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The lawsuit between Block 37 developer Joseph Freed & Associates and lender Bank of America over a $128 million foreclosure is hard to follow, but a news report filed today on Crain's ChicagoRealEstateDaily.com may shed some light on the crucial question of which side the mayor favors.
The city originally appeared to favor Freed, threatening to punish Bank of America for taking Freed to court. David Roeder reported in the Sun-Times on October 23, "An influential alderman said he is considering whether to bar Bank of America from advising the city on bond issues. 'One might question the wisdom of using Bank of America on a future bond deal, given the circumstances,' said Ald. Edward Burke (14th), chairman of the City Council's Finance Committee. The panel approves underwriters of city bonds." (No link at the S-T; here it is at the Chicago Public Library if you've got a password.)
But the receiver, appointed by the court in response to a request by Bank of America, has an interesting new lawyer. According to Crain's, "John J. George of Daley & George Ltd., will have a billing rate of $350 per hour. Mr. George's other name partner in the firm is Michael Daley, brother of Mayor Richard Daley."
Anybody want to bet on who's going to win now?
Of course, the most important question for taxpayers may be: How much is this going to wind up costing us?