N. Aurora vows to finish Neumann Homes work

The village of North Aurora plans to complete public improvements in the Tanner Trails subdivision left unfinished by Neumann Homes. The builder announced last week it plans to declare bankruptcy.

According to village administrator Sue McLaughlin, the village will call in funds from seven letters of credit at several banks established by Neumann Homes. Work will likely begin in the spring, continue in the summer and be completed in fall 2008.

Builders typically establish letters of credit, cash or bonds when making a commitment to a community to finish public improvements in a development, according to the Home Builders Association of Illinois. Municipalities can then use the credit, cash or bonds to make public improvements left unfinished.

McLaughlin said the Neumann Homes letters of credit total more than $2 million. The work will include finishing sidewalks, curbs and gutters, storm sewers and completing a bicycle path.

"It will be a lot of work on our end, hopefully it won't cost more than $2 million," McLaughlin stated. "We may have to hire a general contractor to oversee the work. We don't want the residents penalized because of the difficulties of a builder. We'll do our best to make the subdivision right."

According to village engineer Jim Bibby of Rempe, Sharpe and Associates, the work in the subdivision is 92 percent complete.

"We'll be finishing sidewalks and streets but the backbone infrastructure is there," Bibby said. "This leaves us in a more workable position than other communities that have been affected. We have a punch list of things to be done that involves flaws or imperfections in completed work that need to be addressed."

McLaughlin said the village has heard a variety of complaints from residents.

"Some residents are in limbo," McLaughlin added. "We had a call from a resident who said a cabinet maker was going to file a lien against her home because the builder hasn't paid for the cabinets. We're advising residents with these issues to hire an attorney."

Of the 490 single-family homes in Tanner Trails built and sold by Neumann Homes, all are completed except for two, McLaughlin said. One is 60 percent completed, and the other home has only a foundation.

There are 674 lots in the subdivision. The other lots have been sold by Neumann to other builders.

According to the Neumann Homes Web site, prices in Tanner Trails range from $284,995 for a 2,248-square-foot home to $312,995 for a 2,652-square-foot home. The subdivision, just south of Nelson Lake and less than two miles from the I-88/Orchard Road corridor, contains grassy common areas and open space.