November 30, 2009 – Chicago Spire developer Garrett Kelleher is set to meet with the AFL-CIO today to discuss what it will take to get the Chicago real estate project out of the hole so to speak and off the ground. According to an article in the Tribune, these are “advanced” talks and will involve possibly funding a loan to pay off the $170 million Shelbourne Development owes to the Anglo Irish Bank and cover the liens placed against the project.

Back in the spring of this year news surfaced that the AFL-CIO pension trusts were interested in helping to get the Spire jump started again, which would create plenty of work for contractors and other construction affiliates of the organization. But then the prospect of Chicago hosting the Olympics stirred interest in the possible construction of the Olympic Village. But evidentially since Chicago wasn’t named host city, the AFL-CIO is once again focused on the Spire.

With the 2016 Games out of the picture, president Tom Villanova of the Chicago & Cook County Building & Construction Trades Council was quoted in the article as saying that, “We’re way past the look-see stage. We’re in the commitment stage now.”

A Shelbourne Development spokeswoman was also quoted as saying that, “This is a huge stride in moving the broader picture forward. It’s a negotiating chip for a much larger conversation.” This meaning that Mr. Kelleher would be in a much better position to secure more construction financing because of the backing of the unions.

If a deal is reached, work on the Spire would be done only by union workers. That could create as much as 7.5 million hours of labor, which would be a very welcome change from the 30% unemployment that many union workers are currently experiencing because of the slow housing market.

It has been incredibly difficult for developers to get financing for new projects. When these Pre Construction Condos in Chicago broke ground, credit wasn’t nearly as tight and buyers were scooping up Chicago condos at a much faster pace.

[tags]Chicago Spire, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Monday, November 30th, 2009 at 4:39 pm and is filed under Mortgage Information.