Judge rejects plan for massive development near McCormick Place, Motor Row

Future in question; property owners must file new plan by January 19

12/28/2011 2:49 PM

By Ben Meyerson
Editor

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A rendering of the Prairie Blocks development

A federal bankruptcy court judge has smacked down a bankruptcy plan for a massive proposed development known as Prairie Blocks near McCormick Place and Motor Row.

The site sits just north of Cermak Road between Calumet and Michigan avenues. Prairie Blocks has been pitching a massive development that would provide much-needed new hotel rooms for the area, as well as entertainment and retail space.

The development could help bridge the connection between the convention center and Motor Row proper on Michigan Avenue, where Prairie Blocks’ current owners Pam Gleichman and Karl Norberg also have property.

But the project is currently in bankruptcy, and former lender Centerpoint Properties Trust says they’re owed $67 million. The bankruptcy court case’s judge, Jack B. Schmetterer, said in a written opinion on Dec. 22 that Gleichman and Norberg’s bankruptcy plan treats Centerpoint unfairly.

Schmetterer set a Jan. 19 deadline for Gleichman and Norberg to submit a new plan.

This story was first reported by Crain’s Chicago Business.


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