chicago-condos & Chicago Real Estate pcherry on 28 Feb 2010 05:41 pm

Credit Card Trouble For Spire Developer

February 28, 2010 - Things still aren’t looking up for the planned 150 story Chicago Spire. Now Shelbourne Development has yet another lawsuit pending against them. This time it’s credit card trouble and Bank of America is suing over $110,076 they state is in default by Shelbourne, according to a Crain’s report. Bank of America issued Shelbourne Development two Visa cards to be used for early expenses related to the mega Chicago real estate project and that both have been cancelled and are in default.

The two credit cards in question were issued to Shelbourne Development in 2006 and 2007. Because of the alleged defaulted payments, Bank of America sent a notice of cancellation for both cards in August of last year and then stated that they wanted the full amount owed on both cards to be paid back by September 30, 2009. Since that didn’t happen, this current lawsuit has been filed.

Crain’s also reports that Bank of America, who is also one of the few early lenders to the Spire, said that Shelbourne stated on their credit application that the cards would be used for around $1.2 million a year in various purchases related to the Spire and about $750,000 per year for entertainment and travel expenses. As it stands, the lawsuit is being tacked onto a previous one pending for $4.9 million that Bank of America claims is already owed by Shelbourne.

For those of you who may have had your heart set on a unit at the Spire, you may have a long wait. But there are plenty of other Chicago condos for sale right now.

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