Here's some news about the Shipka's Enterprise Cos., the developer of Palermo Palm Springs. The Chicago-based developer is suing a condo board in the Windy City. The Dec. 29, 2010 article by Andrew Schroedter of Crain's Chicago Business says: "
A joint venture including Ronald Shipka Sr. and Gerald Fogelson has sued the condominium association of One Museum Park East in the South Loop, alleging that the board is trying extract money from the Chicago developers by jacking up moving fees and falsely claiming that nearly $450,000 was misappropriated. Their venture, which also includes Cleveland-based Forest City Enterprises Inc., still owns 41 units in the 298-unit tower, which was completed in 2008, according to a complaint filed in Cook County Circuit Court. Amid slow sales, the developers want to rent out about half of those unsold units but have been stymied by a recent tenfold increase, to $1,000 a unit, in the fee charged for moving in and out of units being rented, the complaint alleges. The condo board also has falsely told condo owners in a letter that the development venture improperly used nearly $450,000 in reserve funds to pay routine expenses, according to the complaint. And the board has tried to thwart any new sales by refusing to issue accurate 'assessment letters' to prospective buyers saying the development venture is up to date on monthly fees, the complaint says. As a result, the developers can’t sell or rent their units, according to the complaint, which seeks several remedies including an accounting of assessments and court order forcing the board to retract the misappropriation allegation. Liens filed against the unsold units by the condo board would likely bring sales to a halt. A lawyer for the developers says they had no choice but to sue .... The lawsuit isn’t the first time Shipka and Fogelson have taken a hard-nosed approach amid the deep slump in condo sales. Last year, they took the unprecedented step of filing lawsuits against about 100 home buyers who didn't close on contracts for units in One Museum Park East and other condo buildings in Museum Park ... Forest City disclosed the rental plan for One Museum Park East earlier this month, when it recorded an $18.3-million charge on its stake in Central Station. Forest City owns a 25% stake in the venture developing Central Station, which includes Mr. Fogelson, chairman and CEO of Fogelson Properties Inc., and Mr. Shipka, president of Enterprise Cos." See the Crain's Chicago Business Web site for the full story. Or for another take from a Chicago real estate blog, The Condoist, go to
this Web link. Miss Penny Lane says: Such unpleasantness in the north. Let's all hope Enterprise can work its challenges here in Palm Springs and return as part of the Palermo family so we all can move ahead as one.
6 comments:
Mr. Shipka is a smart businessman. He'd be welcome back here with open arms. I hope he works it all out here and returns to build the rest of the community.
Rumor has it he has been working deligently to work all things out here at Palermo with business partners, it would indeed be great to have them back and to completed the original plans.. especially the doggie park which would be so great to have now..
I like his ability to control costs. There's not a lot of oversight right now. The pools are so hot that they practically are boiling!
Condo board in the hot seat, alright.
I wonder when they would start phase 2 and if they are back here how the unsold condos would be sold. I doubt Mr. Shipka would sell them at bargain prices, so the foreclosed units that sold recently are probably the bottom of the market. There's really nothing available.
Let's all move ahead.
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