Grand Reserve Developer, Residents Seek Parity with Huntley's Sun City

Residents of Algonquin’s Grand Reserve age-restricted community hope that changes to a land-use agreement will help support resale value and put it on equal footing with Huntley’s Sun City.

The way the annexation agreement stands, all residents of the development must be at least 55 years old and residents must own the properties in which they live.

Phill Darrow, a legal representative for Grand Reserve Algonquin LLC, which is owned by Petry Development out of Loves Park, Ill., has requested that Algonquin adopt the federal regulations for the age-restricted community to provide more flexibility for homeowners.

“The developer’s goal is to get sales momentum and recover home sales,” Darrow said.

Darrow said the land-use agreement "restrictive," saying that there have been no recent development activities and there have not been any sales within the last year. Only 38 of 188 approved units have occupants in the residences, he said. 

Changes to the agreement would mean that at least 80 percent of the homes must be occupied — not owned — by at least one person 55 and older. Adult children would be able to purchase homes for their parents and spouses younger than 55 could reside there. To avoid impact on area school districts, no person younger than 19 would be able to live in the development.

The change that is drawing the most attention is the one that would allow for the developer and homeowners to be able to lease out their properties. Darrow said the developer was looking at a minimum of a six-month lease.

Patricia Zelko, a resident of Grand Reserve, said she is worried a six-month lease would result in an increase in traffic in the neighborhood.

President John Schmitt said at Tuesday’s committee of the whole meeting that the duration of a lease agreement would be open for discussion at next week’s board meeting.

Petry Development purchased Grand Reserve a year ago after Fifth/Third Bank Chicago filed a foreclosure suit in 2008 to collect $9.4 million in loans from developer Jeffrey S. Pelock, president of Grand Point Homes Inc. in West Dundee.