Bankrupt Kirk Homes still plans to build in Elburn
By JONATHAN BILYK Shaw Suburban Media
ELBURN – A suburban homebuilder could resume crafting plans for a large subdivision in the village later this summer, should it emerge from bankruptcy as anticipated.
Streamwood-based Kirk Corporation, which builds houses under the brand of Kirk Homes, still wishes to develop the Welch Fields project, a subdivision that could add about 950 homes to Elburn in coming years.
“We have it on hold for now,” said John Carroll, president of Kirk Corporation. “That’s the best way to describe it right now.”
For more than four years, Kirk and Elburn village officials have discussed the plans for Welch Fields, a 350-acre subdivision planned for the north and south sides of Route 38, west of Route 47.
In 2005, the Elburn Village Board approved a concept plan for Welch Fields, which grants the developer a preliminary nod to continue refining the plans.
Discussions had continued until February, when the village and Kirk representatives had their last official contact, said Elburn Village Administrator Erin Willrett.
At that point, the two sides were still discussing various aspects of the project, including how to annex the project into the village and how much Kirk Homes would pay the village to help Elburn expand its wastewater treatment plant, said Carroll and Willrett.
On May 13, Kirk Corporation filed for Chapter 11 bankruptcy protection, after its gross revenue plunged in 2008 to $24.7 million, compared to $106 million in 2007.
Carroll said Kirk is confident it will emerge from bankruptcy protection later this summer or in early fall.
In the meantime, Carroll said, Kirk has devoted itself to its ongoing developments in Bolingbrook, Woodstock and Lakemoor. The company also is selling property it owns in Huntley and Woodstock.
However, Carroll said, the Welch Fields project will not be among the properties sold.
“We’ve not made any decision to abandon Welch Fields,” Carroll said.
Willrett said the village has received no indication from Kirk as to when it might proceed with the Welch Fields project. And since the project has only received conceptual approval, Kirk would be free to return to the village with a drastically different plan from that now on the board.
However, she said, any proposal would need to include assistance to expand the village’s sewage treat ment plant, as all capacity at the plant is maximized. Willrett said all developers have also been told that an expansion of the plant is required before any new homes not already approved by the village can be built in Elburn.
“We are not operating at peak capacity yet,” Willrett said. “But with the developments already approved, all available capacity has been spoken for.”
