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

[the urban politician]

^ And it gained a foundation for a very tall building, along with the zoning. So eventually, somebody can build something bold on this site

[OneWorldTradeCenter]

Hi guys. Does anyone think they will resume with under-construction? The Shanghai World Financial Center has also been a long time on-hold. Now it´s complete.

[OneWorldTradeCenter]

We will see what happens.

[Neuman]

Just read some bad Chicago Spire news and figured this would be the best place to post it since the Spire thread is locked.

By Eddie Baeb and Thomas A. Corfman, Feb. 03, 2010

(Crain's) — A Dublin-based affiliate of Chicago Spire developer Garrett Kelleher reported a $207.6-million annual loss, much of which is attributed to the stalled Spire project.

Clarinabbey Ltd. says in an annual financial report filed last week in Ireland that the company took a loss provision against loans made to other companies led by Mr. Kelleher – including one that’s been a major financing vehicle for the Spire. Clarinabbey says the provision stems from “uncertainty associated with the recoverability of amounts owed by group companies.”

Financial results were reported in Euros and converted to U.S. dollars.

The Spire project, a twisting, 1,194-unit condominium tower at 400 N. Lake Shore Drive that would have been the tallest building in the United States, may account for at least $135 million of the $197.7-million loss provision, based on a previous filing by Shelbourne Finance Ltd., which is the entity pegged to the provision in Clarinabbey’s filing.

Shelbourne Finance has previously said the firm provided an interest-free loan of $38.2 million to a Spire-related entity and separately advanced the project $96.8 million, according to its 2008 annual report, the most recent available.

For the full article,
http://www.chicagorealestatedaily.co...ws.pl?id=36979

[Cro Burnham]

Former Chief Of Top Irish Bank Arrested Over Allegedly Hiding More Than $100M In Personal Loans

DUBLIN — The former chairman of Anglo Irish Bank Corp. was arrested Thursday on suspicion of committing fraud after he hid more than euro70 million ($100 million) in personal loans from shareholders.

Police said they arrested Sean FitzPatrick, 61, at his home in affluent Greystones, south of Dublin, at sunrise and seized his financial records during a search.

An arrest of FitzPatrick – one of Ireland's most high-profile businessmen during the lost Celtic Tiger boom – had been expected ever since police raided the Anglo Irish headquarters in April 2009 shortly after the bank's emergency nationalization to prevent its collapse . . .

[HomrQT]

Chicago Spire news update...

Auditors for Spire developer Kelleher raise funding questions
By Thomas A. Corfman, April 12, 2010

(Crain’s) — In another sign of woe for Chicago Spire developer Garrett Kelleher, auditors have raised concerns about “the ongoing funding” of his Shelbourne Property Group, according to a financial report filed last week by the Dublin-based company.

Accounting firm KPMG warned that additional write-downs to the company’s financials could be required if it is unable to recover loans to related companies that total 35 million euros, or $47.5 million, or obtain “adequate funding facilities,” according to a report filed April 6 with Ireland’s Companies Registration Office.


full article: http://www.chicagorealestatedaily.co...ws.pl?id=37787

[HomrQT]

Shelbourne Development's finance chief quits for role in web start-up
Tuesday May 11 2010
By John Mulligan

"Shelbourne Development's finance director Emmet O'Reilly has left the troubled property group that is headed by embattled developer Garrett Kelleher.

Mr O'Reilly, who has been with the group for over seven years, formally resigned as a director of the firm within the past couple of weeks.

It's understood he has taken up a role with Dublin-based web start-up Weedle, a social networking firm that was co-founded by Iain MacDonald, who headed the Perlico telephone company before selling it to Vodafone in 2007.

Weedle attempts to link people's skills with available work. The company recently announced the closure of a $4m (€3.1m) fundraising drive. Its investors include Michael Smurfit, who was also an investor in Perlico, and Enterprise Ireland."

More...

[Tom In Chicago]

From today's Tribune:

http://www.chicagobreakingbusiness.c...es-office.html

Chicago Spire developer closes sales office

Published on May 17, 2010 9:52 AM


The site for the proposed Chicago Spire skyscraper sits abandoned on April 1, 2010 in Chicago, Illinois. Work was suspended after the builder ran into financial troubles in 2008. (Scott Olson/Getty Images)

By Mary Ellen Podmolik | The developer behind the Chicago Spire closed its posh sales office over the weekend, relocating the marketing arm for the long-stalled project to a much less grand office space nearby.

Shelbourne Development Group, which has been battling the owner of the NBC Tower for nine months, consolidated the sales function into its own office space at 111 S. Wacker. A spokeswoman for Spire developer Garrett Kelleher denied that the move signaled that the project was dead.
"He's being smart," the spokeswoman said. "If you're in a situation where things are slowing down, you need to consolidate and you need to be smart. Clearly the economy has been tough and he's had to focus on areas of his portfolio that are doing well."

The sales office in the NBC building, which occupied the entire 18th floor, opened in early 2008 and included touches designed by Spire architect Santiago Calatrava and a built-out model of a Spire condominium.

The owner of the NBC Tower sued Shelbourne to evict the developer last August, charging that the company had not made a rent payment since April. In March, the case was dismissed by agreement, and a $55,082.06 judgment for NBC Tower was voided.

Instead of touring a model unit, potential buyers will see samples of materials and three-dimensional computer models, the spokeswoman said.

The sales office's closing is likely to cast more doubt on whether the twisting, 2,000-foot-tall skyscraper will ever rise from the circular hole in the ground that now exists alongside 400 N. Lake Shore Drive. Shelbourne has been beset by financial problems since starting the skyline-defining project just as the financial and real estate markets were seizing up.

Shelbourne and Kelleher remain in litigation with Bank of America Corp., which filed suit last August, charging the developer with defaulting on a loan and said it was due $4.9 million. Bank of America said Kelleher personally guaranteed the loan. Kelleher and his company fired back in a countersuit, claiming the lender committed fraud and deception in arranging a loan used to start the building.

Earlier this year, an accounting of Ireland-based Clarinabbey Ltd., a subsidiary of Kelleher's Shelbourne Property Group, showed it lost $197.2 million for the year ended March 31, 2009, with much of the loss tied to an intra-company transfer of funds for the Spire. It compared with a loss of almost $11.4 million in March 2008.

Separately, Joe Harmening, the Spire's director of development hired in 2007, left the firm earlier this year and has not been replaced.

Kelleher's other business interests include Lightstream Pictures, a California-based production company.

[Tom In Chicago]

Moving this out of the active proposal section since it's fair to say this bad boy is dead as disco. . .

. . .

[BVictor1]

http://www.chicagobreakingbusiness.c...es-office.html

Chicago Spire developer scales back on sales office
Published on May 17, 2010 9:52 AM | Submit a comment

By Mary Ellen Podmolik | The developer behind the Chicago Spire closed its posh sales office over the weekend, relocating the marketing arm for the long-stalled project to a much less grand office space nearby.

Shelbourne Development Group, which has been battling the owner of the NBC Tower for nine months, consolidated the sales function into its own office space at 111 S. Wacker. A spokeswoman for Spire developer Garrett Kelleher denied that the move signaled that the project was dead.
"He's being smart," the spokeswoman said. "If you're in a situation where things are slowing down, you need to consolidate and you need to be smart. Clearly the economy has been tough and he's had to focus on areas of his portfolio that are doing well."

The sales office in the NBC building, which occupied the entire 18th floor, opened in early 2008 and included touches designed by Spire architect Santiago Calatrava and a built-out model of a Spire condominium.

The owner of the NBC Tower sued Shelbourne to evict the developer last August, charging that the company had not made a rent payment since April. In March, the case was dismissed by agreement, and a $55,082.06 judgment for NBC Tower was voided.

[Onn]

Personally I don't think the Spire is dead, it's too far along to just cancel. I mean people have canceled 2,000 foot towers in Chicago before, but they generally had a good reason for doing so. It's hard to see a good reason to cancel this project. If Kelleher can't get it done I would suspect someone else will pick it up when the economy gets better. Calatrava has said he is still onboard with the project, the entire thing is already designed, it’s already been approved by the city, and there is millions of dollars worth of work already done on the site. I can't imagine someone not taking the opportunity to build it when they have a shot like this. This is a feasible project, unlike Frank Lloyd Wright's Mile High Tower. I think if it was meant to be cancelled someone would have cancelled it already. Historically speaking, these mega projects here can take 10 or more years to flush out.

[pherek]

Chicago Spire

Story from today's Tribune

"Chicago Spire developer gets funding, wants to resume project"

http://www.chicagotribune.com/busine...,6626095.story

[XIII]

Originally Posted by pherek

Chicago Spire

Story from today's Tribune

"Chicago Spire developer gets funding, wants to resume project"

http://www.chicagotribune.com/busine...,6626095.story

I don't need the full 2000 feet, but as long as they build it around 1777 feet, I'll be happy.

...not that I'm not still bitter or anything.

[ChiPsy]

Originally Posted by pherek

Chicago Spire

"Chicago Spire developer gets funding, wants to resume project"

http://www.chicagotribune.com/busine...,6626095.story

Let's see how many cheap shots Blair Kamin and the rest of the newsprint media (does David Roeder even still have a job?) can undermine it with this time around -- because nay-saying cynicism is the best way to show off your journalistic sophistication

[Skyguy_7]

You have to admire the man's will to succeed-

"Given the ongoing recovery in the Chicago property market, the timing is better now than when this project commenced," Kelleher said in a statement. "I am delighted to have found a partner who believes in the project as passionately as I do."

I am passionately pulling for him.

[F1 Tommy]

Originally Posted by pherek

Chicago Spire

Story from today's Tribune

"Chicago Spire developer gets funding, wants to resume project"

http://www.chicagotribune.com/busine...,6626095.story

Great news...For those who only like boring glass boxes, let me remind you Chicago is not eastern Europe during the cold war. We need more diversity, and the Spire offers that.

[Tom Servo]

Oh man, this... again?! Reading that article made my head spin. No fucking way this ever happens.

[BVictor1]

Originally Posted by Tom Servo

Oh man, this... again?! Reading that article made my head spin. No fucking way this ever happens.

Do you have to rain negativity on peoples parade? Be hopeful and keep your fingers crossed.

If it doesn't happen, it doesn't happen.

[LouisVanDerWright]

Originally Posted by Skyguy_7

You have to admire the man's will to succeed-

"Given the ongoing recovery in the Chicago property market, the timing is better now than when this project commenced," Kelleher said in a statement. "I am delighted to have found a partner who believes in the project as passionately as I do."

I am passionately pulling for him.

Despite the cranky naysayers in this thread, the above Kelleher quote is spot on. Credit markets are actually easier now for this kind of project than they were in 2007. The amount of cash being printed by central banks around the world has created giant pools of cash looking to flow into large projects with reasonable yields. If he is able to land a construction loan I won't be surprised. If he is able to get shovels in the ground again I think we will see the Spire standing tall by 2018.

I have to commend Kelleher on his tenacity. He clearly refuses to give up on this. If he gets it done he will instantly become a minor Chicago legend because that's the attitude that permeates the culture of this town. Pure willpower and brute strength.

[Buckman821]

Kelleher is dead on about the timing. If you look at what's been happening in NYC, there have been a lot of extremely successful projects in a mold very similar to that of the Chicago Spire (ultra tall, thin, extreme prices, targeting foreign buyers or otherwise people who have more money than god). I think the Chicago Spire was maybe just slightly ahead of its time.

If the Chicago Spire were a new project announced today, I'd be fairly bullish on it. Unfortunately, today it has to overcome its stigma.

In either case, I never thought Kelleher would even be able to pay off his debt. Maybe he does have a few more tricks up his sleeve. It will be fun to watch either way.