Crain’s Real Estate News reports the results of a meeting at The Chicago School of Real Estate at Roosevelt University that covered the proposed 2016 Olympic Village. This project is estimated to cost $1 billion (we think that is a grossly UNDER estimated number) and will be placed on the site of Michael Reese Hospital, which the city has purchased for $86 million.
“Financing is the biggest obstacle,” said Jerry Karlik, a principal at Kargil Development, which has done projects in the South Loop and responded to a bid committee request for expressions of interest in the Olympic Village earlier this year. “There’s going to have to be some sort of assistance: guarantees, tax credits or something.
Mr. Karlik, who attended the luncheon, said he figures lenders today won’t finance more than 60% to 70% of a project, compared with 80% to 90% before the recession.
“Someone’s going to have to come to the table to fill the void,” he said.
40 per cent of $1 billion is $400 million. Got any spare change? Guess where the city will reach to make their numbers work? Your pocket. That’s where. Had enough yet? Say “NO!” to the 2016 Olympics. Go to our Take Action page and take some action.