Chicago Spire Fires Back

The stalled 2000-foot Chicago Spire that, at the moment is just a gaping hole in the ground, is counter-suing its lender Bank of America.  Alleging that the bank took proceeds of a certificate of deposit owned by Shelbourne Development for more than $3.5 million and applied it to the amount due, an amount that was overstated because Bank of America “intentionally and deceptively” calculated the interest rate based on a 360-day year.  Chicago real estate may need its own economic stimulus plan in order to see this project become a reality.

Bank of America sued Shelbourne Development for defaulting on a loan and said it was due $4.9 million.  Bank of America said Kelleher personally guaranteed the loan.  As this saga continues, the likely hood of seeing this spectacular addition to the Chicago skyline anytime soon is ever more dependent on a quick and strong economic recovery.

Many contractors have filed liens on the project including Santiago Calatrava, the celebrated Spanish architect who is due $11 million dollars for his twisting, smoking-campfire inspired design. Originally announced in May 2005 by Christopher T. Carley of the Fordham Company, the project was supported by many Chicagoans and city officials.

After several months of development, Carley failed to acquire necessary financing and the project was taken over by Garrett Kelleher of the Shelbourne Development Group. Since that time, three major revisions were made to the design. Construction of the Chicago Spire has stopped and will not resume until the markets improve from the subprime mortgage crisis. On October 8, 2008, Santiago Calatrava filed a lien on the project stating that the developer has yet to pay him the $11.34 million owed for his work,[14][15] casting some doubt over the future of the project.