Garrett Kelleher's battle to get the Spire out of bankruptcy and back on track may take longer than initially expected. The Irish developer of the 2,000 foot supertall skyscraper, along with new partner Atlas Apartment Holdings were hit yesterday with a formal objection by the project's current debt holder RMW Acquisition Co, an affiliate of megadeveloper Related Midwest. According to the Trib, lawyers from Related say that Atlas' initial loan of $250,000 may be enough to pay off claims in court, but it is nowhere near enough to get the Santiago Calatrava designed Spire back on a construction track, as the money would run out in a matter of weeks. In addition, Related says that the loan carries pawn shop style interest rates, with rates as high as 15-20% tacked on. The motion also states that if Kelleher defaults on this new loan, or does not meet Atlas' deadlines, the new partner could exercise its option to say bon voyage to the deal and leave Kelleher back in the deep hole the Spire has been in for several years. The battle over control of the Spire and the site begins with the battle over its debt, and Related is poised to put up a fight.
· Chicago Spire financing draws objection [Tribune]
· Chicago's Ambitious Supertall Spire May Actually Rise After All [Curbed Chicago]
· Previous Chicago Spire coverage [Curbed Chicago]