City enters Block 37 case

City enters Block 37 case
By Sandra M. Jones
Copyright © 2009, Chicago Tribune
October 31, 2009
http://www.chicagotribune.com/business/chi-sat-sub-brf2-block37-1031oct31,0,7482699.story


The city moved to intervene in Bank of America's attempt to foreclose on Block 37.

In documents filed in Cook County Circuit Court late Friday, the city said the agreement it signed with developers when it sold the property at 108 N. State St. gives it a say in what happens to the project. The city's main interest is to get the public Pedway open next month and to make sure the retail project is completed, the filing said.

The city sold the block to Mills Corp. in 2005. It amended the agreement when Joseph Freed and Associates took over the project in 2007, according to court documents.

Earlier this month, a Bank of America-led group of lenders moved to foreclose on Block 37, claiming Freed essentially ran out of money to complete construction. Freed is contesting the lawsuit.

A judge is set to hear arguments Monday.