February 26, 2010 - The latest Chicago Spire news is unfortunately about another lawsuit filed against Shelbourne Development. According to a recent article in Crain’s, Bank of America has filed a suit against the Spire developer for $110,076 they claim is owed on credit cards. B of A states that the Visa credit cards were issued back in ‘06 and ‘07 and that they cancelled them in August ‘09 because payments weren’t being made and requested that the account balances be paid back in full by the end of September ‘09.

The article states that B of A was a lender to the Spire project and that they had notified Shelbourne Development sometime prior to June of last year that the cards were being cancelled. According to the lawsuit filed by B of A and reported in the article, Shelbourne intended to use the credit cards to pay for an estimated yearly travel and entertainment expense of $750,000 and other additional purchases totaling $1.2 million.

This credit card lawsuit is in addition to another lawsuit filed by Bank of America last August over a $4.9 million debt owed by Shelbourne. The money from those two loans was used to cover early expenses for the Spire project.

With so many leins and lawsuits against the Spire, it’s looking less and less like we’ll see this mega Chicago condo project get off the ground. While we have had some good news this week about some projects securing financing, it will still probably be some time before large scale Chicago real estate developments like the Spire can find willing lenders and buyers.

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This entry was posted on Friday, February 26th, 2010 at 7:20 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.