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Old Posted Oct 20, 2021, 2:21 PM
TR Devlin TR Devlin is offline
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Join Date: Sep 2018
Location: Chicago
Posts: 73
Quote:
Originally Posted by CaptainJilliams View Post
Developer Reveals Updated First Phase Plans For One Central Project

http://chicagoyimby.com/2021/10/deve...l-project.html
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IMO, this article is extremely misleading.

As I understand the financing, it involves three parties: Landmark Development, a third party lender, and the city of Chicago.

Landmark borrows $3.8 billion form the lender and uses the money to pay for a "multi-story transit hub which will connect CTA, Metra, and Amtrak trains together and blah, blah blah", and "a new 400,000-square-foot Experiential District meant to serve as an extension of McCormick Place, and feature a digital media center and more blah, blah, blah". This is the "Civic Build" phase of the project.

Then, at some point in the future, "Both of these parts would eventually be taken over by the city as part of the financial deal formed between the two." The details of this "financial deal" are not disclosed but I assume this is when the city is obligated to pay Landmark $6.5 billion. Landmark, in turn, uses the $6.5 billion to repay the $3.8 billion loan plus $2.7 billion of interest.

So at the end of the day, the City has paid the entire cost of the Civic Build phase and Landmark hasn't put up a penny of its own money, even tho Landmark is the primary beneficiary.

I don't know all the details of this but I think it's fair to say that Landmark is raping the City. And YIMBY likes it because it's got some cool renderings.
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