Daley bails out Parkside of Old Town

The Daley administration has moved the goalposts for Parkside of Old Town‘s public subsidies in an attempt to keep the development afloat, Crain’s reports.

Parkside was supposed to receive its final $3.4 million in promised TIF dollars after selling 85 percent of its 194 market-rate homes. It’s nowhere near that mark, so the city lowered the threshold to 43 percent and cut the number of Parkside’s market-rate homes down to 177. The project’s 85 sales represent — you guessed it — 43 percent of those 177 units, so Parkside’s getting its cash.

Holsten Real Estate Development was in danger of defaulting on a $32 million loan prior to the deal but probably will receive an extension from JP Morgan Chase, according to the article.

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