Following the shutdown of West Loop’s upcoming Buona Beef Restaurant, resident Moshe Tamssot criticized the West Central Association (WCA) Jan. 18 for establishing a “pattern” of local businesses closing permanently.
In a Facebook post on the “True West Loop” group, the longtime managing partner at The Innovation Center highlighted that the developer of the new Buona Beef was R2 Companies, whose members are also affiliated with WCA’s Board of Directors and own the building, which was the location of many businesses prior to Buona Beef.
“Dear West Central Association, there’s nothing 'weird' about Buona Beef closing so fast, as (President Armando Chacon) would like us to believe,” Tamssot said in his post.
He also said that the WCA sells its board seats and are currently “masquerading” as the West Central Association Chamber of Commerce.
Tamssot said the methods WCA developers have used for years to control successful businesses. R2 first buys buildings that hold strong companies like Perman Wines, Más and Harold’s Chicken before increasing the rent on the newly empty spaces.
The developers then delay operations such as openings, city inspections or permit signings in order to pressure businesses into giving them more taxes and fees.
Commercial brokers, including WCA, will repeatedly lease the same properties and earn full commissions for them regardless of how often the businesses fail. The brokers receive more commissions each time they raise the rent prices.
Finally, the WCA will only fund “Special Service Areas” (SSR) in Greektown and soon in Madison Row, leaving any business outside of those areas to financially support themselves in other ways. The WCA can then create new taxes for SSR businesses and skim up to 30 percent of tax receipts.
“When commercial brokers are running the show, they’ll do what’s best for commercial brokers,” Tamssot said. “If a Community Trust was running the show, they’d do right by the entire community: city, businesses, residents.”
Alerts Sign-up