This billboard killed a Fulton Market hotel project, lawsuit says
AIC Hotel Group is suing MCZ Development for failing to disclose air rights deal
AIC Hotel Group is suing MCZ Development, saying the developer didn’t disclose an air-rights deal for a billboard when the two made a Fulton Market land transaction. The failure cost the chain an opportunity to build a hotel, according to the suit.
AIC in December bought a parking lot at 600 West Randolph Street from MCZ for $7 million, with plans to build a hotel on the land, the lawsuit contends.
But after the deal closed, AIC learned that Clear Channel had an air rights deal that guaranteed a billboard on the building next door would not be obstructed, the suit said. The billboard deal runs through 2042.
The suit claims MCZ didn’t tell AIC about the billboard agreement before the Randolph Street land deal closed, nor was the air rights agreement ever recorded with Cook County.
The breach-of-contract lawsuit seeks at least $1 million in damages from MCZ, plus costs and fees.
Miami-based AIC’s holdings include resorts in Mexico and the Dominican Republic, along with the Eden Roc Miami Beach and Nobu Hotel Miami Beach. A spokesperson for the company did not respond to a request for comment.
An attorney for MCZ also did not respond to a request for comment.