This information is from the Neighborhood Update section of the Uncle Hugo's 
and Uncle Edgar's newsletter.  These great bookstores are located directly 
across from the Sears building.  They are like the hardware stores, great 
neighborhood businesses that via with Barnes and Noble, Borders and other 
icky national chains.

Sorry this is so long, especially in light of the settlement this week.   But 
I think it is important to include the whole article as perfectly as my 
typing skills are.

I replied to an earlier message, not knowing a settlement had been reached.

Josh Kroll
Powderhorn - Ward 9
Able to see the Sears building by looking to the right of my computer and out 
the window.

Neighborhood Update
by Don Blyly

We frequently have people ask what is going on across the street with the 
fromer Sears building.  It used to be that many of the meetings I attended 
were full of reliable news about the project, but things have changed.  Ray 
Harris, the chief developer, came to almost every monthly meeting of the 
Chicago-Lake Business Association to keep the local business people 
up-to-date on what was happening, through October 2000, but he hasn't been to 
a meeting since then.  As a result, much of what I'm about to pass along can 
almost qualify as gossip rather than news, coming from people who had talked 
to Ray or to MCDA (Mpls Community Development Agency, the negotiating arm of 
the city), from local community activists, and from various articles in 
various newspapers.

The problem all along has been parking.  There are not enough parking spaces 
available to develop the site as retail/office space because there wouldn't 
be anyplace for customers or employees to park.  Ray Harris and MCDA reached 
agreement on a solution, but the city would not put the agreement into the 
form of a contract that Ray was willing to sign.

Things started to turn nasty when the city tried to make a land grab for the 
Hi-Lake Shopping Center, next to where the Lake Street light rail station 
will be located.  The owner of the 100% rented center didn't want to sell, 
the merchants didn't want to move, and the neighborhood didn't want the 
merchants to leave the area.  The city delcared the center a "blighted" area, 
and announced that they would evict all the merchants sometime in the Fall of 
2000.  The city tried to get Ray Harris to let some of the major merchants 
from Hi-Lake to move into the former Sears building.  Ray Harris pointed out 
that there would be no parking for customers or employees of these 
businesses, which was why the building was still empty, and the these 
business were not a good match for what he wanted to do with the building.  
Hi-Lake neighborhood activists and the businesses were also opposed to the 
plan.  The city backed off from their plans to evict the businesses.  But as 
one observer of the situation commented while here in the store, "Ray Harris 
had proved that he would no be a 'good ole boy', so the city decided to get 
rid of him."  The mayor and the head of MCDA started attacking him for not 
delivering the jobs he had promised from the development, when it was clear 
that it was the MCDA's unwillingness to put in writing the agreement 
regarding parking that had stalled the project.

Last September, the Chicago-Lake Business Association got a couple of people 
from MCDA to come to our meeting to brief us on what was going on.  With Ray 
Harris sitting across the table from him, the head of MCDA gave a 
substantially different version of things than he had been giving in meetings 
wher Ray was not present.  Ray gave substantially the same story he had been 
giving us all along.  As of that meeting, Ray and the MCDA were still 
negotiating.  About a month later, Ray commented that the situation was much 
more complex than had been presented at the September meeting, but gave no 
further details.

>From community activists, I heard that Ray was trying to either bring in 
another partner with deep pockets or else sell the two buildings that are 
completely rented, in order to raise enough money to pay off MCDA's mortgage 
on the land and get the city completely out of the picture.  When MCDA found 
out about this, they started to threaten early foreclosure on the mortgage, 
claiming that somehow it was a violation of the mortgage to try to pay the 
city off early.

I've also heard from community activists that part of the problem was that 
when things started to turn strange between Ray and the city, most people in 
City Hall expected Al Gore to be elected president, and that he would offer 
the mayor a job in his adminstration.  The prospect of the mayor's job 
opening up supposedly led some people in city hall to start maneuvering with 
an eye towars the mayoral election inways that hurt Ray's chances of getting 
an acceptable signed contract from MCDA.  I don't know if this is true, but 
it would explain some the stupidity on the part of the city.

Around the end of December, both MCDA and Ray Harris reported that they were 
still meeting frequently and were in intense negotiations.  Ray also 
reportedly advised, "Don't believe everything you read in the paper."

In early February, they city filed in court for early foreclosure on the 
mortgage.  Ray has said repeatedly that he does not plan to just walk away 
from the development, but will vigorously defend his rights to the property 
in court, and that lots of stuff will come out in court that the public is 
not currently aware of.

These are actually two mortgages, one from MCDA and one from a bank, and both 
come due at the end of March.  Everybody has been acting as if the end of 
March is the real deadline for either an agreement between MCDA and Ray 
Harris or a refinancing package.  But it is hard to be optimistic, given what 
has happend over the last nine months.
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