Crowd Reviews Uptown Proposal

By Lorraine Swanson
Pioneer Press News-Star

More than 100 residents crammed into the Aragon Ballroom lobby on a hot muggy night to hear plans for a proposed development slated for the properties at 4738-50 N. Winthrop Ave. and the southeast corner of Lawrence and Winthrop.
Uptown resident and developer Jim Gouskos, who owns the Kinetic Playground, wants to build a 21-story, mid-rise condominium building on the 4700 block of North Winthrop, and a seven-level parking structure with retail and movie theaters across the street on Lawrence Avenue. Gouskos has already completed a historic building rehab at 1101-1113 W. Lawrence Ave., that houses a Chase Bank.
Plans for the development were first presented two years ago, when Gouskos was granted a zoning change to allow for increased density at the Winthrop property. At that time, plans for the Lawrence Avenue property included a parking structure and one floor of retail, not to exceed 110 feet. With the loss of the movie theaters at the Wilson Yard development, plans have expanded to include a nine-screen movie theater on the fifth, sixth and seventh levels, along with parking for 499 cars. The height of the building will not change.
Gouskos said he wanted the community's input into the type of retail that will be offered at the Lawrence Avenue property. He is shopping for a grocer to lease the ground floor, and a restaurant to lease part of the roof level, overlooking a "green" roof.
"This is my way of making my mark in the world, right here in this area," Gouskos told residents on Aug. 9. "I don't want this to have anything to do with politics, no matter who is alderman, mayor or ward committeeman."
But the evening did take on a political tone, as some residents questioned the logistics of the parking structure, wondering if it were enough to accommodate shoppers and movie-goers, as well as those attending shows at the Aragon, which will reserve 300 parking spaces will be reserved on concert nights.
"Traffic studies have been done and people aren't driving as much. This isn't a destination spot. People will walk or take mass transportation. We know from pre-sales of the condos how many people have bought parking," Gouskos said.
Residents also questioned the viability of the movie theater, since the Kerasotes Theaters planned for Wilson Yard fell through.
"The movie theater will help create critical mass for the retail," said Alderman Helen Shiller, 46th. "What happened to the movie theaters at Wilson Yard, we found a theater company that is comfortable creating theaters in the 1,800 to 2,000 seat range. I completely understand and it was one of the reasons we came to the conclusion that it wasn't viable there."
Gouskos said he has already been approached by the Meadow Theater Group and has a letter of intent.
"They said the numbers work out with the mass transit and density, more than any other theater that they've done," Gouskos said.
Gouskos does not yet own the Lawrence Avenue property, which has been held in escrow to determine if it is eligible for TIF money from the Lawrence-Broadway TIF District. Once the sale is finalized, the proposed planned development will go before the city's Community Development Commission. The commission will review the plans and recommend action to the City Council, including TIF financing for the Lawrence Avenue property.
Construction is tentatively scheduled to begin in Spring 2008, and will take about 18 months to complete both structures, Gouskos said.

Aragon Owner A Partner In Uptown Movie Theater Project

By Eddie Baeb
Chicago Real Estate Daily
(Crain’s) — A little-known developer has partnered with the owner of the Aragon Ballroom and struck a deal with a small movie theater company for his proposed residential and retail development across the street from the legendary concert hall.

James Gouskos, owner of Lawrence Properties LLC, joined with Aragon owner Luis Rossi to buy a vacant site at 1063 W. Lawrence Ave. for a building that would house a nine- or 10-screen movie theater, a 500-car parking garage and 85,000 square feet of retail space. Messrs. Gouskos and Rossi paid $4.6 million for the property earlier this month.

Rendering by Perkins Pryde Kennedy + Steevensz Architects Ltd. of the Theater District Lofts, a proposed condo tower in Uptown.

Mr. Gouskos, who lives nearby and has worked on the project for several years, has a letter of intent with Meadow Theatre Group LLC. The Florida-based firm is run by a father and two sons and has one six-screen theater in Keene, N.H. The father, Phil Meadow, operated a 42-theater chain in New England in the late 1970s through the 1980s, according to his son Joshua.

Mr. Gouskos also is still working on plans for a 21-story condominium tower at 4738-50 N. Winthrop Ave., just south of the proposed retail/parking building. The condo tower would have 131 condominiums, four levels of parking and a swimming pool.

“This neighborhood is on a good track,” Mr. Gouskos says.

The residential tower would cost $35 million and the retail/parking building $20 million, says Mr. Gouskos, who is seeking tax-increment financing funds for the retail/parking building. He says he’s close to getting the necessary city approvals to build, and that he hopes to break ground in three to four months.

Mr. Gouskos has tapped Glenview-based Kudan Group to market the retail space. Kudan principal Jeremy Kudan says he’s targeting grocery stores, health clubs and restaurants.
The location should be good for a movie theater, says Barry Schain, a broker and principal with Chicago-based Next Realty LLC who specializes in movie deals. The challenges will come from the difficulty and cost of putting theaters in a multi-story building and providing free or low-cost parking to moviegoers, says Mr. Schain, who is not involved in the project.

“I love that area for a theater,” he says. “I just question the economics and the parking.”

In 2006, Kerasotes ShowPlace Theatres LLC dropped its plan for a 12-screen movie theater as part of the nearby Wilson Yard project, in part because of the high cost of building the necessary multi-level parking garage.

Update: YoChicago has picked up on this story. Check it out here and join the discussion.

Lofty Promises Turn Into Jail Term

Rendering of Theater Lofts
promised for the Chase Bank
parking lot on Winthrop

When UU ran a post last week about the shuttering of Kinetic Playground, we mentioned that there was enough financial backstory for a book, and referred to numerous investor and tenant complaints.  A book may well be in the works, but the Sun-Times front page will have to do for now.

Jimmy Gouskos, the owner of the building where the Kinetic Playground is located, was sentenced last week to 18 years in jail for fraud -- three years more than the prosecution asked for.  This is despite a letter of support from former 46th alderman Helen Shiller.

Many Uptowners first got to know Jimmy when he presented his plans to the community for two empty lots at on Winthrop and Lawrence in 2007.  One, just south of Lawrence (the Chase Bank parking lot), was to be a condo tower called "Theater District Lofts."  The other lot (the Aragon parking lot) was slated to become a building housing a 500-car parking structure, a multiplex to replace the movie theaters that somehow never materialized in Wilson Yard, and lots and lots of retail space.

Neither of those projects ever got built, and according to the convictions against Mr. Gouskos and his business partner, they became a black hole that ate up over $500,000 in earnest money deposits that people had placed to reserve homes in the Theater Lofts building.  There was also a defaulted loan with Broadway Bank (the closing of which pretty much sank the career of Alexi Giannoulias).  The Sun-Times also makes references to connections to the Mob, and deposit money going to internet poker and a drug habit rather than back to the people who had trusted Mr. Gouskos and his associates to build them new homes.

It's all a terribly sad story, with no winners.  Everyone lost something, and our hearts go out to the regular citizens who lost thousands of their hard-earned dollars and have no way of getting recompensated.  Perhaps they can take some comfort in knowing that Mr. Gouskos lost his own home to creditors -- located just south of the lot where the Theater Lofts were going to stand.

UU has been following this story since 2007.  To see more articles about it, click here.  The Sun-Times story is here.

Storefronts Across From The Aragon Now Bank-Owned, For Sale

The storefronts at 1101-1113 W Lawrence, in the building across the street from the Aragon, are now bank-owned and are being marketed for sale, as is the parking lot behind the building.  The condominiums located above the storefronts remain unaffected and are individually owned.

Now empty except for anchor tenant Chase Bank, the storefronts and the parking lot are in a great location and we hope someone takes advantage.  The listing with Sperry Van Ness Commercial Real Estate can be seen here.

The building dates back to 1917, seen above in better days (for the building, not for the condition of the streets).  By the 1980s, it was dilapidated and home to Sharon's Hillbilly Heaven bar; a liquor store that opened at 7am; and Prologue School.  The building was purchased by James Gouskos and rehabbed in the early 2000s. Mr. Gouskos eventually opened the Kinetic Playground nightclub at 1113 W Lawrence.

But legal and criminal charges filed against Mr. Gouskos led to the closure of the nightclub around 2011, and the storefronts went under the management of a receiver in 2012. It's a very long and complicated story that ended up on the front page of the Sun-Times; you can read more about it here.  Let's just say that an awful lot of people lost their life savings to promises made in a tale that involves organized crime, bad loans made by Alexi Giannoulias' family bank, video poker and a gambling addiction. We hope the fortunes of the building take a new turn with a new owner.

Community Meeting for Theatre District Lofts Phase 2 & 3 Set for August 9 at 7pm

There will be a community meeting for those interested in the status of the "Theatre District Lofts Phase 2 and 3" development on August 9 at 7:00pm in the Aragon Ballroom at Lawrence and Winthrop. Jim Gouskos, developer, is hosting the meeting along with others involved in the project. Phase 2 consists of the condominium tower located south of Phase 1. The movie theatre/retail section (currently the site of the Aragon parking lot) located at Lawrence and Winthrop is Phase 3.
Mr. Gouskos has made complimentary parking available for those attending the meeting in the lot across from the Aragon. Plans and updated renderings will be available at the meeting.

Uptown Update Exclusive: Meadow Theatre Group

Uptown Update received this email yesterday from the proposed operator of the movie theatre planned for Lawrence and Winthrop.

Uptown Update:

This morning I spoke with Jim Gouskos regarding the progress of his Lawrence and Winthrop Street project(s). He suggested that I e-mail you and introduce myself, my sons, and the Meadow Theatre Group, as well as bring you in on our plans for the proposed movie theatre to help allay any concerns you, or other community residents, may have in regards to our operating the theatre.

I have been in the motion picture exhibition business since 1974. As of 1989, I owned and operated 42 separate multi-screen theatres throughout New England and New York State. The largest of these were 10 screen theatres that I both designed and constructed. In 1989 I sold my theatre interests to United Artists Theatres to pursue other commercial real estate development opportunities.

In 2000, I resumed operation of one of the theatres that I sold to United Artists. This location is currently being operated by my sons (Joshua and Alex) and me. Joshua, a licensed Florida attorney, works with me in all administrative and accounting functions necessary for the orderly operation of the theatre. Alex (now a producer for Feld Entertainment, Inc.) served as the on-site manager of this theatre for three years and was responsible for the operation of the theatre and maintenance of physical plant. Additionally, Alex was (and still is) exclusively responsible for “booking” the movies from the distributors and was responsible for all advertising and public relations for the theatre.

We have excellent relationships with all the major, and minor, film distributors (Warner Brothers, Paramount, Universal, Sony, New Line, etc.) and have been assured that first run motion pictures are and will be available for this proposed location, without any delay (that is, if a film is to open nationally on August 17, it will open in our theatre on August 17).

One or both of my sons will move to Chicago to become the on-site theatre manager(s). This will ensure excellent ‘hands-on’ ownership/management. Our operating projection model reflects first run film availability and ‘state of the art’ digital sound and video equipment in nine stadium style cinemas. We expect to make a multi-million dollar investment in the theatre equipment and the accompanying appointments to the building itself.

Should you have any questions, please do not hesitate to contact me.


Philip W. Meadow
Meadow Theatre Group, LLC
Phil@MeadowTG.com

Cedar Street Begins To Market Former Kinetic Playground Storefronts

Well, that didn't take long. Just a couple weeks after buying the retail space and adjacent parking lot across from the Aragon, Cedar Street Commercial is marketing the storefronts for tenants.  According to the listing on its website, retail spaces ranging in size from 1700-5200sf are available in the building at 1101 West Lawrence, as well as the large parking lot located at 4750 North Winthrop.

a vintage view of the property, still recognizable. It was constructed in 1917

The building is the former site of the Kinetic Playground nightclub, which closed in 2011 after the legal and financial problems of owner Jimmy Gouskos came to light.  The building was turned over to a receiver in 2012, and was marketed for sale in December 2014.  Cedar Street's acquisition was announced on June 25, 2015.

The second and third floors of the building are individually owned condominiums, which remain unaffected by the sale.  The anchor -- and only current -- tenant is Chase Bank, in the corner storefront at Lawrence and Winthrop.

We remember the Kinetic Playground as a lively spot both post- and pre-concerts during its short lifespan.  We hope to see a new tenant give Aragon concertgoers a place to hang out again during their trip to Uptown.

Protest Planned At Kinetic Playground (Cancelled?)

Read Windy City Times' interview with Kinetic Playground owner Jim Gouskos

Updated at 3:12pm: Read Gay Chicago's coverage by Gary Barlow

Update from the Kinetic Facebook page:
"The Capleton show has been canceled at The Kinetic Playground. This show may still happen somewhere else but as far as The Kinetic Playground is concerned this show will never happen at our venue. We supported your organization, now we would hope that the LGBT community would come support ours. Come out and have a drink... the Oct 9th at the Kinetic Playground!"

Parking Complex/Theatre And High-Rise Update

It's been a while since the community meeting for the "Theater District Lofts Phase II and III was held this past August. Residents were presented with the plans for the construction of a high-rise and nearby parking complex that will feature a movie theatre (to be run by "Meadow Theatre Group"), retail, and restaurants at Lawrence and Winthrop. We wondered what the status of this project was and are happy to report it is moving right along. The parking lot across from the Aragon has been purchased although the closing for this property took a bit longer than expected. Developer Jim Gouskos is moving forward on the projects and is confident that the neighborhood will benefit from this complex. The 21 story highrise has a new look that we think looks pretty sharp. We are working on getting updated renderings of the parking complex/theatre and will post them as soon as they become available.

Update: We added another view of the building (top) from the vantage point of Winthrop looking back towards Lawrence (the El tracks are to the left of the building). Judging from the 2 photos here, there are also 2 variations of the facade on the parking level of the building. Also, the building is evidently 21 stories and not 20 as originally thought.

Community Meeting

All Uptown Update readers are encouraged to attend a community meeting this Thursday, August 9th at 7 p.m. in the main lobby of the Aragon Theatre to discussion the proposed development plans for the southeast corner of Lawrence and Winthrop.

According to developer Jim Gouskos, the current plans for this site include a nine-screen movie theatre, 700 space parking garage and additional retail space for a restaurant or grocery.

Due to the significant impact on auto and pedestrian traffic, all Uptown residents should attend to learn about the plans and voice their opinion to Alderman Shiller, who will be present.

When Will Wilson Avenue Businesses Benefit?

Letters to News-Star:
While it is encouraging to hear about the TIF's being allocated to a new development slated for Jimmy Gouskos on Lawrence, it is disappointing to other business owners in the community who are offered nothing by (46th Ward) Alderman Helen Shiller nor will we probably ever receive funding because of current TIF's being tied up in Wilson Yards. I own Unique So Chique on Wilson Avenue. I have been on Wilson for 9 years and there are many business owners, I am certain, who feel as I do. What about TIF money for our businesses? We were we also told by Alderman Shiller's office that we (certain Wilson businesses) fall in between boundaries and that we are also not eligible for SBIF's provided to small businesses. So how and when will we ever benefit from all our hard work on Wilson Avenue? I would be glad to discuss, in greater detail, mine and other businesses frustrations as well as the newly formed Wilson Area Merchants Association (www.wilsonareamerchants.org). Thank you.

Robert Davis
Uptown