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Chicago Spire Architect Files Lien Against Developer
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October 18, 2008 - It seems as though the current economic turmoil and housing market slump aren’t the only difficulties that Shelbourne Development’s Chicago Spire is facing. Project spokespersons had already acknowledged that work would be suspended until the market improved, although utility work would continue, and the sale of the penthouse suite last month seemed to be a boost. But now architect Santiago Calatrava and architectural company Perkins and Will have filed liens against the developer for unpaid fees, according to Crain’s.
Calatrava says he is no longer working on the Spire project and the amount he claims he is owed by Shelbourne is $11.34 million. Perkins and Will claim another $4.85 million. A spokesperson for Shelbourne was quoted in the article as saying they will dispute the liens on the grounds that the $11.34 million isn’t a correct figure for the work Calatrava did.
Crain’s reports that another $15 million was borrowed by Shelbourne Development last month from the Anglo Irish Bank, but that money wasn’t earmarked for architect’s fees. A total of $69.5 million has been borrowed so far from that bank. Costs for the entire 150 floor skyscraper are estimated to be in the $2 billion range. The article goes on to say that 395 of the 1,194 Chicago condos in the Spire are under contract, which is more than many doubters believed would sell.
This isn’t the first time liens have been placed against a Chicago real estate development and it isn’t necessarily a sign that the project is sinking. Many Condo Developers in Chicago are facing tough obstacles right now, including slow sales and hard to get construction financing. Only time will tell if the Spire gets off the ground.
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