The development team behind a long-stalled plan to build hotels and restaurants just north of McCormick Place suffered a serious setback in federal bankruptcy court on Wednesday afternoon.
Judge Jack Schmetterer granted a motion by lender CenterPoint Properties Trust to reject the latest development plan of property owner Olde Prairie Block Owner LLC, which is led by developers Pamela Gleichman, Karl Norberg and Gunnar Falk.
Schmetterer said Olde Prairie failed to show its plans were financially plausible, noting its pledges from investors were highly conditional.
"It's a maybe situation," he said. He gave them 10 days to produce a more solid plan.
"I urge them to take their best shot, because it is the last one they will get," he said. The next hearing is Dec. 17.
Gleichman said she is confident she can get more iron-clad commitments from her team's investment partners within that time frame.
If Schmetterer dismisses the bankruptcy case at the next hearing, it would open the door for a foreclosure auction of the property. This would make it possible for the Metropolitan Pier and Exposition Authority, the state-city agency that owns McCormick Place, or other parties, to bid for the properties located on the north side of Cermak Road, across the street from the authority's administrative offices and the West Building of McCormick Place.
McCormick Place officials are aiming to vastly expand the amenities surrounding the convention complex to include more hotels, restaurants, entertainment venues and an arena that could host large-scale corporate assemblies and potentially collegiate sports such as DePaul Blue Demons basketball.
DePaul University, which would like to bring its men's basketball back to the city from its current home at the Allstate Arena in Rosemont, is weighing a number of sites. McCormick Place and United Center officials have acknowledged talks with the university.
Opposition to an arena on the Olde Prairie blocks surfaced this week, with the Prairie District Neighborhood Alliance writing a letter stating an arena would be out of character in the historic residential area and would create traffic problems. Ald. Robert Fioretti, whose 2nd ward includes McCormick Place, has expressed opposition to an arena on that site as well.
kbergen@tribune.com | Twitter @kathy_bergen
Clock running out for owners of prime parcels near McCormick Place
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Clock running out for owners of prime parcels near McCormick Place
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Clock running out for owners of prime parcels near McCormick Place
