The City of Kewanee “stepped up,” per se, and approved a resolution that will allow the city to purchase the mortgage note on the mobile home parks, complete the foreclosure process, and better manage the properties for the residents who call the mobile home parks home. What exactly does this mean? Not much, for now. As of June 30, 2025, the court-appointed receiver, Ira Lauter, was discharged from the receivership. As of now, there is no one managing the properties. There are four known water leaks, and one leak is substantial and can’t be fixed while the mobile home is in place. Ira’s attorney was instructed to notify all the tenants about Ira’s discharge and what to do during the transition. Purchasing the note from First Secure Community Bank provides a quicker timeline to ownership by the city than if the bank abandoned the properties. City Attorney Zac Lessard said at the city council meeting that he intends to file a motion to expedite the foreclosure process in the courts, citing nine months as the standard timeframe. The bank started the foreclosure process, and by purchasing the mortgage note, the City of Kewanee doesn’t need to start from scratch.
Following the foreclosure proceedings, the properties will go up for foreclosure sale. Unless someone outbids the City of Kewanee, the City of Kewanee will own the properties. Options are running out for the residents of the mobile home parks, but the council approved a move tonight that allows tenants to remain in their homes and will give the city the authority to fix the water leaks. Residents of the mobile home parks should follow the instructions provided by the outgoing receiver and keep the lot rent, water, and trash held back until a new plan is developed.
There are numerous issues to resolve should the city gain ownership of the properties, including water lines, sewer lines, and electric. One option is to consolidate the properties. The properties on West 6th Street and Cole Street have the most livable area. For now, it’s a waiting game. The bank’s attorney is drafting the acquisition paperwork, and if the bank proceeds with the agreement, the acquisition of the mortgage note could close on July 31, 2025.
The bank previously stated the properties were assessed at almost $1 million, but no one has seen that assessment. Mayor Moore said at a previous meeting that property value is different in Chicago than in Kewanee.
Also on the agenda, the Illinois Department of Transportation (IDOT) is acquiring property along West 6th Street (Highway 81) for the long-awaited road construction on 6th Street. The council approved two easement sales in the area of Cottage Street, where the lift station is, and across the street. The only holdback to the major road project is the mobile home parks. If the city takes ownership of the properties, it can approve the sale of easements to IDOT.
The TIF agreement with KTown Real Estate was approved based on the amended agreement for the new car wash on West McClure Street, which hasn’t been received from the TIF attorney yet. However, city officials said that KTown Real Estate accepted the amended TIF agreement.
