The owners of the Talbott Hotel in Gold Coast are suing the adjacent condominium tower for losses caused by the condo’s construction.
According to an article onChicagoRealEstateDaily.com,the complaint filed by the partnership of the Talbott Hotel says debris, fumes, flying wood boards and severe noise at 10 East Delaware Place, a venture set forth by Michael Reschke, chairman of the Chicago-based Prime Group Inc., were just some of the things that mired business for the boutique hotel. The construction inhibited the hotel’s ability to rent guest and conference rooms along the west side of the building. Guests already at the hotel, cut their stays short or canceled their reservations altogether.
Among other hindrances, the suit says, workers would routinely begin construction early in the morning and continue late into the night.
“Such off-hour work also occurred on weekends,” says the complaint, filed in Cook County Circuit Court.
Talbott’s complaint is also against Prime Group, which Talbott says failed to hold up its end of the agreement to build a restaurant that would connect the two buildings. The condo’s floors are also 7 inches lower than the floors of the hotel, which violates the agreement, says the complaint.
The 10 East Delaware Place tower is 36 stories and houses 118 units. Construction began in 2006. Already, 81 percent or 91 units were sold under contract by 2009.
According to the complaint, the Talbott Hotel began encountering problems once the construction of the tower began.
Reschke fired back, saying, “This lawsuit is frivolous and without merit.”
“10 East Delaware had already compensated the hotel for all amounts refunded to hotel guests who may have had a noise complaint, even if such noise complaints were themselves frivolous and without merit,” he says, according to the article. “The hotel sent us monthly invoices during the construction, and all of those invoices were paid.”
Basil Kromelow, who owns the company that manages the Talbott partnership, didn’t return a phone message requesting comment, according to the article.