Prairie Blocks submits new bankruptcy plan
10/31/2012 5:19 PM
Prairie Blocks, the long-stalled mega-development near McCormick place that would drop more than a thousand new hotel rooms and a huge batch of entertainment options near the convention center, is back at it again.
The property’s owners, husband and wife team Pam Gleichman and Karl Norberg, have come back from the drawing board and submitted a new bankruptcy plan that proposes selling off chunks of the land between Cermak Road, 21st Street, Calumet and Prairie Avenues and then leasing it back.
They propose selling the biggest chunk off to a developer who would then sculpt it as either a Hilton or a Marriott hotel, more likely a Marriott. They’d reap $150,000 for that sale in the end, if the project was completed.
Another piece of property would be allegedly sold off for $15 million to JMB Financial Advisors, who would then develop it as a data center, the bankruptcy filing claimed.
But in a separate filing, JMB said it no longer had an agreement in place for the data center. On top of that, since the data center plan was exaggerated, the rest of the plan was dubious, JMB said.
Prairie Blocks’ main creditor, CenterPoint Properties, opposed the new plan, as it has consistently, and urged the judge to end the suit so CenterPoint could foreclose on the property.
Bankruptcy Judge Jack Schmetterer has scheduled a hearing on the motion for Monday, Nov. 5.