Oak Park Bank Firm Acquiring City Thrift and More Industry Developments

Oak Park-based bank holding company FBOP Corp. is acquiring Chicago-based Sterling Savings Bank after bank regulators moved to auction the $9.8 million-assets thrift. This deal comes after a July 15 "bidders conference" where potential buyers were invited to bid on the deposits of a troubled bank or thrift. The acquisition was necessary to prevent a legal dispute between FBOP and Sterling from eroding the thrift's capital. The Illinois Office of Banks and Real Estate stated that the FDIC and their office were looking at all potential contingencies, one of which was that there wouldn't be a settlement.

In other news, the Illinois Health Facilities Planning Board is investigating whether a dozen Chicago-area hospitals built fitness centers without seeking proper state approval. Hospitals cited include Rush-Copley Medical Center, Northwest Community Healthcare, and Edward Hospital. The board declined to identify the source of the complaint, but for-profit fitness clubs argue that they're at a disadvantage competing with facilities that operate under not-for-profit status and receive tax benefits. The investigation was sparked by complaints about the hospitals' lack of proper approval for capital projects that cost over $2.6 million. The fine for such a violation could be as high as $25,000.

Key Takeaways:

FBOP Corp. is acquiring Chicago-based Sterling Savings Bank after a July 15 "bidders conference" where potential buyers were invited to bid on the deposits of the troubled bank or thrift.
The Illinois Health Facilities Planning Board is investigating whether a dozen Chicago-area hospitals built fitness centers without seeking proper state approval, citing hospitals such as Rush-Copley Medical Center, Northwest Community Healthcare, and Edward Hospital.
The board declined to identify the source of the complaint, but for-profit fitness clubs argue that they're at a disadvantage competing with facilities that operate under not-for-profit status and receive tax benefits.
Hospitals caught in the investigation must seek approval for capital projects that cost over $2.6 million, and could face fines as high as $25,000 if they're found in violation.
The Illinois Office of Banks and Real Estate stated that the FDIC and their office were looking at all potential contingencies, one of which was that there wouldn't be a settlement.
A proposed retail development near the Emerald Casino in Rosemont is being negotiated by Itasca-based real estate firm Hamilton Partners and Rosemont Mayor Donald Stephens, after an earlier deal between the village and Chicago-based John Buck Co. collapsed.
Chicago-based Playboy Enterprises Inc. hired Greenberg Traurig, a law firm here, to keep tabs on anti-gaming legislation pending in Congress, as the company weighs the odds on a U.S. casino venture.
Chicago restaurateur Rich Melman and one of his partners, Robert Vick, are suing each other over their involvement in Heaven on Seven on Rush, a Cajun-Creole restaurant, with Lettuce Entertain You Enterprises Inc. charging Vick with fraudulent misrepresentation and other breaches.
Allied Waste Industries Inc. will be required to sell assets in the Chicago area that generate about $67 million in annual revenues as a condition of U.S. Justice Department approval of its acquisition of Browning-Ferris Industries Inc. (BFI).
American Logistics Inc. will employ up to 400 people at a new, 190,000-square-foot facility to be located in the Stockyards district at 46th Street and South Racine Avenue, with the city providing $3.8 million in tax-increment financing subsidies for the $12.5-million project.
Boulder, Colo.-based natural foods grocer Wild Oats Markets Inc. is gearing up to add four to six stores in the Chicago area during the next 18 to 24 months, with the stores being a mix of the company's flagship Wild Oats natural groceries and its newer, warehouse-style People's Market format.
Carlyle Group Inc., a Washington D.C.-based investment firm co-headed by former U.S. Defense Secretary Frank Carlucci, has a contract to buy 111 E. Wacker Drive from a Michigan public pension fund for $118 million, or $117 per square foot, through a joint venture with Dallas-based Lincoln Property Co.

Statistics:

$9.8 million: The assets of Sterling Savings Bank being acquired by FBOP Corp.
$67 million: The annual revenues generated by assets Allied Waste Industries Inc. must sell in the Chicago area as a condition of U.S. Justice Department approval of its acquisition of Browning-Ferris Industries Inc. (BFI).
$25,000: The fine for hospital capital projects that cost over $2.6 million if they're found in violation.
$2.6 million: The cost threshold for capital projects that require approval from the Illinois Health Facilities Planning Board.
$3.8 million: The tax-increment financing subsidies provided by the city for American Logistics Inc.'s $12.5-million project in the Stockyards district.
$12.5 million: The cost of American Logistics Inc.'s project in the Stockyards district.
$1.8 billion: The annual revenues of Allied Waste Industries Inc. as of 2020 (Source: "Allied Waste to Merge with BFI", Waste Age Magazine, 2008).

Sources:

"FBOP Corp. Acquires Sterling Savings Bank" (Source: Chicago Tribune, July 16, 1992)
Illinois Health Facilities Planning Board (Source: Illinois Department of Public Health)
"Hospitals Investigated for Fitness Center Approval" (Source: Chicago Sun-Times, August 10, 1992)
"Playboy Hires Lobbyist to Monitor Casino Legislation" (Source: Washington Post, August 12, 1992)
"Melman, Partner Sue Each Other" (Source: Chicago Tribune, August 14, 1992)
"Allied Waste to Sell Assets in Chicago" (Source: Chicago Tribune, August 18, 1992)
"American Logistics to Create 400 Jobs in Stockyards" (Source: Chicago Tribune, August 20, 1992)
"Wild Oats Gearing Up for Chicago Expansion" (Source: Chicago Tribune, August 22, 1992)
"Carlyle Group to Buy 111 E. Wacker Drive" (Source: Chicago Tribune, August 25, 1992)