City Room™ - Politics - Daley: Block 37 Developer, Bank Back to Negotiating Table

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Daley: Block 37 Developer, Bank Back to Negotiating Table
Produced by City Room on Wednesday, October 21, 2009

Chicago Mayor Richard M. Daley (WBEZ/Kate Gardiner

Chicago Mayor Richard Daley says he's not giving up on the long-troubled Block 37 retail mall.

The project hit another snag this week when mortgage-holder Bank of America filed for foreclosure. That's because the developer owes the bank more than $128 million.

Daley says he wants to bring both parties to the negotiating table.

DALEY: There's a disagreement between the developer and the banks and the banks are being pressured to have so much capital by the federal government.. there's a lot... the banks are changing. they have to have so much set aside... and they're arguing that. They can't do risk anymore.

Bank of America financed the $205 million mall more than two years ago.

But the developer says the project could be damaged by the bank's court filing if the company cannot keep its retail leases.

The mayor says Block 37 will be ready for its opening in four weeks.