Grafton OKs return of loan

HUNTLEY – The Grafton Township board unanimously approved Monday night returning the loan on its stalled $3.5 million town hall project.

The vote was a necessary action, as a court injunction would not allow the township to make any payments on the more than $141,600 in interest that was due to Harris Bank on July 1.

According to a letter from Harris Bank, the debt settlement includes the return of the outstanding principal amount and said interest payment, plus interest accrued to date since July 1 at a rate of $429.28 a day.

Township attorney Joseph Gottemoller said the bank would waive all cancellation fees in exchange for the offer. The township plans to finalize the settlement immediately.

“It’s a large concession on the part of Harris Bank,” Gottemoller said.

The new building’s progress has been at a standstill since this spring, when opponents of the project filed a lawsuit against the township, arguing that residents were not informed well enough of the board’s actions.

In May, McHenry County Judge Michael Caldwell ruled that the board was barred from taking any more steps in acquiring real estate, building a hall or incurring debt to build the hall.

Aside from loan interest, about $300,000 already has been spent on the project in the last two years, Trustee Rob LaPorta said. Those payments – for land, architectural and contractor costs – came from the township’s general debt fund.

Although the trustees have been generally against the idea, Grafton Township Supervisor Linda Moore continues to seek approval to go to referendum with the project. More than 100 registered voters have signed a petition to request it be placed on the February 2010 ballot.