By Ed Lowe
Senior Writer
Rumors have been circulating about the possible change in plans relating to the Columbus Hospital property on Lakeview Avenue. American Invsco, the developer of the project, has, according to those rumors, run into financial difficulties and is unable to proceed with its plans to demolish the shuttered hospital and build multiple unit high rise condominiums on the site.
A notice posted on the property a couple of months ago confirms Invsco’s $55,000 delinquency on a gas bill. Numerous lawsuits against Invsco have been filed for consulting and legal fees. One of the plaintiffs in these suits is Piper, Rudnick, the law firm that formerly represented Invsco on the development. According to Piper attorney Ted Novak, "Invsco has run into difficulties and is looking for a [money] partner to help implement the deal. They are trying to get assistance in areas that they don’t have experience in, specifically high rise construction and development."
"I think they’ll still be involved in the building regardless of what happens," Novak told Inside. "In spite of lawsuits [including Piper, Rudnick] for fees, they have said that ‘they will work it out.’" Novak felt confident that they would ultimately end up with some part of the deal. He assured us that the bank loans with LaSalle Bank and west suburban CIB bank have been extended, allowing Invsco more time to resolve its problems.
Published reports have indicated that additional lawsuits have been filed or are being seriously contemplated by the architect engaged by Invsco, Lucien LaGrange, in the amount of $250,000, and by the project manager, Kvork Derderian, who is claiming allegedly unpaid fees in the amount of $380,000. The Piper, Rudnick suit is claiming unpaid fees of $150,000. While all this litigation is yet to be decided in the courts, it certainly represents the dilemma faced by the developer.
Gene Fisher, executive director of the Diversey Harbor Lakeview Association (DHLA), told Inside, "The flood of documented reports that have been appearing in the public domain have caused many to question whether the original developer of the Columbus Hospital property has the financial resources to proceed with the project, and whether the project can go forward until there is a significant restructuring of its finances and its management.
"When things sort themselves out, our community will be prepared to open a dialog with whatever entity has control of the project. Until then, we will, of necessity, have to wait and see what develops when the smoke has cleared. We will continue to proceed in ways that best serve the interests of the community."
Fisher further stated that one of the reasons for the problems experienced by Invsco is the fact that their original plans called for the overbuilding of the property. After numerous meetings and finally a compromise worked out through Ald. Vi Daley’s (43rd) office, a smaller, more acceptable mix of apartment sizes was agreed upon by both sides of the dispute. However, based on the reported $35 million price paid by Invsco for the property in the first place, the reduced mix of units is less economically viable. Consequently, they have been unable to continue with the demolition of the old building and the new construction project.
Neighbors are hoping that the issue will be resolved in the near future and that the property can be returned to the tax rolls. While it is not currently an eyesore or danger to the community, the lack of maintenance could lead to more serious problems for neighbors and for the entire area.
|
