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Developer behind failed Chicago Spire loses another legal battle over project

Garrett Kelleher filed suit last year against Irish-based agency that sold Spire debt to Related Midwest

Related Midwest’s Curt Bailey (yellow) and Garrett Kelleher (purple) with The Spire (Credit: Wikipedia and Getty Images)
Related Midwest’s Curt Bailey (yellow) and Garrett Kelleher (purple) with The Spire (Credit: Wikipedia and Getty Images)

The developer behind the failed Chicago Spire skyscraper project is considering an appeal after losing another court ruling.

Garrett Kelleher last year sued Ireland’s National Asset Management Agency seeking more than $1.2 billion, but a federal judge in Chicago tossed out the complaint last week, saying the court has no jurisdiction over an agency of a foreign state, according to Crain’s.

An attorney for Kelleher told Crain’s the Irish developer is deciding whether to appeal the judge’s ruling.

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Kelleher had started foundation work on the planned supertall at the mouth of the Chicago River when the recession hit and he ran out of money. The Irish agency was tasked with taking over bad loans from Ireland’s banks, including about $90 million in Spire debt that it later sold to Related Midwest.

Related last year unveiled plans for two skyscrapers at the site at 400 North Lake Shore Drive but had to go back to the drawing board after Alderman Brendan Reilly (42nd) nixed the project over a variety of community concerns.

Related CEO Curt Bailey told The Real Deal in November his firm revised its plans for the two-building project and hoped to start winning approvals for it early this year. [Crain’s] — John O’Brien

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