuccessful, according to court documents.

Development of the project was hastily “abandoned, leaving a shell of a building which has become a blight on the community and constitutes a dangerous nuisance which must be removed, necessitating that tile vests in the village,” the attorney representing the village, Carlos Arévalo, wrote in a court document.

Most recently, the court allowed for the village to put up a fence around the property, and it was installed Nov. 20, Fox River Grove Village Administrator Derek Soderholm said. The private fencing had been taken down “several weeks ago,” Soderholm said.

“We want the site somewhat more secure than it is now so your average person can’t just walk up and walk through there,” he said.

The village also filed a building code violation and public nuisance complaint against The Grove Residences in McHenry County court last year. The company was charged a total of $210 for the petty offenses, according to court documents.

Among the liens against the property owners include from Spancrete, which seeks $1.5 million, while Ozinga is seeking $179,000, Creative Erectors LLC $332,000 and mortgage lender Jorie L.P. has filed a claim for $2.8 million, according to court filings. Since then, countersuits have been filed in the yearslong dispute.

The project had received criticism from neighbors over concerns about privacy and an influx of new residents, as well as questions from the Fox River Grove Fire Protection District, which asked in an unusual move to review safety codes and planning documents for the new building.