CEO of Rezko project in South Loop resigns
(Crain's) — Michael Rumman has quietly resigned as CEO of a mixed-use project proposed for a sprawling site on the Near South Side co-owned by an Iraqi-born billionaire and controversial former Democratic power broker Antoin Rezko.
The resignation is another odd twist in the long-delayed project, which has been mired in controversy because of its ties to Mr. Rezko, who is awaiting trial on federal criminal charges of influence peddling and bank fraud. Mr. Rezko has denied the charges.
Sources say Mr. Rumman resigned several months ago, although the exact timing could not be determined. Before joining the South Loop project, he had been director of the state's Department of Central Management Services in the Blagojevich administration. He declines to comment.
Mr. Rumman took over as chief executive of Heritage Development Partners LLC in October 2005, as part of deal in which billionaire British businessman Nadhmi Auchi acquired an interest in the 62-acre site, located at Roosevelt Road and Clark Street. As a part of that transaction, which valued the site at $131.5 million, Mr. Auchi bought out investors in the project and developer Daniel Mahru, Mr. Rezko's former partner in Chicago-based Rezmar Corp.
Mr. Rezko retains an unspecified ownership stake in the project.
Heritage, which was co-owned by Mr. Rumman and Mr. Rezko, managed the project for a London affiliate of General Mediterranean Holding S.A., a Luxembourg-based conglomerate owned by Mr. Auchi.
But in a series of transactions completed early last month, control over the site was transferred from Heritage to another company, Illinois Developer LLC, which in turn is apparently controlled by London-based Moni Equities Inc. Moni's president is Mohammed Al-Miqdadi, an executive with Mr. Auchi's General Mediterranean. Mr. Al-Miqdadi did not return a message requesting comment.
A London attorney for Mr. Auchi declines to answer written questions about the transaction.
One of Mr. Rezko's criminal defense attorneys, William P. Ziegelmueller, of Chicago-based Stetler & Duffy Ltd., also declines to comment.
