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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.

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Heavy rain helps Elliott to pole for Dover Cup race

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Heavy rain helps Elliott to pole for Dover Cup race

DOVER, Del. — Chase Elliott took advantage of heavy rain at Dover Motor Speedway to earn the pole for Sunday’s NASCAR Cup Series race.

Elliott and the rest of the field never got to turn a scheduled practice or qualifying lap on Saturday because of rain that pounded the concrete mile track. Dover is scheduled to hold its first July race since the track’s first one in 1969.

Elliott has two wins and 10 top-five finishes in 14 career races at Dover.

Chase Briscoe starts second, followed by Christopher Bell, Tyler Reddick and William Byron. Shane van Gisbergen, last week’s winner at Sonoma Raceway, Michael McDowell, Joey Logano, Ty Gibbs and Kyle Busch complete the top 10.

Logano is set to become the youngest driver in NASCAR history with 600 career starts.

Logano will be 35 years, 1 month, 26 days old when he hits No. 600 on Sunday at Dover Motor Speedway. He will top seven-time NASCAR champion and Hall of Famer Richard Petty by six months.

The midseason tournament that pays $1 million to the winner pits Ty Dillon vs. John Hunter Nemechek and Reddick vs. Gibbs in the head-to-head challenge at Dover.

The winners face off next week at Indianapolis. Reddick is the betting favorite to win it all, according to Sportsbook.

All four drivers are winless this season.

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Sports

Hamlin on 23XI trial: ‘All will be exposed’

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Hamlin on 23XI trial: 'All will be exposed'

DOVER, Del. — NASCAR race team owner Denny Hamlin remained undeterred in the wake of another setback in court, vowing “all will be exposed” in the scheduled December trial as part of 23XI Racing’s federal antitrust suit against the auto racing series.

A federal judge on Thursday rejected a request from 23XI Racing and Front Row Motorsports to continue racing with charters while they battle NASCAR in court, meaning their six cars will race as open entries this weekend at Dover, next week at Indianapolis and perhaps longer than that in a move the teams say would put them at risk of going out of business.

U.S. District Judge Kenneth Bell denied the teams’ bid for a temporary restraining order, saying they will make races over the next couple of weeks and they won’t lose their drivers or sponsors before his decision on a preliminary injunction.

Bell left open the possibility of reconsidering his decision if things change over the next two weeks.

After this weekend, the cars affected may need to qualify on speed if 41 entries are listed – a possibility now that starting spots have opened.

The case has a Dec. 1 trial date, but the two teams are fighting to be recognized as chartered for the current season, which has 16 races left. A charter guarantees one of the 40 spots in the field each week, but also a base amount of money paid out each week.

“If you want answers, you want to understand why all this is happening, come Dec. 1, you’ll get the answers that you’re looking for,” Hamlin said Saturday at Dover Motor Speedway. “All will be exposed.”

23XI, which is co-owned by retired NBA great Michael Jordan, and FRM filed their federal suit against NASCAR last year after they were the only two organizations out of 15 to reject NASCAR’s extension offer on charters.

Jordan and FRM owner Bob Jenkins won an injunction to recognize 23XI and FRM as chartered for the season, but the ruling was overturned on appeal earlier this month, sending the case back to Bell.

Hamlin, a three-time Daytona 500 winner driving for Joe Gibbs Racing, co-owns 23XI with Jordan and said they were prepared to send Tyler Reddick, Bubba Wallace and Riley Herbst to the track each week as open teams. They sought the restraining order Monday, claiming that through discovery they learned NASCAR planned to immediately begin the process of selling the six charters which would put “plaintiffs in irreparable jeopardy of never getting their charters back and going out of business.”

Hamlin said none of the setbacks have made him second-guess the decision to file the lawsuit.

“Dec. 1 is all that matters. Mark your calendar,” Hamlin said. “I’d love to be doing other things. I’ve got a lot going on. When I get in the car (today), nothing else is going to matter other than that. I always give my team 100%. I always prepare whether I have side jobs, side hustles, more kids, that all matters, but I always give my team all the time that they need to make sure that when I step in, I’m 100% committed.”

Reddick, who has a clause that allows him to become a free agent if the team loses its charter, declined comment Saturday on all questions connected to his future and the lawsuit. Hamlin also declined to comment on Reddick’s future with 23XI Racing.

Reddick, one of four drivers left in NASCAR’s $1 million In-season Challenge, was last year’s regular-season champion and raced for the Cup Series championship in the season finale. But none of the six drivers affected by the court ruling are locked into this year’s playoffs.

Making the field won’t be an issue this weekend at Dover as fewer than the maximum 40 cars are entered. But should 41 cars show up anywhere this season, someone slow will be sent home and that means lost revenue and a lost chance to win points in the standings.

“Nothing changes from my end, obviously, and nothing changes from inside the shop,” Front Row Motorsports driver Zane Smith said. “There’s not typically even enough cars to worry about transferring in.”

Smith, 24th in the standings and someone who would likely need a win to qualify for NASCAR’s playoffs, said he stood behind Jenkins in his acrimonious legal fight that has loomed over the stock car series for months.

“I leave all that up to them,” Smith said, “but my job is to go get the 38 the best finish I can.”

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Technology

Astronomer CEO Andy Byron resigns after viral Coldplay kiss-cam controversy

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Astronomer CEO Andy Byron resigns after viral Coldplay kiss-cam controversy

Chris Martin of Coldplay performs at the O2 Shepherd’s Bush Empire on October 12, 2021 in London, England.

Simone Joyner | Getty Images Entertainment | Getty Images

Astronomer, the technology company that faced backlash after its CEO was allegedly caught in an affair at a Coldplay concert, said the CEO has resigned, the company announced Saturday.

“Andy Byron has tendered his resignation, and the Board of Directors has accepted,” the company said in a statement. “The Board will begin a search for our next Chief Executive as Cofounder and Chief Product Officer Pete DeJoy continues to serve as interim CEO.”

Byron was shown on a big screen at a Coldplay concert on Wednesday with his arms around the company’s chief people officer, Kristin Cabot. Byron, who is married with children, immediately hid when the couple was shown on screen. Lead singer Chris Martin said, “Either they’re having an affair or they’re just very shy.” A concert attendee’s video of the affair went viral.

In May, Astronomer announced a $93 million investment round led by Bain Ventures and other investors, including Salesforce Ventures.

Byron’s resignation comes after Astronomer said Friday that it had launched a “formal investigation” into the matter, and the CEO was placed on administrative leave.

“Before this week, we were known as a pioneer in the DataOps space, helping data teams power everything from modern analytics to production AI,” the company said in its Saturday statement. “Our leaders are expected to set the standard in both conduct and accountability, and recently, that standard was not met.”

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