WBEZ | Carranza http://www.wbez.org/tags/carranza Latest from WBEZ Chicago Public Radio en Congress Theater defaults on $4 million loan http://www.wbez.org/blogs/jim-derogatis/2012-11/congress-theater-defaults-4-million-loan-104101 <p><div class="image-insert-image "><strong><u>UPDATED 11:30 a.m. with comment from Eddie Carranza</u></strong></div><div class="image-insert-image ">&nbsp;</div><div class="image-insert-image ">Even as controversial venue owner Erineo &ldquo;Eddie&rdquo; Carranza is trying to evict the current operators of the Portage Theater for back payment of $103,000 in rent &mdash; and on the same day he filed a $260,000 lawsuit against former development partner Phil Tadros for breach of contract &mdash; the bank that holds his mortgage <a href="http://www.scribd.com/doc/114896207" target="_blank">filed a lawsuit</a> in U.S. District Court stating that he has defaulted on a $4 million loan and is moving to foreclose on the embattled Congress Theater.</div><div class="image-insert-image ">&nbsp;</div><div class="image-insert-image "><img alt="" class="image-original_image" src="http://www.wbez.org/system/files/styles/original_image/llo/insert-images/carranza_1.jpg" style="height: 458px; width: 280px; float: right;" title="Eddie Carranza (Andrew Gill/WBEZ)" />Filed yesterday by the Chicago firm of Adelman &amp; Gettleman on behalf of Delaware-based PNC Bank, the lawsuit claims that Carranza has defaulted on repayment of $4 million he borrowed in August 2007 and secured with a mortgage on the historic Congress Theater. The bank has been seeking repayment of the loan since August 2011.</div><p>In addition to payment of its legal fees, PNC Bank is seeking &ldquo;an order for the appointment of a receiver, a judgment of foreclosure on the mortgage and sale of the subject property for payment of its lien and costs&hellip; and such other and further relief as the court deems just.&rdquo;</p><p>Also named in the 58-page lawsuit is the City of Chicago, though it is not clear why. (Legal experts say the city may have a lien on the property and PNC is seeking to terminate the lien.)</p><p>&ldquo;It&rsquo;s an insurance placement issue, it has nothing to do with non-payment on the loan,&rdquo; Carranza&rsquo;s attorney Thomas Raines said in an email when asked about the foreclosure lawsuit this morning. &ldquo;It will be straightened out in a week.&rdquo;</p><p>Three letters that PNC&rsquo;s attorneys sent to Carranza between August 2011 and September 2012 about defaulting on the loan make no mention of insurance. The letters are attached as an exhibit in the lawsuit.</p><p>&ldquo;I don&rsquo;t have authorization to comment at this time,&rdquo; said Attorney Brad Berish, who filed the suit for Adelman &amp; Gettleman on behalf of PNC. &ldquo;If that changes, I will get back to you.&rdquo;</p><div class="image-insert-image ">Carranza has been fighting the city in a battle on two fronts over issues at the Logan Square theater. At the same time, he recently closed on purchase of the Portage Theater at Six Corners for a price close to $3 million.</div><p><br />The next Deleterious Impact/Public Nuisance hearing on complaints against the Congress ranging from noise to the number of police calls to unsafe conditions for concertgoers is scheduled for May 7.</p><p>The next hearing for complaints before the Liquor Commission is set for Jan. 15.<sup> </sup></p><p>The commission has not responded to a Freedom of Information Act request for the specifics of the complaints against the venue in those proceedings.</p><p><u><strong>UPDATED 11:30 a.m.</strong></u></p><p>Carranza has posted the following to the <a href="http://chicago.everyblock.com/announcements/nov26-a-message-from-congress-portage-management-team-5553489/">EveryBlock discussion about the Portage Theater</a>:</p><blockquote><p>Jim,</p><p>Here you go again trying to start false rumors, Like the one yesterday about me buying Logan Theater and me not having meetings at Portage Park with Graham Elliot. I tried hard to bring in Elliot&#39;s his brand to Portage Park, for now it&#39;s not his market. I&#39;m aiming high because I do believe 6 corners can be great again like the good old days full of life. The entrepreneur restaurateur operators I&#39;m targeting are the best in the business. Please show support and I will continue working hard for the community to rebuild 6 corners together.</p><p>Jim, now you start rumors about me being foreclosed on Congress?<br />Farthest thing from the truth. I have a perfect monthly payment history<br />with PNC bank. You can call and find out for yourself.</p><p>The issue I have with PNC is over an insurance policy issue, which will be taken<br />care of in the next week. I will post the insurance issue resolved on this post next week.</p><p>I&#39;ve have offers from music corporations offering me 5 times more<br />then I owe, why would I lose it to a foreclosure. You sound desperate.</p><p>Again, it&#39;s an insurance placement issue, it has nothing to do with non-payment on the loan (although I&#39;m sure you wish it did!). It will be straightened out in a week.</p><p>Just a thought Jim, if you directed some of the energy and diligence you expend digging into my every move and happenings on something worthwhile, you could become a productive member of society.</p><p>-- Eddie Carranza</p></blockquote><p><u><strong>Earlier reports about Carranza, the Congress and the Portage:</strong></u></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-11/portage-theater-uses-graham-elliot%E2%80%99s-name-vain-104089">Nov. 28: The Portage Theater uses Graham Elliot&rsquo;s name in vain</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-11/congress-theaters-new-security-chief-ex-cop-troubled-past-103611">Nov. 2: Congress Theater&rsquo;s new security chief: An ex-cop with a troubled past</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-10/congress-theater-police-calls-rank-soldier-field-united-center-103569">Oct. 31: Congress Theater police calls rank with Soldier Field, United Center</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-09/how-did-things-turn-so-bad-so-fast-portage-theater-102606">Sept. 23: How did things turn so bad so fast at the Portage Theater?</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-09/new-owner-portage-theater-moves-evict-current-operators-102602">Sept. 22: New Owner of the Portage Theater moves to evict current operators</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-09/congress-theater-splits-development-partner-102451">Sept. 16: Congress Theater splits with development partner</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-09/portage-theater-what%E2%80%99s-eddie-102350">Sept. 11: The Portage Theater: What&rsquo;s Eddie up to?</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-07/congress-theater-partners-up%E2%80%A6-and-looks-expand-101199">July 26: Congress Theater partners up&hellip; and looks to expand</a></p><p><a href="http://www.wbez.org/blogs/jim-derogatis/2012-04/more-trouble-congress-theater-98249">April 14: More trouble at the Congress Theater</a></p><p><a href="http://www.wbez.org/blog/jim-derogatis/2012-03-28/critical-congress-security-headliner-brings-his-own-97696">March 28: Critical of Congress security, headliner brings his own</a></p><p><a href="http://www.wbez.org/blog/jim-derogatis/2012-03-25/congress-theater-responds-complaints-97597">March 25: Congress Theater responds to complaints</a></p><p><a href="http://www.wbez.org/blog/jim-derogatis/2012-03-22/city-congress-theater-clean-your-act-97549">March 22: City to Congress Theater: Clean up your act!</a></p><p>&nbsp;</p><p><a href="http://www.scribd.com/doc/114896207/Congress-Foreclosure-Lawsuit" style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block; text-decoration: underline;" title="View Congress Foreclosure Lawsuit on Scribd">Congress Foreclosure Lawsuit</a><iframe class="scribd_iframe_embed" data-aspect-ratio="" data-auto-height="true" frameborder="0" height="600" id="doc_10400" scrolling="no" src="http://www.scribd.com/embeds/114896207/content?start_page=1&amp;view_mode=scroll&amp;access_key=key-1j6gplh0g2bnqq5kodn2" width="100%"></iframe></p></p> Thu, 29 Nov 2012 09:23:00 -0600 http://www.wbez.org/blogs/jim-derogatis/2012-11/congress-theater-defaults-4-million-loan-104101