CHICAGO | General Developments

[SevenSevenThree]

Is it premature to say that CME-CBOT merger is a go?

Not sure if Im to post this here but:

http://chicagobusiness.com/cgi-bin/news.pl?id=25589


ICE won't raise offer for CBOT Holdings: WSJ

(AP) — IntercontinentalExchange Inc., in a battle with Chicago Mercantile Exchange Holdings Inc. for control of the Chicago Board of Trade, has decided against increasing its offer for CBOT Holdings Inc., according to a published report.

The Wall Street Journal, citing unidentified people familiar with ICE's deliberations, reported on its Web site Sunday that the Atlanta exchange decided over the weekend it wasn't worth trying to pay more for the CBOT, given the Merc's edge and its increased offer.

On Friday, the Chicago Mercantile Exchange's parent company sweetened its offer by 7 percent and won over Caledonia Investments, the largest shareholder in CBOT Holdings.

The move pushed the bid by Chicago Mercantile Exchange over $11 billion, up from the $8 billion initially proposed last October amid rising stock prices that have helped escalate the deal's value.

ICE's mostly stock-based bid, which had been ahead of the Merc's for most of the last three months, slipped Friday to about $11.7 billion, as CME's share price rose more than ICE's.

A telephone call Sunday seeking comment from ICE spokeswoman Kelly Loeffler on the Journal's report was not immediately returned.

CBOT shareholders are to vote on the Merc's offer Monday. Analysts said Friday that final approval looked secure barring a last-minute boost in the offer by ICE. Four proxy advisory firms have recommended approval of the combination.

Executives of the Merc and Board of Trade, rival exchanges dating to the 19th century, first agreed to combine in October before ICE complicated their plans.

Pairing the two futures and options markets would create the world's largest one-stop futures market for everything from interest rates to pork bellies and may make it the world's largest exchange of any kind by market value, rivaling or outpacing Germany's Deutsche Borse and the New York Stock Exchange.

The CBOT board of directors has always preferred the Merc's offer, maintaining its trading technology is superior to ICE's and that the two Chicago exchanges would make a stronger business combination.

Federal regulators signed off on the proposed combination last month.

[SevenSevenThree]

Man - is Spertus an absolute gem or what! This gives me optimism that real Architecture - architecture with a capital "A" (completely forward-thinking, without a hint of timid, apologetic BS moves) is truly making a comeback in this city...

I agree. My only complaint is about the glass. I was hoping for a more crystaline finish. I wanted it to shine like a diamond. Great project nonetheless.

[Loopy]

^The glass is dirty and has never been cleaned. Wait until they clean that glass and light it from within.

Schwwwwwwwwing!

[Via Chicago]

Man - is Spertus an absolute gem or what! This gives me optimism that real Architecture - architecture with a capital "A" (completely forward-thinking, without a hint of timid, apologetic BS moves) is truly making a comeback in this city...

There was an article in Crains today about the architects:

http://www.chicagobusiness.com/cgi-bin/article.pl?article_id=28056
No small plans for design duo
How an obscure firm became the hottest name in Chicago architecture

Millennium Park's Crown Fountain — an admixture of cascading water, black granite and gigantic faces projected onto glass block — has been a stepping stone for the architects who brought it to life.

Ronald Krueck and Mark Sexton, the duo who took the fountain from concept stage to reality, are suddenly the hottest architects in town.

"Their star is rising," says Lynn Osmond, CEO of the Chicago Architecture Foundation.

Messrs. Krueck and Sexton are now bringing their decidedly modern style to two projects along Michigan Avenue.

The latest commissions, the firm's first museums, will be a test of this city's appetite for their approach. They've won the assignment to design the Chicago Children's Museum, a project that's controversial for its proposed location in Grant Park and which could be more controversial still if the design proves too avant-garde for its critics' tastes.

They also designed the almost-complete Spertus Institute of Jewish Studies nearby, its facade a puzzle of 726 glass panels in 556 different shapes standing out from the brick-and-masonry structures near it on a landmarked stretch of South Michigan Avenue — not to everyone's delight.

"I don't like it," says Martin Tangora, a board member of Landmarks Illinois, a Chicago advocacy group. "It's hard for me to see how anyone could believe it conforms to the guidelines of the Landmark Commission."

Still, modern art and architecture are having their moment in and around Millennium Park, from the mercury drop-like Cloud Gate sculpture to the Crown Fountain to the flames of polished steel that Frank Gehry placed atop the Jay Pritzker Pavilion.

"In societies in general, it's a pendulum in terms of how adventurous they want to be about their surroundings," says Chicago architect Carol Ross Barney, who competed for the Spertus and Children's Museum jobs. "We're at a point now where a number of important people and communities want to see things we haven't seen before."

OPPORTUNITY KNOCKS

It's ironic that the Crown Fountain helped lift Krueck & Sexton Architects Ltd. from relative obscurity to winning the high-profile museum commissions that architects covet. They initially turned the fountain job down, in part because they consider their firm a design shop and the concept for the fountain had already been created by Spanish artist Jaume Plensa.

But the challenge of devising an invisible structure for the fountain's towers, which had stumped two previous architecture firms, eventually won them over. "It's easy to envision now that it's done," Mr. Sexton says. "But then, it was like seeing an airplane before there were any airplanes."

The opportunity to work with the billionaire Crown family didn't hurt, either. "We felt all along that whoever worked on the fountain . . . would have visibility and this would help whoever was involved," says A. Steven Crown, a general partner with Henry Crown & Co. who oversaw the project. "The fountain turned out to be better than any of us anticipated."

While Messrs. Krueck and Sexton have worked together for more than 25 years, they have mostly done residential and corporate office work in Chicago. They are known in architecture circles, particularly because of their longevity as partners — a rarity in the business — and their daring designs, but they haven't been household names.

Mr. Krueck, 60, grew up outside Cincinnati. His family was in the grocery business, and he says his father wasn't terribly supportive of his interest in art and architecture. Not long after receiving his degree in architecture, he tried his hand at painting for a while, studying at the Art Institute of Chicago.

Mr. Sexton, 51, whose father worked as a maintenance man for Otis Elevator before starting his own elevator company, grew up in west suburban Riverside.

MODERN TIMES

Both are products of the Illinois Institute of Technology, where Mr. Krueck also was a professor. IIT, marked by the stripped-down aesthetic of the master who planned its campus, Ludwig Mies van der Rohe, launched Messrs. Krueck and Sexton in the direction of modernism. Their firm endured some lean years as modern architecture went out of vogue.

"There were very few chances for us to build the work that we've been involved with for a number of years," Mr. Krueck says.

But in the past five years, Krueck & Sexton's revenue has doubled to about $2.75 million.

The Spertus, at 610 S. Michigan Ave., is already raising Krueck & Sexton's profile.

Spertus President Howard Sulkin says that last fall he was at a fundraiser for the U.S. Holocaust Memorial Museum when he ran into Mayor Richard M. Daley. The mayor asked whether the Spertus building would wind up looking like the architect's drawing — which the mayor said he had in his office and was showing people involved in the city's Olympics bid.

"This is a very special project," Mr. Sulkin says. "One of our goals . . . was to make a significant contribution to the resurgence of the Chicago School of architecture."

Messrs. Krueck and Sexton realized the Spertus "would be a life-changing commission," Mr. Sexton recalls. "When you're on the same street as Louis Sullivan and Daniel Burnham, you're on a pretty amazing street."

The two will now increasingly be competing with better-known names to land higher-profile work and more lucrative assignments.

Their biggest project outside Chicago is under construction in Washington, D.C., where they have designed a speculative office building for New York real estate developer Tishman Speyer Properties L.P.

"We'd like a more national and international presence," Mr. Sexton says. "The truth is there are only so many cultural institutions in any city."

[Via Chicago]

So I'm confused. ICE can keep upping its bid, even after the vote today?

http://www.chicagobusiness.com/cgi-bin/news.pl?id=25594
ICE chief mum on whether it will boost CBOT offer

(Reuters) — The head of the IntercontinentalExchange Inc. on Monday declined to say whether the ICE would offer a higher bid for the Chicago Board of Trade.

ICE is in a battle with the Chicago Mercantile Exchange to purchase the Chicago Board of Trade. The CME on Friday increased its takeover offer for CBOT to $11.9 billion, besting the ICE's current offer worth about $11.8 billion.

"I can't talk about it. Give me a break," ICE Chairman Jeffrey Sprecher told Reuters before testifying at a Senate hearing on excessive speculation in U.S. natural gas markets.

Sprecher also declined to say if the ICE would wait to make a decision on whether to make a new bid until after CBOT shareholders finish voting on Monday on the CME's offer.
Advertisement
Related Article Topics | Related Industry News

As for what is next for ICE if it loses the CBOT bid, Sprecher would not say if his exchange could become a takeover target itself.

[sentinel]

^^ I think it depends on the vote ratio and how high the percentage of votes FOR the CME-CBOT partnership are vs. the "No's"; If it's a 9-1 margin which is what some analysts are speculating, then I think ICE will not try to outbid CME because then they would be over-valueing what CBOT is worth and I doubt ICE's shareholders would approve of an even higher bid.

[sentinel]

Game over:

CBOT-Merc merger approved
Two former rivals join to create world's largest futures exchange

By Robert Manor
Tribune staff reporter
Published July 9, 2007


The shareholders of the Chicago Board of Trade appeared to overwhelmingly approve a merger with the Chicago Mercantile Exchange today, creating the largest derivatives market ever.

Final vote totals won't be available for several days, but CBOT Chairman Charles Carey said Monday afternoon "preliminary indications are this thing is going to pass overwhelmingly."

"We are now going to be on the world stage," said Leo Melamed, chairman emeritus of the Merc and the man most responsible for futures trading of financial instruments.

The $11.9 billion deal culminates ends more than four months of jockeying between Chicago Mercantile Exchange Holdings Inc. and upstart IntercontinentalExchange Inc. to acquire the 159-year-old Chicago Board of Trade.

Intercontinental, an Atlanta-based energy exchange, waged an aggressive proxy fight, urging shareholders of CBOT Holdings Inc., CBOT's parent company, to vote against the merger, which would have cleared the way for ICE's competing offer.

ICE offered as much as $11.7 billion, but refused to raise its offer on Friday when the Merc raised its bid a third time to win over CBOT's largest shareholder, Caledonia Investments, based in Australia.

The Merc's higher bid, improved from the $8 billion first offered in October, won over Caledonia and sealed the deal.

While the merger ends a sometimes rancorous competition between the two exchanges that dates back decades, it solidifies Chicago's role as a global center for the trade of derivatives.

Known as "derivatives," the contracts changing hands at the Merc and Board of Trade are a step removed from investments in tangible goods and are used hedge risks or place bets on market movements, providing leverage that can turn small fortunes into big ones.

The new exchange will have average daily trading volume approaching 9 million contracts per day, easily surpassing all of its direct competitors, with a market capitalization of more than $25 billion.

John Lothian, editor of the John Lothian Newsletter which cover exchange issues, said that after the merger is completed, the combined exchanges won't be satisfied with being simply the world's largest.

"We are in an age of consolidation," Lothian said. "They will be looking at acquiring exchanges."

The Merc's proposal for the CBOT in October offered a deal that would eventually come to involve both stock and cash. But a competing offer by ICE appeared to have the edge for months, as it promised shareholder as much as $25 a share more than the Merc, depending on the price of ICE and Merc stock.

Leaders of both exchanges have said the Merc takeover bodes well for the city. Mayor Richard Daley, who once separated a pair of exchange leaders who had a shouting match in his City Hall office, predicted the combination will be "good for the Chicago economy" when the merger was first proposed.

Though the exchanges directly employ fewer than 2,200, a number expected to shrink by several hundred after merger-related layoffs, they generate tens of thousands of local jobs through their trading activity.

The deal approved today is going to go a long way to make sure those jobs stay in Chicago, Merc Chairman Terrence Duffy, who will serve as chairman of the combined CME Group Inc., said earlier.

Both the Merc and Board of Trade got their start in corn, soybeans, butter, eggs and other agricultural commodities, and their rough-and-tumble traders still set benchmark prices for the global farm economy. During the 1970s and '80s, the exchanges hit it big by applying the same trading formula that worked for pork bellies to bonds, foreign currencies and stock indexes.

rmanor@tribune.com



Copyright © 2007, Chicago Tribune

[Via Chicago]

Personally, I think this is huge. There will always be another shot at a 2000' building, or an Olympics. But this was a 1 shot deal.:banana:

[wrab]

Personally, I think this is huge. There will always be another shot at a 2000' building, or an Olympics. But this was a 1 shot deal.:banana:

Huge indeed - and great news.

[mcfinley]

The CBOT-Merc deal is great for Chicago, possibly the most important transaction the city will see for a generation. Now, I'd like to see the company consolidate its gains for a few years so it could leverage a clean buyout of another exchange down the road.

[honte]

^ ICE perhaps? :D

[mcfinley]

^^^
Hell, Chicago's got a penchant for thinking big. Is a European exchange too greedy? :D

[Beck4ABigChicago]

I am reading that this will not only be the biggest derivatives market in the world, but also likely the largest market for anything in the world, surpassing the NYSE and the German Exchange. Anyone confirm this?

[the urban politician]

^ That seems to be the going presumption.

Does anyone else think that ICE should move to Chicago anyway, like it was planning to do?

Bah! Who cares. It's gonna get bought out by NYSE Group anyhow..

[rgolch]

^ That seems to be the going presumption.

Does anyone else think that ICE should move to Chicago anyway, like it was planning to do?

Bah! Who cares. It's gonna get bought out by NYSE Group anyhow..

Maybe not if the new CME can outbid, and buy it first.

[firstcranialnerve]

Hmm, I'm not sure how we can say its the largest exchange. NYSE merged with Euronext, and 70% of the CME trading volume is in the CME Euronext Globex system online. Trying to make CME bigger than NYSE Euronext is tail chasing? Do I have this right?

[honte]

^Does anyone else think that ICE should move to Chicago anyway, like it was planning to do?


Well, that was the promise. Whether or not they follow through may be a partial indication just how full of hot air the whole thing was.

[left of center]

I am reading that this will not only be the biggest derivatives market in the world, but also likely the largest market for anything in the world, surpassing the NYSE and the German Exchange. Anyone confirm this?

The CME was already the world's largest exchange in terms of market capitalization before this entire deal was even formulated. The CBOT i believe was third, behind the NYSE. Regardless of the merger, Chicago controlled 85% of US derivatives trading and half of global derivatives trading. The only immediate difference now is that the newly formed CBOT/CME will be able to fend off any acquisition attempts, and possibly acquire other exchanges. (NASDAQ, anyone?)

I'm just glad that ICE was barred from investing in any of the Chicago exchanges. This will end up being very good for the city.

[Via Chicago]

http://www.chicagobusiness.com/cgi-bin/news.pl?id=25602
What's next for the Chicago Merc?

AP) — Today, Chicago. Tomorrow, the world?

Even before the Chicago Mercantile Exchange's $11.9 billion purchase of the crosstown Board of Trade won final approval from shareholders, industry experts were speculating on possible acquisitions ahead for the new juggernaut of the financial exchange industry.

The targets, analysts suggest, could include other large exchanges from New York to London and beyond.

``The fact that they're talking so much about being global, I think that means something,'' Michael Henry, an exchange expert for consulting firm Accenture Ltd., said from Paris.

CME Group Inc., the company being created from Chicago Mercantile Exchange Holdings Inc.'s acquisition of CBOT Holdings Inc., should have plenty of resources to go after another company after completing the integration that the two exchanges began planning last October.

The green light to go ahead with the combination came Monday from shareholders of both parent companies in votes that reflected the sweetening of the Merc's bid three days earlier. IntercontinentalExchange Inc. effectively conceded the four-month bidding contest for the Board of Trade by not coming back with a final offer.

That left the Merc, the No. 1 futures markets by volume, and CBOT, which is ranked third, free to pair up after more than a century of competition against one another. The seemingly unlikely union ultimately made sense in an era of increasing consolidation and rapid growth in electronic trading.

``The trend of the industry is you have to get bigger or get out,'' said Harlan Krumpfes, an agriculture trader at the Board of Trade since 1975, after casting his vote in favor of the Merc's proposal.

The all-Chicago exchange still won't have a strong presence in energy futures and doesn't have stocks, so those could be on its wish list, according to Henry.

``I think the global exchange landscape is going to be dominated by companies that have a larger product range than they have. So I think a reasonable move might be to buy a big European exchange,'' he said, suggesting the London Stock Exchange as a potential target.

Chicago-based analyst Patrick O'Shaughnessy of Morningstar agreed that an international transaction might make sense for CME. So might a tie-up with the New York Mercantile Exchange, since the Merc already provides an electronic trading platform for Nymex products.

He noted that there has yet to be a deal in which a futures exchange buys a stock exchange.

``I don't think more mergers are inevitable, but I think that they're logical,'' O'Shaughnessy said.

Executives of the combined company, who used the word ``global'' multiple times in comments after Monday's votes, haven't ruled out anything.

``Starting on Day One, our combined company will be ready to compete in the global environment well-armed for growth and innovation,'' said Bernard Dan, CBOT president and chief executive.

Traders and shareholders will pocket huge amounts from the deal, softening any blow from the end of 159 years of independence for the Board of Trade. There are other consolations, too: The older exchange's Art Deco headquarters will house the combined firm's trading operations, and CME Group will be formally called ``a Chicago Board of Trade company.''

``It's a happy day, it's a moving-forward day — it's kind of an inevitable day,'' said Jerome Israelov, 43, a wheat trader at the Board of Trade. ``It's just a logical move forward for the industry.''

[bnk]

http://www.chicagotribune.com/news/nationworld/chi-tue_cbotvotejul10,1,4207439.story?coll=chi-newsnationworld-hed

THE HISTORIC MERC-BOARD OF TRADE DEAL

City 'on the world stage'
Biggest commodities market may target other exchanges



By Robert Manor
Tribune staff reporter

July 10, 2007

The Chicago Mercantile Exchange and the Chicago Board of Trade won their bruising battle for a merger Monday, creating a behemoth that cements the city's status as an international center of finance.

The $11.8 billion combination of the Merc and the CBOT puts an end to decades of rivalry between the two downtown trading pits and makes Chicago home to the largest market in the world for commodities and financial instruments. This comes at a time when exchanges from Germany to Canada are growing rapidly and acquiring each other.

"The derivative center will be Chicago," declared Leo Melamed, chairman emeritus of the Merc and one of the visionaries responsible for a futures market to trade financial instruments. "We are now going to be on the world stage."

The merger, first announced last October, almost didn't come together because of the surprise intervention of Atlanta-based IntercontinentalExchange Inc., an upstart that set off a bidding war for the CBOT. Although ICE didn't get its way, it forced the Merc over months of back-and-forth to come up with about $3 billion more to seal the deal.

With their final offers equal in values, CBOT shareholders finished voting Monday afternoon whether to approve the merger, leading Charles Carey, the CBOT's chairman, to announce: "Preliminary indications are this thing is going to pass overwhelmingly." While the final tally isn't due for days, enough votes had been cast early to assure a Merc victory.

A merger of the Merc and Board of Trade was once unthinkable, so different were they in cultures and so cut-throat was their competition. But in the past decade, as the rise of electronic trading broke down ideas about what could be traded and where, the industry underwent a seismic shift. Nearly all the markets, once clubby and local institutions, are now publicly traded, for-profit enterprises with global reach and 24-hour business cycles.

These changes were dramatic enough to bring the two Chicago markets together, and they almost certainly mean there will be more combinations, a trend that already spans continents.

John Lothian, editor of a newsletter that covers exchange issues, said the Chicago behemoth won't be satisfied with being simply the world's largest.

"We are in an age of consolidation," Lothian said. "They will be looking at acquiring exchanges."

The Merc traces its history to 1898, when it was known as the Chicago Butter and Egg Board. It adopted its current name in 1919. The Chicago Board of Trade was established in 1848 to trade in corn, wheat, oats and soybeans.

That elemental system of commodities trading evolved since the early 1970s into a system of trading risk and security in everything from currencies to interest rates to fluctuations in the weather, although agricultural commodities remain a major business.

For generations, the system involved people trading futures contracts face to face on giant trading floors. That continues today, but the bulk of trading has migrated to electronic platforms in which people can participate in markets such as Chicago's but never step foot here.

The CBOT is to adopt the Merc's Globex electronic system next year, while the floor traders of the Merc will migrate to the pits at the CBOT. They already shared essential back-office functions, one of the reasons why the managements of the two exchanges favored combining.

Melamed saw the future in electronic trading.

"I have been a proponent since 1987," he said. "At the time, I thought [floor trading] would be gone in five or 10 years.

"I was wrong," he said, adding that he is now leery of predicting how much longer face-to-face trading will last.

"Who is to argue with it?" he said. "If the customers want it, give it to them."

The speculation now is that after a period of integration, the Merc will go on the prowl again to bulk up its trading capacity and secure a wider variety of products to offer. Industry observers expect many of the world's exchanges eventually will be owned by a few elite holding companies. This year, for example, the New York Stock Exchange merged with Euronext, which trades derivatives throughout Europe.

"The exchange markets are going to be dominated by three or four large companies," predicted Michael Henry, senior executive of consulting firm Accenture's capital markets practice.

The Merc merger with CBOT is a bid to become one of those big players, and Henry said he expects the company to go after an overseas exchange. "They are saying, 'We want to be a major player, we want to be global,'" Henry said.

Jon Najarian, a CBOT trader, said the Merc might not have to look anywhere exotic for a purchase. The Chicago Board Options Exchange, which trades options on stocks, is a very short walk from the Chicago Board of Trade building.

Members of the CBOT have the right to a seat on the CBOE, although the options exchange has asked federal regulators to extinguish that right under the argument that after the merger, the CBOT no longer will exist.

"The CBOE is a logical fit," Najarian said.

Najarian also said he expects the Merc to go after businesses now held by ICE and the New York Mercantile Exchange. Both of those exchanges trade energy futures, a fast-growing part of the derivatives industry.

"They will be so big," Najarian said of the merged exchanges, "that they can go after anything they want."

Among the growth markets of the future are China and India, where an increasingly wealthy and sophisticated class of business people are expected to avail themselves of financial derivatives. While the two countries' governments restrict foreign ownership of exchanges, the usefulness of derivatives to businesses could be lucrative for exchanges located elsewhere.

Stuart Ellison, a trader at the CBOT for 31 years, sees the potential.

"The timing is perfect for this marriage," Ellison said. He said he was glum when he voted for the Merc's offer last week because the price was lower than ICE's, but his mood lifted when the richer offer was announced Friday.

"All of a sudden, everybody is smiling," Ellison said.

The Merc proposed to the CBOT in October, offering a deal that would eventually come to involve both stock and cash. But the competing offer by ICE appeared to have the edge for months. Then on Friday the Merc effectively matched the ICE offer, leading that exchange to give up. Merc shareholders also approved the merger.

The merged exchanges have a capital market value of about $30 billion.

Many details of the merger remain to be worked out. For example, with its two cavernous trading floors emptied, what will be done with the massive Merc building at 20 S. Wacker Drive?

"We will have an announcement about real estate later," said Merc spokesman Allan Schoenberg.

"I'm waiting for the world's largest Starbucks," he said.

[laro3]

the cme will be the biggest most powerful exchange in the world,blowing buy the nyse,they want the new york mercantile next,but any exchange can be taken now by the merc,WORLD WORLD LEADER NOW!!!!!

[Taft]

Hmm, I'm not sure how we can say its the largest exchange. NYSE merged with Euronext, and 70% of the CME trading volume is in the CME Euronext Globex system online. Trying to make CME bigger than NYSE Euronext is tail chasing? Do I have this right?

Not quite. Globex is a completely separate exchange and platform than the Euronext. Globex pre-dates most electronic exchanges, including the Computer Assisted Trading System developed by Paris Bourse (the "founder" of the Euronext exchange).

It is true that the Globex shares some underlying technologies with Euronext. However, those technologies are mainly infrastructure related, allowing Globex and the Euronext to run effectively non-related platforms. So saying "CME Euronext Globex" isn't very accurate.

Taft

[BVictor1]

http://www.suntimes.com/business/461643,CST-FIN-cbot10.article

CBOT to Merc: 'I do'
EXCHANGES | Members OK $11.9 billion merger with futures rival

July 10, 2007

BY DAVID ROEDER droeder@suntimes.com


There was no jostling, no hand signals and certainly no shouting. But the member-owners of the Chicago Board of Trade, skilled at the art of the deal, on Monday completed the exchange's $11.9 billion sale to the Chicago Mercantile Exchange and hailed it as their best trade ever.

Shareholders of both exchanges overwhelmingly approved the sale in meetings that brought a perfunctory end to a tense four months. The CBOT nearly wriggled away from the Merc because a competing bidder, IntercontinentalExchange Inc., kept offering more money.

The issue was in doubt until Friday, when the Merc provided what one source called the long-awaited "bump," the upgrade in the offer that swept any sentiment for rejecting its price. The bump was an improved stock swap ratio that all but wiped out a $1 billion advantage for the bid of ICE, as IntercontinentalExchange is known.

Until then, many thought CBOT shareholders would defy management's recommendation and vote down the merger.
Instead, they voted it through during a meeting that lasted barely 10 minutes. The sometimes contentious bunch didn't ask a question or raise an objection, even though at least 300 attended the historic session at the Union League Club.

Merc stockholders will own about 64 percent of the combined exchanges, which put aside decades of rivalry to combine. Intense global competition and attractive cost synergies in electronic trading drove Chicago's two futures giants together after decades of being the business community's version of the Hatfields and the McCoys.

The sentiment that a great trade was done extended from the two exchange chairmen to shareholders who were longtime traders.

"It's the greatest trade in the history of Chicago," gushed CBOT Chairman Charles Carey, whose friendship with Merc Chairman Terrence Duffy started the process.

Duffy chimed in that it was the first time in his experience that both the buyer and seller were winners. The two men have known each other since 1983 when they dealt in hog futures at the Merc.

Together, the exchanges will be the largest futures market. Apart, they would have been a target for an out-of-town buyer, such as the New York Stock Exchange parent, that could have spirited one of Chicago's signature industries to another city.

It all made sense, but only after the Merc moved to fairer price, CBOT shareholders said. "The Merc was always the right partner. Now it's at the right price," said a 30-year soybean trader.

Member Lee Stern called the approval "a thrilling moment after 57 years" of membership. "But I think it's just a tremendous beginning. I wish I had another 57 years to follow along."

While the Merc is in the driver's seat, CBOT traders will remain a powerful voice in the new company. More than 70 percent of the CBOT shares are in traders' hands, while Duffy estimated that only about 10 percent of the Merc's stock is member-controlled. Most has gone to institutions.

"To us, this is pennies from heaven," said a happy Mike Auster, a CBOT member since 1968.

It's a lot more than pennies. Full members, who might have spent just a few thousand dollars to get into the place decades ago, control a seat currently valued at $950,000. And to have that, they also must have at least 27,338 shares of stock that the Merc deal values at $214.08 each.

Those shares went public at $54 in October 2005. The Merc, whose stock closed Monday at $570.88, went public at $35 in December 2002.

Merc shareholders approved the buyout in their own meeting Monday at UBS Tower.

Both companies said the shareholder votes were lopsided, but final totals won't be available for a few days. Once the totals are certified, the deal should officially close, executives said.

There was no last-ditch counter offer from ICE, an Atlanta-based electronic exchange that stunned the Chicagoans in March by beating the Merc's original $8 billion offer for the CBOT. ICE Chairman Jeffrey Sprecher sent a statement thanking CBOT shareholders for their time.

In the months since, ICE made two improvements to their deal, taking an aggressive and creative tack that made the Merc scramble. But CBOT managers refused to embrace ICE, arguing that it was an inferior business partner compared with the Merc and its computers couldn't assimilate the CBOT's massive volume.

The CBOT electronic trading, now the core of the business, is expected to move to the Merc's Globex network by the end of the first quarter of 2008. The Merc's trading floors, however, will transfer to the CBOT space by the end of the second quarter of 2008, executives said.

What happens to the Board of Trade name, which dates from 1848, is unclear. "Nobody is going to take the name Chicago Board of Trade off the side of their building," Duffy said.

Merc Chief Executive Craig Donohue said the exchanges are still working on a branding strategy for the name. The official name of the combined company is CME Group Inc., a CME/ Chicago Board of Trade Co.

Duffy will be the chairman and Carey the vice chairman, with Donohue becoming the chief executive.


The deal's basics

Exchange ratio: Chicago Board of Trade shareholders receive 0.375 shares of the Chicago Mercantile Exchange for each CBOT share.
Valuation: $11.9 billion at the close of Monday's trading
Onetime dividend: $9.14 a share
Post merger tender offer: $560 a share/$3.5 billion maximum
Majority control: About 64 percent with the Merc
Price of CBOE trading right: $250,000 per member minimum*
Board makeup: 20 Merc, 10 CBOT
Headquarters: At CBOT, 141 W. Jackson
Trading floor: At CBOT
Name: CME Group
Expected synergy: $150 million in annual cost savings starting in Year 2.
Layoffs: Amount undetermined in combined work force of 2,100
Integration target dates: 1st quarter 2008 for electronic systems, 2nd quarter 2008 for trading floors
Expected closing: Within days

* refers to CBOT's legal dispute over members' trading access at Chicago Board Options Exchange

[honte]

Many details of the merger remain to be worked out. For example, with its two cavernous trading floors emptied, what will be done with the massive Merc building at 20 S. Wacker Drive?

"We will have an announcement about real estate later," said Merc spokesman Allan Schoenberg.

"I'm waiting for the world's largest Starbucks," he said.

I think the fact that they are retaining the trading operations on LaSalle Street is a pretty major event too. People have been speculating about the demise of the street as the financial center of Chicago for a long time now, with Wacker being more of the trophy address.

But with this news, do you all think there will be renewed interest in LaSalle?

[ardecila]

I think that there will be a parity between the two. With so many historic buildings on LaSalle, any growth in office space will have to occur in the surrounding areas... Wacker Drive has plenty of LARGE buildings to fill the demand.

However, I don't think either will become a household name like Wall Street is.

Which reminds me, I still need to find out some stuff about that building proposed at the NY Life site, and whether they plan to continue it.

[Eventually...Chicago]

Maybe if the chicago markets continue to grow and increase their prominence, lasalle will become the center of business again but i don't think being on a street is all that important for businesses anymore. I think a good example are the locations of the 2 hines projects. They are practically on lasalle (the portion of lasalle we are talking about) or wacker, but not quite. I think office building locations have the luxury of being more casual with where they are located. That is, as long as they are close enough to the center, that is good enough.

Besides i think buildings like the rookery, although absolutely one of the best buildings in the city, has seen the last of its days as a class A office building. I think that this is actually a good thing for lasalle street. Small businesses will probably become more dominant in that area while larger tenants go to the top spaces.

[SamInTheLoop]

Maybe if the chicago markets continue to grow and increase their prominence, lasalle will become the center of business again but i don't think being on a street is all that important for businesses anymore. I think a good example are the locations of the 2 hines projects. They are practically on lasalle (the portion of lasalle we are talking about) or wacker, but not quite. I think office building locations have the luxury of being more casual with where they are located. That is, as long as they are close enough to the center, that is good enough.

Besides i think buildings like the rookery, although absolutely one of the best buildings in the city, has seen the last of its days as a class A office building. I think that this is actually a good thing for lasalle street. Small businesses will probably become more dominant in that area while larger tenants go to the top spaces.


You got it. First, I do think this merger will have a net positive impact for LaSalle St. Also, although I wasn't a huge fan of its creation, the LaSalle St TIF should also lend some tangible positive benefits. I see LaSalle as really emerging as a boutiquey location for smaller firms - obviously smaller law and financial services firms, but hopefully some more smaller exchange-related businesses after the merger and perhaps more small startups as well. I think it's clear LaSalle is never going to be the Class A center for larger prestige firms (they of course crave expansive, airy, light-filled floor plans with views and the latest technology, efficiency, environmentally-friendly features, etc......) but I think that's just fine. We have places for them - Wacker Drive, along the River, further West, River North, etc. I love how successful cities need to continually re-invent themselves, and Chicago is one of the best at this!

[SamInTheLoop]

I think that there will be a parity between the two. With so many historic buildings on LaSalle, any growth in office space will have to occur in the surrounding areas... Wacker Drive has plenty of LARGE buildings to fill the demand.

However, I don't think either will become a household name like Wall Street is.

Which reminds me, I still need to find out some stuff about that building proposed at the NY Life site, and whether they plan to continue it.


Even if it's still an active proposal, imo Hamilton is likely to be unsuccessful in landing a large anchor lease and thus probably will never happen...

[harryc]

Getting to the SSC aspects .... the CME towers are great to work in, 16 corner offices per floor. 2 towers. Just across the river from 2/3 of the Metra trains, and close to all the El lines.

The CBOT building has to be seen, and walked in, to truley appreciate, I would cut through it just for the view ( probably can't do that anymore ). It is next to the other 3rd of the Metra trains, and has it's own El stop.

I wonder which trading floor they will close first.

CBOE sits on 2 power grids though ... that was key in 1993 when the loop grid was shut down.

[harryc]

1992

[the urban politician]

http://www.chicagoagentmagazine.com/news/index.asp?id=818
Sales Start at 33Six: Condos Offer High Tech, Low Prices in Popular West Loop Location

http://www.33sixchicago.com/images/body.jpg

Chicago-based Irongate Land Company has announced the start of sales for 33Six, a new 70-unit condominium mid-rise, located at Morgan and Van Buren streets in the West Loop.

33Six will feature one-bedroom, one-bedroom-plus-den, two-bedroom and two-bedroom-plus-den floor plans in a contemporary 11-story building designed by Chicago-based Hartshorne Plunkard Architecture. Homes range in size from 690 to 1,220 square feet and are base-priced from the low $230,000s to the mid-$400,000s. There is also a selection of penthouse floor plans offering up to 1,685 square feet. Secured, indoor parking will be available for $35,000.

“33Six has an incredibly convenient location just two blocks from the Blue Line ‘L and Eisenhower Expressway, and within walking distance of UIC, the Illinois Medical District and Greek Town,” said Anthony Tiritilli, president and CEO of Irongate Land Company. “We’re also hitting a price point from the low $230,000s that’s going to be very attractive to first-time homebuyers. And we’re including a number of upscale features – both in terms of style and technology –these buyers will really appreciate.”

Residences at 33Six will offer open, loft-style floor plans with 10’ concrete ceilings and exposed ductwork, a balcony or terrace, hardwood flooring, granite countertops and stainless steel appliances.

Another carefully selected feature is 33Six’s home technology package. Each home will include structured wiring for an MP3 docking station, two built-in speakers, and high-speed phone, cable and Internet lines. Irongate will also include a reinforced mounting location for a flat-panel TV, and Wi-Fi access will be available throughout the building.

“As far as our customers are concerned, technology infrastructure in the home is not a luxury anymore; it’s a necessity. Whether they’ve got their whole life inside their iPhone or iPod, or they’re permanently attached to their BlackBerry, Gen-X and Gen-Y need their home to integrate with their personal technology. And we all know how quickly that technology will change,” said Tiritilli.

“It has to be frustrating to feel like your new home is outdated the day you move in, but that’s what’s happening with a lot of new construction. 33Six is designed from the inside out to keep up with technology and be functional years down the road,” he said.

While Irongate has put an emphasis on luxury appointments within the home, it has purposely held back on common-area amenities, like a doorman, swimming pool or resident’s lounge, which drive up the cost of assessments, Tiritilli noted.

Instead, 33Six will feature a phone/video entry intercom and cardio room, as well as an 11th-floor sundeck and convenience retail at street level.

“Our target market has told us they don’t want to pay for amenities they’re only going to use twice a year. They’d rather have an assessment that’s a few hundred dollars less, so that they can go out on the weekends and enjoy themselves or take a trip or pay for grad school,” said Tiritilli. “A pool and doorman sound great until you open up your assessment bill, and you’re looking at $500 or $600 on a two-bedroom condominium. That’s a car payment and then some.”

Other features at 33Six include ceramic floor and wall tile in the bathroom; cultured marble vanities with integral bowls; and designer chrome faucets. Select plans include separate, walk-in showers.

33Six is a pet-friendly building with a number of parks located nearby. The building is also within walking distance of some of the best dining, nightlife and cultural offerings in the West Loop, such as Randolph Street’s “Restaurant Row” and Greek Town. Residents are in proximity to transportation options including the Ogilvie Transportation Center, Union Station, the CTA Green and Blue Lines, and Interstates 290 and 90/94.

Sales are being conducted by @properties. For more information, visit www.33sixchicago.com, or contact exclusive listing agents Rick DeMaria, (312) 492-0008, and Marty Winefield, (312) 669-9205.

Irongate Land Company is a Chicago-based developer specializing in city and suburban infill communities and regional secondary markets. Led by an executive team with more than eight decades of combined experience in development, architecture, construction, appraisals and real estate finance, Irongate is committed to building a legacy through thoughtful design and customer advocacy.

[jjk1103]

...I know this is just a little post, considering all the important events of this week.....but they are starting to take the scaffolding off of the top of the refurbrished Blackstone Hotel....it is truely a 1912 gem !

[SamInTheLoop]

^ Looks like the "The Morgan" has been taken over by a new developer. It was marketed spring-summer '06 and I wasn't sure what happened to it. I assume sales were not spectacular. The former developer was The Keating Group. Curiously, it is still featured on their website:


http://www.keatinggroup.com/morgan/index.html

[AJphx]

http://www.chicagotribune.com/business/chi-sat_abn_0714jul14,0,3603303.story?coll=chi-business-hed

Court clears way for sale of LaSalle Bank
Bank of America deal wins Dutch OK

By Becky Yerak, Tribune staff reporter. The Associated Press contributed to this report

July 14, 2007

Bank of America Corp. on Friday won a major battle in its three-month struggle to buy LaSalle Bank when the Dutch Supreme Court ruled that parent ABN Amro NV didn't need shareholder approval to sell Chicago's No. 2 bank.

The decision was a blow to Charter One, whose parent, Royal Bank of Scotland Group PLC, also coveted LaSalle as a way to boost its Midwestern presence.

In April, Barclays PLC, the United Kingdom's third-biggest bank, agreed to buy Amsterdam-based ABN for $88.8 billion in the world's biggest bank takeover. As part of the deal, Bank of America, which is the nation's second-largest bank but ranks only 12th in Chicago-area market share, would buy LaSalle. Days later, Edinburgh-based RBS and two partners had other ideas, indicating they'd pay about $98 billion for ABN.

Then, the Barclays-ABN deal suffered a setback when an Amsterdam court blocked ABN's sale of LaSalle because it lacked shareholder approval.

However, the Dutch Supreme Court overturned the lower court ruling, saying there were "no grounds" to block the $21 billion sale of LaSalle to Bank of America.
"The fact that the shareholders aim at selling their shares at the highest possible price involves no obligation for the board of directors of ABN Amro to obtain approval of the sale of LaSalle," the court said in its ruling.

Bank of America, which has a history of operating under one name, will retire the LaSalle name if the sale is completed. It also has said that it sees the potential to cut costs at LaSalle by as much as 50 percent, suggesting widespread job reductions. But relatively few branch closings are expected.

"We are pleased that the Supreme Court has vacated the injunction and ruled that our contract is valid and should be executed," Bank of America said Friday. "We are looking forward to completing this important strategic transaction as soon as possible."

RBS said Friday that its group plans to make a revised offer for the rest of ABN.

"It is over as far as LaSalle goes," Mike Trippitt, an analyst at Oriel Securities Ltd. in London, told Bloomberg News.

But one legal observer isn't so sure.

"The principals are making noises like it's all over, and they're probably right, but we'll see," said Carl Tobias, a University of Richmond law professor. He wonders whether ABN shareholders will try to force the issue in other court venues.

"I'm wondering whether they could go into British or U.S. courts if they're so inclined," he said. "They were unhappy enough to force the issue in the Netherlands, so why not continue it in another venue?"

Bank of America is the "main winner" from Friday's ruling, "although it is still possible that another legal challenge to the sale of LaSalle," perhaps by a shareholder group, could be launched, Credit Sights, an investment research firm, said in a note Friday. "It's also possible that RBS could reach a separate agreement with Bank of America to acquire parts of LaSalle, although we do not think this is likely."

Peter Paul de Vries, director of Dutch shareholder-rights group VEB, said he was disappointed with the court's decision. ABN management "may have won this battle, but they will lose the war," De Vries said, referring to executive support for the Barclays deal.

---------------------------------------------------------

Excerpt from an article in The Scotsman:
http://business.scotsman.com/index.cfm?id=1101452007

In a further distancing from LaSalle, another source told Scotland on Sunday that, contrary to reports, RBS would not be trying to buy back any part of LaSalle from Bank of America. Some have said it may try to buy the commercial operations, but the source said this was a "dead duck".

[SamInTheLoop]

no pics but, noticed on Wabash Ave today that portions of the sidewalk and street are being fenced off. Looks like the streetscape project is underway.


That's great news - I'm looking forward to these improvements.

[Nowhereman1280]

Quick question, a bit off topic, but its important.

I need to find the name of a developer active (maybe based in) in the Chicago area that starts with a C and ends with Irving... All my attempts at using Emporis or Google to find it have failed. Granted this may or may not be a highrise developer. I only know they are involved with buying lots in the Dallas area...

Any ideas? If someone with superior googling skills could help me out I would greatly appreciate it!

[Bucky]

Although it doesn't begin with a C, could you be looking for Harlem-Irving?

[Busy Bee]

^This may be of no help but a development company by the name of CA Development does and has done a lot of work in Irving Park. This probably isn't what you are looking for but I thought I'd give it a shot.

[Nowhereman1280]

Thanks guys, I'll look both those up and see if those are the companies I've been told of... I was actually told to figure out what company was being talked about by someone else, so I'm stuck when it comes to the actual name, they were probably confused when they told the whole C irving thing anyhow...

[jjk1103]

....I went by the Blackstone Hotel redevelopment today....the scaffolding is off the Michigan Av side of the building.........it is really spectacular !!! ....what a gem !!

[VivaLFuego]

Does anyone know the story behind the vacant, weed and gravel-filled lot at 54 E. Scott? There's gotta be some reason such an absurdly prime piece is sitting undeveloped...

[ardecila]

Google Earth shows no such vacant lot, meaning it's been vacant for only 4 years at most (GE's Chicago images were shot in 2003).

[brian_b]

Court clears way for sale of LaSalle Bank
Bank of America deal wins Dutch OK


I've got two accounts at LaSalle that I'm closing once this deal goes through. I detest BoA. LaSalle wasn't exactly the best bank in the world either, but they weren't offensive by any means. Now I just have to find another bank convenient to me. :???:

[Mr Downtown]

Google Earth. . . Chicago images were shot in 2003).
Which is why it's useful for folks to know about local.live.com (http://local.live.com/) (Chicago planimetric aerials from Nov 2006/obliques from last summer 2006). The only problem is that it won't load in Safari.

Ask.com's (http://city.ask.com/city) Chicago aerials are from summer 2006.

You can compare all the different sources using flashearth.com (http://www.flashearth.com/)

[ardecila]

Oh, I know about the other sources.

However, I primarily work in Google Earth, because of the integration with SketchUp.

[sentinel]

Which is why it's useful for folks to know about local.live.com (http://local.live.com/) (Chicago planimetric aerials from Nov 2006/obliques from last summer 2006). The only problem is that it won't load in Safari.

Ask.com's (http://city.ask.com/city) Chicago aerials are from summer 2006.

You can compare all the different sources using flashearth.com (http://www.flashearth.com/)

Thank you very much for those links Mr. Downtown :tup:

[DHamp]

I just got back from biking on the lakefront trail. Between 43rd and 37th there was a large area of the lakefront that was fenced off and there was a crane and other construction vehicles. The path had to do some pretty sharp detours to avoid the work area.

Does anyone know what's going on there? Are they just doing more terraced step lakefront walks or something more intricate?

[Mr Downtown]

Revetment replacement. Probably the standard Corps of Engineers landing-strip design. Hyde Parkers keep fighting about doing Promontory Point as step-stones like the historic revetments, but the Corps is not very good at listening.

[hoju]

More NIMBY entitlement at the expense of sensible urban planning:

Neighbors split over six-story development
http://www.pioneerlocal.com/booster1/news/472111,b1-Development-071807-sl.article
July 18, 2007
By PATRICK BUTLER Staff Writer

Residents voted 85 to 66 against developer Jim Jaeger's plans for a 66-unit, six-story mixed residential/commercial building at 1820-46 W. Irving Park Rd. during an often heated July 10 meeting.

Jaeger, who was seeking community support to change the site's zoning from B-2 to B-5 to allow a larger building, had no immediate comment.

But Alderman Eugene Schulter, 47th, who called the meeting to get neighbors' thoughts about controversial plan, said, "I would hope they (Jaeger and architect Jonathan Split) hear what went on tonight and either build according to the existing zoning or come back with another plan.

"Obviously, this project is not going to receive my support," Schulter said at the end of the two-hour session at Pilgrim Lutheran Church, 4300 N. Winchester Ave., that pitted neighbor against neighbor. One speaker was even booed for praising Jeager as "a developer who has gone above and beyond."

Jaeger's plan called for 7,600 square feet of commercial space with 20 business parking spots, as well as 110 residential parking spaces. The fifth story would have been topped by a six-unit penthouse and a rooftop lawn, which Split told an estimated 225 listeners, "makes this a five-story building, not six floors." And the building itself would have been a compact 224-by-120 feet, he said.

While some complained that a project that large would aggravate already serious parking and traffic congestion problems, Split and Jaeger said the project had been scaled down from the original 88-unit, seven-story building discussed at the last community meeting about two months ago.

But even that wasn't enough for people like Robert Hoellen, who said he lives within two blocks of the site and has "serious concerns" about putting up a building that large across an alley from single-family homes. Hoellen said this would set a precedent for putting in larger buildings along adjoining residential streets.

"Before you know it, it will look like Broadway," said Hoellen.

Others complained that not everyone in the neighborhood received timely notification of last week's meeting. "If that's true, you can blame our efficient Postal Service," Schulter said.

Aldermanic aide Tom Luna said later that the law requires letters be sent to everyone within 250 feet of a development where a zoning change is sought, but added that Schulter's policy is to go "from intersection to intersection," which in this case meant everyone between Byron, Damen, Ravenswoood and Belle Plaine.

On the other hand, Ozzie Arman said, "we're in Chicago and we're running out of land. I'd rather see him (Jaeger) put something like that where we can maximize the land instead of putting in two or three units and have a problem in the future."

But Tom Okon, a resident of the 1800 block of Cuyler who heads the North Center Neighbors founded several months ago partly to block Jaeger's project, couldn't have been happier.

"I'm glad it was voted down. There seemed to be a lot of people for it. At one point I thought it could have gone either way."

[harryc]

More NIMBY entitlement at the expense of sensible urban planning:

Neighbors split over six-story development
http://www.pioneerlocal.com/booster1/news/472111,b1-Development-071807-sl.article
July 18, 2007
By PATRICK BUTLER Staff Writer

Residents voted 85 to 66 against developer Jim Jaeger's plans for a 66-unit, six-story mixed residential/commercial building at 1820-46 W. Irving Park Rd. during an often heated July 10 meeting.
... snip ...

Is this the old Lava Lamp factory ?
Last time I drove that way I hardly recognized Irving park, the planters really change the tone of the street.

How does having a HS 2 blocks away affect condo sales ?
Right next to a Metra stop ..... midway between 2 El Lines, nice spot.

[hoju]

^ Which is exactly why the city should be championing this for a higher density TOD, instead of kowtowing to NIMBY fucktards who dont want to see their street become "like Broadway" or in other words, denser and more walkable, with myriad retail options. What a travesty that would be, to have a city develop on their stretch of road.

[the urban politician]

But Alderman Eugene Schulter, 47th, who called the meeting to get neighbors' thoughts about controversial plan, said, "I would hope they (Jaeger and architect Jonathan Split) hear what went on tonight and either build according to the existing zoning or come back with another plan.

"Obviously, this project is not going to receive my support," Schulter said at the end of the two-hour session at Pilgrim Lutheran Church,

^ The real threat isn't NIMBYism per say, but the part of the article that I quoted above. The city needs to do something about reducing this Aldermanic chicken-shit priviledge thing we've got going on here

[harryc]

^ The real threat isn't NIMBYism per say, but the part of the article that I quoted above. The city needs to do something about reducing this Aldermanic chicken-shit priviledge thing we've got going on here

I lived in Chicago for 20+ years, when I had a good alderman ( Schiller ) I had a real advocate, somebody to help me deal with the machine. You may not like what the people are saying but it is good that they can be heard.

[SamInTheLoop]

I lived in Chicago for 20+ years, when I had a good alderman ( Schiller ) I had a real advocate, somebody to help me deal with the machine. You may not like what the people are saying but it is good that they can be heard.


Schiller a good alderman? now that's the laugh I needed to start my day!! :haha:

[Mr Roboto]

Revetment replacement. Probably the standard Corps of Engineers landing-strip design. Hyde Parkers keep fighting about doing Promontory Point as step-stones like the historic revetments, but the Corps is not very good at listening.

Thats not altogether true. Much of it depends on what the local sponsor, the city etc., and federal gov. are willing to pay for. The limestone is not all salvageable, and to add new ones is much more expensive than the concrete revetment. Economics is more of the determining factor, unfortunately its at the expense of aesthetics.

I do know in some areas along the shoreline, the Corps is trying to incorporate the existing limestone steps into their design somehow.

[SamInTheLoop]

^ The real threat isn't NIMBYism per say, but the part of the article that I quoted above. The city needs to do something about reducing this Aldermanic chicken-shit priviledge thing we've got going on here



Yes Yes Yes!! You nailed it - the real problem is the power that alderman hold over developments in their wards. This automatically gives NIMBYs far, far more power than they should have. There needs to be a shift in power away from aldermen and toward DPD... (I'm not saying dpd always gets it right, but they obviously get it right far more often than aldermen.......we just need a much more balanced development approval process...

[Chicago3rd]

Thats not altogether true. Much of it depends on what the local sponsor, the city etc., and federal gov. are willing to pay for. The limestone is not all salvageable, and to add new ones is much more expensive than the concrete revetment. Economics is more of the determining factor, unfortunately its at the expense of aesthetics.

I do know in some areas along the shoreline, the Corps is trying to incorporate the existing limestone steps into their design somehow.

It is totally unacceptable that they built what are basically walls that seperate the city and its parks from the lake...i.e. between Belmont Harbor and Montrose Harbor.

They shouldn't be spending exhorbant amount of money to Disneyfy the lakeshore but to fricken respect and not destroy its connections to the city would have been nice.

[harryc]

It is totally unacceptable that they built what are basically walls that seperate the city and its parks from the lake...i.e. between Belmont Harbor and Montrose Harbor.
...snip....

I think that the "wall" in this place is an example of how best to develop and plan a city. It has preserved a lakefront - with free easy access - for everyone.
North of hollywood blvd. the highrises are right on the lake, with a few small beaches squeezed in.

For those who are not blessed by living in Chicago the lakefront is one big park 20 (?) miles long all public. It is seperated from the city by LakeShoreDrive, and all the property just west LSD has been developed with high rises. They would block the view of the lake, if there was one, but Chicago is flat, profoundly flat, and with or without the "wall" there would be no view of the lake from a block or more east of LSD ( unless you were in a SkyScrper ).

[forumly_chgoman]

^ Which is exactly why the city should be championing this for a higher density TOD, instead of kowtowing to NIMBY fucktards who dont want to see their street become "like Broadway" or in other words, denser and more walkable, with myriad retail options. What a travesty that would be, to have a city develop on their stretch of road.


Exactly, its about time the tables are turned on these anti-density, anti-development types. They have to be painted as pro-global warming / anti-environmental, as well as pro-foreign energy dependence ( and by extension terrorism --- not sure which is the bigger current boggey man this or global warming). This type of development would promote more public trans use correlatively then there would be less overall car / oil use. Additionally, it would seem that issues of scale would make such developments more energy effeicient than less dense alternatives. In this era of growing "green" consciousness as well as the growing cconcerns over peak oil, terrorism etc. it would seem to be able to paint these nimby types as being on the wrong side of history.

addtionally The less dense developments encourage more sprawled out development, thereby encouraging more traffic & I believe artificially bouys property values by limiting supply.



I say we create a website -- Nimbys for the proliferation of foreign energy DEPENDENCE, Nimbys for the further material support of governments known to fund / support terrorism, Nimbys for the further de-glaciation of Greenland & Antarctica, Nimbys for the further insistence on car use so that we can sit back and watch more polar bears flail & drown on our car video scree while we sit back on our leather bucket seat while we circle looking for more parking.

[VivaLFuego]

More NIMBY entitlement at the expense of sensible urban planning:

Neighbors split over six-story development
http://www.pioneerlocal.com/booster1/news/472111,b1-Development-071807-sl.article
July 18, 2007
By PATRICK BUTLER Staff Writer

Residents voted 85 to 66 against developer Jim Jaeger's plans for a 66-unit, six-story mixed residential/commercial building at 1820-46 W. Irving Park Rd. during an often heated July 10 meeting.

Jaeger, who was seeking community support to change the site's zoning from B-2 to B-5 to allow a larger building, had no immediate comment.

But Alderman Eugene Schulter, 47th, who called the meeting to get neighbors' thoughts about controversial plan, said, "I would hope they (Jaeger and architect Jonathan Split) hear what went on tonight and either build according to the existing zoning or come back with another plan.

"Obviously, this project is not going to receive my support," Schulter said at the end of the two-hour session at Pilgrim Lutheran Church, 4300 N. Winchester Ave., that pitted neighbor against neighbor. One speaker was even booed for praising Jeager as "a developer who has gone above and beyond."

Jaeger's plan called for 7,600 square feet of commercial space with 20 business parking spots, as well as 110 residential parking spaces. The fifth story would have been topped by a six-unit penthouse and a rooftop lawn, which Split told an estimated 225 listeners, "makes this a five-story building, not six floors." And the building itself would have been a compact 224-by-120 feet, he said.

While some complained that a project that large would aggravate already serious parking and traffic congestion problems, Split and Jaeger said the project had been scaled down from the original 88-unit, seven-story building discussed at the last community meeting about two months ago.

But even that wasn't enough for people like Robert Hoellen, who said he lives within two blocks of the site and has "serious concerns" about putting up a building that large across an alley from single-family homes. Hoellen said this would set a precedent for putting in larger buildings along adjoining residential streets.

"Before you know it, it will look like Broadway," said Hoellen.

Others complained that not everyone in the neighborhood received timely notification of last week's meeting. "If that's true, you can blame our efficient Postal Service," Schulter said.

Aldermanic aide Tom Luna said later that the law requires letters be sent to everyone within 250 feet of a development where a zoning change is sought, but added that Schulter's policy is to go "from intersection to intersection," which in this case meant everyone between Byron, Damen, Ravenswoood and Belle Plaine.

On the other hand, Ozzie Arman said, "we're in Chicago and we're running out of land. I'd rather see him (Jaeger) put something like that where we can maximize the land instead of putting in two or three units and have a problem in the future."

But Tom Okon, a resident of the 1800 block of Cuyler who heads the North Center Neighbors founded several months ago partly to block Jaeger's project, couldn't have been happier.

"I'm glad it was voted down. There seemed to be a lot of people for it. At one point I thought it could have gone either way."

Disgusting all around.

[Chicago3rd]

I think that the "wall" in this place is an example of how best to develop and plan a city. It has preserved a lakefront - with free easy access - for everyone.
North of hollywood blvd. the highrises are right on the lake, with a few small beaches squeezed in.

For those who are not blessed by living in Chicago the lakefront is one big park 20 (?) miles long all public. It is seperated from the city by LakeShoreDrive, and all the property just west LSD has been developed with high rises. They would block the view of the lake, if there was one, but Chicago is flat, profoundly flat, and with or without the "wall" there would be no view of the lake from a block or more east of LSD ( unless you were in a SkyScrper ).

Don't know where you are coming from but it isn't referencing what I was commenting about. Specifically the POOR design of the new seawalls. The vast majority of the new seawalls totally DISRESPECT our fantastic lake front parks. I know that portions of the south side and to a lesser degree the Belmont Rocks area have tried to correct some of these design faux pauxs.

Plus all the propety west of LSD has NOT been developed...if it had been we would have no Lincoln Park including the zoo and Grant Park including Millineum Park. Plus building up to the lake or not has nothing to do with my comments. Nice that you are new and all.........but really try to pay attention to the discussion. Most of us on the Chicago Forum would chain ourselves to a tractor before we would let anything bad happen to our lake front parks.

[Chicago3rd]

Disgusting all around.

Amen!

[honte]

Thats not altogether true. Much of it depends on what the local sponsor, the city etc., and federal gov. are willing to pay for. The limestone is not all salvageable, and to add new ones is much more expensive than the concrete revetment. Economics is more of the determining factor, unfortunately its at the expense of aesthetics.

I do know in some areas along the shoreline, the Corps is trying to incorporate the existing limestone steps into their design somehow.

I would suggest visiting this page - http://www.savethepoint.org/ - and looking through it carefully, if one hasn't already. The evidence is pretty clear to me that the City and the Army Corps are doing unnecessary work in a lot of places.... just a broad-brush approach that doesn't do justice to the Shoreline.

[harryc]

Don't know where you are coming from but it isn't referencing what I was commenting about. Specifically the POOR design of the new seawalls. ...snip...

mia culpa - thought you were refering to the wall of skyscrapers along LSD.

Do you have photos of these new walls ? the ones I've seen weren't that bad.

Old style( near Howard ? )
http://farm2.static.flickr.com/1002/853343448_2c54cc17f5.jpg?v=0

New ( Montrose Harbor )
http://farm2.static.flickr.com/1313/852492313_10fde3f053.jpg?v=0

[Via Chicago]

I agree, the new seawall is atrocious. And we've got it for a LONG time.

[VivaLFuego]

I really don't think the new shorelines are that bad, especially since they won't crumble and erode like the old ones...I'd rather have a Promontory Point and artificial shoreline that exists permanently than one eroding into the lake. In principle, I think the Corps has the stronger argument on this, but obviously I don't know the specifics involved with the relative cost and complication of the various proposals by community groups (though 17 years in the neighborhood made me sceptical of and cynical about any position Hyde Park activists take)

[Chicago3rd]

I agree, the new seawall is atrocious. And we've got it for a LONG time.

I think the people of Chicago 40-50 years from now will be looking at the seawall just the same way we look at the subway...practical & minimal ..but what the hell were they thinking. Cinderblock furniture is practical..but don't see a rush out to buy it.

[honte]

I really don't think the new shorelines are that bad, especially since they won't crumble and erode like the old ones...I'd rather have a Promontory Point and artificial shoreline that exists permanently than one eroding into the lake. In principle, I think the Corps has the stronger argument on this, but obviously I don't know the specifics involved with the relative cost and complication of the various proposals by community groups (though 17 years in the neighborhood made me sceptical of and cynical about any position Hyde Park activists take)

I've listened to their arguments pretty closely. I've also seen studies that they commissioned with their own funds to see just how much of the seawall is really "crumbling into the lake" like the Corps says it will. The results seem pretty clear: The concern is far overblown, and a lot of the seawall didn't need to be replaced at all. The new one is also highly overdesigned.

The original Promontory Point plan was calling for the entire thing to be left untouched, based on the above findings. The city and the Corps will have nothing of that, however, so now the current compromise plan is being pursued.

[GregBear24]

This sucks. We need to get rid of LSD altogether I think, and built some crazy ass thing underground with high speed rail and car lanes. The lakeshore is incredible in a lot of spots, but it's not reaching anymore near its potential in a bunch of areas as well. This is all a currently not feasible idea in every way, but it's a shame that there is little effort to make our lakeshore more natural with more trees and native plants. The man who wants people to start heavily fishing the river needs to make our lake shore even more accesible to people and more natural & environmental. This is all diffcult to do, but we like to think big here, and it disappoints me that we miss opportunities like this despite the many we don't miss.

[DHamp]

The only thing I can think of to make LSD better is to cut out two lanes of traffic and add some light rail parallel to the west of it. It would probably be tricky to implement in some places, and a lot of people would hate the change at first but it'd get some people out of their cars eventually and be a lot cheaper than a crazy big dig LSD along the lakefront. On the whole, I think LSD is a useful road. I live in South Shore and it's the way to get downtown if you go at night after the trains stop. But it'd be nice to have another option besides the Metra (which is a block from my home).

[Busy Bee]

I don't think the new sea wall is that bad except for one thing. Since they started completing them, I've always thought that they would be greatly improved aesthetically if the Army Corp had not used straight concrete formwork. The steps need to flow like a fluid line, instead they are chopped up and clunky—like a 3D model before the final skin—like that old Dire Straits video.

I don't know how much extra time or money this would have taken, but when you're already taking about a budget that can pay for that much concrete, I don't think it would have been prohibitive. Even it it was mechanically impossible for perfect fluidity, they could have built and pored the concrete in shorter sections—each pivoting slightly—this way it would have tricked our eye and would have succeeded visually in producing roundness.

[honte]

The man who wants people to start heavily fishing the river needs to make our lake shore even more accesible to people and more natural & environmental. This is all diffcult to do, but we like to think big here, and it disappoints me that we miss opportunities like this despite the many we don't miss.


I personally love LSD, and I like the formal, city-like aspects of the lakefront. But, I think there is room for both, and I want to note that there are some moves being made to address a more natural lakefront. If you haven't been there yet, go check out the natural sand dunes at the South Shore Cultural Center. They are on the south end of the property, and are a little-known gem.

[modkris]

mia culpa - thought you were refering to the wall of skyscrapers along LSD.

Do you have photos of these new walls ? the ones I've seen weren't that bad.

Old style( near Howard ? )
http://farm2.static.flickr.com/1002/853343448_2c54cc17f5.jpg?v=0

New ( Montrose Harbor )
http://farm2.static.flickr.com/1313/852492313_10fde3f053.jpg?v=0

The kid is cute in both pics but the concrete in the 2nd. pic is just so bland and depressing. Big mistake at the lake!

[VivaLFuego]

I personally love LSD, and I like the formal, city-like aspects of the lakefront. But, I think there is room for both, and I want to note that there are some moves being made to address a more natural lakefront. If you haven't been there yet, go check out the natural sand dunes at the South Shore Cultural Center. They are on the south end of the property, and are a little-known gem.

Yes, I think LSD is great and actually still functions like a pleasure parkway (aside from rush hours of course), a simply gorgeous and pleasant drive, one of the few reasons I briefly considered keeping my car, actually. I say keep it in good shape (e.g. rebuild from Irving Park to Bryn Mawr!), restore the art deco bridges where necessary, and otherwise focus on simply improving pedestrian crossings via bridges and tunnels, every 1/2 mile minimum if possible.

[wrab]

Yes, I think LSD is great and actually still functions like a pleasure parkway (aside from rush hours of course), a simply gorgeous and pleasant drive, one of the few reasons I briefly considered keeping my car, actually. I say keep it in good shape (e.g. rebuild from Irving Park to Bryn Mawr!), restore the art deco bridges where necessary, and otherwise focus on simply improving pedestrian crossings via bridges and tunnels, every 1/2 mile minimum if possible.

^^^ Agreed on LSD - like being on a parkway. However, the Streeterville stretch up through Gold Coast is such a waste of prime lakefront - how's about a suspension span from Oak St. to the North Ave Beach exit?

And Now For Something Completely Different - some morning shots of Valerio Train Dewalt's British School bldg on Halstead:

http://i4.photobucket.com/albums/y150/wjcordier/L1010161.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010166.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010167.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010153.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010142.jpg

BTW, the BP station at North/Clybourn looks to be closed for good - hello Apple Store?

[wrab]

.....If you haven't been there yet, go check out the natural sand dunes at the South Shore Cultural Center. They are on the south end of the property, and are a little-known gem.

I've been looking for these, trying to figure out exactly where they were. There is a boardwalk too, no? Thanks for the tip!

[honte]

^ Thanks for the photos. I am hoping I like it a bit more when the street-life-giving side is constructed. Right now, it's a bit much from Halsted. I like the design, but the detailing is a bit plain I think.

To find the sand dunes, act as though you are going to the beach at the Cultural Center. Keep walking south, past the little beach house, and you will see a small entrance to a natural area. That's the start of the boardwalk.

[SolarWind]

July 14, 2007

http://img528.imageshack.us/img528/155/artinstitute2xb9.jpg

http://img528.imageshack.us/img528/7251/artinstitutenl3.jpg

http://img254.imageshack.us/img254/433/dsc0279copyiy6.jpg

[SolarWind]

July 19, 2007

http://img254.imageshack.us/img254/3572/dsc0308copyzp1.jpg

July 20, 2007

http://img254.imageshack.us/img254/8986/dsc0014copydx5.jpg

http://img297.imageshack.us/img297/554/dsc0028copypo5.jpg

[SamInTheLoop]

[QUOTE=wrabbit;2965772]^^^ Agreed on LSD - like being on a parkway. However, the Streeterville stretch up through Gold Coast is such a waste of prime lakefront - how's about a suspension span from Oak St. to the North Ave Beach exit?

And Now For Something Completely Different - some morning shots of Valerio Train Dewalt's British School bldg on Halstead:

http://i4.photobucket.com/albums/y150/wjcordier/L1010161.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010166.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010167.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010153.jpg

http://i4.photobucket.com/albums/y150/wjcordier/L1010142.jpg

BTW, the BP station at North/Clybourn looks to be closed for good - hello Apple Store?[/QUOT


Thanks for posting these wrabbit. Looking good to me - I look forward to seeing the British School joined by the VDT-designed retail project next door...

[Marcu]

** Deleted for copyright infringement **

- Dylan Leblanc

[brian_b]

LOL, nothing surprises me about Macy's anymore.

I saw in the news recently that there are rumors of a PE buyout @ Macy's. I'm not sure what value anyone sees in that company, but if the Chinese are providing cheap money, I guess anything goes.

[lalucedm]

I love how it had "no prior violations" and things had gotten so bad as of recent. Wonder, ahem, why that might be?? You'd think SOMEBODY in power would be taking a clue from stuff like this and the 30%+ sales drop they've had.

[Alliance]

No offense to Mr. Fields (rest his soul), but Marshall Fields HAD seen a drop in quality in recent years prior to the buyout. I'm not supporting Macy's by any means (in fact I rather detest Macy's), but the iconic history of Marshall Fields was but a shell. The store was in trouble. The fall began with Fields...not Macy's.

[Chicago3rd]

No offense to Mr. Fields (rest his soul), but Marshall Fields HAD seen a drop in quality in recent years prior to the buyout. I'm not supporting Macy's by any means (in fact I rather detest Macy's), but the iconic history of Marshall Fields was but a shell. The store was in trouble. The fall began with Fields...not Macy's.

As shown over and over again MF downtown had been on an upswing for the last few years before Macy's. There was talk about how it was going to be the way of the future for department stores in its field.

Then "OHIO" trash bought it out and ruined it. It is filthy inside now. They haven't done any work on the outside like they promised they would this year and they now have filthy food.

I can only hope it can be bought out and at least that one store restored to it upward momentum.

[bnk]

Massive article and other goodies.

http://www.concierge.com/cntraveler/articles/detail?articleId=11120&pageNumber=1 ) link edited thanks wrabbit

TOMORROW, U.S.A.

by BLAIR KAMIN
Published August 2007

1 | 2 | 3 | 4 | 5 | Next >

The only sin in Chicago is thinking small. Already crowded with great structures, the city has yet again become a magnet for big-name architects, igniting a new wave of bold building. Blair Kamin explains why this "second city" is second to none...

[wrab]

^^^ Quite a love letter from Kamin!

[Marcu]

Macy's in Lake Forest to close: paper
(Crain’s) — Because of rising rent and fewer shoppers, Macy’s Inc. will close its downtown Lake Forest location at the end of January, according to the Chicago Tribune.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=25782&seenIt=1

[forumly_chgoman]

And the ball of mismanagement continues for Macy's.....say what you will that MF was messed up before they were bought, that is true, but Macys has done NOTHING but exacerbate the problem. A shame

[the urban politician]

Massive article and other goodies.

http://www.concierge.com/cntraveler/articles/detail?articleId=11120&pageNumber=1 ) link edited thanks wrabbit

TOMORROW, U.S.A.

by BLAIR KAMIN
Published August 2007

1 | 2 | 3 | 4 | 5 | Next >

The only sin in Chicago is thinking small. Already crowded with great structures, the city has yet again become a magnet for big-name architects, igniting a new wave of bold building. Blair Kamin explains why this "second city" is second to none...

^ Quite a good read

[SamInTheLoop]

Don't know if anyone else has noticed, but as I was checking out Aqua progress this afternoon, I noticed that they were finally moving dirt at the site of the Treasure Island-anchored Village Market Center, so it looks to officially be in site prep....

[chicagoguy1]

I think the British School Building is Horrible.

[Marcu]

I think the British School Building is Horrible.

I personally don't really get why there is so much excitiment about it on this forum either but I wouldn't go so far as calling it horrible. It's a little too tacky and will certainly look dated in 10 years or so but it does add some much needed street frontage and density to the area.

[Ch.G, Ch.G]

I personally don't really get why there is so much excitiment about it on this forum either but I wouldn't go so far as calling it horrible. It's a little too tacky and will certainly look dated in 10 years or so but it does add some much needed street frontage and density to the area.

I have a hard time seeing "tacky" in the design - it's absolutely seamless - though I know that corrugated look isn't going to be loved by everyone. Count me out of that group; I think it's great (...and very evocative of the State Street Villages!).

[SamInTheLoop]

I have a hard time seeing "tacky" in the design - it's absolutely seamless - though I know that corrugated look isn't going to be loved by everyone. Count me out of that group; I think it's great (...and very evocative of the State Street Villages!).


Yes, yes - I love it!! Corrugated in many instances just plain works....
However, I do agree with what I believe Honte may have said about a lack of detail, but that's not enough to make me stop liking this one a lot. More VDT, please.

[the urban politician]

Stroger tells plan for old hospital
$140 million rehab proposal announced

By Mickey Ciokajlo | Tribune staff reporter
July 27, 2007
The historic Cook County Hospital building would be preserved and renovated as office space under a $140 million plan proposed by County Board President Todd Stroger.
http://www.chicagotribune.com/news/local/chi-hospitaljul27,1,3694287.story

[VivaLFuego]

Stroger tells plan for old hospital
$140 million rehab proposal announced

By Mickey Ciokajlo | Tribune staff reporter
July 27, 2007
The historic Cook County Hospital building would be preserved and renovated as office space under a $140 million plan proposed by County Board President Todd Stroger.
http://www.chicagotribune.com/news/local/chi-hospitaljul27,1,3694287.story

Definitely sad to lose the Nurses Dormitory building, it's pretty large and impressive itself...would make a great sudent housing building or hotel :(

[honte]

^ 100% agreed. The demolition contractor buddies needed to get their cash somehow, alas... everything in this city is a damn compromise.

However, in this case, we got the better end of the deal, although it is not a cloud-free day.

[Edit] PS - don't forget that the four wings of CCH, the beautiful power house, and the children's wing will also be torn down.

[harryc]

Stroger tells plan for old hospital
$140 million rehab proposal announced

By Mickey Ciokajlo | Tribune staff reporter
July 27, 2007
The historic Cook County Hospital building would be preserved and renovated as office space under a $140 million plan proposed by County Board President Todd Stroger.
http://www.chicagotribune.com/news/local/chi-hospitaljul27,1,3694287.story

Thank god - I have so many horrible memories of that place - it would be bad to forget how good it is anywhere else.

[Eventually...Chicago]

i know there is a looptopia thread but i don't think anyone reads it anymore... But at a recent ICSC event i attended "the state of state" they had a guy from the Chicago Loop Alliance and he mentioned a few things about the loop area:

- Looptopia will definitely be back, the date will likely be may 1st. They estimated about 250000 people attended. 2.5 times more than they expected. More retailers, restaurants and an expanded bill of events will be provided. (i talked to the guy afterwards and was sure i mentioned my idea for closing state or michigan for the night!)

- More alleyways like the theater alley are being planned.

- The wabash reconstruction will be finished by mid-summer next year to harrison. The next phase will take it all the way down to roosevelt.

- the CPL will be putting in a high end coffee shop (intelligentsia, hopefully!) at the corner of congress & state. (i think it is that corner)

- There were several other parks planned for the loop area, i cant remember where they are.

- There is something planned for the empty lot on state by john marshall law school.

(sorry for these last two, i can only remember so much)

- the loop kicks ass (personal commentary)

see ya