Nov
15

Chicago Spire Fires Back

November 15, 2009

ChicagoSpireThe stalled 2000-foot Chicago Spire that, at the moment is just a gaping hole in the ground, is counter-suing its lender Bank of America.  Alleging that the bank took proceeds of a certificate of deposit owned by Shelbourne Development for more than $3.5 million and applied it to the amount due, an amount that was overstated because Bank of America “intentionally and deceptively” calculated the interest rate based on a 360-day year.  Chicago real estate may need its own economic stimulus plan in order to see this project become a reality.

Bank of America sued Shelbourne Development for defaulting on a loan and said it was due $4.9 million.  Bank of America said Kelleher personally guaranteed the loan.  As this saga continues, the likely hood of seeing this spectacular addition to the Chicago skyline anytime soon is ever more dependent on a quick and strong economic recovery.

Many contractors have filed liens on the project including Santiago Calatrava, the celebrated Spanish architect who is due $11 million dollars for his twisting, smoking-campfire inspired design. Originally announced in May 2005 by Christopher T. Carley of the Fordham Company, the project was supported by many Chicagoans and city officials.

After several months of development, Carley failed to acquire necessary financing and the project was taken over by Garrett Kelleher of the Shelbourne Development Group. Since that time, three major revisions were made to the design. Construction of the Chicago Spire has stopped and will not resume until the markets improve from the subprime mortgage crisis. On October 8, 2008, Santiago Calatrava filed a lien on the project stating that the developer has yet to pay him the $11.34 million owed for his work,[14][15] casting some doubt over the future of the project.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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[...] goofy tour guide pointed out all kinds of Chicago real estate, but it seems like our bus inhabitants snapped the most pictures as we drove by the huge, man-made [...]

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