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Chicago Spire Developer Sues for $1.2B
The developer of the ill-fated Chicago Spire project is suing an Irish agency for $1.2 billion, claiming mismanagement and malice resulting in the death of the project, according to a report in Crain’s Chicago.
Garrett Kelleher, developer of what was supposed to be a 2,000-foot-tall, 150-story residential building on Lake Shore Drive and the Chicago River, lost the project in 2014. Ireland’s National Asset Management Agency sold the $92.5 million in debt that it held to Related Midwest, which seized the site.
Kelleher’s company, Shelbourne Development, said that it had found a British investment firm to pay the entire debt. Related paid only $35 million, Shelbourne claims. That, the lawsuit said, “cheated” Irish taxpayers out of the $57.5 million difference. The suit claims the deal was made out of “sheer spite” toward Kelleher.
The site, which was to have been the largest building in the Western Hemisphere, now is a large hole in the ground.
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