Chicago Suburb Pursues Demolition of Unfinished Apartments

Developer Branko Tupanjac’s stalled multifamily project in Fox River Grove may soon face demolition after years of legal battles with contractors over unpaid bills.

The northwest Chicago suburb is seeking court approval to demolish the partially constructed apartment complex at 401 Algonquin Road, which has been abandoned since 2022, the Daily Herald reported.

The 100-unit complex, once intended to bring much-needed housing to the area, has been the focal point of numerous contractor lawsuits. Nearly a dozen companies have filed claims against Tupanjac and his LLC, for millions in backpay for work done on the project. These legal disputes led to a halt in construction, leaving behind an unfinished, hazardous structure, the village alleges.

Village attorney Everette Hill Jr. filed a motion in McHenry County court requesting permission to demolish the building, with a stipulation that it be torn down within 15 days unless the owners act first.

Hill described the site as “dangerous” and a “nuisance,” arguing that the structure poses significant risks to public safety.Hill is seeking to recover the costs of demolition and related expenses from the property owner, including legal fees.

The village’s efforts also included a motion for eminent domain, filed earlier this year, seeking to take control of the property, claiming it is blighted. Tupanjac rejected the city’s offer to purchase the property for more than $183,000.

Tupanjac is also facing financial pressure tied to his failed efforts to redevelop the Hotel Moraine in Highwood. Just hours before a foreclosure sale on that North Shore hotel property in September, Tupanjac’s LLC filed for bankruptcy, which disrupted Midland States Bank’s effort to recover a $16 million loan. The bank alleges that Tupanjac’s bankruptcy filing was a deliberate attempt to delay the foreclosure. Despite plans to turn the property, at 700 Sheridan Road, into a senior housing complex and grocery store, the project remains stalled.

— Andrew Terrell