March 6, 2004 (11:00p CT): Chicago, Illinois, U.S.A.
By Thomas R. Bennett, Publisher of NuclearChicago.com
“Golf is a passport for a dirty weekend with the lads. Wake-up girls….a naive wife.”
Mystery wife warns of dangers of golf trips: http://www.irishtimes.com/newspaper/ireland/2011/1109/1224307251376.html
While 2004 was a memorable year – nothing prepared me more for “How Business Gets Done in Chicago” quite like The Chicago Athletic Association.
The CAA Young Members Club we started at the Chicago Athletic Association during 2003 was one of the best ideas (and concepts) of all time – probably, in the history of the stodgy and charming private club that was reportedly being land-backed for a mega-million dollar real estate re-development deal involving a Joint Venture that included an Atlanta-based developer and a 4-Star Omni-hotel.
The reported 4-Star Omni-hotel deal was a Bunch of Malarkey.
http://www.schroderpr.com/new/newsrooms/songy/backgrounders/chicago_athletic_association.html
Nuclear Chicago is referring exclusively to the mega-million dollar real estate assemblage deal involving The Legacy Chicago (http://www.thelegacyatmillenniumpark.com/amenities.asp?webContentID=13), The University Club (http://www.ucco.com), Mesa Development (http://www.mesadevelopmentllc.com) including former Senior Development Manager at Mesa Development – Richard DeLeo, now employed via The Parking Spot – a development enterprise owned and operated via Penny Pritzker and Marty Nesbitt — and a complicit Chicago Athletic Association Board of Directors as The University Club has been circling the Chicago Athletic Association for several years as the respective private clubs had two (2) totally-incompatible cultures – somewhat similar to The Clampetts of The Beverly Hillbillies (http://www.youtube.com/watch?v=NwzaxUF0k18) – meaning the Chicago Athletic Association was South Michigan Avenue’s version of The Clampett’s – and proud of it.
Simply put, members of the Chicago Athletic Association were generally-hunters, while The University Club of Chicago is more of a pseudo, high-brow private club.
The hubris – at times – of our old-school, Boss Hog real estate development community is incredulous as same Boss Hog mentality appears incredibly pervasive amongst old-school, Boss Hog land-bankers.
The hubris of our old-school, Boss Hog real estate development community?
Check-out the marketing material related to The Legacy Chicago ‘pimping-out’ its unique and incredibly-rare SkyBridge-access to The University Club:
http://www.thelegacyatmillenniumpark.com/amenities.asp?webContentID=13
“The University Club of Chicago, connected to The Legacy via a convenient bridge, is one of the world’s finest private city clubs. Residents of The Legacy can schedule squash matches and lessons with the Club’s pros, and have the Club’s renowned food and beverage staff cater parties in one of the Legacy’s hospitality suites. Residents can even arrange for guests to stay in one of the Club’s 60 finely appointed overnight guest rooms. Residents can also apply for membership in the Club and take advantage of full benefits.”
Its a shame as the CAA truly demonstrates what is missing in today’s business environment – a casual, private and intimate downtown environment (absent clowns like Attorney Bob Fioretti – the Italian-version of Ed Vrdolyak – disrupting the camaraderie and presence at same private club).
But for the dogged-determination of The CAA Young Members Club – The Legacy Bizarre Love Triangle Concept would have never been exposed (as the racketeering fraud it is). In fact, in observance of many a shanty and lace curtain Irishmen both in Chicago and abroad – I am still beyond shocked that a consortium of The University Club, The Legacy Chicago/Team Obama and Shefsky Froelich (& Devine) think they’re going to ‘pull-the-wool’ over The Republic of Ireland.
Whom at Shefsky Froelich (& Devine) egregiously-advised both Anglo-Irish Bank (and The Republic of Ireland) to lend $25,000,000+ to developers whom NEVER received “entitlement or zoning approval” from either One South Dearborn (i.e., Texas-based Hines, Chicago-based Levy Organization or One South Dearborn Anchor Tenant – Sidley & Austin) or City Hall.
Simply put, there is no way a self-respecting developer such as Texas-based Hines or Chicago-based Levy Organization would ever be ‘bullied’ or ‘permit’ the Chicago Athletic Association to ‘go-vertical’ with new CAA construction that would, in turn, substantially-impair the sight-lines of One South Dearborn’s office tenants as same One South Dearborn footprint is appx. one (1) city block immediately due west of the proposed CAA/Omni Hotel tower.
Furthermore, Shefsky, Froelich (& Devine) had to realize that same proposed CAA/Omni Hotel tower would also significantly infringe-upon the sight-lines of the neighboring Legacy Chicago Tower. Presumably, a sharp-zoning attorney formerly of DLA Piper and former CAA Board of Director – Patrick Daley Thompson – would have realized the same inherent obstacles?
After-all, the Legacy Tower Chicago pre-construction sales/marketing office was located directly-above The Gage Restaurant and Planned Parenthood – among other tenants.
Did One South Dearborn ownership (and tenants) as well as their representatives voice objections against the proposed CAA/Omni Tower?
Did Legacy Tower Chicago Development team voice their objections against the proposed CAA/Omni Tower?
Did the Chicago Athletic Association Board of Directors – given their collective and respective fiduciary responsibilities to various creditors and principals – voice objections to an Anglo-Irish Bank-funded liquidity event due to same obvious entitlement and zoning obstacles?
Did anyone at City Hall imply to either Shefsky & Froelich (and Devine) or the Chicago Athletic Association Board of Directors, members or creditors that an entitlement or zoning approval would be granted irrespective of vocal anti-development objections via One South Dearborn, Legacy Tower Chicago or various other neighbors including, but not limited to The Palmer House Hilton?
Are any Millennium Park principals involved in The Legacy Bizarre Love Triangle? It appears that The Legacy Tower and The University Club have always remained one (1) additional Skybridge short-of-an-assemblage and sure-thing on the backs of both The Republic of Ireland as well as various creditors of the Chicago Athletic Association – including some creditors which were never properly notified.
February 8, 2012: Legacy’s luck: Luxury tower refinances with $60 million loan
How is the capital stack of the $30,000,000 equity recapitalization structured?
Specifically, who will follow-the-money of the $30,000,000 equity recap and the horsetrading involved with the debt refinancing via B-of-A and PrivateBank?
http://www.youtube.com/watch?v=gJttvSLCLmM&feature=related
To further demonstrate the CAA Board of Directors/Legacy Bizarre Love Triangle shenanigans as well as select CAA Members: Please check-out the following note (and comment) from Ross Gambrill – Principal of 900 North DeWitt Place Development LLC – to Crain’s Real Estate reporter – Alby Gallun.
“Dear Mr. Gallun:
I’m saddened by your article in Chicago Real Estate Daily about the Chicago Athletic Assn. foreclosure. I was the ONLY developer in the bidding group who was trying to salvage the Club, not sell it off. My proposal was summarily dismissed by the powers in control of the Club’s liquidation.
The proposal I had developed over a period of a couple years and presented to the Club would have saved the club and created a much smaller and manageable hotel operation in the Madison St. building. It would have been a joint venture, with the Club retaining rights of supplying hotel services. It was discounted as being not feasible, which actually meant that those in control were more interested in liquidation. The Board had the membership convinced that the only survival was through sale. Go figure. It was an impossibility for the Club to survive with any type of substantial ownership transfer. The new owners would have no interest in the Club’s survival, only their own. Looks like that went by the wayside now too. Everybody loses and nobody wins.
The plan that I had presented was well thought out, based on income that would be easily attainable and not costing anywhere near the numbers that it would take for the plan that was accepted. But, then again, those controlling the fate of the Club didn’t care about its survival, just getting some money up front. With my proposal, the Club would have remained in as an equal partner, not merely as the prior owner of the property. This proposal would have worked and the Club would be alive and well today. So much for hindsight.
Well….a couple years later, the Club is gone and I imagine the millions of dollars of artifacts in the Michigan building too. During one of my looks through the building when I first became involved, I found a framed certificate of appreciation to the Club’s first sports med doctor, signed by Wm. Wrigley and dated 1897. It was in a cardboard box in the old member domatory area. I took it down to the manager. Who knows where it is now, probably in a dumpster.
So much for valiant ideas and attempts to try to salvage a storied vestige of Chicago’s past.
Sorry to ramble on. Your article just brought back a lot of old feelings and frustrations. I just wanted to add my part to the eulogy.”
Ross Gambril
900 North DeWitt Place Development LLC
900 N. DeWitt Place
Chicago, IL 60611
Further analysis coming soon….
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