Chicago will grant $150 million in subsidies to real estate developers to convert unused office space in the once-vibrant downtown district into hotels and apartments in hopes of revitalizing the deteriorating area..
Under the plan — the most generous by any city addressing the commercial real estate crisis sparked by the pandemic — the taxpayer money will help create 1,000 apartments in four buildings, as long as about a third will be set aside as affordable units, according to The Wall Street Journal.
The move comes as the Democrat-led Windy City has been plagued by rampant crime and the flight in recent years of major companies — including Ken Griffin’s hedge fund Citadel and aerospace giant Boeing. Griffin said the last straw in his decision to relocate Citadel to Florida in 2022 came after a colleague was robbed while having a gun pressed to his head during a coffee run.
Aside from the city’s lawlessness, Chicago’s office market has been beset by weakening demand, higher interest rates and difficulties in refinancing, The Journal reported.
Mayor Brandon Johnson, a progressive who defeated Lori Lightfoot last year, ran on a platform of increasing taxes on businesses. But he has been forced to ally with the real-estate community to save the downtown’s commercial office district.
Earlier this year, he appointed a real-estate executive to lead the citys Department of Planning and Development, and Johnson’s subsidy plan has earned praise from the business community.
In March, Chicago businesses backed Johnson’s plan to sell up to $1.25 billion in housing and economic development bonds designed to spur economic growth and the construction of more affordable homes.
He does not want to be the mayor who loses downtown, David Reifman, who served as commissioner of planning and development under former Chicago Mayor Rahm Emanuel, told The Journal.
Other US cities — including New York, where some unused office buildings are being converted into residential real estate. — have faced similar difficulties since the pandemic, but Chicago’s woes are the among the worst.
In early 2020, Chicago’s office vacancy rate was 11.9%. In the second quarter of this year, the vacancy rate stood at 16.3% — well above the national average of 13.8%.
Last year, fewer than five large-office buildings were sold, according to the Building Owners and Managers Association of Chicago. The deals that were finalized resulted in losses ranging from 50% to 90%.
Data from KBRA Analytics shows that three-fourths of the mortgages that back Chicago office space are either in default or are at risk of default.
Chicago, the birthplace of the skyscraper, has seen some of its tax revenue dry up thanks to the declining values of commercial real estate.
In a sign of just how dire the commercial real estate market is nationwide, Starwood’s Real Estate Income Trust, which is run by real estate mogul Barry Sternlicht and his company Starwood Capital Group, announced that it would impose tighter limits on investors’ ability to pull money from the $10 billion fund.
The move by SREIT is seen as an effort to delay selling off assets at a loss. By the end of April, SREIT had just $752 million in available liquidity, according to Bloomberg News.
Before the move, investors could redeem withdrawals of up to 2% of net asset value. Now they could only withdraw 0.33%.
Sternlicht said in an emailed statement that the company believes “the real estate markets are bottoming and will continue to improve from here” and thus “further leveraging the vehicle or selling our portfolio’s assets to meet monthly redemptions would negatively impact all investors.”
Treasury Secretary Janet Yellen said earlier this year that she expects additional bank stress and financial losses from weakness in the commercial real estate market but believes this will not pose a systemic risk to the banking system.
Yellen told a Senate Banking Committee hearing that regulators are working with banks to address risks caused by higher post-pandemic vacancy rates for many office buildings in larger cities, and higher interest rates for refinancing loans.
Brazilian police say they foiled a bomb attack planned for a Lady Gaga concert on Rio de Janeiro’s Copacabana beach that attracted an estimated 2.1 million people.
The plot was orchestrated by a group promoting hate speech and the radicalisation of teenagers, including self-harm and violent content as a form of social belonging, according to the Civil Police of Rio de Janeiro, which worked in coordination with the country’s justice ministry.
“The suspects were recruiting participants, including minors, to carry out coordinated attacks using improvised explosives and Molotov cocktails,” the force said.
The justice ministry said the recruiters identified themselves as Gaga’s fans, known as “Little Monsters”.
It said Operation Fake Monster was based on a report by the ministry’s cyber operations lab following a tip-off from Rio state police intelligence, which uncovered digital cells encouraging violent behaviour among teenagers using coded language and extremist symbolism.
Authorities carried out over a dozen search and seizure warrants, and a man described as the group’s leader was arrested in the southern state of Rio Grande do Sul for illegal possession of a firearm, and a teenager was detained in Rio de Janeiro for storing child abuse images.
Image: Lady Gaga performing at the huge open-air concert. Pic: Reuters
Gaga’s biggest ever show
Some 500,000 tourists travelled to watch the concert, which was paid for by the city in an attempt to boost the struggling economy.
Saturday night’s two-hour show, which marked Gaga’s biggest ever, marked the first time she had played in Brazil since 2012, having cancelled an appearance at the Rock in Rio festival in 2017 over health issues.
Gaga, who released her seventh studio album, Mayhem, in March, opened with a dramatic, operatic edition of her 2011 track Bloody Mary, before launching into Abracadabra, a recent track.
Image: Pic: AP
Image: Pic: AP
“Brazil! I missed you. I missed you so much,” she exclaimed, before launching into Poker Face, one of her biggest hits.
The American pop star drew in a similar crowd to Madonna’s in May last year, who performed at the same beach, which is transformed into an enormous dance floor for the shows.
Addressing the crowd in English and through a Portuguese translator, Gaga became emotional as she said: “I’m so honoured to be here with you tonight.
Image: Gaga addresses the crowd. Pic: Reuters
Image: Gaga seen performing on giant screens set up across the beach. Pic: Reuters
“Tonight we’re making history, but no one makes history alone. Without all of you, the incredible people of Brazil, I wouldn’t have this moment. Thank you for making history with me.
“The people of Brazil are the reason I get to shine today. But of all the things I can thank you for, the one I most am grateful for is this: that you waited for me. You waited more than 10 years for me.”
She said it took so long to come back because she was “healing” and “getting stronger”. The pop sensation cancelled many of her shows in 2017 and 2018 due to her fibromyalgia condition, which can cause pain and fatigue.
It is estimated Gaga’s show will have injected around 600 million reais (£79.9m) into the economy, nearly 30% more than Madonna’s show.
The large-scale free shows are set to continue annually until at least 2028, always taking place in May, which is considered the economy’s “low season”, according to the city’s government.
A hefty security plan was in place, including the presence of 3,300 military and 1,500 police officers, along with 400 military firefighters.
‘A dream come true’
Image: Pic: AP
The city has been swarmed with Gaga fans since her arrival on Tuesday, with some even keeping vigil outside of the hotel she has been staying at.
Many arrived at the beach at the crack of dawn on Saturday to secure good spots on the beach, despite the show not starting until 9.45pm.
Image: An aerial view shows fans gathering on Copacabana beach ahead of Lady Gaga’s arrival. Pic: Reuters
Ana Lara Folador, who attended with her sister, said it was “a dream come true”, and that Gaga had “really shaped a part of my personality, as a person and an artist”.
Ingrid Serrano, a 30-year-old engineer who made a cross-continent trip from Colombia to Brazil to attend the show, turned up in a T-shirt featuring Lady Gaga’s outlandish costumes over the years.
“I’ve been a 100% fan of Lady Gaga my whole life,” she said, adding the 39-year-old megastar represented “total freedom of expression – being who one wants without shame”.
Image: A fan dons an unusual face mask. Pic: AP
Image: A fan strikes a pose. Pic: AP
Matheus Silvestroni, 25, an aspiring DJ and a Gaga fan since the age of 12, endured an eight-hour bus ride from Sao Paulo for the show.
He said it was Gaga who had inspired him to embrace his sexuality and pursue his dream of becoming an artist.
“I was bullied because I was a fat, gay kid, so I was an easy target,” he said. “Gaga was very important because she sent a message that everything was okay with me, I wasn’t a freak, because I was ‘Born This Way’.”
Rio is known for holding massive open-air concerts, with Rod Stewart holding a Guinness World Record for the four million-strong crowd he drew to Copacabana beach in 1994.
John Lithgow is a man well aware of cancel culture and its ability to destroy careers in the blink of an eye.
The Oscar-nominated actor tells Sky News: “It is terrible to be so careful about what you say. Even in an interview like this. It goes into the world, and you can get misconstrued and misrepresented and cancelled in [the click of a finger].”
Image: Roald Dahl is the subject of West End play Giant, by Mark Rosenblatt. Pic: Johan Persson
It’s a theme that runs parallel with his latest work – the stage show Giant – which through the lens of one explosive day in children’s author Roald Dahl‘s life, poses the question, should we look for moral purity in our artists?
The writer of great works including The Witches, Matilda and The BFG, Dahl revolutionised children’s literature with his irreverent approach, inspiring generations of readers and selling hundreds of millions worldwide. But his legacy is conflicted.
Lithgow describes Dahl as “a man with great charm, great wit and literary talent. A man who really cared about children and loved them. But a man who carried a lot of demons.”
Specifically, the play – which explores Palestinian rights versus antisemitism – deals with the fallout from controversial comments the children’s author made over the Israeli invasion of Lebanon in 1982. Its themes couldn’t be more timely.
Lithgow explains: “Things are said in the play that nobody dares to say out loud… But God knows this is a complicated and contradictory issue.”
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Image: John Lithgow plays Dahl – a man capable of ‘great compassion’ and ‘enormous cruelty’. Pic: Johan Persson
‘It didn’t start as an idea about Roald Dahl at all’
So controversial are some of the play’s themes, the 79-year-old star admits his own son warned him: “Prepare yourself. There’ll be demonstrations in Sloane Square outside the Royal Court Theatre.”
Indeed, the play’s first run carried an audience warning flagging “antisemitic language; graphic descriptions of violence; emotional discussion of themes including conflict in the Middle East, Israel and Palestine; and strong language”.
But it didn’t put audiences off. Following a sold-out run at the Royal Court, the role won Lithgow an Olivier. Now, it’s transferring to London’s West End.
The play was written by Mark Rosenblatt, a seasoned theatre director but debut playwright.
He tells Sky News: “It didn’t start as an idea about Roald Dahl at all. It was about the blurring of meaningful political discourse with racism, specifically when, in 2018, the inquiry into antisemitism in the Labour Party started to come out.”
Rosenblatt describes Dahl’s Revolting Rhymes and Dirty Beasts as the “wallpaper” of his childhood, and says he had no desire to “smash the Roald Dahl pinata”.
But despite the fond recollections, he was conflicted: “Understanding that [Dahl] also, possibly, didn’t like someone like me because I’m Jewish felt complicated.” It was Rosenblatt’s exploration of “how you hold those two things at the same time” that led to Dahl becoming the play’s focus.
Image: Elliot Levey plays Dahl’s Jewish publisher, and Aya Cash plays an American Jewish sales executive. Pic: Johan Persson
‘He’s not cancelled in our home’
Rosenblatt describes him as “a complex man, capable of great compassion, great passionate defence of oppressed people, and also capable of enormous cruelty and manipulation. He was many things at once”.
And as for Dahl’s place in his life now? Rosenblatt says: “I still read his books to my kids. He’s certainly not cancelled in our home.”
It’s likely that Dahl’s comments, if uttered today, would lead to swift social media condemnation, but writing in a pre-social media age, the judgment over his words came at a much slower pace.
Dahl died in 1990, and his family later apologised for antisemitic remarks he made during his lifetime. But the debate of whether art can be separated from the artist is still very much alive today.
Earlier this month, Lithgow found himself drawn into a different row over artists and their opinions – this time concerning author JK Rowling.
Image: JK Rowling in 2019. Pic:AP
‘A matter of nuance’
Soon to play Dumbledore in the Harry Potter TV series, he has been criticised by some fans for working with the author known for her gender critical beliefs.
Lithgow told Sky News: “It’s a question I’m getting asked constantly. I suppose I should get used to that, but JK Rowling has created an amazing canon of books for kids…
“I have my own feelings on this subject. But I’m certainly not going to hesitate to speak about it. Just because I may disagree… It’s a matter of nuance… I think she’s handled it fairly gracefully.”
The actor ignored calls not to take the role.
He goes on: “Honestly, I’d rather be involved in this than not. And if I’m going to speak on this subject, I’m speaking from inside this project and very much a partner with JK Rowling on it.”
Demanding an eight-year commitment and a move to the UK for the part, the stakes are high.
And with a legion of Harry Potter fans watching on from the wings, only time will tell if the Lithgow-Rowling partnership will prove a magical one.
Giant is playing at the Harold Pinter Theatre in London until Saturday, 2 August.
Lorraine Kelly has revealed she is undergoing surgery to remove her ovaries and fallopian tubes.
The 65-year-old TV presenter posted a video of her in a hospital bed on Instagram, and said “I’ve not been feeling all that well for a little while”.
Kellyadded she “had a little scan and I have to have my ovaries and my tubes taken out” with keyhole surgery.
She said that the procedure is “purely preventative,” and that “I’m going to be totally fine, see you soon”.
According to the NHS, keyhole surgery – also called laparoscopic surgery – is carried out using several small incisions.
The procedure can take between one and two hours, and doctors recommend staying off work for two to four weeks after the surgery.
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In the caption, the ITV presenter wrote she felt “very lucky to be treated so well” and thanked gynaecologist Dr Ahmed Raafat and hospital staff.
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Good Morning Britain presenter Susanna Reid said she was “sending you all the love in the world”, while TV presenter Julia Bradbury added: “Wishing you a speedy recovery Lorraine, and good luck with the post op rehab.”