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River City condo owners sue to block $90M sale to Marc Realty, say board conspired to ‘bribe’ holdouts, skew vote

without comments

 River City and Van Buren Street Bridge

Cook County Record:

In the wake of a vote to approve a sale that would reportedly pave the way for the largest condos-to-apartments conversion in Chicago to date, a group of condominium owners in the River City complex have filed suit to block the more than $90 million sale, accusing the condo association board of working with the would-be buyers to essentially target and bribe certain unit owners to persuade them with secret “side deals” to vote to approve the sale.

The collection of condo owners, including owners on both sides of the vote to sell the South Loop condo complex to developer Marc Realty, filed their complaint in Cook County Circuit Court on Oct. 3 through attorneys with the firm of Chuhak & Tecson, of Chicago.…

According to the River City owners’ complaint, River City voters rejected two initial offers from Marc Realty for about $83.1 million and $92.2 million, respectively. In December 2017, unit owners appeared to approve a sale worth $100 million, with 79 percent of owners voting yes.

However, in May, Marc Realty terminated the sale, and then came back with an offer worth $90.5 million. About 77 percent of owners purportedly approved the sale at the lower purchase price in balloting that closed at the end of August.

However, opponents of the sale cried foul, and, according to the complaint, conducted an audit of the votes cast. They assert their audit indicates the purchase deal actually received only 72 percent of the vote.

Further, they alleged their information indicates the River City board worked with Marc Realty to hold the vote open, even though more than 90 percent of owners had voted, to allow the buyer to “bribe” as many as 35 owners with “additional consideration not set forth in the contract,” to change their votes from no to yes.

The complaint asserts this maneuver stands as a violation of the law, and should invalidate the vote, which they said “was the result of substantial misrepresentations .. to induce the owners to vote against their best interest.”

(click here to continue reading River City condo owners sue to block $90M sale to Marc Realty, say board conspired to ‘bribe’ holdouts, skew vote | Cook County Record.)

Wild. 

Unless this settles, I’d think this could drag out for years.

Written by Seth Anderson

October 4th, 2018 at 5:59 pm

Posted in Chicago-esque

Tagged with ,

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