The 4 year long dispute for the lot North of McCormick place
has been given a deadline of January 10 by bankruptcy Judge
Jack Schmetterer. The
judge asked that by the 10th, the current owners, Pam Gleichman and
Karl Norberg, have a binding agreement securing $150 million for part of the
The couple’s plan was to split the parcel and sell it to 2
entities that would build 2 hotels, but their lender has other plans. Center Point Properties Trust, the lender,
wants to foreclose on the property and is claiming that the couple’s sale
contract is filled with loopholes and allows too many opportunities for the
couple to back out.
While Center Point claims it is owed $80 million, they also
told the judge on Thursday that since they filed foreclosure in 2009, the
couple has delayed the process twice with Chapter 11 protection, both in 2010
and this past September, and this was just another ploy for more time.
The lot was rumored to be the location for a new stadium for
DePaul University’s basketball team, but Ms. Gleichman denies to having any
conversations about an arena. She also
claims that Ground Lease Capital Partners LLC, from New York, and Global
Builders Inc, from Plainfield, have committed to closing with the couple. They also shared that RM Mister Enterprises
LLC agreed to provide a $16.8 million letter of credit securing the sale to ground
The judge however had heard enough and said he needed solid
commitments and proof of a letter of credit by January 10. Time will tell….