CHICAGO | Chicago Spire | 610 M / 2,000 FT | 150 FLOORS | NEVER BUILT

[WonderlandPark]

Oh man, you don't market at "Calatrava" and then don't pay the guy.

Sorry to hear the news. At least it is just a hole and not a empty hulking concrete tower like WV right on the river. Maybe they can get their shit together and get this built, and I imagine this delays the Spire completion past 2011. Had the Spire just launched 6-12 months earlier.....damn

[honte]

When I think of the Chicago real estate market these days, a powerful new concept in American economics comes to mind: Federal Bailout.

Well, this is not the greatest news, but it is potentially recoverable. If there is a dispute and people are getting cold feet, then one could see this happening. But in a market like this, one would prefer a resolution in a different fashion.

[photoLith]

I almost cried, this is not good at all. I have spent almost a year on this site looking at a hole and for what, nothing apparently now. Oh well, what can you do about it? Looks like the Sears Tower will still be the champ for the foreseeable future.

[NYC4Life]

Originally Posted by photolitherland

I almost cried, this is not good at all. I have spent almost a year on this site looking at a hole and for what, nothing apparently now. Oh well, what can you do about it? Looks like the Sears Tower will still be the champ for the foreseeable future.

You shouldn't be quick to jump to any conclusions. As honte above just stated, this is certainly not good news, but it can be recoverable. Bad news for now, but let's wait and see what will come about next. I will admit though, construction here in the U.S. has been hit hard by the prime mortage and financial crisis, a sign that the current boom is coming to an unfortunate close.

[10023]

Somebody call Hank Paulson and sort this shit out.

[Tom Servo]

hahaha! oh my god, am i the only one who thinks this is funny as hell? this is perfect! after all the hype and cheezy promoting--STOP WORK ORDER!!!

priceless.

[ChicagoHiRiser]

Originally Posted by NYC4Life

Amazing to see 2 supertalls in Chicago on hold, not good.

Yea but Aqua is almost done and The Legacy is proceeding along nicely. So the skyline will continue to be redefined.

[denizen467]

Technically, do we (and Shelbourne) care if the architects stop working for a couple months? Can't the subterranean contractors continue work during this whole time (assuming that at least they are getting paid) without further cooperation from the architects? As long as some construction and some marketing activity can continue the next couple months, it would be impressive progress under these economic conditions.

In the Crain's article -

Last month, Shelbourne increased the amount of its loan on the site with Anglo Irish Bank Corp. Shelbourne borrowed an additional $15 million, according to property records, bringing the loan’s principal amount up to $69.5 million from the $54.5 million first borrowed in July 2006.

The spokeswoman would say only that the additional $15 million will be used for project costs, but not to pay the architects.

[UberAlles]

Hmmmm... Still want to think that is will get built and this is just a delay. Kelleher is no dummy. One day next year out of the blue Shelbourne will announce they found a GC and it'll start popping again. The sad thing is that Calatrava may not return to the project. These kind of breaks in a relationship often are permanent. That might mean no Calatrava bridge.

[andydie]

ok i have to admit those aren´t the best news, but no word that the building was canceled or will never be built so I am still hopefull that maybe if Barack wins the election and the markets recover all will be worked out fine at the end. As far as I dont hear anything else I am staying positive.

[Dr. Taco]

So, uhm, are we gonna let Dalton back in? haha

[honte]

The figures in the latest article indicate 33% sold at the moment (percentage by unit count).

[Dac150]

Obviously one-third of units sold doesn't cut it. That in part with cutbacks on the sales force indicate to me that this project is heading in the direction of either being 'scaled back' or thrown out.

I would have to imagine at some point something will be placed there. Whether it will be what we all anticipated is another story, but regardless they're not going to just fill that hole with dirt and move on. Something at some point will be built there, even if it is not what was originally presented.

Certianly that whole case with the architect doesn't make matters any better.

Sadly this is a building that was just planned at the wrong time. It's not like this could have been predicted but more so of a freak thing (the markets). If the demand isn't there then the revenue isn't there, and if there is no revenue there is no tower.

[Dirt Lawyer]

What bothers me is the fact that dirty laundry is being aired out. Had the liens just been filed, I could say "Well, they have to protect their lien rights under the statute." But Shelbourne is admitting they are disputing the liens (at least in part) and Calatrava's on record as saying he and Kelleher haven't been speaking much lately. As I said at the blog, I'm an optimist at heart, but a turnaround and/or an Olympic bid sure would help. Well, that and Kelleher's money.

[Northwest]

Originally Posted by Dirt Lawyer

What bothers me is the fact that dirty laundry is being aired out. Had the liens just been filed, I could say "Well, they have to protect their lien rights under the statute." But Shelbourne is admitting they are disputing the liens (at least in part) and Calatrava's on record as saying he and Kelleher haven't been speaking much lately. As I said at the blog, I'm an optimist at heart, but a turnaround and/or an Olympic bid sure would help. Well, that and Kelleher's money.

Yes. Bad signals were in the air for a while. Back on September 24th I posted this article from the Tribune, in which the Spire was mentioned:

And questions now surround the fate of another major project—the Chicago Spire. The project's architect, Santiago Calatrava, said Wednesday that he has had little contact recently with Garrett Kelleher, executive chairman of Shelbourne Development Group Inc.

"As you can see, the site is quiet," Calatrava said. "We are all waiting."

Kim Metcalfe, a spokeswoman for the project at 400 N. Lake Shore Drive, said more than 30 percent of the units were pre-sold but Shelbourne was "trying to figure out the next phase" and is in a "slowing-down phase."

Lets hope this dispute can be overcome soon.

[kayosthery]

Originally Posted by jstush04

So, uhm, are we gonna let Dalton back in? haha

*signs petition*

Yeah, it would seem that most, if not all of what he said here has come to fruition.

Steely, Tom... bear with me for one second, please.

Dalton was wrong about one major thing. "Dalton's Wheelbarrow" wasn't literally a wheelbarrow moved around the site to give the illusion of progress. Nor was it the trailer that showed up a few days ago, or last week, whenever it got there. "Dalton's Wheelbarrow" was and is the big goddamn hole we have all watched and worshiped for the past year, waiting for the day that visible progress would start and this awesome building we all love would begin to creep skyward. Wow, it was quite a show this guy was putting on.

But, don't get me wrong; I would like nothing more than for the content of this article to be a small obstacle that must be overcome. If this building starts construction, and the stars align, I still have a pretty decent chance of working on it. Here's to hoping and praying that Shelbourne can get its act together and this building becomes reality...

[Beck4ABigChicago]

dirtlaw,

What do you make of:

a) the sum of the liens (about 15mil)>
b) the statement that the 15mil recently advanced by anglo irish will not be used to pay for prior debt?

My limited legal experience in VC makes me feel like this might be either a move merely to protect or a little tiff (especially point 2). As you probably well know, if a lender is advancing money it will never be, with very limited exceptions, to pay prior debts.

Makes me wonder what exactly is going on here. I'm not sure things are exactly as they seem here, but I may be wrong. Is GK maybe positioning himself to do something here.....I hate to venture what exactly, but taken individually, this almost smells like a $$$ dispute more than anything...although, the fact that two firms are liening up is interesting.

Anyhow, someone should go out and see who/how many lien against Trumps properties which were ultimately completed.

[surfchicago]

The saddest thing is that I can count 3 major buildings in Chicago on hold. In order of importance:
*Spire
*Waterview
*Staybridge Suites
There may be others that I missed.

[cbotnyse]

I've been waiting for this announcement, and it really shouldnt be a surprise to anyone. I know many speculative posts have been deleted from here, but they've mostly been right. Its not hard to see given the state of the real estate and debt markets.

everybody cross your fingers for the Olympic bid (one year from now). That will save this project, IMO.

[Mojava]

Originally Posted by chicubs111

I know it doesnt sound good but i dont understand what they mean by calatrava stops work...the building is already designed isnt it?...

I'm quite certain that there is a ton of design and drawing that needs to be done to get the documents for the remainder of the tower (everything excluding foundation) ready for construction.